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HomeMy WebLinkAboutFinance & Admin - 1992-11-25FAC\1992-11-25 FINANCE AND ADMINISTRATION COMMITTEE MINUTES NOVEMBER 25, 1992 The Finance and Administration Committee met this date, commencing at 9:10 a.m., under the Chairmanship of Alderman C. Zehr with the following members present: Mayor D.V. Cardillo, Aldermen B. Stortz, T. Galloway, C. Weylie, M. Wagner, G. Leadston, J. Ziegler, G. Lorentz, M. Yantzi and J. Smola Others present: Messrs. T. McKay, J. Gazzola, L. Ryan, O. den Ouden, D. Suzuki, J. Webster, B. Gulliver, W. Beck, R. Miller, D. Snow, B. Stanley, R. Arnot, T. Clancy, E. Kovacs, S. Gyroffy, B. Liddle, J. Hancock, B. Kuntz, S. Klapman, T. McCabe, T.B. Stanley, L. Parkhouse, P. Summers, C. Ford, L. Gordon, G. Sosnoski and Ms. D. George. The purpose of the meeting was to review the 1993 Capital Budget and the Ten Year Capital Forecast (1993-2002). Alderman Zehr outlined the proposed meeting dates relative to the Committee's review of the 1993 Operating Budget. 1993 CAPITAL BUDGET AND TEN YEAR CAPITAL FORECAST The Committee was in receipt of a report from Mr. J. Gazzola dated November 20, 1992 outlining the current budget position following the Administrative Review. Mr. Gazzola provided an overview of the Capital Budget and Forecast pointing out that at present the 1993 budget is in a balanced position with total expenditures for the years 1993-2002 totalling $331,276,000.00. He indicated that this amount had been reduced from an expenditure forecast totalling $392,731,000.00. He noted that of this amount $214,420,000.00 will be funded from non- tax related sources such as lot levy funds, municipal enterprises and senior government grants. Mr. Gazzola advised that in accordance with Council's capital policy there is a 0% impact on the tax levy in 1993 with a 2.5% impact in each of the next nine years. He added that the first three to four years of the Forecast are in a balanced position, with room for expansion by the year 1997. He reviewed the tax related portion of the Capital Surplus and advised that following the 1990 transfer to the Capital Budget the remaining amount is approximately $200,000.00. Mayor D.V. Cardillo entered the meeting at this time. Mr. Gazzola reviewed an analysis of lot levy funding. Alderman Galloway questioned whether the lot levy could be used to fund the engineering study for the Strasburg Trunk or whether the affected landowners would have to front the cost. Alderman Zehr indicated that this issue will be clarified and addressed further. Mr. Gazzola advised of an additional $100,000.00 expenditure to move the four portable structures presently used by the Mill-Courtland Community, which has left the community centre provision in a deficit position. Mr. Gazzola reminded the Committee that the cost to maintain the City infrastructure was calculated in 1990 using an inflation figure of approximately 5%. Ten percent was removed in 1991/92 with further reductions planned for 1993/94. He indicated that based on Council's no increase direction in 1993 a new base has been established in that year with increases thereafter at the rate of 2.5%. He pointed out that some Departments have expressed concern over the future impact these measures may have on infrastructure maintenance. Mr. McKay stated that the City's number one priority is to maintain the present infrastructure, and any cutbacks with regard to new infrastructure have been made reluctantly. Alderman Stortz added that in his opinion the initial 5% inflation factor was overly generous and Mr. McKay clarified that the percentage includes not only inflation but program adjustments made to catch up on uncompleted maintenance. Mr. Gazzola reviewed significant changes in the 1993 Forecast as compared to the 1992 approved Forecast. He pointed out a two year extension to the time required to pay for the new City Hall and other items affecting various City Departments. 1. 1993 CAPITAL BUDGET AND TEN YEAR CAPITAL FORECAST (cont.) FINANCE AND ADMINISTRATION COMMITTEE MINUTES - 82 - NOVEMBER 25, 1992 The Capital Budgets and Forecast items were then presented on a Department by Department basis along with any major adjustments made as a result of the Administrative Review. The Committee considered the Budget for all Divisions of the Department of Transportation. Alderman Galloway questioned the purchase of additional buses given the reduced ridership and route reductions. Mr. Beck replied that all of the buses relate to expansion in Waterloo, with the possibility that one may be required in Kitchener. Alderman Galloway questioned moving the budget item relative to "smart cards" from 1993 to 1995, given the payback opportunity. Mr. Beck acknowledged that there is the possibility