HomeMy WebLinkAboutFinance & Admin - 1995-01-25 SFAC\1995-01-25-SPE
JAN UARY 25, 1995
FINANCE & ADMINISTRATION COMMITTEE MINUTES
CITY OF KITCHENER
The Finance and Administration Committee met this date, commencing at 9:00 a.m., under the
Chairmanship of Councillor J. Ziegler with the following Members present: Councillors T. Galloway, G.
Lorentz, Jake Smola, M. Wagner and C. Weylie. Mayor Richard D. Christy and Councillors K. Redman,
J. Smola, B. Vrbanovic and M. Yantzi were in attendance for part of the meeting.
Others present: Messrs. T. McKay, J. Gazzola, L. Ryan, O. den Ouden, D. Suzuki, J. O'Rourke, B.
Musselman, S. Gyorffy, E. Kovacs, B. Liddle, J. McBride, D. Snow, J. Shivas, G. Kett, R. Arnot, T.
McCabe, J. Witmer, T.B. Stanley, B. Kuntz, G. Sosnoski, Ms. F. Currier, Ms. G. Redgwell and Ms. D.
George.
The purpose of the meeting was to consider the 1995 Department Operating Budgets as recommended
by the Administrative Review. Council members were in receipt of screen prints of the Budget
presentation and Revenue/Expense Statements for Municipal Enterprises.
1995 OPERATING BUDGET
Mr. Gazzola reviewed the Pro Forma Budqet guidelines established by Council in July of 1994
including 0% for Capital and Operating inflation, 2% for inflation revenues, .75% for assessment
growth and an overall budget target of a 0% increase. He indicated that at the start of the
Administrative Review, department submissions reflected a 4.9% levy increase and these were
subsequently reduced to below 0%. However, due to no assessment growth, the present position
reflects a .41% increase. Mr. Gazzola reviewed residential and commercial assessment figures
noting that the former is expected to increase by 1.28% and the latter to decrease by 2.14% for an
impact on the assessment base of .06%. He provided an analysis of the tax levy indicating
approximately $78 million dollars in expenses, $21 million dollars in anticipated revenue with a
resulting levy requirement of approximately $57 million dollars. Mr. Gazzola then reviewed a
number of items relating to revenue split, net expenses by department, expenditures by object,
annualizations and new programs. Mr. Gazzola reviewed 1995 mill rate estimates including
increases in the regional and education levy of 2% and 3% respectively, all of which would result
in a net levy increase of 2.04%. Mr. Gazzola also pointed out a proposed 2% increase in water
and sewage rates, and this combined with other Operating Budget requirements represents a
1.08% increase in 1995. It was also noted that if not for the impact of the Province's Social
Contract and Expenditure Control Plan, Kitchener ratepayers would actually have received a 5%
decrease in the levy in 1994. Mr. Gazzola also pointed out that over the last decade City of
Kitchener tax increases have closely paralleled, and in some cases have been below, the
Consumer Price Index.
Councillor Galloway inquired whether City-wide Social Contract provisions had all been addressed
in the current budget, and Mr. Gazzola replied that they have with the exception of Transit where
an amount of $225,000.00 is being recouped through reductions in driver pay, an amount which
will have to be dealt with in 1996. Mr. McKay added that the City is hoping to address this problem
through productivity improvements and personnel reallocations. Councillor Galloway inquired as
to the point in time when the City would no longer have job progression increases and Mr. McKay
replied that this could only occur if there was no turnover in staff. Mr. Gazzola added that the 1995
Budget shows a net decrease in this area of $150,000.00 due to economies not attributed to the
Social Contract.
Councillor Weylie inquired as to how the Federal Government pays property taxes and Mr.
Gazzola replied that a payment in lieu arrangement exists but that two years ago they decided to
stop paying mill rate increases, and consequently there is a revenue shortfall in this area. She
also inquired as to the method of payment relative to easements held by the cable, telephone and
hydro-electric companies and Mr. Gazzola replied that such taxes are calculated based on 5% of
the company revenues, but that at present revenues redirected to competitors (particularly in the
telephone industry) are not included in these calculations since they are not recognized by the
Municipal Act. Mr. Gazzola added that the Province is aware of this situation and that the Act
needs to be amended, though there is no indication this is underway.
