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HomeMy WebLinkAboutFinance & Admin - 1998-09-14FAC\1998-09-14 SEPTEMBER 14, 1998 FINANCE & ADMINISTRATION COMMITTEE MINUTES CITY OF KITCHENER The Finance and Administration Committee met this date commencing at 10:35 a.m. and Chaired by Councillor J. Ziegler with the following members present: Councillors T. Galloway, K. Taylor-Harrison, M. Yantzi, B. Vrbanovic, J. Haalboom, G. Lorentz, and C. Weylie. Mayor C. Zehr and Councillor Jake Smola were in attendance for part of the meeting. Others present: Ms. P. Houston, Mrs. J. Koppeser, Messrs. J. Gazzola, J. Shivas, J. Witmer, T. Clancy, R. Arnot, T. McCabe, R. W. Pritchard, L. Proulx, C. Ford, L. Parkhouse, D. Snow and G. Sosnoski. 1. FIREWORKS BY-LAW - RESIDENT AND NON-RESIDENT TEMPORARY VENDORS The Committee was in receipt of a report from J. Koppeser dated September 9, 1998 in response to a previous Committee request to define classes of temporary vendors. Mr. Shawn Miller was in attendance this date and in regard to his previous request to be exempt from licencing fees applicable during the Victoria Day holiday. On a motion by Councillor J. Haalboom, it was resolved: "That Legal staff amend By-law 94-75 relative to the sale of fireworks so as to incorporate the vendor licensing categories and related fees outlined in the report of J. Koppeser, Manager of Licensing, dated September 9, 1998." On a motion by Councillor B. Vrbanovic, it was resolved: "That 1998 Fireworks Vendor fees be refunded to Mr. Shawn Miller in the amount of $480.00 and the property owner in the amount of $880.00, these corresponding to the fees applicable to the 1998 Victoria Day holiday." 1998 PROPERTY TAXES - RETAIL Mr. Paul Connolly, co-owner of Natural Sound, appeared in regard to elimination of the business occupancy tax and the resulting changes in municipal property taxes, and to protest what he characterized as severe increases in the property taxes of retailers. Mr. Connolly spoke on behalf of the following individuals who were also in attendance this date: Brian Kendar (Little Caesar's); Mary Drandzyk (Kitchener Coin); Cres Brodrecht; Ron Kraishnik (Saturn Saab Isuzu of K-W); Lucille de la Cherotiere (K-W Bookstore). Mr. Connolly advised that in regard to Natural Sound, his taxes have increased approximately 29 per cent which he stated he cannot afford, and pointed out that it appears businesses are taxed differently depending on whether they own or lease the space they occupy. Mayor C. Zehr entered the meeting at this time. Mr. Connolly suggested that under the Ontario Fair Assessment Commission guidelines the municipality had the authority and direction to provide a phase-in of increases over a period of up to eight years. He offered the opinion that the current situation is not a direct result of Provincial downloading, but rather a result of the failure to evaluate the impact of the tax policy. He suggested that the changes created are unfair, poorly researched and anti-business. Mr. Connolly advised that when he spoke to other business owners many indicated there was no point in protesting on the basis that government simply doesn't listen. Mr. Connolly asked that Council agree to devise a fair and equitable solution to the current tax situation. Councillor Ziegler pointed out that Regional Council has the authority to determine tax policy and decide on the phase-in options and that Kitchener Council has input into this process only through its representation on Regional Council. Mr. Connolly noted that Regional Council received information that the impact of the tax change would not be significant and as a result did not implement a phase-in. Councillor Lorentz enquired whether Mr. Connolly appreciated that though FINANCE & ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 14, 1998 -110- CITY OF KITCHENER 2. 1998 PROPERTY TAXES - RETAIL - CONT'D some property tax bills increased, others also decreased. Mr. Connolly acknowledged this noting that it was his understanding that banks and financial institutions experienced reductions; however, he suggested that the problem is in the classification system which has resulted in significant increases for small businesses. Ms. Houston clarified that the phase-in referred to by Mr. Connolly relates to market value assessment changes only and would not be applicable to other factors resulting in a tax increase. Mayor Zehr further clarified that the most important aspect of Mr. Connolly's concerns relate to removal of the business occupancy tax and resulting change and not other aspects of reassessment. He added that the Ministry of Finance has since admitted that the changes which it had initially indicated were revenue neutral are not so for all municipalities in Ontario. Ms. Houston referred to the impact of abolishing the business occupancy tax and noted that of the properties she has surveyed, approximately 300 increased by amounts greater than 15 per cent and an equal number decreased. She added that a report will be considered shortly by Regional Council which outlines various options for mitigating property tax increases. Councillor Vrbanovic pointed out that it was the Province's decision to impose a flat rate for business taxes and this is something over which the Region and municipal Councils have no control. Mr. Connolly replied that the Province also gave the option