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HomeMy WebLinkAboutFinance & Admin - 1999-11-19FAC\1999-11-19 FINANCE & ADMINISTRATION COMMITTEE MINUTES NOVEMBER 19, 1999 CITY OF KITCHENER The Finance & Administration Committee met this date in special session commencing at 9:15 a.m. and Chaired by Councillor J. Ziegler with the following members present: Councillors John Smola, Jake Smola, M. Yantzi, J. Haalboom, C. Weylie, T. Galloway, G. Lorentz and K. Taylor-Harrison. Mayor C. Zehr was in attendance for part of the meeting. Others Present: Ms. P. Houston, Ms. G. Luciantonio, Ms. D. George, Ms. L. MacDonald and Messrs. J. Gazzola, R.W. Pritchard, D. Daly, R. Wyatt, P. Beaudry, K. Baulk, T. O'Brien, G. Kett, R. Weber, D. Paterson, L. Proulx, C. Pomeroy, J. Moore, D. Hergott, J. Hancock, B. Kuntz, E. Kovacs, D. Quinn, B. Musselman, S. Gyorffy, D. Mansell, L. Lynch, D. Snow, J. McBride, B. Stanley, O. den Ouden, M. Grummett and G. Sosnoski The purpose of this special meeting was to review the year 2000 Capital Budget and Forecast (2000- 2009) as recommended by the Administrative Review Committee. 1. 2000 Capital Budqet and 10 Year Capital Forecast It was noted that the Capital Forecast is in a balanced position for the first 3 years only. Ms. Houston advised that the Budget & Forecast assume assessment growth in 2000 of 1% and 2% from 2001 to 2009. Inflation has been calculated at 2%. She noted that Transit capital projects have been removed and the base budget reduced accordingly. She further noted that this results in a reduction in the capital cost per taxpayer for Transit projects of approximately $3.00. Ms. Houston compared the 1998 tax supported debt per capital of Kitchener to other municipalities noting per capital debt of $71.00 in Kitchener, $65.00 in Cambridge, $244.00 in Waterloo and $75.00 in Burlington. She further noted that capital expenditures by department had decreased from $377,602,000.00 in 1999 to $345,271,000.00 as recommended by the Administrative Review Committee. Ms. Houston then reviewed various aspects of the Capital Budget & Forecast including expenditures by department, funding by source and development charges. She reviewed the development charge project priorities for the year 2000, noting that 17 projects are funded with a closing balance of $3.2 million. Councillor Jake Smola inquired why the environmental assessment for the Shirley Avenue/Lackner Boulevard project is not included. Mr. Kovacs responded that it was his understanding funding was already allocated, but that he would verify this. Councillor Haalboom noted the number of significant development projects planned in the Lower Doon area which will have an impact on the community, most notably in the area of traffic. She questioned whether there are funds allocated for various impact studies, and Mr. Kovacs replied that this would require a re-prioritizing of the development charge project list before Council this date. Ms. Houston referred to difficulties in balancing the Capital Forecast for the first 3 years due to the elimination of Transit and the proposed soccer project in Budd Park. Ms. Houston noted that most of the Transit projects were listed near the end of the 10 year Forecast. Ms. Houston reviewed highlights of the Capital Budget and Forecast for the Centre In The Square. Mr. Jamie Grant and Ms. Marlene Batchelor appeared on behalf of the Centre In The Square. On motion by Councillor T. Galloway- it was resolved: "That the 2000 Capital Budget and Forecast for the Centre In The Square be approved as recommended." Ms. Houston reviewed the Capital Budget and Forecast for the Kitchener Public Library. Ms. Margaret Walshe and Mr. Norman Damaren appeared on behalf of the Kitchener Public Library Board. FINANCE & ADMINISTRATION COMMITTEE MINUTES NOVEMBER 19, 1999 - 158 - CITY OF KITCHENER Ms. Walshe circulated a document showing the libraries initial submission and the subsequent Administrative Review recommendation. It was noted that new items involved a book acquisition reserve fund and a feasibility study for a library headquarters. Mr. Damaren expressed concern over the changes to proposed by the Administrator Review Committee. He indicated that the Library was told they would receive an annual resource budget reserve fund contribution of $100,000.00 beginning in the year 2000 for the library collection, and that this was agreed to by Council in principle. In this regard, a copy of the Council resolution of August 30, 1999 was circulated. He noted that the