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HomeMy WebLinkAboutFinance & Admin - 1995-12-11 S FAC\1995-12-11-SPE FINANCE &ADMINISTRATION COMMITTEE MINUTES DECEMBER 11, 1995 CITY OF KITCHENER The Finance and Administration Committee met this date, commencing at 9:30 a.m., under the Chairmanship of Councillor J. Ziegler with the following members present: Mayor R. Christy, Councillors T. Galloway, Jake Smola, C. Weylie, M. Wagner, M. Yantzi, G. Lorentz, John Smola and K. Redman. Councillor B. Vrbanovic was in attendance for part of the meeting. Other present: Ms. P. Houston, Ms. V. Gibaut, Ms. S. Fisher, Ms. D. George, Messrs. T. McKay, J. Gazzola, T. Clancy, T. McCabe, R. Arnot, R.W. Pritchard, L.F. Parkhouse, P. Summers, C. Ford, L. Proulx, B. Gulliver, J. Hancock, B. Kuntz, D. Trask, E. Kovacs, D. Mansell, S. Gyorffy, L. Lynch, A. Mak, B. Musselman, D. Snow, J. McBride, W. Beck and G. Sosnoski. 1. 1996 CAPITAL BUDGET AND TEN YEAR CAPITAL FORECAST (1996-2005) Mr. Gazzola presented the Capital Budget and Forecast as recommended by the Administrative Review Committee. He noted that projected expenditures initially submitted by City departments totalled approximately $353 million, and as a result of the Administrative Review this amount was reduced to approximately $329 million. Mr. Gazzola then reviewed the percentage of capital expenditures by department over ten years. He noted reductions in Ministry of Transportation Ontario grants totalling $250,000.00 in 1996 and $500,000.00 in subsequent years. Mr. Gazzola advised that he adjusted the allocation for Industrial Land Buy Back to compensate, in the hope of increased sales. Mr. Gazzola reviewed the funding by source and it was noted that over the Ten Year Forecast 36% of funding would be from the tax levy, 25% from municipal enterprises, 14% from grants, 22% from the Lot Levy Fund and the remainder from other sources. It was also noted that in 1980 the tax levy accounted for 45% of capital expenditures and municipal enterprises only 22%. Mr. Gazzola referred to an anticipated 2% increase in assessment growth, and pointed out that the same percentage was used to measure the impact of inflation. He advised that at present the Capital Forecast is in a balanced position in the first five years, with room for additional work in the remaining five years. Mr. Gazzola reviewed the impact of capital spending on taxes per household and it was noted that in 1980 this figure was approximately $83.00 and in 1996 will be approximately $130.00. He referred to capital expenditure growth of 189%, inflation growth between 1980 and 1996 of 182%, and an average impact on household taxes over that period of 156%, which is below the rate of inflation growth. Mr. Gazzola also compared the per capita debt of the Region of Waterloo and City of Kitchener and noted the City's portion by the end of 1995 will be only $74.00. Mr. Gazzola reviewed lot levy funding as well as the 1996 lot levy priorities, noting that there is funding for all items listed. Mr. Gazzola reviewed highlights and issues for the Capital Budget and Forecast of the Parks and Recreation Department. It was noted that an expenditure is planned in 1997 to construct the Country Hills Community Centre. Councillor Redman inquired whether the proposed list and ranking of community centres has been reviewed and Mr. Arnot replied that the review process has begun and will continue in 1996. Councillor Redman also asked for additional detail on the site upgrading (including paving and lighting) planned for the Auditorium Complex, and Mr. Arnot agreed to provide this information. Mr. Gazzola noted that no provision has been made in the Budget for matching funds for the proposed sprayground at the Doon and Pioneer Park Community Centre. It was also noted that the cost is in excess of the $30,000.00 original estimate. Councillor Galloway pointed out that notwithstanding the increase, the delegate from the Doon and Pioneer Park Community, Ms. P. Nippel, stated that she would not ask for any City contribution in excess of$15,000.00. FINANCE &ADMINISTRATION COMMITTEE MINUTES DECEMBER 11, 1995 - 155 - CITY OF KITCHENER 1. 