of a payback and referred to a successful demonstration project recently undertaken in Ajax. He added that the present automated fare units used by the City will accept debit cards. Alderman Wagner expressed an interest in seeing a report one year from now summarizing the status of the debit card initiative and advising on the implementation of smart cards. Mr. Beck replied that the Department will report if it obtains Provincial funding for demonstration units. Alderman Wagner questioned how the present funding will address the need for bus shelters and asked for a summary in this regard. Mr. Webster replied that at present the budget will add between 10 and 12 new units per year. Alderman Wagner asked for a figure outlining the total number of units required. Alderman Wagner expressed interest in viewing plans, on an ongoing basis, with regard to the landscaping of City owned parking lots. Alderman Smola asked that this item be brought before Public Works and Transportation Committee for further review. A brief discussion took place concerning the monitoring of the parking garages for engineering deficiencies. In response to a question from Alderman Leadston, Mr. Snow explained that the $153,000.00 amount is spread over a ten year period, with seven inspections occurring during that interval. Alderman Leadston referred to a previous recommendation that under car sprays be installed to remove corrosive salt from vehicles. Mr. Snow acknowledged that this measure would assist in reducing delamination, however, this problem has a variety of other causes including the initial design and construction methods. On a motion by Alderman M. Wagner- It was resolved: "That the 1993 Capital Budget for all Divisions of the Department of Transportation be approved." The Committee then reviewed the Budget for all Divisions of the Parks and Recreation Department. Alderman Lorentz referred to the undefined community arena in the Recreation and Programs Division forecast. Mr. McKay replied that this and similar generic items relate to the Development Charge By-law, and acknowledged that at no time has Council formally debated these items. Alderman Galloway referred to the pool, community centre and library proposed for the Country Hills area and questioned whether there is any value in combining these projects. Mr. McKay indicated that an attempt would be made to compress these items farther into the Capital Forecast. Alderman Lorentz took exception to the further delay proposed for the Forest Heights Pool addition. He noted that he routinely receives complaints about the facility, and a number of Forest Heights residents are now travelling to Stanley Park to use the new pool. He referred to major problems with the existing pool and expressed the opinion that if a facility is owned and operated by the City, it should be used to the 1993 CAPITAL BUDGET AND TEN YEAR CAPITAL FORECAST (cont.) optimum. Mr. Arnot agreed with the comments made by Alderman Lorentz regarding use of the pool and the current problems. He indicated that he would like to see the project constructed earlier, but also recognizes the funding constraints. Alderman Lorentz advised that he would like FINANCE AND ADMINISTRATION COMMITTEE MINUTES - 83 - NOVEMBER 25, 1992 to see this project moved up from its current 1996/97 position, and indicated that he is prepared to look at reductions in other areas of the budget. Alderman Zehr questioned where this project had been allocated in the previous Capital Budget, and Mr. McKay clarified that the project was originally scheduled for 1996/97, but was moved up at the request of Alderman Lorentz and is now being returned to its original position. Mr. Gazzola summarized the community centre initiatives and commitments. Alderman Zehr expressed concern over the annualized costs of the MilI-Courtland Community Centre. Mr. Arnot acknowledged that additional custodial and secretarial staff are required, with these amounts reflected in the Department's Operating Budget. Alderman Lorentz asked why Council would have to agree to move the present temporary structures before an alternate site has been selected. Mr. Arnot advised that a report will be submitted to the Community Services Committee in the new year, and noted that the portables do not have to be moved during construction. Mr. McKay indicated it was his understanding the portables were not to be moved to a new community centre location, and noted that the Department is looking at alternate uses. Alderman Leadston disagreed noting Council intented that the portables be used as interim accommodation for new centres. He asked that discussion take place with the Stanley Park Community Association regarding use of some of the portables adjacent to the Stanley Park