Administrative Review Committee has eliminated the contribution in the first 2 years and reduced it to $80,000.00 in subsequent years. He asked that the $100,000.00 amount be re-instituted. Councillor T. Galloway expressed concern over the budget line for the new library headquarters, as it seems to suggest approval of the project and that modifications to the existing building will not be considered. Mr. Damaron clarified that the intent of the study is to determine and to anticipate future needs. Ms. Walshe spoke to the effect of flatlining the book acquisition budget since 1994 noting that in 1999 the budget was approximately $1,000,000.00, and had it kept pace with inflation and the U.S. dollar conversion it should have been approximately 1.1 to 1.5 million dollars, a difference of approximately 1,000 titles. Mayor Zehr inquired how the City's collection compares to other libraries and Ms. Walshe replied that it compares favorably. Mayor Zehr inquired as to the amount of seed money needed to create the acquisition reserve fund, and Ms. Walshe replied in order to recover costs approximately $70,000.00 would be needed. Moved by Councillor T. Galloway - "That the 2000 Capital Budget and Forecast for the Kitchener Public Library Board and be approved as recommended subject to the following changes: the contribution to the Resource Budget Reserve Fund be $80,000.00 per year in the years 2000 and 2001; and, $100,000.00 in the years 2002 - 2009 inclusive." Councillor Ziegler expressed his preference for reducing other areas of the Capital Budget/ Forecast to offset for this increased amount. He suggested that opportunities to increase the contribution to the reserve fund in 2000 and 2001 to the $100,000.00 initially requested could be considered later this date. Mayor Zehr wished to clarify that the reserve fund initiative does not involve the co-mingling of the collections of Kitchener and Waterloo. Councillor John Smola advised that he would not support any increase until an offsetting reduction has been identified. The motion by Councillor T. Galloway to adopt the Kitchener Library Board budget, as amended, was voted on and Carried. Ms. Houston then reviewed the highlights of the Capital Budget and Forecast for the Parks & Recreation Department. She advised that General Park and Major Park Developments have been reduced by $800,000.00 in the first 4 years in response to the need for additional funds for the Budd Park soccer facility. A joint report from R.W. Pritchard, D. Daly and R. Wyatt dated November 18, 1999 concerning the Kitchener Minor Soccer proposal, and a schedule showing the detail impact of $800,000.00 reduction, was circulated this date. Mr. Daly spoke to the report and expressed concern over the reductions, suggesting in his view most of these should take place in the area of Major Park Development, as reductions in the General Park provision would affect all areas of the City. He further noted that the major parks affected include the Peter Hallman Ball Yard and several river front access nodes. Councillor Lorentz suggested there is a need to re-evaluate the proposed Budd Park facility to determine whether this is the best and most appropriate way to deal with the need for additional soccer fields. Mr. Pritchard responded that there is no question as to the need for additional fields; however, he questioned whether the quality of fields proposed by Kitchener Minor Soccer is appropriate. He added that the proposed lease has not come before Council as these issues have not been resolved to the satisfaction of all parties. He further noted that Budd Automotive wishes to protect its options in terms of future use of these lands and is not in favour of granting 20 year access. He offered the opinion that Council may not have enough facts before it to approve the project at this time, noting that the purpose of the report is to demonstrate the impact if the political decision is made today to proceed with the Budd Park facility. Ms. Houston suggested that including the project in the forecast at this time does not constitute final approval FINANCE & ADMINISTRATION COMMITTEE MINUTES NOVEMBER 19, 1999 - 159 - CITY OF KITCHENER and suggested that another option would be to create a more generic budget line referencing soccer fields. Councillor Jake Smola questioned the possible use of school facilities in this regard. Mr. Daly replied that the City's Leisure Facilities Master Plan, which includes a relationship with the schools, is 10 years old and should be updated. He