HomeMy WebLinkAboutFinance & Admin - 1998-04-06FAC\1998-04-06
APRIL 6, 1998
FINANCE & ADMINISTRATION COMMITTEE MINUTES
CITY OF KITCHENER
The Finance and Administration Committee met this date commencing at 10:00 a.m. under the
Chairmanship of Councillor J. Ziegler with the following members present: Mayor C. Zehr, Councillors T.
Galloway, K. Taylor-Harrison, M. Yantzi, John Smola, Jake Smola, B. Vrbanovic and J. Haalboom.
Councillors G. Lorentz and C. Weylie were in attendance for part of the meeting.
Others present: Ms. P. Houston, Ms. M. Murphy, Mrs. J. Koppeser, Ms. L. MacDonald, Messrs. J.
Gazzola, O. den Ouden, L. Parkhouse, J. Witmer, T. McCabe, T. Clancy, R. W. Pritchard, J. Shivas, L.
Proulx, G. Andersen, C. Ford and G. Sosnoski.
1. OVERVIEW OF TAX POLICY ISSUES
Ms. Houston provided an overview of Provincial tax policy changes and their potential impact on
the municipality. She noted that the new deadline for receipt of the assessment rolls from the
Province is May 31, 1998, which means that tax bills cannot be sent out in time for ratepayers to
meet the July due date and as a result staff are looking at the feasibility of a second interim tax bill.
Ms. Houston noted that the "Who Does What" initiatives undertaken by the Province have resulted
in approximately $81,000,000.00 of additional costs being passed to the Region of Waterloo and
$10,000,000.00 to the City of Kitchener, the latter relating to the elimination of transit and block
funding. She noted that the reduction in education taxes levied on residential properties is 50 per
cent and that this room is intended to fund additional responsibilities taken on by local
government. She noted that redistribution of the redundant portion of the education tax would
result in the Region's percentage of property and business taxes increasing from 20 per cent to 34
per cent and Kitchener's from 29 per cent to 32 per cent. This translates into an impact on the
City's portion of property taxes of approximately 4.44 per cent. Ms. Houston also pointed out that
the proportional impact of changes within the Region is much larger for Kitchener than other
municipalities. She suggested that the Provincial downloading and expenditure reduction
calculations are seriously flawed and noted that Kitchener is expected to reduce its costs by 3.2
per cent, whereas other municipalities in Ontario with populations greater than 100,000 are only
expected to reduce their costs by 1.7 per cent. She suggested that Kitchener is being penalized
for its enterprise activities and the services such as the Centre in the Square which Kitchener
subsidizes and is used by other municipal taxpayers in the Region.
Mayor Zehr questioned whether it would be advantageous for the City to change its reporting
system to the Province in order to reflect net rather than gross figures, and in some cases to treat
items as in-trust rather than as income. Ms. Houston replied that the City to report could change
some of its reporting; however, in a number of areas the Province requires the City to report as at
present. Ms. Houston also pointed out that the Provincial formula does not allocate any portion of
the expenditure targets to the remaining education portion of the tax bill. Ms. Houston
characterized the $5 million allocation to the City of Kitchener as unreasonable, and suggested
that if the overall amount were apportioned according to the percentage of taxes collected by each
municipality, this amount would be reduced to approximately $2.9 million. Mayor Zehr suggested
that the City should argue for a fair share of the downloading costs, and should express its
concern over how the burden has been distributed.
Ms. Houston then reviewed changes to the tax and assessment systems and touched on the
change from factored assessment to current value assessment; an increase in the number of
properties classes from 4 to 7 with additional sub classes; the elimination of business assessment,
and the possibility of shifting assessment between property classes. She pointed out that the new
system does provide commonality in terms of the valuation basis and dates, and requires
decisions to be made not only in terms of the aggregate tax but also how much to tax in each
property class. She stressed that establishing tax ratios is the most significant tax policy decision
facing Regional Council, and that once made this ratio will apply to all lower tier municipalities.
