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HomeMy WebLinkAboutFinance & Admin - 1993-12-08 SFAC\1993-12-08-SPE FINANCE AND ADMINISTRATION COMMITTEE MINUTES DECEMBER 8, 1993 The Finance and Administration Committee met this date, commencing at 1:10 p.m., under the Chairmanship of Councillor C. Zehr with the following members present: Mayor D.V. Cardillo, Councillors B. Stortz, T. Galloway, G. Lorentz, J. Smola, M. Wagner, C. Weylie, J. Ziegler, M. Yantzi and G. Leadston. Others present: Messrs. T. McKay, J. Gazzola, J. Wallace, R. Freeborn, F.S. Graham, D. Suzuki, R.W. Pritchard, J. Hancock, S. Klapman, L. Ryan, O. den Ouden, K. Bowman, B. Stanley, T. Clancy, R. Arnot, T.B. Stanley, B. Kuntz, L. Neil, G. Sosnoski, Ms. V. Gibaut, Ms. S. Frenette, Ms. L. Fryfogel and Ms. D. George. The purpose of the meeting was to consider the 1994 Operating Budget as recommended by the Administrative Review Committee. 1. 1994 OPERATING BUDGET Mr. Gazzola provided an overview of the budget process noting that the starting point in 1994 is the 1993 approved budget net of reductions due to the Province's Expenditure Control Plan. He stated that the presentation this date will deal only with special circumstances as previous direction had been given that the 1994 budget amounts would not exceed the approved 1993 amounts. He added that the Social Contract which has a significant impact on the municipality, has no budget impact. Mr. Gazzola informed the Committee that inflation expenses have been budgeted at 0% and revenue inflation at 2%. He noted that Departmental expenditure increases averaged 4.95% and have been reduced through the Administrative Review to 2.68%. He further noted that in keeping with the direction of Council that options be provided to allow a reduction to as low as 0%, staff have developed three separate lists. List A illustrates the net reductions already adopted by the Administrative Review, List B outlines reductions for the Committee's consideration, and List Z outlines possible reductions which are not recommended by staff. Mr. Gazzola reviewed samples from Lists A and B, noting that if implemented, List B reductions would total approximately $400,000.00 and result in a mill rate reduction of .7%. Councillor Ziegler suggested that the Committee accept all of the List B options and add back items to the individual Department budgets if appropriate. He also noted that details have not been provided concerning staff conferences and training. Mr. McKay replied that staff have reported on the in-house training program only as directed by Council and not the general conference budgets of individual Departments. In response to a question from Councillor Yantzi, Mr. Gazzola pointed out that all Departments had submitted items for List B on the basis that these constituted an approximate 5% reduction in the Department budget. Meetings were then held with Department representatives to obtain their input. Mr. Gazzola reviewed a summary of List Z items, noting that if implemented, the entire List would have a value of $1,800,000.00. Mr. Gazzola advised that raw assessment changes show an increase in residential and a decrease in commercial assessment, with an overall impact of one quarter of a percent. He noted that indicators suggest assessment may be as much as one half of a percent, though nothing has been finalized at this time. He reviewed revenues and expenditures, noting that though the latter have increased slightly, revenues are down and as a result the net levy has been increased by $1,400,000.00 to reflect this shortfall. He also noted that grants have decreased in value by approximately 20%. Mayor Cardillo entered the meeting at this time. Mr. Gazzola then reviewed net expenses by Department and noted that the levy increase presently stands at 2.28% prior to any consideration of the options in Lists B and Z. Mr. Gazzola provided an analysis of changes in the levy, noting that the largest factor is revenue loss due to a decrease in interest income. He pointed out that there are only FINANCE AND ADMINISTRATION COMMITTEE MINUTES- 121 -DECEMBER 8, 1993 1. 1994 OPERATING BUDGET (cont.) two new items in the entire budget (East Forest Trail Park and the Joint Health and Safety Certificate) with a total value of $16,000.00 and this amount is offset by a net reduction of $93,000.00. He reviewed the annualization cost summary and revenue changes. A brief discussion took place as to how anticipated revenues are projected, specifically in relation to building permits. Councillor Leadston entered the meeting at this time. Mr. Gazzola stated that if the levy increase remains at 2.28%, this would translate into a $12.00 increase in the City's portion of the tax bill. He then reviewed the overall impact on the average residential customer, property tax splits and a comparison of mill rate increases relative to the Consumer Price Index (CPI). With regard to the latter, he noted that unlike the Region and the School Boards the City has remained at or very near the Index. Councillor Zehr asked that