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HomeMy WebLinkAboutFinance & Admin - 1998-04-20FAC\1998-04-20 APRIL 20, 1998 FINANCE & ADMINISTRATION COMMITTEE MINUTES CITY OF KITCHENER The Finance and Administration Committee met this date in special session commencing at 9:20 a.m. Chaired by Councillor J. Ziegler with the following members present: Mayor C. Zehr, Councillors T. Galloway, K. Taylor-Harrison, John Smola, Jake Smola, B. Vrbanovic, J. Haalboom, G. Lorentz and C. Weylie. Others present: Ms. P. Houston, Ms. G. Luciantonio, Ms. S. Henderson, Ms. S. MacDonald, Ms. B. DeVoogdt, Ms. L. Fryfogel, Ms. D. George, Messrs. J. Gazzola, T. Clancy, T. McCabe, B. Stanley, J. Shivas, J. Witmer, R. Arnot, B. MacDonald, K. Baulk, G. Kett, D. Daly, R. W. Pritchard, B. Gulliver, L. Neil, D. Anderson, S. Gyorffy, J. Hancock, B. Kuntz and G. Sosnoski. 1. 1998 OPERATING BUDGET Ms. Houston reviewed the 1998 Operating Budget for the Centre in the Square and the Kitchener Public Library. She noted no increase to the Centre in the Square budget and additional reductions and revenue totalling $45,000.00. Ms. Houston also noted a proposed 1.4 per cent increase in the Kitchener Public Library budget as well as further reductions totalling $80,000.00. Ms. Sharon McMorran, Acting General Manager and Manager of Finance, was in attendance on behalf of the Centre in the Square. Ms. M. Walshe, Chief Executive Officer and Secretary- Treasurer, and Mr. George Zador, Chair-Kitchener Public Library Board were in attendance along with several other members of the Library Board and staff. Mr. Zador referred to previous Provincial grant reductions, noting a further $40,000.00 reduction in 1998. He also pointed out that the Library Board is severely restricted by legislation as to what revenues it can charge and in what amounts. He asked that the Committee recognize the unique nature and position of the Kitchener Public Library, and stressed that the Board cannot absorb further cuts without service reductions. Mr. Zador also referred to a recent study undertaken by MacCrimmon and Associates concerning the salary structure for the Library, which recommended a 2 per cent increase. He pointed out that the salary model represents a 1995 wage scale and that some staff may not reach the 1995 level until 2001. He stressed that wage increases in 1998 are crucial. Mr. Zador further noted that through attrition, Kitchener Public Library staff has been reduced over the past three years from 89 to 78 employees. Mr. Zador advised that further losses in Provincial grant funding are possible and that there are no options for further budget economies at this time short of eroding the level of service and laying off additional staff. In response to a question, Ms. Walshe advised that the money to cover the proposed 2 per cent wage increase would be taken from the OMERS rebate, with a shortfall of approximately $26,000.00. Ms. Houston advised that the City is using its OMERS rebate to help reduce the unfunded liability in the Sick Leave Reserve Fund. Mr. Zador referred to the proposed $80,000.00 budget reduction which would be attained by delaying the opening of the Library on weekdays at all locations until 10:00 a.m., and suggested that this would have an impact in terms of the time required to reshelve borrowed items, accessed by the public and the scheduling of staff. Councillor Galloway enquired as to earlier comments concerning the possible further reduction of the remaining Provincial grants to the Library, and Ms. Walshe replied that if the conditional grant were eliminated, this may lead to the Province opening up revenue generating options. Councillor Galloway pointed out that in each of the prior years where Provincial grants to the Library were reduced, the City has increased its grant to match the loss, and questioned whether the Library expects similar treatment in 1999. Ms. Walshe replied that most municipalities are making up the shortfall as a result of the reduction in Provincial grants. Mayor Zehr enquired as to the number of KPL patrons and Ms. Walshe advised that there are between 90,000 and 95,000 registered members. Mayor Zehr enquired whether it would be possible to consider a minor membership fee in subsequent years. He also commented that the $80,000.00 reduction proposed would only result in a half hour delay in opening and that it may be necessary to make this sacrifice. Councillor Haalboom pointed out that even a short FINANCE & ADMINISTRATION COMMITTEE MINUTES APRIL 20, 1998 - 60 - CITY OF KITCHENER 1998 OPERATING BUDGET - CONT'D delay would be a hardship as there are often people waiting in the morning to use the Library services. Ms. Walshe further commented that ten per cent of the Library's