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HomeMy WebLinkAboutFinance & Admin - 1996-01-29 SFAC\1996-01-29-SPE JAN UARY 29, 1996 FINANCE & ADMINISTRATION COMMITTEE MINUTES CITY OF KITCHENER The Finance and Administration Committee met this date, commencing at 4:00 p.m., under the Chairmanship of Councillor J. Ziegler with the following members present: Mayor R. Christy, Councillors T. Galloway, M. Wagner, M. Yantzi, John Smola, Jake Smola, B. Vrbanovic, G. Lorentz and C. Weylie. Councillor K. Redman was in attendance for part of the meeting. Others Present: Ms. V. Gibaut, Messrs. T. McKay, J. Gazzola, E. Kovacs, J. Hancock, T. McCabe, D. Paterson, L. Parkhouse, R. Arnot, T. Clancy, J. Shivas and G. Sosnoski. The purpose of this special meeting was to further consider issues relating to the 1996 Operating Budget. 1.1996 OPERATING BUDGET Mr. Ernie Ginsler appeared on behalf of the Social Planning Council concerning municipal grant funding. Councillor Jake Smola clarified that he had requested Mr. Ginsler appear in the wake of a recent Waterloo decision to significantly reduce their grant to the Planning Council, and in order to provide additional information on the services provided to the City of Kitchener. Mr. Ginsler circulated figures relating to 1995 funding levels for the Social Planning Program as well as information on consulting activities. Mr. Ginsler explained that the City of Waterloo has maintained the 1995 funding level for the Community Information Centre; however, has withdrawn all funding from the Social Planning Program. It was noted that the City of Waterloo grant had accounted for 16.7% of the budget for the Social Planning section. Councillor Jake Smola inquired as to the impact on Kitchener of the Waterloo grant reduction, and Mr. Ginsler replied by reading a list of services which will no longer be provided to the City of Waterloo and a second list of services which will continue to be provided to the City of Kitchener. Councillor Galloway questioned the three to one funding ratio of Kitchener to Waterloo grant amounts. Mr. Ginsler explained that this ratio is the traditional funding relationship based on population ratios in 1971 when the Planning Council was founded. He further clarified that Kitchener and Waterloo do not fund the Social Planning Program alone, but that revenue is also generated through sale of services and fundraising. In response to a further question from Councillor Galloway, Mr. Ginsler stated that very little of the funds provided by Kitchener are used for programs which cross municipal boundaries. He also noted the proposed 5% reduction in funding for the Planning Council and stated that it can be assumed the City of Kitchener will receive 5% less in terms of 1996 service. Councillor Galloway clarified his comments to indicate that he is interested in insuring that the City of Kitchener's grant is not being used to offset a Waterloo grant reduction. Councillor K. Redman entered the meeting at this time. Councillor Jake Smola inquired whether consideration had been given to providing Social Planning Services on a Region-wide basis and Mr. Ginsler replied in the affirmative, noting that in his estimation the cost to provide the service would be greater at the Regional level. He also pointed out the differing histories and perspectives of the two municipalities who currently subsidize Social Planning Councils. Councillor Weylie questioned whether it was necessary to circulate the Planning Council with zone change applications, and Mr. McCabe advised that this was done at their request. He noted that their prominent involvement in the past related to group homes, and there is less likely to be a need in future in the wake of enacting a comprehensive zoning by-law. Councillor Jake Smola referred to funding of the Community Information Centre and municipal representation on the Board of Directors of the Planning Council. He also asked for an explanatory note by the auditor relative to bonuses given to employees of the Planning Council in 1995, particularly why these were given through a publicly funded agency. Mr. Ginsler advised that he would bring this to the attention of the auditor. Councillor Vrbanovic stressed the need for the City to re-evaluate why grants are provided to community agencies and whether they fall within the mandate of the municipality. 1.1996 OPERATING BUDGET (CONT'D) FINANCE & ADMINISTRATION COMMITTEE MINUTES JAN UARY 29, 1996 - 42 - CITY OF KITCHENER On a motion by Councillor B. Vrbanovic - it was resolved: "That a committee be struck to review the criteria for annual grants provided by the City to community groups, and report to the Finance and Administration Committee no later than September, 1996 with recommendations and a possible implementation plan relative to the 1997 Budget." Councillor Wagner suggested that such criteria could include the degree of community support provided by the organization, the number of jobs it creates and whether or not it is run efficiently. Councillor Lorentz suggested that the original funding criteria should also be available for consideration in relation to any new criteria. Ms. M. Walshe, Chief Executive Officer, and Mr. Bruce MacNeil, Chairman, appeared on behalf of the Kitchener Public Library. The Committee was in receipt this date of a memorandum from Ms. M. Walshe dated January 25, 1996 containing additional information on the bookmobile service, the proposed elimination of which would save $35,000.00. They were also in receipt of a map showing the current stops for bookmobile service and an extract from the City's Official Plan as it relates to the provision of library services for Kitchener residents. Both Councillor Ziegler and Councillor Vrbanovic referred to correspondence they had received from residents urging the City not to eliminate the bookmobile. Councillor C. Weylie put forward a motion that notwithstanding an earlier recommendation of the Finance and Administration Committee, bookmobile service be retained in 1996, if or until an alternate method of delivering this service is implemented. Councillor Lorentz referred to earlier comments made by the Library concerning the cost of operating the bookmobile fleet and its continued deterioration. He noted that it had been pointed out bookmobile circulation continues to decline, and he questioned where the Library would get $300,000.00 to purchase a new bookmobile. Councillor Ziegler argued that the circulation numbers are significant, notwithstanding the relatively small percentage of total KPL circulation. Councillor Weylie accepted, as a friendly amendment, a suggestion by Councillor Jake Smola that consideration be given to an annual non-resident fee to offset