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HomeMy WebLinkAboutFinance & Admin - 1996-01-15 SFAC\1996-01-15-SPE JAN UARY 15, 1996 FINANCE & ADMINISTRATION COMMITTEE MINUTES CITY OF KITCHENER The Finance and Administration Committee met this date, commencing at 9:15 a.m., under the Chairmanship of Councillor J. Ziegler with the following members present: Councillors T. Galloway, G. Lorentz, K. Redman, Jake Smola, John Smola, B. Vrbanovic, M. Wagner, C. Weylie and M. Yantzi. Mayor Richard D. Christy was in attendance for part of the meeting. Other present: Ms. V. Gibaut, Ms. S. Curzon, Ms. D. George, Ms. S. Fisher, Ms. P. Houston, Ms. L. Fryfogel, Messrs. T. McKay, J. Gazzola, T. Clancy, R. Arnot, E. Kovacs, T. McCabe, J. Hancock, L. Neil, D. Daly, R. Weber, P. Beaudry, J. Shivas, B. Kuntz, J. Witmer and G. Sosnoski The Committee met this date to consider the 1996 Operating Budget as recommended by the Administrative Review Committee. 1. 1996 OPERATING BUDGET Ms. Jane Falconer and Mr. Fred Standeven appeared on behalf of the Kitchener-Waterloo and Area Visitor and Convention Bureau and circulated a summary of the Bureau's 1995 sales and marketing activities. Mr. Standeven explained that the 1996 contribution requested of Kitchener is based on a revised method of calculating the contributions of client municipalities including Woolwich Township. This new method is based on population and a per capita charge of $1.12. Mr. Standeven also noted that there will be an increase in funding from private sector clients. Councillor Ziegler noted that there had been an increase in tourism funding at the time the Bureau was formed and that it was his understanding municipal contributions were to decline over time rather than increase. Mr. Standeven pointed out that Kitchener's contribution has remained the same since creation of the Bureau. Councillor Jake Smola inquired whether the budget contains any increases in staff salary, and Mr. Standeven replied that two individuals in the sales area are receiving small increases. In response to a question from Councillor Vrbanovic, Mr. Standeven referred to a recent proposal that municipalities such as Kitchener and Waterloo should have a greater representation on the Bureau's Board of Directors. Mr. Standeven pointed out that municipalities already exert a measure of control over the Bureau on the basis that services are provided under the terms of a contract with the client municipalities. Councillor Redman noted that the Bureau is requesting an increase in funding at a time when municipalities are looking to decrease expenditures, and questioned whether private sector members were contributing more in 1996 than the 3% increase referred to by Mr. Standeven in his presentation, and he replied in the negative. Councillor Galloway questioned whether the City has a formal contract with the Bureau. Mr. McKay replied that it does not, and that the services are provided based on an understanding dating back to the creation of the Bureau. He also noted that the City initially agreed to funding of $200,000.00, with this amount to decrease over a four year period. Mr. McKay advised that in the past the five municipal memberships relative to City facilities were included in the $200,000.00 amount. Mr. Gazzola clarified that the $190,000.00 amount proposed in 1996 is to include the memberships referred to by Mr. McKay as well as all taxes. Councillor Wagner asked that the issue of the funding ratios of Kitchener and Waterloo be flagged for discussion at a future date. He noted that Waterloo feels it has overpaid in the past for these services and is proposing a 20% reduction in its contribution which could create an imbalance in contributions and possibly an inequity. Councillor Ziegler asked that Councillor Wagner bring this item forward at a future Finance and Administration Committee meeting. Mr. Gazzola provided an overview of the 1996 Operating Budget as submitted by the Administrative Review Committee. He noted that budget documents include three lists identifying various areas of expenditure reduction. List A comprises reductions which are recommended by staff; List B is a summary of additional reductions for consideration by Council; and List Z comprises possible reductions which are not recommended by staff. Mr. Gazzola noted that interim tax bills must also be sent out shortly, and in this regard he will be presenting figures for consideration at an upcoming Special Council meeting. FINANCE & ADMINISTRATION COMMITTEE MINUTES JAN UARY 15, 1996 -9- CITY OF KITCHENER Mr. Gazzola outlined the factors affecting the Operating Budget including elimination of the Parking Enterprise, a further reduction in the Tax Stabilization Reserve Fund, an outstanding Social Contract obligation in the Transit Division, and Provincial grant reductions totalling 6%, all of which equate to a net 10% budget impact. In response to inquiries from Councillor Galloway, staff also circulated a schedule of staff progressions, excluding fringe benefits. Mr. Gazzola advised that the estimates originally submitted by City Departments resulted in a 3.72% levy increase and he congratulated staff on their efforts in keeping their budget submissions as Iow as possible. It was noted that the initial reductions announced by the Province increased the net impact on the general levy to 7%, and that as a result of work by the Administrative Review Committee this was reduced to 2.6%. The final Provincial figures again increased this amount to 4.1% and an assessment decrease resulted in a current levy impact of 4.42%. Mr. Gazzola noted that the City was subsequently advised of a payment in lieu of taxes involving the Federal Women's Prison so that the