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HomeMy WebLinkAboutFinance & Admin - 1996-12-10 SFAC\1996-12-10-SPE DECEMBER 10, 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: Mayor R. Christy, Councillors T. Galloway, John Smola, K. Redman, C. Weylie, M. Yantzi, M. Wagner, Jake Smola, G. Lorentz and B. Vrbanovic. Others present: Ms. P. Houston, Ms. R. Upfold, Ms. B. Baker, Ms. A. Tanner, Ms. V. Gibaut, Ms. M. Murphy, Messrs. J. Gazzola, E. Kovacs, J. Shivas, D. Mansell, S. Gyorffy, R. Arnot, B. MacDonald, B. Musselman, T. McCabe, D. Snow, T. Clancy, J. Cicuttin, J. McBride, L. Parkhouse, R. W. Pritchard, L. Proulx, D. Hergott, B. Gulliver, B. Stanley, M. Grummett, O. den Ouden, D. Paterson, J. Hancock, B. Kuntz, P. Beaudry, G. Sosnoski. 1. 1997 CAPITAL BUDGET AND TEN YEAR CAPITAL FORECAST 1996-2005 Ms. Houston presented the Capital Budget and Forecast as recommended by the Administrative Review Committee. She noted that at this point the Capital Forecast is in a balanced position for the years 1997 - 2000 and that the 1997 budget as submitted was approximately $331 million, up from the $328 million total in 1996. Changes made by the Administrative Review Committee reduced this amount to approximately $327 million. Ms. Houston provided an overview of expenditures by department and funding by source, noting that at present capital from current totals approximately $134 million dollars. Ms. Houston referred to changes in funding sources from 1980 to 1997 noting that capital funding from taxation has decreased from 45 percent to 41.1 percent; grants from 16.4 to 6.8 percent; with increases in lot levy contributions from 12.8 percent to 21.9 percent and contributions from enterprises from 22.2 percent to 27.5 percent. She noted that in 1997 there is no impact on the taxpayer for capital improvements, and referred to Council's capital policy which limits the impact in any one year to 2 percent. Ms. Houston noted that for budget purposes no assessment growth has been budgeted in 1997, but a figure of 2 percent has been used for the balance of the capital forecast. Inflation is calculated at 2 percent. Ms. Houston pointed out that between the years 1980 and 1997 capital expenditures grew by 87 percent, inflation growth was 84 percent; however, the impact on the average household of capital expenditures has been only 57 percent. She also noted that at present the City of Kitchener has a per capita debt of $64.00 per person compared to the Regional debt of $204.00 per person. Councillor Galloway referred to the "no-debit policy" recently discussed by the Cities of Cambridge and Waterloo. Mr. Gazzola referred to Kitchener's capital policy which limits debt to a minimum level of 7.5 mills per year. He pointed out that incurring some debt gives the municipality flexibility as opposed to a no-debit policy which restricts it's ability to make large capital purchases where either required or in the municipality's economic interest. He also noted that accumulating minimal debt also allows the completion of a number of smaller projects in a year where a large capital purchase is required. Councillor Jake Smola questioned how Kitchener compares to other municipalities, and Ms. Houston replied that Kitchener has one of the lowest per capita debts in the Province for municipalities of it's size. Ms. Houston advised that the lot levy funding is close to budget and will top the $1.4 million mark by the end of 1997. Councillor Wagner enquired as to the impact of recent changes to the Province's Development Charges Act. Mr. Mansell replied that a cursory check reveals a 2 percent impact on capital expenses split equally between hard and soft surfaces. He advised that a report in this regard will be available in future, but that the impact can be estimated at approximately $1 million for each of the ten years of the City's forecast. Councillor Wagner encouraged Council to examine closely how other municipalities are objecting to the legislative amendment, and suggested that reducing the development charges payable to the municipality is restricting it's ability to generate funding for growth. Ms. Houston reviewed the lot levy priorities for 1997, and Mr. Gazzola noted that at present there are sufficient funds to complete all projects; however, should there be a funding shortfall projects will be dealt with on the basis of the prioritized listing before Council this date. Councillor Vrbanovic questioned why the Stanley Park Library is near the end of the list as the new location is presently under construction and funds for the move are already committed. Mr. Gazzola suggested that this item should be moved up to position #10 on the lot levy priority list. FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 10, 1996 - 154 - CITY OF KITCHENER 1. 