when referring to the CPI it should be stressed that the figures in the presentation are cumulative. Mr. Gazzola reviewed the changes as a result of the Expenditure Control Plan and the Social Contract which have had an impact on the municipality of $1,100,000.00 and $2,100,000.00 respectively. He advised that this translates into a real impact in 1994 of 5.64%, noting that if it were not for these initiatives there would have been a tax decrease in 1994. Mr. McKay referred to a report which was circulated to Council summarizing the impact of the service reductions suggested by Council during a prior brainstorming session. Councillor Weylie pointed out that many aspects of the report involve the elimination of programs and staff, and since personnel matters are involved any detailed discussion of the report should be in caucus. Councillor Lorentz disagreed and requested comment from Mr. McKay. Mr. McKay replied that he was not prepared to respond and it is Council's decision to decide if and how it would use the material in the report. Councillor Yantzi indicated his willingness to put forward a motion that the report be accepted as information and that no further action be taken. Councillor Stortz agreed, adding that the report should be treated as background information. Councillor Lorentz indicated his partial agreement with Councillor Yantzi, noting that he is not looking to drastically reduce services but may be interested in some of the reductions. He cautioned that the contents of the report should not be disregarded entirely. Councillor Galloway noted that the report does not make reference to his suggestion regarding the concept of compression at the managerial level. Mr. McKay indicated that a report in this regard is not available at present and would have to be dealt with separately. On a motion by Councillor M. Wagner - It was resolved: "That Council receive, as background information, the report of Mr. T. McKay concerning various service and staff reductions, and that circulation remain limited to members of Council, and further, That no action be taken at this time concerning the contents of the report, but that it be used in future if necessary." Mr. Gazzola reviewed the 1994 Operating Budget for all Division of the Parks and Recreation Department, highlighting any changes in comparison to the 1993 budget. Mr. Gazzola noted net decreases in expenditures for the Administration, Business Facilities and Parks Operations Divisions of -.59%, -1.91% and -1.04% respectively. Councillor Lorentz inquired as to the present arrangement for removal of snow from the City Hall ice rink. He advised that he was told it would 1. 1994 OPERATING BUDGET (cont.) not be removed on a daily basis in order to save money and expressed concern over possible liability claims. Mr. McKay replied that at present the snow will be collected based on the amount accumulated, and this approach will be re-evaluated in the Spring. He assured Councillor Lorentz FINANCE AND ADMINISTRATION COMMITTEE MINUTES- 122 -DECEMBER 8, 1993 that snow is not dropped in its present location without regard to weather conditions. Mr. Graham pointed out that an initially the snow was piled closer to the building but has since been moved to the curb to reduce icing on the sidewalk. Councillor Stortz added that eventually this will become part of downtown snow removal. Councillor Ziegler inquired as to expenditures in the Parks and Recreation Department involving conferences and overtime. Mr. Gazzola replied that the presentation this date is intended to deal only with changes from the 1993 budget. He indicated that the information requested can be provided and broken down in terms of the number of staff and dollars involved per Division though this would take time. Councillor Zehr suggested that this issue be dealt with on a global rather than an individual Department basis. Mr. McKay suggested that this be dealt with when proposed cuts are addressed, noting that there is a $25,000.00 reduction presently on the List. Mr. Gazzola requested clarification of whether Councillor Ziegler is interested in budget or actual amounts as well as conference details. Councillor Ziegler advised that he is looking for detailed information on conference expenses and overtime for all Departments. Mr. McKay replied that staff would attempt to compile this information by December 10, 1993. Councillor Zehr clarified the request as applying to conference and training information for the entire municipal administration broken down by Department and including dollar figures and the number of individuals attending. Councillor Ziegler stated that he would like the above information before the final budget meeting scheduled for January 21, 1994. Councillor Zehr suggested making a list of additional information requested by December 10 and then determining the amount of additional time required to comply. Councillor Ziegler offered the opinion that the items requested at previous budget meetings had not been supplied in their entirety and noted his request