She then reviewed the preliminary ratios and fairness ranges set by the Province, noting that if the
ratios remain the same, they would reflect property taxes of the same level in each class excluding
the impact of downloading.
Ms. Houston explained that in order to adjust the ratios in other categories such as multi-
residential, commercial or industrial, the residential ratio must first be adjusted to accommodate
these changes. Councillor Yantzi suggested that it is a joke for the Province to suggest that
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APRIL 6, 1998 - 43 -
CITY OF KITCHENER
OVERVIEW OF TAX POLICY ISSUES - CONT'D
municipalities have a choice and flexibility in regard to changing the ratios. Councillor Galloway
noted that big business and landlords appear to have strongly lobbied the government to obtain
this outcome, and characterized the fairness ranges as unbelievable. He pointed out that if the
municipality went to the fair tax rates proposed by the Province for commercial, industrial and
multi-residential classes that residential property taxes would double. He suggested that this
premise is absolutely ridiculous and that no one in the Province is anywhere near the fairness ratio
proposed by Queens Park. Ms. Houston clarified that the Province is in effect saying that multi-
residential taxes should be the same as residential and that commercial taxes should be half of the
residential rate. She added that with the exception of Mississauga, Kitchener's ratios are not out
of the norm of other municipalities, and in some cases are lower.
Ms. Houston then reviewed a summary of tax policy issues to be addressed by the Region, noting
that an issues paper will be presented to Regional Council in April or May. She added that
consultation between the Region and the lower tier municipalities is ongoing through the area
Treasurers.
SURPLUS LAND DECLARATION -ARLINGTON BOULEVARD
The Committee was in receipt of a report from G. Andersen dated March 16, 1998 recommending
that a parcel of land be declared surplus to facilitate sale of a surface easement to an adjacent
owner. They were also in receipt of a written submission from Mr. Chris Pidgeon, Green, Scheels
and Pidgeon on behalf of Emmanuel Village Homes (Kitchener) Inc.
Mr. Pidgeon appeared in support of the staff recommendation to declare the lands surplus for
easement purposes and referred to the various issues raised in his written submission. He noted
that the proposed Emmanuel Village development requires the easement in order to provide
emergency access, and that his clients have concerns with some of the terms and conditions of
the transfer, particularly the $25,000.00 cost estimate. He suggested that the value of the land is
less than estimated on the basis that the City would have difficult disposing of it for redevelopment
given the location of the trunk sanitary sewer. Mr. Pidgeon asked that consideration be given to
waiving the $25,000.00 fee in exchange for an agreement that Emmanuel would maintain all of
these City lands in perpetuity.
Mr. Anderson advised that in his estimation, and that of the Public Works Department, the
$25,000.00 value is realistic based on the market value of the land and the cost to relocate the
sanitary sewer. He clarified that the value of the parcel is approximately $50,000.00 one half of
which would be required to re-route the sewer.
Councillor B. Vrbanovic put forward, and later withdrew, a motion to place a $5,000.00 value on
the easement contingent upon Emmanuel Village Homes fully maintaining the property.
On a motion by Mayor C. Zehr,
it was resolved:
"That Part of Lot 5, Registered Plan 267 being a vacant lot on the east side of Arlington
Blvd., be declared surplus to the City's needs for the purpose of selling a surface easement
to an adjacent property owner for an emergency access across said City land to the benefit
of a new residential development; and further,
That the Mayor and Clerk be authorized to execute any documents as required and
approved by the City Solicitor."
Councillor Ziegler advised that the value of the easement would be considered by the Finance and
Administration Committee at its April 27, 1998 meeting.
PATIO REQUEST - MR. SUB RESTAURANT
The Committee was in receipt of a report from L. MacDonald dated April 1, 1998 recommending
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CITY OF KITCHENER
PATIO REQUEST - MR SUB RESTAURANT - CONT'D
entering into an agreement to allow for the temporary use of City owned lands at 42 King Street
West for a patio to be operated by the proprietors of Mr. Sub.
