Loading...
HomeMy WebLinkAboutFinance & Admin - 1998-12-16 SFAC\1998-12-16-SPE DECEMBER 16, 1998 FINANCE & ADMINISTRATION COMMITTEE MINUTES CITY OF KITCHENER The Finance and Administration Committee met this date in special session commencing at 8:55 a.m. and Chaired by 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, J. Haalboom, G. Lorentz and C. Weylie. Others present: Ms. P. Houston, Ms. G. Luciantonio, Mrs. J. Koppeser, Ms. C. Ball. Messrs. J. Gazzola, T. Clancy, O. den Ouden, T. McCabe, J. Shivas, R. W. Pritchard, L. Parkhouse, D. Paterson, L. Proulx, D. Hergott, B. Gulliver, D. Anderson, P. Sinnott and G. Sosnoski. 1. 1999 OPERATING BUDGET Ms. Houston provided an overview of the 1999 Operating Budget as recommended by the Administrative Review Committee. She noted that total weighted assessment growth in 1999 will be 2%, but that a greater than average number of assessment appeals have been received. Ms. Houston reviewed City taxes in comparison to the Consumer Price Index and noted that since 1994 City tax increases have been below the CPI. Ms. Houston also noted that a 1% increase in taxes has a value of approximately $675,000, with property taxes for a typical household increasing by approximately $8.06 for every 1% increase. Ms. Houston advised that at present the proposed 1999 tax levy is $69,529,000, a 3% increase over 1999. She advised that department budget estimates reflected a 4.62% increase which was reduced by the Administrative Review Committee by 1.62% resulting in a 3% increase, or 1% net of assessment growth. Councillor Galloway inquired as to the outcome of the Council resolution requesting re-calculation of the municipality's Provincial subsidy grant. Ms. Houston advised that the re-assessment took place and as a result the City has received an additional $150,000. No reasons were given by the Province for the revised amount, and it has been placed in the Tax Stabilization Reserve Fund as directed by Council. Councillor Galloway indicated that he had expected to see an analysis of the change in departmental fees from 1998 to 1999. Ms. Houston indicated that this information would be brought back to the Committee when it meets on December 18. Ms. Houston reviewed the highlights of the 1999 Operating Budget for the Centre In The Square. Mr. Jamie Grant and Ms. Marlene Batchelor appeared on behalf of the Centre In The Square. Councillor Vrbanovic initiated a brief discussion concerning how the operating budgets for the Kitchener Public Library and the Centre In The Square are dealt with by the Administrative Review Committee. He noted that staff initially advised the Boards to limit budget increases to 0.5% as directed by Council, then during the review reduced these increases to zero. Councillor Vrbanovic questioned the process used and whether or not it is fair to the Boards. Mr. Gazzola advised that initially, administrative estimates reflected a tax levy increase of 5% with the Administrative Review Committee working to reduce this amount. He noted that reductions were requested from all City operating areas, and in this regard the Boards were treated the same. Councillor Vrbanovic offered the opinion that the Boards are being penalized by the process, noting that with the exception of Finance and Public Works, all City department budgets are increasing by more than 0.5%. Mr. Gazzola responded that all City Departments implemented some form of reduction in an effort to reduce the projected tax increase, and in many cases were treated more harshly than the Boards. Ms. Houston also reminded the Committee that Council had added a number of new budget items which had to be compensated for, the cost of which must be shared by both the City Departments and the Boards. Councillor Galloway noted that the City provides an operating grant to the Public Library and Centre In The Square and that such grants have not been increased for other organizations. Mr. Gazzola concluded by saying that administration have presented a responsible budget position and it is now up to Council to either increase or decrease budget amounts. On a motion by Councillor M. Yantzi, it was resolved: "That the 1999 Operating Budget for the Centre In The recommended by the Administrative Review Committee." 