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HomeMy WebLinkAboutFCS Minutes - 2019-01-31 - Final BudgetSPECIAL FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 31, 2019 CITY OF KITCHENER The Special Finance and Corporate Services Committee met this date, commencing at 9:35 a.m. Present: Councillor S. Davey - Chair Mayor B. Vrbanovic and Councillors D. Chapman, K. Galloway-Sealock, J. Gazzola, B. Ioannidis, M. Johnston, S. Marsh, C. Michaud, D. Schnider and P. Singh. Staff: D. Chapman, Chief Administrative Officer M. May, Deputy CAO & General Manager, Community Services V. Raab, General Manager, Corporate Services J. Readman, General Manager, Development Services J. Lautenbach, Chief Financial Officer, Financial Services D. McGoldrick, General Manager, Infrastructure Services R. Hagey, Director, Financial Planning G. St. Louis, Director, Utilities N. Lobley, Director, Parks and Cemeteries B. Cronkite, Director, Transportation Services D. Fagerdahl, Manager, Financial Planning J. Bunn, Manager, Council & Committee Services/Deputy City Clerk J. Rodrigues, Committee Administrator D. Saunderson, Committee Administrator 1. FIN-19-009 - 2019 FINAL BUDGET The Committee considered Financial Services Department report FIN-19-009, dated January 21, 2019, related to the 2019 Budget, which is primarily intended to provide updates on the Operating and Capital Budget presentations and provide information required by the Municipal Act. The Committee was also in receipt this date of a Council Report containing draft resolutions related to the 2019 Budget for consideration this date. OVERVIEW Mr. D. Chapman provided an overview on the 2019 Budget, noting the overall budget maintains core infrastructure, recommends reasonable rate increases, and includes a number of strategic priorities for 2019. He stated the process for establishing the budget involves a number of factors including: community and council feedback; an extensive internal review process; and, balancing a number of priorities. He further advised 2019 will include a number of projects such as, but not limited to: the Strategic Plan; the Development Charge Study; and, the Leisure Facilities Master Plan, which will inform both the Capital and Operating Budgets for future budgets. Mr. J. Lautenbach advised the overall Operating Budget is comprised of a total of $406M in expenditures, and suppo the community. He stated the Capital Budget is comprised of $99.5M in projects for 2019, but a total of $1.2M over the ten-year 2019-2028 time frame. He indicated the reserve funds will have a balance at the end of 2019 in the amount of $58M, which are intended to mitigate risk and potential budget fluctuations in future years. Mr. Lautenbach advised the overall household impact for 2019 is approximately $96., which includes a 2.3% Tax Levy increase, a 6.5% Water Utilities increase, and a 0.93% decrease in Gas Rates. He indicated the 2019 Budget has a number of positive highlights including: progressive investments in road safety and cycling; leadership in environmental sustainability; improvements in customer service and, maintaining and investing in aging infrastructure. Councillor B. Ioannidis entered the meeting at this time. Mr. R. Hagey advised there has been minimal changes since Finance and Corporate Services Committee meetings on January 7 and January 14, 2019 where Council considered the Operating and Capital Budgets. He stated there are a number of follow-up issue papers in the agenda package this date, noting any recommendation for the 2019 Budget would be forwarded for ratification to a special Council meeting later this date. BOARDS Kitchener Public Library (KPL) SPECIAL FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 31, 2019 - 20 - CITY OF KITCHENER 1. FIN-19-009 - 2019 FINAL BUDGET Councillor M. Johnston left the meeting at this time. The following motion was voted on and was Carried Unanimously on a recorded vote. Councillor M. Johnston was absent and accordingly did not vote. On motion by Councillor S. Marsh - it was resolved: 9 Councillor M. Johnston re-entered the meeting at this time. Centre in the Square (CITS) A motion was brought forward by Mayor B. Vrbanovic to approve the CITS Budget as presented, including an amendment that approval be granted for additional transitional funding of $146,527. for CITS to be distributed from the Tax Stabilization Reserve Fund at the request of the CITS Board, with Council being notified of the request by email; and further, that any