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FIN-19-085 - 2020 Operating Budget
l Staff Report K u Financia! Services Department www.kitchener.ca REPORT TO: Finance and Corporate Services Committee DATE OF MEETING: November 25, 2019 SUBMITTED BY: Ryan Hagey, Director of Financial Planning, 519-741-2200 x 7353 PREPARED BY: Ryan Hagey, Director of Financial Planning, 519-741-2200 x 7353 WARD (S) INVOLVED: All DATE OF REPORT: November 13, 2019 REPORT NO.: FIN -19-085 SUBJECT: 2020 Operating Budget RECOMMENDATION: For Discussion Note: Final approval of the 2020 Operating Budget will take place as part of Final Budget Day, scheduled for January 20, 2020. EXECUTIVE SUMMARY: The budget is the City of Kitchener's annual financial plan, and is the primary basis of financial decision making. The budget process allows Council to prioritize the programs and services delivered by the City and sets direction for the work to be completed over the upcoming year as well as future years referenced in the budget forecast. For 2020, the proposed tax rate increase is 2.2%, which is the multi-year average of inflation for 2018/2019. In addition, the Water Utilities (water, sanitary, and stormwater) rate increase is 4.4% which is slightly less than the rate forecast from the 2019 budget process as well as the Water Infrastructure Program (WIP) review considered by Council in September 2017. The impact of the 2020 budget on the average homeowner is shown in the graphic to the right. In addition to continuing to fund core services, the 2020 budget also includes investment options for Council's direction that will improve service delivery for citizens and help accomplish the goals of the City's Strategic Plan and move forward with other important priorities. .r .i - -.. Water utilities increase is 4.4 per cent or $50/year. Gas increase is 1.0 percent or $7/year. Total impact - $81/year. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. O-1 BACKGROUND: The City's operating budget funds the ongoing costs of valued public services citizens use every day. Examples include offering a multitude of programming at the City's 13 community centres, having drinkable water available at the turn of a tap, and maintaining roads in a condition they are safe to drive on all seasons of the year. The City's operating budget also funds a number of services citizens may not think of when they consider what the City offers them for the taxes and fees they are charged. These services are nonetheless crucial in ensuring the City runs efficiently and effectively. Examples include operating robust information technology systems so citizens are able to sign up for the programming offered at their community centre, maintaining proper records about the City's water system to ensure compliance with applicable legislation, and having a proper process to purchase the right vehicles and equipment to make the city's roadways driveable, even throughout a Canadian winter. The operating budget provides funding for all the City's services. It doesn't matter if the service is delivered by frontline staff directly to citizens, or is needed behind the scenes in a supporting role. Funding in the operating budget is used to maintain the City's current service levels, and is used to improve them based on Council direction. The remainder of this report elaborates on the 2020 operating budget in the following sections: • Strategic Plan Investments • Long Term Financial Plan • Overview of the Tax Supported Operating Budget • Flexibility & Options • Overview of the Enterprise Operating Budgets REPORT: 1) Strategic Plan Investments Council approved the City of Kitchener's 2019-2022 Strategic Plan on June 24, 2019. The City's Strategic Plan aims to achieve specific goals during this term of Council - goals that may require financial commitments through the budget process as well as dedicated resources to continue to make Kitchener an innovative, caring, and vibrant community. The Strategic Plan includes 25 actions that are grouped into five themes. Some of the actions have already been completed, some of them will be worked on in 2020, and some of them will be focused on in future years. The graphic below highlights the Strategic Plan investments relevant to the 2020 budget, with more detailed information provided afterward. O-2 Strategic Plan Theme Investments in the 2020 Budget Great Customer Service - $172K ) People Friendly Transportation - $1.1M Environmental Leadership - $3.4M r Caring Community- $4.6M f Vibrant Economy -$150K Great Customer Service ($172,000) • Many Languages: $102,000 ($82,000 operating, $20,000 capital) for 24/7 on -demand multi - language translation support • Customer Satisfaction Program: $70,000 ($50,000 operating, $20,000 capital) for the implementation of a Corporate Customer Satisfaction Program to collect just -in -time customer feedback People -Friendly Transportation ($1,136,000) • Protected Cycling Network: $900,000 (all capital) starting to be allocated in 2020 for the implementation of a protected cycling network, with details of how it will be spent to be prioritized after the completion of the Cycling and Trails Masterplan • Pedestrian -First Streets: $236,000 ($36,000 operating, $200,000 capital) to pilot a pedestrian -first street corridor on Gaukel Street between Victoria Park & City Hall Environmental Leadership ($3,440,000 + additional investment options) • Corporate Climate Action Plan: $3,240,000 (all capital) for the conversion of decorative streetlights to LEDs + other additional investment options for Council direction • Sustainable Urban Forest Strategy: $200,000 (all operating) for the implementation of a tree risk mitigation program + other additional investment options for Council direction O-3 Caring Community ($4,600,000 + additional investment options) • Affordable Housing: Investment options for Council direction • Community Centre Expansion: $4,600,000 (all capital) for the expansion of the Mill Courtland Community Centre Vibrant Economy ($150,000) • Business Cases: $100,000 (all reserve) for the development of business cases for food, manufacturing, and health/med-tech industry incubators • Make It Kitchener 2.0 Strategy: $50,000 (all reserve) to finalize the City's economic development strategy. 2) Long Term Financial Plan In 2019, Council endorsed the Long Term Financial Plan (LTFP). A number of the recommended actions from the LTFP are reflected in the 2020 budget, with other actions planned for future years. The actions reflected in this year's budget include: • 1.1 Incorporate Strategic Plan goals and actions into the budget process • 4.2 Allocate a portion of "operating budget room" related to EDIF to address Strategic items and 60% to Facility Infrastructure; including considering debt where appropriate to advance particular priorities • 5.1 Use a 3 year historical average for determining the level of investment income to include in the operating budget; establish an Investment Rate Stabilization Reserve to help mitigate rate fluctuations • 6.1 Rename the "Winter Control Reserve" to "Weather Events Reserve"; expanding the purpose to help mitigate potential impacts and fluctuations in the operating budget due to weather events • 7.1 Provide a breakdown of the property tax increases showing the increase related to base service, corporate allocations, and impacts due to growth • 7.2 Use a 2 year CPI rolling average (past, current) as a benchmark for assessing annual property tax increases related to base service increases • 8.2 Reallocate 25% of gas tax funding from road resurfacing to support community infrastructure needs; arenas, community centres, trails, etc. • 9.1 Clearly identify through the budget process when additional resources are required to support growth in the community and increased levels of service 3) Overview of the Tax Supported Operating Budget The proposed net tax levy increase is 2.2% and would amount to an additional $24 per year, or $2.00 per month on the average Kitchener home (assessed at $318,000). This level of increase matches the multi-year average rate of inflation (2018/2019). O-4 While keeping tax rate increases around the rate of inflation is an important factor to take into account when setting the budget it is not the only consideration. For a number of years Kitchener has considered a number of factors such as: • Comparison to other municipalities; • Inflationary factors, including those unique to municipalities; and • Balance of service levels versus affordability Comparison to Other Municipalities The City of Kitchener is already one of the most affordable cities in Ontario. It has one of the lowest tax burdens of large cities in Ontario, consistent with the other cities in the Region of Waterloo. The graph below shows the 2018 results of BMA's annual tax burden analysis for the same bungalow property in each of Ontario's largest municipalities. Kitchener holds the sixth lowest ranking in the province, meaning it is one of the most affordable cities in Ontario. Annual Tax Burden of a Bungalow in Large Ontario Municipalities (>100,000 people) $5,W0 $4,000 _---- ---------- - - - -- - $s,OW $2,000 $1,000 c�`�� 0 �bg cL�a C�� �`°� 3�Q� att� ���� �se� �`°c qQ 4a,p �° , f��a e ts p-�`� rvOA cae 4,a �ca�' L,�� $`ae �Q �c� �� Ga`� $J``r L yi 4`c� G� Inflationary Factors, Including Those Unique to Municipalities The proposed tax rate increase approximates the anticipated rate of inflation. As part of the Long Term Financial Plan (LTFP), Council endorsed a more long term view of inflation. In the past, Council has only looked at the year-to-date (YTD) Consumer Price Index (CPI) inflation figure as the benchmark for inflation. Through the LTFP, Council endorsed a multi-year average O-5 benchmark that takes into account last year's actual CPI figure and the current year-to-date CPI figure. The figures for the 2020 budget are shown in the table below. Multi-Year CPI Inflation Calculation 1 1 • - 2.4% 1.9% 1 2.2% While CPI measures the impact of inflation on the average consumer, the "basket of goods" the City purchases is considerably different than a typical household. For instance, the top three components of the CPI calculation are shelter, transportation and food which do not apply the same way to a municipality as they do an individual. The City's inflation index, known as the Municipal Price Index (MPI), normally has a different value than CPI, but for 2020 is very similar. This means the inflation pressures on the City of Kitchener budget are akin to the typical Ontario household. In setting divisional budget targets, inflationary increases are limited to a few select cost types like compensation which are increased according to collective agreements. Meanwhile, budgets in other areas like supplies and contracted services are held flat. If increases are required in those budget lines, divisions are required to find savings, or new ways to generate revenues to offset the increased costs. Balance of service levels versus affordability The proposed tax rate increase also reflects citizen preferences related to service levels and affordability. The proposed tax supported budget maintains existing City services at an increase near the rate of inflation. These preferences have been reaffirmed through statistically significant community surveys conducted in 2013 and 2018. The graph below shows that Kitchener citizens prefer increasing taxes at the rate of inflation in order to maintain existing services (59% in 2018, down from 61 % in 2013) over other alternatives. Citizen Preferences Regarding Tax Increases and Service Levels Increase taxes at the rate of inflation and maintain services Increase taxes to expand services Maintain taxes and possibly cut services Unsure 59% 61% 6% 6% 0% 10% 20% 30% 40% 50% 60°l 70% ■ 2018 Community Survey IS 2013 Community Survey O-6 Recent Operating Budget Results One final, but important consideration is how the City has been performing financially in recent years. For the past four years, the City has ended the year with a surplus in tax supported operations. For the decade prior to 2015, the City had finished each year with an operating budget deficit (before applying funds from one-time capital closeouts). Capital closeouts are funding left over when a capital project is completed, and should not be relied on to fund ongoing operating expenses as the closeouts are one-time revenues. In essence, prior to 2015 the City's operating budget was not truly balanced and the cost of providing services was larger than revenues to fund them. Over the course of several budgets, Council made eliminating ongoing operating deficits a priority, and chose to allocate funding to budget areas that were regularly over budget (i.e. areas of chronic deficit). So while full funding levels appear to have been achieved, there is a very small margin of error between ending the year in a surplus or deficit position. Council needs to ensure their earlier efforts to pass a sustainable budget are not eroded by decisions that plan for ongoing services to be funded by on one-time funding sources or budget reductions that are not supported by underlying operating conditions. The table below shows the yearend operating budget history for the past few years, all of which were within 1 % of budgeted expenditures. These yearend results demonstrate the thin margin of error operating divisions have in their Council approved budgets. They also demonstrate the overall accuracy of the City's budget, as well as good oversight and monitoring of City finances while delivering valued services to the community. Tax Supported Operating Budget Results Before Capital Closeouts The City maintains a Tax Stabilization Reserve Fund (TSRF) which is used to fund any operating deficits (or receive funds from any operating surpluses) within the tax supported operating budget. Maintaining a balance in the TSRF is important as these funds are used to fund deficits and avoid tax rate increases caused by deficits in prior years as prescribed in the Municipal Act. It is also important to maintain a balance in the TSRF going forward as it is planned to be the funding source for transitional costs incurred by Centre in the Square in 2020 and beyond. An appendix to this report shows the tax supported operating budget in the same format as the variance report. Like the variance reports, comments have been provided for variances that are more than $50,000 compared to the prior year's budget. O-% 4) Flexibility & Options During the 2020 budget, Council will decide how to invest $360,000 of unallocated tax supported funding. As part of the Long Term Financial Plan (LTFP) review earlier in 2019, Council discussed operating budget room that will be created due to Economic Development Investment Fund (EDIF) debt maturing, meaning