1997 CAPITAL BUDGET AND TEN YEAR CAPITAL FORECAST 1996-2005 - CONT'D On a motion by Councillor B. Vrbanovic, it was resolved: "That Item #18 (Stanley Park Library) on the Lot Levy Priority List be moved to priority #10, with the balance of the projects renumbered accordingly." Councillor Redman asked Mr. Arnot to provide an itemized list of the projects where park frontage charges will apply in 1997. Councillor Wagner suggested that the City approach the private contractor responsible for installing bus shelters to determine whether more of these can be put up in exchange for the right to advertise on the structures. Mr. Kovacs advised that he would pursue Councillor Wagner's suggestion. Ms. Houston reviewed, on a division by division basis, the highlights and issues for the Capital Budget and Forecast of the Public Works Department. Councillor Lorentz enquired as to projected expenditures for the Voisin Greenway. He pointed out that it was his recollection approximately $4 million was required to complete the work, and referred to ongoing problems of erosion and bank collapse. Mr. Gyorffy replied that the costs in the Capital Forecast reflect the total identified by the consultant. Councillor Lorentz asked for a report to the Finance and Administration Committee outlining the remedial plan and related costs at the various stages. Councillor Wagner questioned whether the dollar amounts allocated to street improvements reflects the increased expenditure previously suggested by Mr. Kovacs. Mr. Kovacs responded that his request was for $2 million annually, with the increased allocation being phased in over a number of years beginning in 1998. Councillor Wagner expressed concern over the long term impact of under-funding on municipal roads. He suggested that increased costs may be incurred in future to repair or replace roads which have been allowed to deteriorate. Mr. Kovacs pointed out that an updated road needs study will be undertaken in 1998, and at which point the City will have a clearer indication of the impact of current funding limits. He indicated his support for moving the road study and the related $150,000.00 expenditure up to 1997. Councillor M. Wagner put forward a motion to move the road needs study from 1998 to 1997. Councillor Ziegler suggested that if the motion is passed, staff should recommend a change to offset this shift. Councillor Redman advised that she supports the change on the basis that the expenditure does not come from another part of the road repair budget. On a motion by Councillor M. Wagner, it was resolved: "That the 1997 Capital Budget and Ten Year Capital Forecast for the Public Works Department be amended so as to move the $150,000.00 expenditure for a road needs study from 1998 to 1997." Councillor Redman expressed concern over moving the Bingeman Street project (Lancaster to Samuel Streets), and suggested that as redevelopment will not proceed in this area as planned, the project should be moved forward to at least 1998, if not 1997. Mr. Kovacs clarified that this project was removed from the Capital Forecast a number of years ago on the assumption that the plan development itself would pick up the cost; however, the project has since been added to the latter part of the Forecast. He explained that there is a conflict in the timing of replacement involving above and below ground works. Councillor Redman advised that residents have expressed concern that the project is not up far enough in the Capital Forecast. 1. 1997 CAPITAL BUDGET AND TEN YEAR CAPITAL FORECAST 1996-2005 - CONT'D FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 10, 1996 - 155 - CITY OF KITCHENER On a motion by Councillor K. Redman, it was resolved: "That the Bingeman Street improvement (Lancaster to Samuel Streets), and the associated $344,000.00 expenditure, be moved from 2001 to 1998." Councillor Weylie pointed out that roadwork for Glasgow Street between Westmount Road and Knell Drive, as well as a sidewalk on a portion of Glasgow Street are not in the Capital Forecast. Mr. Gyorffy replied that both projects should be recognized somewhere over the 10 year period. He pointed that the sewer should be installed prior to any road reconstruction, noting that construction of the sewer by local improvement did not materialize as expected. Mr. Kovacs advised that staff would undertake a comprehensive review of these projects as there are implications for the local improvement charge policy. He stated that a staff report and recommendation would be submitted to the Public Works and Transportation Committee early in 1997. Councillor Weylie noted that there are safety concerns in winter, especially since the construction of Resurrection High School. In reviewing the Capital Budget and Forecast for the Transit Division, Ms. Houston advised that the ten year projection is based on a reduction in Ministry of Transportation funding reflecting a decrease in capital expenditures from $16 million to $14 million dollars. Councillor Vrbanovic referred to the likelihood of further MTO cuts, and