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HomeMy WebLinkAboutFinance & Admin - 1992-06-15FAC\1992-06-15 FINANCE AND ADMINISTRATION COMMITTEE MINUTES JUNE 15, 1992 The Finance and Administration Committee met this date, commencing at 11:10 a.m., under the Chairmanship of Alderman C. Zehr with the following members present: Mayor D.V. Cardillo, Aldermen T. Galloway, G. Lorentz, B. Stortz, M. Wagner, C. Weylie and J. Ziegler. Others present: Alderman G. Leadston, Alderman M. Yantzi, Messrs. T. McKay, J. Gazzola, R. Freeborn, F.S. Graham, L. Ryan, J. Wallace, R.W. Pritchard, T. McCabe, J. Panunto, G. Sosnoski and Ms. L. MacDonald. Mr. McKay introduced Mr. Bruwer Blignaut and Mr. Ernie Jacobs from the City of Windhoek, Namibia, who are visiting Kitchener under the Africa 2000 Exchange Program sponsored by the Federation of Canadian Municipalities. WATER BILLING DISPUTE - 382 STIRLING AVENUE S. The Committee was in receipt of a report from Mr. J. Gazzola dated May 14, 1992 relative to the billing and the concerns raised by the property owner. This item was referred to the Committee by Council at its meeting of May 19, 1992. Mr. Brian Strickland, the owner of 382 Stirling Avenue S., expressed indignation over what in his opinion were inaccuracies contained in the staff reports. Mr. Strickland stated that at no time had he characterized staff actions as incompetent, nor had he indicated he would not pay the bill or discuss payment arrangements. He referred to the lengthy delay between the time the meter is read and the date on which the property owner is notified. He also pointed out that the bill does not refer to the billing period and that the new computerized meters cannot be read without special equipment, all of which makes it difficult to monitor consumption for irregularities. Mr. Strickland advised that he would like the accuracy of the billed amount verified, the present waterflow checked and notification provided as to whether the problem has been corrected and the amount of the bill reduced by one third to compensate for the delay in notifying the owner of abnormal water use. Alderman Ziegler suggested that a policy should be developed whereby any sudden, large, increases in water consumption result in an acceleration of the billing process and an earlier notice to customers. He also referred to a report he had previously requested concerning a self- reading meter system. Mr. Gazzola pointed out that the billing at issue relates to a multiple unit dwelling and that with this type of property it is difficult to identify abnormal consumption. He noted that staff do not know whether all units are fully rented, nor are they aware of the consumption patterns of the occupants, which traditionally vary with age. It was also pointed out that consumption history cannot be presently checked at the time data is taken from the meter. Mayor Cardillo noted that the City has already waived the $102.41 late charge relative to this billing. Alderman Zehr clarified that at present only the $921.70 bill for the period December 10, 1991 to March 12, 1992 is being considered. Alderman G. Leadston entered the meeting at this time. Mr. Gazzola suggested that in light of a dramatic increase which had been registered on a previous billing, the owner should have contacted the City when he was first aware of the problem. Alderman Zehr questioned whether the meter has been checked for accuracy and whether the waterflow is still considered abnormal. Mr. Gazzola replied in the affirmative to the former and indicated that he could not comment at present concerning current water consumption. Alderman Zehr asked that present consumption be checked and Mr. Gazzola agreed to monitor the situation on a weekly basis until the problem is resolved. FINANCE AND ADMINISTRATION COMMITTEE MINUTES - 48 - JUNE 15, 1992 WATER BILLING DISPUTE - 382 STIRLING AVENUE S. (cont.) On a motion by Alderman J. Ziegler- It was resolved: "That a $300.00 credit be issued, without prejudice or precedent, to Mr. Brian Strickland and be applied to the water bill for 382 Stirling Avenue S. to cover consumption for the period December 10, 1991 to March 12, 1992." Alderman Zehr requested a report concerning the number of invoices reflecting an increase in consumption greater than 50%, and also addressing improvements to the current procedure of notifying property owners regarding abnormal consumption. 