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HomeMy WebLinkAboutFinance & Admin - 1992-12-14FAC\1992-12-14 FINANCE AND ADMINISTRATION COMMITTEE MINUTES DECEMBER 14, 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, G. Lorentz, J. Smola, M. Wagner, C. Weylie, G. Leadston and M. Yantzi. Alderman J. Ziegler was in attendance for part of the meeting. Others present: Messrs. T. McKay, J. Gazzola, L. Ryan, R. Freeborn, C. Cooke, D. Paterson, G. Borovilos, J. Hancock, B. Kuntz, O. den Ouden, R. Pritchard, L. Parkhouse, C. Ford, L. Gordon, P. Summers, F. Clement, R. Arnot, D. Suzuki, S. Gyorffy, B. Liddle, J. O'Rourke, B. Musselman, E. Kovacs, G. Sosnoski, Ms. V. Gibaut, Ms. R. Upfold, Ms. G. Meyer, Ms. B. Baker, and Ms. D. George. The purpose of the meeting was to consider the 1993 Operating Budget as recommended by the Administrative Review Committee. 1993 OPERATING BUDGET Mr. Gazzola gave an overview of the proposed 1993 Budget. He pointed out that the Pro Forma Budget of June, 1992 indicated a 5.5% increase. Following changes made by the Finance and Administration Committee this was reduced to 4% and a 2% target was established. Mr. Gazzola advised that the original Department estimates averaged 8.8% and that following review by the Administration Committee the present Operating Budget reflects a 2.4% increase. Mr. Gazzola advised that a .76% figure for assessment growth was used in all calculations, noting in particular a decrease in commercial assessment. He stated that at present a levy of approximately $57,000,000.00 is required which is a 3% increase over the $55,000,000.00 required in 1992. Mr. Gazzola reviewed various comparative statistics and outlined the projected net expenses for 1993 by Department. It was noted that as a result of the Administrative Review net reductions were made totalling approximately $3,200,000.00. Alderman Wagner questioned whether Council still supported the target of a net 0% tax increase by 1994, and if so, whether the target proposed in 1993 was adequate to reach this goal. Alderman Zehr advised that during the budget review the Committee would examine the impact on the 1994 budget of decisions made in 1993. He also referred to differing interpretations as what is meant by a net 0% target. Mr. Gazzola advised that the 1993 budget reflects the conversion of a number of positions from part-time to full-time, however, no new staff positions have been created save and except those required to operate the new City Hall. He also added that a decision to license boarding houses would require a significant staff increase. Mr. Gazzola reviewed the Operating Budget for all Divisions of the Administrative Services Department, and the changes made by the Administrative Review Committee. He noted that the Computer Reserve Fund was initially financed by transfers from Capital, and then by Department contributions in the form of users fees. He stated that since replacement costs are declining the rental rate has been reduced in all Department budgets. A discussion took place concerning the increased amount proposed for the Kitchener Employee Assistance Program (KEAP), which provides counselling services and is funded from the Sick Leave Reserve Fund. Mr. Freeborn referred to an increase in use of approximately 25% in 1992. Mr. McKay added that this is consistent with increases experienced by other organizations in the area due to the recession and related problems. Alderman Galloway suggested that use of the Program, in terms of the number of visits, should be controlled and Mr. Freeborn cautioned that the number of visits required would depend on the nature of the problem. It was noted that the average number of visits is between six and eight. Alderman Yantzi suggested the issue of prolonged, long term use by individuals should be investigated. It was generally agreed that staff 1. 