Loading...
HomeMy WebLinkAboutFinance & Admin - 1999-12-15FAC\1999-12-15 FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 15, 1999 CITY OF KITCHENER The Finance & Administration Committee met this date in special session commencing at 9:15 a.m. and Chaired by Council J. Ziegler with the following members present: Mayor C. Zehr, Councillors John Smola, J. Haalboom, C. Weylie, T. Galloway, B. Vrbanovic, K. Taylor-Harrison, G. Lorentz and M. Yantzi. Councillor Jake Smola was in attendance for part of the meeting. Others Present: Ms. P. Houston, Ms. G. Luciantonio, Ms. D. George, Ms. B. Baker, Ms. F. Currier, Ms. L. Banford, Ms. B. Aikenhead and Messrs. J. Gazzola, J. Hancock, B. Kuntz, J. Shivas, R.W. Pritchard, D. Paterson, L. Proulx, C. Pomeroy, B. Musselman, E. Kovacs, D. Quinn, S. Gyorffy, J. McBride, B. Stanley, G. Borovilos, J. Witmer, P. Sinnott, L. Gordon, M. Grummett, R. Wyatt, D. Daly, M. Price, P. Beaudry, K. Baulk, R. Weber, G. Kett and G. Sosnoski. The purpose of this special meeting was to review the year 2000 Operating Budget as recommended by the Administrative Review Committee. 1. 2000 OPERATING BUDGET Ms. Houston provided an overview of the Operating Budget as submitted by the Administrative Review Committee, noting that original department estimates resulted in a 3.98% increase, which was reduced by the Committee to 1.17%. She advised that when budget implications relative to the transfer of transit services and solid waste collection to the Region are factored in there is a net decrease in the City of Kitchener levy of 18.44%. Ms. Houston advised that for budget purposes, a 1% growth and assessment has been used, and the exact figure will be available on Budget Day. Ms. Houston advised that when considering the Regional, Education and City levy the projected increase for residential properties would be 1.86% and 1.21% for commercial properties. Ms. Houston then reviewed expenditures and revenues and presented an analysis of change in the levy. It was noted that the transfer of transit and solid waste services reduces the City budget by approximately $13,955,000. Ms. Houston reviewed the highlights of the 2000 Operating Budget for Centre In The Square noting a 1.4% increase. Mr. Jamie Grant and Ms. Marlene Batchelor appeared on behalf of the Centre. On motion by Councillor B. Vrbanovic- it was resolved: "That the 2000 Operating Budget for the Centre In The Square be approved, as recommended by the Administrative Review Committee." Ms. Houston reviewed the Operating Budget for the Kitchener Public Library, noting that the Administrative Review Committee had requested an expenditure decrease of $250,000 in order to reduce the imposed increase to 2.6%. Ms. Margaret Walshe, Mr. Norman Damaren, Ms. Sabina Franzen appeared on behalf of the Library. Mr. Demaren advised that the Library and requested consideration of this Administrative Review. He stated that part to fund the $126,000 reserve in System (OMERS) contribution holiday. Board had originally asked for a funding increase of 7%, amount rather than the 2.6% recommended by the approximately $395,000 in additional funding is needed in relation to the Ontario Municipal Employees Retirement Councillor Vrbanovic inquired why the OMERS contribution was taken out of budget reserve, and Ms. Houston noted that the amount was used by the Library in 1999 to reduce its Operating Budget, and that now they are requesting that these funds be re-instituted as they will be required when the contribution holiday expires. Councillor Yantzi inquired as to possible areas of budget reduction, and Mr. Damaren speculated that reductions would likely take place in staffing and hours of operation. Ms. Walshe clarified that the library has no ability to increase revenues due to legislative constraints and that Provincial grant funding has been flatlined at $285,000. She stated that the only two areas where budget reductions could occur would be staffing and FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 15, 1999 - 198 - CITY OF KITCHENER 1. 2000 OPERATING BUDGET (CONT'D) collections. Councillor Ziegler pointed out that the Library has in fact created a budget problem by transferring the OMERS reserve monies into its Operating Budget. Ms. Walshe responded that the Library did not know at the time whether the OMERS contribution holiday would be extended. Mayor Zehr expressed concern as to how any City funds contributed to the Library's OMERS reserve would be used and what controls would be in place. Councillor Galloway inquired as to how the Centre In The Square has treated the funds from the OMERS contribution holiday. Ms. Houston advised that she would determine this and report. Councillor B. Vrbanovic put forward a motion to grant an increase of 5% over the 1999 Kitchener Public Library Operating Budget, with the amount allocated to OMERS to be kept in reserve, and with City staff reviewing with the Library the policy in regard to use of OMERS funds as well as reviewing the Library's salary budget. The motion also requested a report, by