noted that a link to school sites may be possible, but there is uncertainty as to the future of these sites. Councillor Smola referred to two recently suplused school sites in the Westchester and Edenbridge areas, which if developed, would have contained several sports facilities. He suggested that Council should obtain a broad evaluation of City facilities, who accesses them, from where and the overall community impact. He noted that this should be done in concert with the review of the Leisure Facilities Master Plan. Councillor Ziegler advised that he does not support the Budd Park expansion in the year 2000, and suggested that it be moved further back in the Capital Forecast. Councillor J. Haalboom put forward a motion to remove the Budd Park allocation from the 2000 budget while retaining a line item in the year 2001. Her motion also requested that staff suggest an appropriate budget amount for "Soccer Facilities" in the years 2000 and 2001, with this information to be provided on or before Budget Day. Councillor Galloway inquired whether all of the general park and major park developments would be re-instated if the Budd Park project was removed at this time. Mr. Daly responded that approximately $500,000.00 of this amount was a reduction of the Block Line Facility. He suggested that as many as 4 field facilities could be completed with the City having to re-examine the additional 2 field expansion in light of City wide needs. Councillor John Smola offered the opinion that soccer fields are still required in the City, but perhaps elsewhere in the community. Councillor Galloway expressed his concern over the Budd Park project and his expectation that the lease involved would be longer and more clearly defined. He indicated he would not be supporting any reduction in any major park development or allocation, especially if the Peter Hallman Ball Yard could be only partially completed as a result. He asked for an update on what is proposed in this regard. Mr. Daly responded that staff had intended to complete the washrooms, for which current funds are available, and a sewer connection. Mr. O'Brien added that in the year 2000 a new lighting system was proposed, or alternately one other large project, and a picnic area. He identified a $600,000.00 allocation over the next 4 years, and a reduction in the major park development would result in the Peter Hallman Ball Yard budget being reduced by half and the City completing only those projects currently underway. Councillor Galloway advised that in his view all the projects in the general and major park budgets should be re- instated. He asked that staff provide an outline of the re-allocation on or before Budget Day. He also requested information on what is required to begin the central building at the Peter Hallman Ball Yard and a report and plan outlining the cost impact in the years 2000 and 2001. Councillor Lorentz also requested information on the fund raising strategy of Kitchener Minor Soccer. Councillor Jake Smola inquired as to how the need for a community pool is determined, and Mr. Beaudry replied that it is based on increased demand due to growth in the catchment area and the demographic profile as a reflection of need. He noted that in regard to the proposed Forest Heights Pool addition, registration is dropping off over past increases and there is also a change in the demographic profile of the area, which may suggest a change in priorities. He also noted that the Lyle Hallman Pool is currently at its maximum capacity with no possibility for increasing registrations at this site. Councillor Jake Smola requested a report on the usage and demand for each of the City's pools in order to determine how best to allocate capital dollars. He noted that the Lyle Hallman Pool is a major facility in his Ward and the surrounding area has the potential within the next 5 years of adding an additional 10,000 to 15,000 residential units. Mayor Zehr noted that funding for the Forest Heights Pool had been increased by $170,000.00 over last year's estimate and inquired as to the reason. Mr. Pritchard replied that staff had since determined that the increase is necessary to reflect inflationary costs. Mayor Zehr asked that this budget amount be re-evaluated. The Committee then voted on the earlier motion by Councillor J. Haalboom, and it was resolved: "That the Budd Park expansion be removed from the budget of the Arenas/Athletics/Design and Development Division in the year 2000 with the budget line alone being retained