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HomeMy WebLinkAboutCouncil Minutes - 1998-05-15 SCOUNCIL\1998-05-15-SPE MAY 15, 1998 SPECIAL COUNCIL MINUTES CITY OF KITCHENER A special meeting of City Council was held at 12:50 p.m. this date and Chaired by Mayor C. Zehr with all members present. Notice of this special meeting had previously been given to all members of Council by the City Clerk pursuant to Chapter 25 (Council Procedure) of the Municipal Code. The purpose of the meeting was to deal with the recommendations of the Finance and Administration Committee pertaining to the 1998 Operating and Capital Budgets. Council was in receipt of various information reports from staff requested during budget review by the Finance and Administration Committee. They were also in receipt of a revised schedule of potential changes involving the Capital Budget and Forecast. Prior to the Council meeting this date, the Finance and Administration Committee met to review its budget recommendations and to deal with several items of unfinished business. During that meeting additional staff reports and further discussions were requested as follows: an information report on the factor used to calculate interest revenue in the Equipment Pool Reserve Fund; a report to a future Community Services Committee meeting concerning proposed changes to the City's Oktoberfest Float; discussion of the installation of traffic control signals at Courtland and Siebert. The location meets warrants, but is not recommended by staff. Mayor C. Zehr advised that as a follow-up to an earlier Council resolution asking that the Province recalculate selected factors involving the City's expenditure reduction target, Mr. Gary Leadston, M.P.P., has indicated that the Ministry of Finance recognizes the problem and will respond very shortly. Ms. P. Houston summarized the City's position in respect to the 1998 budget and the impact of Provincial downloading. She noted that despite Provincial assurances that downloading would be revenue neutral, it has had a $3,000,000 negative impact on the City. She noted that over the past five years, Kitchener's portion of the tax bill has risen by .71% per year, which is well below the rate of inflation; and, in 1995 and 1997 taxes actually decreased. Ms. Houston expressed disappointment that barring the impact of Provincial downloading, the City would actually be further decreasing taxes by .5% in 1998. Ms. Houston stated that the City has been vigilant in streamlining its operations, and referred to the following examples in this regard: the elimination of 23 full-time equivalent staff positions; closure of a Fleet Maintenance Garage with estimated savings of $1.2 million; eliminating $550,000 per year in capital spending programs; streamlining firefighting operations for a $200,000 savings; undertaking insurance pooling with other municipalities for an initial savings of $120,000 per year and additional savings in future years. She also stated that staff are committed to capturing savings in coming years related to the proposed three year expenditure reduction plan. She advised that though it is never a good time to increase taxes, it is staff's position given the health of the local economy, that it would be prudent in the long term to implement a 4% increase in 1998 and a 1% increase in each of the following two years. Ms. Houston praised the efforts of neighbouring municipalities in avoiding tax increases, but suggested that it is inaccurate to compare their situations with that of Kitchener. She noted that Kitchener is a larger municipality with commitments to a different level of service, was impacted to a greater extent by Provincial downloading, and was penalized with a higher savings mandate due to the City's size and an unfair and arbitrary gross expenditure formula. Ms. Houston noted that Kitchener was asked by the Province to find savings that were four to ten times higher than those of neighbouring municipalities. Ms. Houston suggested that accepting the tax increase outlined will allow the City to retain its commitment to increases below the rate of inflation during the next two years. Council was in receipt of information from Mr. D. Snow in response to an earlier request that staff investigate the feasibility of turning on street lights 15 minutes later and shutting them off 15 minutes earlier. Mr. Snow advised that there would be savings of approximately $25,000 per year; however, there are problems with resetting the current fixtures