relative to Management and Supervisory level duplication. Councillor Zehr asked that staff review the 21 items previously requested and determine by December 10 how much additional time is required to respond to these. With respect to conferences, Councillor Lorentz also asked to see a rationale for why staff attended particular conferences. Councillor Zehr asked that all of above requests relative to conference and training expenditures apply also to the Mayor and Council. Councillor Ziegler clarified his request for information on overtime expenditures, stating that he is interested in knowing where overtime is being paid and the cost per Department as well as what level of staff are receiving overtime payments. Mr. McKay replied that all positions below Job Grade 21 are eligible for overtime payments, however, since the Social Contract no overtime is being paid except in emergency situations. He suggested that any examination of overtime should also include a review of the corresponding salary account as in many cases overtime is used as a stop gap measure prior to filling positions. Councillor Ziegler indicated that he was satisfied with the explanation provided by Mr. McKay. Councillor Leadston expressed concern over the City's liability and a potential loss in rental income resulting from instances where a group will not use a City ice surface because it is too rough or damaged. He referred to a recent liability claim in the City of Vancouver. Mr. den Ouden replied that staff have met with the City's Insurers to discuss the impact of this claim on the City of Kitchener. Mr. B. Stanley indicated he does not recall any instances where a group refused to go on the ice, but if this were the case, revenue loss would be minimal. Councillor Zehr asked that further information be provided at the January 17, 1994 meeting of the Community Services Committee. Mr. Gazzola highlighted the 1994 Operating Budget for the Recreation Division, noting a net increase of 1.5%. 1. 1994 OPERATING BUDGET (cont.) Councillor Stortz noted a reduction in the City of Waterloo's grant to Kitchener relative to use of the Breithaupt Recreation Centre and asked whether a corresponding drop in usership of Kitchener pools by Waterloo residents had taken place. Mr. Graham replied in the affirmative as regards the Breithaupt Centre, noting that he anticipates the facility will again be at full capacity use sometime in 1994. Councillor Stortz asked that this issue be flagged for future reference. In response to a question from Councillor Galloway concerning the $1,600.00 parking lot lease in the Doon Valley Golf Club budget, Mr. Gazzola advised that this is an incorrect entry and should appear in the Rockway Golf Course budget. FINANCE AND ADMINISTRATION COMMITTEE MINUTES- 123 -DECEMBER 8, 1993 Councillor Leadston inquired as to the projected revenues for both golf courses once food services have been contracted. Mr. Graham replied that staff do not anticipate a significant revenue increase and Mr. Stanley advised that staff are reviewing the proposals at this time and will meet shortly. Councillor Leadston referred to the revenue potential of night ball technology and Mr. Stanley indicated that he would speak with staff and prepare a report for consideration by the Community Services Committee. Councillor Galloway reminded the Committee that the 9 hole addition to the Doon Club still requires Council approval. Councillor Lorentz asked whether it would be feasible to implement flexible closing dates for the City golf courses in anticipation of increased revenues. Mr. McKay replied that staff are transferred to the Fall and Winter Works Program once the courses are closed and there would be additional costs involved. He advised that in his opinion extending the closing date would not be worthwhile. Councillor Zehr indicated that this item could be discussed with staff and included in the above report on night ball technology. The Committee then revisited the previous motion by Councillor Wagner concerning Mr. McKay's report on service reductions. Councillor Zehr re-read the motion and suggested that it be withdrawn and revised. Councillor Wagner indicated it was not his intention to limit circulation of the report to members of Council. Councillor Zehr suggested that the issue relative to circulation be deleted from the motion and that no further action be taken on the report at this time. Councillor Yantzi pointed out that this was his original intention. Councillor Zehr read the revised motion and suggested it would be inappropriate to not release the document if Council is taking no action on the contents. Councillor Lorentz clarified that the report is based on a "what if" scenario, however, selected items in the report should be discussed. On a motion by Councillor B. Stortz - It was resolved: "That the previous motion this date by Councillor M. Wagner regarding circulation and action on the report of Mr. T. McKay concerning a reduction in service be withdrawn." On a motion by Councillor B. Stortz - It was resolved: "That Council receive, as background information, the report of Mr. T. McKay concerning various service and staff reductions, and that no further action be taken at this time." 1. 