circulation takes place in the morning and that the majority of information link calls also arrive at this time. Mr. Zador pointed out that Provincial funding cuts involving school libraries will lead to greater demand for public Library services. Mayor Zehr suggested that it may be possible to close the library earlier, and Ms. Walshe responded that this would result in students being affected by the early closure. Councillor Lorentz enquired as to the potential for Corporate sponsorship of the Library, and Ms. Walshe replied that the Library Foundation has included this as part of its mandate, but that the types of endowments received to date are small and do not subsidize operations on an ongoing basis. She further suggested that it is unlikely there is potential for sponsorship from the business community to fund ongoing operating expenses. On a motion by Councillor Jake Smola, it was resolved: "That the 1998 Operating Budget for the Centre in the Square be approved, subject to the following adjustments: · Increased Revenues · Reduced Expenditures $23,000.00 $22,000.00" On a motion by Councillor Jake Smola, it was resolved: "That the 1998 Operating Budget for the Kitchener Public Library Board be approved, subject to a reduction in 1998 totalling approximately $40,000.00, with the specifics to be at the discretion of the Library Board, and that the Board advise the City as to the annualized impact of this 1998 reduction." Ms. Houston then reviewed the Operating Budget for the Planninq and Development Department noting a 4.4 per cent decrease and proposed reductions totalling $67,000.00. The Committee was also in receipt of Planning and Development report #PD98/41 containing a recommendation involving a staffing proposal for Sign By-law enforcement. Staff are recommending approval of a contract By-law Enforcement Officer position on a part-time basis (18 hours per week) to provide regular patrols of the City and enforce Chapter 680 (Signs) of the Municipal Code. They were also in receipt of a justification report for continuation of the co-op student program in the Planning and Development Department. One of the proposed budget reductions involves the elimination of the co-op student effective in 1999. Ms. Houston also noted that two contract Building Inspector positions are listed in the budget as full-time. Mayor Zehr referred to the recommended increase in the portable sign fee, consideration of which was referred to the budget process by the Finance and Administration Committee. The current fee is $40.00 with a staff recommendation to increase to $45.00. Councillor Taylor-Harrison enquired as to the $16,000.00 amount budgeted for staff overtime, and Mr. McCabe advised that this is required to pay unionized planners to attend the public information meetings directed by Council. He advised that alternate arrangements, including payment of time in-lieu, have been tried, but options are limited by the union contract. Councillor Galloway referred to the number of subdivision lots in the City's inventory and questioned the need to process plans of subdivision as quickly as is being done at present. He pointed out that some of these may not be constructed for an additional five years and questioned the rationale for processing five to ten years in advance of construction. He suggested that there may be an opportunity to scale back, and process applications three years 1998 OPERATING BUDGET - CONT'D prior to construction and thereby saving staff time and possibly eliminating one Planner position. FINANCE & ADMINISTRATION COMMITTEE MINUTES APRIL 20, 1998 - 61 - CITY OF KITCHENER Mr. McCabe replied that the staging of development process is the time to address this issue, and that it takes a minimum of three years to construct a subdivision based on all the required approvals and environmental assessments. He acknowledged that this would result in savings to part of a full-time equivalent; however, the work is already in the staging of development report. Councillor Ziegler suggested that the staging of development could be changed in 1999 and related economies realized at that time. Councillor Galloway noted that the salary line for the Department is going up and expressed an interest of finding a way of keeping the salary budget at the current level. Councillor Haalboom suggested charging more of staff Planner's time to developers and Mr. McCabe replied that this had been considered. He noted that on average the Department recovers 17 per cent of its time, and if this were increased to between 20 and 30 per cent revenue would total in the hundreds of thousands of dollars. Councillor C. Weylie put forward a motion to adopt the 1998 Operating Budget of the Planning and Development Department, including