Pool. Mr. Arnot advised that staff have considered moving some of these units to the Chandler Drive area, however, there are approximately five other areas in the City where they could be used. Alderman Zehr expressed the opinion that these structures could be utilized provided there are no additional operating expenses. Mr. Arnot stated that a report on the MilI-Courtland proposal, as well as the status of the portable units will be made on January 25, 1993. Alderman Yantzi advised that he has reviewed the most recent Kitchener Farmers Market report and met with the Market Operating Committee and vendors. Alderman Yantzi asked that $100,000.00 be added to the general provision for the Farmers Market to be used for near term improvements to the building pending a decision as the Market's future location. He also pointed out that upgrades to the present elevators in the building have been delayed until 1995. He indicated that a report would be discussed at the December 7, 1992 Community Services Committee meeting. Mr. McKay advised that the report outlines two options for a new Market location which are tied to the sale of the existing Market and parking garage to Cambridge Leaseholds, and noted that at present they are not interested in purchasing the facilities. He further noted that options would entail major expenditures in the order of approximately $5,000,000.00, and following discussions at the Market Operating Committee it was agreed that these would be examined with the possibility of implementation five years from now. On a motion by Alderman M. Yantzi - It was resolved: "That the Capital Budget for the Parks and Recreation Department be amended by adding $100,000.00 in 1993 for special upgrading and repairs to the Kitchener Farmers Market." A brief discussion took place concerning improvements to the sound system in the Kitchener Memorial Auditorium. Alderman Lorentz suggested that system upgrades be moved up to 1993 and an $80,000.00 loan obtained from the Auditorium Ticket Reserve Fund. Mr. McKay suggested that the project be left in its current 1994 allocation with the possibility of 1993 CAPITAL BUDGET AND TEN YEAR CAPITAL FORECAST (cont.) Reserve Fund financing being investigated by staff. Alderman Leadston added that since the Kitchener Rangers are the main recipients of any benefits from an improved system it may be worth discussing cost sharing with them. FINANCE AND ADMINISTRATION COMMITTEE MINUTES - 84 - NOVEMBER 25, 1992 Alderman Wagner asked whether improvements to the Victoria Park entrance at Gaukel Street could be re-prioritized to coincide with the Park anniversary. Mr. McKay advised that the entrance re-design depends on land acquisitions which will not likely take place by then. Alderman Yantzi indicated his preference that the entrance be completed in 1996. In response to a question from Alderman Galloway concerning McLennan Park, Mr. Clancy advised that the Park had been removed from the master plan and the budget has been re- instated at the request of the Environmental Committee. Alderman Galloway asked that staff report to the Community Services Committee at a future meeting relative to the legal issues involved and any other concerns relative to development work beginning in 1997. Mr. McKay reminded the Committee that the Park was originally removed for legal reasons and has now be allocated to the earliest possible year in the Forecast where the project can be accommodated financially. Alderman Zehr asked that either Mr. Clancy or Mr. Wallace advise as to when the report referred to by Alderman Galloway will be available for discussion. Alderman Wagner questioned why developers who are required to donate land for community trails are not required to develop them as they are considered transportation routes. He asked that this item be considered at a Planning and Economic Development Committee meeting in the near future. Alderman Zehr asked that Alderman Ziegler take the request under advisement. Alderman Leadston suggested that the City should take the initiative in approaching Neighbourhood Associations to determine whether they wish to contribute to or otherwise participate in playground development. Mr. Clancy responded that cost sharing provisions are in place with regard to the School Boards, but noted he is unaware of any such involvement by Neighbourhood Associations. A discussion took place concerning the sound system in the Kitchener Auditorium. Mr. McKay stated it was his understanding the Committee wished to see the project undertaken in 1993 provided that neither the budget nor the bottom line are affected. In the event there is an adverse affect, a report will be submitted for consideration by Council, and in the interim staff will examine the relevant