1. 1995 OPERATING BUDGET - cont'd
FINANCE & ADMINISTRATION COMMITTEE MINUTES
JANUARY 257 1995
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CITY OF KITCHENER
Mayor Christy inquired as to the current status of commercial assessment and questioned whether
the decline in this area is indicative of a general trend or is unique to Kitchener. Mr. Gazzola
replied that this situation began as a result of reassessment and that it appears that Kitchener's
commercial assessment is decreasing further. He added that much of the decrease relates to
vacant industrial and commercial land which is automatically shifted into a different assessment
class.
Mr. Gazzola reviewed highlights of the Operating Budget for the Public Works Department noting
a proposed budget of $15 million, a net decrease of 3.7%. He pointed out that all department
budgets will reflect an increase in fringe benefit costs notwithstanding that pay levels have been
frozen for the past two years. This is largely due to increases in areas such as the Ontario Health
Tax, the Canada Pension Plan and Unemployment Insurance. Councillor Galloway inquired as to
future expectations regarding tipping fees, which account for approximately 1% of the levy and
have been historically volatile. Councillor Ziegler noted that based on discussions held at the
Regional level large increases are not anticipated, and Mr. Gazzola added that the Administrative
Plan indicates a stabilizing of service levels over the next four to five years. Mr. McKay pointed
out that over the last eight year period tipping fees have increased by approximately 700%.
In response to a request from Councillor Jake Smola concerning the amount of overtime in the
Public Works Department, Mr. McKay asked that the Finance Department extract 1994 and 1995
overtime figures for all departments. The reclassification scheme involving members of Local #68
was also discussed and Mr. McKay noted that as a result, the number of overall job categories had
decreased dramatically with corresponding increases in work force productivity and flexibility. He
added that the tangible result will be to maintain City services at their present levels during periods
of growth without having to increase staff compliment.
Mr. Gazzola then reviewed highlights of the Budget for the Parking Enterprise.
On a motion by Councillor G. Lorentz,
It was resolved:
"That the $5,100.00 amount allocated for Municipal taxes in the Parking
Enterprise's 1995 Operating Budget be removed."
Mr. McKay indicated that whether a new elevator is installed in the Market Square parking garage
will depend on the status of the garage repairs presently under discussion and will require the
approval of Council. In referring to the general repairs, Mr. McKay noted that a minimum $1 million
dollar expenditure is foreseen and is not provided for in the current budget. He also referred to a
$177,000.00 operating deficit, and indicated that the current plan is to pay down the Parking
Enterprise deficit over a five year period.
Councillor Vrbanovic suggested that the Enterprise consider installing automated ticketing
equipment which would calculate a charge when leaving a surface cashiered lot, noting that
similar devices are widely used in Europe. Mr. Snow replied that economies in this regard have
been partially addressed through the elimination of cashiers after 7:00 p.m. and implementation of
a standard exit rate. Mr. McBride pointed out that this technology is not widely used in North
America and he was unsure whether it would be accepted by Kitchener residents. Councillor
Vrbanovic asked for figures relative to the implementation of such equipment, and Mr. Snow
advised that an evaluation could be done but would only have an impact on eight cashier
positions. It was also noted that the City's current pay and display equipment is not widely used.
Councillor Jake Smola asked for information as to the cost of providing parking to selected staff
members, and Mr. Gazzola agreed to provide this information.
1. 1995 OPERATING BUDGET - cont'd
Mr. Gazzola then reviewed highlights of the Water Utility Budget and Statement of Revenues and
Expenditures (1994-2000) and advised of a proposed water rate increase.
FINANCE & ADMINISTRATION COMMITTEE MINUTES
JANUARY 257 1995 - 22 - CITY OF KITCHENER
Councillor Galloway asked what the percentage increase would be if the cost increases alone
were passed on to the ratepayer, and Mr. McKay estimated a 1.5% increase which reflects the
cost passed along by the Region. Mr. Gazzola added that the City requires a 2% increase to
break even based on other delivery expenditures.
On a motion by Councillor John Smola,
It was resolved:
"That effective March 1, 1995 the water and sewer rates be increased by
2%."
Mr. Kovacs referred to a budget allocation involving the equivalent of a new staff position of
Engineering Technician. He explained that at present four people work in this area and divide
their time between the Gas and Water Utilities, a practice which has allowed work to be completed
to date without having to increase staff compliment. He pointed out that ten years ago there were
two more people in these positions than at present, and there has been significant growth in the
Utilities over this period. Councillor Lorentz indicated he supports the request and questioned
whether subcontracting of installations is still cost effective. Mr. Kovacs replied that these are
presently undertaken for gas installations, and in reviewing the figures this practice is still viable
but the advantage is not as great as when it was first started. Councillor Lorentz asked for a report
addressing the cost effectiveness issue over the last three years and into the future. Mr. McKay
added that the benefits of contracting accrue where demand for a service fluctuates, and that the
City provides staff for regular services and contracts irregular work thereby avoiding long term
labour relations and staffing problems.