1994 OPERATING BUDGET (cont.) Mr. Gazzola noted the List B item relative to an increase in the golf course dividend. Councillor Galloway inquired as to why the golf courses are run as dividend yielding enterprises and Mr. McKay clarified that this is traditional across the country where a municipality is not the sole provider of a service. Mr. Graham pointed out that increasing the dividend would produce a minimal effect and would limit capital improvements. On a motion by Councillor J. Ziegler - It was resolved: FINANCE AND ADMINISTRATION COMMITTEE MINUTES- 124 -DECEMBER 8, 1993 "That the dividend paid by the golf course enterprise be increased in 1994 from $4,000.00 to $8,000.00." Mr. Gazzola reviewed List Z relative to the Parks and Recreation Department and discussion took place concerning the elimination of a temporary employee at the Southwest Optimist Park. Mr. Clancy outlined the history of the Park, noting that the level of maintenance would decline with the staff reduction and may result in the loss of tournament revenues. In response to a question from Councillor Lorentz, he advised that the offsetting revenue would be approximately $8,000.00. Councillor Ziegler inquired as to the status of the Thursday Market, elimination of which is on List Z. Mr. Stanley noted that attendance has not been bad this year but shoppers have been lost due to the relocation of the City Hall and an overall decrease in downtown business. Councillor Yantzi cautioned against closing the Thursday Market and indicated he would not support any of the options on List Z. In response to a question from Councillor Ziegler, Mr. Clancy further clarified that Monday to Friday use of the Southwest Optimist Park would not be affected by the elimination of a temporary employee, but weekend use would and would likely result in a loss of revenue, though some tournaments may continue to use the site. Moved by Councillor Ziegler - "That the 1994 Operating Budget of the Parks and Recreation Department be reduced by $18,000.00 to reflect the elimination of a temporary employee at the Southwest Optimist Park." Councillor Wagner suggested that there is more at stake in this instance than money and the recommendation of Councillor Ziegler amounts to a reduction in the level of service. Councillor Stortz added that the impact of the motion would be counter productive, as the City is attempting to attract more tournaments. Councillor Galloway noted that eliminating the employee would result in a saving greater than the amount of revenue lost. Mr. Clancy pointed out that there would also be an impact on the Southwest Optimist Club which has invested more than $200,000.00 in the site, and with whom the City has an agreement. Mr. Clancy also stated that eliminating the employee would hurt the City's chances of attracting tournaments. Councillor Leadston asked whether other staff could be relocated to offset the reduction and Mr. Clancy replied that staff hours have already been reduced at all facilities and all of the current staff are occupied at other sites. The motion by Councillor Ziegler to eliminate one temporary employee at the Southwest Optimist Park was voted on and . LOST Brief discussions took place concerning two other items on List Z, namely, closing the Farmers' Market facility on non-market days and eliminating the Day Camp. No action was taken on either of these items. Mr. Gazzola reviewed the 1994 municipal appropriation for Project Lift and noted a net reduction of -1.10%. He referred to a single item on List B involving a maintenance reduction and fee increase. Mr. D. Smith was in attendance on behalf of Project Lift and noted that a newer fleet will result in reduced maintenance costs, and that he has no objection to the $10,055.00 reduction in this area. 1. 1994 OPERATING BUDGET (cont.) On a motion by Councillor J. Ziegler - It was resolved: "That the 1994 municipal appropriation for contractual services involving Project Lift be reduced by $10,055.00 to reflect a maintenance reduction and fee increase." On a motion by Councillor B. Stortz - It was resolved: "That the 1994 municipal appropriation for contractual services involving Project Lift be approved, as amended to reduce the amount by $10,055.00 relative to a maintenance reduction and fee increase." FINANCE AND ADMINISTRATION COMMITTEE MINUTES- 125 -DECEMBER 8, 1993 Mr. Gazzola reviewed the 1994 Operating Budget for all Divisions of the Planning and Development Department and noted a net increase of 3 %, in part due to a drop in building permit revenue. Councillor Galloway inquired as to the dollar value of the Housing Division net of Kitchener Housing Inc. costs and Ms. Frenette advised that the amount is $124,000.00. The Committee then considered the items on Lists B and Z. Mr. Klapman pointed out that the Urban Design Award Program is part of the advertising budget reduction