using existing equipment. He noted that at an estimated cost of $35,000, electronic controls could be purchased which would allow the City to calibrate its lighting. He indicated that he would obtain additional information in this regard and report back to a future meeting of the Public Works and Transportation Committee. MAY 15, 1998 SPECIAL COUNCIL M/NI~ES - 297- CITY OF KITCHENER Council was in receipt of correspondence from Mr. Joe Sutherland, President, CUPE Local 791 objecting to the planned conversion of Parking Lot No. 1 (Charles and Benton Streets) and Lot No.19 (Centre In The Square) from attendant control lots to pay and display lots. Appended to the correspondence is a petition with signatures of individuals objecting to the planned conversion. Mr. Snow noted that there is some misinformation being circulated in this regard, and pointed out that pay and display lots have been in the Downtown for a number of years and are well used. Mr. J. McBride added that the petition indicates no receipts will be available, suggests there will be no security as a result of the conversion, and makes no reference to a daily maximum rate. A discussion took place at the Finance and Administration Committee meeting preceding the Council meeting of this date during which it was suggested that the transfer from the Gas Utility be increased. Mr. J. Gazzola pointed out that the proposed transfer is reasonable given the current environment, and expressed concern over increasing this amount given deregulation of the gas industry. Ms. P. Houston also referred to sales fluctuations due to weather and industrial usage and suggested that increasing the transfer could put the municipality in a dangerous position. Mayor C. Zehr questioned the need to budget as high a difference between past and anticipated future revenues as is being proposed. Mr. Gazzola also advised that in future, the Gas Utility will be under the control of the Ontario Energy Board and this could result in increased regulation. In addition, if the municipality is treated similar to other Gas Utilities, it may have to pay corporate income tax. Moved by Councillor J. Ziegler Seconded by Councillor G. Lorentz "That the report of the Finance and Administration Committee (1998 Capital and Operating Budgets) of this date be adopted." Carried. On motion the meeting adjourned. MAYOR CLERK FINANCE AND ADMINISTRATION COMMITTEE - OPERATING BUDGET That the 1998 department operating budgets, general expenses, revenues and grants resulting in a 1998 dollar levy for general purposes of $67,501,168, be approved. That Council approve an increase in the 1998 tax rate of approximately 2.53%, subject to a possible reduction should the Province, after recalculating the City's expenditure reduction target, provide additional funding. That in 1998, a $50.00 tax credit pursuant to the Municipal Elderly Residents Assistance Credit Program be approved but that no new names be added to the present list. That the following 1998 budgets for municipal enterprises be approved: Annual Surplus Enterprise Revenue Expenses (Deficit) Equipment Fleet 11,683,000 11,683,000 0 Gasworks 56,300,000 53,547,000 2,753,000 Waterworks 18,703,000 18,711,000 (8,000) Sewer Surcharge 13,197,000 14,404,000 (1,207,000) Doon Golf Club 1,110,000 944,000 166,000 Rockway Golf Club 1,059,000 1,054,000 5,000 $102,052,000 $100,343,000 $ (1,709) 5. That the following 1998 schedule of transfers be approved: Reserves and Reserve Funds Transfer from Current Funds - Oktoberfest Float Staff Training Project Lift Vehicles Election Transfer to Current Funds - KEAP Program Tax Stabilization 1998 15,000 75,000 70,000 87,000 247,000 45,000 1,959,000 2,004,000 Transfer to Capital - Parkland Reserve Fund Auditorium Ticket Fund 595,000 136,000 731,000 Transfer from Capital - Election 240,000 Transfer between Reserves - Sick Leave to Tax Stabilization 100,000 Net Transfers (from) to Reserves $(2,248,000) Further, that in regard to the transfer from the sick leave reserve fund to the tax stabilization reserve fund, such transfer be reviewed in 1999 to determine whether it can be accommodated on an ongoing basis. That the following 1998 Board appropriations be approved: Name Kitchener Public Library Board Centre in the Square Inc. 1998 5,724,200 1,070,048 $6,794,248 MAY 15, 1998 SPECIAL COUNCIL M/NUTES - 299- CITY OF KITCHENER SPECIAL COUNCIL MINUTES MAY 15, 1998 - 999- CITY OF KITCHENER REPORT ADOPTED BY COUNCIL That the following 1998 appropriations for contractual services