Mr. Gazzola highlighted the Budget for the Gas Utility and reviewed the Statement of Revenues
and Expenditures (1994-2000). Mr. McKay highlighted the benefits to the City of transfers from the
Gas Utility of between 5% and 7% annually.
Mr. Gazzola then reviewed the Statement of Revenue and Expenditures for the sewer surcharge,
noting the impact as a result of an increase in the water rate. Councillor Jake Smola requested
information on expenditure increases for the Enterprise, and Councillor Ziegler asked this be
obtained by the Finance Department for the January 27, 1995 meeting.
Councillor Galloway pointed out that Kitchener's tax levy is slightly higher than other area
municipalities who do not enjoy the benefit of a gas utility and questioned why this is the case. Mr.
McKay pointed out that Kitchener supports a greater number of facilities of superior quality and
maintains a higher level of service than other regional municipalities. He referred to the City's
support of a regional level theatre and ownership of the City Hall as other distinguishing factors.
He pointed out that in comparing taxes across the Province, Kitchener is on the Iow end of the
scale and also has a lower per capita debt and higher reserve fund levels than other
municipalities. Councillor Galloway asked for information on the City's position relative to the
maintenance of infrastructure standards, and Mr. McKay advised that staff have undertaken a
comprehensive infrastructure review. Councillor Wagner expressed satisfaction over the
comments of Mr. McKay, but added that in his opinion the City does a poor job of conveying this
information to taxpayers.
On a motion by Councillor C. Weylie,
It was resolved:
"That the 1995 Operating Budget for the Public Works Department (includinq
the Gas and Water Enterprises) be approved as submitted by the
Administrative Review."
1. 1995 OPERATING BUDGET - cont'd
Mr. Gazzola reviewed highlights for the Le,qal Department, noting a proposed budget of
$565,000.00 reflecting an 8.1% decrease. He also referred to staffing changes as a result of
eliminating one Commissioner position and adding a Junior Staff Lawyer.
Councillor Ziegler questioned the hiring of an additional lawyer, and Mr. McKay indicated that
FINANCE & ADMINISTRATION COMMITTEE MINUTES
JANUARY 257 1995 - 23 - CITY OF KITCHENER
there had been no assumption that the total number of lawyers traditionally employed by the City
would decline with the retirement of Mr. Wallace. Councillor Galloway indicated that it was his
recollection that the change in status of one of the Assistant City Solicitor positions from contract to
full-time had been on the basis that it would offset the loss of the Commissioner position.
Councillor Ziegler stated that he does not support hiring an additional lawyer. Mr. Shivas reported
that the Department needs the services of four lawyers, noting that with the retirement of Mr.
Wallace, the City lost its most senior and productive lawyer and that adding a junior level position
is appropriate and responsible. Councillor Weylie asked when the Department was planning to
hire the junior lawyer and Mr. McKay advised of a date near the end of February or beginning of
March, and it was noted that an advertisement had already been placed. Councillor Ziegler
questioned how the position could be approved if it had not been considered by Council, and Mr.
McKay advised that this was done on the basis of no increase in staff compliment. Councillor
Ziegler suggested that hiring be delayed for one year to give the Department an opportunity to
reorganize, redistribute workload and assess the impact.
Councillor Galloway indicated that it was also his impression conversion of the contract employee
was to offset the fact that a replacement would not be hired for the Commissioner position, nor did
he believe that a commitment had been made to add a staff position to the Legal Department. He
asked for a report outlining the number of cases, hearings and other classes of work undertaken
by the Legal Department. Mr. McKay replied that there is no change in staff compliment as a
result of hiring a junior lawyer and argued that this is necessary given the amount of expertise
which has been lost. He suggested that when Mr. Fisher left, a replacement was brought in on a
contractual basis which staff felt was justified by the workload. Councillor Galloway questioned
whether the City has historically employed four lawyers and Mr. McKay replied in the affirmative.
Mr. McKay also confirmed that Council had made no conscious decision to reduce the number of
lawyers from four to three. Councillor Jake Smola referred to the Assistant Solicitor's recent
maternity leave, and Mr. Shivas indicated that this was treated as a testing period and that staff
found four lawyers were necessary to cope with the workload. Councillor Wagner suggested that
if Council is going to debate the issue it should be stressed that there is a better legal result
obtained with in-house staff as opposed to hiring outside representatives, and that any reduction in
the necessity of future litigation is attributable to this improved level of service.