the City will no longer need to pay those principal and interest costs starting in 2020. Council chose to allocate 60% of this EDIF debt room to fund the facility infrastructure deficit, leaving 40% to be allocated during the 2020 budget process. For 2020, the unallocated EDIF debt room equals $360,000. Staff are proposing four different areas for investment based on the Strategic Plan, and other options referred to the budget process. The graphic below shows the four areas of investment, as well as options for each area. • Option, C $22K • $39K i$100K $200K • 5) Overview of Enterprise Operating Budgets $125K • $200K $143k • N/A The City operates seven enterprises, which are self-sufficient business lines that raise their own revenues through user rates instead of being funded through property taxes. As part of the budget package, "Enterprise Overviews" have been provided for each of the enterprises. These overviews describe the main purpose of the enterprise, provide some benchmarking information, and describe recent challenges/successes. The seven enterprises are noted in the table below. • Golf • Natural Gas • Building • Water • Parking • Sanitary Sewer • Storm Water Rates for the enterprises listed on the left of the table have already been considered by Council as part of the annual user fee review (report FIN -19-077). The enterprises listed on the right are commonly referred to as utilities and their rates will be approved as part of a separate report as part of the budget cycle (with the exception of Natural Gas which happens outside of the budget process). While each of the enterprises is managed separately as its own business line, one significant principle is followed by each of enterprises; ensuring financial sustainability. Each enterprise has its own stabilization reserve fund that is used to manage fluctuations in financial operating results from year to year. In years that end with positive results, the surplus funds are held in reserve and are used to fund deficits that may arise in future years. The general guidelines for managing these reserve balances are as follows: • If an enterprise has a positive stabilization reserve balance, the goal of staff is to propose a budget (and any associated rate increase) that ensures the reserve does not become negative, and ideally would achieve the minimum target threshold for the reserve. • If the stabilization reserve balance is already negative, the goal of staff is to propose a budget (and any associated rate increase) that reduces/eliminates annual operating deficits in each year of the forecast and returns the reserve to a positive balance within the 5 -year forecast. Budget highlights and reserve balances for each of the enterprises are provided below. Building Increased building permit activity in 2019 is causing a projected surplus of $2.3M by the end of the year. Higher than expected results in row housing and residential improvement permits has led to higher revenues. After reducing many Building fees by 5% in 2017, no rate increase is projected for the next few years based on the health of the stabilization reserve. This approach has been vetted by the Waterloo Region Home Builders Association (WRHBA) earlier this fall. With no rate increase in 2020, a deficit of $468,000 is expected. -Lag i 2019 Projected Actual $2,353,000 surplus 2019 Accumulated Stabilization Reserve Balance $10,149,000 positive 2020 Budgeted Rate Increase 0% 2020 Budgeted Result $468,000 deficit 2020 Accumulated Stabilization Reserve Balance $9,946,000 positive O-9 Golf Financial results in Golf are on budget for 2019. The Golf stabilization reserve balance will remain in a negative balance, but is expected to improve starting in 2023 when some existing debt is paid off, resulting in lower principal and interest payments. It is not expected the accumulated deficit in Golf will be fully paid off until 2038 which is four years after all the Doon Expansion debt is paid off. The 2020 budget for Golf is largely status quo. Some fees are being increased by 2%, while others are being held flat to remain competitive. Overall, a positive result of $15,000 at the end of the year is expected, which is just slightly better than budgeted. Budget2019 Projected Actual $0 2019 Accumulated Stabilization Reserve Balance $1,028,000 negative 2020 Budgeted Rate Increase 2% 2020 Budgeted Result $15,000 surplus 2020 Accumulated Stabilization Reserve Balance $1,040,000 negative Parking The 2019 projected surplus of $583,000 in Parking is better than budget due to increased demand for on -street parking and monthly parking in all garages. For 2020-2021, Parking is projecting a breakeven position before expecting small surpluses in 2022 and beyond. Rates at the City's parking facilities are being increased 1.5% in 2020, which is consistent with last year. These rate increases will help ensure the Parking stabilization reserve remains positive over the 5-vear forecast. 2019 Projected Actual $583,000 surplus 2019 Accumulated Stabilization Reserve Balance $1,260,000 positive 2020 Budgeted Rate Increase 1.5% 2020 Budgeted Result $0 2020 Accumulated Stabilization Reserve Balance ' $1,278,000 positive Natural Gas In 2019, Gas Delivery is projecting a surplus of $1,276,000 due to higher revenues caused by cooler than normal temperatures. For 2020, Gas Delivery is expected to have a deficit of $1,653,000 due primarily to the increased cost of gas pipeline replacement. . r.. • R ii 2019 Projected Actual $1,2796,000 surplus 2019 Accumulated Stabilization Reserve Balance $6,037,000 positive 2020 Budgeted Rate Increase Set outside of budget 2020 Budgeted Result $1,653,000 deficit 2020 Accumulated Stabilization Reserve Balance $4,542,000 positive 0-10 In 2019, Gas Supply is projecting a deficit of $1,743,000, which is somewhat better than the budgeted deficit of $2,059,000. For 2020, Gas Supply is expected to have a modest deficit of $387,000 in order to pass through rate savings to customers. Budget Supply 2019 Projected Actual $1,743,000 deficit 2019 Accumulated Stabilization Reserve Balance $3,198,000 positive 2020 Budgeted Rate Increase Set outside of budget 2020 Budgeted Result $387,000 deficit 2020 Accumulated Stabilization Reserve Balance $2,894,000 positive Water, Sanitary & Storm Water The budgets for these three utilities are being discussed together as they were the combined subject of a comprehensive review called the Water Infrastructure Program (WIP). The WIP review took several months to complete and involved collaboration between several divisions within the City including Asset Management, Engineering, Kitchener Utilities, Operations — Environmental Services, Operations — Roads and Traffic, Financial Planning and Communications. The findings of the WIP review were presented and discussed by Council in September 2017 as part of report INS -17-070 Water Infrastructure Program Summary and Rate Options. This report provided information about the infrastructure in each of the utilities and provided Council with investment options for both capital replacement and increased maintenance spending along with 5 -year rate options for these utilities. All of the options provided to Council were viable alternatives that would ensure the continued safe operation of these valued utilities. The options offered different alternatives for Council to consider, depending on their attitudes towards cost of service and risk tolerance. Council's consensus from that discussion was reflected in the 2018 and 2019 utility rate increases approved through the budget. The 2020 combined proposed rate increase of 4.4% is slightly lower than the forecast rate increase for 2020 as shown in the table below. 111F.Projected Combined Utility Rate Increases Rate Increase Projection from WIP 6.5% 6.5% 14.50/o1 4.5% 4.5% Revised Rate Increase Projection 1 6.5% 6.5% 4.4% 4.5% 4.5% The 2020 combined increase of 4.4% is slightly better than forecasted because of two Regional impacts that offset each other, but were not anticipated as part of the original WIP modeling. First, the Region has moved the date of their rate increase for water supply and sanitary sewage processing to January 1St instead of March 1St. This has upward pressure on rates since higher 0-11 prices are being charged earlier than was modeled during the WIP analysis. Second, the Region has reduced the rate increase for water supply and sanitary sewage processing by 1 %. This has downward pressure on rates since the price increase is less than what was modeled during the WIP analysis. The overall impact is summarized in the chart below and shows how each change impacts the overall WIP rate increase. WIP 2020 Rate Increase Reconciliation Originally Forecasted WIP 2020 Rate Increase 4.50 Timing of Regional Rate Increase Moved to January 1 +0.3% Regional Rate Reduction -0.4% Revised Proposed WIP 2020 Rate Increase 4.4% The table below further breaks down the WIP rate increases into different components. Proposed Utility Rate Increases Broken Into Component Parts Water 0.8% 2.1% 0.0% 0.0% 2.9% Sanitary 1.6% 2.7% 0.0% -1.0% 3.3% Storm Water 0.0% 4.7% 1.9% -1.4% 5.0% Total 1.4% 3.5% 0.3% -0.9% 4.4% • Regional Rate Increase — Impact on the utility rate of the change in Regional water/sanitary rates. • Capital — Impact of increased investment in the capital program. • Maintenance — Impact of increased investment in maintenance activities. • Other — Impact of all other changes. Examples include inflationary increases for existing budget items, changes to water/sewage processing volumes, and changes to net revenue/(expense). The summary charts below show these utilities have surpluses projected in 2019 and budgeted in 2020. All of their stabilization reserves are planned to be in a positive balance in the near future, meaning each utility has some financial capacity to deal with the unexpected. .. 2019 Projected Actual $792,000 surplus 2019 Accumulated Stabilization Reserve Balance $4,275,000 positive 2020 Budgeted Rate Increase 2.9% 2020 Budgeted Result $46,000 surplus 2020 Accumulated Stabilization Reserve Balance 1 $4,432,000 positive 0-12 Budget 2019 2019 Projected Actual $1,776,000 surplus 2019 Accumulated Stabilization Reserve Balance $6,231,000 positive 2020 Budgeted Rate Increase 3.3% 2020 Budgeted Result $72,000 surplus 2020 Accumulated Stabilization Reserve Balance $6,466,000 positive Budget2019 2019 Projected Actual $745,000 surplus 2019 Accumulated Stabilization Reserve Balance $509,000 positive 2020 Budgeted Rate Increase 5.0% 2020 Budgeted Result $101,000 surplus `)n`)n Orri imi dn+nr! C4nhili-7n4inn Reeenin Rnlnnre �R7,:t nnn nnei4ive ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: The recommendation of this report supports the achievement of the city's strategic vision through the delivery of core service. FINANCIAL IMPLICATIONS: The financial impacts on the average homeowner of services provided to citizens by the City of Kitchener are shown in the table below. Taxes Storm Water Water Sanitary Total M41309mm. ME- &W Impact on Homeowner14 2020 2019 $ $ '1,113 $ $ 175 $ $ 435 $ $ 543 $ 2020 $ % 1,137 $ 24 2.20% 185 $ 10 5.00% 450 $ 15 2.90% 568 S 25 3.30% $ 695 S 702 S 7 1.01% Assumptions: City Taxes: Current Assessed Value (CVA) of $318,000 Storm Water: property classified as Residential Single Detached Medium Water & Sanitary: water consumption of 175m3 Natural Gas: gas consumption of 2,100m3 0-13 COMMUNITY ENGAGEMENT: Citizens have an opportunity to provide input about priority areas of the budget through a number of processes. Their input comes through public consultation efforts for comprehensive master plans (e.g. Leisure Facilities Master Plan), strategies (e.g. Urban Forestry Strategy, Customer Service Strategy), or specific issues (e.g. City Hall Outdoor Spaces). As part of those processes, staff considers the feedback received from the public as they make their recommendations and share it with Council when those recommendations are presented for approval. The budget is the process whereby Council affirms approved priorities and allocates funds to bring these concepts into reality. For the 2020 budget process, staff will continue to employ a suite of traditional and electronic engagement methods in an effort to effectively inform and consult citizens. Staff will proactively provide information about the budget process via media outreach and the City's website. Citizens are encouraged to provide their input by: • Writing, emailing or phoning City Hall • Attending the public input session planned for January 13, 2020 • Responding to the City's Face book/Twitter posts about the budget • Utilizing Engage Kitchener online budget survey • Providing feedback on the 2020 budget options using the online budget allocation tool • Contacting their ward councillor ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services 0-14 Definitions, Abbreviations & Acronyms Definitions Assessment growth refers to property taxes from new and/or expanded homes and/or businesses to pay for the services they receive. Base Budget funds programs and services already offered to the public and includes the costs (e.g. staffing, materials, supplies) and revenues (e.g. user fees, recoveries) to deliver the program/service. Boards are separate organizations established by the City to provide programs and services as allowed under the Municipal Act. For Kitchener, the Boards include Centre in the Square (CITS) and Kitchener Public Library (KPL). Brownfield properties are formerly developed sites that are no longer being used for those purposes. In the City context, they are often former industrial or commercial sites with known or suspected pollution. Capital Budget funds investments in municipal infrastructure (or assets) that provide a long-term benefit to the community. Examples of capital costs include building or replacing roads, water mains, vehicles, community centres and parks. Capital out of Current is a funding transfer from the operating budget to the capital pool. Capital Pool is used to fund tax supported capital projects. The capital pool is funded by a) capital out of current, b) debt, c) gas utility investment reserve, and d) hydro utility investment reserve. Corporate Allocations are general expenses like debt charges and contributions to the capital budget. Debt is funding the City has borrowed to complete capital projects. Debt to Reserve Ratio is the amount of the City's debt divided by the amount the City has in reserves. The target debt to reserve ratio is 1:1; meaning the City would have one dollar saved in reserves for every dollar of debt it has issued. Development Charges are fees imposed on development to fund growth related capital costs. Enterprises are self -funding business lines operated by the City and are fully funded by their own user rates, not property taxes. The City's enterprises are Golf, Building, Parking, Natural Gas, Water, Sanitary Sewer, and Stormwater. Existing Capital Balances are capital funding that have already been approved by Council, but have not been spent. Some capital projects take multiple years to complete (e.g. road reconstruction, building a new community centre), so the funding may accumulate for future spending. 