be approved: Project Lift Animal Control Services 1,343,302 332,190 $1,675,492 That the following amounts be transferred from the Enterprises Accumulated Net Earnings to the General City Funds in 1998: Gasworks Waterworks Doon Golf Club Rockway Golf Club 4,391,394 1,639,696 78,482 78,482 10. That the sum of $2,000,000 be transferred from the Gas Division Accumulated Net Earnings to provide for the Business Parks ($1,914,000), GIS ($3,000), Safety Audit ($33,000) and Parking Garage ($50,000) respectively. That the 1998 Department Operating Budgets and municipal grants incorporate the following reductions/additional revenue/efficiency adjustments submitted by staff in the amounts shown: Proiect Lift · Reduction in Ambulatory Customer Rides Centre in the Square · Increased Revenues · Reduced Expenditures Kitchener Public Library Board · Unspecified Reduction 9,000.00 23,000.00 22,000.00 40,000.00 Further, that the Kitchener Public Library Board advise P. Houston, Chief Financial Officer and City Treasurer, of the annualized impact of the $40,000.00 reduction Plannin.q and Development Department · New Federal RRAP funding 24,000.00 · Increase subdivision revenue 12,000.00 · Increase portable sign fee 8,000.00 · Urban design/environmental award program 5,000.00 reduction · Safety clothing 4,000.00 · Eliminate co-op student (effective 1999) 9,000.00 Parks and Recreation Department Photography Printing - Outside services/brochures Job Sharing with Public Works and Arenas Cameron Heights youth basketball Volunteer Committee 2,000.00 1,000.00 19,000.00 1,000.00 2,000.00 MAY 15, 1998 SPECIAL COUNCIL M/NIYFES - 300- CITY OF KITCHENER SPECIAL COUNCIL MINUTES MAY 15, 1998 - 300- CITY OF KITCHENER 11. 12. REPORT ADOPTED BY COUNCIL Charges for lifesaving 1,2 and 3 badges Close all but one pool on statutory holidays during Winter Reduce public swimming - Cameron Heights Program supplies Gapping for clerical staff Resource development (new revenues) 3,000.00 1,000.00 2,000.00 1,000.00 2,000.00 3,000.00 Tricentre Event (new revenues) District 5, Part-time wages Forest Heights - Part-time wages Part-time wage reduction - Auditorium Rink board advertising revenue Reduction in full-time wages (Queensmount) Lions Arena - Ice Rentals (August) Wilson Arena - increased floor time Reduction in part-time wages (Cemeteries) Flower bed planting and maintenance 3 000.00 8 000.00 2 000.00 8 000.00 1 000.00 1 000.00 8 000.00 1 000.00 5 000.00 3 000.00 Fire Department No staffing of the aerial unit beginning June 1/98 193,000.00 Public Works and Transportation Department Reduction in Engineering Temporary employees Shift change implementation - Operation Garbage collection/tip fee reduction for bulk containers Chip crew to crack sealing Eliminate half of temporary staff - Operations Implement shift proposal as per best management practices Convert Lot #1 from Cashier to Pay-and Display Parking assuming no garage Convert Lot #19 from Cashier to meters Charge $1.00 to park in Duke and Ontario garage on Saturday Eliminate co-op student Reduce part-time operators 32,000.00 47,000.00 50,000.00 17,000.00 28,000.00 13,000.00 12,000.00 13,000.00 2,000.00 10,000.00 50,000.00 Finance Department Reduction in Corporate audit fees Reduction in Corporate insurance premiums Increased tax certificate revenue Reduction in part-time revenue staff Reduction in telephone costs - Purchasing Reduction in Information Services staff Reductions in forms/deposit slip system Increase NSF charge to $25.00 Reduction in Accounting staff 17,000.00 120 000.00 15 000.00 16 000.00 1 000.00 12 000.00 5 000.00 3 000.00 35 000.00 That a special meeting of the Finance and Administration Committee be called in the Fall of 1998 to receive and review a comprehensive report on all fees charged by City Departments. That $4,000.00 be added to the Culture and Special Events Budget of the Parks and Recreation Department to allow, where appropriate, extensions of an additional six to eight weeks in the MAY 15, 1998 SPECIAL COUNCIL 1VHNIYFES - 301- CITY OF KITCHENER SPECIAL COUNCIL MINUTES MAY 15, 1998 - 301 - CITY OF KITCHENER 13. 14. 15. 16. 17. 18. 