Councillor Ziegler asked that the Committee consider approving the Budget as submitted,
including the Junior Lawyer position and that the item be flagged for further discussion and
consideration on Budget Day. In addition to the information previously requested, Councillor
Galloway asked for a five year historical perspective on Legal Department staffing.
Moved by Councillor M. Wagner,
"That the 1995 Operating Budget for the Le,qal Department be approved as
submitted by the Administrative Review."
The Committee adjourned for lunch at 12:00 noon and reconvened at 1:10 p.m.
Mr. Gazzola reviewed highlights of the municipal appropriations for Contractual Services including:
the K-W Visitor and Convention Bureau; the K-W Humane Society; and Project Lift for total
combined expenditures of $1,177,000.00.
Mr. David Smith and Mr. Russell Lovey were in attendance on behalf of Project Lift. Dr. Gerald
Hess and the Chairman of the Board Of Directors were in attendance on behalf of the K-W
Humane Society. Mr. John Bingeman and Ms. Jane Faulkener were in attendance on behalf of
the K-W Visitor and Convention Bureau.
1. 1995 OPERATING BUDGET - cont'd
Mr. Gazzola noted that there is no increase in the municipal appropriation for the Humane Society
and advised that they are prepared to extend the present three year contract with an inflation
adjustment. He pointed out that the alternative would be re-tendering or developing a new
contract, and that if Council agrees to the extension, the $316,000.00 amount included in the 1995
allocation is sufficient.
Mr. Gazzola reviewed the appropriation for Project Lift noting a proposed budget of $661,000.00
representing a 1.5% increase.
FINANCE & ADMINISTRATION COMMITTEE MINUTES
JANUARY 257 1995
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CITY OF KITCHENER
Mr. Lovey reported on ridership between 1987 and 1995, noting that unfulfilled requests were up
44% in 1994 and that there has been a steady increase in registered riders over the last eight
years. He added that the budget has not kept pace with service demands and that Ministry of
Transportation funding will decline in 1995 from 1994 levels.
Councillor Wagner suggested that the ratio of contributions involving Kitchener and Waterloo
should be re-examined.
Mr. Lovey further clarified that the requested increase over 1994 reflects increased maintenance
costs charged by the City of Kitchener as well as insurance allocations which Project Lift is unable
to absorb themselves. It was also clarified that if the increase requested is granted there will be no
service reduction and that the proposed increase in transit fares would have no major impact on
Project Lift ridership.
Councillor Weylie put forward a motion that the municipal appropriations for all contracted services
be approved.
Mayor Christy asked a variety of questions of the Visitor and Convention Bureau representatives
and it was noted that the current brochure does not include recognizable Kitchener landmarks, nor
is there a specific follow-up brochure outlining the tourist opportunities in Kitchener.
Councillor Galloway inquired as to the possibility of including wildlife pick-up as part of the
Humane Society contract, and Dr. Hess advised that though precise figures have not been kept
involving this service, a general estimate of the service cost could be provided. Councillor
Wagner referred to a persistent problem in his ward involving skunks and asked that they be
addressed a separate statistic in any report submitted by Dr. Hess. Councillor Galloway indicated
that he wished to see a cost estimate regarding a contract enhancement to include wildlife. Mr.
Gazzola responded that it is his intention to report to the Finance and Administration Committee at
a future date.
In response to a question from Councillor Wagner, Mr. Bingeman pointed out that Visitor and
Convention Bureau membership has increased from 69 to 130 and he referred to several
initiatives involving cooperative marketing, noting that municipal support in this area is important.
Councillor Lorentz expressed his concern over the questionnaire sent out by the Bureau to
candidates in the recent Municipal Election, which he interpreted as having connotations of
blackmail. He asked why the survey was sent in this format, and Mr. Bingeman replied that the
results were provided to the Bureau membership, and was intended to measure the level of
awareness of the candidates.
Councillor Jake Smola inquired as to the present charge for dog licences, and Dr. Hess replied
that at present the fee is $15.00, and would increase in February to $20.00. A brief discussion
took place concerning the feasibility of licensing cats. Councillor Jake Smola indicated that he had
received complaints of discrimination from dog owners, and in response to his further question, Dr.
Hess estimated the amount of cats in the City at approximately 8,000. Mr. McKay pointed out that
cats are specifically exempt from licensing under the Municipal Act.
