HomeMy WebLinkAboutFCS Agenda - 2019-01-07 - 2019 Operating Budget
Special Finance & Corporate Services Committee
Agenda
Office of the City Clerk
2019 Operating Budget
Kitchener City Hall
nd
200 King St.W. - 2 Floor
Kitchener ON N2G 4G7
Monday, January 7, 2019
9:30 a.m. - 4:30 p.m.
Council Chamber
Page 1 Chair - Councillor S. Davey Vice-Chair Councillor P. Singh
Discussion Items
1. FIN-19-001 - 2019 Operating Budget (6 hrs)
Introduction from the CAO
General Overview by the CFO
Boards
Tax Supported Operating Budget
Community Grants
Enterprise Operating Budgets
Resolution
NOTE: final approval of the 2019 Operating Budget will take place as part of Final Budget Day, scheduled for
January 31, 2019.
Information Items
** The Committee will recess for lunch at 12:00 noon.
Jeff Bunn
Manager, Council & Committee Services/Deputy Clerk
** Accessible formats and communication supports are available upon request. If you require assistance to
take part in a city meeting or event, please call 519-741-2345 or TTY 1-866-969-9994 **
Note: Final approval of the 2019 Operating Budget will take place as part of Final Budget
Day, scheduled for January 31, 2019.
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Benefits of WIP Investments
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CITY OF KITCHENER
ENTERPRISE OVERVIEW
Building Enterprise
Operating Model/Philosophy:
The Building enterprise is responsible for the administration and enforcement of the Building
Code Act and Building Code. The mandate of the Building enterprise is to ensure construction
within the City meets the minimum requirements as detailed in the Building Code.
Services Provided:
The Building enterprise provides a majority of its services to external customers for building
permit issuance and on-site inspections. Building also supports the AMANDA software system
and administers the final grading approvals for new low-rise residential buildings.
Benchmarking:
The charts below outline the total number of building permits issued and fees collected over
the past 6 years.
Total Building Permits Issued 2013-2018
2732
3000
2328
2500
2119
2052
1886
2000
1307
1500
1000
292
287
258
234
227
219
500
194193
148
147
135
125
0
20132014201520162017*2018
Industrial/CommercialInstitutionalResidential
Total Building Fee Revenues 2013-2018
$4,942
$5,000
$4,500
$3,852
$3,708
$4,000
$3,500
$2,877
$3,000
$2,344
$2,500
$2,000
$1,238
$1,500
$1,012
$814
$709
$650
$1,000$592
$571
$490
$424
$397
$337
$278
$171
$500
$-
20132014201520162017*2018
Industrial/CommercialInstitutionalResidential
st
*2018 – Year-To-Date (YTD) January 1 to July 31st
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CITY OF KITCHENER
ENTERPRISE OVERVIEW
Primary Legislation:
The Building enterprise is governed by the Provincial Building Code including referenced
legislation such as the Planning Act, the Development Charges Act, and other construction
standards. The main purpose of the Building Code is to ensure the buildings citizens work, live
and play in are safe through the issuance of building permits and site inspections. Building
permit revenues must only be used for the administration and enforcement of the Building
Code.
Customer Base:
The majority of Building’s customers are the private sector, and their experience in building
regulations is diverse; from minimal to knowledgeable. Building’s customers include single time
users such as do-it-yourself homeowners, repeat homebuilders, and non-residential applicants
who build 1-2 times per year. The 2018 Year-To-Date (Jan. 1-June 30) breakdown of Building’s
customer base is 83% residential, 11% industrial/commercial and 6% institutional.
Recent Challenges:
The downtown development charge exemption expires on February 28 2019, and building
permit activity is expected to increase as a result. Building is not staffed for the influx of
complex multi-storey buildings. The good news is temporary hires are complete to handle the
increase in permit activity expected over the next few years.
The Building enterprise experienced higher than normal job position changes. The position
changes are the result of staff turnover and backfilling of temporary positions. The net effect of
these changes is additional training for staff, which has an impact on workflow.
The public portal upgrade is moving ahead but the planned go-live date of January 1, 2019 is
uncertain due to technical issues beyond the city. Staff continues to monitor and assistwith the
goal of getting the project back on schedule.
Recent Successes:
Building successes are attributed to a technically skilled professional staff with proven customer
service skills. Customer feedback on Building staff services continues to be positive.
The Building enterprise seeks opportunities to leverage technology, this year the field
technology for the building inspectors was upgraded. Speaking of leveraging, in May, we also
leveraged and promoted Building Safety Month.
The Building enterprise administered the termite pilot project for the 4th year. Tuesday Express
Service was improved by starting at 2 p.m., 2 hours earlier than previous years.
Lastly, through ongoing and prudent financial measures including high activity levels, the
Building Stabilization Reserve remains positive and sustainable over the 5-year projection
period including an anticipated economic downturn.
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CITY OF KITCHENER
ENTERPRISE OVERVIEW
Golf Enterprise
Operating Model/Philosophy:
Kitchener Golf provides an affordable golf experience for all.
Services Provided:
Kitchener Golf operates golf properties and facilities at both Doon Valley and Rockway Golf
Courses offering affordable recreational golf opportunities, as well as facilitated camps and
clinics, leagues, tournament and events.
Kitchener Golf facilities are open from dawn to dusk seven days a week during the golf season,
which can run anytime between April-November dependent upon weather. During the off
season, the facilities can be utilized for special occasions and provide a public space for winter
walking and cross country skiing.
Benchmarking:
The chart below outlines the prices at a number of privately owned public golf courses in the
area. Kitchener Golf’s prices are at the low end of the spectrum.
Kitchener Merry Hill Cambridge Puslinch Elmira
Primetime $47 $39 $57 $50 $53
Off-Peak $37 $28 $45 $46 $40
Primary Legislation:
A Level Playing Field agreement signed with National Golf Course Owners Association states
that municipal golf courses will pay a dividend to their municipality equal to the sum of
property and income taxes. This ensures that municipal golf courses are not at an unfair
advantage.
Customer Base:
Both courses are open to everyone.
Recent Challenges:
Aging infrastructure of clubhouses, golf carts, maintenance and storage building.
Recent Successes:
In collaboration with Inclusion Services, we launched the Golf Fore Life – Golfers with Dementia
program funded by a recreation grant from the Government of Ontario. We have received a
tremendous amount of positive feedback and media exposure for this unique program. We are
looking into securing funding to continue the program for 2019.w
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CITY OF KITCHENER
ENTERPRISE OVERVIEW
Parking Enterprise
Operating Model/Philosophy:
The Parking Enterprise’s goal is a self- funded, financially sustainable enterprise providing
accessible and convenient parking in the downtown core at a fair price. It is very important to
the core as it helps the City achieve and balance its economic development growth management
and transportation objectives.
Services Provided:
The Parking Enterprise manages and operates the City’s downtown parking portfolio, which
currently consists of five parking garages, 17 surface lots, on-streetmeters and free parking
spaces (totaling 3,593 spaces). It has direct responsibility for the operation, maintenance, capital
rehabilitation and fiscal management of the City’s public parking infrastructure.
Benchmarking:
The table below outlines current prices of monthly parking for surface and garage facilities in the
downtown. The City’s monthly parking prices are at the high end of the spectrum.
Current Parking Operators Monthly Parking Fees before HST
Provider Surface Garage
Major 3rd party Private Business $118.65 $125.00
City of Waterloo $115.97 $150.07
City of Kitchener - Downtown $138.27 $157.08
Primary Legislation:
Not applicable.
Customer Base:
All garage and surface facilities are open to anyone living, working or visiting the downtown. The
customer base currently includes 2,113 monthly parkers and over 500,000 daily customers per
annum. The total number of monthly parkers has remained relatively stable year over year, but
inventory has increased in the last four years by 1,129 spaces with the addition of two new
garages and the Bramm Street surface lot. The percentage of monthly customers over the
current supply is approximately 68%.
Recent Challenges:
ION ridership will affect travel patterns in and around the downtown. The ION is scheduled to
commence early 2019 and will impact parking demand.
In 2018, the City’s monthly garage parking rate of $154.87 + HST ($175.00) is the highest being
charged within the downtown business area. Competitors in the downtown have not followed
suit with the City’s aggressive parking rate increases and contribute to eroding the City’s market
share. The City’s daily rates are very reasonable. Hourly rates in private parking garages range
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CITY OF KITCHENER
ENTERPRISE OVERVIEW
from $1.50 to $2.00 per half hour, where City garages provide 2 hours of parking at a
rate of $3.20. The City’s pay & display surface rate is $2.30 per hour.
Increased demand for surface parking spaces throughout the downtown and specifically in the
Innovation District is forecasted. In addition, supply of surface parking spaces is being reduced
as planned redevelopment of surface lots occurs. An increase to monthly surface rates and
hourly rates are warranted as demand for convenient and cheaper spaces increaseand inventory
decreases.
Based on anecdotal evidence, staff anticipates increasing monthly parking rates in garage
facilities above inflation at this time will result in less overall revenue as current customers will
seek out cheaper alternatives. Increased parking rates in surface lots but not in garage facilities
will narrow the price gap enticing long-stay parkers to use garages. It is forecasted this will free
up valuable surface spaces for short-stay customers. Increased monthly garage parking rates also
influence Downtown Kitchener’s competitive advantage. High parking prices can directly impact
current and future economic development in the downtown.
Recent Successes:
The Parking Enterprise is forecasted to achieve net revenue better than budgeted.
Expenses estimates are very close to budget. However, projected revenues are higher than
budgeted due mainly to a number of short term parking arrangements with neighbouring
apartments and condominiums while they complete major garage repairs.
The parking stabilization reserve fund is forecasted to be in a surplus position between the
established minimum and maximum benchmarks at the end of 2018 and will continue to remain
in a surplus position for the remainder of the 5 year forecast.
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CITY OF KITCHENER
ENTERPRISE OVERVIEW
Gas Utility
Operating Model/Philosophy:
Provide customers with safe, dependable and economical natural gas. Provide prompt, cost
effective and professional servicesrelated to rental water heaters. Promote conservation,
greenhouse gas reduction (GHG)and operate in an environmentallysensitive manner.