0-15 Definitions, Abbreviations & Acronyms Federal Gas Tax is annual funding provided to the City by the federal government for capital improvements. Impacts Due to Growth are additional operating costs required to support the expansion of service areas as the city continues to grow. Interdivision/Internal Charges are costs charged by one City division to another City division for work completed on their behalf. For instance, the Building enterprise pays other City divisions for financial, technological, and legal support. Issue Papers are brief documents (typically 1-2 pages in length) that provide information about budget issues, usually relating to new items included in the proposed budget. Net Tax Levy is the amount of funding required from property taxes. It equals all of the tax supported gross expenditures minus all other revenues. Operating Budget funds the day-to-day costs of the municipality to provide its programs and services. Examples of operating costs include salaries and wages for city employees; utility costs, such as water and electricity; and operating supplies, such as road salt. Reserve/Reserve Funds are used to set aside funding now to be used for a specific purpose in the future. The city maintains reserves for both operating purposes (e.g. rate stabilization reserve funds), capital purposes (e.g. fleet and equipment reserve fund) and as required by legislation (e.g. federal gas tax reserve fund). Strategic Plan articulates a vision "together we will build an innovative, caring, and vibrant Kitchener" and mission "proudly providing valued services for our community", for the City. Following each municipal election, this document is updated with Council's new strategic goals and key activities for the upcoming term. Strategic Initiatives are program/service enhancements that help achieve the goals of the City's Strategic Plan. Tax Supported programs/services are funded in part or completely by property taxes. Examples include road & sidewalk maintenance, fire protection, and community centre programming. User Fees are charges for programs and services provided by the City, which reduces dependence on property taxes as a funding source. Typically they are charged for programs/services where customers have a choice on whether or not to use them. Examples of user fees include swimming lessons and marriage licenses. 0-16 Definitions, Abbreviations & Acronyms Acronyms & Abbreviations AIRP —Accelerated Infrastructure Replacement Program AMP —Asset Management Plan CAO —Chief Administrative Officer's Department CC — Capital out of Current CITS — Centre in the Square COR — Corporate Services Department CPI — Consumer Price Index CRM — Customer Relationship Management CSD —Community Services Department CVA — Current Value Assessment DC — Development Charges DSD — Development Services Department DT — Downtown EDIF — Economic Development Investment Fund FIN — Financial Services Department FTE — Full Time Equivalent GHG — Green House Gas GIS — Geographic Information System INS— Infrastructure Services Department KMAC — Kitchener Memorial Auditorium Complex KOF — Kitchener Operations Facility KPL— Kitchener Public Library KU — Kitchener Utilities LTFP — Long Term Financial Plan MGMT - Management MOE — Ministry of the Environment MPAC —Municipal Property Assessment Corporation MPI — Municipal Price Index MTCE — Maintenance MTO — Ministry of Transportation PIL — Payment in Lieu of Taxes PSAB — Public Sector Accounting Board ROW — Region of Waterloo SWM — Stormwater Management TCA—Tangible Capital Asset TIG —Tax Increment Grant TSRF —Tax Stabilization Reserve Fund VPP —Victoria Park Pavilion WRHBA —Waterloo Region Homebuilders Association WIP —Water Infrastructure Program YTD —Year to Date 0-17 co 1 O v c .0 } v - v o > �a Q 0 o v um �v Y d o ° ° u 3 0 N 3 c U Q c O O Oba N N an d mQ a J i N Y Y Y Y y 9 i UN un O O O O Ouu w O C d u O0 C Y C C C O N Y O E a° O u0A D O .O O O O O O E E o 0 ° `9 v ° v Op O O W c c c c a C '^ 'n - C o 'S ' v a EE E E 0 0 N O. 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N Cf) f- N O Q O (D O (D C) N I` N N O O O 0 0 O O w 'Gt n w CO CD O In C7 Ln In m CO (D Cd O Cn O 7 N CO N co n - CN CY)O N O Co r— d' CO N f r C7 N C') E� qT Ln 1 O U Ch Y i i2 V) Q U) L C 0 O Z W W E a Z C © N L 0 C� C cl L O 0_ p a�3 S O 00 c a) cn W z cn W x CU L7 d i77 cu �- 2© U v O U O � Q y� O 0 (V�_ _ c� 'An V/ N O_ > O wi wi Z qT Ln 1 O CITY OF KITCHENER 2020 BUDGET ISSUE PAPER ISSUE: Op 01— Continuing Transitional Funding for Centre In The Square (CITS) FUND: Operating DEPARTMENT: Centre In The Square PREPARER: Deborah Daub, Director of Finance, CITS BUDGET IMPACT: $111,311 (funded from the Tax Stabilization Reserve Fund In 2016, Centre In The Square (CITS) was allotted $250,000 for transition funding due to the change to Mandate B that became a new policy from the City of Kitchener for CITS to follow. This transition funding increased the total funding for CITS to $2,000,000 when it was added to the $1,750,000 operating grant that was approved for 2016. Since then, the total funding provided to CITS by the City has remained at $2,000,000, but the transition funding has been decreased each year by the increase in the grant provided to CITS by the City. The transition funding has been $250,000 in 2016, $218,500 in 2017, $182,870 in 2018, and $146,527 for 2019. The request reflects the decision taken by City Council in March 2015 tied to the new mandate and the subsequent financial implications for CITS. As the new agreement between CITS and KWS is implemented over the next 2 — 4 years (starting with the 2019/2020 season in September 2019) and to continue to make the necessary adjustments for the Mandate fiscally possible, CITS is asking for a continuation of this transition funding with a decrease of $35,216 from the 2019 amount. This would amount to an additional transitional funding of $111,311. With the increase of the operating grant by inflation to $1,888,689, this additional funding will leave the total funding for CITS at $2,000,000 matching the total amount received in 2016, 2017, 2018, and 2019. In addition, in order to support several capital projects, CITS is requesting that any yearend surplus amounts in 2020 be retained by CITS and assigned to its capital replacement fund. Any deficits would be split 50/50 between CITS and the City. The current arrangement is that any surpluses or deficits are split 50/50 between CITS and the City. CITS would like to retain any 2020 surplus to help fund upcoming capital projects such as the replacement of the original stage jack lift mechanisms and the replacement of the seating to allow for more AODA seating. The transition funding will support the Front of House costs for our community partners (such as the Grand Philharmonic Choir) and will allow CITS to continue to work with other smaller arts presenting organizations within Kitchener. It also provides support for other Mandate activities such as covering some of the costs of access to the Studio and Main Theatres. That approval be granted for additional transitional funding of $111,311 for the CITS to be disbursed from the Tax Stabilization Reserve Fund at the request of the CITS Board, with Council being notified of the request by email, And that any yearend surplus in 2020 be retained by CITS to help fund its capital projects, but any deficit be split 50/50 between CITS and the City. 0-55 Ln 0 E 0- 0 O • �-n 0 O W cr W Ln O _=3 V 0 0 Ln 1 O 8 8 8 R lD L L? 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L75 ; 2 0 u 0 co 1 O rn 1 N a; 1 1 0 1 d pp V CDN N • 1 1 1 1 1 1 N N 1 1 L � ° 1 Y N 1 N o 1 V � 1 C E 1 X — 1 Ln a N i ---J 1 p t- 1 _ 1 U o Q1 0 1 p L � 1 N c 1 u 1 o w a� c C) N Ui Q Lri O ill P N N ri O Un 0 O (3) O Un O r -I O r-' O Ol lfl 00 `~ O N r.. -cn- N N O cn qj)- qj)- N Q 0 C: ca bn ca cn U L C: fa • Q U i C]A E Q .0 U c� O O rl N bn 41 p ate-+ M a CL (A � > O • — Oa�+ U - Q U Q — •� Q N Q 'v O M M fa a -J cu cu LL cn Q cn _ C: Q L bA C: Q Q fa — fa _ U fa U U O O •� N (D N U C: tLoN i i • a � N I N O z m Un m O (3) O Un R:I- r -I O Ol lfl 00 m r --i r.. -cn- N N rl qj)- qj)- Q O U Q 0 (D L E Q .0 U c� rl rl N O 1 N L N 06 L N LL a -J C6 L E E In Ln E ca L bD O L O ca �U O N N Q O L bD z O N N U U Q N L J C6 Q X LU T'4 1 O 0 0 0 0 0 CL CL CL CL rCL 0 0 0 0 0 T'4 1 O N O CITY OF KITCHENER 2020 BUDGET ISSUE PAPER ISSUE: Op 02 — Community Grant Funding (Tier 1 & Tier 2) - REVISED FUND: Operating DEPARTMENT: Community Services Department — Administration PREPARER: Carrie Kozlowski, Executive Assistant, Community Services Department BUDGET IMPACT: For Council's Direction STRAT PLAN: Core Service The City's 'Community Grants' program includes two primary types of grants: Tier 1: These grants fund longstanding organizations. To be eligible for Tier 1 funding, organizations must have been funded by the City for at least 5 years through Tier 2. In 2019, Tier 1 grant funding was provided to 87 different organizations, ranging $204 to $240,720. The average grant was $16,174. Tier 2: These grants typically fund new or emerging community organizations, events, and/or initiatives. The proposed services must be in the areas of arts and culture, special events, sports and recreation or community development. In 2019, Tier 2 grant funding was provided to 46 different organizations, ranging from $750 to $10,000. The average grant was $3,763. The following charts provide historical information on the level of grant funding provided over the past five years: Year Tier 1 Funding Approved # $ 2019 88 $1,423,308 2018 87 $1,395,477 * 2017 87 $2,136,004 * 2016 81 $2,098,350 2015 67 $1,817,080 AVG 82 $1,774,044 Year Tier 2 Applications Received Tier 2 Funding Approved # F $ # $ 2019 57 $453,436 46 $173,081 2018 54 $336,512 46 $179,134 2017 59 $362,784 45 $161,736 2016 67 $360,554 50 $164,147 2015 61 $422,425 51 $192,165 AVG 60 $387,142 48 $174,053 *Important Note: In 2017, funding for three key cultural institutions (THEMUSEUM, Kitchener - Waterloo Symphony and Kitchener—Waterloo Art Gallery) was moved from the Tier 1 grant budget to the Economic Development operating budget. This change resulted in the significant reduction to the Tier 1 budget shown above between 2017 and 2018. The proposed 2020 budget includes $1,450,758 for Tier 1 grants and $176,240 for Tier 2. 0-73 CITY OF KITCHENER 2020 BUDGET ISSUE PAPER Community Grants Review As it has been 10 years since the Community Investment Strategy was approved by City Council, staff have begun a review of the community grant program to identify opportunities for improvement. One area of focus for that review will be to examine effective methods to ensure long-term funding sustainability for the grants program. As part of that review staff will be engaging City Council in a discussion in 2020. While recognizing a review of the grants program is now underway, in April 2019 Council directed staff to develop options to increase the amount of funding available for community grants. The proposed 2020 budget already includes an inflationary increase of 1.9% to the total grant allocation — an additional $30,488. Should Council wish to increase grant funding further, here are two options to consider that reflect direction provided in the City's Council approved Community Investment Strategy: 1. Option #1— $22,000 /additional funding to account for population growth 2. Option #2 —$38,509 /additional funding to account for population growth and a "community complexity factor" Should Council choose to increase the community grant budget beyond the inflationary increase already included in the proposed budget, staff recommends that additional funded be directed to Tier 2. For Council's direction. 0-74 CITY OF KITCHENER 2020 BUDGET ISSUE PAPER ISSUE: Op 03 — Sustainable Urban Forestry Strategy Implementation Options FUND: Operating DEPARTMENT: Infrastructure Services — Parks and Cemeteries PREPARER: Niall Lobley, Director BUDGET IMPACT: For Council's Direction STRAT PLAN: Environmental Leadership BACKGROUND: In April, 2019, Council approved Kitchener's first Sustainable Urban Forest Strategy (SUFS). Alongside the Strategy, Council endorsed an iterative and phased approach to implementation, prioritizing investment in key areas highlighted within the strategy. The 2019 budget approval supported delivery of: • Eliminating the 2018 tree planting backlog by the end of 2022 • Establishing a tree canopy target by the end of 2020 Managing our urban trees and forests is a long-term objective; making incremental improvements with a focus on the customer and a strong foundation of planning and management will be key to achieve the goals established by the community in the Sustainable Urban Forest Strategy. Alongside the approval of the strategy, Council provided feedback on areas for focused activity in the early implementation of the SUFS. Council indicated that the following areas are important for early phases of implementation: • Tree Planting (City led and Community) • Tree Pruning/Proactive Management • Risk Mitigation & Inspection • Conserve and Protect • Develop an Emergency Response Plan Staff are proposing a conservative and iterative approach to funding the delivery of the Sustainable Urban Forest Strategy respecting the broad range of pressures that existing across the municipality and that focusses on key areas of delivery for Council. Immediate staff resource pressures are recommended to be addressed through two additional forestry positions in 2020 (see Issue Paper Op 06) and continued support for managing risk within our tree canopy embedded within base operating budgets. Staff have provided options for the investment in the implementation of the SUFS that range between $50,000 to $200,000 in operating funding to support priorities identified by Council. These options advance programs aimed at increasing the health and resiliency of Kitchener's urban forest and implementing protective measures. This request does not reflect full implementation of the Sustainable Urban Forest Strategy, but is considered a prudent initial investment. Staff look to Council to provide guidance and support as to where they would most like to invest in the Urban through the following three options. 