1995 OPERATING BUDGET - cont'd
The previous motion by Councillor Weylie was then voted on and,
It was resolved:
"That the following municipal appropriations for Contractual
approved in 1995 in the amounts specified:
Services be
NAME AMOUNT
K-W Visitor & Convention Bureau
$200,000.00
FINANCE & ADMINISTRATION COMMITTEE MINUTES
JANUARY 25 1995 - 25 - CITY OF KITCHENER
K-W Humane Society $316,000.00
Project Lift $661,000.00
Mr. Gazzola reviewed the highlights for the Parks and Recreation Department noting a proposed
budget of $11.5 million dollars reflecting an increase of 0.7%.
Councillor Wagner referred to projected decreases in revenues, and Mr. Arnot advised that these
reflect a decrease in room and Auditorium Complex rentals. Mayor Christy noted that
expenditures for grants have been projected at a 13% increase and Mr. Gazzola indicated that
staff would review the figure and report to Council on or before Budget Day.
A discussion took place concerning use of the Breithaupt Center and the Joint Use Agreement
with the City Of Waterloo. Mr. Gazzola pointed out that decrease in use accounts for a
$28,000.00 shortfall and an additional $24,000.00 loss reflects the City of Waterloo's intention to
withdraw from the Joint Use Agreement. Councillor Galloway suggested that Waterloo should pay
its share in recognition of joint use, or the City will have to levy a surcharge on use of the facility by
Waterloo residents. He also indicated his expectation that this item would be revenue neutral and
Mr. Arnot advised that a surcharge of approximately $31.00 would have to be levied on Waterloo
residents in this regard. Mr. McKay reminded the Committee that Council has decided to defer
Kitchener's reaction to Waterloo's unofficial position pending the outcome of a February 17, 1995
meeting in order to give them an opportunity to respond. Councillor Ziegler asked for a staff report
on or before Budget Day concerning any necessary adjustments.
Councillor Yantzi asked whether the Twin City Committee would discuss this issue, indicating his
personal preference of avoiding a surcharge and his hope that Waterloo would behave
responsibly. Mayor Christy asked that staff identify options and the corresponding dollar amounts
before Budget Day.
Mr. Gazzola asked, and it was generally agreed, to delete a $23,000.00 amount relative to Adult
Field Rentals, as it is the opinion of Finance staff that this amount was entered in the Budget twice.
Mr. Gazzola also agreed to provide a report for Councillor Jake Smola outlining the "other" items
on slide #36. Mr. Gazzola then explained the impact and various reallocations resulting from a
reorganization involving the Business Facilities Division.
Mr. Gazzola highlighted the Operating Budgets for the Doon and Rockwa¥ Golf Course
Enterprises. Mr. Gazzola pointed out that there is no allocation for Kiwanis Park, and noted that
he has received information that the Grand River Conservation Authority (GRCA) would open the
facility on a cost sharing basis, with the Kitchener contribution being approximately $17,000.00.
Mr. McKay indicated that options for reopening the Park have been discussed and a related
$52,000.00 operating expense identified which would be split between the GRCA, Kitchener and
Waterloo. He stressed that this has only been dealt with at the staff level and that Waterloo
administration has rejected the suggestion. Mr. McKay advised that Kitchener staff's position is
that they would also recommend rejection if Waterloo does not agree to participate. He also
pointed out concerns that sharing the operating costs would commit the City to future capital
expenditures involving the Park, and that joint funding does not occur relative to other GRCA
facilities. Mayor Christy indicated that he would work with Mr. McKay and the Chairman of the
GRCA Board to seek clarification of whether the GRCA has changed its policy relative to the
1. 1995 OPERATING BUDGET - cont'd
operation of its facilities. Councillor Lorentz indicated that this item should also be discussed by
the Twin City Committee and asked Mr. Gazzola to identify the City's share of the Regional levy for
the GRCA. He suggested that if Kiwanis Park is closed, Kitchener, as the largest contributor in the
watershed, would not be receiving benefits comparable to other municipalities.
On a motion by Councillor C. Weylie,
It was resolved:
"That the 1995 Operating Budget for the Parks and Recreation Department
including the Doon and Rockway Golf Course Enterprises be approved as
submitted by the Administrative Review, and amended this date."
FINANCE & ADMINISTRATION COMMITTEE MINUTES
JANUARY 257 1995
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CITY OF KITCHENER
Mr. Gazzola reviewed the highlights for the Planninq and Development Department, noting a
proposed budget of $2.1 million reflecting a decrease of 3.6%.