Mr. Kovacs replied that the budget before the Committee is based on known subsidy reductions, and recommended dealing with further reductions if and when they arise as opposed to projecting cuts which may or may not materialize. Councillor Vrbanovic referred to the Grand River Boulevard slope stabilization, noting that little funding is available from the Grand River Conservation Authority or the Region, and inquired as to the City's plans given the substantial dollars involved. Mr. Gyorffy replied that he hopes to meet with the GRCA early in the new year and will bring a report forward to the Public Works and Transportation Committee for discussion. Included in the report will be other projects formally funded by the GRCA. Mr. Gyorffy pointed out that none of the projects involved are urgent enough to require completion in 1997. Councillor Vrbanovic replied that the Grand River Blvd. residents need assurance that the project is in the Forecast and asked that this project be revisited at the Committee or Council level prior to Budget Day. Councillor Galloway referred to the realignment of Huron Road from Trillium to Strasburg, and noted that though lot levy funded, there is a problem involving the missing link in the road system which may hamper marketing of the Huron Industrial Park. He suggested that at minimum the environmental assessment should be conducted earlier than proposed. Mr. Mansell replied that the current position is in keeping with the Staging of Development Report, and pointed out that the cost of the environmental assessment would likely be split between residential and non-residential development. He suggested that the environment assessment could be considered for late in the 1998 schedule. Mr. Mansell pointed out that the assessment could cost anywhere from $50,000.00 to upwards of $100,000.00, noting that the final cost is based on public input which is yet to be obtained. Councillor Galloway suggested that approximately $75,000.00 of the $1.9 million dollar project allotment should be moved to the 1997 Capital Budget to allow completion of the environmental assessment by the end of that year. Mr. Gazzola stated that he would note this request for consideration on Budget Day. 1. 1997 CAPITAL BUDGET AND TEN YEAR CAPITAL FORECAST 1996-2005 - CONT'D On a motion by Councillor John Smola, it was resolved: "That the 1997 Capital Budget and Ten Year Capital Forecast for the Public Works FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 10, 1996 - 156 - CITY OF KITCHENER Department be approved, as amended." Ms. Houston then reviewed the Capital Budget and Forecast for the Gas and Water Utilities. Councillor Vrbanovic referred to the communication recording system for gas and water administration and suggested that this be coordinated with similar equipment in the Fire Department. Mr. Kovacs advised that staff would look into any economies in this area. Councillor Galloway referred to a 50 percent increase in gas main costs, and questioned whether all this new money would come from the gas utility as opposed to the levy. Mr. Gazzola confirmed that funding would come from the gas utility, but that the resulting new gas service would increase revenues. Mr. Kovacs advised that new service comprises about $20 million dollars over a 10 year period and is a major part of the increase referred to by Councillor Galloway. On a motion by Councillor G. Lorentz, it was resolved: "That the 1997 Capital Budget and Ten Year Capital Forecast for the Gas and Water Utilities be approved." Ms. Houston reviewed the Capital Budget and Forecast for the General Services and City Clerk's Department. Councillor Jake Smola asked for an update on the relocation of staff at the Union Street facility. Mr. Gazzola advised that an interdepartmental team is looking into this option but has yet to report to Management Committee. Mr. R. W. Pritchard advised that the team hopes to have a report before Council prior to Budget Day. Councillor Smola asked that this item be flagged so that expenditures relating to Union Street are identified in the event the facility is closed. On a motion by Councillor G. Lorentz, it was resolved: "That the 1997 Capital Budget and Ten Year Capital Forecast for the General Services and City Clerk's Department be approved." Ms. Houston reviewed the Capital Budget and Forecast for the Planninq and Development Department. She noted a $300,000.00 increase in the provision for the Geographic Information Systems to allow for project management. In response to a question from Councillor Vrbanovic, Mr. Stanley advised that the Capital Forecast did not previously include staffing as it was initially felt the project could be staffed from existing employees. He also referred to a shift in responsibility for the GIS from Planning to Information Services. Councillor Jake Smola commented that ongoing and unanticipated expenses would seem to suggest that the