1996 CAPITAL BUDGET AND TEN YEAR CAPITAL FORECAST (1996-2005) CONT'D On a motion by Councillor T. Galloway - It was resolved: "That $15,000.00 be allocated in the 1996 Capital Budget as the City's contribution toward installation of a sprayground at the Doon and Pioneer Park Community Centre, subject to the neighbourhood raising the balance of the required funds." Councillor Lorentz referred to unsafe playground equipment at Meadowlane School and Park. He advised that he had spoken with neighbourhood residents who are prepared to make a $12,000.00 contribution in 1996 rather than 1997. Accordingly, he asked that the City's matching contribution be budgeted in 1996. Mr. Arnot pointed out that playground upgrading is planned in 1996 to address safety issues on a prioritized basis and that the total expenditure allocation is $70,000.00. Mr. Clancy added that a full audit of playground equipment was done based on the degree of hazard, and that staff could review the list and adjust playground allocations if this is possible from a safety perspective. Councillor Galloway referred to the need to respond promptly to neighbourhood groups who are willing to contribute funds toward development of public facilities. He suggested that the City should actively develop a means to leverage funding in response to requests from neighbourhood groups. Councillor Jake Smola inquired whether the City would pay the entire cost of playground upgrades at Meadowlane if the work were done in 1997 and Mr. Clancy replied in the affirmative. Councillor Lorentz suggested that the City should look at some form of contingency funding which is responsive to neighbourhood donations. Mr. McKay added that such accounts are established as provisions which can be drawn upon in any given year. Councillor Lorentz stressed that the City needs to encourage more partnerships with neighbourhood associations and schoolboards relative to equipment purchases and other initiatives. On a motion by Councillor G. Lorentz - It was resolved: "That the funds allocated by the City toward upgrading playground equipment at Meadowlane School and Park be moved forward from 1997 to 1996, with this amount to be debited from the provision for playground equipment upgrading." Councillor Weylie referred to instances where neighbourhoods do not have the ability or expertise to raise matching funds for playground equipment upgrades. Mr. Clancy replied that this is taken into consideration with regard to various City programs and is dealt with accordingly. He also noted that when a group expresses an interest in contributing funds, the City tries to respond to this without negatively impacting other neighbourhoods. It was noted that the allocation for McLennan Park has been reduced from $875,000.00 to $530,000.00, and Councillor Galloway pointed out that this initiative has been under review since the early 1970's and now has been moved back in the Capital Forecast. Mr. McKay responded that this relates to funding constraints and added that the City has to discuss a joint operation agreement with the Region. He further clarified that this item has only been in the budget since 1992. Councillor Galloway expressed his interest in seeing the project moved forward as previously scheduled. Councillor Wagner inquired as to the status of the proposed crematorium and Mr. McKay replied that at present there is only a line title and account number in the Budget. He noted that Parks and Recreation Department staff have been asked to come forward with a self-funded business plan. Mr. Clancy commented that the plan will be available in 1996, but may not be 100% self- funded. Councillor Wagner suggested that the business plan should be available as early as possible in 1996 due to the profit potential, and Councillor Vrbanovic suggested the first half of the year. Councillor Galloway referred to the needs of the Muslim community as regards the proposed crematorium, in particular washing facilities. 1. 1996 CAPITAL BUDGET AND TEN YEAR CAPITAL FORECAST (1996-2005) CONT'D FINANCE &ADMINISTRATION COMMITTEE MINUTES DECEMBER 11, 1995 - 156 - CITY OF KITCHENER On a motion by Councillor John Smola - It was resolved: "That the 1996 Capital Budget and Ten Year Capital Forecast for the Parks and Recreation Department (including the Golf Course Enterprises) be adopted, as amended this date. On a motion by Councillor T. Galloway - It was resolved: "That the $12,000.00 allocation for playground equipment upgrades at the Meadowlane Public School and Park be taken from the Contingency Fund." Mr. Gazzola reviewed highlights and issues for the Capital Budget and Forecast of the General Services and City Clerk's Department. On a motion by Councillor M. Wagner- It was resolved: "That the 1996 Capital Budget and Ten Year Capital Forecast for the General Services and City Clerk's Department be adopted." Mr. Gazzola reviewed highlights and issues for the Capital Budget and Forecast of the Finance Department. On a motion by Councillor