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HomeMy WebLinkAboutFinance & Admin - 2000-02-21FAC\2000-02-21 FINANCE & ADMINISTRATION COMMITTEE MINUTES FEBRUARY 21, 2000 CITY OF KITCHENER The Finance and Administration Committee met this date, Chaired by Councillor J. Ziegler, commencing at 9:42 a.m. with the following members present: Councillors T. Galloway, G. Lorentz, John Smola, K. Taylor-Harrison, C. Weylie and M. Yantzi. Others present: Ms. P. Houston, Ms. L. MacDonald, Ms. J. Koppeser, Messrs. J. Gazzola, J. Shivas, G. Sosnoski, P. Sinnott, E. Kovacs, S. Gyorffy, R. Pritchard, G. Melanson and Ms. D. Gilchrist. 1. TRI-CITY FINANCIAL COMPARISIONS The Committee members were provided with a printed version of the PowerPoint presentation made by Ms. P. Houston, Chief Financial Officer, with respect to the financial comparisons per capita for Kitchener, Waterloo and Cambridge. Ms. Houston advised that a staff team worked to prepare a report and believe that they have proper financial comparisons between the three municipalities. She noted that the biggest difference between the municipalities is capital and debit contributions noting that the City of Kitchener's per capita is $47.00 because of the gas works dividend. Ms. Houston reviewed the costs per capita for the Fire Services, Roads, Cemeteries, Community Centres, Pools, the Centre in the Square, Transit and Libraries and then provided a tax break comparison, also based on 1998 budgets. Ms. Houston commented that the Transit Service was included as it was run by the lower-tier municipalities in 1998. With respect to Cemeteries, Ms. Houston noted that, in 1998, the City had not realized the benefits of the Crematorium Service. With respect to the tax rate comparisons, Ms. Houston advised that the major differences in the tax rates are due to the difference in the assessment base, noting that the City of Waterloo has a higher assessment base and Cambridge has a higher industrial tax base. Councillor T. Galloway stated that it was clear to see why the City of Kitchener infrastructure and services were in good order, due to the revenue received from the gas works. 2. EXTENSION TO DEADLINE - PAYMENT OF CANCELLATION PRICE FOR TAX ARREARS - 227 LOUISA STREET The Committee was in receipt of a report from Ms. L. MacDonald, Assistant City Solicitor, dated February 16, 2000, with respect to a request received from Mr. R. Konrath for an extension to the time limit to pay the cancellation price for the tax arrears on 227 Louisa Street. Mr. R. Konrath appeared as a delegation to represent his request, made through the City's Legal Department, for an extension to the deadline to pay the cancellation price for the tax arrears at the property municipally known as 227 Louisa Street, Kitchener. He noted that his lawyer had to leave town for a few days and that he has signed a new listing agreement to sell the property. Mr. Konrath advised that he had not received the first notice from the City and his lawyer had not been notified. When questioned by the Committee, Ms. L. MacDonald advised that the cancellation price for February is $51,000 and for March it is $52,000. Councillor John Smola put forward a recommendation of no action on Mr. Konrath's request. He noted that this is a storage garage and not a residence and briefly reviewed the history of this situation also noting that the City has had to have staff go out and clean up the property. A brief discussion took place with respect to the assessed value and market value for this property and Ms. MacDonald advised that, under the Municipal Tax Sales Act, the municipality has no obligation to get fair market value for the property, only to recoup the amount of taxes owing. Councillor Yantzi questioned whether Council should pass a by-law to proceed with the sale but not for two months to give Mr. Konrath an opportunity to try and sell the property. Ms. MacDonald explained that staff do not require a by-law to proceed with the sale, only a by-law if an extension is given. FINANCE & ADMINISTRATION COMMITTEE MINUTES FEBRUARY 21, 2000 -17- CITY OF KITCHENER 1. TRI-CITY FINANCIAL COMPARISIONS, CONT'D Councillor John Smola suggested taking no action on the request but directing staff not to advertise the property for sale for two months. On a motion by Councillor John Smola - it was resolved: "That no action be taken on the request of the owner for an extension to the time period to pay the cancellation price, under the Municipal Tax Sales Act for the property municipally known as 227 Louisa Street, Kitchener; and further, That staff be directed not to advertise this property for sale before April 22, 2000." Councillor J. Ziegler explained the motion to Mr. Konrath noting that the property would not be advertised for sale before April 22, 2000. 