referred to in List B. On a motion by Councillor B. Stortz - It was resolved: "That the 1994 Operating Budget for the Planning and Development Department be reduced in the amount of $14,000.00 relative to a grading certificate fee and a reduction in the advertising budget." Councillor Ziegler asked for clarification of the item on List Z involving the elimination of co-op students in the Department for a saving of $20,000.00. Mr. T.B. Stanley advised that co-op students have been hired by the City since the early 1980's and have provided special project input (i.e. Fire Station Location Study) and have otherwise acted as key resources for the Planning Division. He also referred to a negative impact on the University Co-op Program. Councillor Galloway advised that he is in favour of retaining co-op students, and if appropriate, expanding their use at the expense of full-time positions. Councillor Wagner suggested the use of co-op students from the two local high schools who have similar programs. Mr. Klapman referred to the three reports circulated this date concerning Housing Division costs, the implication of delaying implementation of Stage 7 (Comprehensive Zoning By-law), and a summary of activity and staffing in the Development Division from 1982 to 1993. On a motion by Councillor B. Stortz - It was resolved: "That the 1994 Operating Budget for all Divisions of the Parks and Recreation Department be approved as recommended by the Administrative Review Committee and amended this date to reflect a $4,000.00 increase in the golf course dividend." On a motion by Councillor B. Stortz - It was resolved: "That the 1994 Operating Budget for all Divisions of the Planning and Development Department be approved as recommended by the Administrative Review Committee and amended this date to reflect a combined $14,000.00 reduction relative to a new grading certificate fee and a reduction in the advertising budget." 1. 1994 OPERATING BUDGET (cont.) Mr. Gazzola reviewed the municipal appropriations for contractual services involving the K-W Visitor and Convention Bureau and the Humane Society, noting that both budgets are at the same dollar level as 1993. Councillor Stortz pointed out that there is a built-in inflationary factor for each subsequent year of the Humane Society contract and Mr. Gazzola indicated that he hoped the City would be able to get by with same dollar amount in 1994. Councillor Galloway suggested that consideration be given to services involving the trapping and collection of nuisance wildlife, notably raccoons, skunks and foxes. On a motion by Councillor M. Wagner - It was resolved: "That the 1994 municipal appropriation for contractual services involving the K-W Visitor and Convention Bureau be approved." FINANCE AND ADMINISTRATION COMMITTEE MINUTES- 126 -DECEMBER 8, 1993 On a motion by Councillor B. Stortz - It was resolved: "That the 1994 municipal appropriation for contractual services involving the K-W Humane Society be approved." Mr. Gazzola outlined the 1994 Operating Budget for the Kitchener Public Library Board (KPL), noting a net increase of 3.53%, primarily due to the phasing in of pay equity increases. Ms. P. Walshe, Chief Executive Officer (nee Chief Librarian and Secretary-Treasurer), and Mr. T. Polzin, Chairman, appeared on behalf of the Kitchener Public Library Board. Councillor Lorentz put forward a motion to approve the 1994 Operating Budget for the Kitchener Public Library Board as recommended by the Administrative Review. Councillor Galloway noted that there is no List B for the KPL Board and Mr. Gazzola advised that the Board may also be faced with additional Provincial grant reductions in 1994. Mr. McKay added that the bulk of the pay equity costs will have been realized with the 1994 Budget, however, the KPL may be further impacted by the second stage of the pay equity legislation. Councillor Stortz inquired as to the impact on the KPL of the limited closures proposed by the Waterloo Public Library. Ms. Walshe indicated that an increase in general use has been documented and that between 40,000 and 60,000 patrons use the Main Branch of the KPL each month. She also noted a 13-18% increase in circulation. Councillor Stortz expressed an interest in that portion of the increase relative to Waterloo ratepayers. Councillor Ziegler requested further detail concerning the $6,000,000.00 KPL budget on or before the December 10, 1993 meeting of the Finance and Administration Committee. Ms. Walshe advised that details had been submitted with the Board budget and Mr. Gazzola displayed a comparative sheet showing KPL budgets in the years 1992, 1993 and 1994. Councillor Ziegler requested a copy of the budget sheet referred to by Mr. Gazzola this date. Councillor Lorentz noted that the fee for out-of-town use was previously abolished, and that this initiative should be revisited, especially in light of the decision to implement limited closures in Waterloo. He clarified that he has no difficulty with the abolition provided both municipalities provide an equal level of service. Mr. McKay noted that in 1977 the non-resident fee was eliminated Region-wide and suggested that the City wait for a period of one year to gage the impact of the limited closure. 