year-end operating surplus in 2018 and 2019 be retained by CITS and be restricted to help fund its capital projects, but any deficit be split 50/50 between CITS and the City. The following motion was voted on and was Carried Unanimously on a recorded vote. On motion by Mayor B. Vrbanovic - it was resolved: That the Centre in the Square appropriation be approved in the amount of $1,853,473.; and, That approval be granted for additional transitional funding of $146,527. for CITS to be disbursed from the Tax Stabilization Reserve Fund at the request of the CITS Board, with Council being notified of the request by email; and further, That any year-end operating surplus in 2018 or 2019 be retained by CITS and be restricted to help fund its capital projects, but any deficit be split 50/50 between CITS and the City. ENTERPRISE OPERATING BUDGETS Building The following motion was voted on and was Carried Unanimously on a recorded vote. On motion by Councillor J. Gazzola - it was resolved: Golf Councillor J. Gazzola put forward a motion to approve the 2019 Golf Enterprise Budget, including an amendment to increase the Golf Enterprise dividend paid to the City by $5,000. Councillor LOST on a recorded vote, with Councillors J. Gazzola, K. Galloway-Sealock, D. Chapman and B. Ioannidis voting in favour; and, Mayor B. Vrbanovic and Councillors S. Davey, M. Johnston, D. Schnider, P. Singh, S. Marsh, and C. Michaud voting in opposition. The following motion was voted on and was Carried Unanimously on a recorded vote. On motion by Councillor J. Gazzola- it was resolved: SPECIAL FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 31, 2019 - 21 - CITY OF KITCHENER 1. FIN-19-009 - 9 Parking Councillor P. Singh put forward a motion to approve the 2019 Parking Enterprise Budget, including an amendment to increase the Parking Enterprise dividend paid to the City by $50,000. from $1.85M to $1.9M. A motion was brought forward by increasing the dividend by $100,000. rather than $50,000. Councillor LOST on a recorded vote, with Councillors J. Gazzola and D. Chapman voting in favour; and, Mayor B. Vrbanovic and Councillors S. Davey, K. Galloway-Sealock, B. Ioannidis, M. Johnston, D. Schnider, P. Singh, S. Marsh, and C. Michaud voting in opposition. The following motion was voted on and was Carried, with Mayor B. Vrbanovic and Councillors S. Davey, K. Galloway-Sealock, B. Ioannidis, M. Johnston, D. Chapman, D. Schnider, P. Singh, S. Marsh, and C. Michaud voting in favour; and, Councillor J. Gazzola voting in opposition. On motion by Councillor P. Singh - it was resolved: That the 2019 budget for the Parking Enterprise be approved; and further, That the Parking Dividend paid to the City be increased from $1.85M to $1.9M Gas Utility A motion was brought forward by Councillor B. Ioannidis to approve the Gas Utility Enterprise Budget, as presented. Councillor J. Gazzola brought forward an amendment to Councillor increase the dividend paid to the City from the Gas Enterprise Budget by $100,000. Councillor LOST on a recorded vote, with Councillors J. Gazzola and K. Galloway-Sealock voting in favour; and, Mayor B. Vrbanovic and Councillors S. Davey, D. Chapman, B. Ioannidis, M. Johnston, D. Schnider, P. Singh, S. Marsh, and C. Michaud voting in opposition. The following motion was voted on and was Carried, with Mayor B. Vrbanovic and Councillors S. Davey, K. Galloway-Sealock, B. Ioannidis, M. Johnston, D. Chapman, D. Schnider, P. Singh, S. Marsh, and C. Michaud voting in favour; and, Councillor J. Gazzola voting in opposition. On motion by Councillor B. Ioannidis - it was resolved: Gas Utility Enterprise budget be approved, as presented Water, Sanitary and Stormwater Utility In response to questions, Mr. Chapman advised staff would ensure, as part of the budget communication, to highlight regarding the 4.5% water rate increase, that 1.7% of that increase is directly attributed to rate increase from of the 4.5% rate increase, 1.7% of that increase is from the Region of Waterloo. The following motion was voted on and was Carried, with Mayor B. Vrbanovic and Councillors S. Davey, K. Galloway-Sealock, B. Ioannidis, M. Johnston, D. Chapman, D. Schnider, P. Singh, S. Marsh, and C. Michaud voting in favour; and, Councillor J. Gazzola voting in opposition. SPECIAL FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 31, 2019 - 22 - CITY OF KITCHENER 1. FIN-19-009 - On motion by Councillor P. Singh - it was resolved: That the 2019 Water Utility Enterprise budget be approved, as