0-75 CITY OF KITCHENER 2020 BUDGET ISSUE PAPER Note: Tree planting to meet strategic plan targets is embedded within the existing capital program in 2020 and 2021. Through the development of a tree canopy target, a long-term tree planting strategy will be developed and various funding mechanisms considered. Therefore, further enhancements to tree planting are not recommended at this time. Option A — Conserve and Protect- $50,000 In addition to existing planned work to evaluate tree protection policies, by-laws and incentives, this option would further protect the urban forest canopy through the development of woodland management plans that would incorporate invasive plant management strategies. Option B — Risk Mitigation & Inspection - $100,000 1 A tree risk management program would formalize practices and allow for an inventory to be completed every 7 years and an enhanced level of inspections would be undertaken over the course of 10 years. Inspections are an important maintenance practice to actively monitor and respond to tree risk related concerns and issues and mitigate potential damages and liabilities. The City's current inspection program is complaint -based and does not provide a systematic method of inventory and inspection of the urban forest. Option C —Tree Pruning/Proactive Maintenance - $200,000 Pruning is a key urban forest management activity that should occur routinely throughout a trees life to increase resiliency of the urban forest canopy. In the early years of a trees life cycle, pruning establishes healthy growth and manages later issues (such as stem co -dominance, a significant risk factor in mature trees); as trees mature, pruning removes deadwood, lifts the canopy and proactively addresses risk issues. The City does not currently have a proactive pruning program; pruning is complaint driven. The most significant area of public concern in respect to City owned tree related issues is associated with a lack of pruning. One of the recommendations of the Sustainable Urban Forest Strategy is to implement a proactive maintenance and pruning program. An annual investment of $200,000 would support a minimal investment into proactive maintenance or pruning. Over time, staff would be able to establish a desired service level associated with pruning to inform future budget requests. Options are provided that range between investments in a sustainable urban forest of $50,000; $100,000; $200,000 in operating funding. For Council's direction. 0-76 CITY OF KITCHENER 2020 BUDGET ISSUE PAPER ISSUE: Op 04 — Affordable Housing Options FUND: Operating DEPARTMENT: Development Services Department PREPARER: Karen Cooper, Manager Strategic and Business Planning BUDGET IMPACT: For Council's Direction STRAT PLAN: Caring Communitv The City is preparing an affordable housing strategy to better position itself to find solutions to growing unaffordability. The strategy is to be completed by the end of 2020. While the strategy is being developed there are existing opportunities to make progress on housing and there will likely be quick wins identified in 2020. There are two opportunities outlined within this issue paper that merit funding in advance of the development of the affordable housing strategy. First, Homelessness & Housing Umbrella Group (HHUG) in partnership with Wellbeing Waterloo Region (WWR) is running an ALL IN 2020 campaign. The campaign is seeking to raise community, awareness and resources to end chronic homelessness in Waterloo region by November 2020 — 5 years ahead of the provincial government goal. The campaign is seeking to raise $700,000 to help end chronic homelessness. To date about $120,000 has been raised. Funds are being used to address a number of barriers that prevent people from accessing and staying housed. Second, as the City of Kitchener develops its Affordable Housing Strategy there will likely be 'quick wins' identified. Currently there is only funding allocated towards the development of the strategy, with no money allocated towards new programs or services related to affordable housing. In the spring of 2020, staff anticipate that Council will be presented with issues and options. Should 'quick wins' be identified, there will be no funding available to implement them until the 2021 budget year. Allocation of operating dollars towards 'quick wins' will help advance delivery on the affordable housing strategy earlier than waiting for the advancement of the full strategy. Council will be consulted and would approve distribution of the funds in 2020. Three options are proposed for Council's consideration related to ongoing operating budget funding for affordable housing as outlined below. Option A - $75,000 A $75,000 contribution would be made to ALL IN 2020. Funding in future years would be allocated based on the findings of the affordable housing strategy. 0-77 CITY OF KITCHENER 2020 BUDGET ISSUE PAPER Option B - $125,000 A $75,000 contribution would be made to ALL IN 2020 + $50,000 available in 2020 for 'quick win' opportunities. Funding in future years would be allocated based on the findings of the affordable housing strategy. Option C - $200,000 A $75,000 contribution would be made to ALL IN 2020 + $125,000 available in 2020 for 'quick win' opportunities. Funding in future years would be allocated based on the findings of the affordable housing strategy. For Council's direction. 0-78 CITY OF KITCHENER 2020 BUDGET ISSUE PAPER ISSUE: Op 05 Expand Leisure Access to Neighbourhood Association Programs FUND: Operating DEPARTMENT: Community Services — Neighbourhood Programs & Services PREPARER: Lori Palubeski, Manager, Program & Resource Services BUDGET IMPACT: For Council Direction STRAT PLAN: Core Service The City's Leisure Access (LA) program currently provides financial assistance to residents living on low incomes who are accessing direct City of Kitchener programs (e.g. March Break and summer camps, swimming/skating tickets, golf lessons/passes, Kitchener Market classes, older adult programming). Currently, LA funding cannot be applied to programs provided by affiliated organizations, such as Neighbourhood Association and Minor Sports groups. In an effort to provide greater flexibility in the use of LA funding, in 2018 and 2019, changes were made to allow users to access their entire annual funding allotment at any time throughout the year (previously, users were limited to spending one quarter of their annual funding per season). These changes have substantially increased LA use for camps (March break/summer) and aquatics (swim lessons/memberships/three month passes). In 2017, approximately $45,000 of subsidy was applied to these programs compared to approximately $86,000 in 2018 and a projected $195,000 for 2019. In addition to this change, as part of the 2019 budget, City Council increased the annual LA subsidy for an individual by $50 to $300 (children/youth) and $265 (adults/seniors) per year. On June 24, 2019, City Council directed staff to explore the expansion of the Leisure Access (LA) program to cover Neighbourhood Associations program fees. Programing at City of Kitchener community centres is a shared responsibility between Neighbourhood Associations (NA), the City and other community partners. In 2018, the City provided 1,200 direct programs out of our community centres while Neighbourhood Associations provided 2,200 programs (approximately 65% of total community centre programs). Many affiliated NAs already provide fee assistance to individuals living on a low income. If LA is expanded to cover NA programs, it is highly likely that these NA fee subsidy programs will no longer be offered as there would be little incentive for an NA to continue to provide this financial support when the City is already doing so. The following 14 NAs currently provide eligible residents with fee assistance ranging from discounted rates to free programming: 0-79 CITY OF KITCHENER 2020 BUDGET ISSUE PAPER Centreville Chicopee Cherry Park Country Hills Downtown Doon Pioneer Park Forest Heights North 6 Stanley Park Victoria Hills Williamsburg Huron Kingsdale Bridgeport Mill Courtland specific NAs that offer programs. When a resident requires additional fee assistance, beyond these programs, City staff work closely to access other financial community supports such as the Canadian Tire JumpStart Foundation, House of Friendship, KidSport and grant opportunities through foundations. The following chart outlines the benefits and risks associated with expanding LA to provide fee assistance to NA programming: BENEFITS RISKS NAs that have the financial ability to provide Increase the number of residents that use LA, support to residents living on a low income as it would cover more programs. will shut down their fee assistance programs, shifting costs from the user base (program revenues) to the tax base. Increase the City's financial support to the Affiliated minor sport groups will likely want specific NAs that offer programs. the City to extend LA to cover their programs (which can be much more expensive). Significant expansion of LA will require additional staff time to support applicants and users (e.g. following up with applicants to confirm information, complete applications). The program improvements made to LA in 2018 and 2019 (see Background section) have been successful in increasing program usage and expenditures significantly through an increase in the number of users accessing a higher percentage of their annual allotment. In order to fund these increases moving forward, staff have already built an additional $100,000 into the proposed 2020 budget. It is important to note that it is difficult to forecast the financial impact of expanding LA to NA programming as there is no way to forecast how usage would increase as a result. We anticipate that such a change would come at a significant cost to the City. Given the City's commitment to not turn -away any LA customer due to lack of budget, an expansion would pose a significant financial risk to the City. Recognizing that risk, based on historic usage and a comparison of how LA is accessed for direct City program, staff estimate an additional $143,000 would be required 0-80 CITY OF KITCHENER 2020 BUDGET ISSUE PAPER should Council wish to expand LA to cover NA programs — although that may be an under- estimate. Given the significant impact we are already experiencing as a result of the changes made to LA over the past two years, the fee assistance programs currently offered by many NAs, and the risks identified in the chart above, staff do not believe this is the right time to expand LA to cover NA programming. For Council direction as per Council motion —June 24, 2019. 0-81 CITY OF KITCHENER 2020 BUDGET ISSUE PAPER ISSUE: Op 06 — Supporting City Services and Growth FUND: Operating DEPARTMENT: Infrastructure Services, Development Services & Community Services PREPARER: Ryan Hagey— Director of Financial Planning BUDGET IMPACT: None (seeking approval of FTEs only) STRAT PLAN: Core Service The City employs staff to deliver services to citizens. The creation of new permanent full time equivalent positions (FTEs) requires City Council approval. The graph below shows that population growth in recent years has outpaced the growth in full time staff positions, putting additional strain on City staff. FTE per Population 0.60°/ 0.50°/ 0.40p/ 0.30p/ 0.20% 0.10% 0.0090 201= 2Cflc 2016 2017 2018 This issue paper requests the approval of FTEs, all of which are fully funded in the proposed budget, and only approval of FTEs is being sought. The positions being requested are detailed below. The number of FTEs is shown in brackets. Facilities Management Project Delivery (1) Facilities Management (FM) is currently responsible for the delivery of various types of capital projects, including State of Good Repair (SOGR) projects based on Building Condition Assessments (BCAs), new builds, energy & sustainability, and client/service driven projects. In addition to direct project delivery, FM is also responsible for supporting other corporate or divisional projects by providing oversight and/or knowledge as subject matter experts. Currently, FM has more than 50 projects scheduled for 2020, but has only one project manager and one project coordinator dedicated to project delivery and has a history of a not being able to spend its capital allocation annually due to its limited capacity to deliver projects. As such, 0-82 CITY OF KITCHENER 2020 BUDGET ISSUE PAPER capital balances regularly carry over and a time lag has been an on-going trend. Considering current project workload, it is recommended that one project delivery FTE be added to the FM complement. Without approval of an additional FTE, the ability to deliver a number of significant capital projects will likely be compromised. The associated risks with delaying projects are increasing the infrastructure deficit; not being able to meet corporate climate action plan targets; and not being able to support client/service projects, resulting in impact on programs and services, and a decline in customer service experience. Security (2) The number of security incidents has increased 122% between 2011 and 2018 while staffing levels in this area have remained unchanged. Increasing volume, along with an increasing complexity in the types of incidents encountered, is putting significant strain on the City's security staff. Examples of the increasing complexity faced by these staff include: • More physical and tactical types of incidents, involving weapons or hands-on contact • Increased risk from physical harm, verbal abuse, exposure to weapons and drugs • Arrests by Security staff are becoming more routine • Some individuals who are known to be violent and flagged as "do not approach alone Resourcing does not always allow Security staff to have a backup on some evening and weekend shifts. • Increased pressures with marginalized populations: mental health and addiction, unwanted behavior, violence, homelessness has led to increase pressures on Security FC41 *91WOM • Increased demand and desire to have events across the City (and particularly in the downtown) has placed increased pressures on Security resources and scheduling. With two additional FTEs, Security will be able provide additional weekend and weekday coverage. This will also ensure two staff are on the road, able to cover more of the city consistently and will allow for backup and assistance where needed. Development Inspections (1) Development inspectors are responsible to ensure safe communities are constructed in accordance with applicable legislation and standards. All infrastructure must be as per these standards prior to the City taking ownerships of the assets. Failure to do this will result in higher operational maintenance costs, increase risk of flooding, potential spills to sensitive water courses, and negative impacts to private property. These failures will result in increased funding from the tax base, possible increases in the utility rates, as well as the increased potential for claims against the City. In 2015, 66.0 km of right of way required inspections through new development and increased steadily to 130.5 km in 2018 (a 49.4% increase in four years). The City currently has over 80 subdivisions in the construction/maintenance phases and currently one full time and one contract inspector to address any and all issues that arise from development. The continuing 0-83 CITY OF KITCHENER 2020 BUDGET ISSUE PAPER growth in demand for development inspections necessitates making the contract position a full time position. Property Standards By-law Enforcement (1) In 2017, at the direction of City Council, the City's Internal Auditor led a comprehensive LEAN review of the property standards ability to respond to by-law complaints. That review, which was presented to City Council in March 2018 concluded that the demand for service (back in 2017) exceeded the available staffing capacity by approximately 3.75 FTEs. The number of property standards complaints has grown from 2,290 in 2015 to 3,060 in 2018 (a 34% increase in four years). This is due to growth in city population as well as a number of service improvements such as the City's 24/7 Corporate Contact Centre, online reporting, increased public education (website, social media, printed documents, community events, etc) which have all made it easier for residents to lodge complaints — increasing their expectation for a quick response from staff. The addition of one officer will help maintain appropriate response times to resident complaints. Staff will continue to monitor the need for additional enforcement officers for consideration in future years. Sustainable Urban Forest (2) In April, 2019, Council approved Kitchener's first Sustainable Urban Forest Strategy (SUFS). Alongside the Strategy, Council endorsed an iterative and phased approach to implementation, prioritizing investment in key areas highlighted within the strategy. There is no capacity within the existing staff team to advance priorities of the SUFS implementation, so two new positions have been incorporated within the 2020 budget. 