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HomeMy WebLinkAboutFCS Minutes - 2019-04-15FINANCE & CORPORATE SERVICES COMMITTEE MINUTES APRIL 15, 2019 CITY OF KITCHENER The Finance and Corporate Services Committee met this date, commencing at 1:23 p.m. Present: Councillor S. Davey - Chair Mayor B. Vrbanovic and Councillors D. Chapman, K. Galloway-Sealock, J. Gazzola, B. Ioannidis, M. Johnston, S. Marsh, C. Michaud, D. Schnider and P. Singh. Staff: D. Chapman, Chief Administrative Officer M. May, Deputy CAO & General Manager, Community Services V. Raab, General Manager, Corporate Services J. Readman, General Manager, Development Services J. Lautenbach, Chief Financial Officer, Financial Services D. McGoldrick, General Manager, Infrastructure Services C. Bluhm, Executive Director, Economic Development K. Dever, Director, Strategy & Corporate Performance K. Kugler, Director, Sport D. Murray, Director, Technology Innovation & Services H. Gross, Director, Engineering R. Morgan, Capital Investment Advisor/Brownfield Coordinator J. Bunn, Manager, Council & Committee Services/Deputy City Clerk D. Saunderson, Committee Administrator 1. CAO-19-007 - MUNICIPAL ACCOMMODATION TAX - (ONTARIO REGULATION 435/17 TRANSIENT ACCOMMODATION TAX) The Committee considered report CAO-19-007 dated March 29, 2019 recommending approval of the Municipal Accommodation Tax. In addition, the Committee was in receipt this date of written submissions from the Waterloo Region Tourism Marketing Corporation and the Ontario Restaurant, Hotel, Motel Association in support of the implementation of a Municipal Accommodation Tax. Ms. K. Kugler presented the Report. Ms. Nancy Kisser and Ms. Vanessa Stevenson, Waterloo Region Tourism Marketing Corporation (WRTMC) were in attendance in support of the recommendation outlined in Report CAO-19-007. Councillor P. Singh left the meeting at this time. In response to questions, Ms. Kugler agreed to follow up with WRTMC to obtain their most recent audited financial statements and proposed budget, and to provide the information to members of Council. On motion by Councillor B. Ioannidis - it was resolved: That a by-law be established for implementation of a mandatory 4% Municipal Accommodation Tax for hotels in the City of Kitchener effective July 1, 2019, subject to equivalent approvals by the other lower tier municipalities in Waterloo Region, as outlined -19-007; and, That the 50% (Waterloo Regional Tourism Marketing Corporation - WRTMC) / 40% (City) / 10% (Region of Waterloo) revenue sharing model as outlined within this report be approved; and, That staff be directed to establish a Municipal Accommodation Tax Reserve Fund to segr That the Chief Administrative Officer (CAO) and Clerk be delegated authority to enter into an agreement with the Waterloo Regional Tourism Marketing Corporation to collect the revenues on behalf of the City of Kitchener and for the use of 50% of the Municipal Accommodation Tax funds by WRTMC. (Note: Administration costs to be deducted prior to distribution of funds); and, FINANCE & CORPORATE SERVICES COMMITTEE MINUTES APRIL 15, 2019 - 27 - CITY OF KITCHENER 1. CAO-19-007 - MUNICIPAL ACCOMMODATION TAX - (ONTARIO REGULATION 435/17 TRANSIENT ACCOMMODATION TAX) That the CAO and Clerk be delegated authority to enter into other agreements as may be required to administer and govern work to be funded from the MAT; and, That staff/WRTMC report back in 2020 to Council on the progress of the new Municipal Accommodation Tax; and further, That a joint study be undertaken by WRTMC and the Municipal partners in 2022 with respect to the effectiveness of the program to inform potential program refinements at that time. Pursuant to Chapter 25 (Procedure) of the Municipal Code, a motion was brought forward by Councillor J. Gazzola to discuss Consent items 1 and 2 listed on the agenda, which was voted on and was Carried. Mayor B. Vrbanovic entered the meeting at this time. 2. DSD-19-063 - MIDDLE STRASBURG TRUNK SANITARY SEWER - CREDIT/REFUND AGREEMENT REQUEST The Committee considered Development Services Department report DSD-19-063 dated March 20, 2019 recommending an agreement for development charges credit/refund payment for the costs of engineering fees and construction of the Middle Strasburg Trunk Sanitary Sewer (MSTSS). Mr. H. Gross was in attendance and responded to questions from the Committee. On motion by Councillor D. Schnider - it was