options. Mr. Gazzola wished it noted that he does not support borrowing from the Ticket Reserve Fund for this or similar projects. On a motion by Alderman C. Weylie - It was resolved: "That subject to the addition of $100,000.00 in 1993 for the funding of special upgrading to the Kitchener Farmers Market, the 1993 Capital Budget for all Divisions of the Parks and Recreation Department be approved, as amended." The Committee adjourned at 12:15 p.m. for lunch and reconvened at 12:30 p.m. to consider the balance of its agenda. The Committee then considered the Capital Budget for the Public Works Department, including the Gas and Water Utilities. A discussion took place concerning the removal of silt from Victoria Lake and the impact on water levels as a result of closing the Uniroyal-Goodrich plant. Mr. McKay indicated that the water level impact is difficult to determine until such time as the plant is sold, however, the wells will continue to pump in the short term. He agreed to bring forward a report to a future meeting of the Community Services Committee. 1993 CAPITAL BUDGET AND TEN YEAR CAPITAL FORECAST (cont.) Alderman Zehr referred to the issue of sidewalks along King Street E. from Fairway to River Roads and advised that staff have looked at the possibility and indicated one continuous line of sidewalk is not practical at this time due to non-contiguous ownership. He inquired as to the amount FINANCE AND ADMINISTRATION COMMITTEE MINUTES - 85 - NOVEMBER 25, 1992 required for widening as an interim measure and Mr. Liddle indicated a figure of $10,000.00. Alderman J. Ziegler disclosed a conflict of interest and abstained from all voting and discussion concerning the installation of sidewalks along King Street E. from Fairway Road to River Road as he has a pecuniary interest in lands approximate to the areas discussed. Alderman Zehr indicated his preference for funding of the above project in 1993. Alderman Yantzi referred to repairs along Eby Street S. valued at $21,000.00 and Mr. Gazzola pointed out that these were the only street improvement items referred to the budget process. Mr. McKay advised that a general contingency account could be used and Alderman Zehr expressed confidence that staff would find the necessary funds. Alderman Galloway pointed out that approximately $487,000.00 has been allocated in 1995 relative to improvements in the Block Line Road area. He noted that Block Line is now ending at Westmount Road with no future plans for a Fischer Hallman Road connect. Mr. Gazzola pointed out that this is a lot levy project and could be removed from the Capital Forecast if appropriate. Mr. Liddle advised that Mr. Suzuki has asked for a deferral of the $256,000.00 amount allocated in 1993 for street lighting pending additional information from K-W Hydro. On a motion by Alderman M. Wagner- It was resolved: "That the 1993 Capital Budget for all Divisions of the Public Works Department including the Gas and Water Utilities be approved." The Committee considered the Capital Budget and Forecast as regards the Fire Department. Alderman Zehr noted that three new fire stations are proposed over the next ten years. Mr. McKay explained that this projection is based on normal growth and may have to be adjusted downward if it remains slow. Alderman Zehr expressed the opinion that three stations is rather ambitious given the downturn in the economy and the associated operating expenses. On a motion by Alderman G. Lorentz - It was resolved: "That the 1993 Capital Budget for all Divisions of the Fire Department be approved." The Committee considered the Capital Budget for The Centre In The Square. Mr. D. Donaldson, General Manager, and Ms. S. McMorran, Manager of Financial Services, appeared on behalf of The Centre. Mr. Donaldson indicated that the Ellen Street project is on hold pending an economic recovery and a more favourable fund raising climate. On a motion by Alderman G. Lorentz - It was resolved: "That the 1993 Capital Budget for The Centre In The Square be approved." The Committee considered the Capital Budget for the Finance Department. 1. 