The Committee considered Staff Report PD 95/10 requesting that cellular phones be provided to
Inspection Services and Municipal Law Enforcement staff for a variety of reasons including greater
efficiency, service improvements and safety. Mr. Witmer summarized the background in his report
noting a capital cost of $5,200.00 for the purchase of thirteen units and annual operating costs of
approximately $8,000.00, less an anticipated reduction in the staff mileage allowance.
Councillor Ziegler indicated he was in favour of the proposal, though he questioned the anticipated
number of calls, and how the City would monitor personal use of the units. Mr. Witmer replied that
Management staff would receive and monitor a detailed report of calls made and the numbers
dialled, and that though frugal, the estimate of calls is in his opinion reasonable. Councillor Jake
Smola questioned whether two-way radios have been considered, and Mr. Witmer indicated that
their use had been discussed with the Director of Fleet, and it was felt they would be more
expensive, in part due to the necessity of installing a new radio base at City Hall.
Councillor Ziegler asked that this item be flagged and that additional information be provided for
Budget Day.
On a motion by Councillor C. Weylie,
It was resolved:
"That Council endorse the Business Plan outlined in Planning and
Development Report PD 95/10 (January, 1995) and approve funding for the
purchase and operation of thirteen cellular phone units for use by Building
Inspection and Enforcement staff, and further,
That in this regard additional funding of $9,354.00 be incorporated into
Building Inspection Account #710004 (1294), and $5,846.00 in Enforcement
Account #710005 (1294), and that the budget allocation for sub object 1200
(mileage allowance) in both areas be reduced by $1,500.00 and $500.00
respectively."
Councillor Galloway asked for an explanation of the $58,330.00 allocation for progressions in the
Planning and Development Department. Mr. McCabe clarified that these progressions are not part
of the reorganization of the Department proper, but relate to earlier reorganizations involving the
Zoning Section. Mr. Witmer added that a number of these progressions were not incorporated into
the base budget in 1994. Councillor Galloway expressed concern over the dollar amount, given
the fact that the Planning Department is relatively small, and that the total dollar value of
progressions in 1995 across the entire City is $300,000.00. Mr. McKay replied that the entire
Zoning Section was reorganized, and Mr. Gazzola indicated that staff would bring back additional
details for Budget Day.
1. 1995 OPERATING BUDGET - cont'd
On a motion by Councillor C. Weylie,
It was resolved:
"That Council adopt the 1995 Operating Budget for the Planninq and
Development Department as submitted by the Administrative Review, and
amended this date."
Mr. Gazzola reviewed the municipal appropriations for the Kitchener Public Library Board and
Center in the Square, noting a 1.5% increase in the former and no increase in the latter. He then
reviewed Budget highlights for the KPL Board noting a proposed budget of $5.4 million.
Mr. Dan Donaldson, General Manager, appeared on behalf of the Centre in the Square and
referred to a $190,000.00 1994 year end surplus in conjunction with the need for seating
replacement. He suggested retiring the accumulated debt with the remainder of the surplus
allocated to a Seat Replacement Fund. He suggested that this would be a good start for the fund
raising program necessary to raise the balance of seat replacement costs. Mr. Donaldson
FINANCE & ADMINISTRATION COMMITTEE MINUTES
JANUARY 257 1995 - 27 - CITY OF KITCHENER
indicated that otherwise, there was no increase in the Centre's 1995 budget.
Councillor Ziegler indicated that it would be his preference to see a full budget presentation
relative to the Centre, and Mr. Donaldson replied that in the past this responsibility had been
entrusted to the Board of Directors. Councillor Ziegler noted that at minimum he would like to see
a budget summary, noting that no highlights are available at all for the 1995 Budget.
Councillor Galloway inquired as to the capital contribution policy involving the Board and the City.
Mr. Gazzola clarified that over a ten year period, the ratio of contributions is 1:1, and Mr.
Donaldson added that a surcharge of $1.00 is presently levied for each ticket sold and allocated to
capital replacement costs.
Councillor John Smola suggested that the Centre should be treated the same as any other City
facility regarding capital improvements, and therefore seat replacement should be added to the
Ten Year Capital Forecast. Mr. Gazzola advised that the allocation could be dealt with on Budget
Day and that staff would provide additional detail prior to February 10, 1995. He also suggested
that the seat replacement issue be dealt with separately on Budget Day. Mr. McKay added that
the previous Council had referred the matter of seat replacement to Administrative staff to develop
a replacement strategy, and that the Centre would be required to raise an additional $240,000.00
under the present scheme. Councillor John Smola suggested a $50,000.00 allocation in the
Capital Forecast over a four year period.