project is not properly managed. Mr. Gazzola replied that the budget figures reflect a refinement in initial information, and noted that previous budgets were reduced by administration; however, it appears these reductions are not sustainable. He further advised that there is a 7 year forecast for the project, but noted that he can't guarantee it will not change due to unforseen circumstances. Mr. Stanley gave an update on the GIS project noting that the system will be in a position to develop applications early in 1998. In this regard he referred to one application already completed in the Clerk's Division involving the development of polling sub-divisions for municipal elections. Councillor Galloway questioned whether the $50,000.00 increase related to staffing is a result of change in personnel as opposed to an overall increase in complement. Mr. Stanley explained that initially Bin Newell had been seconded from Planning to initiate the project, and it was anticipated that 100 percent of her time would be spent on the GIS on 1997; however, 1997 CAPITAL BUDGET AND TEN YEAR CAPITAL FORECAST 1996-2005 - CONT'D with project realignment it was decided that the project management function would be a contract position tied to the term of the GIS development. He noted that it was planned to request a replacement for Ms. Newell had she stayed on as project manager. Councillor Galloway asked whether there would be a corresponding $50,000.00 reduction in the Planning Department's Operating Budget, and Mr. Stanley replied in the negative, noting that the money was never in the Budget since the project manager was an existing Planning employee. On a motion by Councillor C. Weylie, FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 10, 1996 - 157 - CITY OF KITCHENER it was resolved: "That the 1997 Capital Budget and Ten Year Capital Forecast for the Planninq and Development Department be approved." Ms. Houston then reviewed the General Expenses portion of the Capital Budget and Forecast. It was noted that the City's contribution towards Homer Watson House repairs has been decreased from $50,000.00 to $25,000.00. Councillor Galloway reported that the repairs will cost approximately $100,000.00 according to an audit conducted by Mr. Proulx, and was to have been completed in two parts, with costs being split equally between the City and the Homer Watson House Foundation. Councillor Wagner advised that the Homer Watson House Board has found it difficult to raise funds and suggested that the City consider either providing a general seminar on fundraising or alternatively targeting specific groups which need assistance. On a motion by Councillor B. Vrbanovic, it was resolved: "That the 1997 Capital Budget and Ten Year Capital Forecast for General Expenses be approved." Ms. Houston reviewed the Capital Budget and Forecast for the Finance Department. Councillor Vrbanovic referred to the $150,000.00 expenditure in the Information Services budget for audio/visual equipment and suggested that this seems like a lot of money given current costs. He asked that more detail on the expenditure be provided on or before Budget Day, and also asked for additional information on the provision for computer infrastructure. Councillor Lorentz suggested that the City consider installing standalone computers in the Council Chamber rather than the terminals presently located around the Council horseshoe. He suggested that standalone units would provide more flexibility in terms of use, but should also be able to accommodate the presentation technology used in the Chamber. Mr. Gazzola replied that he anticipates some sort of expenditure in this area in the future and advised that Council will be kept informed and it's approval sought when required. Councillor Galloway questioned when the increase in the cost of computerization would level off. He suggested that he could understand a static expenditure; however, expenditures appear to be continually rising as systems are upgraded. Mr. Gazzola pointed out that one of the impacts relates to Oracle licensing which has never been recognized in past budgets. He pointed out that staff are attempting to create a 10 year projection, but each new software program brings with it additional expenses. Councillor Galloway questioned where the value added is for the taxpayer, especially when capital costs are reduced in other areas of more tangible benefit such as McLennan Park. Mr. Gazzola replied that expenditures on technology are an alternative to hiring new staff. Councillor Wagner asked that staff look into the possible installation of on/off switches for Councillor microphones similar to those in place for staff. He suggested that this would eliminate the distracting background noise which occurs during the filming of Council meetings. Mr. Gazzola replied that staff are looking into this and the budget includes a $50,000.00 provision in this regard. 