G. Lorentz - It was resolved: "That the 1996 Capital Budget and Ten Year Capital Forecast for the Finance Department be adopted." Mr. Gazzola reviewed the highlights and issues for the Capital Budget and Forecast of the Planning and Development Department. Councillor Yantzi noted that the 1996 provision for Cedar Hills Community Development was eliminated and asked that this be flagged. He asked whether the City could contribute funds and proceed, notwithstanding the loss of a Provincial contribution. Councillor Ziegler asked that this item be discussed on Budget Day, February 2, 1996, and that additional information, including complete financial details, be available prior to the meeting. Mr. Gazzola responded that this is a two year project valued at approximately $100,000.00 with equal contributions from the City and the Province. Councillor Redman also asked that an information report in this regard include reference to the position of neighbourhood residents. On a motion by Councillor C. Weylie - It was resolved: "That the 1996 Capital Budget and Ten Year Capital Forecast for the Planning and Development Department be adopted." Mr. Gazzola reviewed the highlights and issues for the Capital Budget and Forecast of the Economic Development Department. Councillor Jake Smola inquired as to the approximate, annual cost to the City relative to debt involving the Huron Business Park and Mr. Gazzola replied that this figure would be approximately $500,000.00 per year. Councillor Smola inquired as to incentives undertaken to increase sales, including the waiving or reducing of development charges. Ms. Gibaut commented that development charges do not seem to pose an obstacle for new companies; however, local businesses who are relocating to the Park feel they are being unfairly taxed. 1. 1996 CAPITAL BUDGET AND TEN YEAR CAPITAL FORECAST (1996-2005) CONT.D She advised that she does not support a reduction in the per acre charge for small sites, but the cost of larger parcels could be reduced. A general discussion took place concerning funding FINANCE &ADMINISTRATION COMMITTEE MINUTES DECEMBER 11, 1995 - 157 - CITY OF KITCHENER arrangements for the Business Park, including a suggestion by Councillor Galloway that the debt be financed through Capital from Current in order to benefit the operating side of the budget. Mayor Christy advised that he had met with potential purchasers of land in one of the business parks last week and been informed they feel the prices are competitive and the overall appearance of the business park is favourable. He noted that they were also pleased with the treatment they had received from City staff following purchase inquiries. Ms. Gibaut verified that this is the first time a client has indicated they are pleased with the development controls in the business park. She suggested that if the City is interested in selling land as quickly as possible, her Department could develop innovative marketing options. It was generally agreed that Economic Development staff would prepare a report concerning alternate ways of marketing industrial land with a view to reducing the City's carrying costs. Ms. Gibaut advised that she would prefer that the report be first considered by the Business and Industry Advisory Committee. Councillor Galloway pointed out that at present the City does not have an overabundance of industrial land, and in fact is quickly depleting its inventory of large industrial lots. He suggested that this should be discussed as well. Councillor Lorentz referred to a larger issue of whether the City should be in the development business at all, and if so, what market it should target. Mayor Christy suggested that the City should also investigate alternative strategies for making land available to other than traditional manufacturing companies, and in this regard referred to high- tech industries affiliated with the University of Waterloo. On a motion by Councillor T. Galloway - It was resolved: "That the 1996 Capital Budget and Ten Year Capital Forecast for the Economic Development Department be adopted, and further, That staff prepare a report setting out alternate ways of marketing industrial land with a view to reducing the City's carrying costs." Mr. Gazzola reviewed highlights of the General Expenses portion of the Capital Budget and noted a $100,000.00 expenditure for repairs to Homer Watson House. In this regard he also referred to a report and recommendation from L. Proulx dated November 15, 1995 which suggests that the Facilities Managements Division should undertake ongoing