Councillor Ziegler asked that the Centre in the Square budget proper be dealt with separately from
the seat replacement initiative.
On a motion by Councillor M. Yantzi,
It was resolved:
"That a 1995 municipal appropriation of $1,093,000.00 be approved for the
Centre in the Square."
On a motion by Councillor M. Yantzi,
It was resolved:
"That approximately $35,000.00 from the $190,000.00 1994 surplus of the
Centre in the Square be allocated to retiring the accumulated debt, with the
balance allocated to a seat replacement fund."
Mr. Gazzola reviewed Budget highlights for the Kitchener Public Library Board, noting a proposed
budget of $5.4 million reflecting a 1.5% increase.
Ms. M. Walshe, Chief Executive Officer, was in attendance on behalf of the Kitchener Public
Library Board.
1. 1995 OPERATING BUDGET - cont'd
Councillor Galloway asked for statistics concerning non-resident use of Kitchener Library facilities.
Ms. Walshe reported that generally the number of registrations at all libraries reflect 80,000
Kitchener residents, 13,000 Waterloo residents and approximately 7,000 patrons from outside K-
W. Councillor Galloway inquired as to statistics concerning use of the Waterloo library by
Kitchener residents, and Ms. Walshe replied that these are not available at present but could be
obtained. Councillor Wagner inquired as to the number of new non-resident library cards issued
in the last three to five years and Ms. Walshe replied that based on active registrants, these have
decreased and there is a definite downward trend. Councillor Ziegler asked that Ms. Walshe
obtain figures on the number of Kitchener residents presently using Waterloo libraries.
In response to a further question from Councillor Galloway concerning the budget value of staff
progressions, Mr. McKay asked that the Finance Department compare the salary base to the
actual compliment in each department and report.
On a motion by Councillor M. Wagner,
It was resolved:
FINANCE & ADMINISTRATION COMMITTEE MINUTES
JANUARY 257 1995
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CITY OF KITCHENER
"That a 1995 municipal appropriation of $5,411,070.00 be approved for the
Kitchener Public Library Board."
Mr. Gazzola reviewed highlights for the Mayor's Office, noting a proposed budget of $214,000.00
reflecting a 1.9% increase.
Mayor Christy asked that an additional $600.00 be budgeted to upgrade the fax machine, less the
credit value of the existing piece of equipment.
On a motion by Councillor M. Wagner,
It was resolved:
"That the 1995 Operating Budget for the Mayor's Office be approved, as
amended this date."
Mr. Gazzola reviewed highlights of the Council budget and suggested that the amount relative to
the Council inauguration be budgeted as part of the Election Reserve Fund to eliminate
fluctuations in Election years.
On a motion by Councillor C. Weylie,
It was resolved:
"That the budget line for expenses relating to the City Council inauguration
be removed from the Council Operating Budget and an appropriate amount
allocated to the Election Reserve Fund."
Mayor Christy requested an additional allocation of $1,892.00 for the installation of locks on
Council office doors, and Mr. Gazzola suggested that this item be debited from the City Hall
Capital Account. Mayor Christy requested the addition of approximately $2,000.00 for various
office related items including upgrading of letterhead, a dictaphone and an office clock. He asked
that provision of approximately $1,700.00 be made to purchase cellular phones for members of
Council. He also requested the installation of computers in Councillors' offices.
Councillor Jake Smola advised that he wished it made clear that he does not need a car phone
and would like to be excluded from the purchase, as in his opinion the expense is unnecessary.
Councillor Redman asked that the items requested be dealt with separately, as she does not
support the purchase of car phones. Councillor Galloway indicated that he does not wish a lock
on his office or a computer, though the Mayor should have a cellular phone given the full-time
nature of his position. He pointed out that he has already installed a second telephone line in his
own home at his own cost, and that the non-taxable portion of the Council honorarium is intended
to cover such expenses. He indicated that though he would like a cellular phone he would pay the
cost of purchase himself as well as the monthly fee provided the latter could be offered at a
municipal rate. Mayor Christy referred to a recent incident of theft in the Council
1. 1995 OPERATING BUDGET - cont'd
wing and pointed out that it is not the responsibility of secretaries to look after the personal
property of Councillors. He also referred to problems involving the office layout in this area.
Councillor Ziegler spoke in favour of locks, against cellular phones, and in support of computers in
the individual Councillors' offices.
Mr. Gazzola suggested that the purchase of computers be addressed through the Computer
Reserve Fund, and locks through the Capital Contingency, indicating that he would verify the price
of the latter.