to set different tax rates on different property classes. Ms. Houston acknowledged that the tax ratio can be changed within different classes, but that Regional Council voted to maintain the previous tax load for each of the individual property classes. Councillor Vrbanovic added that several of the policies referred to by Mr. Connolly are mandated by the Province, adding that Kitchener Council asked for a delay in implementation to allow review of the new tax policy given the Province's late release of its policy decisions and the resulting confusion. Councillor Galloway pointed out that a variety of pro-business groups petitioned the Province to eliminate the business occupancy tax which resulted in the Province deciding on a flat rate and averaging. Councillor Galloway indicated that he understands Mr. Connolly's frustration and that Council needs to hear that; however, none of the decisions affecting the concerns raised this date were made by Kitchener Council. He also noted that any changes in certain classes such as industrial and commercial result in direct increases in residential taxes given how the Province has structured its fairness ranges. On a motion by Councillor B. Vrbanovic, it was resolved: "That Kitchener City Council urges Regional Council and the Province of Ontario to review possible changes in tax policy to address major fluctuations in 1998 property taxes resulting from elimination of the business occupancy tax and the revision of tax categories, including possible relief through the education tax." 3. RELOCATION OF CHIP WAGON (THE CHIP STOP) The Committee was in receipt of a report from J. Koppeser dated September 3, 1998 outlining a request from Mr. Robert Fries to relocate his chip wagon. On a motion by Councillor B. Vrbanovic, it was resolved: "That subject to meeting all licensing requirements and obtaining the owner's permission, Robert Fries, the Chip Stop, be granted permission to relocate his chip wagon from the present 4308 King Street East location to the Moose Lodge at 655 Wabanaki Drive, and in this regard a temporary one year licence be granted and enforcement of the Zoning By-law waived for the one year period; and further, That the applicant is advised that should he receive permission to continue operation at the new location beyond the one year term, the owner of the subject lands will be required to submit an application to have said lands appropriately zoned, said application to be submitted at least two months prior to expiry of the one year term." 4. PROCESSING OF CITY COUNCIL RESOLUTIONS FINANCE & ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 14, 1998 -111 - CITY OF KITCHENER The Committee was in receipt of a report from R. W. Pritchard dated June 22, 1998 regarding the current process for circulating Council resolutions to other municipalities. The report questions whether it is still appropriate to do this given the Iow response rates and the advocacy role played by the Association of Municipalities of Ontario and the Federation of Canadian Municipalities. The Committee accepted the report as information and Mayor C. Zehr asked that when putting forward motions members of Council carefully consider whether this type of circulation is warranted. 5. ICE STORM DISASTER RELIEF The Committee was in receipt of a report from Deputy Fire Chief N. Kuntz dated August 10, 1998 recommending a donation in response to the recent ice storm in Eastern Ontario and Quebec. The report recommends that funds go to one of two agencies, either the Canadian Red Cross Ice Storm Disaster Relief Fund or the Eastern Ontario Disaster Relief Fund. On a motion by Councillor G. Lorentz, it was resolved: "That the City of Kitchener donate $2,700.00 to the Canadian Red Cross Ice Storm Disaster Relief Fund." 6. EAST ASIAN FESTIVAL - (RENISON COLLEGE) The Committee was in receipt of a report and recommendation from J. Koppeser dated September 9, 1998 in response to a request to hold the opening ceremonies for the East Asian Festival in the City Hall Rotunda. On a motion by Councillor B. Vrbanovic, it was resolved: "That Renison College be granted permission to hold its East Asian Festival in the City Hall Rotunda on September 30, 1998, provided the necessary licence, including Health and Fire approvals, are obtained; and further, That a reduced fee of $10.00 be applicable." END OF CONSTRUCTION PARADE AND CELEBRATION (I DIG DOWNTOWN KITCHENER COMMITTEE) The Committee was in receipt of a report and recommendation from J. Koppeser dated September 3, 1998 in response to a request from Carmen Robert. Mr. L. F. Parkhouse further advised that the request has been amended to include permission to erect a beer tent which would also require a building permit. On a motion by Councillor M. Yantzi, it was resolved: "That the I Dig Downtown Kitchener Committee be granted permission to locate food vendors on King Street between Frederick and Cedar, and to erect a beer tent to celebrate the end of Downtown construction on September 26, 1998, provided the necessary licence, including health and fire approvals, and building permit are obtained; and further, That the licence fee of $25 be applicable." Councillor Ziegler asked that consideration be given to adding this recommendation to the agenda of the Special Council meeting to be held later this date. 8. SOCIAL GAMING EVENT (K-W OKTOBERFEST) The Committee was in receipt of a report and recommendation from J. Koppeser dated September FINANCE & ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 14, 1998 -112- CITY OF KITCHENER 3, 1998 in response to a request from Mr. Larry Blundell for endorsement of the organization's Provincial lottery licence application. On a motion by Councillor G. Lorentz, it was resolved: "That the City of Kitchener has no objection to a Provincial lottery licence being issued to the K-W Oktoberfest for a Social Gaming Event Licence to permit gaming tables during Oktoberfest, October 9-17, 1998 at Bingeman Park, 1380 Victoria Street N, Kitchener." 