2. DELEGATION - MARKET VALUE REASSESSMENT Mr. R. Rockel, 21 Colebrook Court, appeared concerning the phasing-in of tax increases and decreases due to the recent market value reassessment. Mr. Gazzola advised that numerous calls have been received concerning the phasing-in of tax decreases and he put the Committee on notice that these individuals have been given the option of presenting their comments to the Finance and Administration Committee. Alderman Ziegler read from the letter circulated by the Finance Department with the notice of tax adjustment and expressed concern that it does not clearly indicate the immediate savings to a property owner irrespective of the impact of the Phase-in Program. Mr. Rockel explained that the last reassessment on his property was completed after he had purchased the house. At that time, he felt the market value was too high and formally objected but a reduction was not granted. Mr. Rockel pointed out that following the most recent reassessment a reduction of approximately $600.00 was granted, which is subject to the Council approved Phase-in Program. He stated that in his opinion it is wrong for Council to subsidize reassessment increases through the phasing-in of decreases especially since the market value system has a clear route of appeal. He also suggested that the Phase-in Program was implemented without consulting those individuals who would normally have received an immediate decrease. Mr. Gazzola advised the Committee that a great deal of extra work has been required of Finance staff to complete the letters of notification and he publicly thanked those involved for their efforts. 3. FEE FOR RELEASE OF DEVELOPMENT AGREEMENTS The Committee was in receipt of a joint report and recommendations from Mr. T. McCabe and Mr. J. Wallace dated January 7, 1992 concerning a six month evaluation of the Release Fee Program. Mr. McCabe referred to the report noting that it contains recommendations concerning administrative procedures which the Department wishes to put in place. He advised that administrative problems had developed in the first six months of the year and acknowledged that the effect of the fee on applications by lawyers was underestimated, with a subsequent reduction in anticipated revenue. Mr. Wallace reviewed and explained each of the initiatives proposed in Item #2 of the report. Moved by Mayor D.V. Cardillo - "That Council rescind its February 11, 1991 resolution so as to eliminate the provision of a single free follow-up request for the release of development agreements and to amend its policy respecting grading releases so that exemptions apply only to those situations in which grading will never be released, and further, 3. FEE FOR RELEASE OF DEVELOPMENT AGREEMENTS (cont.) FINANCE AND ADMINISTRATION COMMITTEE MINUTES - 49 - JUNE 15, 1992 That Council endorse the policies set out in Report #PD 135/91 with regard to fee administration as submitted by Mr. T. McCabe and Mr. J. Wallace and dated January 7, 1992." Alderman Ziegler expressed the belief that realtors and developers should make consumers aware of the charges involved. It was generally agreed that staff would notify the Waterloo Law Association, the K-W Real Estate Board and Local Home Builders Associations concerning the fee structure. The motion by Mayor D.V. Cardillo to adopt the changes proposed in the staff report was voted on and CARRIED. 4. INVOICING FEE - FENCING PAYMENT POLICY The Committee was in receipt of a memorandum from Alderman J. Ziegler dated May 26, 1992 and report from Mr. J. Nelson dated May 19, 1992 concerning the policy and invoicing fee as it applies to a specific property. Also circulated under separate cover was a report from Mr. J. Gazzola dated June 12, 1992 responding to the suggestion that the 20% invoicing fee should be waived in this instance. Alderman Ziegler pointed out that with the additional 20% fee the property owner actually pays 60% of the cost rather than the 50/50 split envisioned when the policy was endorsed. Mr. Gazzola replied that the fee should be applied if Council feels that invoicing is a legitimate cost. He expressed the opinion that it is since this type of administrative overhead does not relate to a general service provided to all taxpayers, and suggested that the fee should be applied in this instance. Alderman Ziegler agreed with Mr. Gazzola to the extent that there is an actual cost to the City, but noted that the fence is being installed due to a negative impact on an individual's privacy as a result of a public access route. He suggested that this purpose should override any fee collection principle. On a motion by Alderman J. Ziegler- It was resolved: "That Council adhere to its present policy of sharing, on a 50/50 basis, the cost of erecting fences on properties adjacent to City-owned lands, with any costs relative to administrative overhead being absorbed by the municipality in the case of installation requests from homeowners." 