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FINANCE & ADMINISTRATION COMMITTEE MINUTES
JULY 5, 1999
CITY OF KITCHENER
The Finance and Administration Committee met this date, commencing at 5:08 p.m. under Councillor J.
Ziegler, Chair with the following members present: Councillors Jake Smola, M. Yantzi, K. Taylor-
Harrison, G. Lorentz, John Smola, J. Haalboom, C. Weylie and T. Galloway. Councillor B. Vrbanovic
entered the meeting after its commencement.
Officials present: Ms. P. Houston, G. Luciantonio and Messrs. J. Gazzola, R. W. Pritchard, J. Shivas, B.
Stanley. T. Clancy, L. Proulx, G. Freeborn, P. Siopiolosz and L. W. Neil
The Committee met to consider matters that were deferred at its regular meeting held June 28, 1999.
1. SECURITY SERVICE 1999 - 2000 STRATEGIC PLAN
An outline of the 1999 - 2000 Strategic Plan, prepared by Wayne Hussey Consulting Inc., that has
been developed for the City's Security Service was distributed with the Committee agenda.
Mr. R. W. Pritchard appeared before the Committee to provide an overview of the Plan utilizing the
visual projection system but first advised that preparation began last April and that participation by
security staff had been excellent. Mr. Pritchard took the Committee through the first part of the
report dealing with a profile of the security service and then led into the Vision Statement and
Mission Statement that was developed by the staff. He then reviewed the Action Objectives
individually with commentary and explanation on a number of the objectives.
In response to Councillor Jake Smola, Mr. Pritchard advised that future training would be
accomplished by utilizing a mixture of appropriate resources; for example from: the Police
Department, within City Hall, community based organizations and other education resources. As
well, as part of the position requirements he advised that everything would be on the table for
consideration including the issue of acquisition of protective vests raised by Councillor Jake
Smola.
Councillor K. Taylor-Harrison referred to the profile of the security service and questioned Item No.
2 'Our Main Purpose' as to what was meant by supervision of dedicated City facilities; specifically
questioning what "dedicated" meant. Mr. Pritchard clarified that reference to supervise did not
mean supervise all City facilities and that supervision related only to the security aspect of certain
City facilities. Further he indicated that the action objections outlined in bold meant that they were
being addressed immediately. He did point out that the training objective would take the longest
time period to accomplish and would be ongoing. Finally, it was indicated that the Plan presented
this date was intended as information to the Committee.
2. FUNDING POLICY - SICK LEAVE RESERVE FUND
The Committee was in receipt of a report dated June 23, 1999 from Ms. P. Houston discussing
funding policy for the Sick Leave Reserve Fund (SLRF) since 1987.
Ms. Houston pointed out that the current policy requires a minimum sixty (60) per cent funding
level but at present the SLRF is only nine (9) per cent funded. She indicated that the Auditors
are comfortable with a twenty-five (25) per cent level being recommended to cover the liability
for accumulated unused sick leave days. Ms. Houston noted that departmental budgets
contain an average amount for sick leave for hourly rated employees. Councillor T. Galloway
questioned why hourly staff were treated differently that salaried staff and Ms. Houston and
Mr. J. Gazzola responded in this regard. Further Mr. T. Clancy, on the issue of management
of sick leave, responded that Human Resources has established an alternate system to
manage sick leave of individual employees that was outside of the remuneration issue.
Councillor John Smola questioned if there was any accounting or tracking of the sick leave of
retiring employees that was in excess of the existing entitlements upon retirement. Ms. P.
Houston advised that only the liability with respect to sick leave payout was calculated and
that accumulated excess sick leave beyond the payment policy was not calculated nor
accounted for in any way.
FINANCE & ADMINISTRATION COMMITTEE MINUTES
JULY 57 1999 - 111-
CITY OF KITCHENER
FUNDING POLICY - SICK LEAVE RESERVE FUND - CONT'D
On a motion by Councillor M. Yantiz -
it was resolved:
"That the Funding Policy for the Sick Leave Reserve Fund be amended to maintain the
Sick Leave Reserve Fund at a level equivalent to twenty-five (25) per cent of the liability for
accumulated unused sick leave days."
By general consent, it was agreed to refer this recommendation to the Council meeting this date
for addition to the Finance and Administration Committee report arising from the Committee's June
28th meeting.
PRESENTATION OF PROFORMA BUDGET FOR THE YEAR 2000
Ms. P. Houston, assisted by Ms. G. Luciantonio provided a visual overhead presentation with
respect to the Year 2000 Proforma Budget. She reviewed factors affecting the year 2000 tax
rate being:
· assessment growth
· annualization factors
· new/other factors
· expenditure changes -inflation
· revenue changes -inflation
The factors were illustrated in more detail in tabular form within the information document
distributed. It was pointed out that at this stage the net levy increase is 2.5 per cent for the
year 2000.
In response to Councillor Jake Smola, Ms. Houston advised that staff are projecting a zero
percent assessment growth. She pointed out that when the assessment system changed, the
vacancy rate was not taken into account from last year and that this accounts for 0.75 per cent
assessment growth that otherwise would have been shown. Councillor G. Lorentz referred to
a previous plan considered by Council with respect to assessment growth on an annual basis
for several years. In response to Councillor B. Vrbanovic, Ms. Houston advised that the City
has not received supplementary assessment adjustments as of this date.
Councillor G. Lorentz questioned if the impact of Hydro operations was reflected and Ms.
Houston advised that it was not given that there were too many unknowns at this point in time.
Mr. J. Gazzola commented that the Hydro operation has to be re-configured and noted that
certain assets of Hydro such as cash and investments would flow to the municipality.
Councillor J. Ziegler asked that all members of Council mark down the meeting dates referred
to in the document distributed by Ms. Houston this date. It was pointed out that all dates
represented full day meetings.
In response to concern expressed regarding certain percentages, Mr. J. Gazzola commented
that the document was an excellent starting point for Council to commence reviewing the Year
2000 Budget.
ADJOURNMENT
On motion the meeting adjourned at 6:05 p.m.
L. W. NElL
ASSISTANT CITY CLERK