Services Provided:
Gas Delivery:
Kitchener Utilities (KU) is a Natural Gas Distributor. KU delivers approximately 267 million cubic
3
metres (m) of Gas to our customers yearly. Ongoing work to the distribution system for
maintenance, repair and upgrades include, installing and replacing meters, underground pipe
installation and maintenance, providing services to homes and businesses, responding to gas
emergencies involving gas line hits, gas leaks and odour calls, and gas utility locates.
As a natural gas distributor KU is required to comply with codes, rules and regulations imposed
by multiple governing bodies (see primary legislation list below).
In addition to these rules and regulations, our commitment to customers is to promote and
deliver energy conservation programs to help customers reduce greenhouse gas emissions.
Gas Supply:
Kitchener Utilities manages the purchase and transportation of the commodity to Ontario for
consumption in Kitchener. Regulations require these costs to be a straight pass through to the
end user.
Water Heater Rentals & Service:
Supply and service of rental water heaters.
Benchmarking:
While the population of Kitchener continues to grow,natural gas use has been declining over
the past 10 years. The graph below shows that the volume of gas consumed in Kitchener has
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fallen from 295,733,000 min 2005, to 273,923,953m projected for 2018. This can be
attributed to energy efficiency improvements, government policies to reduce GHG’s, a decline
in large industrial use, and conservation awareness. The volatile nature of the weather can
result in large swings in consumption year over year.
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CITY OF KITCHENER
ENTERPRISE OVERVIEW
3
Gas Volumes -(m)
300,000,000
250,000,000
200,000,000
150,000,000
100,000,000
50,000,000
0
Primary Legislation:
Technical Standards and Safety Act 2000
Ontario Regulation 210/01 Oil & Gas Pipeline Systems
Canadian Standards Association Z662-11 Pipeline Systems Essentials Code
Canadian Standards Association Z246.1-09 Security Management for Petroleum and Natural
Gas Industry Systems Code
Canadian Standards Association B149.1-10 Natural Gas and Propane Installation Code
Ontario Regulation 212/01 Gaseous fuels
Ontario Regulation 184/03/215 Fuel industry certificates
Measurement Canada – Gas Meters
Electricity and Gas Inspection Act
Ontario Energy Board – Gas Distribution Access Rule, Demand Side Management Guidelines,
Code of Conduct, Storage and Transportation Access Rule
Greenhouse Gas Emissions: Quantification, Reporting, and Verification regulation (O. Reg.
390/18) under theEnvironmental Protection Act, R.S.O. 1990, Chapter E.19 (EPA)
Customer Base:
Natural Gas: 71,000
Rental Water Heaters: 43,000
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CITY OF KITCHENER
ENTERPRISE OVERVIEW
Recent Challenges:
As a result of the completion of the Regional Light Rail Transit project, there has been an
increase in development of properties in and around the downtown core. These services are
more resource intensive on the engineering side (design and inspection) and higher contractor
costs from working around other utilities to install infrastructure in a constricted area. In order
to meet the increased design and inspection requirements additional staff have been requested
as part of the budget process.
Kitchener Utilities is experiencing an increase in multi-metering requests(multiple meters at a
property that only had a single meter), which has resulted in increased demand of staff time
and resources.
Recent Successes:
Kitchener Utilities participated in 13 public outreach events to promote program awareness
around conservation, safety and rental water heaters across the community, and engaged with
over 7,750 customers.
The implementation of the new meter inventory management system was launched for water
meters. The new system will improve the management of meters, and increase administrative
efficiencies as new meters will be directly scanned in and out of the database reducing data
entry. The system will be expanded to include gas meters and water heaters in late 2019.
In collaboration with CityWorks (the City’s work order management system) a mobile gas valve
inspection program was developed to collect real time data on valve inspections. This program
sets the template for future maintenance programs to go mobile and remove the need for
manual data entry of completed paper inspections.
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CITY OF KITCHENER
ENTERPRISE OVERVIEW
Water Utility
Operating Model/Philosophy:
Provide customers with quality, dependable, and economical distribution of water. Promote
conservation and operate in an environmentally sensitive manner.
Services Provided:
Water Distribution: Monitoring, installing and repairing the network of water mains, meters
and services to ensure a reliable and safe supply of water.
Conservation: Promoting conservation programs, which help customers reduce the amount of
water used which save both money and conserves energy.
Benchmarking:
While the population of Kitchener continues to grow, water use has been declining over the
past 10 years. The graph below shows that the amount of water metered and billed by the City
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of Kitchener has fallen from 22,500,000 min 2005, to a projected amount of 19,282,000m in
2018. This is attributed to a decrease in industrial demand, increase in water efficiency
measures, and greater conservation awareness.
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CITY OF KITCHENER
ENTERPRISE OVERVIEW
Primary Legislation:
Safe Drinking Water Act, 2002.
Ontario Regulation 170/03 Drinking Water Systems
Ontario Regulation 128/04 Certification of Drinking Water System Operator and Water Quality
Analysis
Ontario Regulation 169/03 Ontario Drinking Water Quality Standards
Ontario Regulation 188/07 Licensing of Municipal Drinking Water Systems
Customer Base:
Water: 68,000
Recent Challenges:
There is a recent provincial requirement to have licensed Water Distribution Holders witness
any connection to a live water distribution systems. This requires City of Kitchener staff to
attend construction activities performed by contractors on the water distribution system. As a
result, this is placing increased demands on existing staff time to comply with this requirement
and decreasing time available to complete required maintenance activities.
Recent Successes:
In 2018 a Financial Plan covering 2018-2023 was submitted to Council. The plan demonstrates
the financial viability of the Kitchener Drinking Water System.
A third part audit was completed in September 2018 found that Kitchener Utilities was fully
satisfactory in meeting the requirements of the Drinking Water Quality Management Standards.
The 2018 watermain cleaning program commenced at the end of August 2018 and will consist of
approximately 160km of watermain and 1600 valves.
Additional support for the backflow prevention program was hired in mid-2018 to increase
compliance numbers and further protect the municipal drinking water system.
Water meter exchanges are continuing to replacing aging water meters. In the first half of 2018
approximately 2800 water meters were replaced.
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CITY OF KITCHENER
ENTERPRISE OVERVIEW
Sanitary Sewer Utility (Wastewater)
Operating Model/Philosophy:
The Sanitary Sewer utility performs the service of removing wastewater generated in the city in
an efficient, cost effective, and environmentally responsible manner. The Sanitary Sewer utility
also ensures this is done in compliance with legislative and regulatory requirements.
Services Provided:
The Sanitary Sewer utility performs a wide range of activities and programs that together
supports the provision of safe and reliable collection of raw sewage generated within Kitchener
and neighbouring municipalities, and its subsequent conveyance through 900 kilometers of
pipes and 23 pumping stations to a Regional wastewater treatment facility, where the City pays
the Regionfor ultimate treatment and disposal. Such activities and programs include:
The Water Infrastructure Program (WIP) – Previously known as AIRP
Pumping station rehabilitation and replacement
The trenchless sewer rehabilitation program
Trunk sewer replacement
Spot repair program
Pumping station maintenance
Flow monitoring program
Closed Circuit Television (CCTV) inspection program
Flushing programs
Emergency repair work
Service connection blockage clearing
Hydraulic modeling
Condition and Risk assessment, scoring, and system analysis
System for the remote control of and data acquisition from pumping stations (SCADA)
Benchmarking:
The Utility is participating in the National Water and Wastewater Benchmarking Initiative which
looks at key performance indicators for municipalities across the country. Data for the current
year is being gathered and will be processed to compare to previous years.
Primary Legislation:
Clean Water Act
Environmental Protection Act
Ontario Water Resources Act
Environmental Assessment Act
Customer Base:
The owners, residents, and users of nearly all facilities in the city are generators of raw sewage.
This would include nearly every residential, and every significant commercial, industrial, and
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ENTERPRISE OVERVIEW
institutional building in the city. In total, this equates to over 65,000 customers billed
for this service.
Recent Challenges:
Operational: Significant amounts of Kitchener’s sanitary assets have reached, or are nearing,
the end of their lifecycle. As these assets deteriorate, the need for ongoing, regular
maintenance increases, resulting in a requirement for more funding and resources for
preventative and corrective maintenance. The recently approved sanitary utility rate increase
will result in improved budgets for both maintenance and replacement of sanitary
infrastructure, and thus contribute to reduced risk to the utility.
Budgetary: (1) Construction costs for replacement and rehabilitation of infrastructure from
2004 to 2017were significantly greater than the CPIrate of inflation.(2) Unit costs of sewage
processing have been, and are expected to, increase at rates well above the rate of inflation
(these costs are controlled by the Region).
Recent Successes:
Capital Works: Furthering the goals of the Water Infrastructure Program through the
replacement of sanitary sewer mains and services: by the end of 2018, 6.0 kilometers of sewer
main replacement are anticipated to have been accomplished along with 2.0 kilometres of
sewer main rehabilitation.
Capital Works: (1) Replacement of the Freeport sewage pumping station (SPS) is complete.
Associated forcemain construction is now underway. The completion of this work will continue
toward the lifting of a development freeze that has existed in this area for over a decade. (2)
Construction of the new Doon South Sewage Pumping Station is now complete thereby
permitting the development of the Doon South Community Plan area. (3) The South Strasburg
Trunk Sanitary Sewer is now complete providing an outlet for growth in south-west Kitchener.
Analysis: (1) Development of a risk analysis software tool for use in the enhanced prioritization
of remediation work to the sanitary sewer network. (2) Development of a flow analysis tool for
use in analyzing the capacity of individual pipe sections within the sanitary sewer network for
both existing and future proposed flows.
Administration:(1) New cross border servicing agreements have been established with
Woolwich Township and the City of Waterloo. (2) Transfer of the Mannheim Sewage Pumping
Station to Wilmot Township has occurred.
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CITY OF KITCHENER
ENTERPRISE OVERVIEW
Stormwater Utility
Operating Model/Philosophy:
The Stormwater utility performs the service of treating and controlling stormwater generated
in the city in an efficient, cost effective and environmentally responsible manner to comply with
legislative and regulatory requirements.
Services Provided:
The utility provides the necessary funding to operate, maintain, rehabilitate, replace and build
stormwater infrastructure across the city. The stormwater system is comprised of
approximately 100 kilometers of open watercourses in 20 subwatersheds, 650 kilometers of
sewers, 12,000 catch basins, 16,000 manholes, 65 hydrodynamic separators, 1,200 storm sewer
outfalls and 146 stormwater facilities.