1997 CAPITAL BUDGET AND TEN YEAR CAPITAL FORECAST 1996-2005 - CONT'D Councillor M. Wagner put forward a motion to adopt the Capital Budget and Forecast for the Finance Department. Councillor Wagner questioned whether provision has been made for obtaining cellular phones for members of Council. Mr. Gazzola advised that he would be reporting back in the near future on a program which would have no cost impact on the City. Councillor Ziegler disagreed with any City subsidized initiative in this area noting that any member of Council is free to access the discounted rate and to purchase phones themselves. Councillor Lorentz voiced his support for the use of cellular phones, noting that he receives an itemized statement which differentiates personal calls, which he pays for, from calls relating to City business. Councillor Vrbanovic advised that he opposes Council having cellular phones and billing calls back to the City, noting that he pays for FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 10, 1996 - 158 - CITY OF KITCHENER all of his calls both business and personal and views this as one of the reasons for the tax free status of a portion of the Council stipend. He suggested that it is a matter of personal choice as to whether a Council member uses a cellular phone and is not a requirement of the position. On a motion by Councillor M. Wagner, it was resolved: "That the 1997 Capital Budget and Ten Year Capital Forecast for the Finance Department be approved." Ms. Houston reviewed the Capital Budget and Forecast for the Human Resources Division. On a motion by Councillor B. Vrbanovic, it was resolved: "That the 1997 Capital Budget and Ten Year Capital Forecast for the Human Resources Division be approved." Ms. Houston reviewed the Capital Budget and Forecast for the Economic Development Division. Councillor Ziegler noted that the provision for business park charges has increased over last year. On a motion by Councillor G. Lorentz, it was resolved: "That the 1997 Capital Budget and Ten Year Capital Forecast for the Economic Development Division be adopted." The meeting then recessed at 12:10 p.m. for lunch and reconvened at 1:30 p.m. with all members present except Councillor B. Vrbanovic. Ms. Houston reviewed the Capital Budget and Forecast for the Kitchener Public Library Board. Ms. M. Walsh and Ms. S. Franzen appeared on behalf of the Library. Councillor Galloway enquired whether the Library has plans to purchase a replacement bookmobile or possibly an ELF unit. Ms. Walsh replied that on November 20th, the Board voted to terminate bookmobiles effective February, 1997. They will then look at alternate delivery strategies, which may include purchase of an ELF unit at a future date; however, at this time the cost is prohibitive. Councillor Galloway asked whether there are opportunities to deliver library services through Community Centres and Ms. Walsh replied that there would be, provided funds are available for staffing and other additional costs. 1. 1997 CAPITAL BUDGET AND TEN YEAR CAPITAL FORECAST 1996-2005 - CONT'D On a motion by Councillor G. Lorentz, it was resolved: "That the 1997 Capital Budget and Ten Year Capital Forecast for the Kitchener Public Library Board be approved." Ms. Houston reviewed the Capital Budget and Forecast for the Centre in the Square. Mr. D. Donaldson and Ms. M. Bachelor were in attendance on behalf of the Centre. On a motion by Councillor M. Wagner, it was resolved: "That the 1997 Capital Budget and Ten Year Capital Forecast for the Centre in the Square be approved." FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 10, 1996 - 159 - CITY OF KITCHENER Ms. Houston reviewed the Capital Budget and Forecast for the Fire Department. In response to a question from Councillor Jake Smola, Deputy Fire Chief Kuntz advised that staff will report on the relocation and remodelling of Station #2, but are presently waiting to submit a comprehensive report on all relocations. Councillor Wagner questioned whether the cost of the proposed training facility would be less if the City of Cambridge were interested in sharing the facility. Fire Chief Hancock replied that Cambridge does not seem to have an interest in participating irrespective of whether the facility is located in Kitchener or Cambridge. He clarified that Cambridge Council has approved the concept of a joint training facility; however, there has been no resolution relating to a financial contribution. Chief Hancock pointed out that Cambridge already has a training facility, which Kitchener uses on a rental basis. Councillor Wagner suggested that Kitchener should precipitate a discussion as to a possible financial contribution toward a joint training facility, and Chief Hancock indicated a willingness to take a report to Cambridge Council. Chief Hancock was directed to talk to Cambridge Fire Department staff first and to await Mayor R. Christy's discussion of this initiative with