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HomeMy WebLinkAboutFinance & Corp - 2004-06-29FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JUNE 29~ 2004 CITY OF KITCHENER The Finance and Corporate Services Committee met this date, commencing at 4:10 p.m. Present: Chair - Councillor M. Galloway. Mayor C. Zehr and Councillors C. Weylie, J. Smola, J. Gazzola and G. Lorentz, Councillor B. Vrbanovic was in attendance for part of the meeting. Staff: P. Houston, General Manager, Financial Services & City Treasurer G. Stewart, General Manager, Development & Technical Services F. Pizzuto, General Manager, Downtown Development C. Ladd, General Manager, Strategic Services B. MacDonald, Director of Budget and Financial Services D. Quinn, Director of Utilities T. Turner, Manager, Employee Strategies D. Gilchrist, Committee Administrator 1. SSD-04-028 - CORPORATE EMPLOYEE DEVELOPMENT PLAN The Committee was in receipt of Strategic Services Department report SSD-04-028, dated June 16, 2004, advising of the goal for the City of Kitchener to become one of Canada's Top 100 Employers by 2006, and outlining a proposal to achieve that goal. With the aid of a PowerPoint Presentation Ms. Turner explained the proposed Corporate Employee Development Program consisting of: a Corporate Recognition Program, Divisionally Based Programs, Corporately Based Programs, Testing/Profiling Systems, and an Employee Survey. She advised that the aim of the program is to have the City of Kitchener become one of Canada's Top 100 Employers by 2006. Ms. Turner advised that OMERS statistics reveal that 15% of the City of Kitchener employees will reach retirement age by 2015, and 25% by 2020. In order to attract and retain top talent in the future, it is essential the City position itself as an employer of choice, and the proposed Employee Development Program will go a long way in doing so. Councillor B. Vrbanovic entered the meeting at this time. Questions were raised by the Committee as to what programs of this nature are already being undertaken by the City; if not at a corporate level, then by division and section, and how much money is already currently being spent on these types of initiatives. It was generally agreed that consideration of this staff report be deferred and referred to a future Finance and Corporate Services Committee meeting, to allow staff an opportunity to provide the following information: a) current programs offered by the City at any level, similar to those proposed in this staff report, and the costs associated therewith; b) information on what the corporation has done to improve the quality of life for its employees; c) statistics on absenteeism; d) a comparison in this regard with other public corporations; and, e) inter-relationship of the proposed program to others already being undertaken by the City. Mayor Zehr questioned intended timing for this program, and was advised by Ms. Ladd, the program is intended to run from 2004-2006. If the Committee defers its consideration today, the program will not commence until 2005. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JUNE 29, 2004 - 103 - CITY OF KITCHENER 1. SSD-04-028 - CORPORATE EMPLOYEE DEVELOPMENT PLAN (CONT'D) On motion by Councillor J. Gazzola - it was resolved: "That consideration of the proposed Corporate Employee Development Program, as outlined in Strategic Services Department report SSD-04-028, be deferred and referred to the earliest Finance and Corporate Services Committee meeting where staff can provide a list of all the current employee recognition and development initiatives undertaken at all levels of the Corporation, and the costs associated with each." 2. FIN-04-029 - NATURAL GAS RATES- INTERRUPTIBLE CUSTOMERS The Committee was in receipt of Financial Services Department report FIN-04-029, dated May 27, 2004, recommending a delay in implementing the monthly fixed charge for the Gas Utility's interruptible customers. On motion by Councillor J. Gazzola - it was resolved: "That the implementation of the $500 monthly fixed charge for the interruptible customers of Kitchener Utilities, be deferred until January 1,2005." 3. FIN-04-024 INVESTMENT POLICY The Committee was receipt of Financial Services Department report FIN-04-024, dated June 14, 2004 recommending a new Investment Policy for the City of Kitchener. A copy of the new Investment Policy was attached to the report. Councillor J. Gazzola referred to Section 12 in the policy, requesting that staff report before May 31st and November 30th each year. On motion by Mayor C. Zehr - it was resolved: "That the Investment Policy attached to Financial Services Department report FIN-04- 024 be approved; and further, That the Treasurer provide Council with an investment report prior to May 31st and November 30th each year." 4. FIN-04-033 ASSET MANAGEMENT STRATEGY UPDATE The Committee was in receipt of Financial Services Department report FIN-04-033, dated June 15, 2004, providing the Committee with an update in regard to the status of the strategic initiatives for Asset Management. Ms. Houston advised that a team is reviewing the City's inventory of land to determine if there are any parcels surplus to requirements. There are currently 100 parcels in the inventory. 5. 2005-2007 - BUDGET TARGETS - POWERPOINT PRESENTATION Ms. Houston gave a PowerPoint presentation with respect to the 2005-2007 Budget targets for the City of Kitchener. She advised the anticipated value of 1% on the tax base for each of the three years is as follow: 2005 - $710,000, 2006 - $756,000, and 2007 - $805,000. She then advised that the total weighted assessment growth for 2003 was 2.33%, and for 2004 is 2.63%, and anticipated assessment growth for the next 2 years at 1.5%. With respect to the increase in costs for households as compared to municipalities, based on the Consumer Price Index, Ms. Houston noted average household costs will increase by 2.2%, whereas the City's costs will increase by 3.4%. Ms. Houston then noted one of the strategic changes for future budgets is to reduce reliance on the Tax Stabilization Reserve Fund. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JUNE 29, 2004 - 104 - CITY OF KITCHENER 5. 2005-2007 - BUDGET TARGETS - POWERPOINT PRESENTATION. CONT'D Ms. Houston next outlined 4 options the City could exercise in preparing the budget: phase-in the water dividend impact over 2 years; delay the reduction in the transfers from the Tax Stabilization Reserve Fund for 1 year, introduce service level reductions, and/or undertake a core service review. Ms. Houston requested direction form the Committee as to which of the options, is any, are acceptable, and whether the Committee has any other options it wants staff to pursue. When questioned, Ms. Houston advised the Administration will commence the 2005 Budget preparation as soon as possible. Mayor Zehr requested the dates for Budget review be established as soon as possible. A discussion took place with respect to property reassessment, and tax ratios. A further discussion took place with respect to 2004 operating expenditures for the Stanley Park Community Centre, and the Downtown Wellness Centre. Mr. Pizzuto was requested to provide 2004 budget details for these two facilities. Ms. Houston advised, upon questioning, that a delay in the water dividend will gain 1% and a delay in the Tax Stabilization Reserve Fund reduction for one year will gain 0.8%. Mayor Zehr stated an 8% increase in taxes for 2005 is not acceptable, and directed staff to aim for an increase no greater than 5%. 6. ADJOURNMENT On motion, the meeting adjourned at 5:13 p.m. Dianne Gilchrist Committee Administrator