19. REPORT ADOPTED BY COUNCIL Summer Youth Programs operated from Community Centres, with staff to decide which locations are most suitable in this regard; and further, That staff identify and budget for two to three such extensions, subject to a report to the Community Services Committee on a discretionary fund in this regard, said report to indicate the number of attendees and expenditures in 1996/1997 as well as criteria for extension of these programs. That an additional $4,000.00 in revenue be budgeted for rink board advertising at the Kitchener Memorial Auditorium Complex. That the Cemetery Land Reserve Fund be eliminated and the balance of $148,000.00 be used to pay down the debt for the Williamsburg Cemetery and Crematorium; and further, That three per cent of 1998 lot sales ($15,000.00) and $10,000.00 in debt charge savings be transferred to the Cemeteries Section to reduce operating costs. That 1998 revenues for the Parks and Recreation Department be increased by $50,000.00, with the specific areas of increase to be at the Department's discretion. That 1998 lottery license revenue in the Clerk's Division budget be increased by $13,000.00. That the 1998 Transit Division operating budget reflect a $90,000.00 unspecified expenditure reduction for anticipated savings resulting from efficiencies in service delivery. That Council approve a contract By-law Enforcement Officer position within the Enforcement Section of the Planning and Development Department, on a part-time basis (18 hours per week), for the purpose of providing regular patrols of the City to enforce the provisions of Chapter 680 (Signs) of the Municipal Code, the primary duties of the position being those outlined in Planning and Development report #PD98/41; and further, That at the end of 1999, staff report back to Council on both the cost effectiveness and Sign By- law compliance activity, prior to considering an extension of this contract beyond December 31, 1999. That the following in regard to an action plan for risk management in the Building Division and provisions of the Ontario Building Code and Regulations be adopted: a) That the Building Division commence plan examination and field inspection of heating, ventilating and air conditioning systems for Part 9 buildings within the City of Kitchener; and, b) That the Building Division commence structural plan examination and field inspection for Part 9 buildings within the City; and, c) That the Building Division undertake and implement a "backflow prevention" program for all buildings within the City, except Part 9 residential buildings; and, d) That the existing contract building/plumbing inspection positions remain as contract positions with a term of two years in order to provide the necessary inspections for the above noted programs in accordance with the Ontario Building Code Regulations; and, 19. (Cont'd) e) That a contract plan examination position be created to permit heating, ventilating and air MAY 15, 1998 SPECIAL COUNCIL MINUTES - 30~- CITY OF KITCHENER SPECIAL COUNCIL MINUTES MAY 15, 1998 - 30~- CITY OF KITCHENER 20. 21. REPORT ADOPTED BY COUNCIL conditioning plan review, structural plan review and septic design plan review, and to allow for permit issuance in the "three stream permit approval process" until the current permit administration positions are upgraded/trained to complete these functions; and, That the above plan examination position be contracted on a year-to-year basis with a review of its necessity each year as part of Council's budget review process, and in this regard $35,000.00 be budgeted for the remainder of 1998 and an annualized cost of $55,000.00 be budgeted in 1999; and, f) That Building Division staff continue to participate in various training opportunities offered by the Ministry of Municipal Affairs and Housing, the Ontario Building Officials Association and the local Chapter, to obtain and maintain Provincial certification as Certified Building Code Officials or certified Plumbing System Inspectors; and, g) That Council support the recommendations for "effective and efficient administration of the Building Code Act" contained within Section V of the report of J. Witmer entitled "Building Division Risk Management and Building Administration Report" dated February, 1998; and, h) That Council support the "quality control recommendations" contained in Section VI of the report. i) That Council endorse the proposed implementation schedule contained within Section VII of the report, as it relates to improved customer service and implementation of risk management principles and procedures; and, J) That Council acknowledge that the Building Division does not provide plan examination or field inspection for the structural aspects of Part 3 buildings due to the absence of technical expertise in-house; however, to compensate for this, staff will take a more aggressive