1) Manager, Forestry and Natural Areas — This position will provide dedicated leadership in implementing the SUFS through coordination and alignment of existing resources as well as providing direction and oversight to risk mitigation. 2) Forestry Inspector — This role will be responsible for delivering the proactive tree inspection program, responding to customer enquiries and concerns and will support the legislative responsibility by fulfilling the function of Weed Inspector under the terms of the Weed Control Act, 1990. Without approval of these positions, the ability to deliver any progress on the SUFS will be greatly compromised. Downtown Maintenance (1) Downtown Kitchener reflects the best of the City and is the centre for activities for residents and visitors alike. It is a hub for events and activities and is a focal point for economic development for the City. Ensuring the downtown core is maintained to optimal standards is critical to supporting the range and scope of downtown experiences and helping build a vibrant economy. The current downtown maintenance efforts have lead at times to disconnected service delivery, and the existing resources are unable to provide a full scope of cover (extending seasonal coverage, hours and days of work) that is increasingly being demanded within the 0-84 CITY OF KITCHENER 2020 BUDGET ISSUE PAPER downtown area. Downtown faces increasing expectation from the community as attendance at festivals, events, and upgraded workspaces mean the core gets busier. The addition of a maintenance position will provide a dedicated year round focus, working in coordination with various teams across the City and BIA to ensure a coordinated, responsive, and proactive operational resource for items such as sanitation, street beautification, event preparation & support, and winter maintenance. Love My Hood (4) Through the 2017 budget process, existing funding and two FTEs were reprioritized to create the City's Neighbourhood Development Office (NDO). In order to keep up with the increasing workload as the program became more popular, later in 2017 two additional temporary positions were created and have supported resident -led projects since that time. These positions were funded out of the Neighbourhood Development Reserve, which is projected to be depleted by the end of 2019. In order to maintain the service -level established to support resident -led projects over the past three years, staff recommended making those two temporary FTEs permanent. Without these FTEs the City's support to resident -led projects will have to be reduced. In addition, a recent report updating Council about Love My Hood (report CSD -19-020) identified the need to convert 4 part-time Neighbourhood Liaison positions to full-time positions, which works out to two additional FTEs. Neighbourhood Liaisons serve as the single point of contact and support to residents volunteering their time to complete resident -led projects. This change will allow the City to maintain its level of service to resident -led projects (as the number of projects continues to grow) while also ensuring the Liaisons become more proactive in targeting their support to a greater diversity of resident groups. In addition to supporting resident -led projects through Love My Hood, it would be effective to have Love My Hood staff support the City's participatory budgeting should Council choose to proceed with that program. No new funding is required for these FTEs. That a total of twelve new FTEs as outlined above in the issue paper be approved. 0-85 4-j co 4-j LU M x L 4— . W O O � C.7 m 4-J W W V cn � ca a -J a -J }' O z O Ln Ln o � �4-J� N +� ._ -0 cn CSA Ln O 0 bn bn O � C.7 m a_ V cn � ca }' O z Ln Ln bn bn O � C.7 m a_ co 1 O so. N C]A m Q �, O N Q L ate-) w CITY OF KITCHENER ENTERPRISE OVERVIEW 1 YJTCH_ NF_R Operating Model/Philosophy: The Building enterprise is responsible for the administration and enforcement of the Building Code Act and Building Code. The mandate of the Building enterprise is to ensure construction within the City meets the minimum requirements as detailed in the Building Code. Services Provided: The Building enterprise provides a majority of its services to external customers for building permit issuance and on-site inspections. Building also supports the AMANDA software system and administers the final grading approvals for new low-rise residential buildings. Benchmarking: The charts below outline the total number of building permits issued and fees collected over the past 6 vears. 3000 2500 2000 1500 1000 500 C Total Building Permits Issued 2014-2019 2732 328 234193 2014 2015 2016 2017 2018 Industrial/Commercial .Institutional Residential Total Building Fee Revenues 2014-2019 $4,942 $5,000 $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 *2019 2014 2015 2016 2017 2018 *2019 ■ Industrial/Commercial Institutional Residential * 2019 — Year -To -Date (YTD) January 15T to June 30th 0-89 CITY OF KITCHENER ENTERPRISE OVERVIEW 1 Kj*R Primary Legislation: The Building enterprise is governed by the Provincial Building Code including referenced legislation such as the Planning Act, the Development Charges Act, and other construction standards. The main purpose of the Building Code is to ensure the buildings citizens work, live and play in are safe through the issuance of building permits and site inspections. Building permit revenues must only be used for the administration and enforcement of the Building Code. Customer Base: The majority of Building's customers are the private sector, and their experience in building regulations is diverse; from minimal to knowledgeable. Building's customers include single time users such as do-it-yourself homeowners, repeat homebuilders, and non-residential applicants who build 1-2 times per year. The 2019 Year -To -Date (Jan. 1 -June 30) breakdown of Building's customer base is 86% residential, 8% industrial/commercial and 6% institutional. Recent Challenges: This year, a higher number of time sensitive processes and projects impacted issued permits. For example, three major development charge changes significantly increased the demand for issued permits. The downtown development charge (DC) exemption expired on Feb. 28, 2019 and the City and Region (July 1 & Aug. 1) enacted new DC By-laws. The impact of the By-laws and higher level projects, caused additional staff pressure to issue permits before the increase. In the downtown area, not all the projects that received permits have started construction. The assumption was shortly after permit issuance, construction would start. The delay in start of construction will add staff demands to meet regulated inspections such as residential multiple occupancy inspections in late 2020. The public portal upgrade is expected to go live in the fall of 2019. The go live date could have been earlier but with other competing tasks and a busy building season, a decision to postpone to fall was selected. Recent Successes: Year -To -Date, the Building enterprise issued 1541 permits, and typically issues 2500 permits in a year. The 1541 permits is significant because of the short timeline and demonstrates how busy including overtime staff worked to meet the regulations. Some customers were demanding, in some cases unpleasant and this added pressure onto staff. The good news is we did it! The Building enterprise administered the termite pilot project for the 5th year. Tuesday Express Service was enhanced, again, where qualifying applicants could receive their DIY permit any weekday - not just Tuesday afternoons! Lastly, through ongoing and prudent financial measures including high activity levels, the Building Stabilization Reserve remains positive and sustainable over the 5 -year projection period. 0-90 �E 0 rf �u0 O O L -0 4-J N N O XMIN O E +� Q-cn N O O O V p ,V -0 +� Q ca p w ca CDLU (1) O N x p :3— �-- ca . — �E 0 CL '� O E _I_-04-) 'ca bn �, ° C E LE�, a) a) 0 0 > 0 Q ca X 0 = CU Q O cc _I_— ca — - � cn O � > � � � NO v ca O O +� Q •� ; N o E o >O •— i O0 c: E ca ca ca O O N • �C:> . — cn ate--+ 0 O co O 0 0 ' � a) a) �+ U U N Q •— fa � •— a� O .— O 4-JU Ln i Q •— .— (2) a� 4-J a� U ca O LA -0 > 0 0 0 0 11 0 MR �ri 8 8 y 8 y 10 Ci as n. 66 x 8 w a� 'L tA. 0 0 m C C C 8 8 8 8 8 8 Ci 8 8 8 S 8 S 0 0 C C C C vi m ni r-4 v► +n A x 2C4 2 N � n 2q 2 N C14 2q 2 N C4 N � � o 2q 2 N 7 q � � 2 L 2 q y � � m r - 0 a LO LO 0 LO 06 "q CY) E � q o LL C) ƒ § CD LO / q 9�3 y L L q L a q � R X CO y q _ CN q q q V o LO LO Lo / Nco 7 co . \ m ® o h ® C) c C Cl) O L V � L 2 P,CN CN � a c m � k � k V / / Lu ■ u > LO LO ƒ 9 2 2 $ CO \ y � ® q C) 2E 2 2 9 o 2 0 p-: p-: V �7 L q m g m 2 a y LO q C) CN k � tf 3 X LO k (D (D � LO q C'. 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LU � / � ® O > S � / 2 2 � D @ c = _ U) < o ■ u 2 ƒ E° # 2E 13 E % D 'E E / a k E _ % c) < O Q U / / I Ln � | 0 CITY OF KITCHENER 2020 BUDGET ISSUE PAPER ISSUE: Op 07 — Improving Scheduling of Building Inspections FUND: Operating & Capital DEPARTMENT: Development Services Department — Building Division PREPARER: Tim Benedict, Manager, Building BUDGET IMPACT: None (included in proposed budget) STRAT PLAN: Core Service Late in 2018 our industry stakeholders requested a better system of booking inspections and updates as to when the inspector will be on site. A better system would help both the development industry and do-it-yourself builders make more efficient use of their time as they would have more accurate time frames for inspections. A better system would also benefit staff as workload will be more balanced and constant, taking into account training, holidays and unplanned absenteeism. The current booking process allows for requesting inspections on a specific date and time period, but there is no limit for the number of requests on a daily basis. CLEVEST Mobile Workforce Management solutions will drive greater efficiencies from our field operations, improve responsiveness, and increase the safety of building inspectors. Kitchener Utilities purchased the CLEVEST platform in 2017/2018, and Building is proposing to leverage and expand the service for our use. CLEVEST will allow a dispatcher to optimally assign work. Once the workload is optimized, the applicant will receive notification that they are in the queue for an inspection the next day, either noting A.M. or P.M. with further updates to come once the inspector is on -route to their property. Assignments are made to the right building inspector, at the right time, and at the right location. Overall productivity of field operations will be maximized, improving customer satisfaction and regulatory compliance. Building can better serve its customers by having consistent workflow to all building inspectors while still meeting its legislative requirement to complete inspections within 48 hours after notification. Another benefit of leveraging this technology is that it will allow increased reporting on inspection activity within the City of Kitchener. The implementation of CLEVEST continues to be supported by the Waterloo Region Homebuilders Association (WRHBA) Kitchener Liaison Committee including the associated costs. The industry supports one new staff position (Dispatcher & Digital Permit Assistant) because aside from the true customer service enhancement from CLEVEST, the FTE will also improve the tracking and processing of resubmitted documents for permit issuance in a timely manner. 0-96 CITY OF KITCHENER 2020 BUDGET ISSUE PAPER All funding for CLEVEST implementation will be funded from the Building Enterprise and is included in the proposed budget. This includes operating costs of $55,300 to fund the part -year salary costs for new position (effective June 1, 2020), as well as the ongoing licensing and maintenance fees. In addition, capital costs of $96,900 are included to fund implementation costs (e.g. project management, system configuration and integration). That one Dispatcher & Digital Permit Assistant be approved to support the implementation of CLEVEST. 