1993 OPERATING BUDGET (cont.) FINANCE AND ADMINISTRATION COMMITTEE MINUTES - 103 - DECEMBER 14, 1992 would review use of the Program, and in particular how other organizations such as the Region of Waterloo and Mutual Life have dealt with prolonged, long term use. Mr. Freeborn agreed to undertake the review in 1993. Alderman Wagner questioned the reduction made by the Administrative Review as regards staff training. Mr. Freeborn replied that the Department had asked for a provision for management training, and expressed the opinion that this issue should be addressed from a corporate standpoint. Mr. Gazzola added that in all cases staff training and conference budgets have been frozen at 1992 levels. On a motion by Alderman G. Lorentz - It was resolved: "That the 1993 Operating Budget for all Divisions of the Administrative Services Department be approved." The Committee then considered the Operating Budget for The Centre In The Square and the changes made by the Administrative Review Committee. Alderman Smola asked that he receive information on the number of people attending events at The Centre In The Square in 1992. On a motion by Alderman M. Wagner- It was resolved: "That the 1993 Operating Budget for The Centre In The Square be approved." Mr. Gazzola reviewed the Operating Budget for the Kitchener Public Library Board and the changes made by the Administrative Review Committee, noting a proposed 3.1% increase. On a motion by Alderman C. Weylie - It was resolved: "That the 1993 Operating Budget for the Kitchener Public Library Board be approved." Mr. Gazzola reviewed the Operating Budget for the Economic Development Department and the changes made by the Administrative Review Committee, noting a proposed increase of 1%. Moved by Mayor D.V. Cardillo - "That the 1993 Operating Budget for the Economic Development Department be approved." Alderman Galloway questioned whether in the area of promotions further savings could be made by working jointly with the City of Waterloo. Mr. McKay replied that this is already the case with regard to the Canada's Technology Triangle group. Mr. McKay suggested that given this and other co-operative ventures there is little opportunity to reduce expenditures on promotions, especially in light of a recent decision by the City of Waterloo to substantially reduce their promotions budget. Alderman Yantzi questioned whether it was appropriate that the number of personal contacts be increased rather than soliciting interest through advertising. Mr. McKay pointed out that the advertising portion is a small part of the promotional budget. Alderman Wagner added that reductions should not be made in advance of reviewing the Department's Marketing Plan. Alderman Leadston suggested that reducing the promotional budget would not have a significant and adverse impact on the likelihood of large organizations moving to the City. Moved by Alderman G. Leadston - "That the Promotions section of the Economic Development Department 1993 Operating Budget be reduced by the amount of $1,000.00." 1. 1993 OPERATING BUDGET (cont.) FINANCE AND ADMINISTRATION COMMITTEE MINUTES - 104 - DECEMBER 14, Alderman Yantzi asked to view additional budget details before voting on a reduction. 1992 Alderman Leadston amended his previous motion to reflect a $5,000.00 rather than a $1,000.00 reduction. Ms. Gibaut reviewed the Promotions budget and circulated copies of an extract from the 1993 Marketing Plan. She reviewed the budget line by line and noted that the Pocket Community Profile would likely be produced for less than the $5,000.00 amount indicated. Alderman Leadston inquired as to how a $5,000.00 reduction would impact the Plan. Alderman Lorentz expressed the opinion that this was an unfair question as the decision to reduce a Department budget is a political one. In response, Alderman Leadston suggested the elimination of the $2,000.00 amount for the CTT Lure Brochure and reductions of $1,000.00 in each of the Pocket Community Profile, Business Directory and Downtown Joint Marketing - KDBA items. The motion by Alderman G. Leadston, as amended, to reflect a $5,000.00 reduction was voted on and LOST. The main motion by Mayor D.V. Cardillo to adopt the 1993 Operating Budget of the Economic Development Department was voted on and CARRIED. Mr. Gazzola reviewed the Operating Budget for the Chief Administrator's Department and the changes made by the Administrative Review Committee, noting a proposed increase of 1.3%. On a motion by Mayor D.V. Cardillo - It was resolved: "That the 1993 Operating Budget for the Chief Administrator's Department be approved." Mr. Gazzola reviewed the Operating Budgets for the Mayor and Council and the changes made by the Administrative Review Committee. He noted a proposed 4.2% increase in the Council budget and a 1.2% increase in the Mayor's budget, both of which reflect a 2% increase in the honorarium. On a motion by Alderman G. Lorentz - It