1. 1994 OPERATING BUDGET (cont.) Councillor Ziegler inquired as to the increases in "professional fees" for the KPL since 1992 and Ms. Walshe replied that these reflect increases in consulting fees for the proposed library addition. Mr. McKay suggested that this may be one of the areas where cuts have to be made to meet the $5,000.00 budget reduction target. Councillor Ziegler asked that in future budget details be provided relative to the Kitchener Public Library Board. Mr. McKay clarified that both The Centre In The Square and the KPL operate under Boards of Management, and staff do not feel that they have the right to dictate specific line by line decisions, only to deal with the overall appropriation. Mr. Polzin pointed out that of the 3.53% increase the vast majority relates to pay equity and that the actual adjusted budget increase over 1993 is only .67%. Councillor Galloway expressed frustration over the comments of Mr. McKay concerning the cost centres of independent Boards. He noted that City Operating Departments are submitting budgets at or near 0%, whereas the Boards are making submissions above the targeted level. Mr. Gazzola reminded the Committee that pay equity is the major factor and that unlike the City which offset this cost over a single year, the Boards have been forced to phase this increase in over a five year period on the basis of the shear number of female staff. Mr. Gazzola added that both Boards have contributed their full share of Social Contract and Expenditure Control Plan costs. FINANCE AND ADMINISTRATION COMMITTEE MINUTES- 127 -DECEMBER 8, 1993 Councillor Lorentz indicated that he would insure that the issue of use of Kitchener Library facilities by Waterloo ratepayers would be placed on the next agenda of the Twin Cities Committee and a report submitted at a later date. Councillor Ziegler asked that further discussion of the KPL budget take place at the December 10, 1993 meeting. On a motion by Councillor G. Lorentz - It was resolved: "That the 1994 municipal appropriation for the Kitchener Public Library Board be approved as recommended by the Administrative Review Committee." Mr. Gazzola reviewed the 1994 Operating Budget for The Centre In The Square, noting a net increase of 1.59%. Mr. D. Donaldson, General Manager, and Ms. S. McKinnon, appeared on behalf of The Centre In The Square. On a motion by Councillor B. Stortz - It was resolved: "That the 1994 municipal appropriation for The Centre In The Square be approved as recommended by the Administrative Review Committee." Mr. Gazzola reviewed the 1994 Operating Budget for the Mayor and Council and noted a reduction of -4%, largely due to support staff re-organization. He also noted that Council has not to date indicated how it wishes to address the outstanding budget reduction as a result of the Expenditure Control Plan. Mr. McKay explained that the $4,000.00 reduction was to be allocated at the direction of Council, however, since staff have received no response to date they have proceeded with the allocation for budget purposes. Mr. Gazzola reviewed List B, comprised of a $10,000.00 reduction in the Mayor's recognition account. Councillor Galloway indicated that at the November 1, 1993 meeting he had suggested a 20% decrease in the Council travel and training budget and asked whether any action had been taken to date. Mr. McKay responded that the suggestion has not been incorporated in the present budget. In response to a comment by Mayor Cardillo concerning the Receptionist position in the Mayor's Office, Councillor Zehr pointed out that the budget recognizes the current part-time position. Mr. McKay stated that if Council wishes to expand this position the budget would have to be increased by approximately $20,000.00 and in doing so they would be 1. 1994 OPERATING BUDGET (cont.) giving approval to hire for a full-time position. Councillor Lorentz indicated that it was his understanding the entire situation was to be reviewed in March of 1994. Councillor Wagner suggested that a close look should be taken at the utilization of staff time in the Mayor's Office and that it be determined at a future date whether a staffing increase is required. Councillor Leadston pointed out that this is the only area of the City which does not have staff at the counter level during all City operating hours. He added that at present anyone can wander into the office area and suggested that in the interest of efficiency and security the existing part-time position should be converted to full-time. Councillor Ziegler indicated that the issue should be decided in March of 1994 and at that time some indication given as to whether the increase would involve one full-time or two part-time staff. Councillor Yantzi indicated that he has difficulty endorsing an increase in staff in the Mayor's Office, at the same time that all other City Departments are being