Mr. Tom Kefalas was in attendance on behalf of Mr. Sub Restaurant, 48 King Street West, and in
support of the staff recommendation. He circulated an artist's conception of the proposed patio
and asked that the 15 day removal notice referred to in the staff recommendation be increased to
30 days and only take effect after October 30, 1998.
Ms. MacDonald responded that in the view of staff this arrangement is fair, and suggested that
Council may want to consider allowing the patio to remain over the winter months prior to a
decision in regard to the 1999 season.
On a motion by Councillor K. Taylor-Harrison,
it was resolved:
"That subject to receiving all the necessary approvals, the Mayor and Clerk be authorized
to execute an agreement satisfactory to the City Solicitor with Tom Kefalas and Jim
Tsiloyannis, the operators of Mr. Sub, to permit the use of a portion of the City lands
municipally known as 42 King Street West for the operation of a patio, at their expense, for
the 1998 season and for a fee of $200.00; and further,
That the above is subject to a 30 day removal notice which will only be applicable after
October 31, 1998."
SALE OF MEDIA BINGO CARDS
The Committee was previously in receipt of a request from the Kitchener Pioneer Lions Club for
permission to sell media bingo cards in Kitchener, which was subsequently referred to the Twin
City Committee for comment. Councillor Vrbanovic advised that he had spoken with
representatives of Waterloo and that a meeting of the Twin City Committee will be called next
week. He suggested that this issue be dealt with at the April 27, 1998 Finance and Administration
Committee meeting.
Mr. Chris Duncan, President of the Kitchener Pioneer Lions Club, appeared and voiced concern
over any lengthy delay in considering the request, as his organization was planning to begin the
sale of tickets in May. Councillor Ziegler suggested that any recommendation arising from the
April 27 Committee meeting could be dealt with at the special Council meeting later that date.
On a motion by Councillor B. Vrbanovic,
it was resolved:
"That consideration of the request of the Kitchener Pioneer Lions Club for permission to sell
media bingo cards in Kitchener be further deferred and referred to the April 27, 1998
meeting of the Finance and Administration Committee, with any recommendation arising
therefrom to be ratified at the special Council meeting of the same date."
APPROVAL AUTHORITY - CHARITABLE REFRESHMENT STANDS
The Committee was in receipt of a report from J. Koppeser dated April 3, 1998 recommending
limited delegation of approval authority to staff.
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CITY OF KITCHENER
5. APPROVAL AUTHORITY - CHARITABLE REFRESHMENT STANDS - CONT'D
On a motion by Mayor C. Zehr,
it was resolved:
"That the Manager of Licensing be granted authority to approve requests for "Not for Profit
Refreshment Stands" provided the Stand will be located on private property at a location
previously approved by Council, and that the group has also received prior Council
approval; and further,
That if an application is received requesting a stand to be located on City property, the
application be referred to Council for direction.
LICENSE REQUEST - SHRINE CIRCUS
The Committee was in receipt of a report from J. Koppeser dated April 1, 1998 recommending
approval of a request to locate a Big Top Circus at the Concordia Club on June 11 and 12, 1998.
On a motion by Councillor Jake Smola,
it was resolved:
"That the Shrine Circus, Box 2410, 2300 Yonge Street, Suite 601, Toronto, be granted
permission to operate a Big Top Circus on June 11 & 12, 1998 on the parking lot of the
Concordia Club, 429 Ottawa Street South, provided the necessary license, including the
signatures of approval, is obtained and the surrounding residents have been notified of this
event; and,
That arrangements satisfactory to the Public Works Department be made for collection of
garbage at no cost to the City, and a building permit obtained for the tent; and further,
That enforcement of the City's Zoning By-law be waived for this event."
DOWNTOWN FINANCIAL INCENTIVE - 55 KING STREET WEST
The Committee was in receipt of Planning and Development Department report PD98/42 (S.
FrenetteAN. Pearce) recommending approval of a grant-in-lieu of building permit fee.