Services include new capital projects identified by the annual water quality audit that is
conducted on local watercourses to determine where additional stormwater controls are
required to improve water quality. Other projects are required to address flooding in various
parts of the City. In addition to discreet capital projects, annual programs are established to
address recurring activities. These include:
Stormwater Management (SWM) Monitoring Program
Sediment Management Program
Watercourse Improvement Program
SWM Facility Retrofit Program
Drainage Improvement Program
SWM Infrastructure Implementation Program
Water InfrastructureProgram (WIP) – Previously known as AIRP
Low Impact Development (LID) AIRP
Sewer & Manhole Maintenance and Repair
Watercourse/Bridge/Culvert Maintenance and Repair
Street Sweeping
Leaf Pickup
Spills
Finally, the utility also funds a credit program to provide an incentive to private property
owners to control stormwater at the source where it falls on private property.
Benchmarking:
The stormwater utility finalized the Integrated Stormwater Management Master Plan (ISWM-
MP) to replace the 2001 SWM Policy I-1135 with policy MUN-UTI-2003. The master plan
establishes goals and objectives as well as provides direction to the utility until the year 2030.
There is an annual process of measuring progress against planned progress in the ISWM-MP.
Additionally, the utility is participating in the National Water and Wastewater Benchmarking
Initiative which looks at key performance indicators for municipalities across the country. Data
is gathered annually and is processed to compare results to previous years.
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CITY OF KITCHENER
ENTERPRISE OVERVIEW
Primary Legislation:
There is existing legislation that dictates certain requirements for stormwater management.
The key pieces of legislation include:
Clean Water Act,
Water Opportunities Act,
Environmental Assessment Act,
Ontario Water Resources Act,
Canadian Environmental Protection Act,
Canadian Fisheries Act, etc.
Customer Base:
There are over 70,000 properties in the city that are billed for the stormwater management
service. The bill is based on the amount of impervious surface on the property.
Recent Challenges:
Operational: Storm events are becoming more severe and intense which has a direct impact to
the entire stormwater system, by either causing damage to or exceeding the capacity of
existing infrastructure in an unpredictable manner.
Legislative: The new legislation for the Sewer Safety Inspections process has resulted in an
increased level of service that is now required for the locating of utilities prior to construction
activities taking place.
Budgetary: (1) There is an existing backlog of legacy projects identified in previous stormwater
audits that can only be completed as funding becomes available. (2) Operations and
maintenance requirements necessary to maintain the current service levels versus the current
budget allocations for such activities. This does not take into consideration the need for
additional budget to facilitate the transition to a more preventative maintenance approach. (3)
The stormwater utility is currently reviewing alternative strategies to enhance the lifecycle of
stormwater infrastructure to help address the current and any future deficits.
Recent Successes:
Operations and Maintenance: Operations staff removed over 7,000 tonnes of sediment from
stormwater facilities in 2017/2018 returning them to their design condition to improve water
quality. A total of 45 out of 146 facilities have now been cleaned out.
Capital Works: (1) The construction of SWM Facility 21 and the Kolb culvert replacement is
underway and will be completed in 2018. (2) Sediment will be sampled in over 12 additional
SWM facilities to complete chemical analysis for determining the correct disposal methodology
for future works. (3) Restoration of fish habitat and construction is currently underway for
Idlewood Creek. Approval agencies include DFO, GRCA, MNRF and First Nations. (4) Sediment
removal from the Victoria Park Lake forebay will occur in the fall of 2018. (5) All of the city’s
SWM facilities will be surveyed in 2018 to determine sediment volumes which provides the
basis for prioritizing the facilities within the sediment removal program.
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, 2019
Committee
January 7
Finance and Corporate Services
2019 Operating Budget
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Introduction from the CAO
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2019 Budget Priority Investments Road Safety & CyclingEnvironmental SustainabilityImproving Customer ServiceMaintaining & Investing in Infrastructure
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Installation of Protected Bike Lanes (Belmont, Water, & Queens)Improvements to Iron Horse Trail (Trestle Bridge Replacement)Clearing Snow in Bike LanesIncrease in Resident Led Traffic
Calming
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Road Safety and Cycling
Strategic Investments
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Sustainability Program to meet our GHG CommitmentsDedicated funding for energy retrofit projectsSmarter Fleet Investments & Use of Biodiesel FuelsUrban Forest Strategy (clearing tree
planting backlog)
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Environmental Sustainability
Strategic Investments
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Improving Citizens Online ExperienceAlignment of Resources to Support a Growing Community
Improving Customer Service
Strategic Investments
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Square)
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Zeh
Rehabilitating City Hall Outdoor Spaces (Carl Maintaining Water, Sewer, and Gas Utility InfrastructureMoving Ahead with Huron Brigadoon Community Centre
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Maintaining and Investing in Infrastructure
Strategic Investments
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of 2019
roposed budget reflects Council and
ommunity priorities, at a reasonable rate of
PcincreaseAll utilities projected to be in the black at the end City’s debt to reserve ratio is 1:1
2019 Budget Reflections•••
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General Overview by the CFO
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erview by the CFO
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Introduction from the CAOGeneral BoaTax Supported Operating BudgetCommunity GrantsEnterprise Operating BudgetsResolution
Presentation Agenda•••••••
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$406 million expenditures in total$180 million expenditures excluding enterprises (i.e. tax supported)Annual delivery of programs and services for the community$99.5 million in 2019$1.2
billion over the ten year timeframe 2019Projects with defined scope that help address our asset replacement needs$58 million in total Reserve Funds at end of 2019Rate Stabilization
Reserves help mitigate risk and potential budget fluctuationsSome Reserves are established for a specific purpose and use
Operating BudgetCapital BudgetReserve and Reserve Funds
Budget Overview
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Topic User Fees and ChargesOperating BudgetCapital BudgetPublic InputBudget Approval
Budget Calendar Date December 10, 2018January 7, 2019January 14, 2019January 21, 2019January 31, 2019
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Budget direction developmentDepartments prepare budgetsInternal administrative reviewCouncil committee reviewCouncil approval
Jun
Dec
Oct
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Aug
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Budget Process Timeline
Jul
Sep
Mar
Nov
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Global Trade
Interest Rates
Kitchener, ON
Exchange Rate
Energy Pricing
Inflation
Economic Indicators
GDP
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time bump in GDP as a result of legalization of cannabis
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year is 2.4%
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over
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Average CPI yearCPI is calculated based on a different mix of goods than those affecting municipalitiesExamples of differences (wage increases, energy related costs, capital construction)Real
GDP is expected to see moderate growth in 2019 and 20202019 expected to see a oneWaterloo Region’s Real GDP in recent years has outpaced the national averageBank of Canada raised the
overnight interest rate 3 times in 2018Interest rates projected to increase in 2019 and 2020Higher interest rates are good for investments but put pressure on borrowingHow quickly rates
increase will depend on overall economic conditions
InflationGDPInterest Rates
Economic Factors
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term could result in lower costs for fuel and natural gas
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Exchange rate in early December ($1CAD = $0.75US) Represents lowest levels in over a yearNot many purchases from the US with exception of some equipmentUSMCA is a positive development
for CanadaCurrent tariff wars represent some economic uncertaintySteel tariffs could impact overall cost of construction and purchase of vehiclesAt the time of preparing the budget
fuel prices had been risingRecent dip in crude oil highlights the difficulty in predicting price increases/decreasesLower prices in the short
Exchange RateGlobal TradeEnergy Prices
Economic Factors
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Sharing for Joint Initiatives)
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Regional (Water and Sewer Rate Increases, CostProvincial (Legislative Changes, Cannabis, Cap and Trade, Green Initiatives)Federal (Carbon Tax, Federal Gas Tax, Other Funding Opportunities)MPAC
is responsible for assessing properties across OntarioHigher assessment growth helps reduce the City’s overall tax rate increaseKitchener weighted assessment growth for 2019 is 2.53%Wind,
Torrential Downpours, Ice Storms, Extreme Cold and Heat EventsClimate change is having an impact on unpredictable weather patternsIncrease in events will put pressure on the budget
Levels of Government Assessment GrowthExtreme Weather Events
Other External Factors
48
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¢
54
Region
¢
¢
15
City31
School Boards
Every Tax Dollar We Collect…
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Every Tax Dollar We Spend…
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2,000 km of roads2,500 building permits
150 major facilities
110 water main breaks repaired
71,200 rounds of golf1,571 hectares of parks and open space
programs
watermain
3,529 parking spaces
operations
803,000 participants in arena 169 sports fields325,000 trips to pools
785 km of 827 km of sanitary sewers
42,700 hours of community centre
Budget Maintains and Supports…
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Increases
Summary of Proposed Budget
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bt charges
lans with the Budget
e
p
d
agement
an
m
Developing a Long Term Financial PlanDetermining a strategy related to EDIF Continuing to align asset Increased focus on Budget communication and information
ategic investments that are important to Council and the
rvices perspective will be:
ecommended tax rate increase of 2.3% is below the rate of
––––
nflation which aligns with feedback provided by citizens
Budget helps maintain current service levels and includes strcommunityRiAs we look beyond 2019 some areas of focus from a financial se
Final Thoughts•••
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Boards
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in
10.82M
2019
in
e been flat lined, adjusted to
nt increased from $
hav
a
gr
$11.04M
budget is status quoto
rating
Increase of 2.0% as per City guidelines
–
2019 Ope2018 Expenditures reflect costs including cost of living as per City guidelines
Kitchener Public Library (KPL)•••
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Kitchener Public Library (KPL)
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)
nge October 2015
a
he Square (CITS
ch
ointly with City defining needs and
j
cus (Mandate B) approved in March 2015
esponsibilities all through 2016
“Balanced” Mandate with Community Development FoManagement Progress r
Centre In T•••
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to
2018
in
.817M
1
to fund transitional
2019
2018
vides more information
from
pro
01
.9%
he Square (CITS)
19
2019
grant increased from $
from the City in
in
year requesting transition costs
crease of
anticipates needing additional funding of