5. EXTENSION OF INTERIM CONTROL BY-LAW 91-215 - LICENSING ISSUES The Committee was in receipt of a memorandum from Ms. G. Redgwell dated June 9, 1992 concerning a June 4, 1992 resolution of the Kitchener Downtown Action Committee. Alderman Stortz introduced the motion and explained that staff have considered a licensing program for individual operators similar to that which is in place for massage parlours. Mr. Pritchard expressed concern that the City may not have the statutory authority to licence and requested clarification of the phrase "well managed establishment" contained in the motion. Mr. Wallace advised that special legislation allows the City to regulate and govern operators of amusement arcades only and not the owners. In response to a question from Alderman Stortz, he added that the present by-law could be amended in this regard to allow the police to check for criminal records. Mr. Wallace stated that it is difficult to define a "well managed establishment" and for the purposes of enforcement it is easier to define one which is ill managed and suggested that the City move in this direction. 5. EXTENSION OF INTERIM CONTROL BY-LAW 91-215 - LICENSING ISSUES (cont.) FINANCE AND ADMINISTRATION COMMITTEE MINUTES - 50 - JUNE 15, 1992 On a motion by Alderman B. Stortz - It was resolved: "That the Legal Department staff be instructed to prepare a draft by-law to license individual operators of amusement arcades in the City of Kitchener, and further, That the above recommendation be considered at the special Council meeting to deal with the extension of Interim Control By-law 91-215 scheduled for June 15, 1992." 6. PET SHOP AND DOG KENNEL LICENSING BY-LAW Two draft amending by-laws were circulated to members of Council under separate cover and were attached to a memorandum from Ms. L. MacDonald dated June 12, 1992. Ms. MacDonald advised that there is no provision under the Municipal Act to licence kennels outside of those designated in the Animal Pedigree Act, and the draft by-laws before the Committee this date have been prepared based on this assumption. She noted that an additional clause is proposed relative to pets stores. Alderman Zehr noted that the draft by-law does not define "kennel" and asked where a definition could be obtained. Alderman Ziegler suggested that the definition would relate to kennels which are eligible for registration or are registered, and offered the opinion that any facility having more than six dogs should meet specific standards. Ms. MacDonald asked for an opportunity to meet with the Humane Society before the by-law is considered by Council. Alderman Ziegler added that an additional, parallel, by-law relative to the boarding and breeding of animals should be considered and the present draft by-laws sent to a public meeting subject to the comments of the Humane Society. It was generally agreed that staff, subject to or in conjunction with the comments of the Humane Society, would draft three by-laws, the first two amending Chapters 530 (Dogs) and 575 (Pet Shops) of the Municipal Code with the third to address the boarding and breeding of animals and dogs. It was also agreed that if the latter by-law cannot be applied to dogs, a request be lodged with the Province for special legislation to license the boarding and breeding of animals and dogs. Finally, it was agreed that the first two by-laws would be sent to a public meeting to be held in July or August and at that time the public informed of the possibility of an additional by-law relative to boarding and breeding. 7. COUNCIL PARTICIPATION - OMERS PENSION PLAN The Committee was in receipt of an information report from Mr. J. Panunto dated June 8, 1992 and OMERS handbooks were circulated to Members of Council under separate cover. Alderman Zehr indicated that a resolution of Council is required in order to participate and participation is obligatory for all Members of Council. In response to a question from Alderman Ziegler, Mr. Panunto indicated that the buyback provisions of OMERS may be an option in this case. He referred the Committee to the schedule in his report outlining the required contributions and reiterated an earlier comment that once the resolution is passed 100% participation is required. Mr. McKay clarified that a majority vote rather than an unanimous vote is required of Council. Alderman Galloway inquired as to the cost to the City of Council participation and Mr. Panunto replied that the City would match each individual contribution. Alderman Galloway indicated it was his understanding this would become part of the enumeration package of Council. 