in the year 2001; and further, FINANCE & ADMINISTRATION COMMITTEE MINUTES NOVEMBER 19, 1999 - 160 - CITY OF KITCHENER That staff report on or before Budget Day, as to appropriate budget amounts for 'Soccer Facilities' in the years 2000, 2001 and beyond." On motion by Councillor T. Galloway- it was resolved: "That in view of the removal of funding for the Budd Park expansion, all funding for General Park and Major Park Development be re-instated; and further, That staff prepare a report outlining the costing and impact of constructing the main building at the Peter Hallman Ball Yard in 2000." Councillor G. Lorentz put forward a motion to move the Forest Heights Pool addition back to the year 2000, from 2002. Councillor Lorentz spoke in favour of constructing the Forest Heights Pool addition in the year 2000 based on infrastructure problems and demographic changes. A brief discussion took place as to whether it was feasible to begin this project in 2000 and staff were asked to verify the apportioning of funds in the years 2000 and 2001. Councillor Weylie requested additional information on the heat exchange and related problems and costs in isolation of other project components. Mr. Beaudry noted that this work could be completed outside of the pool expansion; however, the overall cost would be greater if the two projects were undertaken separately. Councillor Galloway indicated that he was in support of the motion, with a reduced allocation in the year 2000. The motion by Councillor G. Lorentz was then voted on, and it was resolved: "That the Aquatics Division Capital Budget and Forecast be amended so as to reallocate the Forest Heights Pool addition from 2002 to the year 2000." A report was requested on or before Budget Day, containing addition information on the proposed deletion of Victoria Park Upper Lake Bridge. Mayor C. Zehr asked that the minutes reflect that the item relative to Grand River Corridor Trails/Land may have to be moved up should Foundation funding be forthcoming sooner than expected. Mayor C. Zehr put forward a motion to adopt the Parks Operations Capital Budget and Forecast, as amended. Councillor T. Galloway referred to required expenditures in regard to the Huron Natural Area and asked that an additional $4,000,000.00 be added to the Capital Budget and Forecast, divided equally between the years 2000 and 2001 in the "other" category with funding to be determined. He acknowledged that this would not constitute project approval. Mayor Zehr accepted the suggestion of Councillor Galloway of as a friendly amendment. On motion by Councillor Jake Smola it was resolved: "That the Parks Capital Projects Budget, be amended to include an allocation under the 'other' category, funding to be determined, for the Walter Bean Trail in the amount of $100,000.00 in the year 2000 and $100,000.00 in 2001; and further, That staff prepare a report outlining the comprehensive costs for the Walter Bean Trail, including any funds which may currently be listed in other City budgets." The Committee then voted on the motion by Mayor Zehr, as amended to include the suggestion of Councillor Galloway, and it was resolved: "That the Capital Budget and Forecast of the Parks Operations Division be approved; and further, FINANCE & ADMINISTRATION COMMITTEE MINUTES NOVEMBER 19, 1999 - 161 - CITY OF KITCHENER That the above be subject to including, in the category of 'other' with funding to be determined, allocations in regard to the Huron Natural Area in the amounts of $2,000,000.00 in the year 2000 and $2,000,000.00 in 2001, all on the understanding that this does not constitute project approval." Councillor John Smola asked that he be recorded as opposed to the motions of both Councillor Jake Smola and Mayor Zehr, in part on the basis that corresponding budget reductions should be identified when new items are added. On motion by Councillor J. Haalboom - it was resolved: "That the Capital Budget and Forecast of the Culture & Special City Events Division be approved as recommended." On motion by Councillor G. Lorentz - it was resolved: "That the Capital Budget and Forecast of the Aquatics Division be approved as recommended and amended this date." Ms. Houston reviewed highlights of the Capital Budget and Forecast for the Seniors/Leisure Programs/Leisure Support Division, noting a proposed reduction in the 2000 allocation for the Rockway Senior Centre from $91,000.00 to $79,000.00. On motion by Councillor M. Yantzi- it was resolved: "That the Capital Budget and Forecast for the