starting position reflects an increase in the levy of approximately 4%. Mr. Gazzola's reviewed raw assessment changes noting that residential properties have increased by 2.5%, while commercial assessment has decreased by 5.4%. Notwithstanding a slight increase in raw assessment, the impact on the assessment base reflects a decrease of .2%. Mr. Gazzola also advised that a 1% increase equates to approximately $575,000.00 and that at present $2.4 million in further reductions are required if there is to be no property tax increase in 1996. Mr. Gazzola reviewed the Summary of General Revenues and Expenditures, noting that net expenses have increased by .5%, while general revenues have decreased by 9.3%. It was noted that the impact of Provincial cuts results in a reduction in grants from $9.5 million to $6.6 million. Mr. Gazzola reminded the Committee that as a result of the recent Provincial reassessment, approximately 60% of residential tax payers are facing an increase in assessment and that slightly less than half of these will be in the magnitude of 5%. Mr. Gazzola then summarized the A,B and Z lists noting that if implemented, the A list would reduce the levy by 2.5%; the B list by .7% and the Z list by .8%. Councillor Galloway acknowledged the amount of time and effort expended by staff in preparing the Budget, especially in light of significant reductions in Provincial transfer payments. Mr. D. Donaldson, General Manager and Ms. Maureen Batchelor, Director of Marketing were in attendance on behalf of the Center in the Square. Mr. Gazzola reviewed highlights of the Center in the Square budget, noting a proposed 1.4% increase. He also advised of seven items on List A involving reductions totalling $17,000.00. Mr. Donaldson added that the item relative to a common phone room with the Auditorium Box Office was discussed further and the Auditorium does not wish to participate. Mr. McKay suggested that this item be shifted from the A to the B list, and Councillor Lorentz noted that to date Council has not seen a report regarding this item. Councillor M. Yantzi put forward a motion to adopt the Center in the Square budget, including all items on List A except the common phone room. Councillor Ziegler questioned when the Committee would like to address the proposed staff salary increase, as this is also included in the Board budgets. Mr. McKay suggested that the budgets should be adopted subject to a final decision on the proposed 1% inflationary increase. He added that, if necessary, staff will adjust each operating budget to reflect any subsequent decision by Council in this regard. Councillor Lorentz requested a staff report on the common phone room involving the Center in the Square and the Kitchener Auditorium Box Office. On a motion by Councillor M. Yantzi - It was resolved: "That the 1996 Operating Budget of the Center in the Square, as amended to include all reductions in List A (excepting the item relative to a common phone room) be adopted, and FINANCE & ADMINISTRATION COMMITTEE MINUTES JAN UARY 15, 1996 -10- CITY OF KITCHENER further, That the above is subject to a final decision on the proposed 1% inflationary increase in staff wages." Mr. Gazzola highlighted the budget for the Mayor's Office noting a 12.6% increase. There were no items on the A,B or Z lists. Councillor Vrbanovic questioned the appropriateness of hiring an additional part-time staff person given the financial environment. He acknowledged that though additional staff is required at times, there may be other possibilities for balancing the workload, including the use of co-op students or a transfer of a staff person from the Clerk's Department for part of the week. Councillor Lorentz advised that he is in favour of hiring an additional part-time employee based on the need, and noted that using a student would require ongoing training, and in this regard would place a further burden on existing staff. He pointed out that the ratio of Council members to support staff is lower than the arrangement for Senior staff. He also noted that the public's demands on local politicians are increasing. Councillor Wagner referred to the increased workload of municipal Councillors, and suggested that the Mayor's Office requires an appropriate number of support staff. Councillor Galloway noted that he does not recognize the workload circumstances referred to by Councillors Wagner and Lorentz and suggested there is a need to evaluate the necessity of some of the work assignments given to staff by individual Councillors. Councillor Yantzi pointed out that with the advent of voice mail and e-mail, Councillors should be making fewer demands of the secretarial support staff. Mayor Christy advised that after evaluating the situation for one year, he views the increase in staff as a legitimate request based in part on public expectations and the increasing volume of correspondence. Ms. Fryfogel referred to an increase in the number of invitations to speak which have been accepted by the Mayor and Council as well as the increased number of special events, such as the visit by the Namibian High Commission and the Unity Rally. She stressed the need for the Mayor's office to project a positive and helpful profile and that an additional part-time position would assist in maintaining the current, personalized service level. Councillor Redman expressed concern over the proposed increase in staff, and advised that she favoured a possible relocation of existing staff. Councillor B. Vrbanovic put forward a motion to eliminate, from the 1996 Mayor's Office budget, the provision for an additional part-time employee at a cost of $19,000.00. Councillor Jake Smola indicated his support for the motion, on the