was unanimously resolved: "That a proposed 2% increase in the honorarium for the Mayor and Council be removed from the respective 1993 Operating Budgets." Alderman J. Ziegler entered the meeting at this time. Moved by Mayor D.V. Cardillo - "That the 1993 Operating Budgets for the Mayor and Council be approved." Alderman Wagner asked that the L.A.C.A.C. portion of the Council budget be amended by adding $1,200.00 (Capital Expenses - Office Equipment) to purchase a portable display unit. He noted that the apparatus previously loaned from Kitchener Minor Soccer is no longer available and that the unit in question would be less expensive than previously budgeted and be available for use by other Departments. Moved by Alderman M. Wagner - "That $1,200.00 (Capital Expenses - Office Equipment) be added to the L.A.C.A.C. portion of the 1993 Council Operating Budget for the purchase of a portable display unit." 1. 1993 OPERATING BUDGET (cont.) On a motion by Alderman B. Stortz - FINANCE AND ADMINISTRATION COMMITTEE MINUTES It was resolved: - 105 - DECEMBER 14, 1992 "That consideration of the request to add $1,200.00 to the L.A.C.A.C. portion of the 1993 Council Operating Budget be deferred to Budget Day (January 22, 1993), pending a report from Mr. T. McKay concerning similar units available within the corporation and any other relevant options." Mr. Gazzola suggested that this expenditure could be allocated under the new City Hall budget. Moved by Alderman J. Ziegler - "That no action be taken in 1993 to renew the City's membership in the Federation of Canadian Municipalities (FCM), and the Council budget reduced accordingly in the amount of $16,155.00." Alderman Ziegler expressed the opinion that the FCM is less effective from the City's standpoint than the Association of Municipalities of Ontario (AMa). Mr. McKay suggested an alternative whereby the Region would take out a single FCM membership and the individual municipalities would automatically become members. He noted that the overall cost would be less and that the Region has not addressed this option to date. Alderman Ziegler stated that if the membership amount for the FCM were reduced to less than that of the AMa he would support this initiative. Mr. Gazzola cautioned that it was unlikely the amount would be reduced significantly below the amount budgeted. Mayor Cardillo referred to several instances of support and communication involving the FCM, notably the VIA Rail initiative. A motion by Mayor D.V. Cardillo to defer consideration of the motion by Alderman Ziegler to delete the FCM membership from the 1993 Operating Budget pending further discussions with the Region concerning joint membership, was voted on and LOST. The main motion by Alderman J. Ziegler to remove the FCM membership from the 1993 Council Operating Budget was voted on and CARRIED. The motion by Mayor D.V. Cardillo to approve the 1993 Operating Budgets for the Mayor and Council was voted on and CARRIED, AS AMENDED. Fire Chief Hancock advised that earlier this date a Station No. 3 Pumper responding to a medical alarm collided with a school bus at the intersection of Lackner Blvd. and Victoria Street. He noted that one individual was taken to hospital. Mr. Gazzola reviewed the 1993 Operating Budget for all Divisions of the Fire Department and the changes made by the Administrative Review Committee, noting a proposed increase of 8.8%. Moved by Mayor D.V. Cardillo - "That the 1993 Operating Budget for all Divisions of the Fire Department be approved." Alderman Zehr questioned the impact of tiered response on the Department budget and Chief Hancock replied that the cost of maintenance has increased, since tiered response is accounting for approximately 50% of Fire Department calls. Alderman Galloway inquired as to the timetable for evaluating the five person crew on new units. Chief Hancock replied that the Department is presently working on procedures and guidelines for reporting to Council, with the first report being a year from the date of opening the new fire station. The motion by Mayor Cardillo to adopt the 1993 Operating Budget for all Divisions of the Fire Department was voted on and CARRIED. 