Seniors/Leisure Proqrams/Leisure Support Division be approved as recommended subject to reducing the year 2000 allocation for the Rockway Senior Centre from $91,000.00 to $79,000.00." Ms Houston reviewed the Capital Budget and Forecast for the Community Development Division. Councillor Galloway asked for clarification concerning the Centreville Chicopee Community Centre renovations. Mr. Weber responded that there is no impact on the funds available for the project; however, it has been delayed by 1 year with the $80,000.00 amount being divided equally between the year 2001 and 2002. On motion by Councillor K. Taylor-Harrison - it was resolved: "That the Capital Budget and Forecast for the Community Development Division be approved as recommended." On motion by Mayor C. Zehr- it was resolved: "That the Capital Budget and Forecast for the Kitchener Farmer's Market be approved as recommended." On motion by Councillor G. Lorentz- it was resolved: "That the Capital Budget and Forecast for the Kitchener Auditorium be approved as recommended." On motion by Councillor G. Lorentz- it was resolved: "That the Capital Budget and Forecast for the Athletics Section be approved, as amended to remove the funding amount for the Budd Park expansion project." FINANCE & ADMINISTRATION COMMITTEE MINUTES NOVEMBER 19, 1999 - 162 - CITY OF KITCHENER Mayor Zehr questioned the allocation in the Arena's budget in 2006 and 2007 the dressing room additions. Mr. Pritchard replied that this item relates to the Queensmount Arena, and word is expected this date as to whether the Lions Club wishes to proceed. Mayor Zehr suggested that Council should have, for Budget Day, a plan relative to these budget items. Councillor Jake Smola asked that the previous staff report in respect to the proposed new community arena and twin pads be re-circulated to all members of Council. Councillor Haalboom asked that in conjunction with the previously requested report on community pools, staff also advise of the impact if a portion of the money allocated to the community arena/twin pad were directed to community pools. On motion by Councillor T. Galloway- it was resolved: "That 2000 Capital Budget and Forecast for the Arenas Section be approved as recommended." On motion by Councillor Jake Smola - it was resolved: "That the 2000 Capital Budget and Forecast for the Desi,qn and Development Section be approved as recommended; and further, That staff report on or before Budget Day as to whether the bikeways study is to be implemented and to provide a list of bikeway expenditures to date and an indication as to the impact if this item is moved in the Forecast." On motion by Councillor T. Galloway- it was resolved: "That the 2000 Capital Budget and Forecast for the Cemeteries Division be approved as recommended." Ms. Houston reviewed highlights of the Capital Budget and Forecast for the Golf Course Enterprises. She noted that staff felt the additional computer upgrades could be funded from golf course revenues. Mr. Kett advised that funding is required to replace non-integrated software and existing hardware which is both insufficiently sized and is not Y2K compliant. It was generally agreed in regard to the Doon Valley Golf Club expansion that staff would provide a report of how the increased traffic volumes due to expansion would be dealt with. On motion by Councillor G. Lorentz- it was resolved: "That the 2000 Capital Budget and Forecast for the Doon Valley and Rockway Golf Courses Enterprises be approved, subject to the addition in 2000 of $43,000.00 for the Doon Valley Golf Club and $52,000.00 for the Rockway Golf Club in respect to computer upgrades." Ms. Houston reviewed highlights of the 2000 Capital Budget and Forecast of the Corporate Services and City Clerk's Department. On motion by Councillor Jake Smola - it was resolved: "That the 2000 Capital Budget and Forecast for the City Clerk's Division be approved as recommended." On motion by Councillor T. Galloway - it was resolved: "That the 2000 Capital Budget and Forecast for the Facilities Manaqement Division be approved as recommended." NOVEMBER 19, 1999 FINANCE & ADMINISTRATION COMMITTEE MINUTES - 163 - CITY OF KITCHENER Carried. On motion by Councillor T. Galloway- it was resolved: "That the 2000 Capital Budget and Forecast for the Fleet Division be approved, as recommended." On motion by Councillor G. Lorentz- it was resolved: "That the 2000 Capital Budget and Forecast for the Human Resources Division be approved, as recommended." The meeting then recessed at 