maintenance of the Homer Watson House, effective January 1, 1996. Mr. McKay added that Homer Watson House is owned by the City which is bound by an agreement to maintain the structure. He suggested that any funds in this regard should be transferred from the Homer Watson House Foundation budget to the Facilities Management budget. Councillor Yantzi suggested that use and maintenance of the building by working artists, in the tradition of Homer Watson himself, should be considered. Mr. Gazzola referred to the $600,000.00 amount allocated to improvements at Rockway Gardens. Councillor Wagner wished it made clear that the City would be approving only $120,00.00 at this stage, pending submission of a detailed plan, including a fundraising component. He noted that the balance of funding is only tentatively included in the Forecast, and release of these funds is subject to receipt and approval of a plan. Mr. Gazzola clarified that all the work is included in the overall amount, save and except construction of a greenhouse. Mr. McKay advised that Parks and Recreation staff would meet with the Horticultural Society and report, likely in February or March of 1996, on revised priorities. Councillor Wagner again stressed that it is his understanding Council is not approving at this time the entire concept as submitted. 1. 1996 CAPITAL BUDGET AND TEN YEAR CAPITAL FORECAST (1996-2005) CONT.D Councillor Lorentz referred to the issue of City entrance signing which was previously discussed in the context of Rockway Gardens. He noted that this item has been eliminated due to the $35,000.00 cost of each installation. He questioned the cost proposed and suggested that the City investigate partnerships in this regard. It was also noted that there was no signage to indicate that Kitchener owns either the Doon or Rockway Golf Clubs. Mr. McKay responded that Mr. Snow will be bringing forward a report in February or March of next year and noted that this undertaking will likely require a ten year program, which Council can accelerate on a selective basis. FINANCE &ADMINISTRATION COMMITTEE MINUTES DECEMBER 11, 1995 - 158 - CITY OF KITCHENER Councillor Wagner inquired as to when the City Hall will be officially paid for, and Mr. Gazzola replied that this is a paper entry which could occur on Budget Day or any other date indicated by Council. On a motion by Councillor M. Wagner- It was resolved: "That the 1996 Capital Budget and the Ten Year Capital Forecast for General Expenses be adopted." On a motion by Councillor G. Lorentz - It was resolved: "That the 1996 Capital Budget and Ten Year Capital Forecast for the Human Resources Division be adopted." The Finance and Administration Committee adjourned at 12:25 p.m. for a special meeting of Council and lunch, and reconvened at 1:10 p.m.. On a motion by Councillor G. Lorentz - It was resolved: "That Facilities Management undertake the maintenance of Homer Watson House effective January 1, 1996." Councillor Ziegler advised that this recommendation would be put before Council for consideration at the regular meeting later this date. Mr. Gazzola reviewed highlights and issues for the Capital Budget and Forecast of the Centre in the Square. Mrs. Marlene Batchelor, Director of Marketing, and incoming Chairman, Ms. Valerie Hoag, were in attendance on behalf of the Centre. A discussion took place as to the increased maintenance and replacement costs for the Centre in the Square facility, and in particular the seat replacement program. Mrs. Batchelor noted that seat replacement has been removed from the budget, and consequently the $1.3 million figure in the General Provision account does not reflect seat replacement. On a motion by Councillor M. Wagner- It was resolved: "That the 1996 Capital Budget and Ten Year Capital Forecast for the Centre in the Square be adopted." Mr. Gazzola reviewed highlights and issues for the Capital Budget and Forecast of the Kitchener Public Library. 1. 