1993 OPERATING BUDGET (cont.) The Committee adjourned at 12:00 noon for lunch and reconvened at 12:40 p.m. Mr. Gazzola reviewed the Operating Budget for all Divisions of the Finance Department and the changes made by the Administrative Review Committee, noting a proposed increase of 5%. FINANCE AND ADMINISTRATION COMMITTEE MINUTES - 106 - DECEMBER 14, 1992 On a motion by Alderman B. Stortz - It was resolved: "That the 1993 Operating Budget for all Divisions of the Finance Department be approved." Mr. Gazzola reviewed the Operating Budget for all Divisions of the General Services and City Clerk's Department and the changes made by the Administrative Review Committee, noting a proposed increase of 10.4% Alderman Zehr inquired as to the printing costs for Neighbourhood Associations and Mr. Parkhouse replied that the Parks and Recreation Department has worked with community groups to reduce the number of pages, which he indicated are at or below 1992 levels. Alderman Galloway questioned the increased costs due to the re-organization of the Records Management Section. Mr. Pritchard replied that the re-organization was in response to a corporate wide consulting study which had recommended upgrading the qualifications of staff. He noted that increased expenditures in 1993 would be offset by a 1992 surplus, and that the re-organization has removed the necessity to purchase an additional microfilm camera. Mr. Gazzola reviewed the impact of the new City Hall on the Department's 1993 Operating Budget. He noted that available budget funds would be reduced by the cost of a part year occupancy in the current premises and noted additional budget implications for the Operating Budgets of the Parks and Recreation and Public Works Departments. A general discussion took place concerning the budget items relative to the new City Hall. Alderman Stortz suggested that a figure for rental income in the new City Hall should be budgeted in 1993. Mr. McKay advised that this is not recommended, and in his opinion would be irresponsible given the current rental environment. It was generally agreed that the issue of rental income as regards the new City Hall building would be considered further on Budget Day. Mr. Gazzola reviewed a summary of new staff positions required in conjunction with occupying the new City Hall. Alderman Zehr asked for a printout listing the entire City complement. Mr. McKay noted that a reasonable budget had been submitted by Department staff, however, the Administrative Review Committee had applied the guideline imposed by the Finance and Administration Committee. He further advised that current staff will be reallocated to fill the Building Control Operator position and cross training will be attempted with regard to the HVAC position. However, he noted that if these initiatives are unsuccessful, staff will be requesting additional staff in 1994. Alderman Leadston asked whether existing staff could be used to program civic square events. Mr. McKay replied that the volume of events proposed would prohibit this, as it is anticipated these would occur seven days a week. Mr. Arnot concurred adding that the use of Parks and Recreation Department staff would require that an employee be removed from an existing job and in his opinion this would not be advisable. On a motion by Alderman B. Stortz - It was resolved: "That the 1993 Operating Budget for all Divisions of the General Services and City Clerk's Department be approved." Mr. Gazzola reviewed the Operating Budget for all Divisions of the Public Works Department, including the Gas and Water Utilities. He noted an overall budget reduction of 1.7%. 1993 OPERATING BUDGET (cont.) Alderman Lorentz inquired as to the status of the snow removal budget and Mr. Musselman replied that one or two significant snow storms could be accommodated, however, a third would likely result in an overexpenditure. Alderman Zehr questioned the 9% figure used for utility costs and noted that this had appeared in other budgets. Mayor Cardillo suggested that the figure would likely be closer to 7%. Alderman Zehr asked that the proposed 1993 utility rate be investigated further and Mr. Gazzola agreed to review all of the Department affected budgets. FINANCE AND ADMINISTRATION COMMITTEE MINUTES - 107 - DECEMBER 14, 1992 Mr. Gazzola reviewed the Statements of Revenues and Expenditures (1992-1998) for both the Gas and Water Works. He noted that the 1993 water rate has been budgeted at the 1992 level and pointed out that the Gas Utility will be in a deficit position for several years at about 1996. Alderman Galloway asked for productivity calculations comparing