7. COUNCIL PARTICIPATION - OMERS PENSION PLAN (cont.) FINANCE AND ADMINISTRATION COMMITTEE MINUTES -51 - JUNE 15, 1992 On a motion by Alderman C. Weylie - It was resolved: "That Kitchener City Council participate in the Ontario Municipal Employees Retirement System (OMERS)." 8. HOURS OF OPERATION - GASOLINE SERVICE STATIONS At the request of Alderman Zehr, consideration of this item was deferred and referred to the August 10, 1992 meeting of the Finance and Administration Committee. 9. NEW BUSINESS Alderman Weylie inquired as to why the City charges 15% on unpaid taxes when the current bank rate is lower. Alderman Ziegler also asked for a report outlining why business taxes are paid in two rather than three instalments, which is the case with residential properties. He also asked for a comparison of tax arrears during the current recession relative to the previous recession. Alderman Zehr asked that these items be referred to the August 10 meeting. 10. 1993 PRO FORMA BUDGET Mr. Gazzola gave a presentation relative to the 1993 Budget and asked that Council establish guidelines for staff to be used in preparing their submissions. He reviewed the various factors affecting the 1993 mill rate and noted that it is assumed the assessment base will not grow at all this year, and if there is growth it will be offset by factors relating to the recession. He reminded the Committee that the 1992 target for the Pro Forma Budget was a 7.5% increase compared to the actual increase of approximately 2.5% and reviewed the elements which allowed this reduction. Mr. Gazzola reviewed the Consumer Price Index and advised that at present the Pro Forma Budget is calculated on the basis of a 2.5% inflation factor which is based on industry estimates. He then reviewed the expenditure, revenue and annualization factors having an impact on the mill rate, noting that the latter already account for an approximately 2% increase in 1993. Mr. Gazzola noted that he had proposed to Management Committee that in future when any new item is added a full year of cost be included in the budget rather than partial costs as has been the case in the past. He advised that this would have a benefit in subsequent budgets and asked the Committee to consider this option. Mr. Gazzola pointed out that at present the Pro Forma Budget is in a balanced position and reflects a 5.6% mill rate increase. He noted that a reduction of approximately $1,700,000.00 is required to meet a target of 2.5%. Alderman Stortz suggested that an inflation factor of 1.5% be used for budget purposes and Alderman Ziegler suggested a 0% increase for new employee contracts. Mr. Gazzola advised that at present both Fire and Transit have not settled two year contracts and Mr. McKay added that several contracts have already been settled at a rate of 2% in 1993. He noted that Fire has indicated 2% is unacceptable and it would be unfair to offer Transit less than that amount. He encouraged the Committee to seriously question the inflation factors in the Pro Forma Budget relative to wages in these areas, as they are unrealistic and these targets cannot be met. A motion by Alderman B. Stortz to reduce the inflation factors for wages, Boards, capital and other expenses by 0.5% was voted on and LOST. The following guidelines for the purpose of budget preparation were endorsed: Expenditures Inflation Wages - Fire Transit2.0% 2.5% 10. 1993 PRO FORMA BUDGET (cont.) Inflation - Other expenses 1.0% FINANCE AND ADMINISTRATION COMMITTEE MINUTES - 52 - JUNE 15, 1992 Inflation - Boards Inflation - Capital expenses 1.5% 0.0% Revenues Assessment Growth 0.0% Grants2.0% User Fees 2.5% Transit Fees 2.5% Transfer from enterprises 5.0% Sundry Income 2.5% Levy Increase 2.0% In addition, it was agreed to eliminate the $300,000.00 amount allocated to a Water Dividend. It was noted that the changes proposed would reduce the levy increase to 4%. On a motion by Alderman B. Stortz - It was resolved: "That an increase of 2% be used by staff as a guideline in preparing 1993 budget submissions." Mr. Gazzola circulated a proposed budget schedule dated June 9, 1992 for consideration by the Committee. 11. NEXT MEETING The next regularly scheduled meeting of the Finance and Administration Committee will be held on Monday, July 6, 1992. 12. ADJOURNMENT On motion, the meeting adjourned at 1:30 p.m. G. Sosnoski Assistant City Clerk