9. STREET VENDOR BY-LAW AMENDMENT (STILL CRAZY) The Committee was in receipt of a report from J. Koppeser dated September 3, 1998 requesting direction in regard to prior Council approval allowing face painting and the sale of balloon animals in Victoria Park until December 31, 1998. The report notes that in order to issue a licence the Street Vendors By-law must be amended to include a category and licence fee for this type of activity. Mr. Parkhouse advised that Council would also have to waive the current procedure for the selection of a successful licencee in this new category. On a motion by Councillor B. Vrbanovic, it was resolved: "That the Legal Department amend the Street Vendors By-law by creating a new category and licensing fee to accommodate the request of Mitch and Deb Bieth, carrying on business as "Still Crazy" and allow them to conduct the business of face painting and the sale of balloon animals in Victoria Park; and further, That the procedure outlined in the By-law for the selection of a successful licensee be waived for this 1998 request." 10. POLICE SIGNATURES - LOTTERY APPLICATIONS The Committee was in receipt of a report from J. Koppeser dated September 2, 1998 recommending a change in the requirement that Police sign all applications for lottery licences prior to licence issuance. On a motion by Councillor T. Galloway, it was resolved: "That the Manager of Licensing be authorized to issue lottery licences to organizations without requiring the application to be signed by the Waterloo Regional Police, provided the organization has been licensed previously by the City of Kitchener and their status with the City is in good standing." 11. ELECTRICIAN - FACILITIES MANAGEMENT The Committee was in receipt of a report from L. Proulx dated September 8, 1998 recommending the hiring of one permanent full-time Electrician. 11. Councillor Lorentz suggested that more detail as to how the position would be implemented should be obtained before making a decision. Mr. Gazzola responded that if further discussion is required the entire request should be referred to budget deliberations. Councillor Galloway offered the opinion that it is not necessary to refer this item to budget as it is a cost saving initiative. Mr. Pritchard reminded the Committee that this item was brought forward as a result of questions raised by Council and that it is the intention of staff to save money with this initiative and to document these savings after one year. ELECTRICIAN - FACILITIES MANAGEMENT- CONT'D it was resolved: "That the City proceed to hire one permanent, full-time Electrician to provide electrical repair services for the Corporation, with this position reporting to Facilities Management; FINANCE & ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 14, 1998 -113- CITY OF KITCHENER and further, That the suitability of said position be evaluated in one year's time." 12. CITY HALL CHRISTMAS DECORATIONS The Committee was in receipt of a report from L. Proulx dated September 8, 1998 concerning a proposal to decorate the cooling tower of the City Hall to resemble a Christmas gift at a capital cost of $20,000.00 and an annual cost of $3,000.00 to install and remove the decorations. Councillor Lorentz enquired whether staff had pursued corporate sponsorship, and Mayor Zehr questioned what a corporate sponsor would expect in the way of acknowledgement for any financial contribution. Mayor Zehr advised that he cannot support spending this amount of money for Christmas decorations, especially since many parts of the building are already decorated; however, he did support the notion of pursuing corporate sponsorship, Councillor Yantzi suggested approval in principle subject to 50 per cent of the cost being contributed by a corporate sponsor(s). On a motion by Councillor G. Lorentz, it was resolved: "That acquisition of the City Hall cooling tower Christmas decorations outlined in the report of L. Proulx dated September 8, 1998 be approved in principal subject to the City obtaining Corporate sponsorship in this regard; and further, That Facilities Management report back to the Finance and Administration Committee in regard to any related Corporate sponsorship initiative." 