Mr. McCabe asked that the staff recommendation be amended to indicate that Reitex Inc. is
applying on behalf of the owner, Canada Trust, and that the grant pertains to renovations at 55
King Street West.
On a motion by Councillor M. Yantzi,
it was resolved:
"That Council approve an application from Reitex Inc. on behalf of the owner, Canada
Trust, for a grant-in-lieu of building permit fee in the amount of $1,428.75 under the
Downtown Financial Incentive Program for renovations to 55 King Street West."
PRIVATE SEWAGE SYSTEMS
The Committee was in receipt of Planning and Development report PD98/45 (J. Witmer)
recommending an amendment to the Municipal Code and the creation of a schedule of fees.
On a motion by Councillor T. Galloway,
it was resolved:
"That the City Solicitor prepare a by-law to amend Chapter 710 (Building-Permits and Fees)
of the City of Kitchener Municipal Code to reflect the City's assuming the review, approval
and administration of private sewage systems; and further,
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CITY OF KITCHENER
10.
11.
PRIVATE SEWAGE SYSTEMS - CONT'D
That a new class of permit entitled "Sewage System Works" be established and the
following schedule of fees approved:
· installation of a new sewage system $300.00
· major repair $150.00
· minor repair $ 50.00.
1998 WATER RATES
The Committee was in receipt of a report from P. Houston dated March 27, 1998 outlining options
concerning the City's water and sewage rates.
Councillor G. Lorentz entered the meeting at this time.
Mayor Zehr expressed concern over raising water rates in a year when the Region has not
increased the wholesale rate for water. Councillor Galloway inquired as to the origin of the 30 per
cent surplus guideline which staff are arguing can only be maintained through some sort of rate
increase, and Ms. Houston replied that it derives from a policy established by Council
approximately five years ago.
Councillor Galloway characterized Kitchener's current water and wastewater system as well
managed and maintained and pointed out that its rates are the lowest combined rates in the
Region and that this has been an advantage for the municipality in the past. He suggested the
rate should not be increased at this time, especially if the wholesale water rate is staying the same
or declining. Mayor Zehr also suggested that staff consider extending the rate forecast to 10
years.
On a motion by Councillor Jake Smola,
it was resolved:
"That no action be taken at this time in regard to a possible increase in the 1998 water and
sewage rates, with further discussion on this matter to take place at a later date."
CORPORATE COMMUNICATIONS SERVICES DIVISION
The Committee was in receipt of a report dated March 18, 1998 from a staff team recommending
the creation of a new division.
Councillor Ziegler advised that consideration of this item would be deferred to allow for discussion
of a related personal matter listed on the in-camera agenda of this date. It was subsequently
determined that the report and recommendation would be considered at the April 16, 1998
meeting of the Finance and Administration Committee to review the Operating Budget.
ACCELERATED ENERGY MANAGEMENT PROGRAM
The Committee was in receipt of a report from R. W. Pritchard dated March 30, 1998
recommending the hiring of an additional staff person to accelerate the Energy Management
Program.
Mr. Pritchard spoke to the success of the Energy Management Program and the substantial
savings which have accrued to the City. He referred to the strong endorsement previously made
by Council in hiring staff to begin the Program and noted that the proposed full-time position will
have no current or future impact on the operating budget and will result in increased savings of
approximately $349,000.00 annually by the year 2002.
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CITY OF KITCHENER
11.
12.
13.
ACCELERATED ENERGY MANAGEMENT PROGRAM - CONT'D
Moved by Councillor T. Galloway,
"That as part of the Accelerated Energy Management Program proposed from 1998 to
2001, together with the maintenance of the entire Energy Management Program, the City
engage the services of one, new full-time Engineer and continue to utilize the services of
one co-op Engineering student per term throughout the duration of the Accelerated
Program, with all related costs to be included in the Program capital cost."