asked to make budget reductions. He also suggested that the Mayor's recognition account is presently funded at an appropriate level. On a motion by Councillor J. Ziegler - It was resolved: "That the 1994 Operating Budget of the Mayor and Council be amended to reflect a $6,000.00 reduction in the Mayor's recognition account, and further, FINANCE AND ADMINISTRATION COMMITTEE MINUTES- 128 -DECEMBER 8, 1993 That the $4,000.00 Expenditure Control Plan reduction be taken either from the Mayor's Recognition or some other appropriate account." Moved by Councillor Ziegler - That the 1994 Mayor and Council Operating Budgets be approved as recommended by the Administrative Review and amended this date to reflect a reduction in the Mayor's recognition account and a further reduction relative to the Expenditure Control Plan." Councillor Ziegler asked that the 1993 costs for Mayor and Council conference attendance be identified and considered at the same time staff conference expenditures are addressed. Councillor Lorentz advised that he had not been consulted on any aspect of the staff reallocation in the Mayor's Office and expressed frustration in this regard. Mayor Cardillo replied that the statement is unfair since all members of Council were notified by E-Mail. In response to a question from Councillor Smola, Mr. Gazzola clarified that the present part-time position is a Job Grade 6, whereas the former full-time position was a Job Grade 12. Councillor Leadston advised that he does not agree with the reduction in staff and requested comment from those members of Council who supported the reduction. Mr. McKay noted that Council had been briefed of the personnel change twice during the Summer of 1993. Councillor Wagner offered the opinion that Council was told what would happen and was not part of the decision making process. He suggested that the Mayor's Office is the focal point of the City Hall and that under-staffing in this area can create an unfavourable public impression. On this basis, he suggested that the present position be converted to full-time. Councillor Stortz suggested that the entire issue be dealt with at a later date. Moved by Councillor M. Wagner - "That the 1994 Operating Budget for the Mayor and Council be further amended to reflect a $10,000.00 increase representing the cost to annualize one full-time position at the Grade 6 level, and further, That the entire issue of staffing in the Mayor and Council area be dealt with as soon as possible rather than in March of 1994." 1. 1994 OPERATING BUDGET (cont.) Councillor Stortz noted that there is some confusion as to the role of Council in making staffing decisions. He also suggested that there should be no discrepancy between what is expected of other Departments and how members of Council treat themselves. Councillor Leadston agreed and indicated that the increase would only allow the Mayor's Office to be staffed to the same standard as other City Departments. Councillor Lorentz pointed out that the workload and traffic in the Mayor's Office has increased over the past five years and that no other Department is expected to reduce its staff by one third. The amending motion by Councillor Wagner to increase the Mayor and Council budget by approximately $10,000.00, being the cost to annualize a part-time position to a full-time position, was voted on and . CARRIED The main motion by Councillor Ziegler to adopt the 1994 Operating Budget for the Mayor and Council was voted on and . CARRIED, AS AMENDED Mr. Gazzola reviewed the 1994 Operating Budget for the Fire Department and noted a decrease of -.37% over the 1993 budget. Mr. McKay reminded the Committee that the 1992 Firefighter salary has gone to arbitration and at present salaries are two years out of date. He advised that the worst case scenario has been incorporated into the budget and also referred to the impact of the Social Contract. Moved by Councillor Smola - FINANCE AND ADMINISTRATION COMMITTEE MINUTES- 129 -DECEMBER 8, 1993 "That the 1994 Operating Budget for the Fire Department be approved as recommended by the Administrative Review Committee." Mr. Gazzola referred to the item on List Z involving the removal of Aerial #4 and downsizing by eight Firefighters as a result of the Social Contract. Councillor Ziegler questioned why removing Aerial #4 is a possibility and Fire Chief Hancock replied that it is the only way the Department can reduce its budget by any where near the 5% target. Mr. McKay suggested that other options would be to reduce the number of Fire Halls, their hours of operation or the amount of equipment the City has to respond to calls. The motion by Councillor Smola to adopt the 1994 Operating Budget for the Fire Department was voted on and . CARRIED 2. NEXT MEETING The next meeting of the Finance and Administration Committee to consider the 1994 Operating Budget will be held on . Friday, December 10, 1993 3. ADJOURNMENT On motion, the meeting adjourned at 5:35 p.m. _________________________________ G. Sosnoski Manager of Corporate Records/Assistant City Clerk