1993 CAPITAL BUDGET AND TEN YEAR CAPITAL FORECAST (cont.) On a motion by Alderman B. Stortz - It was resolved: "That the 1993 Capital Budget for all Divisions of the Finance Department be FINANCE AND ADMINISTRATION COMMITTEE MINUTES - 86 - NOVEMBER 25, 1992 approved." The Committee reviewed the General Expenses portion of the Budget. Moved by Alderman J. Ziegler - "That the budget line and $500,000.00 allocation in 1997 for a grant to Conestoga College be removed from the Capital Budget and Forecast." Alderman Ziegler advised that he does not support the grant and noted that the request has not been fully debated by Council. Alderman Wagner acknowledged his respect for the work of the College, however, indicated he did not feel municipal funding of education is appropriate and could set an undesirable precedent. He referred to the perception that the Province is downloading its financial responsibility in this area. Alderman Stortz questioned the $500,000.00 lump sum payment and asked whether any contribution could be phased in. Mr. McKay replied that the College had originally requested $1,250,000.00, with consideration of the request deferred to the budget process. He pointed out that in the interest of maintaining a balanced budget the $500,000.00 figure had been used and allocated in the last year of the College's five year request. Alderman Stortz expressed the opinion that any financial commitment should be phased in, noting that the community is in a severe recession the recovery from which depends on the development of a skilled work force. Alderman Galloway advised that he could support a contribution which involves a facility sharing agreement, but not one where academic and administrative improvements alone are involved. Alderman Ziegler pointed out that the Committee has neither a copy of the College's statement of finances or a staff financial analysis, the former of which is normally received from organizations requesting a municipal grant. Alderman Ziegler referred to the large percentage of Provincial grants received by the College as well as various corporate contributions. He also expressed concern over committing the money of municipal ratepayers to fund a Provincial responsibility. He concluded that the Committee has insufficient information on which to base a decision, and if necessary a special meeting should be held to review the College's financial statement in detail. Mayor Cardillo indicated a willingness to consider a phased contribution of $100,000.00 per year in the years 1994 to 1997 inclusive. Alderman Stortz reminded the Committee that at the time closing of the Uniroyal-Goodrich plant was announced the municipality indicated a willingness to support re-training initiatives, and the Conestoga College request represents an opportunity in that area. Alderman Yantzi commented that education is clearly a Provincial responsibility, however, the municipality should look at other more appropriate ways of supporting the College. Alderman Lorentz expressed the opinion that local ratepayers could not support the additional tax burden involved in funding a College Capital project. Alderman Zehr questioned the value of the grant and indicated a willingness to propose an alternate amount. The motion by Alderman J. Ziegler to remove the grant to Conestoga College from the Capital Budget was voted on and CARRIED. On a motion by Mayor D.V. Cardillo - It was resolved: "That subject to the removal of the budget line and the $500,000.00 allocation in 1997 relative to a Conestoga College grant, the General Expenses portion of the 1993 Capital Budget be adopted, as amended." 1993 CAPITAL BUDGET AND TEN YEAR CAPITAL FORECAST (cont.) The Committee reviewed the Budget for the Kitchener Public Library Board. Mr. L. Matthews, Chief Librarian and Secretary-Treasurer, and Mr. T. Polzin, Member, appeared on behalf of the Board. Alderman Galloway referred to the new community library allocated in the years 1998/99 and questioned whether this could be combined with other related facilities. He asked whether given FINANCE AND ADMINISTRATION COMMITTEE MINUTES - 87 - NOVEMBER 25, 1992 the proposed Capital Surplus in 1998 the project could not be advanced to 1997 to coincide with the community centre. Mr. McKay suggested that the entire project, valued at $1,800,000.00 could be advanced to 1998. Moved by Alderman T. Galloway - "That the Capital Forecast of the Kitchener Public Library Board be amended with regard to the new community library so as to allocate in 1999 the sum of $1,800,000.00, and further, That the above be with the expressed purpose of combining construction of the proposed community centre with that of the community library." Mr. Gazzola advised that the above is dependent on a lot levy commitment and Alderman Zehr asked that staff obtain the appropriate information and report back. The motion by Alderman Galloway to amend that portion of the Kitchener Public Library Board Forecast relative to the new community library was voted on and CARRIED. On a motion by Alderman G. Lorentz - It was resolved: "That subject to a reallocation of the new community library in the year 1998, the 1993 Capital Budget of the Kitchener Public Library Board be approved." The Committee considered the Capital Budget for the Plannin,q and Development Department. On a motion by Alderman J. Ziegler- It was resolved: "That further consideration of an allocation in the 1993 