12:25 p.m. and reconvened at 1:00 p.m. with all members present except Mayor C. Zehr and Councillor B. Vrbanovic. Ms. Houston reviewed highlights of the 2000 Capital Budget and Forecast for the Fire Department. Councillor Ziegler asked that the projected replacement schedule for Fire Department vehicles be circulated to members of council. Councillor Jake Smola questioned if it would be appropriate to implement smaller, 2 or 3 person vehicles to respond to medical calls with the fire apparatus following. Chief Hancock advised there may be an opportunity when discussions take place as to whether the Fire Department will manage emergency medical services. On motion by Councillor G. Lorentz- it was resolved: "That the 2000 Capital Budget and Forecast for the Fire Department be approved, as recommended." Ms. Houston advised that staff would like to re-examine the allocation in the year 2000 for Fire Station #3 prior to Budget Day as funding may be insufficient. Ms. Houston reviewed the 2000 Capital Budget and Forecast for the Public Works Department. On motion by Councillor John Smola - it was resolved: "That the 2000 Capital Budget and Forecast for the Water Utility be approved, as recommended." The Committee then reviewed the Budget and Forecast for the Gas Utility. Councillor G. Lorentz questioned whether discussions have been taken place with the Region concerning conversion of the entire Transit fleet to natural gas, Mr. Kovacs advised that no longer term plans have been discussed to date. Councillor Lorentz suggested that this matter should be pursued, and Councillor John Smola advised that this should be discussed at Regional Council on December 8, in light of the City's Environmental Policy. Councillor Jake Smola suggested the Region should commit, for a period of time, to purchasing natural gas from Kitchener. Mr. Quinn indicated that at present Kitchener Utilities is the lowest price provider in the area. Councillor Galloway inquired into the cost/benefit of the City retaining the natural gas refilling station or whether it should be sold if there is no net profit involved. Mr. Gazzola advised that staff are investigating this at the present, and Mr. Kovacs noted that his personal preference would be that the facility be sold to the Region. On motion by Councillor T. Galloway- it was resolved: "That the 2000 Capital Budget and Forecast for the Gas Utility be approved, as recommended." FINANCE & ADMINISTRATION COMMITTEE MINUTES NOVEMBER 19, 1999 - 164 - CITY OF KITCHENER A question was raised as to the pilot for a Global Positioning System (GPS), and Councillor John Smola questioned why the City would undertake pilot as Project Lift already has one underway. Mr. Kovacs indicated that staff are attempting to conduct the pilot in collaboration with other agencies in order to share the results of the study. Councillor Jake Smola pointed out that it was his understanding the Regional Police, City taxi's and transport companies are already using GPS technology and their experience many reduce the need for a study. Mr. Kovacs agreed to look into the matter further. On motion by Councillor John Smola - it was resolved: "That the 2000 Capital Budget and Forecast of the Capital Projects Division Administration and Miscellaneous be approved, as recommended." Councillor J. Ziegler disclosed a pecuniary interest and abstained from all voting and discussion concerning the King Street/Fairway to River Road project in the City Share Regional Roads budget as he owns property on King Street East which would be affected. Councillor T. Galloway then assumed the Chair. On motion by Councillor Jake Smola - it was resolved: "That the 2000 Capital Budget and Forecast of the Capital Projects Division - City Share Re,qional Roads be approved, as recommended." Councillor J. Ziegler assumed the Chair. The Committee then reviewed the Capital Budget and Forecast for Sanitary Sewers. A discussion took place concerning the proposed Victoria Street North sewage facility and Mr. Mansell clarified that this is being built solely as a Kitchener project and that if Wilmot Township participates contibutions will be adjusted accordingly. Councillor Jake Smola suggested it may be to the City's advantage to allow this project to be development driven as the current septic systems have been in adequate for over 20 years. Mr. Mansell commented that the facility would open up significant amounts of land for industrial development and Councillor Jake Smola inquired as to the commitment from the owners of the