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HomeMy WebLinkAboutFinance & Corp - 2004-03-29 SFINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 29~ 2004 CITY OF KITCHENER The Finance and Corporate Services Committee met in special session this date, commencing at 9:10 a.m. Present: Chair Councillor B. Vrbanovic Mayor C. Zehr Councillors C. Weylie, J. Smola, J. Gazzola, M. Galloway and G. Lorentz Others: J. Fielding, Chief Administrative Officer P. Houston, General Manager of Financial Services/City Treasurer C. Ladd, General Manager of Strategic Services G. Sosnoski, General Manager of Corporate Services/City Clerk G. Stewart, General Manager of Development & Technical Services F. Pizzuto, General Manager of Community Services M. Grummett, Director of Information Services & Technology R. Browning, Fire Chief K. Baulk, Director of Enterprises D. Quinn, Director of Utilities K. Currier, Director of Operations H. Gross, Director of Project Administration J. McBride, Director of Traffic & Parking D. Mansell, Deputy Director of Engineering Services L. Lynch, Manager of Engineering Rehabilitation D. Gilchrist, Committee Administrator FINAL REVIEW OF 2004 OPERATING AND CAPITAL BUDGETS AND 10-YEAR CAPITAL FORECAST 2004-2013 Ms. P. Houston provided the following overview of the budget: the total weighted assessment growth for 2003 was 2.33%, and for 2004 is calculated at 2.63%; the difference between the tax rate increase and the City's CPI is 6.52% for 2003, and the gap remains constant, the cost of living has gone up 2.2% for households, whereas the City's increase in cost of living is 3.4%. Ms. Houston confirmed that the 3.4% figure is weighted on the City's overall expenditure base. In discussing the cost of taxes and services for the average household, being a property having a value of $163,000, it was noted that overall household costs where less for residents in the City of Kitchener than in the Cities of Waterloo or Cambridge, when considering the lower cost of utilities. Further, rates charged by Kitchener-Wilmot Hydro Inc. are about the lowest rates in the province. Mayor Zehr noted the cost for Kitchener tax payers for the Transit System, stating the average household in Kitchener pays approximately $65.00 more than in Waterloo or Cambridge; however, Kitchener has better transit service than the other two municipalities. Further, it is anticipated that over the next five years the differences in costs for transit between municipalities will equalize. Ms. Houston continued her overview of the budget by advising that the value of a 1% increase in the tax levy equals $651,000 which translates into a tax increase of $7.59 for the average household. She advised that the increase in the levy for the 2004 Budget, as approved thus far, is 3.9%. When questioned concerning the City's GST rebate, Ms. Houston noted approval was given by Council to direct $600,000. of the rebate to the Capital Budget. CENTRE IN THE SQUARE AND KITCHENER PUBLIC LIBRARY The Committee considered the proposed 2004 Operating Budget for the Centre in the Square. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 29, 2004 - 48 - CITY OF KITCHENER FINAL REVIEW OF 2004 OPERATING AND CAPITAL BUDGETS AND 10-YEAR CAPITAL FORECAST 2004-2013 (CONT'D) On motion by Councillor M. Galloway - it was resolved: "That the 2004 Operating Budget for the Centre in the Square be approved at 2% over the 2003 Budget." The Committee considered the 2004 Operating Budget for the Kitchener Public Library as recommended by the Administration. This budget would increase by 5.1%, which includes the additional cost of operating the new Country Hills Library and a 3% cost of living allowance and market adjustment. On motion by Councillor M. Galloway - it was resolved: "That the 2004 Operating Budget for the Kitchener Public Library be approved at 5.1% of the 2003 Budget." Ms. Houston next reviewed the changes to the 2004 Operating Budget previously recommended by this Committee. COMMUNITECH Mayor Zehr requested the Committee reconsider funding for Communitech, noting funding in 2003 was $30,000. He requested they be awarded the same funding in 2004, given this organization's programs, services, and the number of Kitchener businesses belonging to the organization. On motion by Mayor C. Zehr - it was resolved: "That 2004 funding for