0-97 CITY OF KITCHENER ENTERPRISE OVERVIEW Operating Model/Philosophy: Kitchener Golf provides an affordable golf experience for all. Services Provided: 1 KjT(.TmNER Kitchener Golf operates golf properties and facilities at both Doon Valley and Rockway Golf Courses offering affordable recreational golf opportunities, as well as facilitated camps and clinics, leagues, tournament and events. Kitchener Golf facilities are open from dawn to dusk seven days a week during the golf season, which can run anytime between April -November dependent upon weather. During the off season, the facilities can be utilized for special occasions and provide a public space for winter walking and cross country skiing with the introduction of the Nordic Ski Club for the 2019-2020 winter season. Benchmarking: The chart below outlines the prices at a number of privately owned public golf courses in the area. Kitchener Golf's prices are at the low end of the spectrum. Primary Legislation: A Level Playing Field agreement signed with National Golf Course Owners Association states that municipal golf courses will pay a dividend to their municipality equal to the sum of property and income taxes. This ensures that municipal golf courses are not at an unfair advantage. Customer Base: Both courses are open to everyone. Recent Challenges: Aging infrastructure of clubhouses, golf carts, maintenance and storage building. Recent Successes: The Golf Fore Life — Golfers with Dementia program is in its second year and has expanded to 4 days a week to meet demand. We have received a tremendous amount of positive feedback and media exposure for this unique program. We are continuing to look for outside funding sources to continue to improve the program. 0-98 Kitchener Merry Hill Cambridge Puslinch Elmira Primetime $48 $40 $59 $54 $54 Off -Peak $38 $38 $49 $50 Primary Legislation: A Level Playing Field agreement signed with National Golf Course Owners Association states that municipal golf courses will pay a dividend to their municipality equal to the sum of property and income taxes. This ensures that municipal golf courses are not at an unfair advantage. Customer Base: Both courses are open to everyone. Recent Challenges: Aging infrastructure of clubhouses, golf carts, maintenance and storage building. Recent Successes: The Golf Fore Life — Golfers with Dementia program is in its second year and has expanded to 4 days a week to meet demand. We have received a tremendous amount of positive feedback and media exposure for this unique program. We are continuing to look for outside funding sources to continue to improve the program. 0-98 4- O L � O _0 E v O C: 0) LnN O O N i Va--' 0)u N C�0 O — • — Ln N .v O 3: O • — J +� tw +� 'v O •� V -0 O cn 0- 0 _0 0) LL. 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N V N V O C:) - LO LO N O N N N V O O N T O a0 � m 00 N N V 0 N � � C N j N Z � � p Q o -2 L 0 0 W > w c w 0 o O Ln W U) p � Y W - 0 w co z O C m a) in V c U " C Co M m m .0) H IZ) MJ W Q C C 'E O U 2! CITY OF KITCHENER ENTERPRISE OVERVIEW 1 KjT(.TmNER Operating Model/Philosophy: The Parking Enterprise's goal is a self- funded, financially sustainable enterprise providing accessible and convenient parking in the downtown core at a fair price. It is very important to the core as it helps the City achieve and balance its economic development growth management and transportation objectives. Services Provided: The Parking Enterprise manages and operates the City's downtown parking portfolio, which currently consists of five parking garages, 17 surface lots, on -street meters and free parking spaces (totaling 3,701 spaces). It has direct responsibility for the operation, maintenance, capital rehabilitation and fiscal management of the City's public parking infrastructure. Benchmarking: The table below outlines current prices of monthly parking for surface and garage facilities in the downtown. The City's monthly parking prices are at the high end of the spectrum. Current Parking Operators Monthly Parking Fees before HST Provider Surface Garage Major 3rd party Private Business $118.65 $125.00 City of Waterloo $118.87 $153.82 City of Kitchener - Downtown $140.35 $159.38 Primary Legislation: Not applicable. Customer Base: All garage and surface facilities are open to anyone living, working or visiting the downtown. The customer base currently includes 2,368 monthly parkers and over 500,000 daily customers per annum. The total number of monthly parkers has increased slightly year over year, but inventory has decreased in the past year with the sale of 345 King Street, the Forsyth Lot and the Legion Lot. The percentage of monthly customers over the current supply is approximately 72%. Recent Challenges: The ION launched on June 21, 2019. Although it is too soon to gauge, ION ridership will affect travel patterns in and around the downtown and will likely impact parking demand. In 2019, the City's monthly garage parking rate of $157.08 + HST ($177.50) is the highest being charged within the downtown business area. Competitors in the downtown have not followed suit with the City's aggressive parking rate increases and contribute to eroding the City's market share. The City's daily rates are very reasonable. Hourly rates in private parking garages range from $3.00 to $4.00 per hour, where City garages provide 2 hours of parking at a rate of $3.40. The City's on street meter and pay & display surface rate is $2.40 per hour. 0-104 CITY OF KITCHENER ENTERPRISE OVERVIEW 1 Kj*R Increased demand for surface parking spaces throughout the downtown and specifically in the Innovation District is forecasted. In addition, supply of surface parking spaces is being reduced as planned redevelopment of surface lots occurs. An increase to monthly surface rates and hourly rates are warranted as demand for convenient and cheaper spaces increase and inventory decreases. Staff anticipates increasing monthly parking rates in garage facilities above inflation at this time will result in more overall revenue as supply of available parking shrinks with the addition of new downtown development and as demand increases with the introduction of general trades within the development construction sites. Increased parking rates in surface lots will narrow the price gap enticing long -stay parkers to use garages. It is forecasted this will free up valuable surface spaces for short -stay customers. Increased monthly garage parking rates also influence Downtown Kitchener's competitive advantage. High parking prices can directly impact current and future economic development in the downtown. Recent Successes: The Parking Enterprise successfully launched its new Pay by Mobile App called Passport Parking on June 19th. In the first two months almost 2,000 transactions were made with the mobile app and the adoption rate is trending upward. The Parking Enterprise is forecasted to achieve net revenue better than budgeted. Expenses estimates are very close to budget. However, projected revenues are higher than budgeted due mainly to a number of short term parking arrangements with neighbouring apartments and condominiums while they complete major garage repairs. The parking stabilization reserve fund is forecasted to be in a surplus position between the established minimum and maximum benchmarks at the end of 2019 and will continue to remain in a surplus position for the remainder of the 5 year forecast. 0-105 rf ' O E N O cn O E V C: O O — quo 4 CO i z� � 0 O •— 0 N V V -C Q) C: V > =3 O 0 0 0 T'4 1 O 0 T'4 1 0 i Q 0 _0 •— c •— C C: O _0 i i O � .— ca a� +- +a O w +, _0 c: C: •m +-j w O • V — E + O i cn W C: p 4-J• • — • — rl LL cin ca O N -0 0 T'4 1 0 C_ .O 0 m co Q N�O a"' � � � b-0 O p N co N -0 O b-0 ca (3)-0 E .S ca O E V C: bn o •� •— i V .— v� }' � � ate-+ ' N�O V > i E V .— O C: ca }' - O V N bn E j w c = Q Q C: N > ~bn > N C co Q' � _0 ' N V >% = _= O+, • — — Lon N 4-j ca � > E > C: 0 Q+�-+ O u cin U 0 = LU O � � I O L v a N � 5 00 a a u � � a a a 0r a > Q L cr •� H ih L a a+ c 0 O N i O Z a t! 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Z o o 0� p Fu o o � a) Z � p ww(DQ o C 13 o W=220Lu a O W> a. o � w z 0 C4 C4 co co T- T- ' LO LO T- T- ' coco co co NN r r a) a) U) Na) LL 0 N N � N a3 d x E N W oCL � = O � L d L W a) N M L ~ > Z 01 Or-,tIX N 0) co � N � r` 00 CO C CO C, O In � a O O CO c CO C, 00 � CO r- CO N OOCO Lf (Oc N O rq M rn CO 0o co � I M r O N 0000 M I Cl) _ 0000 CO I Cl) O (D O O 00 CO ti N co N 00 N r r- (o (o (o O N (D L O N 000 � � r � co � co M O O LO � r C LL 3 3 0 U) C j Z LL a)^ YL 0 O }I LLJ _ W O Y Qo 0 W o °� U 0 o LO W p ° a+ U �O > d Y CU Z C i (A i m J ~ .= E E O Q Q o U = m CITY OF KITCHENER ENTERPRISE OVERVIEW l KT(,MNER Operating Model/Philosophy: Provide customers with safe, dependable and economical natural gas. Provide prompt, cost effective and professional services related to rental water heaters. Promote conservation, greenhouse gas reduction (GHG) and operate in an environmentally sensitive manner. Services Provided: Gas Supply: Kitchener Utilities purchases and manages the gas supply to meet customer requirements. Gas Distribution: As a natural gas distributor, Kitchener Utilities delivers natural gas to consumers. Work includes installing and replacing meters, underground pipe installation and maintenance, providing gas services to homes and business, responding to gas emergencies involving gas line hits, gas odour, carbon monoxide, and gas utility locates. Regulatory Affairs: Ensuring compliance with codes, rules and regulations imposed by government agencies and regulators. Conservation: Developing and promoting GHG reduction and conservation programs which help customers save money and conserve energy. Water Heater Rentals & Service: Supply and service water heaters on a rental basis, providing 24/7 service for repair and replacement of tanks. Benchmarking: While the population of Kitchener continues to grow, natural gas use has been declining over the past 10 years. The graph below shows that the volume of gas consumed in Kitchener has fallen from 295,733,000 m3 in 2005, to 269,755,000 m3 projected for 2019. This can be attributed to a reduction of large industrial customers, energy efficiency improvements, government policies to reduce GHG's, conservation awareness, and the unpredictability of the weather. Gas volumes - (m3) 5`ApIT" 2ffl' ,0 350,C+B6,OIX9 IOP,OOP,W3 KM= d y 1016 ro°" 161 011 011 °b 01 011 11lo CITY OF KITCHENER ENTERPRISE OVERVIEW 1 Kr R Primary Legislation: Technical Standards and Safety Act 2000 Ontario Regulation 210/01 Oil & Gas Pipeline Systems Canadian Standards Association Z662-11 Pipeline Systems Essentials Code Canadian Standards Association Z246.1-09 Security Management for Petroleum and Natural Gas Industry Systems Code Canadian Standards Association B149.1-10 Natural Gas and Propane Installation Code Ontario Regulation 212/01 Gaseous fuels Ontario Regulation 184/03/215 Fuel industry certificates Measurement Canada — Gas Meters Electricity and Gas Inspection Act Ontario Energy Board — Gas Distribution Access Rule, Demand Side Management Guidelines, Code of Conduct, Storage and Transportation Access Rule Climate Change Mitigation and Low -Carbon Economy Act, 2016, S.O. 2016, c. 7 Customer Base: Natural Gas: 71,000 Rental Water Heaters: 43,000 Recent Challenges: Even though the volume of gas consumed may be declining, the peak hourly and daily demand is increasing. This is partially due to residential customer heating demand early in the morning during the winter. In January 2019, the gas distribution system experienced the highest hourly and daily gas consumption to date. With the increase in the number of residential customers and the rise in occurrence of extreme weather patterns due to climate, change there is a requirement to increase pipeline capacity. Pipe sizes must be increased to meet the peak hourly and daily demand requirements. High demand for natural gas during peak winter day's causes pressure to drop in the pipeline network. If the pressure drops significantly, safety equipment on the meter shuts off the flow of natural gas to the home. If this occurs, staff would have to inspect and relight the gas appliances. An increase in re -development activity in the downtown core as well as Regional and City infrastructure replacement projects, has increased workload and financial requirements to the Utility. There is a funding formula for up to 50% recovery from the road authority, if the project meets a certain criteria; otherwise the utility must fund 100% of the cost of the requested relocation. In order to meet the schedule requirements of the Region of Waterloo, the City, and the developers, additional staffing was required to provide design and inspection services. Customer driven projects, such as installation of gas piping in subdivisions are funded 100% by the utility and placing pressure on the capital budget. Government funding is no longer available for residential energy efficiency upgrades and this is the first time in approximately 10 years that funding has not been available. Homeowners may be reluctant to invest in energy efficiency measures without rebates and in turn, this may impact the community's Climate Action Plan to achieve the 2050 GHG reduction target. CITY OF KITCHENER ENTERPRISE OVERVIEW Recent Successes: 1 Kr R The implementation of the new meter inventory management system will be launched in November 2019. The new system will improve the management of meters, and increase administrative efficiencies as new meters will be directly scanned in and out of the database reducing data entry. As a result of the government funding no longer being available for residential customers, Kitchener Utilities offered a $250 on -bill credit to upgrade existing furnaces to a higher efficiency model. The program was successful and exceeded the program participation target only within a four month program offering. qT T'4 T'4 1 O 0 0 co O CL CL co Ln T'4 T'4 1 O ro O (3) (3) a--� _0 . 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M r-I M 00 00 M M M p0 N 00 Ol M N N r-I r-I -a O N N N co r, M r-I M O 00 O1 O1 O O -a Ol M N 1:3- N M Ln M Ln Ln Ln M Pt W I� -1 r-I O1 � M M }0)� `1 O1 r-I rl r-I M N 1:3- r-I r-I a) O N M N a O O1 Ol O O1 -1 N M O1 O O M 00 LA N M N O O1 M Ln Ln awl M O1 O1 O 00 O r-I M 00 M M Ln p0 rl 00 O N N N N r-I r-I 'a O N M .r N CG v v > O O Laj > OJ > O i O N y Q ate+ Q �O to N i 1 m W X O O L 7 7 0 Vaj m 41 C � i i O C QJ w 0 >M L N o aj = E E > LU CL v U c U C: U C: N > O L ai `II L m 4J 4% 0 Y IB IB Y — m CO m —1 Z a ° v LU UO E E v v > E Ln > i E a Q a Q O m= W al >Q O C fD fD (7 Z * 0 Q 0 U C7 C7 CITY OF KITCHENER 2020 BUDGET ISSUE PAPER ISSUE: Op 08 Maintaining Gas Meter Infrastructure FUND: Operating DEPARTMENT: Infrastructure Services — Utilities PREPARER: Peter Pavlinich — Manager Gas Meters & Regulator BUDGET IMPACT: None (included in proposed budget) STRAT PLAN: Core Service Kitchener Utilities' Gas Measurement and Service section is responsible for installation of new services and meters, maintenance of the gas regulator stations, inspection & maintenance and repair of existing meters/regulators to ensure compliance with TSSA and Measurements Canada. The increase in the number of gas meters and the capacity demand on the three district regulator stations that supply gas to the entire city must be operated, adjusted, and maintained in proper working condition. To perform this work, a gas fitter license is required. The demand for natural gas service has increased over the past several years. With the additional growth, there is an immediate need to install new meters and regulators. In addition, there is a continued requirement for inspection, maintenance and repair of existing meters/regulators to ensure they are functioning safely and are within the accuracy tolerance for billing purposes. Kitchener Utilities, Gas & Water (KU) must work within the required standards set out in the Canadian Standards Association as well as Measurement Canada. The trend over the last few years is an increase in multi -residential developments with a need for multi meter manifolds. The manifolds could include retrofitting a single detached home into a duplex or for a multi -family residential customer. These banks of individual meters require a custom design and are time consuming to install and test. KU has received the highest volume of applications in the fall of 2019 and already exceeded 2018's numbers. New high-rise developments in the downtown core and other areas of the city require large meters installed which are labour intensive. In addition, some existing apartment buildings are installing natural gas generators. In most instances, these generators require the meter to be replaced. The chart below illustrates the large and multi -metering requirements since 2012. 