basis that members of Council must lead by example in the areas of staffing and budget control. Councillor John Smola advised that he would not support the motion, as he feels the present staff are under an unreasonable amount of stress. Councillor Ziegler advised that he would not support the motion on the basis of the quantity of work, and the fact that at present the office is operating with a minimum number of staff. The previous motion by Councillor B. Vrbanovic to eliminate the budget provision relative to an additional part-time staff person was voted on and Lost. Moved by Mayor R. Christy - "That a budget line in the amount of $8,000.00 be added to the Mayor's Office budget to fund special events, and that any expenditures in excess of this budgeted amount be first considered, and if appropriate, approved by Council." Councillor Galloway questioned why the $8,000.00 amount is required at all, and suggested that Council could meet to discuss the possible overexpenditure of an existing budget item. Mayor Christy argued in favour of the proposed special events budget and questioned why, to date, Kitchener has done nothing to recognize veterans of World War II. He also referred to visits by dignitaries for which the City may receive limited notice and which require some sort of expenditure. Councillor Galloway pointed out that concern over these expenditures arose as a result of the Lord Kitchener visit and that in his opinion he feels Council should consider all such events and there should be no special budget in this regard. He also suggested that the City should not be involved FINANCE & ADMINISTRATION COMMITTEE MINUTES JAN UARY 15, 1996 -11 - CITY OF KITCHENER in planning events where a dignitary visits the City at the request of an individual who is not a member of Kitchener Council. Councillor Wagner noted that the budget amount requested should be approved, noting that the citizens of Kitchener have an opportunity to judge the Mayor's expenditures in subsequent elections. Councillor Weylie requested that the account presently entitled "Pins and Pens" be changed to "Recognition" or some other more appropriate title which reflects the larger scope of the expenditure. She also referred to recent visits by the Lieutenant Governor and the Premier of Ontario, both of whom were not invited by Kitchener Council, and asked that this item be included for discussion on an agenda of the Finance and Administration Committee in January or February. The previous motion by Mayor R. Christy to adopt a special events budget, with restrictions on expenditures, was voted on and Carried. On a motion by Councillor M. Wagner - It was resolved: "That the balance of the 1996 Operating Budget for the Mayor's Office be adopted subject to a final decision on the proposed 1% inflationary increase in staff wages." Mr. Gazzola reviewed highlights of the City Council budget, noting that there has been no increase over the approved 1995 amount. There were no items on the A,B or Z list. On a motion by Councillor M. Wagner - It was resolved: "That the 1996 Operating Budget for City Council be adopted subject to a final decision on the proposed 1% inflationary increase in staff wages." Mr. Gazzola reviewed highlights of the Parks and Recreation Department budget on a division by division basis noting an overall decrease, net of revenues, totalling .3%. He noted that there are Department reductions on List A totalling $101,000.00, and on List B totalling $54,000.00. Mr. Clancy pointed out that it was his impression that the two items on List B relating to Downtown banners and reduced tree light replacement were to be on List Z. Councillor Jake Smola questioned the $18,000.00 amount attributed to staff reorganization and asked for the total savings to the City as result of reorganizing the Department. Mr. Clancy replied that the total savings in staff wages amounted to approximately $200,000.00 and that the $18,000.00 amount referred to relates to an increase in wages for the Assistant General Manager. Councillor Wagner questioned the suggestion that the City would charge for replacement boulevard trees, and Mr. Clancy replied that if damaged by a car, replacement cost is usually handled through the City's insurance. Mr. Daly advised that the cost of replacement is between $80.00 and $100.00, of which 50% would be charged to the homeowner if the tree did not die of natural causes. He acknowledged that the option would be no replacement and that this charge amounts to a service cut. Mr. Daly further suggested that the Division anticipates there will be fewer trees to be replaced, but that the survival rate of those planted would increase as the property owner would have a greater stake in caring for the tree. Councillor Wagner suggested that if approved, the Division should keep track of instances where trees are not replaced so as to evaluate the impact on the overall streetscapes. The Committee generally agreed to a suggestion from Mr. McKay that the List B item relative to Downtown banners be moved to List Z. Councillor Lorentz indicated that he could not support a reduction in the Tree Replacement Program and the Committee generally agreed to his request that a report, with options, be discussed at the January 22, 1996 Community Services Committee meeting. On motion, the Committee agreed to deal with the List B items after having considered the budget submissions for all divisions of the Parks and Recreation Department. On a motion by Councillor M. Wagner - It was resolved: FINANCE & ADMINISTRATION COMMITTEE MINUTES JAN UARY 15, 1996 -12- CITY OF KITCHENER "That the 1996 Operating Budget of the Parks Operation Division of the Parks and Recreation Department be adopted