Loading...
HomeMy WebLinkAboutFinance & Admin - 1992-05-11FAC\1992-05-11 FINANCE AND ADMINISTRATION COMMITTEE MINUTES MAY 11, 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: Aldermen B. Stortz, T. Galloway, G. Lorentz and C. Weylie. Others present: Alderman G. Leadston, Messrs. T. McKay, J. Gazzola, R.W. Pritchard, R. Freeborn, J. Webster, F.S. Graham, J. Wallace, L. Parkhouse, G. Meyer, B. Kuntz, W. Beck and G. Sosnoski. PHASING-IN OF MARKET VALUE ASSESSMENT Mr. Arnold Brown appeared on behalf of eight property owners on Doonbrook Place concerning Council's recent decision to implement a combination phase-in and deferral plan relative to the recent market value reassessment. He stated that the assessed value of properties on Doonbrook Place has decreased to a realistic value with residents receiving tax reductions of approximately 17%. Mr. Brown expressed the opinion that his taxes have been too high in the past, and in light of the phase-in program recently approved by Council, he and other ratepayers are being denied an immediate benefit from the decrease, and are being asked to subsidize other people's tax increases. He suggested that Council is setting an unfair precedent and should reconsider its motion to adopt a phase-in program and reopen discussion of the entire issue. Alderman Wagner questioned whether Mr. Brown has been paying taxes at too high a rate or whether the decrease referred to reflects a shift in tax allocation. He expressed the opinion that the majority of changes are a result of the latter. Mr. Brown responded that the Province of Ontario is responsible for the assessment process, not the City of Kitchener, and it is inappropriate for Council to manipulate the system. Alderman Galloway agreed with an earlier comment that in this particular instance ratepayers receiving decreases are subsidizing those whose taxes have increased. Mr. Gazzola commented that approximately 2,500 properties are affected by increases and 3,000 by decreases resulting in a subsidy of approximately $1,400,000.00 plus any impact on the general levy. Mr. Charles Becker, 41 Doonbrook Place, indicated that taxes for his principle residence have decreased while taxes for other rental properties he owns in the City are increasing. He noted that though pleased with the decrease he is not content to continue paying more than his share of taxes for the next three years in order to subsidize increases. Alderman Galloway advised that he has received a number of calls from people whose situation is similar to that of Mr. Brown, and expressed concern that Council may not hear from the majority of these individuals until the next tax instalment is due. Alderman Lorentz expressed the opinion that the phase-in program is inappropriate and will have negative repercussions for years to come. Alderman Wagner stated that the assessment system itself is flawed since it does not differentiate between properties which are over or under assessed and those increases or decreases reflecting a shift in tax allocation. Alderman Weylie asked what would happen if the by-law required to institute the phase-in program was not supported by a majority of Council members. Mr. Pritchard replied that the by- law, which will be before Council on May 19, 1992, should be given first reading and if appropriate debated in the Committee of the Whole. If it is not endorsed by Council and given a third reading, the phase-in/deferral program would not be implemented. Alderman Stortz argued that the dollar impact on those receiving phased-in decreases would be minimal under the proposed program and if no phase-in was allowed, a number of small businesses could be forced into bankruptcy. Alderman Zehr advised those present that the by-law at issue would be dealt with at the May 19, 1992 meeting of City Council. FINANCE AND ADMINISTRATION COMMITTEE MINUTES - 44 - 2. REALLOCATION OF CAPITAL FUNDS - TRANSPORTATION CENTRE MAY 11, 1992 The Committee was in receipt of a report from Mr. W. Beck dated May 6, 1992 requesting permission to reallocate funds to pay an invoice previously contested by the Department of Transportation. Mr. Webster explained that the amount in question relates to a site investigation undertaken by The Proctor and Redfern Group to identify any hazardous coal tar deposits. Though no contamination was found, the City received what was thought to be an unusually large bill. Inquiries were made by staff who are now recommending it be paid on the basis that the City will receive a Provincial subsidy. Mr. Webster noted that a separate bill relating to site landscaping is being refused. On a motion by Alderman B. Stortz - It was resolved: "That the sum of $25,512.55 be paid to The Proctor Redfern Group for work relating to the construction of the Transportation Centre and the shortfall of approximately $11,542.00, which represents that portion not recovered through a Ministry of Transportation subsidy claim, be funded using capital allocated for the purchase and installation of electronic destination signs (Account #935098)." 3. 1991 ANNUAL DEPARTMENTAL REPORT - GENERAL SERVICES AND CITY CLERKS Mr. Pritchard provided an overview of the report and the activities of the Department on a Division by Division basis. He also reviewed 1991 goals and objectives and referred to those set for 1992. It was noted that the 1991 Election had a per capita cost of $1.00 and a future report will be submitted concerning updating of the tabulation system in response to removal of the mainframe computer. Alderman Galloway inquired as to the status of a possible ward boundary realignment. Mr. Pritchard replied that staff must know by year end if Council wants to adjust the ward boundaries, and suggested this should wait until the issue of elections for Regional Council is dealt with. Mr. McKay suggested that a resolution be considered at the next Council meeting concerning a report on the direct election of Regional Councillors. On a motion by Alderman T. Galloway - It was resolved: "That Kitchener Council request the Regional Municipality of Waterloo to bring forward, as soon as possible, a report concerning direct elections to Regional Council in order that municipalities within the Region may in turn address any issues relative to ward boundaries." Alderman Lorentz asked that Council be provided with a copy of the criteria used in establishing ward boundaries and Mr. Pritchard agreed to circulate the document. Alderman G. Leadston entered the meeting at this time. Alderman Stortz suggested that leather coasters are inappropriate gifts for visiting dignitaries and an alternative should be investigated. Alderman Wagner suggested that the City's recognition of past Council Committee members should be upgraded and that the Chairman of the respective Committee should present any awards in this regard. He also noted that the forum in which the presentations are made should also be reassessed. Alderman Lorentz asked whether Council and Committee minutes and agendas would be electronically transmitted to members of Council by the time the City moves into its new offices. Mr. Pritchard replied that a Text Management System is presently being evaluated in this regard. In response to a question from Alderman Zehr, Mr. Gazzola advised that a report on the funding options for a phase-in/deferral program relative to market value reassessment will be submitted for the May 19, 1992 FINANCE AND ADMINISTRATION COMMITTEE MINUTES - 45 - MAY 11, 1992 3. 1991 ANNUAL DEPARTMENTAL REPORT - GENERAL SERVICES AND CITY CLERKS (cont.) Council meeting in conjunction with the by-law required to initiate the program. Alderman Zehr put the Committee on notice that he will be addressing Council at that time concerning the September due date for taxes and asked that the appropriate information be made available for discussion at that time. On motion, the regular meeting was adjourned at 12:14 p.m. and the Committee resolved itself into caucus to consider the balance of its agenda. NEXT MEETING The next regularly scheduled meeting of the Finance and Administration Committee will be held on Monday, May 25, 1992 commencing at 11:00 a.m. G. Sosnoski Assistant City Clerk