presented; and, That the 2019 Sanitary Utility Enterprise budget be approved, as presented; and further, That the 2019 Stormwater Utility Enterprise CAPITAL BUDGET Follow-up Issue Papers The Committee considered Issue Paper BD 02 (Increased Funding for Small Scale Traffic Calming), related to increasing the annual budget allocation for small scale traffic calming options. A motion was brought forward by Councillor S. Marsh to approve an increase to the Small Scale Traffic Calming budget from $25,000. to $50,000. annually from 2019 to 2022, and for the additional funding to be allocated from the increased Parking Dividend. It was requested that increase in funding and the source of the funding be voted on separately. The use of the Parking Dividend as a funding source to increase the Small Scale Traffic Calming budget was then voted on and was Carried, with Mayor B. Vrbanovic and Councillors S. Davey, K. Galloway-Sealock, B. Ioannidis, M. Johnston, D. Schnider, P. Singh, S. Marsh, and C. Michaud voting in favour; and, Councillors J. Gazzola and D. Chapman voting in opposition. The following motion was voted on and was Carried Unanimously on a recorded vote. On motion by Councillor S. Marsh - it was resolved: That the Small Scale Traffic Calming budget be increased from $25,000. to $50,000. annually from 2019 to 2022, and for the additional funding to be allocated from the The Committee considered Issue Paper BD 04 (Middle Strasburg Trunk Sanitary Sewer \[MSTSS\]), related to the inclusion of the MSTSS in 2024 and the possibility of the project being completed through a credit for refund agreement. The following motion was voted on and was Carried Unanimously on a recorded vote. On motion by Councillor J. Gazzola - it was resolved: of development charge funding be added to the Middle Strasburg Trunk The Committee recessed at 12:07 p.m. and reconvened at 1:54 p.m., Chaired by Councillor S. Davey with all members present, except for Mayor B. Vrbanovic. COMMUNITY GRANTS A motion was brought forward by Councillor B. Ioannidis to approve the Tier 1 Community Grants, as outlined in AppCouncil Report circulated to the Committee this date. The following motion was voted on and was Carried Unanimously on a recorded vote. Mayor B. Vrbanovic was absent and accordingly did not vote. SPECIAL FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 31, 2019 - 23 - CITY OF KITCHENER 1. FIN-19-009 - 2019 FINAL BUDGET On motion by Councillor B. Ioannidis - it was resolved: Community Grants be approved for $1,423,311., as outlined the Council Report containing draft resolutions TAX SUPPORTED OPERATING BUDGET Follow-up Issue Papers The Committee considered Issue Paper BD 07 (Increasing the Individual Limit for the Leisure Access Card \[LAC\]) related to increasing the LAC limits per individual by $50., which would result in an increase of $10,000. to the overall program budget. Councillor P. Singh brought forward a motion to approve increasing the LAC limits per individual by $50., as outlined in Issue Paper BD 07. A motion was brought forward by Councillor D. Chapman to amend Councillor increase the LAC limit per individual to $100. rather than $50. Councillor ChapmanLAC limit to $100. per individual was voted on and was LOST on a recorded vote, with Councillors B. Ioannidis, C. Michaud, D. Chapman, M. Johnston and S. Marsh voting in favour; and, Councillors D. Schnider, J. Gazzola, K. Galloway-Sealock, P. Singh, and S. Davey voting in opposition. Mayor B. Vrbanovic was absent and accordingly did not vote. The following motion was voted on and was Carried, with Councillors B. Ioannidis, C. Michaud, D. Schnider, D. Chapman, P. Singh, M. Johnston and S. Marsh voting in favour; and, Councillors J. Gazzola, K. Galloway-Sealock, and S. Davey voting in opposition. Mayor B. Vrbanovic was absent and accordingly did not vote. On motion by Councillor P. Singh - it was resolved: on outlined in Issue Paper BD 07 (Increasing the Individual Limit for the Leisure Access Card \[LAC\]) be approved to increase the Leisure Access Card limit per individual by $50. for an overall increase of $10,000. to the Leisure Access The Committee considered Issue Paper BD 08 (Full Time Equivalent \[FTE\] Positions) regarding s for 2019, as outlined in the 2019 Budget. Councillor K. Galloway-Sealock brought forward a motion to approve the delayed hiring of FTE positions as requested as part of the 2019 Budget. The following motion was voted on and was Carried, with Councillors