HomeMy WebLinkAboutCouncil Minutes - 2019-08-26 SSPECIAL COUNCIL MINUTES
AUGUST 26, 2019 CITY OF KITCHENER
A special meeting of City Council was held at 4:05 p.m. this date, chaired by Mayor B. Vrbanovic with
all members present.
Notice of this meeting had been previously given to all members of Council by the City Clerk pursuant
to Chapter 25 (Council Procedure) of the Municipal Code.
1. FIN -19-065 - LONG-TERM FINANCIAL PLAN -SPECIFIC ISSUES & FINANCIAL POLICIES
Council considered Financial Services Department report FIN -19-065 (J. Lautenbach), dated August
22, 2019, requesting input from Council on the Long -Term Financial Plan, which is intended to include
guiding principles, financial priorities and strategies, as well as financial forecasting and modelling.
Mr. J. Lautenbach, Chief Financial Officer, Financial Services Department, presented the report
advising Council in April approved the project scope and timeline related to developing the Long -Term
Financial Plan (LTFP). He indicated Council provided direction on Infrastructure Funding and Operating
Budget Room (Expiring Debt) at a strategic session in May of this year, noting the purpose of the
meeting this date was to receive feedback on the third financial issue which is investment income, as
well as on three draft financial policies: Budget Control Policy; Capital Financing and Debt Policy; and,
Investments Policy. Mr. Lautenbach further advised staff anticipate bringing forward a draft Long -Term
Financial Plan for consideration at the September 30, 2019 Finance and Corporate Services Committee
meeting.
Councillors J. Gazzola and K. Galloway-Sealock entered the meeting at this time.
Mr. Lautenbach provided an overview of the City's current investment policy. He stated the City's
investment strategy is regulated by the Municipal Act and highlighted what is currently permitted within
the regulations. He presented five options for investment incomes for consideration within the LTFP.
He indicated staff are seeking feedback specifically on the following questions, in regards to Specific
Issue 003 - Investment Income:
1. Do you support the establishment of an Investment Stabilization Reserve Fund to help mitigate
fluctuations and variances in the Operating Budget?
2. Does Council support moving to the use of a historical average for budgeting for investment
income?
Mayor B. Vrbanovic entered the meeting at this time and assumed the Chair.
In response to questions, Mr. Lautenbach advised as part of the development of the LTFP, staff will be
undertaking a review of the Reserve Policies and agreed to provide more information on the Energy
Retro -fit Reserve fund, including those options available for possibly increasing the funding for that
reserve.
Mr. D. Chapman, Chief Administrative Officer, agreed to provide Council additional information on the
tax levy increases, proposed service cuts and changes in staffing that occurred to address the
2008/2009 recession.
Mr. Lautenbach provided an overview of the draft policies and included the proposed changes between
our current practices proposed within the draft policies.
In regards to the Draft Financial Policies:
1. Do you have any questions or specific feedback regarding the policies prior to the final drafts
coming forward to Council for approval?
In response to questions regarding the Budget Control Policy, Mr. Lautenbach advised staff would be
willing to consider using percentages within the variance report as an additional means of reporting.
Mr. Chapman advised as the method being proposed for the variance report with regards to capital
projects is new, it may be advisable to proceed with the new reporting structure and have a further
discussion on the variance reporting and preferred options in 2020 following the initial implementation.
Councillor S. Marsh requested, pending the outcome of the Regional Review, that staff note the review
request as a requirement in 2020.
AUGUST 26, 2019
MAYOR
SPECIAL COUNCIL MINUTES
-133-
On motion the meeting
adjourned at 5:38 p.m.
4
LERK
CITY OF KITCHENER