reductions totalling $67,000.00. Councillor Vrbanovic argued that the City should retain the services of a planning co-op student as both the student and the City benefit by this arrangement. He suggested that the $9,000.00 reduction corresponding to this position should be taken from another staff line in the Department budget. Councillor B. Vrbanovic put forward a motion to remove the co-op student from the list of budget reductions which was voted on and Lost. On a motion by Councillor Jake Smola, it was resolved: "That the proposed reduction relative to the Urban Design/Environmental Award Program be reduced from $10,000.00 to $5,000.00." Councillor Ziegler expressed concern over increasing the portable sign fee at this time without further notification, given the past discussions with individuals in the sign business. Councillor Jake Smola referred to the proliferation of mobile signs in the community and the need to discuss changes to fees and regulations for these later in the year. The main motion by Councillor C. Weylie was then voted on, as amended. On a motion by Councillor C. Weylie, it was resolved: "That the 1998 Operating Budget for the Planninq and Development Department be adopted, subject to the following reductions/efficiency adjustments: · New Federal RRAP funding $24,000.00 · Increase subdivision revenue $12,000.00 · Increase portable sign fee $ 8,000.00 · Urban design/environmental award program $ 5,000.00 reduction Safety clothing Eliminate co-op student (effective 1999) $ · $ 4,000.00 · 9,000.00" Ms. Houston then reviewed the 1998 Operating Budget for the Chief Administrative Officer's Department noting an increase of 8.8 per cent. 1998 OPERATING BUDGET - CONT'D On a motion by Councillor G. Lorentz, it was resolved: FINANCE & ADMINISTRATION COMMITTEE MINUTES APRIL 20, 1998 - 62 - CITY OF KITCHENER "That the 1998 Operating Budget for the Chief Administrative Officer's Department be approved, as submitted." Ms. Houston then reviewed the 1998 Operating Budget for the Parks and Recreation Department, noting an overall increase of 2.3 per cent and reductions totalling $77,000.00. She then reviewed the Department on a division by division basis. Councillor Haalboom enquired as to the allocation for street tree planting in the horticultural budget. Mr. Daly replied that requests have been made over the past two years for additional staff in Forestry to address this need, and these have been removed at the Administrative Review. He advised that cross-training of other staff to do forestry work in the Winter is taking place and a reorganization of that section is planned. Councillor Vrbanovic asked for clarification, by Budget Day, of the increased allocation for part-time wages in the special City Events budget. Councillor Ziegler enquired as to the reduction in the Aquatics budget relating to the pool closures on statutory holidays. Mr. Arnot clarified that all but one indoor pool would be closed on statutory holidays, and only during the Winter months. Councillor Galloway enquired whether the Aquatics Division has done any analysis of fee increase sensitivity. Mr. Clancy reported that there are four financing related areas which the Division plans to report on. A new approach will be recommended whereby Council reviews programs and determines the appropriate amount of City subsidy with staff tailoring the expenses and operating fees to meet this target. He pointed out that in many areas fees are at the Iow end of the scale. Councillor Galloway questioned whether this would generate additional revenue, and Mr. Clancy replied that it would, provided Council agreed with the changes outlined. Mr. Arnot pointed out that fees have already been increased for 1998 in accordance with previous direction. Councillor John Smola suggested a comprehensive, department wide review of the Corporation's fee structure, and this would provide an overview and assist in comparing with other municipalities. On a motion by Councillor John Smola, it was resolved: "That a special meeting of the Finance and Administration Committee be called in the Fall of 1998 to receive and review a comprehensive report of all fees charged by City departments." Councillor Ziegler questioned why the budgeted amount for the Country Hills Community Centre is so much higher than for other centres, and Mr. Arnot advised that this can relate to the size of the Centre and additional staffing, noting that a part-time District Supervisor has been converted to a full-time position. Councillor Lorentz requested, for Budget day, a geographical breakdown of expenditures for each Community Centre and District. Councillor Vrbanovic mentioned in reference to the Auditorium budget, that expenses are outstripping revenues and that this area should be working toward self-sustainability. Mr. Baulk replied that staff have tried to create efficiencies but have no direction to work towards self- sustainability at this time. He also noted that the budget is in large part revenue driven, with revenue fluctuating from year to year. Mayor Zehr asked that for Budget Day, the budgets for the Farmers' Market and Auditorium be separated. 