Councillor Haalboom inquired whether staff had considered filling the full-time position on a
contract basis and Mr. Proulx replied that this has been attempted with little success in other areas
of the City, notably the Stationary Engineer in the Transit Division. He offered the opinion that the
Program acceleration would not work on a contract basis as the incumbent would likely continue to
look for full-time employment and jeopardize the continuity of project initiatives. Councillor
Vrbanovic suggested a three-year contract with an option to convert to full-time status if merited at
that time and Mr. Proulx pointed out that the wage being offered is far from competitive and this
combined with the contract status would make it more difficult to attract a qualified individual.
Councillor Galloway suggested that this is a circumstance where a full-time person is required,
noting that the City would actually be losing savings during periods when the position may be
vacant.
Councillor C. Weylie entered the meeting at this time.
The previous motion by Councillor T. Galloway to hire a full-time Engineer in association with an
Accelerated Energy Management Program was voted on and Carried.
LICENSE REQUEST - COMMUNITY HERITAGE ONTARIO
The Committee was in receipt of a report and recommendation from J. Koppeser dated April 3,
1998 concerning a Temporary Retail Market in conjunction with an upcoming Community Heritage
Ontario Provincial conference.
On a motion by Councillor J. Haalboom,
it was resolved:
"That subject to obtaining the necessary licence, Heritage Kitchener be granted permission
to hold a Temporary Retail Market at Kitchener City Hall from May 29 to May 30, 1998, and
that a reduced fee of $10.00 be applicable."
JOB EVALUATION SYSTEM REVIEW
Councillor B. Vrbanovic disclosed a pecuniary interest and abstained from all voting and
discussion concerning the review of the City's Job Evaluation System as his wife is employed in
the Information Services Division.
Councillor Jake Smola referred to the upcoming April 14 meeting involving Council and the
consultant hired to review the City's Job Evaluation System. He suggested striking a sub-
committee of Council members to review the terms of reference and determine a process to be
followed on the 14th.
On a motion by Councillor Jake Smola,
it was resolved:
"That a sub-committee comprised of Mayor C. Zehr, Councillors Jake Smola, K. Taylor-
Harrison, T. Galloway and J. Ziegler be struck to evaluate the draft terms of reference for
the review of the City's job evaluation system by MacCrimmon and Associates, Ottawa, and
to recommend a process for Council review of the terms with the Consultant on April 14,
1998."
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CITY OF KITCHENER
13.
14.
15.
16.
17.
JOB EVALUATION SYSTEM REVIEW- CONT'D
It was generally agreed that the above recommendation regarding review of the terms of reference
would be brought forward for consideration at the special Council meeting later this date.
REVIEW OF LICENSING BY-LAWS
Mayor Zehr referred to comments received concerning changes in licensing fees and suggested
that it would be appropriate to keep all parties informed given the fact that staff will be revisiting the
entire range of licensing by-laws in the near future.
On a motion by Mayor C. Zehr,
it was resolved:
"That during the comprehensive review of current Licensing By-laws, staff inform affected
citizens prior to any proposed changes being considered by Council, and that in all
instances a breakdown be provided as to the rationale for any fee and the costs it is
intended to offset."
INFORMATION ITEMS
The Committee accepted, as information, a report from J. Koppeser dated April 1, 1998 advising
that as of March 31, 1998 roving Monte Carlo events have ceased operation and the Province has
not granted an extension to its deadline in relation with the establishment of Charitable Gaming
Clubs.
The Committee was also advised that the March 23, 1998 minutes had been corrected to add a
section which was inadvertently omitted relative to pre-budget approval of various 1998 Public
Works projects.
Councillor Vrbanovic asked that the unfinished business agenda be amended to include an April
27, 1998 referral dated for the report from J. Shivas and J. Koppeser on a complaint concerning
illegal adult entertainment parlours and the feasibility of licensing escort services.
NEXT MEETING
The next regularly scheduled meeting of the Finance and Administration Committee will be held on
Monday, April 27, 1998.
ADJOURNMENT
On motion, the meeting adjourned at 12:50 p.m.
Manager of Corporate
Records/Assistant City Clerk