Increase of 2.0% as per City guidelinesFourth DeIssue Paper Op
1.853M 142,527
––––
Operating $CITS $costs
Centre In T••
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he Square (CITS)
Centre In T
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Tax Supported Operating Budget
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Plan Direction
nicipalities
llingness and ability to pay
u
i
Comparison to other municipalitiesInflationary factors, including those unique to mBalance levels of service provided with taxpayers’ w
xation levels, taking into consideration the
–––
Strive for competitive, rational and affordable tafollowing when setting tax rates:
Strategic •
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Taxes
2017 property taxes (for municipalities with populations >100,0003 Bedroom, 1.5 bathroom, single garage, 1,200 sq. ft. bungalow on 5,500 sq. ft. lotSource: BMA Management Consultants
Inc. 2017 Annual Study
Comparative
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Household Comparisons
2018
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are
October 2018
City of Kitchener
as at
%
%
.0
Year to Date Average Consumer Price Index (CPI) = 2.4Year to Date Average Municipal Price Index (MPI) = 3
––
Cumulative Inflation Inflation pressures on higher than the average consumer
Ontario Inflation••
64
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2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Percentage Increase
Inflation versus Tax Rates
65
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and Service Levels
Taxes
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$4.1M
ance is
bal
its
ficit
nd results have been very close to budget
e
-
Projected 2018
–
Yearin recent yearsIndicates there is a fine line between a surplus and a deCity maintains a Tax Stabilization Reserve Fund to fund defic
Recent Operating Results•••
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Tax SupportedExpenses and Revenues
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Year
*Projected 2019: 2.53%
3.002.502.001.501.000.500.00
Percent
Assessment Growth
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$1,215,237
Net Tax Levy
309,000)
value of $
Change to the Tax Levy
$10.96
Average home
(assessed
A 1%
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Levy Change Detail
2018 Tax
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Rate Projection
Tax
Ten Year
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Online Customer Service Experience
Papers
Title
Clearing Snow in Bike LanesEnhancing the City’s Environmental SustainabilityIncreasing the City's Use of Alternate FuelImplementing First Stage of Urban Forest StrategyImproving Citizens’
Supporting Service and Growth
Other Tax Supported Issue I#
Op 02Op 03Op 04Op 05Op 06Op 07
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Community Grants
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ill approve final Tier 1 amounts on Final ill approve final Tier 2 amounts through
ww
7
ff committee
udget Day
staff report in March
Tier 1 & 2 grant appeals will be considered by a staCouncil BCouncil a
–––
Changes approved by City Council on August 28, 201
Process Change forCommunity Grants•
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$8,447
$228,031$225,329
Estimate
$1,142,822
$1,604,629
acility & Travel Assistance Grants
Kind F
-
Grant Increases
Kind Facility / Travel Assistance
-
Grant Type Tier 1 (Community Groups)Tier 1 (Sports Groups) Tier 2 In Total
7%
Overall grant budget to be increased by 2%Generally, Tier 1 groups will receive an inflationary increase of 1.No increase for In
2019 •••
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Enterprise Operating Budgets
77
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se
ba
ve Reserve
-Balance GolfStorm Water
2018
+ve Reserve Balance ParkingGas DeliveryBuildingWaterSanitary
horizon
all enterprises to a positive position within
ve
ha
City Dividend AllowedCity Dividend Not Allowed
uld be to
e allowed by legislation to pay a dividend to the tax
seven enterprises are projected to have a negative
nterprise
ar
e
sho
h
tabilization reserve at the end of
Two of sThree Goal the short term planning Enterprise Overviews included in package provide highlights about eac
Enterprise Summary••••
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than budget
lower
re
a
projected actuals
D Single Detached permits are 28% below budget
Dividend allowed as per legislation
YTD Apartment permits are 53% below budget and YT
–
2018 due to reduced building permit revenues No
Building EnterpriseCurrent Year Summary••
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2 for
02
2
–
-2023
is above the maximum benchmark in
ve
eser
R
-lived
other proposed projects will produce high permit activity in
se residential homes indicates the economic downturn will be
i
The downtown development charge exemption expiry (Feb 2019) and2019The economic outlook is not as favourable in 2020 reasons such as interest rate hikes, CMHC forecasts, job layoffs,
and a natural slowdown from 2019 Past permit history and future developable land such as new low rshortThe Stabilization 2019 then begins to be drawn down each year and is below the
minimum benchmark in years 2021
Building EnterpriseBudget & Forecast Summary
•
•••
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Building EnterpriseExpenses & Revenues
81
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Building Enterprise5 Year Projection
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ty participation and wellness. This
al dividend to the City in accordance with
The Golf Enterprise continues to make an annuthe Level Playing Field agreementGolf continues to grow programs to support communiyear an inclusive program to support golfers living with
dementia was introduced and school golf programs were maintained
Golf EnterpriseCurrent Year Summary••
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m for all years of the forecast
u
nual debt payments are reduced
next five years
The deficit will decrease starting in 2022 when the an
–
Golf is Budgeting a small annual revenue over theThe stabilization reserve is below the minim
Golf EnterpriseBudget & Forecast Summary••
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Golf EnterpriseExpenses & Revenues
85
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Golf Enterprise5 Year Projection
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ofit and provides a
base
a pr
o increased hourly demand for parking
t
2018 projected actuals are higher than budget due and short term monthly parking arrangements with neighbouring apartments and condominiums while they complete major garage repairsParking
generates dividend to the tax
Parking EnterpriseCurrent Year Summary••
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to
TDM
ove
ab
2021
–
2021 when
2018, however, it
–
in 2019
at the end of
The impact of this has resulted in
programs, and additionally from 2019
tabilization reserve balance is projected to be
s
Cycling
he transfer to capital line which increases in 2020 due
Expenses are consistent each year with the exception of tthe Parking enterprise taking back the funding for the & due to the Parking Enterprise funding the City Hall Outdoor Spaces project.
larger deficits 2020 & 2021.The the maximum benchmark is expected to be drawn down Parking pays for all of its programming
Parking EnterpriseBudget & Forecast Summary
••
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Parking EnterpriseExpenses & Revenues
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Parking Enterprise5 Year Projection
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allowable
cost of
a maximum
presents
e
r
approach.
d to the tax base.
n
r than normal weather.
2018 actuals are better than budget due to cooleGas Delivery generates a profit and provides a divideThe dividend return based on a modified OEB service
Gas Delivery UtilityCurrent Year Summary•••
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he need for
years
t
um/maximum for all
Paper Op 08 outlines
forecast
Gas Delivery generates a profit across all years of theThe Gas Stabilization reserve remains within the minimIssue permanent resources to effectively manage Gas capital projects and
comply with legislation
Gas Delivery UtilityBudget & Forecast Summary•••
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Gas Delivery UtilityExpenses & Revenues
93
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Gas Delivery Utility5 Year Projection
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through to
-
t due to cooler than normal weather.
e
hasing and transporting commodity
tomers, as such it is not permitted to
us
The Gas Supply Utility is responsible for purcsupply to Ontario.Gas Supply rates operate as a flowcprovide a Dividend to the tax base.2018 actuals are projecting favorable to budg
Gas Supply UtilityCurrent Year Summary•••
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nimum balance across all years of the
tes to pass through savings to customers.i
The 2019 budget continues to maintain low raStabilization Reserve remains close to the mforecast.
Gas Supply UtilityBudget & Forecast Summary••
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Gas Supply UtilityExpenses & Revenues
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Gas Supply Utility5 Year Projection
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Stormwater
070, Water Infrastructure Program
-
reviews
17
INS-
her
recently (Sept 2017), these services were
Report Summary and Rate Options
viewed as part of the Water Infrastructure port & presentation
–
Budgets are discussed together during the budget and in otMost reProgram (WIP)Next few slides provide highlights of the WIP re
Water, Sanitary, and Overview•••
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of
Utility Rate
Breakdown
WIP: Combined
Increasing risk of infrastructure failure
100
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WIP: Capital Program Scenarios
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how increased
9 outlines
0
0
paper Op
recommended (and Council endorsed) a
ear phase in of maintenance funding
Water: $1.3MStormwater: $2.0MSanitary: $Issue maintenance funding will be used
ilities
––––
A maintenance gap exists in two of the three utStaff 5 yincreases
WIP: Maintenance Program Review Findings••
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2022
4.50%
2021
4.50%
2020
4.50%
2019
6.50%
or Rate Option 3
f
as
w
2018
6.50%
Achieved in 2018 and is proposed for 2019
Option 3
–
Three options presented to CouncilConsensus
WIP: 5 Year Rate Options••
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gher than the
hi
%
ate Pressures
tes effective January 1
anned to change January 1 in 2020 and beyond
l
As of 2019, Region is changing Water/Sanitary raCity rates will change March 1, 2019, but then are pApproved sanitary rate is 1projection used for WIP modeling
–––
Timing of Rate IncreasesRegional Rate Increase for Sanitary
WIP: R••
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4.5%
8.0%7.2%
6.5%
Total
Increase
1.4%0.9%
1.0%
-0.1%
Other
onsistent with
-
s c
i
0.6%0.0%2.1%
0.5%
Maint
enance
0.8%
2.3%5.2%
2.1%
(WIP)
Capital
1.7%4.8%0.0%
2.9%
Increase
Regional
Storm Water are:
Utility
WaterSanitaryStorm Total
Proposed rate increases for Water, Sanitary, and As noted previously, this increases presented during the Water Infrastructure Program review
Water, Sanitary, and Stormwater Rate Increase••
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pairs program by
Increased storm main re27%
•
in a
ing
water
clean
2018 Accomplishments
Watermainprogram resulted 48% decrease in discolouredquality complaints
WIP: •
106
of
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kms
Replaced 6.05 water, sewer and stormwater pipes
•
of sediment
2018 Accomplishments
tch basin cleaning
Implemented a new caprogram and removed 300 metric tonnesfrom catch basins
WIP: •
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ter valves to
Maintained 20% of waimprove the overall safety of the drinking water system
•
-
against
rties
2018 Accomplishments
Protected 2,200 propebackflow and crossconnection contamination
WIP: •
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red to budget
dget
u
Consumption of water was higher than budgetedAdministration costs are less due to staff vacanciesCost related to watermain breaks are less than b
–––
Projected 2018 results are favourable compaNo Dividend allowed as per legislation.
Water UtilityCurrent Year Summary••
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ive and the balance continues to grow
it
sitive across all years.
Forecasted results for the Water Utility are poThe Water Stabilization Reserve remains posbut does not meet the minimum balance within the forecast.