1998 OPERATING BUDGET - CONT'D On a motion by Councillor G. Lorentz, it was resolved: "That the 1998 Operating Budget for the Administration, Marketin.q, Parks Operations, Culture and Special Events, Aquatics, Senior Citizens and Special Needs, Community Development and Auditorium and Farmers' Market Divisions of the Parks and Recreation Department be approved, subject to the following reductions/efficiency adjustments: FINANCE & ADMINISTRATION COMMITTEE MINUTES APRIL 20, 1998 - 63 - CITY OF KITCHENER Photography $2,000.00 Printing - Outside services/brochures Job Sharing with Public Works and Arenas Cameron Heights youth basketball $1,000.00 Volunteer Committee Charges for lifesaving 1,2 and 3 badges $3,000.00 Close all but one pool on statutory holidays during Winter Reduce public swimming - Cameron Heights Program supplies Gapping for clerical staff Resource development (new revenues) $3,000.00 Tricentre Event (new revenues) District 5, Part-time wages $8,000.00 Forest Heights - Part-time wages $2,000.00 Part-time wage reduction - Auditorium $1,000.00 $19,000.00 $2,000.00 $1,000.00 $2,000.00 $1,000.00 $2,000.00 $3,000.00 $8,000.00." Councillor Galloway questioned, in regard to the Arenas budget, whether the previous suggestion to sell rink board advertising in the Twin Ice Pads at the same time sales are occurring for the Dom Cardillo Arena had been considered, and Mr. Arnot agreed to report back in this regard. Councillor Galloway enquired, in regard to the Cemeteries budget, whether an estimate had been included relative to marketing opportunities involving pre-need sales. Mr. Clancy advised that staff will present a full report on the cemetery sales strategy at an upcoming Community Services Committee meeting, but revenues in this regard have not been included in the budget at this time. Councillor Galloway expressed his interest in seeing this division become more self sufficient in future. Councillor Galloway requested a report, on or before Budget Day, in regard to the possibility of reducing the allotment for perpetual care funding and adding this to the operating side of the budget. Councillor Lorentz enquired whether the City is on track in its projections for revenue from the Williamsburg Crematorium, and Mr. Clancy replied that sales have improved over the past few weeks and revenue is now consistent with projections. On a motion by Councillor B. Vrbanovic, it was resolved: "That the 1998 Operating Budget for the Arenas/Athletics/Desiqn Development, Cemetery and Golf Course Divisions of the Parks and Recreation Department be approved, subject to the following reductions/efficiency adjustments: · Rink board advertising revenue · Reduction in full-time wages (Queensmount) · Lions Arena - Ice Rentals (August) · Wilson Arena - increased floor time · Reduction in part-time wages (Cemeteries) · Flower bed planting and maintenance 1998 OPERATING BUDGET - CONT'D $ 1,000.00 $ 1,000.00 8,000.00 $ 1,000.00 $ 5,000.00 $ 3,000.00." Ms. Houston then reviewed the 1998 Operating Budget for Council, noting a .9 per cent increase. Councillor Ziegler requested an update, for Budget Day, on when the tax changes involving Councillor salaries will take effect. Ms. Houston then reviewed the 1998 Operating Budget for the Mayor's Office, noting a 2 per cent increase. Mayor Zehr pointed out that the budget includes funding for the vacant part-time position. On a motion by Councillor Jake Smola, it was resolved: FINANCE & ADMINISTRATION COMMITTEE MINUTES APRIL 20, 1998 - 64 - CITY OF KITCHENER "That the 1998 Operating Budgets for the Mayor's Office and Council be approved, as submitted." Ms. Houston then reviewed the 1998 Operating Budget for the Fleet Division of the Corporate Services Department. Councillor Jake Smola elaborated on his earlier request for a report on natural gas buses and proposed savings. He requested a report to the Finance and Administration Committee in the Fall of 1998 comparing the operating and maintenance costs of the City's natural gas powered buses, Iow ride buses and regular diesel buses. He also asked for a specific comparison between maintenance of axels and breaking systems on Iow rider versus diesel buses. He expressed concern that the City may not be monitoring costs and efficiencies as well as it might. Councillor Lorentz enquired as to the impact on maintenance