Budget Day, outlining the reductions necessary to meet the 5% target. Councillor Lorentz indicated that he could not support the motion due to the need to preserve an effective library system by keeping collections accessible and current. Councillor Haalboom similarly argued that the level of service should be preserved as a recent citizen survey showed that the Library ranked first in the importance of City services to residents. Councillor John Smola voiced his preference that the Library's OMERS savings be deposited in the City's Tax Stabilization Reserve Fund. Mayor Zehr noted that the assumption is usually made that any cuts in the Library budget automatically result in a reduction in the hours of operation, and suggested that savings may be obtained through delays in the filling of vacant positions. He stressed that OMERS funds should not be used to finance any budget reduction and should not be included as part of the Library's Operating Budget. He indicated his support for the motion and suggested that the Library report, by Budget Day, in regard to realistic budget reductions. Mayor Zehr noted that the net effect on the Library is still a budget increase over 1999. Councillor Galloway indicated that he is not inclined to support the Library's entire budget request, noting that funding in Kitchener is currently well above the national and area levels. He voiced his preference that OMERS funds should be deposited in a Tax Stabilization Reserve Fund. The motion by Councillor B. Vrbanovic recommending a 5% conditional increase in the library budget was voted on and was Lost. On motion by Councillor John Smola - it was resolved: "That the 2000 Operating Budget for the Kitchener Public Library be approved as submitted and without the $250,000 reduction recommended by the Administrative Review Committee; and further, That the $126,000 amount in respect to OMERS contribution savings be divided between the City's Tax Stabilization and Sick Leave Reserve Funds consistent with existing policy." Ms. Houston reviewed highlights of the Operating Budget of the Fire Department noting that 2% has been budgeted for wages in 1999 and 2000 as the outcome of arbitration is not known at this time. She advised that the budget is increasing by 2.6%. On motion by Mayor C. Zehr- it was resolved: "That the 2000 Operating Budget for the Fire Department be adopted, as recommended." Ms. Houston reviewed the Operating Budget for the Le,qal Department noting a 6.4% increase. She added that the amount of the increase net of the loss of internal recoveries relating to Transit would be 2.8%. FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 15, 1999 - 199 - CITY OF KITCHENER 1. 2000 OPERATING BUDGET (CONT'D) On motion by Councillor M. Yantzi- it was resolved: "That the 2000 Operating Budget for the Le,qal Department be approved, as recommended." Ms. Houston reviewed the Operating Budget for the Corporate Services & City Clerk's Department noting an overall 9.5% increase. She reviewed highlights of the City Clerk's Division budget noting an increase of 8.5%. On motion by Councillor G. Lorentz- it was resolved: "That the 2000 Operating Budget for the City Clerk's Division be approved, as recommended." A discussion took place concerning the staff implications of the transfer of transit services to the Region of Waterloo where only a portion of time was devoted to transit support. Councillor Galloway indicated that it was his understanding the municipality was to be compensated by the Region on a one year basis to allow time to deal with these full time equivalents. Mayor Zehr noted that the City would in effect be charged twice in this regard as this cost will also form part of the area rate. Mayor Zehr confirmed that the cost of the 7.5 full time equivalent positions is not being paid back to the City in any form. Councillor Galloway indicated his preference that this occur outside of the area rating. Ms. Houston stated that staff assumed the Region could absorb a small portion of the support staff requirement without increasing its compliment. Ms. Houston reviewed highlights of the Facilities Manaqement and Human Resources Divisions budgets noting increases of 7.9% and 14.5% respectively. It was noted that the increase in the latter is in part due to the impact of the transfer of transit services. Mayor Zehr questioned whether there were any opportunities for staff reductions in the area of Human Resources should there be vacancies, and Mr. Paterson replied that opportunities in this regard will be limited. Mr. Pritchard noted that two new positions will be required in regard to the City's performance appraisal system and its supervisory training program, and that any restructuring would be used to offset these positions. Mayor Zehr noted that the Human Resources budget should reflect a reduction of three full time equivalents and that staff should suggest ways to accommodate this. Mayor Zehr indicated that he was prepared to move approval of the Human Resources Division budget subject to staff investigating