On a motion by Councillor C. Weylie,
It was resolved:
"That budget provision be made in 1995 for an additional $2,000.00
expenditure involving a variety of miscellaneous office items for the Mayor
and Council."
FINANCE & ADMINISTRATION COMMITTEE MINUTES
JANUARY 257 1995 - 29 - CITY OF KITCHENER
Councillor Lorentz spoke in support of providing cellular phones for those members of Council who
feel they are necessary to do their job more effectively. Councillor Weylie indicated she already
had a cellular phone, but would appreciate access to the government rate. Aisc, that she wishes a
lock on her office door.
On a motion by Councillor C. Weylie,
It was resolved:
"That budget provision be made in 1995 for the purchase of a cellular phone
for the Mayor."
Moved by Councillor G. Lorentz
"That budget provision be made in 1995 for the Capital and Operating costs
associated with the purchase of cellular phones for members of Council."
On a motion by Councillor M. Wagner,
It was resolved:
Motion Lost
"That members of Council purchase their own cellular phones, be given
access to the government rate for calls, and be allowed to bill the City for any
calls relating to City business, and that an amount of $6,000.00 be allocated
with regard to the latter."
Mayor Christy referred to the possible redesign of the secretarial area of the Council wing.
Various suggestions by Mr. Gazzola and Mr. McKay were incorporated in the following motion. It
was noted that any expenditures in this regard could be charged to the Capital Contingency
Account in 1995.
On a motion by Mayor Richard D. Christy,
It was resolved:
"That the possible redesign of the secretarial area in the Council wing and
related costing be discussed with the Director of Facilities Management, and
a report submitted to the Finance and Administration Committee for further
consideration."
On a motion by Councillor M. Wagner,
It was resolved:
"That the 1995 City Council Operating Budget be approved, as amended."
1995 OPERATING BUDGET - cont'd
Mr. Gazzola reviewed highlights for the Fire Department, noting a $13.9 million proposed budget
reflecting a decrease of .73%.
Councillor Ziegler noted the $171,000.00 savings relative to staff progressions and suggested that
the future impact of such progressions could be levelled out by transferring $100,000.00 of this
amount to a Salary Reserve Fund. Mr. Gazzola suggested that the budget be left as is for the
present, and that staff present suggestions at a future date.
Councillor Jake Smola referred to an E-Mail message he had received from the Deputy Fire Chief
concerning staffing and asked that the entire issue of staff compliment in the Fire Department be
referred to the Community Services Committee for further discussion. Councillor Smola referred to
instances which he believed reflected over-staffing and noted that on occasion this is compounded
by the payment of overtime. Deputy Chief Kuntz asked for clarification of the comments made by
Councillor Smola and a brief discussion took place. Mr. McKay suggested that in view of the
length of the debate, this issue would likely require a special Tuesday meeting.
Moved by Councillor Jake Smola,
FINANCE & ADMINISTRATION COMMITTEE MINUTES
JANUARY 257 1995
- 30 -
CITY OF KITCHENER
"That the Fire Department investigate and report on its staffing compliment
and overtime payments from the present back to the opening of Fire Station
#6 in 1993, and that a special meeting of the Community Services Committee
to discuss this issue be convened at 7:00 p.m. on March 21, 1995."
Councillor Galloway noted that he has investigated the issue himself and is not convinced there is
over-staffing when indirect hours involving vacations, leaves of absence and illness are factored.
Mr. McKay pointed out that 35 persons is a minimum platoon size and that staff have received no
direction to staff at the minimum level, and further noted that an officer is also required for each
piece of equipment. Councillor Jake Smola suggested that if there is extra staff on hand at
present, they could be diverted to staff Fire Station #7.
The motion by Councillor Jake Smola requesting a staffing and overtime report and a special
meeting of the Community Services Committee was voted on and CARRIED.
Councillor Galloway suggested that it is time to consider setting aside funds for staffing of future
fire stations, and Mr. Gazzola replied that he is looking at a proposal in this regard.
On a motion by Councillor C. Weylie,
It was resolved:
"That the 1995 Operating Budget for the Fire Department be approved as
submitted by the Administrative Review."
2. NEXT MEETING
The next special meeting of the Finance and Administration Committee to review the 1995
Operating Budget is scheduled for Friday, January 27, 1995.
3. ADJOURNMENT
On motion, the meeting adjourned at 5:20 p.m.
........... G. Sosnoski
........... Manager of Corporate
........... Records/Assistant City Clerk