Capital Budget and Forecast of the Planning and Development Department relative to heritage conservation districts be deferred until the December 14, 1992 Council meeting pending a presentation by staff at the December 7, 1992 meeting of the Planning and Economic Development Committee." A discussion took place concerning the $182,000.00 allocation for advertisements relative to the Official Plan and Zoning By-law. Alderman Galloway asked whether there are criteria in the Planning Act as to the size of the public advertisement and Mr. McCabe replied in the negative, adding that all street names must be legible and the specifics of the meeting clearly outlined. He added that the alternative to advertising is to send a registered letter to every property owner. Mr. McCabe noted that 16 one page advertisements are required due to the extent of the residential sector under consideration. Alderman Zehr questioned the $36,000.00 amount allocated to printing and Mr. Stanley replied that staff are proposing to circulate with the K-W Record a printed insert of the final draft Official Plan in the same format as used in the past. Alderman Zehr questioned whether as an alternative to the circulation proposed additional copies could be mailed to individuals on an as requested basis. Mr. Stanley referred to the precedent set by the Region and the City with regard to circulation and pointed out that the alternative would involve a small advertisement notifying of the Plan and its availability at either City Hall or one of the community centres. Mr. McKay suggested that it would be appropriate 1. 1993 CAPITAL BUDGET AND TEN YEAR CAPITAL FORECAST (cont.) for staff to submit a detailed report on circulation relative to the Zoning By-law and the Official Plan for consideration by the Planning and Economic Development Committee, On a motion by Alderman J. Smola - It was resolved: "That subject to deferral of the item relative to new heritage conservation FINANCE AND ADMINISTRATION COMMITTEE MINUTES - 88 - NOVEMBER 25, 1992 districts, the 1993 Capital Budget for all Divisions of the Planninq and Development Department be approved." The Committee considered the Capital Budget for the General Services and City Clerk's Department. Alderman Galloway questioned the reduction of the 1997 allocation for automated building systems and Mr. Ford replied that this would result in fewer building conversions. Mr. McKay added that an energy management provision has been included in each year and the amount at issue is in addition to that provision. Mr. Gazzola expressed the opinion that there are still sufficient funds in the energy management provision. On a motion by Alderman G. Lorentz - It was resolved: "That the 1993 Capital Budget for all Divisions of the General Services and City Clerk's Department be approved." The Committee considered the Capital Budget for the Economic Development Department. Alderman Zehr left the meeting at this time and Alderman Stortz assumed the Chair. Mr. McKay advised that staff will present a report to the Planning and Economic Development Committee recommending the City reduce the list price of its industrial lands. He pointed out that presently they are valued at cost, however, the market value has dropped below the asking price. On a motion by Alderman G. Lorentz - It was resolved: "That the 1993 Capital Budget for the Economic Development Department be approved." The Committee considered the Capital Budget for the Administrative Services Department. On a motion by Alderman G. Lorentz - It was resolved: "That the 1993 Capital Budget for the all Divisions of the Administrative Services Department be approved." Mr. Gazzola summarized the changes made this date by the Committee and asked for a motion addressing allocation of the $100,000.00 for the Kitchener Farmers Market, and how the Committee wished to proceed relative to the sound system in the Kitchener Auditorium. He further advised that at present the Capital Surplus contains approximately $200,000.00 and the Auditorium Ticket Reserve Fund $30,000.00, with an anticipated return to the Fund in 1993 of approximately $80,000.00. On a motion by Alderman G. Lorentz - It was resolved: "That the $100,000.00 amount allocated for special upgrades to the Kitchener Farmers Market be funded through a transfer from Capital Surplus to the Capital Budget, and further, 1. 1993 CAPITAL BUDGET AND TEN YEAR CAPITAL FORECAST (cont.) That improvements to the sound system in the Kitchener Auditorium be moved from 1994 to 1993 and funded through the Auditorium Ticket Reserve Fund." 2. ADJOURNMENT On motion, the meeting adjourned at 2:45 p.m. FINANCE AND ADMINISTRATION COMMITTEE MINUTES - 89 - NOVEMBER 25, 1992 G. Sosnoski Manager of Corporate Records/Assistant City Clerk