how the reduced workload due to the transfer of Transit services could result in a reduction in full time equivalents. Mr. Gazzola advised that he is aware of the dilemma with respect to Transit support staff; however, 1 to 2 years are needed before the City can address this in its entirety. He pointed out that he reviews every vacancy in the Corporation and re-organizational possibilities are considered. He also noted that there are often deliberate delays in filling positions (otherwise referred to as "gapping") in order to save money. He indicated that he is willing to increase his gapping target in order to offset the cost, while looking for increased efficiencies in the near term. He suggested that the current gapping target be increased by $200,000. Councillor Ziegler offered the opinion that 2 years to resolve this problem is too long. Councillor Galloway stated that he was comfortable with what Mr. Gazzola is proposing. He suggested that tracking of compensation for the 5 ½ full time equivalent position should be separate from other gapping initiatives, with a report every 6 months. He advised that this would assist the City in quantifying any claim for transition funding. Councillor John Smola noted that this type of issue results from trying to implement the transit transfer too quickly without being aware of all costs and without agreement on a compensation plan. On the issue of transit transition funding, Councillor Vrbanovic suggested that a resolution directing staff to pursue transition funding is required, and Mayor Zehr agreed that such a resolution should be passed no later that January 14. Councillor Galloway indicated that he would discuss transit transition funding at the Region level. FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 15, 1999 - 200 - CITY OF KITCHENER 1. 2000 OPERATING BUDGET (CONT'D) On motion by Mayor C. Zehr- it was resolved: "That a corporate budget reduction of $200,000 be implemented in the year 2000, and an additional $50,000 in 2001, to offset the cost impact of retaining full time equivalent staff positions which currently provide limited support to the transit operation; and further, That a report on progress in this regard be submitted for consideration every 6 months." On motion by Councillor B. Vrbanovic- it was resolved: "That the 2000 Operating Budgets for the Facilities Manaqement and Human Resources Division's be approved, as recommended." Councillor Jake Smola noted that last year he requested a review of a possible integration of the roles of Facilities Management and Parks and Recreation in maintaining buildings operating by the latter. Mr. Gazzola suggested that consideration of this be deferred to January 13 when discussions would take place with the consultant recommending on re-organization of the Parks and Recreation Department. Ms. Houston reviewed the Operating Budget for the Fleet Division noting that the 1.1% increase in expenditures is offset by a corresponding amount of revenue charged back from the operating departments. On motion by Councillor M. Yantzi- it was resolved: "That the 2000 Operating Budget for the Fleet Division be approved, as recommended." Ms. Houston reviewed highlights of the Operating Budget for the Public Works Department noting an overall 51.2% reduction and a 1.8% increase net of any changes due to transfer of the transit operation to the Region of Waterloo. It was noted that none of the Budgets before the Committee this date include any salary adjustments arising from the recently approved report of McCrimmon & Associates. Ms. Houston reviewed the Operating Budget for the Public Works - Administration Section, noting an overall increase of 8.9%. On motion by Councillor B. Vrbanovic- it was resolved: "That the 2000 Operating Budget for Public Works - Administration be approved, as recommended." Ms. Houston reviewed highlights of the Operating Budget for the Operations Division noting a reduction of 47.9% largely due to transfer of responsibility for solid waste to the Region of Waterloo. Councillor Vrbanovic questioned the $30,000 reduction relative to elimination of the high powered washing of Downtown streets. It was noted that power washing continues to be done by staff; however, this amount relates to contracted removal of difficult substances such as gum. Councillor Vrbanovic requested a staff report on or before Budget Day outlining options for reductions in other areas of the Operations Division budget which will offset and allow for contracted high power washing. FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 15, 1999 - 201 - CITY OF KITCHENER 1. 