0-123 160 Ln 140 a) 120 100 a� Z 80 4- 0 a60 ) M E 40 3 Z 20 T CITY OF KITCHENER 2020 BUDGET ISSUE PAPER New Meter Installs - Large Meters and Multi -Metering 2012 2013 2014 2015 2016 2017 2018 2019 (Jan - Oct) Year Large Meters ■ Meter Manifolds One additional FTE with a gas fitter license is required to ensure staff can maintain all types of meters and keep up with the growing number of meters that require maintenance on the natural gas system, as the community continues to grow. Increasing the complement of front line staff will allow KU to be able to adhere to its legal requirements to inspect, maintain and replace gas meters and regulators in a timely manner, while continuing to ensure a safe and accurate billing of natural gas to the citizens of Kitchener. Ensuring the accuracy and safety of the gas meter, and improving responsive to service requests associated with gas meter and regulators installation and servicing are key components of this position. Funding of $127,000 has been included in the proposed natural gas budget to fund this additional position. That one Gas Meter and Regulator FTE be approved. 0-124 Ln N ,-I O t�0 bn N +-+ U t�0 • v i a- S .� i o N V cn ,rho ca �, bm o �f:Z'l� �o s cn +� O • - o cNn +-j `0 o O +-' U > V) i O OC N — ca CU cno oeS m � 2Q) Ln N ,-I O 1 CL U) m Q 0 dd .a u L I O N 74 Increasing risk of infrastructure failure ' O 0 O- U U) 4— O p U N 0 CO m 4-1 C E m U Q} O -0-0 .! (� CY) C; j C �' U a) 0 :3_O L A.-• E _Q L E Z I L O O N � -0 i CO O s N a)O E O RJ -20O CO Cn UCO CO U O O � L a)CO a) O N • - 0 r 0 E N 4 O N 04 C:MO N O N N • �C 0 r- }� �C 0 N }' In N r r cn L O Cz O m W _art) 3_..L O .� VJ `V + M E rate! VJ CL M E CO ` • O O • ' CO LO r ` O (6 O • (n N N V) � N qt O(� OM O Om O O't L O CU U N L— O U N L— O U N Cn U) U) (7 co N ,-I O V � m O U O o -1-j CL -1-' O � O cn .O N O L � � O � U Q) O N O N O Q O L- CL 4-j - CL4-j -0 (3) C: b-0 ,4-j o� o � N C 4e 00 O �p N •— • — cn _0 •- Q > V V Q •� I I 0 F.% O R4 F.% 0 0 0 0 Ln O L , l6 .D O lD m O Ln O Ca i O N r--1 O c N co CL O CL a--� w O O E V W E V •— w O O •� b.0 •i E O I 0 • • 0 0 0 0 o O + 14 O M O 0 -0 -0 i N V O O U 0 0 Ln i 0 I O CITY OF KITCHENER ENTERPRISE OVERVIEW 1 KTCHENER Operating Model/Philosophy: Provide customers with quality, dependable, and economical distribution of water. Promote conservation and operate in an environmentally sensitive manner. Services Provided: Water Distribution: Monitoring, installing and repairing the network of water mains, meters and services to ensure a reliable and safe supply of water. Conservation: Promoting conservation programs, which help customers reduce the amount of water used which save both money and conserves energy. Benchmarking: While the population of Kitchener continues to grow, water use had been declining over a ten- year period; however, in the last two years the trend is now increasing. The graph below shows that the amount of water metered and billed by the City of Kitchener. Flows have been decreasing since 2005 but increased in 2018 largely due to hotter weather compared to 2017. Water supply demand forecasts indicated that 2018 would be the year that population demand would outpace water conservation measures. The consumption may fluctuate around this volume depending on weather until population demand clearly exceeds conservation measures. 25,000, 000 20, 000, 000 15,000,000 10,000,000 5,000,000 0 Metered Water (M3) Oh O<° 01 O'b O� y0 �y yl y� y0yh ti� til y'b 1 ,LO ,ti0 ,y0 ,y0 ,y0 ,y0 ,LO ,LO ,LO ,ti0 ,y0 ,y0 ,y0 ,LO �Oti Year 0-132 CITY OF KITCHENER ENTERPRISE OVERVIEW 1 KjTcFW NF.R Primary Legislation: Safe Drinking Water Act, 2002. Ontario Regulation 170/03 Drinking Water Systems Ontario Regulation 128/04 Certification of Drinking Water System Operator and Water Quality Analysis Ontario Regulation 169/03 Ontario Drinking Water Quality Standards Ontario Regulation 188/07 Licensing of Municipal Drinking Water Systems Customer Base: Water: 68,000 Recent Challenges: KU licensed staff must be present to witness all cut and caps and all final connections to ensure that the drinking water system is not contaminated. In 2018, this additional workload resulted in 2000-2500 extra hours, with 2019 trending slightly higher. Work is scheduled within 48 hours of contractor requests relating to reconstruction and new construction work. Staff accommodate contractor's schedules to assist in the timely completion of projects. Balancing the demand from contractor related work with regular maintenance continues to be a challenge. The Region of Waterloo's Strange Street Water Pumping station was scheduled to be offline starting in spring 2019 for installation of a manganese treatment system, which will decrease discoloured water issues in the surrounding area. The upgrades have been delayed to fall 2019, which has resulted in continuing discoloured water complaints in the surrounding areas. Staff perform watermain flushing in the area to minimize the impact of discolured water to residents. Upon completion of the upgrades in 2020, it is anticipated that discoloured water calls and watermain flushing in the area will decrease. Recent Successes: The Municipal Drinking Water License and Drinking Water Works Permit were renewed in May 2019 allowing for the continued operation of the water distribution system. The Drinking Water Quality Management System was re -endorsed by Council in 2019. An external audit in August 2019 revealed no -non conformances and recommended re -accreditation for the City of Kitchener as an Operating Authority. The Ministry of Environment, Conservation and Parks inspection in early 2019 did not identify any issues of non-compliance. The 2019 watermain cleaning program commenced in September 2019 and consists of approximately 113km of watermain and 870 valves. The 2019 area includes the area surrounding the Strange Street Water Pumping station. The utility continues to replace broken valves to improve system reliability. The Water Meter Shop went live with a Meter Inventory Management System in March 2019. The mobile solution (tablets forfield staff) eliminates the paperwork and data entry and improves accuracy and process completion. 0-133 CITY OF KITCHENER ENTERPRISE OVERVIEW The water infrastructure program has assisted to increase customer awareness and understanding for infrastructure investment needs and how they contribute to building a strong and reliable water system for our community. 1 Kj*R 0-134 Ln M ,-I O O -0 •� (3) V fB b-0 V _0 co }, > O N — O ca • — � � O +, cn -0 — `� O+, .b --o v -0 C 3: � O ca O o O }' — — ca • N +� _0 N ca bn -0 O _0 v O .> O p U Q U u z O 0 0 O i O � N a- ca N Ln O > > • • N N a -- p O O •- LL. 0 0--a 3: 0 0 O a N w � O lD O N vi M vi O O o�Ln y u_ a � s � N O O O � r •� u L Q O O U C U O m a C -4 u7 O O O O O O O O O O O O t/f O O O O O O O O O O O O O O O O O O co M ,-I U a+ m lfl Ol o Il 'zT N ci Il Ol Ol M Ol O N 00 ci l0 n \ l A N O O n l0 00 c -I -4 lfl c -I M -4 a N O1 M OOCU O O O 00 N O Ln Cl c -I � -4 Lfl T O a) aNJ O I� l Ln N M Ln - Ln Ln oo ci a -I00 Lr v1 N C 3 N Ln N M c -I c -I M N m o0 M Ln o Il Ol to O Ln N n ci I, Ln M Qt O l0 W O O ool oo \ 4J Ln I, 00 N Ol c -I O c -I M Tr zT Ol 'zT N W N m Q0 M0) O O O O C N O N M L!1 00 rn 00 L!1 T Ln N � N � ze M O1 n ci 0) a ci c -I a-4 00 L!1 O Ct Ln N C 3 N Ln N N c -I c -I N N m al 00 ci o Il 00 N lfl lfl N N 00 N ci a-4 zT l0 O O O \ 4J lfl Ln c -I ci 00 I, l o0 Ln -:r � N � N 0) a N N4 M r4 LO O O O O C O0 40 N � 'C 00 � O l � N l0 ci N ci n O Ct C O ci r4 lfl L!1 N ci M I4 c -I a -I 00 L!1 N C 3 N 3 L!1 N N ci ci N N m Ol M lfl o n L!1 O CKl M O O N O lO 00 a) m ci M O S O O\ 00 lO N lfl n O N l CT) 00 00 M00 ci N r :TV M � Ln N O O O O C GSC i„ N ll L!1 c-IzT zT O zT Ol rl W C a O l0 Tr Ln -zT O Ct C 'a O al M Ln Ln c -I c -I M Lr n N v a -I 00 Lr ci C 3 N 'zT N N c -I ci N N m lfl lfl O o CKl N lfl N l0 l0 Ln lfl N N a) 00 O ci O a -I O Oi \ i! CU 00 c I, l0 l0 ci 00 O1 O1 Trn ci M Ln m ci Ln M M O O O O 40 N Ln Ln O C5 zT Ln M Ln -zT N ci r, N ci ci O Ln -zT N Cl c 'a O n M ze Ln O O M N v N 00 L6 3 N 'zT N N c -I ci N N Ln 'a o0 M Ln o O l0 O1 00 M N N Ln N I, Ln n O O 00 N O yN� `j -4 lfl 00 � N N M lO O1 M0 � Ln 00 I, l0 O1 l0 N 0) N 0) N O1 M O1 n 00 1, N 00 0000 Ln oo O 00 N I N Il N O Lr M N cr cr N N M c -I N cr I� N 'zT N N N N a �. Ln O Ln o Ln ci Ol 00 00 M M Ln M Ol N 00 ci O l0 W O O ool oo \ C I� O n lfl Ln O1 00 l0 � 00 00 O1 00 l0 Tr 00 m O M M O O O O 040 'aO 00 'zT lc N N O1 N zT 00 cr n cr O1 N l0 N M M Ln I, 0000 n N v1 Ct C rV C 3 N 'zT N N N N m u v v o O '� O O ci C 7 � ai O j C YCU C aj aJ U i L CU > > C O p48O p O CIO > y fL 0 o p ° m W oo v — o O ai W L N E O Ln }�+ c 6 O Ln .0+ N O or +-' — LL p (U v 7 ai LU W O — C i i C m V1 76 O1 N V3LU 1 LU (U N Z ai N u t6 y s . c6 }+ C N= OC W £ O E L W d W OC L2 — L2 O. E U C - L N s LL U C O L }' N x T U O kh W c6 ai N U C u C W m U N U C O u C C{ y 0 Z O1 N C U X LU m ai m — (6 `� N m L 0 m 0- F Ow > 60 O O — \_ CL Z CO ^ 6 rn rn OC CO = c6 co 6 ai L Z° LL v s v o v O 6n a m E E H 6n sz Y m E E Q w a O Z w w L °s ° E E O L ago ££ C C L p v or L LW c a •� F .0 F vW L V1 v , N x X J .... -6 -6 .� _.X O x N.N Z t6 O N LJ U +-' Z f2 i i `� cu �n — J CL 'O -O � H f2 C -O -O p r6 r6 r i O O W ] N C7 N O O W a O F F OC s= +' L i y a O Q Q u O Q Q J u w k OWC (D Z 0 Ln o 0 0 X CITY OF KITCHENER 2020 BUDGET ISSUE PAPER ISSUE: Op 09 Maintaining Water & Stormwater Infrastructure FUND: Operating DEPARTMENT: Infrastructure Services — Sanitary and Stormwater Utilities & Gas and Water Utilities PREPARER: Leah Walter, Manager, Maintenance and Operations Angela Mick, Manager, Quality Management & Water Programs BUDGET IMPACT: None (included in proposed budget) STRAT PLAN: Core Service Council endorsed the Water Infrastructure Program (WIP) and five-year rate forecast at a strategic session on September 25, 2017. As a component of WIP, a maintenance program review was conducted for the water, stormwater, and sanitary utilities. The maintenance program review considered regulatory requirements, industry best practices, and asset management principles and associated master plans (e.g. Integrated Stormwater Master Plan). WIP identified that the stormwater utility has a maintenance gap of $2.OM and the water utility a maintenance gap of $1.3M. The sanitary utility review did not identify a maintenance funding gap however included recommendations to optimize, enhance and coordinate the various sanitary maintenance programs. Council endorsed the phase-in of the maintenance gap over a 5 -year timeframe to allow time for programs to be developed and resourced and to align with the 5 -year rate forecast. Water Kitchener Utilities is responsible for water distribution maintenance on 890 km of distribution watermains, 4,400 fire hydrants, 7,500 valves, and over 60,000 services. In order to respond to both reactive and preventative maintenance requirements of the water distribution system, staff have reviewed current operations and recommend two additional staff resources to maintain the water distribution system. The Utilities Distribution Technician (UDT) is a front line position that holds licenses to work on the water and gas distribution system. The UDT is responsible for all aspects of the repair and maintenance of the water distribution system. This includes repairing watermain breaks, flushing, valve replacements, water quality testing, and other preventative maintenance activities. In addition, they must be present to witness all tie-ins to the water distribution system by third parties to ensure the drinking water system is not contaminated. The additional UDTs will assist in meeting the demands of these programs and allow operational activities to be completed in accordance with the required maintenance schedule. Stormwater The 2020 stormwater maintenance program funding allocation is for sediment management and catchbasin/manhole casting repairs. This funding will allow for contracted services to be retained to work on completing a backlog of work orders related to storm castings which have not been completed due to lack of funding a resources to complete the work. The funding 0-140 CITY OF KITCHENER 2020 BUDGET ISSUE PAPER allocated to sediment management will allow for the operations team to cover the labour and equipment costs of this program, taking this pressure off of the capital program which was used to fund this work in past years. The Utility Planning & Programming group will continue to support operations in planning the work and also coordinating the disposal of the sediment with their capital budget. Table 1 shows a revision to the Total Financial Gap for Watercourses and Sediment Management to reflect this change. The improvements to these programs lead to better performance of the storm water management facilities, regulatory compliance, reduced risk of litigation and improved service to customers. Table 1 provides a summary of the stormwater maintenance program gaps and proposed 2020 funding allocations. Table 1 (stormwater) and 2 (water) provides a summary of previous investments and current allocation of maintenance funding to address the gaps identified through the Water Infrastructure Program. As previously endorsed by Council, the $400,000 for stormwater maintenance represents the year 3 funding allocation of the 5 -year program phase-in. No additional operating funding is being requested for the water utility in 2020 however two FTEs are requested to address the needs of the maintenance programs. Total funding of $254,000 has been included in the proposed Water ($178,000) and Gas ($76,000) budgets for the Utilities Distribution Technician positions. That the two (2) Utilities Distribution Technician positions be approved. 