subject to a final decision on the proposed 1% inflationary increase in staff wages." The Committee recessed at 12:50 p.m. for lunch and reconvened at 1:15 p.m. Mr. David Smith, General manager, appeared on behalf of Project Lift. Mr. Gazzola reviewed highlights of the Project Lift budget, noting a 6.1% increase. It was also noted that one item appears on List A involving introduction of an annual registration fee. Mr. Gazzola noted that there has been an increase in registered riders from 2,000 in 1986 to 6,000 in 1996. He also drew the Committee's attention to a decrease in Ministry of Transportation funding totalling $90,000.00. Councillor Ziegler reminded the Committee that Council had previously agreed that the City would not offset any Provincial funding cuts. Councillor John Smola advised that the Project Lift Board of Directors had previously approved a fare increase from $1.60 to $2.25, and that this was subsequently reduced to a fare increase of $2.00 with a $10.00 annual registration fee by the City's Administrative Review Committee. Mr. Smith advised of an informal telephone survey in which 90% of the people contacted agreed with the fare increase and a registration fee, but indicated that they wanted the same level of service. Mr. Smith further estimated that two thirds of the people involved would pay the registration fee but that a number of people would likely drop off the system and find alternate means of transportation. Councillor John Smola also noted that the City of Kitchener's funding portion is increasing by 2%, whereas the City of Waterloo's is remaining the same. Mr. Smith explained that this is due to the nature of the reserve contingency and the fact that Kitchener has always operated on a seven year replacement schedule for vehicles, whereas Waterloo operates on a six year timeframe. Councillor Ziegler also advised that with regard to any wage increase in 1996, Project Lift should understand that its staff will be treated the same as City staff, and that any budget approvals this date are subject to a final decision on a 1996 inflationary increase in staff salary. Councillor John Smola put forward a motion to impose a $2.25 Project Lift fare in 1996, and with no registration, with the Board of Directors to advise of any concerns in this regard. Mr. McKay recommended that the Committee adopt a total budget figure and let the Board decide on an appropriate allocation, and Councillor John Smola withdrew his previous motion. On a motion by Councillor John Smola - It was resolved: "That a Municipal appropriation for contractual services in the amount of $675,000.00 be approved for Project Lift, with their Board of Directors to decide the issue involving the proposed fare increase and registration fee." On a motion by Councillor M. Yantzi - It was resolved: "That the 1996 Operating Budget of the Administration Section of the Parks and Recreation Department be adopted subject to a final decision on the proposed 1% inflationary increase in staff wages." The Committee then returned to the Parks and Recreation Department budget and Mr. Gazzola reviewed highlights of the Culture and Special City Events Division budget, noting a decrease of 6.8% and an item on List A involving a reduction in the Arts Award Program for a saving of $2,000.00. Mr. McKay pointed out that the reduction would match an initiative taken by the City of Waterloo. On a motion by Councillor M. Wagner - It was resolved: "That consideration of a possible reduction in the Arts Award Program be deferred and referred to the January 19, 1996 Budget meeting to obtain further input." FINANCE & ADMINISTRATION COMMITTEE MINUTES JAN UARY 15, 1996 -13- CITY OF KITCHENER On a motion by Councillor K. Redman - It was resolved: "That the 1996 Operating Budget of the Culture and Special City Events Division of the Parks and Recreation Department be adopted subject to a final decision on the proposed 1% inflationary increase in staff wages." Mr Gazzola reviewed highlights of the Aquatics Section budget, noting a reduction of 2.5%. He also advised of an item on List A involving the closing of Wilson and Idlewood pools for a saving of $60,000.00. A lengthy discussion took place concerning the suggested pool closures. Councillor Vrbanovic indicated that on the basis the pools are located in a high density area of the City, he would not support closing the facilities, and suggested closings of this sort may have an indirect impact on crime and vandalism. Councillor Ziegler argued that previous initiatives to limit programs and hours of operation for the pools are responsible for a decline in use to the point where closing them is now being suggested. Councillor B. Vrbanovic put forward a motion to adopt the 1996 Operating Budget for the Aquatics Section, subject to a final decision on any increase in staff wages. Councillor Galloway inquired as to the City subsidy per bather at each of the two pools and Mr. Beaudry replied that the figures are $8.01 for Wilson pool and $5.28 for Idelwood, compared to $1.69 for Harry Class pool. Councillor Lorentz advised that he would not support closing the pools, noting that List A offers up a number of popular public services. He suggested that significant cuts can only be made through looking at senior administrative positions. Councillor Wagner suggested that cuts should be made uniformly across the City, and that closing specific pools is a penalty to neighbourhood users. He also suggested that Council should first debate and decide upon what, if any, tax increase it will accept, and devise a budget to meet this target. Councillor Wagner suggested that more creative and imaginative ways to deal with the cutbacks are needed, for