2000 OPERATING BUDGET (CONT'D) On motion by Councillor B. Vrbanovic- it was resolved: "That the 2000 Operating Budget for Public Works - Operations be approved, as recommended." Mr. Kovacs noted that staff have always assumed that bagged leaf pickup would be taken over by the Region along with aspects of solid waste disposal. He noted that discussions in this regard are underway with the Region; however, if this service is not transferred, an additional unbudgeted cost would be involved. Ms. Houston reviewed highlights of the Operating Budget for Street Li,qhtin,q, noting a decrease of 4.6%. On motion by Councillor T. Galloway- it was resolved: "That the 2000 Operating Budget for Street Liqhtin,q be approved, as recommended." Ms. Houston reviewed highlights of the Traffic Section budget noting a 2.4% increase. She added that this budget includes a 12.5% reduction in the Director salary to reflect transfer of transit services to the Region. A similar reduction appears in the Parking Section budget and staff are anticipating some form of re-organization. Ms. Houston advised that $20,000 in funds for co-op students are included in the Traffic budget, this amount being approved in 1999 and referred to the year 2000 budget review for discussion. Councillor Vrbanovic requested a report on future plans for re-organization within the Transportation Division given the transfer of Transit. On motion by Councillor C. Weylie - it was resolved: "That the 2000 Operating Budget for the Traffic Section be approved, as recommended." Ms. Houston reviewed highlights of the Parkin,q Section budget noting increased revenue for the enterprise of 91.8%. Councillor Lorentz asked that staff investigate means of increasing recognition that the Trail Bike Program is funded by the City and not the Waterloo Regional Police Services. On motion by Mayor C. Zehr- it was resolved: "That the 2000 Operating Budget for the Parkin,q Section be approved, as recommended." Ms. Houston then reviewed the 2000 Budgets and the Five Year Projections for the Gas Utility, Water Utility and Sewer Surchar,qe. It was noted that the Gas Utility budget is decreasing by 68.3%, largely due to increased gas sales. Ms. Houston noted that there is a major change in the accounting structure for the gas utility due to deregulation, and added that by the year 2000 the City is targeting $4.4 million in revenue. Mr. Quinn noted that next year there will be provision for two categories of gas statements, one relating to supply, which will have no impact on margin, the other for distribution, where there is an opportunity to decrease costs and thereby increase margin. Mr. Quinn noted that he believes margins will increase over the budgeted amount, and will advise in this regard when there is more certainty. Councillor Lorentz suggested that staff investigate the feasibility of blending gas and hydro billing as well as meter reading. Ms. Houston responded that given deregulation it is premature at this time; however, staff plan to investigate this in future. Councillor Vrbanovic inquired as to the feasibility of automated meter reading technology for new installations. Mr. Kovacs advised that FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 15, 1999 - 202 - CITY OF KITCHENER 1. 2000 OPERATING BUDGET (CONT'D) staff are continuing to monitor this technology, and a further cost/benefit analysis is required to ensure that currently available technology will meet future needs. On motion by Councillor K. Taylor-Harrison - it was resolved: "That the 2000 Operating Budget for the Gas Utility be approved, as recommended." Ms. Houston noted a 3.8% increase in the Water Utility budget, noting that there is no proposed increase in retail rates, as the Region's wholesale rate has remained the same. Councillor Galloway requested a comparison study of retail water rates in Kitchener as compared to other area municipalities. Ms. Houston advised that Kitchener is approximately 3 to 4% lower. Ms. Houston noted that in regard to the sewer surcharge staff are proposing a decrease in the rate effective March 1, 2000 to 72% of the retail water rate, down from 75%. She noted that in the year 2001 and beyond, it is expected rates will be reduced further. Councillor John Smola stated his preference of a policy to retain the sewer rate at the existing level, with the additional funds being directed to street improvements in older areas of the City. Ms. Houston noted that remaining at 75% would result in an additional $500,000 in revenue. She added that if Council had an interest in staying at the current level it could increase the dividend and increase the allocation to the capital program. Councillor Galloway noted that the Region has reduced its sewer rate over the past 3 years and this would be the first year that Kitchener would pass this reduction on to ratepayers. He noted that in his recollection Kitchener is the only municipality that has not done so to date, though it does have the lowest water and sewer surcharge rates of any area municipalities. Councillor John Smola put forward a motion to retain the sewer surcharge at the current rate of 75% of the retail water rate, with the approximately $500,000 in revenue being redirected toward street repairs; particularly, replacement of sewer infrastructure. Councillor Lorentz had indicated that he would not support the motion, as in his opinion the savings should be passed along to the ratepayers. He noted that staff, through the Capital Budget & Forecast, have already allocated funds to repair of older streets and infrastructure, particularly in the Downtown. Councillor Vrbanovic noted that ratepayers would indirectly benefit from repairing more of the older infrastructure now as this could be done at a cost lower than in future. Councillor Vrbanovic requested a staff report, on or before Budget Day, outlining the cost per household in Kitchener as compared to other area municipalities for each of the following: property taxes; sewer; water; hydro; and, gas. Councillor Jake Smola asked that the report also include comparative references to cable television and telephone services. Councillor Galloway expressed concern that none of the approximately 14% of sewer surcharge reductions have been passed along to ratepayers to date. He indicated that he would support a sewer rate in the area of 73 - 74% of the retail water rate. Councillor John Smola accepted, as a friendly amendment, a suggestion from Councillor Ziegler, that staff report on Budget Day as to how sewer surcharge revenue can be diverted to capital works. Mayor Zehr suggested that leaving the sewer surcharge at its current rate amounts to an indirect form of tax increase since the City's costs in this area have been reduced and no reduction has been passed along to taxpayers in the past 2 years. He indicated his preference for adjusting the Capital Budget should additional infrastructure replacement be required. FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 15, 1999 - 203 - CITY OF KITCHENER 1. 2000 OPERATING BUDGET (CONT'D) On motion by Councillor John Smola - it was resolved: "That the 2000 Sewer Surchar,qe remain at the current rate of 75% of the retail water rate, with staff to report, on or before Budget Day, as to how excess Sewer Surcharge revenue could be diverted to capital works." On motion by Councillor B. Vrbanovic- it was resolved: "That the 2000 Operating Budget for the Water Utility be approved, as recommended." On motion by Councillor B. Vrbanovic- it was resolved: "That the 2000 Operating Budget for the Sewer Surchar,qe be approved, as recommended and amended this date in respect to calculation of the sewer surcharge rate." The meeting then recessed at 1:05 p.m. and reconvened at 1:45 p.m. with all members present except Councillor Jake Smola. Ms. Houston reviewed highlights of the Business & Planning Services Department report noting a 3% increase. She further noted that the budget does not include a $19,000 amount for a maintenance contract in respect to the building permit system. On motion by Councillor C. Weylie - it was resolved: "That the 2000 Operating Budget for the Business & Planninq Services Department, be amended to add an amount of $19,000 relative to a maintenance contract for the building permit system." On motion by Councillor C. Weylie - it was resolved: "That the 2000 Operating Budget for the Business & Planninq Services Department be approved, as recommended and amended this date to include provision for a maintenance contract." Ms. Houston reviewed highlights of the Operating Budget for the Finance Department, noting a 16.4% increase. Councillor Ziegler noted that this is one area where staff could be consolidated as a result of the shifting of transit services to the Region. On motion by Councillor T. Galloway- it was resolved: "That the 2000 Operating Budget for the Finance Department be approved, as recommended." Ms. Houston reviewed the Operating Budget for the K-W and North Waterloo Human Society and K-W Tourism, noting no increase in either budget. In response to a question, Mr. Sinnott advised that a $40,000 holdback from the K-W Tourism budget in 1999 to ensure sufficient promotion of the City of Kitchener would not be required in the year 2000. He further noted that production of a City of Kitchener lure brochure is presently underway, with this initiative undertaken in conjunction with other municipal partners. FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 15, 1999 - 204 - CITY OF KITCHENER 1. 2000 OPERATING BUDGET (CONT'D) On motion by Councillor C. Weylie - it was resolved: "That the 2000 municipal appropriations for contractual services for the Kitchener-Waterloo and North Waterloo Human Society and K-W Tourism be approved, as recommended." Ms. Houston reviewed highlights of the Chief Administrative Officer's Department budget noting an 86.9% increase in large part due to reallocation of marketing staff from other departments. She noted that the budget does not include amounts for various projects outlined in a memorandum from P. Sinnott dated December 15, 1999 and circulated this date. A brief discussion took place concerning the individual initiatives, as follows: customer satisfaction survey ($20,000); film promotion ($10,000); citizens' report ($10,000); citizens' guide to programs and services ($8,000); Kitchener promotional video ($5,000); and, Ward reports ($2,000). On motion by Councillor B. Vrbanovic- it was resolved: "That the proposed expenditures outlined in the memorandum of P. Sinnott