of the purchase of newer buses and Mr. Gulliver responded that generally less maintenance is required and the vehicles have better warranties; however natural gas buses are more difficult to maintain. Mr. Pritchard advised that the Division has reduced its staffing from 1992 to the present by approximately 23 full-time positions, some involving supervisory staff. Councillor Lorentz expressed an interest in tracking these types of reductions more closely and informing Council in this regard. Mr. Gazzola agreed to bring back a report on or before Budget Day outlining a history of budgeting and staffing in the Fleet and Transit Divisions. On a motion by Councillor B. Vrbanovic, it was resolved: "That the 1998 Operating Budget for the Fleet Division of the Corporate Services Department be approved, as submitted." Ms. Houston then reviewed the 1998 Operating Budget for General Expenses and Revenues, noting that the 1997 approved budget contained approximately $6 million in revenues, whereas the 1998 proposed budget reflects a corresponding $2.2 million in expenses, largely related to the approximately $7 million cost of Provincial downloading. Councillor Galloway enquired as to income on penalty and interest charges for tax arrears and Ms. Houston replied that this is expected to total approximately $2 million, a significant reduction from earlier years. She added that this is a reflection of not only an improved economy, but recent tax sales and improved tax collection practices. She noted that arrears in 1997 were approximately $13 million as opposed $17 million in the prior year. 1. 1998 OPERATING BUDGET - CONT'D On a motion by Councillor C. Weylie, it was resolved: "That the 1998 budget for General Expenses and Revenues be approved, as submitted." Mr. Gazzola pointed out that as of 1998, the City basically is receiving no Provincial grant funding. Ms. Houston then reviewed the 1998 Operating Budget for the Fire Department, noting an increase of approximately 7 per cent and a proposed reduction totalling $193,000.00. A discussion took place as to the budgeted April 1, 1998 opening of the new Fire Station No. 7, and to whether this opening target is attainable and the related budget figure appropriate. Councillor Lorentz suggested that a more appropriate opening date would be August 1. Fire Chief Hancock replied that ten weeks of training are required prior to opening the Station; however, FINANCE & ADMINISTRATION COMMITTEE MINUTES APRIL 20, 1998 - 65 - CITY OF KITCHENER there is flexibility in the budget should Council wish to delay the opening. He also noted that staffing of the aerial unit which is being recommended for reduction and staffing of Fire Station No. 7 are related. Deputy Chief Kuntz outlined several scenarios involving alternate opening dates whereby a June 1 opening would result in a $100,000.00 savings, and a September 1 opening in $250,000.00 in savings. He also noted that there would be no saving on the staffing of the aerial unit until such time as Station No. 7 opens. Councillor Vrbanovic asked for a report, on or before Budget Day, outlining the savings which would accrue if Fire Station No. 7 was not opened until August 1 and staffing savings in regard to the aerial ladder did not accrue until that date. He also asked for an indication of where the various types of firefighting vehicles would be located in the final fire station configuration. On a motion by Councillor G. Lorentz, it was resolved: "That pending a report from staff on the net savings if the opening of Fire Station No. 7 is delayed, the 1998 Fire Department budget be approved, with the following reduction: No staffing of the aerial unit beginning June 1/98 $193,000.00." Councillor Lorentz referred to the recent situation involving the provision of fire dispatch services to Woolwich Township and asked that if problems of this type occur in future, Council be advised so that it may take any appropriate action. Councillor Jake Smola referred to the future construction of Fire Station No. 3 and the associated community library and stressed the need to coordinate design funding for these two projects. Ms. Houston advised that staff can adjust the timing so as to move design funds for Station No. 3 forward coincidental with Stanley Park Community Library funding. Ms. Houston then reviewed the 1998 Reserves and Reserve Fund budget. Councillor Galloway pointed out that from a public relations point of view the Capital Replacement Fund for the Auditorium Complex should be more specific and obvious in its project allocations in deference to organizations who have contributed project funds. Ms. Houston replied that this can be done for the most part. Councillor Galloway questioned whether the Equipment Pool Reserve