B. Ioannidis, C. Michaud, D. Schnider, D. Chapman, K. Galloway-Sealock, P. Singh, S. Marsh, S. Davey, and M. Johnston voting in favour; and, Councillor J. Gazzola voting in opposition. Mayor B. Vrbanovic was absent and accordingly did not vote. On motion by Councillor K. Galloway-Sealock - it was resolved: D 08 (Full Time Equivalent \[FTE\] $120,500. Mayor B. Vrbanovic re-entered the meeting at this time. The Committee considered Issue Paper BD 09 (Affordable Housing and Accelerated Planning Options) regarding options of how the City can be resourced to advance affordable housing planningobjectives. SPECIAL FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 31, 2019 - 24 - CITY OF KITCHENER 1. FIN-19-009 - The following motion was voted on and was Carried Unanimously on a recorded vote. On motion by Councillor B. Ioannidis - it was resolved: - Addressing Affordable Housing and Accelerated Planning Work outlined in Issue Paper BD 09 (Affordable Housing and Accelerated Planning Options) be The Committee considered Issue Paper BD 11 (Increasing the Operating Transfer from the Hydro Reserve) regarding the possibility of increasing the dividend transfer to the City from the Hydro Utility Investment Reserve Fund by $75,000. A motion was brought forward by Councillor K. Galloway-Sealock to increase the dividend transfer to the City from the Hydro Utility Investment Reserve Fund by $75,000., as outlined in Issue Paper BD 11. Mayor B. Vrbanovic brought forward an amendment to Councillor Galloway- increase the dividend transfer to the City from the Hydro Utility Investment Reserve Fund by $50,000. rather than $75,000. Utility Investment Reserve Fund by $50,000. was voted on and was Carried on a recorded vote, with Mayor B. Vrbanovic and Councillors B. Ioannidis, D. Schnider, P. Singh, S. Marsh, and S. Davey voting in favour; and, Councillors C. Michaud, D. Chapman, J. Gazzola, K. Galloway- Sealock, and M. Johnston voting in opposition. The following motion was voted on and was Carried, with Mayor B. Vrbanovic and Councillors S. Davey, K. Galloway-Sealock, B. Ioannidis, M. Johnston, D. Chapman, D. Schnider, P. Singh, S. Marsh, and C. Michaud voting in favour; and, Councillor J. Gazzola voting in opposition. On motion by Councillor K. Galloway-Sealock - it was resolved: sfer of an additional $50,000. from the Hydro Utility Investment Reserve Fund to the Operating B The Committee considered Issue Paper BD 14 (Mileage and Per Diem Rates) regarding a comparison of the current mileage and per diem rates used by the City of Kitchener and local municipalities. The following motion was voted on and was Carried Unanimously on a recorded vote. On motion by Mayor B. Vrbanovic - it was resolved: t the mileage rate per kilometre remain at $0.50 for the first 5,000 kilometres and $0.45 for each additional kilometre, and that the per diem rates be aligned with other municipalities at $70/day ($15 for breakfast, $20 for lunch, $35 for dinner), as outlined in Issue Paper BD 14 RESOLUTIONS Councillor P. Singh brought forward a motion to increase the investment income revenue by $100,000. from $3.725M, to $3.825M and for the transfer to be applied the Tax Stabilization Reserve Fund (TSRF). The following motion was then voted on and was Carried with Mayor B. Vrbanovic and Councillors B. Ioannidis, C. Michaud, D. Schnider, P. Singh, S. Davey, and M. Johnston voting in favour; and, Councillors D. Chapman, J. Gazzola, K. Galloway-Sealock, and S. Marsh voting in opposition. SPECIAL FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 31, 2019 - 25 - CITY OF KITCHENER 1. FIN-19-009 - On motion by Councillor P. Singh - it was resolved: That an increase of $100,000. to the 2019 annual budget amount for investment income revenue be approved, and that the $100,000. increase be applied to the Tax Stabilization Reserve Fund (TSRF). The following motion was voted on and was Carried, with Mayor B. Vrbanovic and Councillors S. Davey, K. Galloway-Sealock, B. Ioannidis, M. Johnston, D. Chapman, D. Schnider, P. Singh, S. Marsh, and C. Michaud voting in favour; and, Councillor J. Gazzola voting in opposition. On motion by Councillor M. Johnston - it was resolved: The balance of the resolutions outlined in the Council Report circulated to the Committee this date related to approval of the 2019 Budget be approved. 2. ADJOURNMENT On motion, this meeting adjourned at 3:21 p.m. D. Saunderson J. Bunn Committee Administrator Manager, Council and Committee Services/Deputy City Clerk J. Rodrigues Committee Administrator