example, revisiting the City's current sick leave payout policy, and looking at things that can be done more efficiently in conjunction with Waterloo. Mayor Christy suggested that List A from the Parks and Recreation Department should be returned for a further review to identify internal administrative economies, following which the Department would come forward with additional suggestions in this regard. Councillor Vrbanovic agreed to a number of amendments to his previous motion, and the Committee then voted on the following motion, as amended. On a motion by Councillor B. Vrbanovic - It was resolved: "That the 1996 Operating Budget of the Aquatics Section of the Parks and Recreation Department be adopted subject to a final decision on the proposed 1% inflationary increase in staff wages, and, That no action be taken to close the Wilson and Idlewood pools in 1996, and, That the Parks and Recreation Department be asked to revisit their list of proposed spending reductions, including a review of internal administration in order to identify any economies in this regard, and further, That the Department undertake an evaluation of aquatics facilities relative to their use and relationship to other privately owned facilities." Mr. Gazzola reviewed highlights of the budget for the Senior Citizens and Special Needs Section, noting that List A contains an item involving an increased volunteer-in-training fee for a saving of $3,000.00. On a motion by Councillor M. Wagner - It was resolved: FINANCE & ADMINISTRATION COMMITTEE MINUTES JAN UARY 15, 1996 -14- CITY OF KITCHENER "That the 1996 Operating Budget of Senior Citizens and Special Needs Section of the Parks and Recreation Department be adopted as amended to include an increase in volunteer-in-training fees for a projected saving of $3,000.00, and subject to a decision on the proposed 1% inflationary increase in staff wages." Mr. Gazzola reviewed highlights of the Community Development Section budget noting a 1.4% increase. He also advised of three items on List A involving elimination of the St. Anne's and Bridgeport playgrounds, a surcharge for playground participants and a surcharge on Community Center programs for a combined projected savings of $34,000.00. Councillor Jake Smola inquired whether the Neighbourhood Associations were aware of the surcharge recommendation, and Mr. Arnot advised that they were being advised this date. Councillor Jake Smola suggested that such a surcharge is counter-productive as Neighbourhood Associations re-invest community revenues in programs they sponsor. He also questioned why, given the size of the Parks and Recreation Department budget, they are recommending surcharges. On a motion by Councillor Jake Smola - It was resolved: "That the items relative to a surcharge on playground participants, and a surcharge on Community Centre programs be removed from List A." On a motion by Councillor C. Weylie - It was resolved: "That the volunteer-in-training fee be increased for a projected savings of $3,000.00" On a motion by Councillor G. Lorentz - It was resolved: "That the 1996 Operating Budget of the of the Community Development Section of the Parks and Recreation Department be adopted as amended this date, subject to a final decision on the proposed 1% inflationary increase in staff wages." Mr. Gazzola reviewed highlights of the Kitchener Public Library Board (KPL) budget noting a 1.7% increase. He also advised of two items on List A involving elimination of the remaining bookmobile services and the closing of the Library on Sundays in the early Fall for a combined saving of $39,000.00, as well as two items on List Z involving a reduction in circulation services and a delay in opening for a combined saving of $66,000.00. Ms. Peggy Walshe, Chief Executive Officer, and Mr. Bruce MacNeil, Chairman of the Board of Directors, appeared on behalf of the KPL Board. Mr. MacNeil advised that the Province has cut Library funding by approximately $97,000.00, half of which has been dealt with. Councillor Galloway advised that he is opposed in principle to subsidizing Provincial grant reductions noting that approximately $50,000.00 in Provincial cuts have yet to be offset through Library budget reductions. Mr. Gazzola suggested that the projected Library budget should be reduced by this amount with the adjusted total being $5,453,000.00. The Committee then discussed the various budget reduction options outlined in Lists A and Z. Mr. MacNeil advised that the bookmobiles are the least used library service and that eliminating them would have a lesser impact than reducing the hours of operation at the Main Library and branches. In regard to the proposed closing of the library on Sundays during the Fall, Mr. McKay clarified that it is only proposed that the current Fall closing be extended until after Thanksgiving. In response to questions from the Committee, Mr. MacNeil advised that the Library Board is dealing with grant reductions in part through the elimination of four positions and the underfilling of a fifth. It was also noted that the $35,000.00 figure associated with the elimination of the bookmobile represents part-time staff and some full-time hours, but does not include any proceeds from the sale of the vehicles themselves. Mr. MacNeil pointed out that the bookmobile fleet is aging and if retained, will require replacement at a significant capital expense. A better alternative would be to purchase a more freestanding vehicle which he referred to as an "ELF" and that fundraising for a replacement vehicle could be pursued. Councillor Galloway inquired as to how the Library would FINANCE & ADMINISTRATION COMMITTEE MINUTES JAN UARY 15, 1996 -15- CITY OF KITCHENER offset the remaining funds