Water UtilityBudget & Forecast Summary••
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Water UtilityExpenses & Revenues
111
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Water Utility5 Year Projection
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favourable
red to budget
ich is consistent with the water utility
ditional transfer to capital, as approved by
d
Dividend allowed as per legislation.
Sewer surcharge volumes are higher than budget, whSavings in the Maintenance area offset the aCouncil in December
––
Projected 2018 results are compaNo
Sanitary UtilityCurrent Year Summary••
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but changes to a net expense for 2020
nimum benchmark level
The reserve balance remains well below the miReserve balance starts to grow again in 2023
abilization reserve remains in a positive
t
––
The utility is in a net revenue position for 2019,to 2022, returning to net revenue in 2023Despite the deficits noted above, the sposition throughout the forecast
Sanitary UtilityBudget & Forecast Summary••
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Sanitary UtilityExpenses & Revenues
115
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Sanitary Utility5 Year Projection
116
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unfavourable
Utility
red to budget
Storm sewer maintenance costs exceeded budget
–
Projected 2018 results are compaNo dividend allowed, as per legislation
Stormwater Current Year Summary••
117
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ion for the entire forecast and is growing
it
venue in each of the forecasted years
The Stormwater Utility is projecting net reThe stabilization reserve is in a positive poshowever it is well below the minimum benchmark
Stormwater UtilityBudget & Forecast Summary••
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Stormwater UtilityExpenses & Revenues
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Stormwater Utility5 Year Projection
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Resolution
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garding follow up items for staff
Resolution to be passed by Committee re
Operating Budget Resolution•
Operating Budget Issue Paper Index
Included in
IP # Description Proposed
Budget?
Op 01 Continuing Transitional Funding for Centre In The Square N/A
Op 02 Clearing Snow in Bike Lanes Yes
Op 03 Enhancing the City’s Environmental Sustainability Yes
Op 04 Increasing the City's Use of Alternate Fuel Yes
Op 05 Implementing First Stage of Urban Forest Strategy Yes
Op 06 Improving Citizens Online Customer Service Experience Yes
Op 07 Supporting Service and Growth Yes
Op 08 Maintaining Gas Utility Infrastructure Yes
Op 09 Maintaining Water Stormwater and Sanitary Infrastructure Yes
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CITY OF KITCHENER
2019 BUDGET ISSUE PAPER
ISSUE: Op 01 – Continuing Transitional Funding for Centre In The Square (CITS)
FUND: Operating
DEPARTMENT: Centre In The Square
PREPARER: Deborah Daub, Director of Finance, CITS
BUDGET ASK: $146,527 (funded from the Tax Stabilization Reserve Fund)
BACKGROUND:
In 2016, Centre In The Square (CITS) was allotted $250,000 for transition funding due to the
change to Mandate B that became a new policy from the City of Kitchener for CITS to follow.
This transition funding increased the total funding for CITS to $2,000,000 when it was added to
the $1,750,000 operating grant that was approved for 2016. Since then, the total funding
provided to CITS by the City has remained at $2,000,000, but the transition funding has been
decreased each year by the increase in the grant provided to CITS by the City. The transition
funding has been $250,000 in 2016, $218,500in 2017, and $182,870 in 2018.
RATIONALE / ANALYSIS:
The request reflects the decision taken by City Council in March 2015 tied to the new mandate
and the subsequent financial implications for CITS. As the new agreement between CITS and
KWS is implemented over the next 2 – 4 years(starting with the 2019/2020 season in
September 2019) and to continue to make the necessary adjustments for the Mandate fiscally
possible, CITS is asking for a continuation of this transition funding with a decrease of $36,343
from the 2018 amount. This would amount to an additional transitional funding of $146,527.
With the increase of the operating grant by inflation to $1,853,473, this additional funding will
leave the total funding for CITS at $2,000,000 matching the total amount received in 2016,
2017, and 2018.
In addition, in order to support several capital projects relating to health and safety, CITS is
requesting that any yearend surplus amounts in 2019 be retained by CITS and assigned to its
capital replacement fund. Any deficits would be split 50/50 between CITS and the City. The
current arrangement is that any surpluses or deficits are split 50/50 between CITS and the City.
CITS would like to retain any 2019 surplus to help fund upcoming capital projects such as the
replacement of the original stage fire safety barrier (fire curtain) and the replacement of the
remaining original stage jack lift mechanisms.
FINANCIAL IMPLICATIONS:
The transition funding will support the Front of House costs for our community partners (such
as the Grand Philharmonic Choir) and will allow CITS to continue to work with other smaller arts
presenting organizations within Kitchener. It also provides support for other Mandate activities
such as covering some of the costs of access to the Studio and Main Theatres.
RECOMMENDATION:
That approval be granted for additional transitional funding of $146,527 for the CITS to be
disbursed from the Tax Stabilization Reserve Fund at the request of the CITS Board, with
Council being notified of the request by email,
And that any yearend surplus in 2019 be retained by CITS to help fund its capital projects, but
any deficit be split 50/50 between CITS and the City.
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CITY OF KITCHENER
2019 BUDGET ISSUE PAPER
ISSUE: Op 02– Clearing Snow in Bike Lanes
FUND: Operating
DEPARTMENT: Infrastructure Services – Operations (Roads & Traffic)
PREPARER: Roslyn Lusk, Director, Operations (Roads & Traffic)
BUDGET ASK: None (included in proposed operating budget)
BACKGROUND:
On May 3, 2018, the Province released amendments to Ontario Regulation 239/02 (O.Reg. 239/02),
Minimum Maintenance Standards (MMS) for Ontario Highways. A major change in the MMS relates to
an enhanced focus on active transportation, namely winter maintenance of sidewalks and bike lanes.
Before this amendment, there were no requirements under the Province’s MMS to remove snow from
sidewalks and bike lanes.
In June 2018, Council approved components of staff report INS-18-023 (Winter Sidewalk Maintenance
Review) which will allow enhanced bylaw enforcement to achieve better compliance with the sidewalk
maintenance bylaw. In addition, City Operations staff in Parks & Cemeteries (PC) have increased their
sidewalk inspection and maintenance program to respond to the changes in the MMS. While the
proactive bylaw enforcement will attempt to address the legislative requirements for sidewalk clearing,
it does not address the legislative requirements for winter maintenance of bike lanes.
RATIONALE / ANALYSIS:
The City’s current winter maintenance program includes the clearing of snow from on-road bike lanes as
part of roadway maintenance where there is sufficient boulevard space for storing snow. Where there
is insufficient boulevard space, snow is stored in the bike lane until snow loading operations commence.
Snow loading from boulevards, corners at intersections and from bike lanes occurs when snow
encroaches into travel lanes or sidewalks, or when the snow piles become a sight line issue at corners.
Snow loaded away from these areas is transported to the city’s Snow Storage and Disposal Facility
(SSDF) located on Battler Road.
There is currently an inventory of 126 km of on-road cycling facilities within the City of Kitchener; that is,
62 km on Regional roads and 64 km on City roads. 33 km (17 km on Region roads and 16 km on City
roads) of the on-road cycling facilities do not have sufficient boulevard storage for snow cleared away
from the bike lane (i.e. curb-face sidewalks) and therefore do not receive winter maintenance. The City
currently winter maintains the remaining 93 km of on-road cycling facilities on both Region (45 km) and
City roads (48 km) that have sufficient boulevard storage. Figure 1 is a map identifying both the on-road
and off-road cycling infrastructure.
For the winter of 2018/2019, staff are recommending expansion of the winter maintenance program to
include an additional 11 km of bike lanes on City roads where there is insufficient boulevard for snow
storage. Together with existing on-road cycling facilities that were previously winter maintained, the
additional 11 km of bike lanes proposed for maintenance this year provides clear and direct connections
to other maintained trails, cycling facilities and/or the downtown. This additional service will bring the
inventory of on-road cycling facilities with winter maintenance on City roads to 59 km (or 92% of existing
City on-road cycling infrastructure).
1
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CITY OF KITCHENER
2019 BUDGET ISSUE PAPER
The legislation applies to all cycling facilities located within the municipal highway. The City also
maintains 65 km of off road cycling facilities in winter that do not fall under the new legislation. Based
on the proposed budget, a total of 169 km of cycling facilities (both Region and City) will be accessible to
winter cyclists in the City of Kitchener.
The proposed budget provides funding for winter maintenance of on road bike lanes for the short term,
until the Cycling and Trails Master Plan refresh is completed. The information gathered regarding
operational impact and costs associated with winter maintenance of bike lanes during the short term
will inform the development of the Cycling and Trails Master Plan.
City staff have engaged in a number of conversations with the Region and area municipalities. The
Region, Cambridge and Waterloo have indicated they will be continuing with status quo in terms of
winter maintenance, with removal of snow stored in bike lanes as soon as is practicable. City staff will
continue to participate in a working group with the Region and area municipalities to define a year –
round active transportation network.
FINANCIAL IMPLICATIONS:
Snow loading costs were estimated based on an average of 10 events requiring loading per winter
season. An average snow loading operations cost approximately $2,500/km per event. The impacts for
snow loading the additional 11 km of on road bike lanes for 10 events is $300,000; which includes
$275,000 for the snow loading and $25,000 in salt costs.
The financial impact of $300,000 does not contemplate the operational impacts of future cycling
infrastructure that may come online beyond 2019.
RECOMMENDATION:
For information.
2
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CITY OF KITCHENER
2019 BUDGET ISSUE PAPER
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CITY OF KITCHENER
2019 BUDGET ISSUE PAPER
ISSUE: Op 03 – Enhancing the City’s Environmental Sustainability
FUND: Operating and Capital
DEPARTMENT: Development Services –Development Services Administration
PREPARER: Claire Bennett, Corporate Sustainability Officer
BUDGET ASK: None (includedin proposed operating & capital budget)
BACKGROUND:
Corporate Sustainability is a recently established initiativeinDevelopment Services (DS) with a
corporate-wide mission to reduce greenhouse gas (GHG) emissions stemming from City
operations, while adapting to climate change impacts, lowering operating costs, meeting
internal and external climate targets and gaining recognition through leadership in
sustainability and innovation.
The program and associated actions willbe represented in the City’s first Corporate Climate
Action Plan (CorCAP), to be launched in 2019; given its ambitious scope and scale of influence,
the request herein is for an operating and one-time capital allocation for a reserve fund to
assist in implementing the plan.