1996 CAPITAL BUDGET AND TEN YEAR CAPITAL FORECAST (1996-2005) CONT.D The Committee was in receipt this date of a report from the Kitchener Public Library entitled "Technology Infrastructure at KPL". Mr. Gazzola noted that the Capital Forecast appended to the report and dated December 11, 1995 differs from the recommendation of the Administrative Review Committee. He suggested that implementation of a Local Area Network (LAN) as well as a Wide Area Network (WAN) be through the City's Information Services Division in order to realize economies. He also noted that $200,000.00 has been provided in 1998 for leasehold improvements to the Stanley Park Branch Library and that $1 million has been provided in each of the years 2001 and 2002 for a new community library with this amount to be debited from the Lot Levy Fund. Mr. Gazzola pointed out that construction of this new facility is to coincide with the new community centre. Mr. Gazzola then referred to various Library initiated changes reflected in the Capital Forecast FINANCE &ADMINISTRATION COMMITTEE MINUTES DECEMBER 11, 1995 - 159 - CITY OF KITCHENER circulated this date with the Library report. In this regard he referred to an expenditure of $108,000.00 in 1996 for a LAN/WAN and self checkout stations. Ms. Peggy Walshe, Chief Executive Officer, Mr. Bruce MacNeil, Chairman of the Kitchener Public Library Board, and Ms. Mary Chevreau were in attendance on behalf of the Library. Councillor Galloway inquired whether the Board concurs with the 2001 date for construction of the new branch library, as this project was previously allocated in 1997. Ms. Walshe replied that once the Library was aware of Provincial funding cuts, the Board struck a task force to re-evaluate the new Country Hills branch, which unlike Stanley Park does not have available staff. She suggested that Country Hills be considered for later construction on the basis that further funding cuts are anticipated. Ms. Walshe also referred to several options for alleviating the strain on the present Stanley Park branch facility. Ms. Walshe referred to the report circulated this date on computer technology at the Library. She advised that the Board has decided to lease its phone system from the City and to participate in a joint registration system. She referred to the unique requirements of the Library as regards a WAN connection to the community libraries which would allow access to software based at the main library. She also referred to cost savings which would result from having access to electronic versions of collection items such as encyclopedias and magazines. Ms. Walshe also noted that the Library is seeking capital funds for self checkout stations to help manage losses in front line staff. She referred to increased circulation of 26% and staffing decreases of 9% and noted that the collections buying power of the Library has also decreased. Mr. Bruce MacNeil referred to selected recommendations of the Mayor's Task Force on the Downtown and noted that if the Library can provide service to businesses and industry, it will be assisting the City in attracting and keeping businesses in the Downtown. In response to a question from Councillor Wagner, Ms. Walshe clarified that the $108,000.00 amount in 1996 is for both the WAN and the self help technologies. She also referred to upgrades to the dedicated computer totalling approximately $25,000.00 per year to meet future growth needs. She also indicated that the Library could implement a WAN over a two year period. Mr. Gazzola advised that the annual $25,000.00 amount has remained in the Budget, but suggested that the City faces the same WAN problems as the Library and that it makes sense to approach this problem together. He suggested that technology has reached the point where fibre optic cabelling is required throughout the City. Councillor Redman inquired as to the cost savings if the WAN project was implemented over two years, and Ms. Walshe replied that the dollar savings would be less; however, she anticipates savings in the order of 17% on postage alone plus staffing economies. She acknowledged that the laying of fibre optic cable is expensive and would be an ideal solution, but the Library proposal would also allow for important savings. Councillor K. Redman put forward a motion that $108,00.00 be added to the 1996 Capital Budget for the Kitchener Public Library to develop a Wide Area Network connecting the community libraries to the main library. 1. 1996 CAPITAL BUDGET AND TEN YEAR CAPITAL FORECAST (1996-2005) CONT'D Mr. Gazzola suggested that it seems ridiculous for either the City or the Library to start laying lines independently, and suggested that this would be one area where the two organizations could work together. Councillor Redman questioned whether any of the proposed 1996 computer accounts include provision for the laying of new lines and Mr. Gazzola replied in the affirmative. Ms. Walshe argued that the Library's needs in this regard are unique and that she is looking for conductivity between libraries to make better use of central databases and is not at this time interested in the speed which would result from fibre optics installation. She also suggested that