3. REQUEST BY CHARITIES ASSOCIATION TO WAIVE BINGO FEES The Committee was in receipt of a report from Ms. J. Koppeser, Manager of Licensing, and Mr. G. Sosnoski, Deputy City Clerk, dated February 16, 2000, with respect to a written request from the Charities Bingo Association that the City of Kitchener place a moratorium on fees for Bingo Licences for the period March 2000 to August 2000 inclusive, to allow them an opportunity to fully assess the ramifications of the Smoking By-law and to help defray some of the lost revenues. Mr. Max Rausch appeared as a delegation to represent the request of the Charities Bingo Association. He requested a month to month waiver of bingo fees noting that the Association is looking at a loss of $27,000. He advised that they will have to close the bingo hall by the end of June if their revenues remain at this level. With respect to suggestions made in The Record regarding slot machines and the Casino in Brantford, Mr. Rausch noted that slot machines were operating last year and there was no loss of revenue until January of this year. He suggested that gamblers are smokers and that the smoking by-law is having a detrimental effect on their operations. He also advised that the Provincial government allows for smoking in their casinos, as they know that a smoking prohibition will affect their operations. Councillor M. Yantzi declared a conflict of interest with this matter as his employer, Community Justice Initiatives, receives funds from charities, and did not participate in any discussion or voting with respect to this matter. Councillor T. Galloway referred to the statistics contained in the staff report noting that the gross receipts for the Kitchener Charities Bingo Association is down by 18% and questioned whether Mr. Rausch knew why. Mr. Rausch responded that they reviewed their statistics for the last five years and the bingo business as a whole as gone down. He noted that they had lowered the prize board from $3,000 to $2,300 in order to generate some revenues. Councillor Galloway then referred to the slot machines, the Brantford Casino and the Smoking By-law and also the fact that spending, on the whole is down, and questioned how much of the loss could really be attributable to the smoking by-law. He suggested that the loss of revenue is due to more than just the smoking by-law. Councillor G. Lorentz questioned how the Charities Bingo Association started and why they operate. Mr. Rausch noted that there were eight charities working out of the Transylvannia Club and they decided to open their own hall. He advised that the hall is owned totally by the Charities. Once established, more charities came to the Bingo hall and more sessions were added. Councillor Lorentz then questioned whether the Provincial government's policies on gambling affected the Charities Bingo Association. Mr. Rausch commented that the casinos attract a different clientele and that the bingo halls are more like a social club. Councillor Lorentz questioned what pro-active steps the Charities Bingo Association has taken to advertise their smoke-free environment and questioned how the City could assist in that. Mr. Rausch responded that if he thought a non-smoking environment would attract more people FINANCE & ADMINISTRATION COMMITTEE MINUTES FEBRUARY 21, 2000 -18- CITY OF KITCHENER he would advertise. He also noted that there has to be a total smoking ban in all bingo halls. REQUEST BY CHARITIES ASSOCIATION TO WAIVE BINGO FEES, CONT'D Councillor Jake Smola asked for an elaboration on the timeline when Mr. Rausch felt that the bingo hall would have to shut down. Mr. Rausch responded that in January they lost $18,000 and they have enough funds to last approximately six months. When questioned by Councillor Jake Smola, Mr. Rausch responded that there is mixture of 34 charitable groups operating bingos from the Charities Bingo Association hall. Mr. Jim Facey of Bingo Country was in attendance and advised that their revenues are down by 58%. He advised of his concern that the charities which operate bingos at the Bingo Country have a negative cash flow. He advised that seven charities have indicated that they would have to withdraw from bingos if the situation does not change. He asked the Committee for a temporary moratorium on Bingo Licence fees or that the City reduce the actual loss per charity from the