due to Provincial cutbacks and Ms. Walshe replied that it was hoped that this would be made up through reduced circulation services as outlined in List Z. Moved by Councillor M. Wagner - "That a 1996 Municipal appropriation of $5,414,000.00 be approved for the Kitchener Public Library Board with this amount incorporating a reduction of $35,000.00 as a result of eliminating remaining bookmobile services, and a reduction of $4,000.00 as a result of extending the closing of the Library on Sundays in the Fall, and further, That the above is subject to a final decision on the proposed 1% inflationary increase in staff wages." Councillor Jake Smola put forward and then withdrew a proposed amendment which would direct the proceeds from the sale of any bookmobile equipment to the KPL Operating Budget. Mr. McKay suggested the estimated $50,000.00 amount be placed in the Capital Contingency. The previous motion by Councillor Wagner relative to adopting the Kitchener Public Library budget was voted on and Carried. Councillor Wagner asked that Library staff track Sunday use in order to determine any impact due to a recent decision by the City of Waterloo to close its library on Sundays. He suggested that it may be worth considering reinstating an out-of-town user fee. Mr. Gazzola reviewed highlights of the Auditorium and Farmers' Market budget noting a decrease of 2%. There were no items on the A,B or Z list. On a motion by Councillor M. Yantzi - It was resolved: "That the 1996 Operating Budget of the Auditorium and Farmers' Market Section of the Parks and Recreation Department be adopted, subject to a final decision on the proposed 1% inflationary increase in staff wages." Mr. Gazzola reviewed highlights of the Arenas, Athletics, Desi.qn and Development Sections of the Parks and Recreation Department noting a 6.9% decrease. He also advised of one item on List A involving a charge to the Board of Education for ice time at a savings of $2,000.00. Mr. McKay also reminded the Committee that it is recommended all grants be reduced by 5% in 1995 and a further 5% in 1996. It was also noted that Waterloo is proposing 10% reductions in each year. On a motion by Councillor G. Lorentz - It was resolved: "That Council implement a charge to the Board of Education for ice time as outlined in List A for a savings of $2,000.00." Moved by Councillor G. Lorentz - "That the 1996 Operating Budget of the Arenas, Athletics, Desi.qn and Development Sections of the Parks and Recreation Department be adopted as amended this date, subject to a final decision on the proposed 1% inflationary increase in staff wages." Councillor John Smola indicated his concern that raising user fees by 7% and reducing grants by 5% is wrong and in effect penalizes some organizations. He offered the opinion that grants should not be reduced at all in 1996. Councillor Wagner suggested that in preparation for the 1997 Budget, staff should look at the efficiency and productivity of individual organizations as well as how dependent they are on City grants, and as a result grants should be reduced on an ad hoc basis in order to reach a net 5% decrease. Councillor John Smola put forward a motion that there be no 5% reduction in sports grants in 1996, with the corresponding $25,000.00 amount being added back into the budget. FINANCE & ADMINISTRATION COMMITTEE MINUTES JAN UARY 15, 1996 -16- CITY OF KITCHENER Mr. Clancy clarified that the facility rental increase is intended to catch up with rates charged by neighbouring municipalities. The amending motion by Councillor John Smola to eliminate a 5% reduction in sports grants was voted on and Lost. The main motion to adopt the budget for the Arenas, Athletics, Design and Development Sections was then voted on and Carried. Mr. Gazzola reviewed highlights of the Cemeteries Section budget, noting that there are two items on List A involving a surcharge for concrete vaults and extension of maintenance contracts totalling $15,000.00 and an item on List B involving a charge for Saturday burials for a savings of $17,000.00. On a motion by Councillor G. Lorentz - It was resolved: "That the recommended budget reductions on List A involving a surcharge on concrete vaults and an extension of the maintenance contracts to Beth Jacob Synagogue and Lutheran Cemetery be adopted." On a motion by Mayor Richard D. Christy - It was resolved: "That the item on List B involving a charge for Saturday burials be adopted." Councillor Wagner asked that he be recorded as opposed to Saturday burials. On a motion by Councillor G. Lorentz - It was resolved: "That the 1996 Operating Budget of the Cemeteries Section of the Parks and Recreation Department be adopted as amended this date, subject to a final decision on the proposed 1% inflationary increase in staff wages." Mr. Gazzola reviewed highlights of the budget for the Golf Course Enterprises. A brief discussion took place concerning membership options and Councillor John Smola expressed his interest in requiring non-resident members to take Option #2. He advised that he would forward additional information during the Budget process and may request a policy in this regard. It was generally agreed that this item would be discussed further at the January 22, 1996 meeting of the Community Services Committee. On a motion by Councillor T. Galloway - It was resolved: "That the 1996 Operating Budget for the Golf Course Enterprises be adopted, subject to a final decision on the proposed 1% inflationary increase in staff wages." Councillor Jake Smola requested a printout by Department showing the unexpended portion of Operating Budgets in each of the last three or four years. Mr. Gazzola reviewed highlights of the Le,qal Department budget, noting