Communitech be approved at $30,000, which includes the cost of the 2004 membership for the City of Kitchener in this organization." KITCHENER MEMORIAL AUDITORIUM - CAPITAL RESERVE FUND The Committee then considered the Budget Issue Paper with respect to the Capital Reserve Fund (CRF) for the Kitchener Memorial Auditorium. Staff recommend any revenues in this fund, in excess of the Capital Budget for the Auditorium, be transferred to the Auditorium Shows and Events Operating Account each year, to a maximum of 25% of the total CRF revenue. Mr. Baulk explained the purpose is to allow staff to meet operating targets, and would only be used for that purpose. Councillor Galloway noted this flexibility allows the Auditorium to compete with other facilities in the area. On motion by Councillor G. Lorentz - it was resolved: "That any revenues in the Kitchener Memorial Auditorium Complex Capital Reserve Fund (CRF) in excess of the annual Capital Budget for the Auditorium, be transferred to the Auditorium shows and events operating account annually, to a maximum of a 25% of the total annual CRF revenues." INTERNAL AUDIT FUNCTION The Committee next considered the Budget Issue Paper respecting the creation of an internal audit function, without additional cost. Mr. Fielding noted the position will pay for itself, and is a good investment for the City. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 29~ 2004 - 49 - CITY OF KITCHENER FINAL REVIEW OF 2004 OPERATING AND CAPITAL BUDGETS AND 10-YEAR CAPITAL FORECAST 2004-2013 (CONT'D) On motion by Mayor C. Zehr - it was resolved: "That $80,000 be reallocated within the existing Operating Budget to accommodate the creation of an Internal Audit Position." BUSINESS ENTERPRISE CENTRE Mayor Zehr noted the presentation made by representatives of the Business Enterprise Centre on March 22, 2004, noting the work they have done to obtain external funding. He suggested the City provide some additional funding this year to allow time for them to review their operations. He recommended additional funding in 2004 of $25,000. Councillors Gazzola and Weylie recommended the Business Enterprise Centre consider charging user fees. On motion by Mayor C. Zehr - it was resolved: "That the Business Enterprise Centre be approved $25,000. of additional funding in 2004; and further, That the Business Enterprise Centre consider charging user fees." K-W TOURISM"YOUR KITCHENER"STORE Next the Committee considered the 2004 Operating Budget for K-W Tourism - Your Kitchener Store. Ms. Pitfield noted that a report had been submitted to this Committee in December 2003, outlining the 2004 proposed budget, including moving "Your Kitchener Store" to the former Public Utilities Commission Building. Ms. Pitfield noted the City will now have to pay market rent for the store. She noted the 2004 Operating Budget is the same as for 2003 and explained the changes being made to achieve 0% over the 2003 Operating Budget. Mr. Fielding explained the store needs to continue to evolve, and he believes it is starting to pay dividends. On motion by Mayor C. Zehr - it was resolved: "That the 2004 Operating Budget for K-W Tourism Your Kitchener Store, as recommended by the Administration, be approved." NEW KITCHENER MARKET Ms. Houston advised the Committee of the following additional operating expenses with respect to the New Kitchener Market: $21,000. for utilities, and $95,000. revenue short fall. She explained the revenue short fall is due to the fact that the Market is opening later than anticipated. Ms. Houston explained that the additional dollars could be added to the Budget, or this could be considered as a transition year and the Market may not meet budget. Ms. Pizzuto explained that the full $21,000 may not be required for utilities for the Market, as it is required to pay for air conditioning which will not be available until September. It was suggested the figure be reduced to $8,000. With respect to the revenue short fall, Mr. Pizzuto advised that the permanent shops will open later than anticipated; however, staff will attempt to achieve a 100% occupancy rate. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 29~ 2004 - 50 - CITY OF KITCHENER FINAL REVIEW OF 2004 OPERATING AND CAPITAL BUDGETS AND 10-YEAR CAPITAL FORECAST 2004-2013 (CONT'D) On motion by Mayor C. Zehr - it was resolved: "That an additional $8,000 be included in the Operating Budget for the New Kitchener Market for the increased -cost of Market utilities; and further, That the anticipated Market revenue short fall of $95,000. not be included in the 2004 Operating Budget." OPERATIONS DIVISION The Committee then considered a memorandum from Mr. K.Currier, dated March 19, 2003, providing the details of the additional $650,000 required for the Operations Divisions 2004 Operating Budget, as approved in principle by this Committee on March 8, 2004. Mr. Currier explained there are 24 full-time equivalents in the Operations Division whose salaries are not included in the Operations Division Budget, as these staff do work for other departments. Mr. Fielding explained that in past years, the salaries for these employees were budgeted against work done for other departments. If extra staff were required to plough snow, then they could not do work for the other departments; consequently, their salaries were paid by the Operations Division whose budget ended up in a deficit position. The current proposal will eliminate the over expenditures in the Operations Division Budget. RESERVE FUNDS The Committee reviewed the budgets for the City's Reserve Funds as presented by the Administration. Councillor J. Gazzola questioned why the Centre in the Square shows no contributions with respect to OMERS savings in 2003, and why Salary Continuance is showing zero in the years following 2002. Mr. B. MacDonald noted the contribution from OMERS savings was made but is missing from the chart. He explained a decision was made to pay Salary Continuance from gapping vacant positions rather than from the Sick Leave Reserve Fund. Ms. Houston advised fringe benefit amounts are reviewed annually, any surplus being directed to the Sick Leave Reserve Fund. It was noted the balance in the Sick Leave Reserve Fund is less than 25% of liability, as is the City's policy for this Fund. Ms. Houston explained the current practice is a more conservative approach but it will continue to be reviewed each year. The question was raised as to whether it is necessary to have 25% of the City's liability in this Fund. On motion by Mayor C. Zehr - it was resolved: "That the Sick Leave Reserve Fund be monitored throughout 2004, and staff report no later than 2005 Budget deliberations as to the advisability of reducing the percentage of liability required to be in the Fund." Ms. Houston advised that staff will submit a report in this regard by September 2004. The Committee considered the 2004 Budget Issue Paper with respect to closing the Flood Damage Reserve Fund. Ms. Houston advised the Fund holds a small amount and has not been accessed in a long time. Staff recommend this Fund be closed to the Tax Stabilization Reserve Fund. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 29, 2004 - 51 - CITY OF KITCHENER FINAL REVIEW OF 2004 OPERATING AND CAPITAL BUDGETS AND 10-YEAR CAPITAL FORECAST 2004-2013 (CONT'D) On motion by Councillor J. Smola - it was resolved: "That the Flood Damage Reserve Fund, with a balance of $10,600 as of December 31, 2003, be closed to the Tax Stabilization Reserve Fund." With respect to the Asset Management Reserve Fund, it was noted the closing balance for 2003 was not carried forward as the opening balance in 2004. The 2004 Budget should show a closing balance of $393,000, and in 2005 a balance of $732,000. The information provided by staff included the purpose of the Asset Management Reserve Fund. Mayor Zehr noted this Fund will be helpful when dealing with large projects such as the future central maintenance facility. On motion by Mayor C. Zehr - it was resolved: "That the purpose of the Assessment Management Reserve Fund be: to fund strategic land purchases and costs to develop asset management strategy." Ms. Houston advised that to this point in the process the tax levy increase required is 3.99%. The Committee then reviewed the Budget figures and projections for the Tax Stabilization Reserve Fund. Mayor Zehr noted there is an assumption of a surplus each year that will be added to the next year's Budget. Now that the Budget is closer to reflecting actual expenditures, it is safe to expect a surplus, which he suggested is sustainable for a minimum of 5 years. He proposed adding an additional $200,000 from the 2003 Operating Surplus