dated December 15, 1999 be referred to Budget Day for consideration in conjunction with additional information on each of the items, any options for partnerships and revenue generation, and the cost per page of the current Leisure Magazine." On motion by Councillor M. Yantzi- it was resolved: "That the 2000 Operating Budget for the Chief Administrative Officer's Department be approved, as recommended." Ms. Houston reviewed highlights of the Operating Budget of the Parks and Recreation Department, noting an overall increase of 4.3%. She then reviewed the budget for the Administration Section, noting a .5% increase. On motion by Mayor C. Zehr- it was resolved: "That the 2000 Operating Budget for the Parks Administration Section be approved, as recommended." Ms. Houston reviewed the Operating Budget for the Marketinq Section, noting a 35.5% decrease. Councillor Taylor-Harrison inquired as to what marketing functions remain, given the recent transfer of responsibility to Corporate Communications. Mr. Pritchard responded that there is currently a vacant Manager position, which provides marketing expertise to the Auditorium. Mr. Baulk added that this Section develops revenue based marketing at the Auditorium, Cemeteries, Golf Courses and Arts & Cultural Events. On motion by Mayor C. Zehr- it was resolved: "That the 2000 Operating Budget for the Parks & Recreation Marketinq Section be approved, as recommended." Ms. Houston reviewed highlights of the Operating Budget for Parks Operations, noting a 3.7% increase. FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 15, 1999 - 205 - CITY OF KITCHENER 1. 2000 OPERATING BUDGET (CONT'D) On motion by Councillor T. Galloway- it was resolved: "That the 2000 Operating Budget for Parks Operations be approved, as recommended." Ms. Houston reviewed highlights of the Operating Budget for the Culture and Special Events Section noting a 1.1% increase. The Committee was also in receipt this date of a report from M. Price dated December 13, 1999 recommending approval of additional budget funds for a Special Events Assistant ($12,701); a Coordinator of City Hall Events ($4,256); additional rental attendant hours ($3,200); and, enhanced Civic Square summer programming ($14,616). Mr. Price reviewed his report and funding requests and asked that an additional $34,773 be included in the budget. M. Price also noted that the additional part time hours requested would assist in reducing the overtime required of existing staff. Councillor Vrbanovic questioned whether approval of these additional expenditures would enhance staff's ability to attract additional sponsorship revenue. He also suggested that the revenue target in this area be increased beyond the additional $5,000 identified in the current budget. Mr. Price noted that the in-kind services, which the City already receives for events are substantial, but do not appear in the budget. On motion by Councillor B. Vrbanovic- it was resolved: "That the Culture and Special City Events budget be increased by approximately $34,773 in regard to the additional expenditures outlined in the report of M. Price dated December 13, 1999; and further, That staff report on or before Budget Day as to the targeted amount for additional revenue relative to sponsorship of special events." On motion by Councillor G. Lorentz- it was resolved: "That the 2000 Operating Budget for the Culture and Special City Events Section be approved, as recommended and amended this date." Ms. Houston reviewed the Operating Budget for the Aquatics Section noting a 12.8% increase, in large part due to an increase in part time wages for Series 9000 employees. On motion by Councillor C. Weylie - it was resolved: "That the 2000 Operating Budget fort the Aquatics Section be approved, as recommended." Ms. Houston reviewed highlights of the Operating Budget for the Senior Citizen and Special Needs Section, noting a 2.4% increase. She noted that in regard of increase in part time wages that a grant had not yet been approved for the accommodation program, Home Support Expansion. On motion by Councillor G. Lorentz- it was resolved: "That the 2000 Operating Budget of the Senior Citizen and Special Needs Section be approved, as recommended." Ms. Houston reviewed highlights of the Operating Budget for the Community Development Section, noting an 8.4% increase. FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 15, 1999 - 206 - CITY OF KITCHENER 1. 