the cost of continuing bookmobile service, and that the $35,000.00 budget reduction relative to eliminating this service remain. Councillor B. Vrbanovic made a further suggestion, which was also accepted as a friendly amendment, to the effect that the Library work with Kitchener staff to investigate the possibility of combining non-resident user fee revenue in 1996 and 1997 with the City's Vehicle Replacement Reserve to replace the two existing bookmobile units with a single unit and report back on this initiative. Councillor Galloway suggested that identifying further expenditure reductions to offset Provincial cuts is a separate issue from that involving new revenue. He further asked that additional savings be identified to compensate for the $35,000.00 amount. Councillor Wagner suggested that the bookmobile service be reviewed after the current year, and that user fees in general be investigated throughout the City on the basis of whether appropriate or needed. Mr. MacNeil advised that the Library Board would likely accept non-resident user fees if they were seen as a general fee for service, rather than an punitive measure. Ms. Walshe clarified that if the current bookmobile service is retained, something will have to be done about the existing fleet and reviewed the criteria of the Board in recommending elimination; namely, Iow usage, high maintenance costs for existing vehicles and the high capital replacement cost. She pointed out that the $35,000.00 reduction amount initially identified would be necessary to operate the bookmobile in 1996. 1.1996 OPERATING BUDGET (CONT'D) Councillor John Smola advised that he can support a non-resident user fee, and continuance of the bookmobile service with an appropriate business plan. However, he suggested that developing technology would likely replace the need for bookmobiles in the not too distant future. Councillor Weylie referred to the results of a recent resident survey conducted by the Progressive Marketing FINANCE & ADMINISTRATION COMMITTEE MINUTES JAN UARY 29, 1996 - 43 - CITY OF KITCHENER Group which indicated a high degree of use, satisfaction and importance with respect to the Library's service. She suggested that the bookmobile service should be retained and referred to individuals who had offered to assist on a volunteer basis. Councillor Weylie also suggested that the bookmobile itself should be more aggressively marketed. The Committee then considered the following motion by Councillor C. Weylie, as amended. "That notwithstanding the previous motion by the Finance and Administration Committee, the Kitchener Public Library maintain existing bookmobile services in 1996, if or until an alternate method of delivering this service is implemented, and, That consideration be given to implementing an annual non-resident fee to offset the cost of continuing the bookmobile service, and, That the $35,000.00 reduction in the appropriation to the Library initially attributed to elimination of the bookmobile service remain, and further, That the Library Board work with City of Kitchener staff to investigate the possibility of using the remainder of non-resident user fee revenue in 1996 and all such revenues in 1997, together with the City's Vehicle Replacement Reserve, to replace the two existing bookmobiles with a single customized, barrier-free, self-contained unit (ie. ELF), with a report back to the Finance and Administration Committee by March of 1996." Councillor Lorentz suggested that the Library Board should meet and come back with a suggested fee amount and revenue projections on or before Budget Day. Ms. Walshe replied that a $25.00 non- resident fee was imposed in 1986, but that a fee in the area of $10.00 may be more appropriate. However, she cautioned that the Library is proposing other new fees and that there is limited revenue in this regard. She noted that the issue would have to be discussed further by the Library Board, and pointed out that at present there is a $35.00 non-resident fee for individuals living outside of the Region. Mr. MacNeil indicated that it may be possible for the Executive of the Library Board to meet prior to Budget Day, and in closing stressed that a very small percentage of the community uses bookmobile services. On a motion by Councillor M. Wagner - it was resolved: "That the issue of the possible elimination and replacement of the current bookmobile service provided by the Kitchener Public Library (KPL) be deferred and referred to Budget Day pending a response from the Executive of the KPL Board concerning implementation of a non-resident user fee, input on how the corresponding $35,000.00 budget reduction could be accommodated in the event bookmobile service is retained, as well as any additional comment the Board can provide at this time concerning costs associated with retaining the current bookmobiles, or alternatively replacing these with a custom, barrier-free, self- contained RV (ELF)." Councillor Ziegler asked that a copy of the motion put forward by Councillor Weylie this date be sent to the Kitchener Public Library and members of Council. Mr. Gazzola gave an update on the status of the 1996 Operating Budget, noting that wage and consumable inflation has been removed from all Department and Board budgets. He advised that the levy increase presently stands at .65% with an impact on the average household of $4.00, and that no levy increase would require an additional reduction in expenditures of $373,516.00. 2.OTHER BUSINESS On motion, the following three items referred to the meeting this date were in turn referred to the regular Finance and Administration Committee meeting on February 5, 1996; namely, parking - employees of City Hall tenants; early retirement incentive; employee sick leave payout. Councillor Lorentz referred to circumstances involving a Hawkers and Pedlars Licence where the vendors FINANCE & ADMINISTRATION COMMITTEE MINUTES JAN UARY 29, 1996 - 44 - CITY OF KITCHENER have not met the residency requirement, but have moved to the community. He suggested that the purpose of the requirement is to prevent transient sales which is not the case in this instance. On motion by Councillor Lorentz - it was resolved: "That Council grant the request of Gary Mulhall and Nancy Mulhall to waive the required non-resident fee for a Hawkers and Pedlars Licence relative to door-to-door sales within the City of Kitchener." Mr. Parkhouse advised that the Hawker and Pedlar fee for non-residents is normally paid in lieu of paying business taxes, and in this particular instance the individuals referred to would be paying neither. 3.ADJOURNMENT On motion, the meeting adjourned at 6:00 p.m. Records/Assistant City Clerk G. Sosnoski Manager of Corporate