RATIONALE / ANALYSIS:
An 8% absolute GHG reduction target was approved by Council in 2017, to be achieved by 2026
through a set of strategic actions, and corresponding implementation plan, in the areas of
buildings, pumping stations, fleet, lighting and waste. In addition to Council expectation, the
CorCAP is a deliverable within the Business Plan (DS) for 2019 and incorporates Infrastructure
Services business plan items (ie. Sanitary Review) as well as key priorities in the Strategic Plan.
Further, the CorCAP and sustainability program coordinates and satisfies external mandates in
the Green Energy Act/Electricity Act and with Sustainable Waterloo Region and
ClimateActionWR in addition to making the City eligible for certain FCM and other federal level
funding.
This issue paper outlines an operating budget for programming activities and any related
resource supports to focus on outreach and engagement activities as well as coordinating
corporate and community-wide climate data (asset damage from weather events, waste, fleet,
utilities, program participation, sensors - soil, weather, equipment, etc.). The program will
improve availability and quality of data for robust forecasting, trending, reporting and program
design for current and emerging capital and operating implications; though, the primary focus
will be to influence behavioural change through engagement programming, (ie. Lovemyhood
greening; driver behaviour) which is essential for reducing consumption/costs (with very small
overhead), while also improving staff morale - with particular opportunity for front-line staff
empowerment.
Corporate Sustainability, via the CorCAP, establishes a formalized climate management
program, including mechanisms to gather key data to measure, fund and communicate actions
in terms of cost, savings and carbon reductions. Through the proposed revolving fund, the
CorCAP action items will leverage planned capital expenditures, such as new builds/major
renovations, asset renewal, stormwater master plan items, etc. to align with strategic goals and
core functions to improve capacity through financial and efficiency savings and innovative
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CITY OF KITCHENER
2019 BUDGET ISSUE PAPER
deliverables. Further, SaveONenergy incentives are available through 2020 so there is a
significant financial argument to do applicable projects in the short term. There will be
corporate wide (and community) benefits to this allocation in the form of cross-departmental
operating savings from reduced energy and maintenance costs and process efficiencies,
improved reputation and compliance to internal and external mandates.
FINANCIAL IMPLICATIONS:
The one-time 2019 and 2020 capital contribution will be used strategically, to establish a
reserve that will invest in projects that have strong payback periods. The operational savings
will pay off project costs and be reinvested into further energy savings projects. The ongoing
operating ask will fund operating expenses - Fleet and Stormwater groups have allocated
contributions to the corporate sustainability operating budget.
Corporate Sustainability Budget Request
2019 Budget -Corporate Sustainability
Revolving fund $400,000 2-7 year payback projects, to be paired with planned capital
expenditures to leverage more efficient and innovative
solution.
Operating $129,000 $40,000 for program expenses as well as$89,000 for
contract staff ($30,000 from the Stormwater utility, $20,000
from Fleet, and $39,000 from DS Administration)
Total $529,000
RECOMMENDATION:
That an Energy Retrofit reserve fund be created to fund projects that result in energy (including
water and waste) savings.
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CITY OF KITCHENER
2019 BUDGET ISSUE PAPER
ISSUE: Op 04 – Increasing the City’s Use of Alternate Fuel
FUND: Operating
DEPARTMENT: Infrastructure Services – Fleet
PREPARER:Don Miller, Director of Fleet
BUDGET ASK: None (included in proposed operating budget)
BACKGROUND:
The City of Kitchener Fleet has utilized Biodiesel blends to fuel Heavy Duty Truck and Off Road
Equipment since the commissioning of the fuel distribution system at the Kitchener Operations
Facility in 2011. There is an opportunity to support the Corporate Climate Action Plan (CorCAP)
goals in reducing greenhouse gas emissions by increasing the use of alternate fuels.
RATIONALE / ANALYSIS:
Biodiesel is a renewable, clean-burning diesel replacement that is effective in reducing
greenhouse gas emissions. The Biodiesel specified is a derived from soybean oil feedstock and
manufactured to applicable Canadian General Standards Board (CGSB) standards for applicable
fuel types and blends. The fuel blends are used as follows:
Biodiesel is currently used at a minimum level of B-5 (5% Biodiesel) during cold weather
periods to ensure fuel stability, to avoid gelling and plugging of fuel filters.
Biodiesel is currently used at a level of B-20 (20% Biodiesel) during warm weather
periods.
The proposed increase to a level of B-50 (50% Biodiesel) would be implemented during
warm weather periods.
The Corporate Climate Action Plan (CorCAP) overall target for Fleet is 115 tCO2e annual with a
commitment of 805 tCO2e reduction by 2026. The 2016 baseline for Fleet GHG emissions were
3,560 tCO2e with a goal of 2026 fleet GHG emissions be 3,455 tCO2e. Along with other fleet
Initiatives, the full implementation and utilization of increased levels of Biodiesel to a B-50 (50%
Biodiesel) as proposed would support meeting these targets with an estimated annual
reduction of 162 tCO2e.
FINANCIAL IMPLICATIONS:
The estimated cost to increase the biodiesel content to a B-50 Biodiesel blend in summer
months is $71,960.
RECOMMENDATION:
For information.
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CITY OF KITCHENER
2019 BUDGET ISSUE PAPER
ISSUE: Op 05 –Implementing the First Stage of the Sustainable Urban Forest
Strategy
FUND: Operating
DEPARTMENT: Parks & Cemeteries, Infrastructure Services Department
PREPARER:Niall Lobley, Director, Parks & Cemeteries and
David Schmitt, Environmental & Urban Forest Project Manager
BUDGET ASK: None (included in proposed operating budget)
BACKGROUND:
Directed by Kitchener’s Strategic Plan (2015-2018), and following a comprehensive review and
community engagement process, staff presented Kitchener’s first draft Sustainable Urban Forest
Strategy at the May 7, 2018 (INS-18-025) Strategic Council Session. This strategy, once approved,
will act as the foundational plan that is required to establish a long-term approach to the way we
value and manage our urban forest.
With the public review process for the draft completed, staff will be presenting the final strategy
and long-term implementation plan for Councils consideration in early 2019. Council provided
strong indication during the strategy session that alongside a sustained implementation of the
plan, staff should identify opportunities for ‘quick wins’ early in implementation associated with
five priority areas:
1)Address areas of risk
2)Address key gaps (i.e. data collection, best practices, plan first)
3)Improve customer service
4)Continue work that will support tree planting on private lands, and
5)Protect trees
RATIONALE / ANALYSIS:
Staff have reviewed the Sustainable Urban Forest Strategy (SUFS) and current Forestry Program
to identify specific actions that can be undertaken immediately to respond to Council priorities.
A revised operating and capital program that is risk- and action-focused has been developed with
three key outcomes. These are:
A) Increase tree planting activities
The City has for several years removed more trees annually than it has replaced. This has been
significantly driven by the reaction to Emerald Ash Borer, but also reflects challenges within the
urban forest canopy. These issues have led to a significant backlog of tree planting needs.
1.Implement an accelerated tree planting program to start to address the existing street
tree backlog – more than doubling our current planting program to plant 2,000 – 2,500
trees over 3 years (Note: Planting activity will largely commence in fall 2019, with most
significant planting in 2020 and 2021).
2.Implement a partnership with external agencies to support private tree planting activities.
Outcomes: Seek to eliminate the existing tree planting backlog over 3 – 5 years; develop a
sustainable tree planting program that seeks to address potential for future backlogs; develop
canopy targets and move to meet these through both City and private programs.
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B) Identify and remove at risk trees
Trees are found adjacent to private property, trails and roads, City buildings, in our parks,
community centres and other facilities. Failure of part or all of a tree can be mitigated through
routine programmed works and a cyclical inspection program.
1.Implement apriority risk based inspection process which will ensure all City trees are
inspected to an agreed frequency.
2.Implement a priority based program of proactive work based on inspection that seeks to
mitigate risk.
Outcomes: Reduced potential for tree failure; over successive cycles reduced clean-up costs after
storm events; reduced tree related risk to residents and tree related liability for the City.
C) Improve customer service
Consistently a top 5 issue of customer contact through the Corporate Contact Centre on an annual
basis is related to tree planting and pruning. Ensuring a helpful and accurate response is provided
to our customers is important.
1.Implement customer service standards and define service levels in respect to City
response times to customer enquiries.
2.Proactively seek to inform customers and influence expectation through providing clear
messaging around tree related matters.
Outcomes: Reduce customer based complaints, develop an understanding of City responsibilities
for tree management, improve customer response times onurban forest matters and provide
information and support proactively on urban forest initiatives.
Forest Operations Technologist
The development of the Strategy has demonstrated the need for an additional resource to be
able to help implement the strategy and to help engage business improvements in forestry. In
support and addition to the above, two areas of pressure have been identified:
1.The need to better address and serve the customers of the forestry department,
internal and external, by systematic prioritization of work programming.
2.A resource is required to better manage and implement operational programs and
ensure data is captured and utilized in decision-making. The strategy has outlined where
there are data gaps that need to be filled, and where there are uses of data that can
support more effective service delivery.
The proposed budget includes the request for a Forest Operations Technologist to address these
issues.
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FINANCIAL IMPLICATIONS:
To support these ‘quick wins’, the following related capital accounts have been consolidated into
one Urban Forest Strategy account, Urban Forest, Naturalization, Woodland Parks and Emerald
Ash Borer. This will provide initial support to deliver on the priorities identified above.
Additional operational support is required to ensure that these programs can be initiated and
sustained. The proposed budget includes $235,000 to support the delivery of the above
outcomes to be allocated to:
Identify and remove at risk trees $100,000
Increase tree planting activities $125,000
Improve customer service $10,000
Total$235,000
The funding for the Forest Operations Technologist is within the current salary allocation within
Forestry. Over successive years of adding no staff to the Forestry compliment, and through
prudent allocation of resources, it has become possible to add an additional FTE to the Forestry
operating budget without impact to the overall budget. The forecasted budget for this position
is $111,000.
RECOMMENDATION:
That one Forestry Operations Technologist position be approved to better support forestry
related service delivery and citizen requests.