the Library has been waiting for two months for the name of a City contact to arrange a LAN connection. Councillor John Smola questioned whether the necessary infrastructure would be provided by the private sector within two years and whether any unilateral action by the City would be a waste of money. Ms. Walshe responded that the Library is trying to use technology to manage economic realities and hold the line on budget and staff decreases. She also suggested that Bell Canada may have this technology available as early as next year. Mayor Christy pointed out that staff are asking the Library to work with the City in meeting an FINANCE &ADMINISTRATION COMMITTEE MINUTES DECEMBER 11, 1995 - 160 - CITY OF KITCHENER overall municipal agenda and asked whether the Library could re-work its Capital and Operating budgets to accommodate the WAN installation if this is an urgent priority. Alternately, he suggested deferring this initiative to await a response from the private sector. Councillor Wagner asked whether Councillor Redman would accept spreading the $108,000.00 allocation over a two year period as a friendly amendment and she replied in the negative. Councillor Yantzi pointed out that it appears the Library is asking the City, through a Capital expenditure, to subsidize savings in the Library's Operating Budget. In response to a further question, Ms. Walshe replied that she could not reduce the Operating Budget from its present level, and stressed that the funding requested would allow the Library to preserve accessibility and maintain its current service levels. In this regard, Mr. MacNeil referred to price increases of 6% and 15% for books and magazines respectively. Mr. Gazzola pointed out that the City faces the same financial and technical problems as the Library, noting that at present there is no satisfactory connection between City Hall and the Fire Department Administrative offices. He noted that the City would either have to arrange to use the infrastructure of an existing carrier or install its own lines. He expressed confidence that funding could be stretched to meet both Library and City needs. Mayor Christy suggested that no expenditures should be authorized until there has been a thorough discussion involving City staff. Councillor Redman asked whether there is an opportunity to reallocate projects in the Library Board's Capital Budget to accommodate the WAN request. Ms. Walshe replied that the Budget has already been reduced through removal of the phone system, the security system and a reduced allocation to the proposed cooling tower. She also pointed out that the branch library upgrades have been scaled back through a leasing arrangement, and the Board is of the opinion that it has already done much to accommodate funding reductions and priorities. In response to a further question from Councillor Redman, Ms. Walshe clarified that the Library is asking for a basic computer connection to the branches, which is something that they do not have at present. Councillor Redman noted that there is a significant amount of money in the City's computer budget to address automation needs and Mr. Gazzola concurred. He also pointed out that the City may be able to arrange, in the short term, a faster telephone connection in advance of any cabelling initiatives. Ms. Walshe questioned whether this could be done in 1996 and Mr. Gazzola replied that he believes telephone conductivity can take place next year. The previous motion by Councillor K. Redman to add an additional $108,000.00 in 1996 to the Kitchener Public Library Budget for development of a Wide Area Network connection was voted on and Lost. 1. 1996 CAPITAL BUDGTET AND TEN YEAR CAPITAL FORECAST (1996-2005) CONT-D Councillor Lorentz requested a report on or before Budget Day on possible alternate solutions to connect the main Library to the branch libraries electronically. Councillor Jake Smola also indicated that the report should include a time commitment from Information Services. Mr. McKay pointed out that in addition to the WAN connection, the $108,000.00 amount also included $10,000.00 for an automated checkout system. On a motion by Councillor M. Wagner- It was resolved: "That $10,000.00 be added to the 1996 Kitchener Public Library Board Capital Budget for the purchase and installation of an automated checkout system." Moved by Councillor M. Wagner- "That the 1996 Capital Budget and Ten Year Capital Forecast for the Kitchener Public Library be adopted as recommended by the Administrative Review Committee and amended this date." Mr. Gazzola reviewed