to the 2004 Budget, as well as to the Budgets for 2005-2008, in order to reduce the levy each of those years. With respect to the Interest Revenue, Mayor Zehr recommended increasing interest income in the 2004 by $100,000. He acknowledged it is speculated that interest rates will continue to decline, but only marginally. Mayor Zehr then recommended increasing the Budget for revenue from the Hydro debt to $300,000. Lastly, Mayor Zehr noted that savings through gapping have been anticipated at $1,665,000 in 2004. He recommended the savings through gapping be increased by $50,000. In total the savings/increased revenues to be realized through Mayor Zehr's recommendations will lower the increase in the 2004 levy to 2.99%. Councillor Gazzola spoke in support of the Mayor's suggestions; however, he suggested the same amount be transferred from the Tax Stabilization Reserve Fund as in the last 2 years. He noted the revenues generated by the gas utility and stated the City can afford to reduce the 2004 tax levy increase to 2.2%. Councillor Galloway noted many municipalities have depleted their Reserve Funds, and there may be new legislation to prevent using utility profits to bolster a municipality's Operating Budget. He suggested a moderate approach, on a consistent basis, over the next 10-15 years or more. Mayor Zehr commented that the City has become reliant on the Tax Stabilization Reserve Fund, rather than dealing with the issues, and it is important to recognize how this Fund is being used. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 29~ 2004 - 52 - CITY OF KITCHENER FINAL REVIEW OF 2004 OPERATING AND CAPITAL BUDGETS AND 10-YEAR CAPITAL FORECAST 2004-2013 (CONT'D) Councillor Lorentz noted the City must be cautious about transfers to the Operating Budget from Hydro and Gas Utilities, as the ability to make these transfers may change through legislation. Councillor Vrbanovic noted this has been a challenging Budget year; however, this municipality is in a very fortunate position because of previous decisions, such as owning the Gas Utility. He stated staff have been very honest, and it would be very short sighted to deplete the Tax Stabilization Reserve Fund. On motion by Mayor C. Zehr - it was resolved: "That $200,000 be allocated from the 2003 Operating Surplus to the 2004 Operating Budget; and, That the anticipated income from the Hydro debt to the Tax Stabilization Reserve Fund be budgeted at $300,000; and, That the 2004 Budget for Interest Income be increased by $100,000; and further, That gapping in 2004 be increased by $50,000." Carried Unanimously. Councillor J. Gazzola put forward a motion to transfer $5,254,000 from the Tax Stabilization Reserve Fund to the 2004 Operating Budget which was voted and lost on a recorded vote as follows: In Favour: Councillor J. Gazzola, Opposed: Mayor C. Zehr and Councillors B. Vrbanovic, G. Lorentz, J. Smola, M. Galloway and C. Weylie. The Committee next reviewed the outstanding items from 2004 Capital Budget and 10-Year Capital Forecast 2004-2013. It was noted that $576,000 of Capital Projects will be funded through the GST Rebate in 2004. Ms. Houston advised that in future years the GST Rebate will help fund the infrastructure program, and these funds will be built into future Capital Budgets. Councillor Vrbanovic noted the GST Rebate came about as a result of discussion with the senior levels of government about infrastructure funding programs. The City should be using the GST Rebate to help finance infrastructure deficits. The Committee then reviewed the outstanding Capital items as follows: THE KITCHENER-WATERLOO ART GALLERY The Committee was in receipt of a Budget Issue Paper concerning the request of the Kitchener-Waterloo Art Gallery for an additional $300,000 in funding, $100,000 a year for 3 years, to implement the initiatives outlined in their Strategic Rejuvenation and Implementation Plan. Staff are recommending funding of $162,000 at a rate of $54,000 per year for 3 years, the $162,000 representing one third of anticipated costs. The remainder of the money should be obtained from other funding partners and private donations. Councillor Weylie questioned the division of funding for the Art Gallery with the City of Waterloo, and Ms. Houston advised that the City of Kitchener strives to fund on a per capita basis. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 29, 2004 - 53 - CITY OF KITCHENER FINAL REVIEW OF 2004 OPERATING AND CAPITAL BUDGETS AND 10-YEAR CAPITAL FORECAST 2004-2013 (CONT'D) Staff from the Art Gallery were in attendance and advised that a great deal of the funding being sought is to pay consultant fees. Concerning funding from other sources, the Committee was advised that the Province is only a minor supporter. Further, this Gallery raises a greater percentage of its funding through private sources than any other Gallery in the country. The City of Waterloo has been approached for one third of the required funding, but they have not committed to any funding at this time. Councillor Weylie put forward a motion to approve additional funding for the Art Gallery of $75,000 per year for the next 3 years, on the understanding that the Art Gallery will apply for and obtain funding from the City of Waterloo of one third of the required amount, which was voted on and lost, On motion by Councillor M. Galloway - it was resolved: "That additional funding for the Kitchener-Waterloo Art Gallery be approved at $54,000 per year for 2004, 2005 and 2006; and further, That the Kitchener-Waterloo Art Gallery continue to pursue funding to implement the Strategic Plan, from their other funding partners." CAPITAL INVESTMENT FUND The Committee was in receipt of Strategic Services Department report SSD-04-010, dated March 12, 2004, with respect to a Capital Investment Fund for Employment Lands. Mayor Zehr noted this Committee and Council have debated the issue before, and public input has been received. Approval of this kind of investment involves a long-term view, and spending the money made available in this fund will require further approvals. Mayor Zehr suggested minimizing the effect on the levy over the first 3 years by averaging the percentage so that in each of the first 3 years the special levy for this purpose will be 1.85%. He advised that he is prepared to move the recommendation in the staff report. Councillor Gazzola stated the majority of people who attended the public meetings on this matter had vested interests. He advised that his biggest concern is establishing the investment fund. If the City has a big pot of money it will go ahead and do whatever it wants to do. He questioned why the City could not further review the Capital Forecast and remove some projects to accommodate the proposals in this staff report. Councillor Weylie spoke in support of the staff report, and in support of the recommendations of the City's Economic Development Advisory Committee, from its meeting of March 24, 2004. Councillor Lorentz spoke in support of staff recommendation in Strategic Services Department report SSD-04-010. He spoke favourably of the public process undertaken, and stated that each business plan presented must be properly scrutinized. Councillor Smola spoke in support of the proposed investment fund and the method of financing. He noted that when financing City Hall, infrastructure needs were set aside. This proposed investment fund will allow infrastructure needs to be looked after. Further, the investment funds will provide for employment beyond the initial construction jobs. Mayor Zehr noted a motion had been adopted, in principle, on March 8, 2004, by Council, in this regard, and notwithstanding the March 8th motion, he moved the recommendation in Strategic Services Department report SSD-04-010. Councillor Vrbanovic stated that the recommendation contains the vision for developing this community for the next 10 years. This threshold allows the City to be competitive and allows Kitchener citizens to enjoy a high quality of life. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 29, 2004 - 54 - CITY OF KITCHENER FINAL REVIEW OF 2004 OPERATING AND CAPITAL BUDGETS AND 10-YEAR CAPITAL FORECAST 2004-2013 (CONT'D) A recorded vote was requested. On motion by Mayor C. Zehr - it was resolved: "That notwithstanding Council's resolution adopted March 8, 2004 to approve in principle Strategic Services Department Report SSD-04-008 regarding financial investment to support the Downtown, and to provide opportunity for growth of the City's manufacturing sector, Council approve the following: That Council support the community vision for a balanced economic development strategy which includes investment in employment