that there is one item on List Z involving the elimination of one support staff for a projected savings of $40,000.00. Councillor Galloway questioned the impact of the staff reduction and Mr. Shivas replied that, without identifying a specific position, fewer staff would generally mean slower internal and external response time. He also stressed that staff are not recommending the option on List Z on the basis that this would hurt the functioning of the Department. Councillor Jake Smola inquired whether as a result of the reorganization, Council can expect further salary adjustments or progressions, and Mr. Shivas replied that there are at present two outstanding progressions. FINANCE & ADMINISTRATION COMMITTEE MINUTES JAN UARY 15, 1996 -17- CITY OF KITCHENER On a motion by Mayor Richard D. Christy - It was resolved: "That the 1996 Operating Budget for the Le.qal Department be adopted, subject to a final decision on the proposed 1% inflationary increase in staff wages." Mr. Gazzola reviewed 1996 municipal appropriations for the K-W and Area Visitor and Convention Bureau and the Humane Society. On a motion by Councillor G. Lorentz - It was resolved: "That a municipal appropriation for contractual services be approved for the K-W and Area Visitor and Convention Bureau in the amount of $190,000.00 with this figure to include five municipal memberships and all taxes." On a motion by Councillor G. Lorentz - It was resolved: "That a municipal appropriation for contractual services in the amount of $322,000.00 be approved for the Humane Society." Mr. Gazzola reviewed highlights of the Fire Department budget noting an item on List A involving a combined fire dispatch with the City of Waterloo for a projected savings of $100,000.00. Councillor Jake Smola asked that before Budget Day, the Fire Department conduct a survey of Windsor, Markham, York, Kingston and Vaughn to determine staffing numbers for pumper crews, as well as per capita staffing generally. Councillor Smola explained that Cambridge is presently considering a three person pumping crew, and that in his opinion this issue should be addressed either now or at a later date. Councillor Lorentz requested additional information on the status of negotiations with regard to the combined dispatch. Deputy Chief Kuntz replied that two meetings have been held with Kitchener staff on the Implementation Committee and that a meeting is planned with Waterloo on January 17, 1996. It was generally agreed that an update on this item would be given at the January 22, 1996 In-Camera meeting of City Council. Moved by Councillor G. Lorentz - "That the recommended budget reduction on List A involving a combined dispatch with the City of Waterloo be adopted." Councillor Galloway noted that Cambridge has recently expressed an interest in participating in a joint dispatch, and asked whether staff are investigating the possibility, and whether in their estimation this is a subsequent process outside of the initiative involving Waterloo. Fire Chief Hancock acknowledged that the Cambridge plan must be addressed, but would mean significant layoffs in Kitchener and Waterloo. He also noted that at present, a combined Kitchener-Waterloo dispatch could provide for the entire Region. Councillor Galloway inquired as to the three person pumper crew option and Fire Chief Hancock advised that at present Kitchener uses a crew of five if staffing allows, but is protected at four crew members. Councillor Galloway asked what savings could be expected from a reduced crew, where four crew members remain protected, and Deputy Chief Kuntz advised that he could return with statistics prior to Budget Day to illustrate the staffing compliment since March. Councillor Galloway noted that neighbouring municipalities are reducing their staffing levels in this area and it appears that Kitchener is not, and asked how operating at this higher level could be justified. Fire Chief Hancock replied that given the size of the City and its population, Kitchener's cost per capita and the number of firefighters per capita are efficient. Mayor Richard D. Christy left the meeting at this time. FINANCE & ADMINISTRATION COMMITTEE MINUTES JAN UARY 15, 1996 -18- CITY OF KITCHENER Councillor Jake Smola inquired whether consideration had been given to having either firefighters or civilians perform fire prevention and inspection work. Mr. McKay replied that Kitchener has been using firefighter suppression crews for inspections as well as non-suppression firefighters for fire prevention work. He noted that use of civilians for inspection would qualify as contracting out the service and would require major negotiations and possibly arbitration. Councillor Vrbanovic suggested reducing the number of individuals on a pumper crew and allowing the present fifth crew member to do fire prevention/inspection work and be called in for fire suppression on an as- required basis. Fire Chief Hancock responded that Kitchener is already doing this indirectly, and in addition is keeping the suppression team intact which results in better response times. The previous motion by Councillor G. Lorentz to adopt the recommendation on List A relative to a joint Fire dispatch was voted on and Carried. On a motion by Councillor K. Redman - It was resolved: "That the 1996 Operating Budget of the Fire Department as amended this date, be adopted, subject to a final decision on the proposed 1% inflationary increase in staff wages." Mr. Gazzola reviewed highlights of the Planninq and Development Department budget noting a proposed 6.8% increase. He also advised of six items on List A with a total projected savings of $52,000.00 and one item on List Z involving the elimination of co-op students