approach to obtaining the required field inspection reports from the stated design professionals; and, k) That Council acknowledge that the Building Division does not provide mechanical plan examination or complete field inspection of mechanical systems for Part 3 buildings due to the absence of technical expertise in-house; however, to compensate for this staff will take a more aggressive approach to obtaining the required field inspection reports from the stated design professionals; and, I) That a draft Building By-law be prepared for Council's consideration; and further, m) That a standard operating procedure for "stale-dated" permits be developed for Council's consideration, confirming best management practices for the benefit of the City and its residents." That a one time savings target of an additional $156,000.00 be applied to the Fire Department budget as a result of a delay in hiring of new staff for Fire Station #7 until August 17, 1998, a delay in the opening of the station until October 26, 1998, and elimination of staffing for the aerial ladder unit upon opening of Station #7. That in future presentations concerning the status of the Sick Leave Reserve Fund, the Ontario Municipal Employees Retirement System (OMERS) contribution reduction be shown separately on the Fund schedule, and that staff continue to monitor status of the reduction and keep Council informed of any changes in this regard. 22. That $1.32 million from the net earnings of the Gas Utility be used to pay off the debt incurred by the City as a result of converting from Schedule 1 to Schedule 2 for worker's compensation claims; and further, MAY 15, 1998 SPECIAL COUNCIL M/NIYFES - 303- CITY OF KITCHENER SPECIAL COUNCIL MINUTES MAY 15, 1998 - 303 - CITY OF KITCHENER 23. 24. 25. REPORT ADOPTED BY COUNCIL That on an ongoing basis, contributions to the Worker's Compensation Reserve Fund be reduced by $500,000.00, with $425,000.00 of this savings accruing to the tax levy in 1998. That a $100,000.00 target be budgeted for savings accruing to the municipality as a result of employment gapping. That an additional $300,000.00 be transferred from the Tax Stabilization Reserve Fund and be used to reduce the 1998 tax levy; and further, That should the municipality, as a result of its petition to the Province for recalculation of its expenditure reduction target, receive an additional $300,000.00 in the form of a Community Reinvestment Fund Grant prior to the next tax billing, this amount be used to further reduce the 1998 levy, otherwise that it be placed in the Tax Stabilization Reserve Fund. That Kitchener Council endorse the tax policy resolutions enacted by the Regional Municipality of Waterloo at its meeting of April 29, 1998 as outlined in correspondence from Ms. E. Stettner, Regional Clerk, dated May 8, 1998. CAPITAL BUDGET AND FORECAST 26. That the Capital Forecast 1998 - 2007 be approved on an "Actual Expenditure" basis with the total expenditures in each of the years 1998 - 2007 as follows, and subject to the changes referred to in Clause #33 of the Finance and Administration Committee report of this date: Year Total Capital Expenditures (In Thousands Of Dollars) 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 37 725 38 818 33 655 28 675 34 860 35 657 27 010 29 990 33,109 31,178 Total $330,677 27. That $3,457,000 of debenture financing be approved for the following projects included in the Capital Forecast for the year 1998, term not to exceed 10 years: Project Debenture Required (In Thousands of Dollars) Tax Base Related: Fire Station #7 Fire Station #1 Fire Truck replacement Community Centre/Forest Heights Auditorium Rink Floor Replacement Auditorium Dasher Board Replacement Victoria Street Storm & Sanitary Outlet 814 7OO 364 4OO 45O 72 65O 27. (Cont'd) MAY 15, 1998 SPECIAL COUNCIL 1VHNUTES - 304- CITY OF KITCHENER SPECIAL COUNCIL MINUTES MAY 15, 1998 - 304 - CITY OF KITCHENER 28. REPORT ADOPTED BY COUNCIL Non-Tax Base Related: Energy Management Program $3,457 That the following projects included in the Capital Forecast for the year 1998 be financed through an appropriation of Capital from Current Funds in the 1998 Current Budget, and subject to the changes referred to in Clause #33 of the Finance and Administration Committee report of this date, namely: (In Thousands of Dollars) General City General Expenses General Contingency Geographic Information System Software Conversion - Mainframe Rockway Gardens Election System Community Loans Program Boards Kitchener Public