1999 OPERATING BUDGET (CONT'D) Square be approved as FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 16, 1998 CITY OF KITCHENERCITY OF KITCHENER Ms. Houston reviewed the 1999 Operating Budget for the Kitchener Public Library, and noted that there was no budget increase. Ms. Margaret Walshe and Ms. Sabina Franzen were in attendance on behalf of the Library. Ms. Houston noted that the Administrative Review Committee is recommending a $27,000 reduction in the Library's collection budget. Ms. Walshe advised of her concerns over further reductions to the collection budget as this has a direct impact on collection levels. She noted that over the past three years the budgeted amount for collections has remained at $968,000. She noted that the real costs to purchase library materials increases annually by between 3% and 8%, noting that if funding was at the 3% level the budget request should be for $1.1. million. Ms. Walshe noted that a $39,000 increase was initially requested which is much less than what is required given the cost of items and the current exchange rate. She also advised that the business community relies heavily on library services and research, and that at present, they have approximately 250 such clients. Councillor Ziegler inquired as to the feasibility of a separate charge to business to subsidize their needs, and Ms. Walshe advised that the library is launching a fee-based service in 1999 directed to individuals and the business community. Survey responses from approximately 150 businesses indicated that they are prepared to pay a small amount in this regard as opposed to the larger cost of purchasing these resources themselves. Moved by: Councillor G. Lorentz "That no action be taken to reduce the Kitchener Public Library collection budget by $27,000 as recommended by the Administrative Review Committee." Councillor Lorentz commented on the previous discussion concerning the decision of the Administrative Review Committee to remove any increase from the Library and Centre In The Square Board budgets. He offered the opinion that Council should not criticize administrative staff for doing their job in reducing budgets to meet Council targets. He noted that Council is always at liberty to adjust these priorities in the context of the budget as recommended by staff. Mayor Zehr inquired whether the library collection is deteriorating significantly, and whether the library is in a position to service the public need. Ms. Walshe replied that the collection is deteriorating and that the number of new titles acquired annually has decreased. She indicated that it may be necessary, in some areas, for the public to access non-local collections. Mayor Zehr suggested the possibility of a one-time capital allocation to increase the library collection. Ms. Walshe responded that other libraries have tried to establish a capital fund for acquisitions, and that she is prepared to investigate and report on this option prior to submission of the year 2000 budget. Councillor Galloway expressed an interest in this option and asked that the Library Board review it, and that there also be discussion by Council. Councillor Jake Smola also expressed an interest in seeing a specific library collection plan. Councillor Vrbanovic asked that staff reconsider how the Library and Centre In The Square budgets are dealt with at Administrative Review, and that Council discuss this further at a future date. Both Councillors Ziegler and Galloway indicated support for how staff have handled this matter in the past, and advised that they do not support further discussion. The motion by Councillor G. Lorentz to take no action on a $27,000 reduction in the Library collection budget was voted on and Carried. Ms. Houston reviewed highlights of the 1999 Operating Budget for Contract Services involving Project Lift and the Humane Society. Mr. Dave Smith and Mr. Ken Cressman were in attendance on behalf of Project Lift. Ms. Houston noted that there is no increase proposed for the Project Lift appropriation, and a 0.6% increase in regard to the Humane Society. 1. 1999 OPERATING BUDGET (CONT'D) FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 16, 1998 CITY OF KITCHENERCITY OF KITCHENER A brief discussion took place concerning the provision of Project Lift services in the City of Waterloo, and Mayor Zehr asked for information on benchmarking and the cost per ride for parallel transit. Ms. Houston suggested that this matter is best dealt with in the context of other activities taking place in 1999, including the Transit Strategic Plan and the re-negotiation of the contract for parallel transit services with the City of Waterloo. Councillor John Smola noted that Project Lift is proposing a fare reduction from $2.35 to $2.00, and it was generally agreed that a resolution of Council in this regard would be considered at the special meeting to be held at 12 noon on Friday, December 18, 1998. On a motion by Councillor John Smola, It was resolved: "That the 1999 Operating Budget for Project Lift Inc. be adopted as recommended by the Administrative Review Committee." On a motion by Councillor John Smola, It was resolved: "That pre-budget approval be granted for a 1999 Project Lift fare of $2.00 per ride, a