lands to support our manufacturing sector and investment in the Downtown to support the development of a new education and knowledge creation cluster; and That City Council approve the creation of a $110M Investment Fund to support the Economic Development strategy with the funds to be allocated as follows: a) $17.9M for those projects in the downtown for which funding has already been committed which include: · Wilfrid Laurier University, School of Social Work $ 6.5M · Centre Block Land Purchase $ 9.7M · Downtown Community Centre $1.7M b) $6.0M for the following maintenance projects which were included in the downtown investment package due to their location in the downtown: · Victoria Park improvements $ 2.7M · Downtown Streetscape Improvements $ 3.3M; and, That the remaining funds of $86.1M be allocated on a project specific basis subject to detailed business plans which include opportunities for financial partnerships to ensure maximum leverage for investment dollars expended by the City. Projects subject to detailed plans will include both those in the downtown such as the University of Waterloo School of Pharmacy, new parking solutions, and residential intensification incentives as well as new industrial land development; and further, That all projects be prioritized based on available funding determined through the projection of annualized cash flow from the investment fund over a 10 year period." In Favour: Mayor C. Zehr and Councillors J. Smola, M. Galloway, G. Lorentz, C. Weylie and B. Vrbanovic. Opposed: Councillor J. Gazzola This meeting recessed at 1:30 p.m. and reconvened at 2:00 p.m. with the following members present: Mayor C. Zehr and Councillors B. Vrbanovic, G. Lorentz, C. Weylie, G. Smola, J. Gazzola and M. Galloway. DEBENTURING Ms. Houston reviewed those items requiring debenture financing totally $8.9M. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 29~ 2004 - 55 - CITY OF KITCHENER FINAL REVIEW OF 2004 OPERATING AND CAPITAL BUDGETS AND 10-YEAR CAPITAL FORECAST 2004-2013 (CONT'D) On motion by Councillor J. Gazzola - it was resolved: "That a total $8,900,000 of debenture financing be to exceed 15 years: · Road Resurfacing · Road Reconstruction · Streetscape Improvements · Sidewalks · Street lighting · Downtown Wellness Centre · The Market · Peter Hallman Ballyard approved as follows, for a term not $1,406,000 $2,575,OOO $ 300,000 $ 7O8,OOO $ 151,000 $1,700,000 $1,760,000 $ 300,000" BUILDING MAINTENANCE The Committee continued to review the outstanding Capital Budget items, and was in receipt of a Budget Issue Paper with respect to the conduct on comprehensive audits by Facilities Management, on the major facilities owned by the City of Kitchener. The Budget Paper recommends the retention of $6.4M distributed throughout the 10-year Capital Forecast, for this purpose. On motion by Councillor G. Lorentz - it was resolved: "That the $6.4M distributed throughout the 10-year Capital Forecast 2004-2013, for building maintenance audits, be retained, and staff rationalize these amounts in 2004/2005." BUDD PARK MAINTENANCE The Committee was in receipt of a revised Budget Issue Paper with respect to Budd Park building maintenance. Mr. Pizzuto confirmed that this building was built and paid for by Minor Soccer at no cost to the taxpayer. With the demise of Kitchener Minor Soccer, the City could have abandoned this facility; however, it was thought to be worth the investment in indoor soccer to retain this facility. Councillor Lorentz noted there will be a new Community Advisory Committee to deal with soccer. This new Committee will have to address the capital costs of the facility. The Committee will be able to generate an income, as tournaments are quite profitable. On motion by Councillor J. Gazzola - it was resolved: "That the 10-year Capital Forecast 2004-2013 for Budd Park Building Maintenance be approved as recommended in the 2004 Capital Budget Issue Paper submitted by staff." PETER HALLMAN BALLYARD BLEACHER UPGRADE The Committee was in receipt of a Budget Issue Paper with respect to installation of upgraded seating at Peter Hallman Ballyard. Such improved seating would give the City the ability to market Peter Hallman Ballyard as a leading venue for hosting major sporting events. On motion by Mayor C. Zehr - it was resolved: "That bleacher improvements at Peter