highlights and issues for the Capital Budget and Forecast for the Fire Department. FINANCE &ADMINISTRATION COMMITTEE MINUTES DECEMBER 11, 1995 - 161 - CITY OF KITCHENER Councillor Galloway inquired as to the number of years the City will have to operate seven fire halls before these are reduced to the six targeted in the recent relocation study. Fire Chief Hancock replied that seven halls will be required for one year only and that these will be reduced to six in 1999. Mr. McKay added that the City would not be reducing staff complement in going from seven to six stations, as it was intended that the present staff be redistributed to the other stations. Councillor Galloway noted that this arrangement would commit the City to an additional $1 million in operating costs in perpetuity, and this was acknowledged by both Fire Chief Hancock and Mr. McKay. However, they also pointed out that the City has already realized savings of $2.5 million in operating costs as a result of the last relocation plan. Councillor Galloway questioned the need to spend an additional $1 million at this time, and Fire Chief Hancock replied that the plan requires the proposed staff relocation to ensure adequate response time, especially as it relates to the Downtown area. Councillor Jake Smola inquired as to the necessity of relocating Fire Station #2, as it would only be moved approximately 500 metres. Deputy Chief Kuntz replied that the current station was not constructed for two crews and that the new location gives better access to the Downtown. Councillor Jake Smola argued that the existing facility is large enough to house two fire trucks and could be renovated to provide additional staff accommodation. He also noted that the difference in distance would likely mean only a 20-30 second delay in response time. Deputy Chief Kuntz replied that the delay would be greater than indicated and that the confined nature of the site would make expansion difficult. Councillor Jake Smola questioned why Fire Station #2 was prioritized before the construction of a new station to serve the Stanley Park and Chicopee areas. Deputy Chief Kuntz replied that this relates to the need to consider uncovered space as a result of various station relocations. He also indicated that staff are prepared to consider a possible expansion of Station #2. Mr. McKay advised that this could take place before 1999, and noted that station relocation is a complex study and that moving one station affects other coverage areas. Councillor Ziegler asked that a report regarding the possible expansion of Fire Station #2 as opposed to its relocation be submitted for consideration by the Community Services Committee in 1996. Councillor Lorentz inquired as to the status of the land purchase for Station #7 and the timing of its opening. Mr. McKay advised that staff have agreement in principle and that a draft offer to purchase is being prepared by the Legal Department, with an estimated closing date in 1. 1996 CAPITAL BUDGET AND TEN YEAR CAPITAL FORECAST (1996-2005) CONT.D March of 1996. Mr. Gazzola added that at present, additional staff are budgeted for the Spring of 1998. Mr. McKay stressed that in adopting the Fire Department budget, Council is adopting a long term plan for station relocation, but that approval for each individual location will be required in the year the facility is to be constructed. On a motion by Councillor G. Lorentz - It was resolved: "That the 1996 Capital Budget and Ten Year Capital Forecast for the Fire Department be adopted." Mr. Gazzola reviewed highlights and issues for the Capital Budget and Forecast of the Public Works Department. Councillor Weylie referred to the Monarch Woods project, the cost of which is split between the Public Works and Parks and Recreation Departments, and questioned why the project has been moved back in the Forecast. Mr. McKay replied that the reallocation is purely a financial issue, and Councillor Weylie argued that if deferred until 1997 the City may spend more money to rehabilitate given the additional damage. Mr. Gyorffy advised that staff could investigate the use of winter work staff in 1996, as these projects are currently being prioritized. Councillor Redman asked for reassurance that there is an equitable balance of expenditures for sidewalk repairs and road resurfacing between older and newer areas of the City. Mr. Kovacs FINANCE &ADMINISTRATION COMMITTEE MINUTES DECEMBER 11, 1995 - 162 - CITY OF KITCHENER replied that he would re-table, as information, a report previously circulated dealing with street repairs and