decrease from the 1998 fare of $2.35, with the new fare to take effect on January 1, 1999." Ms. Houston reviewed highlights of the Le.qal Department budget, noting a proposed increase of 0.8%. The Committee was in receipt this date of two items of correspondence from J. Shivas, City Solicitor, both dated December 15, 1998. The first contains a recommendation to hire an articling student. The second report recommends establishing a fee for written inquiries regarding security for planning agreements, and discontinuation of the practice of providing refunds for releases of planning agreements which are not answered within 60 days of receipt. Councillor Jake Smola requested that discussion take place at a future in-camera meeting regarding a strategy for contract negotiation with the Humane Society. Mr. Shivas spoke to the recommendations contained in the above two reports, noting that an estimated $3,000 to $4,000 is returned to applicants each year under the refund program and staff feel this is inappropriate and creates an unnecessary burden. On a motion by Mayor C. Zehr, It was resolved: "That consideration of the request of the Legal Department to discontinue refund of the $60.00 fee for requests to release planning agreements where these are not answered within 60 days of receipt be referred to a future meeting of the Finance and Administration Committee, possibly in conjunction with a discussion of City fees; and further, That at that time, a report be submitted outlining the number of such requests received annually, the number which are addressed within 60 days and the number which are not, as well as the annual dollar amount of the refunds." On a motion by Councillor T. Galloway, It was resolved: "That a $25.00 fee be established in the Legal Department for written responses to inquiries as to whether the City holds adequate security to ensure completion of the obligations of subdividers and developers under planning agreements." Mr. Shivas indicated that the articling student is being requested as the workload of the City's 1. 1999 OPERATING BUDGET (CONT'D) DECEMBER 16, 1998 FINANCE & ADMINISTRATION COMMITTEE MINUTES CITY OF KITCHENERCITY OF KITCHENER Solicitors does not allow them sufficient time for research and other routine matters. He also noted that the Legal Department did have an articling student from 1974 to 1980, this position discontinued with the hiring of an additional full-time lawyer. He further advised that the position would be on a contract basis and could involve in excess of 40 hours per week. Councillor Galloway expressed concern over the use of legal resources by City staff, noting that in some cases legal opinion may be inappropriate or unnecessary. He suggested that a comprehensive review take place to determine which departments are requesting legal resources and the nature of these requests. Councillor J. Haalboom put forward a motion to adopt the Legal Department budget as recommended by the Administrative Review, but to take no action on the request for an articling student. The recommendation also included reference to the comprehensive review suggested by Councillor Galloway. Councillor Haalboom suggested that Council requests may also be responsible for the additional workload. Mayor Zehr added that Council should consider its requests of staff in light of whether the information or service would add value. Councillor Jake Smola suggested that any comprehensive report on the use of legal services should also include an indication, from a legal perspective, of what presently is not being done where inaction results in risk of liability. He also asked that information be provided on the nature and amount of outsourcing of legal services. Councillor Haalboom accepted, as a friendly amendment, a suggestion from Councillor Yantzi that the Legal Department be permitted to hire an articling student, provided the position can be accommodated within the existing budget. Councillor Weylie also asked that any report include an indication of the time and effort spent by the Legal Department in mediating disputes which allows the City to avoid costly legal action. On a motion by Councillor J. Haalboom, It was resolved: "That the 1999 Operating Budget for the Le.qal Department be approved as recommended by the Administrative Review Committee, and that the Department be permitted to hire an articling student as outlined in the report of J. Shivas dated December 15, 1998, provided the cost of such position is accommodated within the approved budget; and, That the Chief Administrative Officer undertake a comprehensive review of the use of legal services by City departments, with a report in this regard to be considered when Council and Staff conduct the Strategic Plan