totalling $36,000.00. Mr. McCabe advised that an additional item should have appeared on List Z involving the mediation services contract for a projected savings of $6,000.00. Councillor Jake Smola asked for an explanation of the Planning Department reorganization, and the associated cost of $97,000.00. Mr. McCabe replied that the actual figure is $92,000.00 in 1996 and this does not include the $110,000.00 savings involving the salary of the previous Commissioner of Planning which would result in a net savings as a result of the reorganization of $18,000.00. Councillor Jake Smola inquired whether the City had paid an early retirement incentive to the former Commissioner and Mr. McKay replied in the affirmative. Mr. McKay pointed out that savings have occurred, but that workload has also increased substantially and that this was reflected through the re-evaluation by the City Rating Committee. It was also noted that the Department is providing additional support services in the area of Heritage and the Environment. Mr. McCabe argued that the Department is operating at a higher level of efficiency with the same number of staff. Councillor Galloway indicated that he was quite disappointed with the meagre $18,000.00 saving due to the reorganization, noting that in some cases Council has approved very lucrative severance packages in anticipation of realizing significant savings. He pointed out that the efficiency of the Department was not the basis on which the reorganization was sold to Council, but rather on the benefit of savings. He also noted that the savings are not only less than anticipated, but Council is now being asked to add an additional $92,000.00 in salary to the 1996 Planning budget. Councillor Galloway further suggested that under the circumstances and in the current economic environment, it may be desirable to take on additional duties without additional renumeration. Mr. McKay responded that the addition of $92,000.00 is more than offset in earlier budget reductions, and that the salary administration and review system currently in use was approved by Council and at present forms part of the CUPE Contract. Councillor Ziegler inquired whether any salaries have gone down, and Mr. McCabe replied that eight positions have reduced salaries which will take effect in July of this year. It was noted that this was reflected in the $92,000.00 amount. In response to a question from Councillor Jake Smola, Mr. Witmer advised that the Inspection staff have been cross-trained in both building and plumbing inspections, and as a result progressions of one job grade occurred. Councillor Weylie inquired as to the value of cross-training given the increased staffing costs and Mr. Witmer replied that it allows for greater flexibility and better handling of the volume of permits. Moved by Councillor M. Wagner - "That the 1996 Operating Budget of the Plannin.q and Development Department be FINANCE & ADMINISTRATION COMMITTEE MINUTES JAN UARY 15, 1996 -19- CITY OF KITCHENER adopted, as amended, to include all of the items pertaining to the Department on List A, and subject to a final decision on the proposed 1% inflationary increase in staff wages." Councillor M. Yantzi disclosed a conflict of interest and abstained from all voting and discussion concerning a proposed reduction in the Community Mediation Services contract, as he is employed by that agency. In response to a question from Councillor Vrbanovic, Mr. Witmer advised that four additional Property Standards Officers have been added to the staff complement based on an increased number of complaints as well as one Co-ordinator, and that these individuals are responsible for the enforcement of all related by-laws. Councillor Vrbanovic inquired as to the impact of eliminating one or all of the co-op students and Mr. Stanley replied that the students add a significant value to the Department in terms of research, analysis and special projects. He pointed out that in addition, they solidify the relationship between the City and the University of Waterloo, which is a benefit to the municipality in terms of access to research. Mr. Stanley also noted that the City has an historical obligation to provide this apprentice service and referred to a number of projects in which students participated in the past as well as a list of 1996 projects. Councillor Vrbanovic inquired as to the impact if the number of students were reduced to two and the balance of the research done by existing staff. Mr. Stanley replied by noting that through restructuring and secondments the Department has already given up the services of Bin Newell and David Corks and that the only remaining Planning Technician is the Co-ordinator of Mapping and Graphic Services. He also noted that List Z is structured in two components so as to allow for partial elimination. Councillor B. Vrbanovic put forward a motion to adopt the item on List Z relative to elimination of one co-op student. Councillor T. Galloway disclosed a conflict of interest and abstained from all voting and discussion concerning elimination of the co-op students as he is employed by the University of Waterloo. The amending motion by Councillor B. Vrbanovic to adopt the item on List Z relative to elimination of one co-op student was voted on and Lost. The motion by Councillor M. Wagner to adopt the Planning and Development Committee report along with all of the items on List A was then voted on and Carried. NEXT MEETING The next meeting scheduled to review the 1996 Operating Budget will be held on Friday, January 19, 1996. ADJOURNMENT On motion, the meeting adjourned at 6:00 p.m. ........... G. Sosnoski ........... Manager of Corporate ........... Records/Assistant City Clerk