Kitchener Utilities to other municipal and private sector utilities. Mr. Gazzola replied that these figures are difficult to develop and compare, but staff would attempt to calculate. Alderman Wagner questioned the reduction in part-time wages and asked whether service would be adversely affected. Mr. Kovacs replied that in his opinion the reductions are prudent and to date have not had an impact on either safety or service delivery. Mr. Gazzola pointed out that the 1993 amount for the sewer surcharge has been budgeted at the 1992 level of 75% of the water rate. On a motion by Alderman M. Wagner- It was resolved: "That the 1993 Operating Budget for all Divisions of the Public Works Department, including the Gas and Water Utilities be approved." On a motion by Alderman G. Lorentz - It was resolved: "That the 1993 water rate be established at the 1992 level of $0.783/m3.'' On a motion by Mayor D.V. Cardillo - It was resolved: "That the 1993 sewer surcharge be established at the 1992 level of 75% of the water rate." Alderman Stortz asked that a report be provided for Budget Day showing the impact per household of the water, gas and sewage charges. Mr. Gazzola reviewed the proposed 1993 allocation for contract services. Representatives of the K-W Visitor and Convention Bureau were in attendance to answer any questions relative to contract services. Mr. Gazzola noted that the Bureau would receive the same level of funding as in 1992 and that both the Project Lift and K-W Humane Society budgets would increase by 1.5%. On a motion by Alderman G. Lorentz - It was resolved: "That a 1993 appropriation for contractual services in the amount of $200,000.00 be approved for the K-W Visitor and Convention Bureau." Mr. D. Smith and Mr. W. Kennaley appeared on behalf of Project Lift. Mr. Gazzola reviewed the 1993 Operating Budget for Project Lift and noted that the City of Waterloo has also agreed to the proposed level of funding. Alderman Lorentz inquired whether more extensive use of the 1. 1993 OPERATING BUDGET (cont.) handicap equipped vehicles purchased by United Taxi had been considered. He suggested that it may be cheaper to operate using taxis than with the Project vehicles. Mr. Smith responded that this would depend on the length of the trip, and pointed out that taxis are often unavailable during peak use times. Despite this, Mr. Smith stated that the Project vehicles can transport a greater number of people and cost savings are realized through grouping. On a motion by Alderman M. Wagner- It was resolved: FINANCE AND ADMINISTRATION COMMITTEE MINUTES - 108 - DECEMBER 14, 1992 "That a 1993 appropriation for contractual services in the amount of $669,090.00 be approved for Project Lift." The Committee considered the 1993 municipal appropriation for the K-W Humane Society. On a motion by Alderman B. Stortz - It was resolved: "That a 1993 appropriation for contractual services in the amount of $317,695.00 be approved for the K-W Humane Society." Mr. Gazzola reviewed the Operating Budget for General Revenues and Expenses and the changes made by the Administrative Review Committee, noting a proposed increase of 8.4%. Moved by Mayor D.V. Cardillo - "That the 1993 Operating Budget for General Revenues and Expenses be adopted." Mr. Gazzola reminded the Committee that staff are recommending a global amount for grants, with this amount frozen at the 1992 level. He advised that specific allocations would be the responsibility of the Community Services Committee. Alderman Zehr requested the Committee's direction concerning the handling of unconditional grants from the Province in light of the recent announcement that a single grant would be awarded in 1993 with no allocation in 1994. Mr. Gazzola reminded the Committee that the value of the grant is $128,000.00. On a motion by Alderman B. Stortz - It was resolved: "That the unconditional grant from the Province be treated as revenue in 1993 and be added to the Tax Stabilization Reserve Fund." The motion by Mayor Cardillo to adopt the Operating Budget for General Revenues and Expenses was voted on and CARRIED, AS AMENDED. 2. NEXT MEETING The next special meeting of the Finance and Administration Committee to further review the 1993 Operating Budget will be held on Friday, December 18, 1992. 3. ADJOURNMENT On motion, the meeting adjourned at 3:15 p.m. G. Sosnoski Manager of Corporate Records/Assistant City Clerk