Review in January of 1999." Ms. Houston reviewed highlights of the 1999 Operating Budget for each division of the Corporate Services and City Clerks Department, noting an overall budget increase of 2.3%. Mr. Parkhouse advised that as a result of previous Council direction that there be no increase in Places of Refreshment Licences in 1999, business licence revenue should be reduced by $22,000 in 1999. He further advised that this will have an annualized negative impact of approximately $44,000. Councillor Lorentz questioned whether the late charge which was also approved would offset this revenue loss, and Mr. Parkhouse replied that the figure provided is an estimate of projected revenues net of late payments. On motion by Councillor G. Lorentz, It was resolved: "That the 1999 Operating Budget for the Clerks Division of the Corporate Services and City Clerks Department be approved subject to reducing 1999 business licensing revenue by $22,000 to reflect no increase in the 1999 Places of Refreshment Licence fee." Councillor Lorentz questioned the $15,000 allocation in the Facilities Management budget for 1. 1999 OPERATING BUDGET (CONT'D) FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 16, 1998 CITY OF KITCHENERCITY OF KITCHENER snow removal at Transit. Mr. Gazzola responded that complaints were received that the roadways around the facility were not being adequately cleared. Fleet staff were doing this as time allowed and with Public Works now taking on this responsibility snow removal will be done sooner, but at an increased cost. Councillor Lorentz questioned why one department is not responsible for snow removal at all City owned facilities. Councillor Vrbanovic inquired as to the status of the review directed under the Strategic Plan concerning the entire issue of responsibility for City facilities. Mr. Gazzola replied that the review is in process, and it is hoped discussion in this regard can take place when the strategic plan is reviewed early in 1999. Councillor Vrbanovic indicated that it was his sense the review process had slowed down. Councillor Jake Smola commented on the division of responsibilities between Facilities Management and Parks and Recreation as regards City facilities and indicated that he would like to see a co-ordinated review, including consideration of service contracting where applicable. He also referred to a recent Council decision to accelerate implementation of the Energy Management Plan, and asked for a report on these initiatives. Mr. Pritchard replied that the annual energy management report will be presented to the Finance and Administration Committee on January 11, 1999. Mr. den Ouden indicated the report from the committee charged with undertaking a rationalization of services between Facilities Management and Parks and Recreation is in the draft stage and after finalization will be presented to the Chief Administrative Officer. Councillor Jake Smola suggested that any rationalization should be in the best interests of the Corporation and that a compromise solution agreeable to all of the affected departments may not be appropriate under the circumstances. Mr. Gazzola responded that staff are continually looking at how services are delivered and a number of the rationalizations referred to have already been undertaken, the recent closing of the Maple Street Yards being one example. Councillor John Smola responded to an earlier comment from Councillor Jake Smola concerning the option of contracting. He cautioned that in the case of snow removal the City would pay a premium to ensure that municipal snow removal is a number one priority. He referred to a recent circumstance involving the Auditorium where a significant premium was paid to have a private contractor on call. Staff have since developed a process for snow removal at the Auditorium which involves Public Works storing a spare grader on site for snow clearing purposes. On a motion by Councillor K. Taylor-Harrison, It was resolved: "That the 1999 Operating Budget for the Facilties Manaqement Division of the Corporate Services and City Clerks Department be adopted as recommended by the Administrative Review Committee." Ms. Houston reviewed highlights of the 1999 Operating Budget for the Human Resources Division. On a motion by Councillor K. Taylor-Harrison, It was resolved: "That the 1999 Operating Budget for the Human Resources Division of the Corporate Services and City Clerks Department be adopted as recommended by the Administrative Review Committee." Ms. Houston reviewed highlights of the 1999 Operating Budget for the Fleet Division of the Corporate Services and City Clerks Department. On a motion by Councillor G. Lorentz, It was resolved: "That the 1999 Operating Budget for the Fleet Division of the Corporate Services and City Clerks Department be adopted as recommended by the Administrative Review Committee. Ms. Houston reviewed highlights of the 1999 Operating Budget for the Chief Administrative 1. 