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CITY OF KITCHENER
2019 BUDGET ISSUE PAPER
ISSUE: Op 06– Improving Citizens’ Online Customer Service Experience
FUND: Operating and Capital
DEPARTMENT: Community Services Department – Customer Service Division
PREPARER: Jana Miller, Director, Customer Service
BUDGET ASK: None (included in proposed operating & capital budgets)
BACKGROUND:
In late 2016, the City began using a Customer Relationship Management (CRM) software which
helps track, manage and monitor customer interactions with the City through its Corporate
Contact Centre. When Council approved the new CRM, it was also envisioned that the CRM
would also eventually support a new online customer service portal which residents coulduse
to access, and follow-up on,a wide variety of municipal programs and servicesat their
convenience.
The idea of creating a centralized online customer service portal for citizens to access City
information, programs and services was raisedfrequently during the City’s recent Customer
Service Review. That review gathered input from more than 1,700 staff and 3,500 citizens
between February and August, 2018.
RATIONALE / ANALYSIS:
The creation of a one-stop, centralized and personalized online customer service portal (which
will be accessible from the front page of the City’s website) will allow residents to: access
information, get answers to questions, perform transactions, request services, report problems,
resolve issues and follow-up on their previous inquiries/complaints.
By signing into their secure online portal account, citizens will be able to:
Customize their online interactions with the City by connecting their account to the
specific services and information they want to access.
Initiate, track and receive updates on their service requests in one centralized online
location (instead of having to visit multiple webpages and log-in to multiple systems) no
matter how they initiate their requests (social media, online, phone, walk-in).
Receive information and assistance online that is consistent with what they would
receive when calling the Corporate Contact Centre for assistance.
Proactively receive information and notifications from a wide range of City services and
programs based on their own information preferences, location, site searches, etc.
All of these features will respond to citizens growing expectations to be able to access
municipal services and information online quickly and conveniently through self-serve options.
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FINANCIAL IMPLICATIONS:
The funding splits for the additional costs related to the online customer service portal are
shared between the tax-base and enterprises based on how the overall CRM costs are funded.
Capital Costs:
In order to create the online customer service portal, the City needs to purchase several online
tools that will work with our CRM to ensure information, business processes and data from a
variety of other city-wide systems (e.g. CityWorks, AMANDA) are combined to provide
customers with a seamless online customer experience:
Details Total Enterprise Funding Tax-Base Funding
Capital Costs for Online Portal $280,600 $134,688 $145,912
Existing Funding $161,976 $77,749$84,228
Funding Added to 2019 Forecast $118,624 $56,939$61,684
*Existing capital funding of $161,976 will come from the current CRM capital account
Operating Costs:
The online customer service portal will only be successful if its content is kept up-to-date and
meticulously accurate – otherwise residents will receive incorrect information and their service
requests will not be fulfilled correctly. The hundreds of business processes, plus additional
scripting and information that will be provided to residents so that they can walk themselves
through their online service interactions will require relentless identification, development,
updating and digitization. In order to complete this work, an additional staff resource
(Knowledge Management Associate) is required. As a comparison, the Region of Waterloo
currently employs two full time equivalents (FTEs) in order to complete similar work for their
CRM. Additionally, there will be some ongoing licensing costs for the portal which have been
incorporated into the costs below:
Details Total Enterprise Funding Tax-Base Funding
Operating Costs for Online Portal $225,575 $106,020 $119,555
RECOMMENDATION:
That one Knowledge Management Associate position be approved to support the customer
service online portal.
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2019 BUDGET ISSUE PAPER
CUSTOMER SERVICE PORTAL MOCK-UP
The following mock-ups have been created to help demonstrate the vision for the City’s new online
customer service portal and show to a few of the ways the portal might be used by residents. It is
important to note that the final product may not be exactly as shown below.
These two mock-ups below show the ‘dashboard’ that would appear once a resident has signed into the
portal from the front page of the City’s website:
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CITY OF KITCHENER
2019 BUDGET ISSUE PAPER
ISSUE: Op 07– Supporting Service and Growth
FUND: Operating
DEPARTMENT: Development Services & Community Services
PREPARER: Barry Cronkite, Chief Jon Rehill, Kim Kugler, Mark Hildebrand
BUDGET ASK: None (seeking approval of FTEs only)
BACKGROUND:
The creation of new permanent full time equivalent positions (FTEs) within the organization
requires City Council approval. This issue paper is seeking approval of four FTEs which are
required to support continued service delivery and to respond to growth pressures. Funding for
these FTEs has been built into the recommended operating budget through a combination of
growth funding and/or increased revenues.
RATIONALE / ANALYSIS:
Traffic Project Coordinator
Continued development, large scale infrastructure projects, a steady increase in permits issued
and overall growth of the city has significantly increased the workload required of the existing
Traffic Project Coordinator position. Accordingly, in September 2017, Council approvedthe hire
of a temporary (12 month) Traffic Project Coordinator to support these increased demands on
the work area. City Council also approved a new user fee for road occupancy permits and other
associated works (INS-17-067) and referred permanent status of that temporary position to the
2019 budget process so that staff could confirm that sufficient revenues are generated from the
new fee to fund a permanent position. Staff are now in position to confirm that the new fees
generate sufficient funding to make this position permanent.
ActiveNet Administrator
Over the past 8 years the City has seen significant growth in the number of residents using its
online system (ActiveNet) to register for direct City programs, Neighbourhood Association
programs, summer camps, events and programs at the market, and camps/lessons at Kitchener
Golf. Over this period of time no new staffing has been added to respond to the growing
number of customers using this system as their primary method to register for programs. As a
result, customers have had a number of negative experiences with discrepancies in fees
charged, inquiries left unanswered for a prolonged period of time, inability to apply LAC
(Leisure Access Card) funds through the system, and significant frustration regarding the online
search function. ActiveNet is currently only supported by one FTE. The addition of a second FTE
to support the increased customer use of ActiveNet would significantly increase customers
experience by: providing more timely responses to their questions and concerns, better
auditing to avoid discrepancies in fees being charged to residents, the roll out of a facility
booking module, and the implementation of ‘scan cards’ at our pools to eliminate the need for
paper tickets.
2010 2018 -Projected
Programs Available 6,858 19,610
Online Transactions 6,843 38,000
Online Revenue $751,764 $2,400,000
Gross Revenue (including online) $7,675,679 $12,200,000
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Inclusion Support Worker
The Senior Day Program provides a supportive and inclusive programming opportunity for frail
older adults living in the community that are no longer able to participate in traditional
programming due to a variety of physical, social and/or emotional limitations. The program is
highly utilized by the community and serves on average 27 individuals per day and 6,500
program visits annually. The Waterloo Wellington Local Health Integration Network (WWLHIN)
funds approximately 80% of the programs operating budget. In 2012, the WWLHIN provided
funding for two part time Inclusion Support Workers (ISWs) to support the increasing number
of people attending the program. Over the last two years, caregivers and families have
requested that staff consider expanding the program hours to coincide with regular business
hours. Extending the day programs hours would enable caregivers to maintain employment
and/or other interests while having their family member supervised in a day program setting.
This request is to convert two existing part-time staff into one permanent FTE in order to
provide an enhanced level of customer service for program participants and their families. By
making this change the hours of operation for the program would change from 9:30 am – 3:30
pm to 8:30 am – 4:30 pm. The WWLHIN has funded the two temporary part time positions
since 2012 and supports this operational change in order to respond to client demand.
Fire System Specialist
The Kitchener Fire Department relies on approximately ten different fire specific technology
systems and several corporate systems to fulfill its mandate for public and fire fighter safety.
As the community continues to grow, the number of systems and their complexity, continues to
grow as well requiring additional staff support. These fire technologies provide critical life
safety services to City of Kitchener residents and Kitchener fire fighters. The most important fire
technology system is the Communication System used for receiving 911 calls and dispatching
Fire Suppression crewson a timely basis to respond to emergency calls. The Communication
System is comprised of a variety of integrated components including Computer Aided Dispatch
System, Records Management System, 911 Emergency Phone System, Voice Radio System,
Station Alerting and Paging and Audio Logging. The Kitchener Fire Department currently has
only 1 permanent FTE and 1 temporary FTE in place (2 people in total) to support all of these
vital fire technology systems. Staff are requesting approval to convert the existing temporary
position into a permanent FTE. This position directly supports critical systems related to the
dispatch operations. As such, a portion of the funding for this role is being recovered from the
customers Kitchener dispatches for based on their share of call volumes.
FINANCIAL IMPLICATIONS:
No new funding is required for these FTEs.
RECOMMENDATION:
That a total of four FTEs be approved for the following fully funded positions: Traffic Project
Coordinator, Inclusion Support Worker, Fire System Specialist, ActiveNet Administrator.
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CITY OF KITCHENER
2019 BUDGET ISSUE PAPER
ISSUE: Op 08 Maintaining Gas Utility Infrastructure
FUND: Capital & Operating
DEPARTMENT: Infrastructure Services – Utilities
PREPARER:Sylvie Eastman, Utilities Engineer
BUDGET ASK: None (included in proposed operating & capital budget)
BACKGROUND:
Kitchener Utilities’ (KU’s) Engineering Group designs, tenders and manages all new and
replacement gas infrastructure. Engineers are responsible for overall planning, design, and
contract administration. Technologists are responsible for various activities over the course of
gas pipeline projects, including creating design drawings, performing various pre-construction
planning activities, inspecting gas pipeline construction, preparing contractor progress reports
for payment.
A temporary Utilities Engineer has been in place since 2016, two temporary Utilities Planning
and Design Technologist positions have been in place since 2014, and a third was hired in 2018.
These positions allow KU to be able to meet the legal requirement to relocate gas mains on
City/Regional/Provincial highways, and meet the increasing demand for new gas services
because of new development, particularly along the Light Rapid Transit (LRT) corridor.
A Draftsperson/Records person is responsible for updating and maintaining drawings per CSA
Z662 for Oil & Gas Pipeline Systems, the Safe Drinking Water Act, the Ontario Underground
Infrastructure Notification System Act and the Occupational Health and Safety Act. Failure to
communicate correct information about the gas and water distribution system can result in
fines, Orders, damage to the system, an uncontrolled release of gas or water, and ultimately
property damage, injury, or death. A temporary Draftsperson/Recordsperson has been in place
since 2017 to ensure drawings are kept up to date.
RATIONALE / ANALYSIS:
KU’s Engineering staff works on various project types:
Greenfield projects involve installing new gas mains and services for customers in new
subdivisions, which provide additional revenues.