Fund exceeds requirements over the ten year projection. Ms. Houston replied that this was reviewed by staff last year and there was a small shortfall in funding. He questioned whether there was an opportunity to reduce the $552,000.00 contribution from the levy, perhaps through increased use of rental equipment, and Ms. Houston replied that the only way would be to delay 1998 OPERATING BUDGET - CONT'D equipment purchases with this increasing the cost of maintenance for older equipment. Mayor Zehr asked for additional information and opportunities for savings in regard to a comparison of budget to actual for the Equipment Pool Fund. Councillor Vrbanovic referred to the Tax Stabilization Reserve Fund and requested that Council members receive a copy of the projection beyond the 1998 year shown in the presentation. Councillor Galloway enquired, in light of earlier discussion concerning the perpetual care fund, whether it was necessary to contribute $20,000.00 to purchase cemetery lands, and Ms. Houston agreed to report back on or before Budget Day as to whether this is a legislated requirement. Mr. Clancy suggested that it may not be a good use of funds to refurbish the existing Oktoberfest float and suggested that this project could be combined with the "Communities in Bloom" initiative and funds raised in the community. He suggested that flowers could be used throughout the entire design and that volunteer help in this regard is available. Mr. Clancy agreed to investigate the feasibility of redesigning the Oktoberfest float using flowers and report back on or before Budget Day. FINANCE & ADMINISTRATION COMMITTEE MINUTES APRIL 20, 1998 - 66 - CITY OF KITCHENER Councillor Vrbanovic referred to the General Staff Training Reserve Fund and questioned whether it was appropriate to reduce the expenditure projection by $20,000.00 given the over expenditure in 1997. Mr. Gazzola agreed to look into the reasons for the 1997 over expenditure of the General Training Reserve and report back on or before Budget Day. Councillor Galloway questioned whether the contributions from fringe benefits in the Workers Compensation Fund could be reduced by $250,000.00. Ms. Houston replied that in her view it is too early to remove money from this newly created fund. On a motion by Mayor C. Zehr, it was resolved: "That the 1998 Reserves and Reserve Fund Bud,qet be approved, as submitted." A discussion then took place concerning further capital budget reductions. The Committee was previously circulated with a list of department submissions involving further cuts from the years 1998 to 2007 in order to reach the $550,000.00 per year reduction target. Ms. Houston enquired as to whether Council members wished to see any projects added or reinstated. Councillor G. Lorentz put forward a motion to reinstate the 2000 and 2001 costs for the Forest Heights Pool addition. Councillor John Smola suggested that consideration of the motion should be deferred at this time. On a motion by Councillor G. Lorentz, it was resolved; "That consideration of the request to reinstate the Forest Heights Pool addition in the years 2000 and 2001 of the Capital Forecast be deferred and referred to Budget Day, May 15, 1998." Councillor Weylie asked for a report on or before Budget Day outlining figures for the sidewalk and bike path project involving Glasgow Street. Mr. Gyorffy replied that the environmental assessment is nearing a close and that it is now appropriate to provide budget numbers. He added that the roadway improvements and sewer 1. 1998 OPERATING BUDGET - CONT'D are included, and that this type of project would normally utilize the general infrastructure renewal budget line. Councillor Galloway referred to the capital allocation for community trails and noted that it was his understanding the approval was to be for multiple years and not just for 1998. Mr. Clancy responded that it was his recollection that a $50,000.00 amount was for the Doon portion of the trail. Councillor John Smola asked that on Budget Day consideration be given as to whether amounts for community trail improvement should be included in multiple years of the Capital Forecast. Councillor Vrbanovic asked for consideration on Budget Day of reallocating the $20,000.00 design contingency for the Stanley Park Community Library from the year 2000 to 1999. Councillor Jake Smola asked that, by Budget Day, revised totals be submitted for Capital Expenditures in each year as well as the total expenditures for the term of the Capital Forecast. He also asked, again for Budget Day, for an indication as to why the infra-red door controls have been removed in regard to Transit vehicles as it was his understanding these were mandated following a recent fatality. Mayor Zehr noted