industrial land in the area. Mr. Mansell stated that it is first necessary to determine whether the system can be installed, and to date there has been a verbal commitment from developers. Councillor T. Galloway questioned whether the City could implement a differential sewer surcharge with a special charge for those utilizing the facility. Ms. Houston indicated that this would involve a legal question and that staff can investigate. Councillor Galloway noted that at present individuals that have purchased land on the basis they would be required to purchases septic systems, and construction of the City facility would save the purchasers money in this regard. Mr. Kovacs noted that surcharges pay for water treatment and infrastructure costs and he would like the opportunity to continue this dialogue with developers. He cautioned in regard to a variable sewer surcharge rate, and Councillor Galloway suggested that there could be a connection charge. On motion by Councillor T. Galloway- it was resolved: "That the 2000 Capital Budget and Forecast for the Capital Projects Division - Sanitary Sewers be approved as recommended." Councillor Lorentz noted that there was no funding in the budget for the Sandrock Greenway, and indicated that after the meeting with residents it would appear more than minor stabilization is required. He indicated that he would bring back an appropriate amount for consideration on Budget Day. On motion by Councillor T. Galloway- it was resolved: FINANCE & ADMINISTRATION COMMITTEE MINUTES NOVEMBER 19, 1999 - 165 - CITY OF KITCHENER "That the 2000 Capital Budget and Forecast for the Capital Projects Division - Storm Drain and Creek Improvement be approved as recommended." Ms. Houston reviewed highlights of the Street Improvements portion of the Capital Budget and Forecast, noting that the GaukeI-King to Joseph project has been divided into 2 parts and a portion moved back in the Forecast. Mr. Kovacs noted that in regard to concerns raised by Council in previous years, overall project funding has been increased, but not in the amount requested by staff to address all projects. In response to concerns raised by Councillor Haalboom, Mr. Mansell advised that phases 3 and beyond of the Wyldwoods Subdivision cannot proceed without construction of the Doon Village Road diversion. He indicated that Monarch was not prepared to front end fund and as a result it has been moved to 2005 on the Forecast. Mr. Mansell assured Council that he would report on the status as the Monarch development progresses. Councillor Haalboom questioned what guarantee the City has that the subdivision will not be developed without the diversion and Mr. Mansell replied that the subdivision agreement restricts development to stages 1 and 2 alone prior to construction of the diversion. He also stressed the need for the Doon Village Road diversion to remain a flexible project, and that if necessary, the development will have to be delayed pending municipal funding approval. The only alternative would be for Monarch to indicate an interest in paying a portion of the up front costs to accelerate the project. On motion by Councillor T. Galloway- it was resolved: "That the 2000 Capital Budget and Forecast of the Capital Projects Division - Street Improvements be approved as recommended." On motion by Councillor John Smola - it was resolved: "That the 2000 Capital Budget and Forecast of the Capital Projects Division - Street Li,qhtin,q be approved as recommended." Mayor C. Zehr entered the meeting. Councillor Jake Smola asked that Finance staff provide, in future, a list of all approved Capital projects which were funded in prior years and which are being carried forward in subsequent years in whole or in part. On motion by Councillor K. Taylor-Harrison - it was resolved: "That the 2000 Capital Budget and Forecast of the Parkinq & Traffic Divisions be approved as recommended." Ms. Houston reviewed highlights of the 2000 Capital Budget and Forecast for the Business & Plannin,q Services Department, noting that staff are recommending an $8,000.00 reduction in the allocation for Visioning & Community Development. On motion by Councillor G. Lorentz- it was resolved: "That the 2000 Capital Budget and Forecast for the Business & Planninq Services Department be approved as amended to decrease the allocation for Visioning & Community Development in the year 2000 from $98,000.00 to $90,000.00." Ms. Houston outlined highlights of the 2000 Capital Budget and Forecast for the Finance Department. The