13. CITY HALL CO-GENERATION UNIT The Committee was in receipt of a report from L. Proulx dated September 8, 1998 recommending allocation of funds for the rebuilding of the co-generation unit. It was noted that the savings from this unit are below estimates; however, savings are still being realized. Mayor Zehr enquired as to the payback on this additional expenditure, and Mr. Proulx advised that at optimal efficiency, savings accrue at the rate of approximately $15,000.00 a year so that payback would be in just over one year's time. Councillor Galloway questioned the feasibility, with electricity deregulation, of selling power from the co-generation unit. Mr. Proulx responded that the power produced would be at Iow demand time, and Mr. Ford noted that a capital investment is required after which off-peak electricity could be sold back to the grid at a rate of approximately $6.00 per hour or a $20,000.00 per year gross profit. On a motion by Mayor C. Zehr, it was resolved: "That the City Hall co-generation unit be rebuilt, and that $20,000.00 in additional funding be provided toward repair costs in 1998." 14. ONTARIO MUNICIPAL RETIREMENT SYSTEM (OMERS) -CONTRIBUTION HOLIDAY The Committee was in receipt of a report from P. Houston dated August 27, 1998 recommending that OMERS savings be allocated to the Sick Leave Reserve Fund to help offset the liability within that fund. Ms. Houston pointed out that even with this infusion of capital the sick leave liability would be funded at the 20 - 25 per cent level rather than the 50 - 60 per cent level outlined in Council's policy. Councillor Galloway suggested that the City return all or a portion of this windfall to taxpayers through the Tax Stabilization Reserve Fund, and deal with the sick leave problem separately. On a motion by Councillor T. Galloway, it was resolved: "That the savings generated by the temporary OMERS contribution holiday, effective FINANCE & ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 14, 1998 -114- CITY OF KITCHENER August 1, 1998, of approximately $900,000.00 for 1998 and $1,300,000.00 for 1999 be allocated on a 50/50 basis to the Sick Leave Reserve Fund and the Tax Stabilization Reserve Fund." 15. IN-LINE SKATING BY-LAW The Committee was in receipt of a report from J. Shivas dated September 10, 1998 advising that the City has the necessary enabling authority to pass a by-law requiring the use of safety equipment by in-line skaters using public lands and outlining various related issues. Mr. Shivas advised against regulating in-line skating safety equipment at this time until a CSA or comparable standard has been established. He expressed concern over the possibility of litigation if injuries are sustained through the use of a non-standard helmet. Mr. Snow added that enforcement is also problematic if the standard is not clearly identified. Councillor G. Lorentz put forward a motion requesting that the Province act to develop safety standards relative to equipment for in--line skaters as well as providing guidance on enforcement of such standards and the use of public rights-of-way. He also requested circulation of the resolution to the Association of Municipalities of Ontario and Municipalities with populations of over 50,000. A motion by Councillor M. Yantzi to amend the motion of Councillor G. Lorentz so as to circulate a copy of the resolution only to the Association of Municipalities of Ontario was voted on and Carried. The main motion by Councillor G. Lorentz, as amended, was then voted on. On a motion by Councillor G. Lorentz, as amended, was then voted on. On a motion by Councillor G. Lorentz, it was resolved: "WHEREAS, it has been recognized that in-line skating is growing in popularity, and that in- line skaters are utilizing public sidewalks and roadways both recreationally and as a mode of transportation; AND WHEREAS, there are presently no recognized, uniform standards for in-line safety equipment, nor guidelines as to where on the transportation infrastructure in-line skating will be permitted; THEREFORE BE IT RESOLVED that the City of Kitchener hereby requests that the Province of Ontario develop safety equipment standards in respect to in-line skating and guidelines for their enforcement, as well as guidelines as to where on public roadways this activity should be permitted; AND FURTHER, that a copy of this resolution be forwarded to the Association of Municipalities of Ontario." 16. INFORMATION ITEMS The Committee briefly reviewed the unfinished business agenda and Councillor J. Ziegler asked that individual Councillors review those items on the agenda which they initiated and advise Mr. Sosnoski of any which can be removed. 16. INFORMATION ITEMS- CONT'D In regard to the unfinished business item relative to the City's Home Page and a question from Mayor Zehr, Mr. Pritchard advised that the City has had its codification of by-laws on the web site for approximately one year, but that it should be investigated whether this link to the Home Page can be made clearer and more direct. The Committee accepted, as information, the Corporate Financial Report (as of June 30, 1998) previously circulated by P. Houston and the report of J. Witmer dated August 28, 1998 concerning the initiative to remove posters from City hydro poles. Councillor Haalboom enquired whether there has been any initiative requiring the Province to pay FINANCE & ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 14, 1998 -115- CITY OF KITCHENER property taxes on buildings within the municipality as suggested by the Association of Municipalities of Ontario, and Ms. Houston advised that staff are presently looking into this. 17. NEXT MEETING The next regularly scheduled meeting of the Finance and Administration Committee will be held on Monday, September 28, 1998. 18. ADJOURNMENT On motion, the meeting adjourned at 12:20 p.m. G. Sosnoski Manager of Corporate Records and Assistant City Clerk