Hallman Ballyard, at a cost of $300,000 be approved, with the upgrades to completed no later than 2005." FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 29~ 2004 - 56 - CITY OF KITCHENER FINAL REVIEW OF 2004 OPERATING AND CAPITAL BUDGETS AND 10-YEAR CAPITAL FORECAST 2004-2013 (CONT'D) PUMPING STATION MAINTENANCE The Committee was in receipt of a report titled "Assessment Reports - Waste Water Pumping Facilities - The City of Kitchener", prepared by Conestoga Rovers, dated November 2003. It was noted that $1.9M has been included in the 10-year Capital Forecast 2004-2013, for this purpose. DOWNTOWN INCENTIVES The Committee reviewed the 2004 Budget Issue Paper with respect to Downtown Incentives, and staff advised of the projects anticipated for 2004: Market Square, the Kaufman Building, and the residential component of the New Kitchener Market. On motion by Mayor C. Zehr - it was resolved: "That the City of Kitchener continue to fund the various Downtown Financial Incentives, given the positive benefits the program creates in helping stimulate construction and investment in the downtown." FIRE EQUIPMENT The Committee next considered a Budget Issue Paper with respect to a $5.4M adjustment to the 10-Year Capital Forecast 2004-2013 for the purchase of fire equipment. Mr. Browning advised there is $150,000 of equipment on each pumper. The Fire Department has been able to make some changes to the way it operates, and has worked hard to bring its budget in on target. Equipment is assessed to determine whether it is still usable before it is replaced, and some is sold to other communities who do not use it as intensely as this municipality. On motion Councillor M. Galloway - it was resolved: "That a $4.56M adjustment to the 10-year Capital Forecast 2004-2013 be approved for Fire Vehicle Capital Replacement." CENTRAL MAINTENCANCE FACILITY Staff advised that a comprehensive report on a new Central Maintenance Facility will be submitted in June. EMPLOYEE DEVELOPMENT Committee members questioned the costs for the Employee Development Initiatives proposed by staff, as well as the ability to quantify savings achieved through these initiatives. It was generally agreed that funds included in Budget for these development programs remain; however, the programs themselves are not approved. Staff are to provide more information on these programs, at which time a decision will be made as to whether or not they will go forward. TWIN PAD ARENA The Committee reconsidered a Budget Issue Paper with respect to the construction of a new Twin Pad Arena. Staff advised in the Issue Paper that Minor Hockey has expressed concern about the 2008 timeframe given the high ranking this arena received in the Capital Prioritization Process. The strategy as being developed would allow the twin pad arena to be built in 2006, and funded in 2006-2007. MARCH 29, 2004 FINANCE & CORPORATE SERVICES COMMITTEE MINUTES - 57 - CITY OF KITCHENER FINAL REVIEW OF 2004 OPERATING AND CAPITAL BUDGETS AND 10-YEAR CAPITAL FORECAST 2004-2013 (CONT'D) On motion by G. Lorentz - it was resolved: "That the Twin Pad Arena be advanced to 2006 in the 10-year Capital Forecast 2004- 2013, to be funded in 2006-2007." Carried Unanimously Staff advised they will soon be submitting a report concerning the Stanley Park Community Centre, the Downtown Community Centre, and a strategy to move forward the addition for the Mill-Courtland Community Centre to 2005 in the 10-year Capital Forecast 2004-2013. DEVELOPMENT CHARGES PROJECTIONS Ms. Houston provided revenue projections for the period 2003-2011 for development charges, noting the funds should be at a break-even position over the 10-year period. With respect to road resurfacing, Ms. Houston requested approval to debenture $1,344,000 for road resurfacing. On motion by Councillor J. Smola - it was resolved: "That $1,344,000 of debenture financing be approved for Road Resurfacing included in the Capital Forecast for the year 2004, for a term not to exceed 10 years." The Chair and Committee members thanked Financial Services staff and all the General Managers for the extensive work involved in preparing the 2004 Budget and 10-Year Capital Forecast, and for developing and preparing the Capital Investment Strategy. ADJOURNMENT On motion, the meeting adjourned at 3:12 p.m. Dianne Gilchrist Committee Administrator