Committee was also in receipt this date of an outline for the Waterloo Regional Education Community Network which is a high-speed, fibre optic, wide area network involving public partners in Waterloo Region. FINANCE & ADMINISTRATION COMMITTEE MINUTES NOVEMBER 19, 1999 - 166 - CITY OF KITCHENER Mr. Gazzola also pointed out that the City is funding the Library portion of the project and is on the short list for a $5,000,000.00 Smart Community grant from the Province. Mr. Gazzola explained that there are 3 major components to the project, the laying of the fibre itself, connections to the work location, and connections within the work location. The City is responsible for the various connections plus its share of the fibre based on the number of locations connected. Mayor Zehr questioned the ongoing allocations in the Forecast for this item. Mr. Grummett explained that these are monthly maintenance charges for the total compliment of 13 City sites and 4 library sites. Councillor Ziegler questioned whether this item should be listed as an operating expense, and Mr. Gazzola advised that it is staff's practice to treat such items as capital projects in the first year they are introduced. Councillor Ziegler also questioned the need for fibre optic connections to City facilities, although he can possibly understand the connection of the Fire Halls. Mr. Grummett responded that the fibre system would provide a better linkage to remote City sites and allow these sites the same service and response time as is available at City Hall. Councillor Ziegler questioned both the value and the need for the project. Mr. Gazzola advised that the City needs this technology to process information at the speed expected in this day and age, especially since the existing service links to outlying facilities are extremely slow. He added that if speed can be improved the City can run all of its main services from City Hall and this would eliminate the need for separate servers at each remote site. Councillor Ziegler indicated that he would like to see a report and breakdown of the cost per building, and Mr. Gazzola advised that a report will be available for consideration at the Committee level. Mayor Zehr stressed that this is a comprehensive plan involving more than the City of Kitchener, which accounts for a very small percentage of the overall network. On motion by Councillor C. Weylie - it was resolved: "That the 2000 Capital Budget and Forecast for the Finance Department be approved as recommended." Ms. Houston then reviewed the 2000 Capital Budget and Forecast for General Expenses, noting that Community Loans funding includes Budd Park. Councillor Ziegler asked that the Community Loan component be considered as part of the previously requested comprehensive staff report on the proposed soccer facility in Budd Park. Ms. Houston advised that the budget reflects a write-off of the unfunded portion of Business Parks net of the value of lands which are yet to be sold. Councillor Galloway noted that the City has an option to make an adjustment in this area to offset additional expenditures recommended this date. Councillor G. Lorentz put forward a motion to adopt the 2000 Capital Budget and Forecast in respect to General Expenses. On motion by Mayor C. Zehr- it was resolved: "That the 2000 General Expenses budget be amended to include a budget line entitled 'Downtown Development Projects' with a $20,000,000,00 allocation in the year 2000, funding under the 'other' category, with no impact on the tax levy and the source to be determined." Councillor John Smola asked to be recorded as opposed to the motion of Mayor C. Zehr as no corresponding reduction has been identified to offset the proposed increase in capital funding. The Committee then voted on the main motion by Councillor G. Lorentz, as amended, and it was resolved: "That the 2000 Capital Budget and Forecast for General Expenses be approved, as amended this date in respect to a $20,000,000.00 allocation for Downtown Development Projects." Councillor Weylie indicated a willingness to forward a motion to increase the contribution to the Kitchener Public Library's Resource Budget Reserve Fund by an additional $20,000.00 in the NOVEMBER 19, 1999 FINANCE & ADMINISTRATION COMMITTEE MINUTES - 167 - CITY OF KITCHENER years 2000 and 2001. Mayor Zehr requested, and it was generally agreed, to defer consideration of any funding increases at this time and refer same to Budget Day. On motion, the meeting adjourned at 2:45 p.m. G. Sosnoski Deputy City Clerk