Cambridge Mayor Jane Brewer before proceeding with any report to Cambridge Council. Councillor Redman indicated an interest in seeing the sale of redundant fire halls lands come before Council for discussion. Mr. Gazzola advised that on or before Budget Day, staff will provide a chronological list of activities and proposed sales relative to redundant fire hall sites. Deputy Chief Kuntz pointed out that Fire Department staff have spoken to other City departments concerning the possible use of redundant fire sites, and that this is the converse of the Fire Department's practice of considering City owned lands for new fire halls. On a motion by Councillor G. Lorentz, it was resolved: "That the 1997 Capital Budget and Ten Year Capital Forecast for the Fire Department be approved." Ms. Houston reviewed the Capital Budget and Forecast for the Parks and Recreation Department. Councillor B. Vrbanovic re-entered the meeting at this time. The Committee was in receipt of a report from G. Collins, Supervisor of Arenas, dated December 4, 1996 concerning the construction of a skateboard park. Councillor Redman noted that $60,000.00 has been allocated in the 1997 Capital Budget to cover the construction of a skateboard park, and referred to a recent news article on the construction of an outdoor park in Whitehorse for approximately $100,000.00. Councillor Redman pointed out that potential users indicated that they want an outdoor as opposed to an 1. 1997 CAPITAL BUDGET AND TEN YEAR CAPITAL FORECAST 1996-2005 - CONT'D indoor facility, and that this would likely require more that the $60,000.00 amount budgeted. Councillor Redman put forward a motion to reflect that $100,000.00 would be budgeted for construction of an outdoor skateboarding facility, or alternately an indoor variation if appropriate. Mr. Arnot advised that the $60,000.00 corresponds to the cost of equipment only, if an indoor facility is erected at one of the community arenas. He suggested that staff would monitor how the facility is used over the next few years and then determine whether a permanent outdoor park has any merit. Councillor Lorentz indicated his preference for a seasonal park constructed of concrete rather than wood, which he felt would be well used if built as a permanent installation. Councillor Galloway suggested that this may be a situation where it is necessary to spend more money in order to get real value from the structure, and in this regard he supported the construction of an outdoor facility. Councillor Yantzi suggested that the amount of money to be allocated to the project should be decided at this time, and whether or not the facility is to be indoor or outdoor decided at a later date. He also suggested that potential users of the park should be involved in planning the facility. Councillor Jake Smola argued that equipment for an indoor facility could be more easily augmented or modified, and asked for a staff proposal on an outdoor facility before Council makes a final decision. He also suggested that the community should be surveyed as to FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 10, 1996 - 160 - CITY OF KITCHENER their preference. Both Councillors Vrbanovic and Weylie indicated their preference for an outdoor facility. Councillor Redman accepted, as a friendly amendment, a suggestion that the budgeted amount be increased to $150,000.00 pending a staff report by the end of February, 1997 which evaluates the Whitehorse proposal, the issues involving location of the facility, and the willingness of community members to assist in funding. Mr. Arnot advised that staff will try to have a report available to Council by Budget Day. The main motion by Councillor K. Redman was then voted on, as amended. On a motion by Councillor K. Redman, it was resolved: "That the amount budgeted in 1997 for a skateboard park be increased from $60,000.00 to $150,000.00 pending receipt of a staff report on the location of such a facility, the willingness of community members to assist in funding, and an evaluation of the facility constructed in Whitehorse." Councillor Wagner also asked for a future report on any likely increase in net revenues as a result of installing air conditioning in the Memorial Auditorium Complex. He suggested that on the basis of such a report, Council may wish to move this project forward in the Forecast. Councillor Vrbanovic referred to the community arena slated for construction in 2004, and questioned whether a private/public partnership had been investigated. Mr. Arnot replied that it was discussed in general terms, and staff will complete a master plan by the end of 1997 which will reference any partnership initiatives. Councillor Vrbanovic also referred to the construction of City entrance signs, noting that funds have been deleted from the Capital Budget. Mr. Clancy replied that staff are working on a plan with a local firm involved in the sculpture and moulding of clay brick, and a cost will be included in the Capital Budget when available. Councillor Vrbanovic suggested that this should be more aggressively pursued. 