Library: Annual Provision Computer Upgrade Stanley Park Library Improvements The Centre in the Square: Annual Provision Roof Replacement Economic Development Industrial Business Parks Page #Amount 1 338 1 376 1 62 1 3O 1 240 1 100 1,146 2 7O 2 25 2 5O 3 99 3 5O 294 4 32 Finance Office Equipment Revenue Division Software AV Equipment - Council Chambers Computer Infrastructure Provision PeopleSoft HR/Payroll Fire 5 14 7 41 8 235 8 5O 8 247 8 35 622 9 6O8 Corporate Services & City Clerk's Printing Records Management Facilities Management Regular Fleet Transit Fleet 18 12 13 14 17 336 148 6 873 32 1,395 SPECIAL COUNCIL MINUTES MAY 15, 1998 - 305- CITY OF KITCHENER REPORT ADOPTED BY COUNCIL 28. (Cont'd) Parks & Recreation Administration Parks Operations Culture & Special Events Aquatics Seniors/Special Needs Community Development Auditorium/Farmers' Market Athletics/Arenas/Design Cemeteries 34 19 2O 23 25 26 27 28 31 170 10 1,346 66 72 45 9O 293 226 2,318 Plannin.q & Development 37 262 Public Works Administration Share of Regional Roads Storm Drains/Creek Improvements Street Improvements Street Lighting Parking Traffic Transit 39 41 43 44 51 52 53 54 88 179 793 1,449 462 231 95 177 3,474 Total General City $10,151 Municipal Enterprises Golf Courses Doon Rockway Gasworks Geographic Information System Safety Audit Business Parks Parking Garage Various Gas Projects 35 34 36 1 33 4 52 62 96 3 1,914 5O 3,517 5,517 Waterworks (Various) 1,894 Sewer Surchar.qe (Various) 2,788 Total Municipal Enterprises $10,295 29. That the following projects included in the Capital Forecast for 1998 be financed from the Lot Levy Reserve Fund, namely: Department Thousands of Dollars) Kitchener Public Library Project Stanley Park Library Amount 5O (In Fire Fire Station Headquarters #1 800 SPECIAL COUNCIL MINUTES MAY 15, 1998 - 306- CITY OF KITCHENER REPORT ADOPTED BY COUNCIL 29. (Cont'd) 30. 31. 32. 33. 34. Corp Services/Clerk's Fleet Replacement Equipment 374 Parks & Recreation General Park Development Major Park Development Community Centre Provision 35 146 225 Public Works City Share of Subdivisions Development Charge Act Study Victoria St. Storm & Sanitary Outlet Shirley Avenue/Lackner Blvd Ext. Bingeman Street Bus Shelters New Watermains Projects with Lot Levy Funding - Front End Financing with credit: 120 150 3 24O 4 4 100 $2,251 Public Works Doon South Sanitary Trunk Sewer Detweiler Greenway Middle & South Strasburg Trunk Sewer Block Line Road East 311 411 2O 3,114 $3,856 And further, that it is understood that none of the above noted projects will be commenced unless there are sufficient uncommitted monies in the Lot Levy Reserve Fund to complete them, otherwise the above projects will be front end financed by the appropriate Developers. That an amount of $538,000 be transferred to the Capital Fund from the General City Capital Surplus. That the amount of $50,000.00 be shifted from within the Parks and Recreation Department Capital Budget or from a General Contingency to the Community Trail Provision for unspecified trail improvements, and in this regard staff are to report at a future meeting of the Community Services Committee on how these additional funds will be spent on community trails. That Topper Woods be considered a high priority for Community Trail expenditures in 1998 on the basis of its status as an environmentally sensitive area, and in this regard a report be considered at the Community Services Committee outlining how this project will be prioritized and integrated into other planned development in the area. That the 1998 Capital Budget and Capital Forecast be adopted and reflect the allocations and funding changes outlined in the Schedule entitled "Capital Budget Cuts - Department Submissions" (April 14, 1998) as well as the schedule of "Potential Changes to C.C.\Debt" as presented on May 15, 1998 (Slide #11 ); and further, That in addition to the above, the Glasgow Street improvements be reallocated as follows: 1999 ($298,000.00); 2000 ($562,000.00), and the Capital Forecast be rebalanced accordingly in 1999. That notwithstanding that a Regional Road is involved, and given the number of recent accidents involving this intersection, the City of Kitchener install traffic control signals in 1998 at the intersection of Lackner Boulevard and Ottawa Street at a cost of approximately $78,000.00, with this amount to be debited from the General City Capital Surplus; and further, That City staff approach the Region of Waterloo to request that this cost be reimbursed.