a $230,000.00 reduction for Centre in the Square in 2007 and questioned what FINANCE & ADMINISTRATION COMMITTEE MINUTES APRIL 20, 1998 - 67 - CITY OF KITCHENER this amounts relates to. Ms. Houston advised that this would appear to be a clerical error and will be removed from the list. Councillor Haalboom asked that, on Budget Day, consideration be given to reinstating the reductions for Heritage Conservation District implementation in 1999 and 2001. Councillor Vrbanovic requested a report, for Budget Day, concerning the reductions relative to Civic Square improvements; specifically, what these constitute and why they are being removed. Councillor Vrbanovic enquired as to the appropriateness of the current funding levels for infrastructure, and Mr. Gyorffy replied that there is a need for more funding in the area of infrastructure and upkeep. He advised that the Public Works Department will report on this situation as it relates to the road and sidewalk programs, hopefully in June. Councillor Ziegler referred to the $367,000.00 amount in the Finance budget for office equipment. Ms. Houston replied that this is a four year acquisition for the Information Services Division and is the equivalent of replacing one chair for one person every five years. Mr. Gazzola pointed out that Information Services is replacing office equipment and modular furniture which was purchased for use in the old City Hall. Councillor Ziegler questioned the appropriateness of what amounts to an $8,000.00 allocation per work station, and Ms. Houston agreed to provide a detailed analysis for Budget Day. Councillor Galloway referred to earlier comments concerning the garbage rebate, and Mr. Gyorffy agreed to clarify for Budget Day, whether the City of Waterloo is still at $5.00 per unit per year. A general discussion then took place as to any further direction to staff concerning budget reduction. Councillor Jake Smola expressed the view that the City should attempts to lower the increase from 4 per cent toward the 3 per cent level. Mayor Zehr suggested that though a case could be made for the increase proposed at this time, he would rather see this reduced to 3 per cent through sustainable financial adjustments to the budget. Councillor John Smola commended staff for their efforts in reducing the increase from 11 to 4 per cent, and indicated that with minor adjustments, he was prepared to support the 4 per cent increase, given the position taken by Council at the Region. 1998 OPERATING BUDGET - CONT'D Councillor Galloway reflected that though there are reasons for an increase this year, he would like to pursue further on Budget Day a number of additional items, including: increased revenue targets for individual divisions; budgeting 1/4 to 1/2 per cent for assessment growth; eliminating garbage rebates which comprise a $500,000.00 expense; and, funds devoted to perpetual care. He expressed the view there is still an opportunity to reduce the increase by another percentage point. Mr. Gazzola suggested that it is easy to increase the projection for assessment growth; however, he questioned whether this would prudent in the event this target is not attained. He noted that in the past the City has had a surplus to rely on, but at present any estimate that is incorrect results in an immediate budget problem in the next year. Councillor Vrbanovic asked staff to obtain, for Budget Day, the most current information available from the Assessment Office concerning possible growth. Councillor Vrbanovic indicated his belief that based that what has been done to reduce the increase to 4 per cent this increase is appropriate year; however, he expressed his wish to reduce the 1 per cent increase planned in each of the next two years to zero. Councillor Haalboom suggested that Council should be mindful of the public's perception of a possible $25.00 increase, especially given the number of senior citizens on fixed income and the number of people who have lost their jobs or suffered wage reductions. She indicated her support for a further reduction in the proposed increase, and suggested that one area to investigate would be increased fees relative to development. Councillor Jake Smola put forward a motion directing staff to implement a further $100,000.00 reduction in Capital Expenditures and a further 1-1/2 per cent reduction in Operating Expenditures which was voted on and Lost. 2. NEXT MEETING FINANCE & ADMINISTRATION COMMITTEE MINUTES APRIL 20, 1998 - 68 - CITY OF KITCHENER The next meeting of the Finance and Administration Committee to review the 1998 Capital and Operating Budgets will be held on Friday, May 15, 1998. 3. ADJOURNMENT On motion, the meeting adjourned at 4:15 p.m. Manager of Corporate Records/Assistant City Clerk