how projects are allocated. Mr. McKay noted that the announced grant reductions from the Ministry of Transportation Ontario of $250,000.00 in 1996 and $500,000.00 in each year thereafter will likely make the repair situation worse. He added that the City's number one priority is to repair the infrastructure presently in place, as opposed to constructing new projects. Councillor Wagner inquired as to the status of the revamping of street corners for handicapped accessibility, and Mr. Lynch replied that the entire city will have been completed by the year 2005; however, some of the older ramps were substandard and will have to be retrofitted. As regards the reduction in Provincial subsidy, and the move toward block funding where the municipality has more discretion in how grant funds are used, Councillor John Smola suggested that the City should develop a policy on how this money will be spent or otherwise allocated. Mr. Gazzola acknowledged that staff will have to quickly address this issue, as the City has been told by the Province that effective immediately there is no more road funding per se. He also noted that the Province has not as yet addressed the issue of Transit funding. Mr. Gazzola advised that staff will bring forward a report in this regard in the coming year, and Councillor Ziegler asked that it be considered at a future Finance and Administration Committee meeting. A discussion took place concerning street improvements on Highland Road West, and the general issue of the City's share of Regional road expenditures. Councillor Lorentz suggested that the volume of traffic on Highland Road warrants street improvements, and questioned where this project is on the overall priority list. Mr. Snow advised that Highland Road is not a high priority with the Region, but suggested that he can review the project and ask that it be advanced based on demonstrated need. Councillor Lorentz questioned how development could occur in this area prior to road improvements and Mr. McCabe replied that the road in question was not required for access and that intersection improvements are only required where there is a new connection. He suggested that the problem is at the Regional level in terms of prioritization, as any such improvements would be funded from the Regional levy. Councillor Lorentz expressed concern over the unsafe condition of the road and noted that the increased 1. 1996 CAPITAL BUDGET AND TEN YEAR CAPITAL FORECAST (1996-2005) CONT'D volume of traffic is a direct result of development approved by both the City and the Region. Mr. McCabe replied that to date the Region has expressed no concern over traffic volumes in this area. On a motion by Councillor John Smola - It was resolved: "That the 1996 Capital Budget and Ten Year Capital Forecast for the Public Works Department (excluding the Transit Division) be adopted." Councillor Weylie asked that the Monarch Woods project be flagged for further consideration on Budget Day. Mr Gazzola reviewed highlights and issues for the Capital Budget and Forecast of the Transit Division, noting increased bus costs due to natural gas equipment and the lack of manufacturing competition. Councillor Ziegler questioned whether the bus acquisition increases the size of the City fleet, and Mr. Gazzola replied in the affirmative. Mayor Chrisy inquired as to the $612,000.00 figure relative to transit terminals, and Mr. Beck replied that this relates to the timed transfer system which requires satellite terminals throughout the City. He indicated that he hopes private sector property management will absorb most of the cost; however, the City will likely have to provide shelters and make roadway improvements, and in this regard the figure in the budget is an estimate at best. On a motion by Councillor M. Yantzi - It was resolved: "That the 1996 Capital Budget and Ten Year Capital Forecast for the Transit Division be adopted." FINANCE &ADMINISTRATION COMMITTEE MINUTES DECEMBER 11, 1995 - 163 - CITY OF KITCHENER Mr. Gazzola reviewed highlights and issues in the Capital Budget and Forecast for the Gas and Water Utilities. On a motion by Councillor M. Yantzi - It was resolved: "That the 1996 Capital Budget and Ten Year Capital Forecast for the Gas and Water Utilities be adopted." 2. NEXT MEETING The next Budget meeting of the Finance and Administration Committee, to consider the 1996 Operating Budget, will be held on Wednesday, January 10, 1996. 3. ADJOURNMENT On motion, the meeting adjourned at 4:00 p.m. G. Sosnoski ...........Manager of Corporate ...........Records/Assistant City Clerk