fee. Councillor Galloway questioned whether Bingo Country has been absolutely smoke-free since the beginning of the year. Mr. Facey responded that they have attempted to be smoke-free; however, there are some people who refuse to quit. They have contacted the by-law enforcement officers when a problem with enforcement occurs but the officers have not responded. He advised that they are starting to see some non-smokers attend bingos but not on a regular basis. With respect to his suggestion for a moratorium on bingo fees, Mr. Facey suggested that a rebate would be the simplest way, administratively, of accomplishing this. When questioned by Councillor J. Ziegler, Ms. Koppeser advised that staff could administer a rebate, which would involve requisitioning cheques. Councillor G. Lorentz noted that Bingo Country has filed for a cultural exemption from the Smoking By-law and questioned the impact of a successful appeal. He noted that one of the suggestions is a 50/50 split. Mr. Facey responded that he thought it would make a difference if smokers and non-smokers could go in separate areas of the bingo hall. It would allow each group to have what they think are their rights. Councillor T. Galloway questioned the licence fees and Ms. Koppeser advised they are 3% of the bingo prize board. He then requested an explanation as to how to provide relief to the charities and Ms. Koppeser advised that it would have to be a refund to their bingo trust account. Councillor J. Ziegler suggested a refund to the charity if there is a loss. Councillor G. Lorentz stated that he could agree to a rebate of bingo licence fees as a short- term solution; however, it is necessary to explore helping the bingo operators advertise that they are now smoke-free. Councillor Jake Smola put forward a motion to refund directly to the charities, all but $1.00 of each fee paid by the charities for Bingo Licences for the licence period commencing January 1, 2000, and that a review of the situation take place at the end of the licence period. Several Councillors spoke in favour of the motion. Councillor Lorentz again emphasized the need to communicate to the public that bingo halls are now smoke-free. He requested a report for Council on Monday, February 28, 2000 in this regard. On a motion by Councillor Jake Smola - it was resolved: "That staff be directed to refund, directly to the charities, all but $1.00 of each fee paid for Bingo Licences from January 1 to April 30, 2000; and further, That the request of Kitchener Charities Bingo Association to waive fees for Bingo FINANCE & ADMINISTRATION COMMITTEE MINUTES FEBRUARY 21, 2000 -19- CITY OF KITCHENER Licences be reviewed after April 30, 2000." 3. REQUEST BY HOMENIUK RIDES TO OPERATE A MIDWAY AT 245 STRASBURG ROAD The Committee was in receipt of a report from Ms. J. Koppeser, Manager of Licensing, dated February 16, 2000, advising of the request received from Homeniuk Rides Incorporated to operate a midway on the former Bestpipe property on the corner of Ottawa Street South and Strasburg Road for the period April 29-30, 2000. Ms. Koppeser advised that Homeniuk will again locate in the same place on the site as they did in the fall of 1999. Councillor T. Galloway advised that he was concerned about the length of time noting that this will probably be the last year they operate on that site, and stated that he would not support their request. On a motion by Councillor G. Lorentz - it was resolved: "That Council approve the request of Homeniuk Rides Inc. to hold a midway at 245 Strasburg Road (former Bestpipe location) from April 19 - 30; 2000, subject to the operation being setback from Ottawa Street South, so as to locate at the rear of the property; and further, That all garbage collection and disposal from the midway shall be at the operator's expense." NATURAL GAS RATES The Committee was in receipt of a report from Mr. E. Kovacs, General Manager of Public Works, with respect to modifications to the natural gas rates as a result of the costs of transportation of gas to the customers. On a motion by Councillor G. Lorentz - it was resolved: That, in order to flow through the cost of transportation of gas to customers without cross-subsidization, gas rates be modified in accordance with the rates shown in "Appendix A" to the report of E. Kovacs, General Manager, Public Works, dated February 16, 2000. Mr. Kovacs introduced some members of Kitchener Utilities staff: Ms. V. Turner-Schoemaker, Ms. J. Murphy and Ms. L. Baillargeon. ADJOURNMENT On motion, the meeting adjourned at 11:05 a.m. D. H. GILCHRIST COMMITTEE ADMINISTRATOR