1. 1997 CAPITAL BUDGET AND TEN YEAR CAPITAL FORECAST 1996-2005 - CONT'D On a motion by Councillor T. Galloway, it was resolved: "That $55,000.00 be added to the 1997 Capital Budget for the Parks and Recreation Department in order to construct a major sign on the Doon Valley Golf Course at Highway 401 in order to advertise the municipality." Mr. Clancy advised that staff will report on details relating to the proposed sign by the January 20, 1997 meeting of the Finance and Administration Committee to review the Operating Budget. Councillor M. Wagner put forward a motion to adopt the Capital Budget and Forecast of the Parks and Recreation Department, as amended. Councillor Galloway noted that 2 items have been eliminated from the Forecast; namely, McLennan Park and the Huron Natural Park. He noted that money had been set aside for McLennan Park, and that the project had been delayed repeatedly over the past 23 years. Mr. Gazzola clarified that the project was initially in the Capital Forecast around the year 2000, and it is intended it will again be considered by Council once the City's role is clarified. Councillor Galloway advised that he is still awaiting a report from the Legal Department in this regard, and noted that if the City can proceed with development, there will not be funds available in 1997. Mr. Gazzola advised that $30,000.00 was originally allocated in 1997, and can be replaced by Council FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 10, 1996 - 161 - CITY OF KITCHENER in conjunction with discussion of the staff report. Councillor Galloway suggested that at minimum there should be funds in the 1997 Budget to allow for preliminary planning. Councillor Galloway referred to surplus School Board land near Pioneer Drive and Homer Watson Boulevard, and Mr. Clancy advised that the Board has declared the site surplus, and preliminary discussion suggests that the Board would probably allow the City to purchase the land over the next 2 to 3 years. Presently, the School Board is awaiting the City's response to the offer of sale. Mr. Gazzola pointed out that the City does not have sufficient funds in the parkland account to purchase the property at this time, and questioned whether the acquisition is necessary. Mr. Clancy replied that the land would not be required in the near term; however, in the long term it would be as the City owns no other active open space in the area. He added that several unanticipated purchases have depleted funding, one of these being the acquisition of the rails to trails land. Mr. Clancy also noted that it was initially intended that a school would be built on the site and there would be a shared use agreement with regard to the open space. Councillor Galloway reminded that the City has told the South West Optimists Club that it would purchase these lands, and the Club has already invested approximately $300,000.00 in the site. Mr. Gazzola that Council should restate it's position on these lands in view of the fact that there are no funds available in the land trust. Councillor Galloway suggested that staff develop a financing proposal which could include running a negative balance in the acquisition fund. Staff were directed to draft a preliminary report addressing this issue and present same for consideration by January 20, 1997. On a motion by Councillor M. Wagner, it was resolved: "That the 1997 Capital Budget and Ten Year Capital Forecast for the Parks and Recreation Department be approved, as amended." 1. 1997 CAPITAL BUDGET AND TEN YEAR CAPITAL FORECAST 1996-2005 - CONT'D On a motion by Councillor G. Lorentz, it was resolved: "That the 1997 Capital Budget and Ten Year Capital Forecast for the Rockway and Doon Valley Golf Clubs be adopted." Councillor Lorentz thanked members of Council on behalf of Forest Heights residents for their support of the change in construction of the Forest Heights Community Centre. He pointed out that Mr. Proulx is predicting savings of approximately $300,000.00 as a result of combining the Community Centre and the Fire Hall, and the City is presently looking at the feasibility of including an ambulance site. Ms. Houston advised that as a result of changes made this date, the Capital Budget and Forecast are out of balance in the years 1997 and 1998. Mr. Gazzola advised that it is his intention that the Budget and Forecast be back in balance by Budget Day on March 3, 1997. NEXT MEETING The next special budget review meeting of the Finance and Administration Committee will be held on January 20, 1997 to review the Operating Budget. ADJOURNMENT On motion, the meeting adjourned at 3:10 p.m. FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 10, 1996 - 162 - CITY OF KITCHENER G. Sosnoski Manager of Corporate Records/Assistant City Clerk