resolved: That the Mayor and Clerk be authorized to execute a development charges credit/refund agreement, subject to the satisfaction of the City Solicitor, as outlined in Development Services Department report DSD-19-063, with the developers (Kitchener Green Developments Inc., Kitchener Green 3 Developments Inc., 2079546 Ontario Limited, Cook (South Estates) Limited, Max Becker Enterprises (II) Limited) in respect to the yment for the costs of the engineering fees and construction of the Middle Strasburg Trunk Sanitary Sewer (MSTSS). In addition, the agreement will contain provisions authorizing the acceptance of lands from the developers by the municipality on which the project will be constructed. 3. DSD-19-065 - BROWNFIELD REMEDIATION PROGRAM APPLICATION - TAX INCREMENTAL GRANT FOR 98-100 VICTORIA STREET SOUTH The Committee considered Development Services Department report DSD-19-065 dated March 11, 2019 authorizing the Mayor and Clerk to execute an agreement with the Region of Waterloo and 2373074 Ontario Inc. for 98-100 Victoria Street South related to Brownfield remediation and a tax incremental grant. Messrs. R. Morgan and C. Bluhm were in attendance and responded to questions from the Committee. In response to questions, Mr. Morgan indicated he could circulate the report to members of Council that was considered by the Region of Waterloo regarding the Brownfield remediation program. On motion by Councillor D. Schnider - it was resolved: That the Brownfield Remediation Program Application for 98-100 Victoria Street South, received from 2373074 Ontario Inc. dated January 29, 2017, be approved subject to the FINANCE & CORPORATE SERVICES COMMITTEE MINUTES APRIL 15, 2019 - 28 - CITY OF KITCHENER 3. DSD-19-065 - BROWNFIELD REMEDIATION PROGRAM APPLICATION - TAX INCREMENTAL GRANT FOR 98-100 VICTORIA STREET SOUTH That in exchange for a completed and filed Record of Site Condition for the subject property, the owner will be provided a tax incremental grant on the redevelopment of the property in the form of an annual rebate on City taxes in an amount equal to 100% of the City Tax Increment; and, That the City Tax Increment be defined as the difference between the City portion of real property taxes for the 2017 taxation year and the new City portion of real property taxes levied as a result of a new assessment by the Municipal Property Assessment Corporation (MPAC) following completion of the project as compensation for the remediation of the above subject lands; and, That the City property tax grant is estimated to be $327,815.00, payable in one year following re- and, That the Region of Waterloo Brownfield Coordinator be circulated a copy of any decision made by Kitchener City Council regarding this Application; and further, That the Mayor and Clerk be authorized to execute an agreement, subject to the satisfaction of the City Solicitor, with the Region of Waterloo and 2373074 Ontario Inc., to implement the provisions of the Brownfield Remediation Program Application for 98- 100 Victoria Street South, as outlined in Development Services Department report DSD- 19-065. 4. COR-19-017 - DIGITAL KITCHENER - 2019 UPDATE The Committee considered Corporate Services Department report COR-19-017 dated March 29, 2019 regarding an update on the progress of Digital Kitchener Strategy and proposed work for 2019. Mr. D. Murray presented the Report and responded to questions from the Committee. Councillor P. Singh re-entered the meeting at this time. On motion by Councillor B. Ioannidis - it was resolved: That staff be directed to begin work on the proposed opportunities for Digital Kitchener in 2019, as outlined in Corporate Services Department report COR-19-017. 5. FIN-19-030 - LONG-TERM FINANCIAL PLAN: PROJECT SCOPE AND TIMELINE The Committee considered Financial Services Department report FIN-19-030 dated March 29, 2019 regarding the proposed scope and timeline for the development of a Long-Term Financial Plan. Mr. J. Lautenbach presented the report and responded to questions from the Committee. On motion by Councillor P. Singh - it was resolved: That staff be directed to develop a Long-Term Financial Plan based on the proposed scope and timeline, as outlined in Financial Services Department report FIN-19-030. 6. ADJOURNMENT On motion, this meeting adjourned at 3:10 p.m. J. Bunn D. Saunderson Manager, Council & Committee Services/ Committee Administrator Deputy City Clerk