1999 OPERATING BUDGET (CONT'D) Officer's Department noting a 90.8% increase due to the creation of a Corporate Communications FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 16, 1998 CITY OF KITCHENERCITY OF KITCHENER Division. Councillor Ziegler inquired as to the number of employees proposed for the new division and Mr. Sinnott indicated three, himself as Director, an Administrative Assistant, and a proposed new Communication Officer position. Mr. Sinnott advised that his report was recently considered by Management Committee as it has an impact on other operating departments. He indicated that his review of the City's current areas of need identified one of these as communications planning and management. The new position is included in the 1999 budget with an April start subject to Council approval in conjunction with an overall communications plan. Councillor Ziegler inquired as to the 1999 budget impact of hiring a new Communications Officer and staff advised that this would be $33,000 with the annualized cost being higher. Councillor Galloway advised that it is premature at this time to include a budget allocation as it is not Council's practice to do so prior to approving the position itself. He noted that if appropriate, the amount could be added to the budget during the course of 1999. Mr. Gazzola clarified that the Administrative Review Committee had agreed to include a budget allocation provided corresponding savings could be realized in other areas of the Communications Division. He noted that a report will be submitted to the Finance and Administration Committee for consideration on January 11, 1999, and that this will give Council an opportunity to deal with the request prior to Budget Day on January 29. Mayor Zehr requested that when the new position is brought forward for consideration, this be done in the context of the original proposal for the Corporate Communications Officer and the enlarged mandate and recommendation submitted to Council. On motion by Councillor T. Galloway, It was resolved: "That the $33,000 allocation in the 1999 Operating Budget of the Chief Administrative Officer's Department relative to the hiring of a new Communications Officer be removed, pending consideration by Council of a staff report and recommendation on the proposed, new position, said report to include details of the original proposal in regard to the Communications Officer position as well as the subsequent recommendation involving the creation of a Corporate Communications Division." Ms. Houston reviewed the 1999 Operating Budget for General Expenses and Revenues noting a 44% increase largely due to the Capital Policy and an increase in the City's general provision for grants. On a motion by Councillor John Smola, It was resolved: "That the 1999 Operating Budget for General Expenses and Revenues be adopted as recommended by the Administrative Review Committee." Ms. Houston then reviewed Reserves and Reserve Funds on a fund by fund basis. A brief discussion took place concerning the appropriate level of funding in the Equipment Pool Reserve, and it was noted that ideally the amount should reflect the depreciated value of all City vehicles and equipment. She advised that decreasing the amount in the Reserve would result in a further deferral of equipment replacement which would likely result in increased repair costs. She noted that the Reserve is substantially below depreciated cost, and Mr. Gazzola added that the current allocation is within an acceptable range of financing. On a motion by Councillor Jake Smola, It was resolved: "That the Reserves and Reserve Funds for Working Capital, Farmer's Market Reserve, Auditorium Ticket Sales, Computer Fund and the Equipment Pool be adopted as recommended by the Administrative Review Committee; and further, 1. 1999 OPERATING BUDGET (CONT'D) That approval of the Equipment Pool Reserve be subject to additional information and DECEMBER 16, 1998 FINANCE & ADMINISTRATION COMMITTEE MINUTES CITY OF KITCHENERCITY OF KITCHENER clarification on December 18, 1998 of the depreciated value of the City fleet." It was generally agreed that the balance of the Reserves and Reserve Funds as recommended by staff would be considered at December 18, 1998 meeting. NEXT MEETING The next special meeting of the Finance and Administration Committee to review the 1999 Operating Budget will be held on Friday, December 18, 1998. ADJOURNMENT On motion, the meeting adjourned at 12 noon. G. Sosnoski Manager of Corporate Records and Assistant City Clerk