Renewal (Redevelopment and Replacement) projects involve replacing existing gas
mains and services, and installing gas services to new customers in areas that are
already developed. These projects typically require more engineering staff resources for
design and installation than Greenfield projects. KU is legally required to do certain
projects, including servicing customers if their property is adjacent to an existing gas
main, and replacing existing gas mains and services if required by the road authority
(including the MTO, the Region, or the City) because the existing gas line is in the way of
their proposed works and needs to be moved. Other projects are required to maintain
the safety and integrity of the gas distribution system.
Figure 1 shows actual technologist labour hours by project type between 2011 and 2017, and
projected technologist labour hours through to 2025, based on the City’s Growth Management
Plan and 10-Year Capital Forecast. All staff are fully utilized, and without the requested staff
resources KU will be unable to accommodate projected growth while maintaining the current
level of service to our customers and other stakeholders.
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The two technologist positions created in 2014 and 2015 were originally requested to address
the increased workload associated with the LRT. However, workload has not decreased following
the completion of LRT construction, but rather has increased due to the following drivers:
Many existing steel gas mains are now approaching their design life of 60 years. If aging
infrastructure is not replaced, the resources required for maintenance and repair will
increase, along with the potential risks associated with leaking gas mains.
The size of storm sewers has increased due to greater flood risk from climate change. If
the existing gas infrastructure is not replaced/ relocated, there will be insufficient space
to upsize City/Region stormwater infrastructure to meet updated code requirements, and
flood damage may increase.
The MTO and the Region have both increased the number of transportation projects in
the past few years. This has resulted in greater conflict between existing gas mains and
proposed highway/roadway improvements.
The workload associated with Regional Municipal Consent (MC) applications has
increased substantially. MCs are required for more projects, and the labour required has
increased from a few hours to approximately a week per submittal.
The need for new gas mains and services is anticipated to increase, in order to meet the
targets of the City’s Growth Management Plan.
FINANCIAL IMPLICATIONS:
The total amount required for two (2) Utilities Planning & Design Technologists and one (1)
Utilities Engineer is $287,000. Source funding is the Gas Pipelines capital budget. These
positions have been temporarily filled over the past number of years so there is no impact to
the current budget.
The amount required for the Draftsperson/Recordsperson is $89,000 and the costs have been
split 50/50 within the proposed Gas and Water operating budgets.
RECOMMENDATION:
That a total of four FTEs be approved for 2 Utilities Planning & Design Technologists, 1 Utilities
Engineer and 1 Draftsperson/Recordsperson to maintain the integrity of the Gas and Water
systems.
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CITY OF KITCHENER
2019 BUDGET ISSUE PAPER
ISSUE: Op 09– Maintaining Water, Stormwater, and Sanitary Infrastructure
FUND: Operating
DEPARTMENT: Infrastructure Services – Kitchener Utilities; Operations- Roads & Traffic
PREPARER: Angela Mick; Leah Walter
BUDGET ASK: None (included in the proposed operating budget)
BACKGROUND:
Council endorsed the Water Infrastructure Program (WIP) and five-year rate forecast at a
strategic session on September 25, 2017. As a component of WIP, a maintenance program
review was conducted for the water, stormwater, and sanitary utilities. The maintenance
program review considered regulatory requirements, industry best practices, asset
management principles and associated master plans (e.g. Integrated Stormwater Master Plan).
WIPidentified that the stormwater utility has a maintenance gap of $2.0Mand the water utility
a maintenance gap of $1.3M. The sanitary utility review did not identify a maintenance funding
gap however included recommendations to optimize, enhance and coordinate the various
sanitary maintenance programs. Council endorsed the phase-in of the maintenance gap over a
5-year timeframe to allow time for programs to be developed and resourced and to align with
the 5-year rate forecast. The phase-in for the stormwater program is $400,000 annually and for
the water program is $260,000 annually.
In 2018, Council approved the allocation of WIP maintenance funding for storm main repairs,
catch basin cleaning, watermain flushing, water valve maintenance, cross connection control
program, underground infrastructure utility locates. Benefits realized from the 2018 funding
allocation include:
27% increase in deficient storm mains repaired
The watermain cleaning program has resulted in a 48% decrease in discoloured water
complaints.
20% of the water valves were maintained to improve the overall safety of the drinking
water system.
2,200 properties are protected against backflow and cross-connection
Approximately 17,000 locates completed
RATIONALE / ANALYSIS:
Stormwater Utility
The 2019 stormwater maintenance program funding allocation is for watercourse maintenance,
catchbasin/manhole casting repairs and other programs to mitigate environmental
impacts. The improvements to these programs lead to better conveyance of stormwater
resulting in reduced flooding, regulatory compliance, reduced risk of litigation and improved
service to customers. Table 1 provides a summary of the stormwater maintenance program
gaps and proposed 2019 funding allocations.
Sanitary Utility
To address sanitary program needs, a contract Operations Technologist was retained in 2017 to
implement program improvements for pumping stations, repairs to sanitary mains, laterals and
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maintenance holes. In 2018, the Operations Technologist enhanced the existing hot spot
flushing program to address areas that are most affected by sanitary backups and incorporate
areas of high grease or significant sags identified through the CCTV program. New operational
programs that the Sanitary Utility plans to implement in 2019 include a preventative flushing
program of sanitary mains outside of the hot spot program and CCTV camera inspections of
laterals to identify defects and plan repairs before a customer experiences a sewage
backup. There is an ongoing body of work associated with delivering sanitary maintenance
programs and a full-time permanent Operations Technologist is required to support the
Sanitary Utility.
Water Utility
The 2019 watermaintenance program funding allocation is for continued implementation of
the watermain cleaning and valve maintenance/replacementprogram. A hydrant maintenance
program is proposed to protect against corrosionand increase reliability of the hydrant
performance. In addition, regulatory changes were implemented in January 2018 that require
licensed drinking water operators to be present to witness all cut and caps and all final
connections to ensure that the drinking water system is not compromised during these
activities. Table 2 provides a summary of the water maintenance program gaps and proposed
2019 funding allocations.
Temporary staff have been used throughout 2017 and 2018; however, they do not have water
licenses and are not permitted to operate and in many cases perform maintenance activities on
the drinking water system. It is very difficult to attract temporary staff with water licenses.
Staff are recommending the addition of three (3) full-time construction and maintenance
operators to address the need for qualified staff to perform the additional maintenance
activities and meet the new regulatory requirements described above.
FINANCIAL IMPLICATIONS:
Tables 1 and 2 provide a summary of the 2019 allocation of maintenance funding to address the
gaps identified through the Water Infrastructure Program. As previously endorsed by Council,
the $400,000 for stormwater maintenanceand $260,000 for water maintenance represents the
year 2 funding allocation of the 5-year program phase-in. The addition of three (3) full-time
construction and maintenance operators at a total maximum cost of $340,000 is proposed to
be funded through a combination of both existing funding and 2019 water utility funding.
While the sanitary utility does not have a maintenance funding gap, program needs and
opportunities to optimize various sanitary services require the addition of one (1) fulltime
Operations Technologist at a cost of $111,000. Funding has been re-allocated from the existing
sanitary budget to accommodate this position.
RECOMMENDATION:
That a total of four FTEs be approved for 1 Sanitary Operations Technologist, and 3
Construction and Maintenance Operators to maintain water and sanitary infrastructure.
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$1.2M
$45,000$20,200
Gap
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$327,525$155,400$215,075$226,800$210,000
Financial
Remaining
$0$0$0$0
2019
$121,675$178,325$100,000
Allocation
$0$0$0$0$0$0
2018
$400,000
Allocation
locations
Gap$45,000
Total
$449,200$155,400$393,400$626,800$210,000$120,200
Financial
R
and Proposed 2019 Funding Al
BUDGET ISSUE PAPE
CITY OF KITCHENER
9
aps
201
maintenance, spill response
Benefits of Program
Prevents blockages to reduce the risk of flooding, damage to the downstream environment and maintains channel capacity for increased flows during large rain eventsProvides for proper
testing and disposal to meet regulated requirements for sediment managementInspection and maintenance of catchbasins and maintenance holes to ensure proper drainage and that the structure
is not a hazard in the right of way (per provincial maintenance standards)Ensures LID infrastructure (e.g. infiltration facilities, permeable pavement, etc.) are functioning as intended
and prevents blockages that could cause flooding and water quality impairment.Protects the integrity of the storm sewer main and prevents main breaks that have the potential to cause
sinkholes and flooding to public and private property.Provides leaf collection in mature treed areas to prevent leaves from covering the catchbasins and decreases risk of floodingIncludes
various other program areas such as sweeping, culvert maintenance, storm sewer
Summary of Stormwater Maintenance Program G
Program
Table 1:
Watercourse Inspection & MaintenanceSediment ManagementCatchbasin/ Maintenance Hole Inspection & MaintenanceLow Impact Development (LID) MaintenanceStorm Main RepairLeaf CollectionOther
Programs Total Financial Gap Remaining
144
$0$0
-
Gap
O
$130,000$636,000$766,000
Financial
Remaining
$60,000$21,000
2019
$200,000
Allocation
$59,000$59,000$55,000$87,000
2018
Allocation
Gap$60,000$21,000$75,000
Total
$389,000$755,000
locations
Financial
R
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9
and Proposed 2019 Funding Al
201
bacteria related corrosion,
-
aps
n.
overall water quality.
break costs. *Includes new
Benefits of Program
visible water infrastructure
Removal of iron and manganese build up to decrease reactive discoloured water flushing, reduce ironimprove water quality and increase Ensure that valves will work to isolate mains in
emergencies and for construction to minimize disruption length, number of customers affected and reduce watermainrequirements for witnessing cut/caps and new connectionsDecrease the
number of potential cross connections in the system to prevent drinking water contaminatioRegulatory requirement to test hydrants annually, winterize to ensure they don’t freeze, keep
clear of snow, maintenance for painting for corrosion protection and customer confidence in the only To prevent damage to underground infrastructure, potential injuries and fines by
marking out underground mains for construction
Summary of Water Maintenance Program G
:
2
Program
Table
Watermain cleaningValve maintenance & replacement program*Cross Connection Control ProgramHydrant operation and maintenanceUnderground utility locates Total Financial Gap Remaining