2000 OPERATING BUDGET (CONT'D) On motion by Councillor B. Vrbanovic- it was resolved: "That the 2000 Operating Budget for the Community Development Section be approved, as recommended." Ms. Houston reviewed highlights of the Operating Budget for the Auditorium, noting an 11.6% increase. On motion by Councillor G. Lorentz- it was resolved: "That the 2000 Operating Budget for the Kitchener Auditorium be approved, as recommended." Ms. Houston review highlights of the Operating Budget for the Kitchener Farmers' Market, noting a 3.1% increase. On motion by Councillor M. Yantzi- it was resolved: "That the 2000 Operating Budget for the Kitchener Farmers' Market be approved, as recommended." Ms. Houston reviewed highlights of the Operating Budget for the Arenas/Athletics/Desiqn & Development Section, noting a 5.8% increase. On motion by Councillor G. Lorentz- it was resolved: "That the 2000 Operating Budget for the Arenas/Athletics/Desiqn & Development Section be approved, as recommended." Ms. Houston reviewed highlights of the Operating Budget for the Cemeteries Section noting a 10.8% reduction. Councillor Galloway inquired as to how soon the Cemeteries Operation will become cost neutral to the taxpayer. Mr. Kett replied that the crematorium will experience a 49% increase in use, and there has been a significant increase in plot sales; however, repaying the capital debt will make it difficult to reach this target in the next 10 years. Ms. Houston noted that the debt cost for the crematorium is approximately $53,000 per year. In response to a question from Councillor Weylie, Mr. Kett agreed to obtain the exact number of cemetery plot sales attributed to the new staff position. On motion by Councillor C. Weylie - it was resolved: "That the 2000 Operating Budget for the Cemeteries Section be approved, as recommended." Ms. Houston reviewed the Operating Budget and Six Year Projection for the Doon and Rockway Golf Course Enterprises. She noted an $82,000 deficit in the Doon Golf Course budget attributable to the debenture for course expansion. She added that the debt does not form part of the levy and revenues from the expansion will appear beginning in 2001. FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 15, 1999 - 207 - CITY OF KITCHENER 1. 2000 OPERATING BUDGET (CONT'D) On motion by Councillor C. Weylie - it was resolved: "That the 2000 Operating budgets for the Doon and Rockway Golf Course Enterprises be approved, as recommended." Councillor John Smola asked that Council be advised, at a future date, as to the approximate value of the golf course assets were they to continue to be operated as opposed to the lands being sold for some other use. Ms. Houston reviewed the Operating Budget for City Council noting a 3.8% increase. noted that the budget does not include a $6,000 expenditure relative to Earth Day. It was On motion by Councillor T. Galloway- it was resolved: "That the 2000 Operating Budget for City Council be approved as recommended, and amended this date to include a $6,000 expenditure relative to Earth Day celebrations." Ms. Houston reviewed highlights of the Operating Budget of the Mayor's Office noting a 6.2% increase. On motion by Mayor C. Zehr- it was resolved: "That the 2000 Operating Budget for the Mayor's Office be approved, as recommended." Ms. Houston reviewed the Budget for General Revenues and Expenses noting a decrease of 132.6%, in part due to the transfer of Transit and Project Lift services. She noted that the budget does not include the $50,000 grant requested by the Catholic Counselling Centre, consideration of which was referred to Budget Day. It also excludes the $36,000 in-kind grant approved in principle for the KOR Gallery and Studios, and as well as any provision in respect to the $250,000 capital grant requested by Theatre and Company. On motion by Councillor M. Yantzi- it was resolved: "That the 2000 General Revenues and Expenses Budqet be amended to add a $36,000 in-kind grant to the KOR Gallery and Studios approved in principle by Council on December 13, 1999." On motion by Councillor M. Yantzi- it was resolved: "That the 2000 General Revenue and Expenses Budqet be approved and recommended, and amended this date. Ms. Luciantonio reviewed the budget position, net of changes made by the Committee this date, and noted an increase of $146,000 resulting in a projected levy increase of 2.01%. Ms. Houston reviewed the City Reserves and Reserve Funds. Councillor Galloway noted that staff are recommending an additional transfer from the Tax Stabilization Reserve Fund. Ms. Houston explained that this relates to budget shortfalls in respect to provincial offenses and linear properties, and she offered the opinion that this additional transfer is both appropriate and sustainable. Councillor John Smola renewed his earlier request for an indication of how the Centre In The Square has dealt with revenues resulting from the OMERS contribution holiday. He asked that FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 15, 1999 - 208 - CITY OF KITCHENER this information be provided on or before Budget Day along with an indication of whether this amount has been included in the Centre's base Operating Budget. 2000 OPERATING BUDGET (CONT'D) On motion by Councillor G. Lorentz- it was resolved: "That the Reserves and Reserve Funds be approved, as recommended." Councillor Ziegler and Mayor Zehr thanked all staff involved in preparation of the Budget, and Mayor Zehr extended special thanks to the Administrative Review Committee for its hard work and diligence in reducing the potential levy increase. ADJOURNMENT On motion, the meeting adjourned at 3.35 p.m. G. Sosnoski Deputy City Clerk