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O -Ln 14 -Ln•v Lr _ t/? u ii ii � � O H c L C aJ aJ aJ ra bA i a O +H+ i G1 m 0) U N L N r6 (u v 4J 0 NN V) C ra W ra C O r6 > O OC 0 (n O L O � a1 + CO LJ ra Lc 4- u r6 O N aJ L ll0 r6 a L O O U ra c a v — r6 s O N ra v C -0L ra a N �j i aJ > OL Li L 4- -0 C ra cn Q1 U QJ LO N E W ra E°N r6 O +' Y O —_ � +' (U = cn LU N (U_ E v O L N U C N O O L V iE a--� N r6 C O LJ '+, Q : L N E -0 L N 4 v N ra E � ' O w +' L +.i ra L (U N u C _N OU ra N O C OU N C C N Q +� U +� '� L O +' E j �n +� C c O p U O V — r6 +� C O Q 4- O L cu E C 'n ra LJ U Oro _ rro C ELo r6 O LC N Y L +� C N L (u N L Q1 C _ > MC 4J +' O + aJ a N i r6 b0 +1 L ra O .ro �- C L p O a1 ms --L v u QJ ro -0 O U O (U in E O O L N ra (u U Q C 4J +, N U QJ U N p 4J r O p ',n +, O L O Lci to v L C6 c (U p +' +, O (U N O U N O ra N c ra E C C O L p qA N L 4J C O W O ro E E ra + (a ai > >- au L N a1 E to•� a C r6 C a v a r6 co C Q� C E �_ ra Q " O L C O N c O C L O U U ra O L C O U ra +' O Z (La " a >- Q = O C C (u – C6 +' ra O a C x CITY OF KITCHENER ENTERPRISE OVERVIEW 1 KjT(.TmNER Operating Model/Philosophy: The Sanitary Sewer utility performs the service of removing wastewater generated in the city in an efficient, cost effective, and environmentally responsible manner. The Sanitary Sewer utility also ensures this is done in compliance with legislative and regulatory requirements. Services Provided: The Sanitary Sewer utility performs a wide range of activities and programs that together supports the provision of safe and reliable collection of raw sewage generated within Kitchener and neighbouring municipalities, and its subsequent conveyance through 834 kilometers of pipes and 22 pumping stations to a Regional wastewater treatment facility, where the City pays the Region for ultimate treatment and disposal. Such activities and programs include: • The Water Infrastructure Program (WIP) — Previously known as AIRP • Pumping station rehabilitation and replacement • The trenchless sewer rehabilitation program • Trunk sewer replacement • Sewer Mains & Lateral Repairs • Pumping station maintenance • Flow monitoring program • Closed Circuit Television (CCTV) inspection program • Sewer Flushing programs • Year Round On -Call Staff (Emergency Response) • Service connection blockage clearing • Hydraulic modeling • Supervisory Control and Data Acquisition (SCADA) for pumping stations Benchmarking: The Utility is participating in the National Water and Wastewater Benchmarking Initiative which looks at key performance indicators for municipalities across the country. Data for the current year is being gathered and will be processed to compare to previous years. Primary Legislation: • Clean Water Act • Environmental Assessment Act • Ontario Water Resources Act • Canadian Environmental Protection Act, etc. Customer Base: The owners, residents, and users of nearly all facilities in the city are generators of raw sewage. This would include nearly every residential, and every significant commercial, industrial, and institutional building in the city. In total, this equates to over 65,000 customers billed for this service. 0-144 CITY OF KITCHENER ENTERPRISE OVERVIEW Recent Challenges: 1 KTCHENER Operational: Significant amounts of Kitchener's sanitary assets have reached, or are nearing, the end of their lifecycle. As these assets deteriorate, the need for ongoing, regular maintenance increases, resulting in a requirement for more funding and resources for preventative and corrective maintenance. The recently approved sanitary utility rate increase will provide funding for maintenance and replacement of sanitary infrastructure, thus contributing to reduced risk to the utility. Budgetary: (1) Construction costs for replacement and rehabilitation of infrastructure from 2004 to 2017 were significantly greater than the CPI rate of inflation. (2) Unit costs of sewage processing have been, and are expected to, increase at rates well above the rate of inflation (these costs are controlled by the Region). Recent Successes: Capital Works: Furthering the goals of the Water Infrastructure Program through the replacement of sanitary sewer mains and services: by the end of 2019, 5.7 kilometers of sewer main replacement will be completed along with 550 metres of sewer main rehabilitation. Capital Works: (1) Replacement of the King St sewage pumping station (SPS) and forcemains is complete. The completion of this work resulted in the lifting of a development freeze in early 2019 that has existed in this area for over a decade. (2) Construction of a new Sewage Pumping Station servicing New Dundee is now complete thereby permitting the development of the Doon South Community Plan area. (3) The design of the Middle Strasburg Trunk Sanitary Sewer is now complete and awaiting 2020 construction, which will provide an outlet for growth in south-west Kitchener. Analysis: (1) Development of a risk analysis software tool for use in the enhanced prioritization of remediation work to the sanitary sewer network. (2) Development of a flow analysis tool for use in analyzing the capacity of individual pipe sections within the sanitary sewer network for both existing and future proposed flows. Administration: (1) Review of properties serviced by municipal water but sewer exempt. (2) Analysis to confirm the current residential sewage flow that should be used for design purposes. 0-145 V Ca E 0-0 Ln Ln 0 ps,� 0 qT T-4 1 O 4- 0 W � rf O +� E ca C�0 C -UO • Ln a� V Ca E 0-0 Ln Ln 0 ps,� 0 qT T-4 1 O 4--j Q) L CL a-�+ O �0 ( O . _ . _ 4-J� C�UO > co O (3) 4-J 4 cn c� - i O 4-J >C: CL p O u p MO 4-J N i V � � cin •N '� '� � O � � z qT T'4 1 O i 0 0 1 O C: ^, � � V . - a -J V Ln w 0) O O -0 ,> � ca � quo u � X � 'N O 0 0 1 O V m qT T'4 u 8 8 8 8 8 8 8 0 0 o a a c 0 8 8 8 8 8 8 8 o 6 M o 0 t4 if V m qT T'4 u M N 3 m O M N 3 m +' N M N m O 3 N m +' O M N 3 m v U N w 0 L a � Q 0000 LrQ 01 0 r r � n m n Ll O u (V C n 00 n M a of r In n m r � r In n 11 1 \4 It 1 \4 It � W m m m f c -I N Ln 0) r m m u ri N vi oo r ri W r` 01 O u o umiu�io00om"a ri N ui r; r o u�i�o`�omr`r ri N Ln W n ci ri 0 N N 00 a m 0 O O 000 1 u c -I N Ln Ul n 00 O M N rI Ln m N O 01 m N (v o mmr`Inn ri ri r to ri 01 I t0 W � I A W N ri ci ci ci W n m i M m co r; Ln 0 I Ol I lot N 0�-I Ln 0 o I m o o ri H H H 1©�lmti N 00 � ci � U) 0 N N 00 a m 0 r; o 0 a> 00 O M N Lrt m ci m I W W W 0) 00 00 N N N d• L m 0000 to to m O 0 It u1 O O1 u1 to O Ln H M rl Ul i N l �mn n mr,r� 1©�lmti N 00 N ci � U) a a N 00 a 0 00 r; o 0 a> 00 O M N Lrt m ci m I W W W 0) 00 00 N N N d• L m 0 N m O 0 It u1 O O1 u1 to O Ln H M rl Ul i N l l a u1 00 O00 Ln Ln m Ln Ln ci N O O O 0 rr l0 N Ln m o m 00 o � m m m 1 00 N06 r 00 m a r r -I 0u m N 0 0 r 0 0 0 0 O N 0000 r, ,1 r• O1 W m m 0 � m r, 0 0 0 0 O N O O O n r N O1 v d•m0 � m r 0 0 0 0 O N O O O u m o v a a o � m r, 0 0 0 0 O N O O O r ,1 N O1 O Lr d• d• 0 � m r, 0 0 0 0 ON O O N r, m O� m r N m m N � m ► ► °o m N N ri m ri m y Lrt W 01 o ci 00 Lrt W m W a a N 00 a 0 00 00 00 0 a> 00 O M N Lrt m ci m I W W W 0) ci ci m N m M O r` M m M q q N N I 00 N m N W d• L m 0 N m O 0 It u1 O O1 u1 3 Ln H M rl Ul i N l l a u1 00 c -I m 00 0 0 m Ln m N ci N m )u M m u u al QJ L L 0 0 W L > L 0 0 0i _ '6-6 6 c'1 c 0 :5 :5 c - > ai U 7 u QJ N v aJ c aJ aJ QJ a.+ �n n N n •L L L - - m- - m L w >> ai bA aJ L 0 0 aJ *Jm C 0- w w 0 0 aJ Q > m m o K mz N Q)WC X o o X o O N aJ W m t 0+ E N O N v v N 4-1 N O N N u- v m N o w v+° W > �c LL 0 0 c L uWf Z d -- m m u3i N to y cc a1 aJ 0> m m E Z a1 aJ 0> L m voo m 3 r '+ E aJ LU b0 v v Ul 41 a.+ c a s c ar E o: W ,n v v ar E r r � W u o +1 v ai E r N Q r � 3 E X m 00 O v m m m a N W U m L+ u C W U L u m- aJ ++ C U U [ C = 0 W u 3 +� ° r v m e aJ 0 0 W L m O m m CO ai cc m +1 (A aJ m v0 m + w O L aJ ~> 2 i a% L m +1 +� � .. L Z 0 m L ro m E W m Q L f0 m E E m m U Z In Q d 0 o W Z L C L L N N aJ aJ 0 y 3 41 L c b0 m +�•+ C L 00 c 3 E Vf W m +Q) U r — c 3 E C C C --- Lu aJ m� d Q in LU .S +� C C W Q N c E X cc J c 'N 'E a a a X LA LA LA 3 0 Z v 0 L� J t to W+•,Z 'Q) 3 0 Cf0m a, � c m JOQQu aJ �OQ�Qu aJ am ami ami OW In U Ui O W Q C In m m u u u !U/) d 0 O LU C_X cc (D C W 01 > Z �F 0 M Q U - - - 0 0 0 O Ln X CITY OF KITCHENER ENTERPRISE OVERVIEW 1 KjT(.TmNER Operating Model/Philosophy: The Stormwater utility performs the service of treating and controlling stormwater generated in the city in an efficient, cost effective and environmentally responsible manner to comply with legislative and regulatory requirements. Services Provided: The utility provides the necessary funding to operate, maintain, rehabilitate, replace and build stormwater infrastructure across the city. The stormwater system is comprised of approximately 139 kilometers of open watercourses in 20 subwatersheds, 722 kilometers of storm sewers, over 24,300 manholes and catch basins, 65 hydrodynamic separators, and 101 constructed stormwater management facilities (SWMFs). Services include capital projects identified by the Integrated Stormwater Management Master Plan (2016) to address portions of the 75% of the City which have no stormwater management controls. Other projects are required to address flooding in various parts of the City. In addition to discreet capital projects, annual programs are established to address recurring activities. These include: • Stormwater Management (SWM) Monitoring Program • Sediment Management Program • Watercourse Improvement Program • SWM Facility Retrofit Program • Drainage Improvement Program • Hydraulic and hydrological modelling • SWM Infrastructure Implementation Program • Water Infrastructure Program (WIP) • Low Impact Development (LID) in WIP Projects • Sewer Mains, Catchbasin & Manhole Maintenance and Repair • Watercourse/Bridge/Culvert Maintenance and Repair • SWMF Maintenance & Sediment Removal • Catchbasin Cleaning Program • Street Sweeping • Leaf Pickup • Spills Response Finally, the utility also funds a credit program to provide an incentive to private property owners to control stormwater at the source where it falls on private property. Benchmarking: The stormwater utility finalized the Integrated Stormwater Management Master Plan (ISWM- MP) to replace the 2001 SWM Policy 1-1135 with policy MUN-UTI-2003. The master plan establishes goals and objectives as well as provides direction to the utility until the year 2030. There is an annual process of measuring progress against planned progress in the ISWM-MP. Additionally, the utility is participating in the National Water and Wastewater Benchmarking Initiative, which looks at key performance indicators for municipalities across the country. Data is gathered annually and is processed to compare results to previous years. CITY OF KITCHENER ENTERPRISE OVERVIEW Primary Legislation: 1 Kj*R There is existing legislation that dictates certain requirements for stormwater management. The key pieces of legislation include: • Clean Water Act, • Canadian Environmental Protection • Environmental Assessment Act, Act, • Ontario Water Resources Act, • Canadian Fisheries Act, etc. Customer Base: All owners of properties in the city that have impervious area are generators of runoff during precipitation events. There are over 70,000 properties in the city that are billed for the stormwater management service based on the amount of their impervious area. Recent Challenges: Operational: Storm events are becoming more severe and intense which has a direct impact to the entire stormwater system, by either causing damage to or exceeding the capacity of existing infrastructure in an unpredictable manner. Legislative: The new legislation for the Sewer Safety Inspections process has resulted in an increased level of service that is now required for the locating of utilities prior to construction activities taking place. Environmental permits for capital projects can cause project delays. Budgetary: (1) There is an existing backlog of legacy projects identified in previous stormwater audits that can only be completed as funding becomes available. (2) Operations and maintenance requirements necessary to maintain the current service levels and meet legislative requirements versus the current budget allocations for such activities. This does not take into consideration the need for additional budget to facilitate the transition to a more preventative maintenance approach. (3) Alternative strategies are being examined to enhance the lifecycle of stormwater infrastructure to help address current and future deficits. Recent Successes: Operations and Maintenance: Operations staff anticipate removing over 4,000 metric tons of sediment from stormwater facilities in 2019 to improve water quality. With the work in 2019, a total of 55 out of 101 stormwater ponds will have been clean over the last several years. Capital Works: (1) The construction of SWM Facility 21 on Penelope Dr, the Kolb Creek culvert replacement, Idlewood Creek Restoration and Walter Bean Trail Link as well as sediment removal from the Victoria Park forebay has been completed in 2019. Grant Funding: The City applied to the federal Disaster Mitigation and Adaptation Fund to receive funding for 40% of the cost of projects identified in the ISWM-MP as well as other studies completed in the past 5 years by the City. The total cost of the projects included in the application is $125M. The federal government announced that the City of Kitchener was successful in the application and will receive almost $50M of funding through the year 2028. 0-152 O O � , _0 � _N � O O � O � C�0 V • i p OO �-jE - N O— O E Ln O O -v)- • - p 4- m-0 m-0 V a) O O E ca IN aj EE O v O N � Ln — O 0) rl O N 0 PC n 0 qT Ln T'4 1 O 0 4A s" 0 ^0 W V CL X N a -j Ln Ln T'4 1 O X W V} Ln T'4 u Gl N l0 01 Ln N W m r1 O W W N r ci r l0 O 0) RT Lf) 't o o �u�i Oo O 01 Ln Ln l0 m 'T m rl m ei rl 0) rl N m l0 m r N M N Ln W t W l0 0 O W ' 0) O to OD l0 O V1 V1 N 7 Ln l0 N Ln t` 01 l0 rj N tel OO 0 m O O m N N N N y N m r1 'T m m r 0) 0) N m rl ci r ci N rl �t 0 RT N 't 0 0 0 Oo O 'T m r 0) r1 r1 11 00 11 It m m m m N 0) 0 0) r N O O to M N 0 00 'T m 0 0 0 m r m rl rl t 00 rl 0) 't l0 l0 O O to N L71 l0 01 N N tel OO t0 ID O O m N N N N Gl N r O r l0 0) N T 00 r l0 rl ci 00 ci N r Lf) i RT Lf) 0 0 0 Oo O l0 01 Ln t l0 00 00 Ln O t ci r1 O r1 r1 m r r N O O u1 M N c -I r 0) m m Ln Ln O 01 W rl r1 t r c -I 00 m l0 O o N N 3 m m N Lri Lri of m N m 00 ID O O m N N N N ++ 0) N r1 O m m r1 r1 00 N m 01 m m 0 00 Oo r to 't0 0 0 OA O r Ln m0 Ln 'T Ln l0 l0 O l0 N l0 r1 r, r to r N O O u1 M N r r Ln m r Ln Ln W t l0 n ci N l0 O O n N NN N l0 r,: N m 00 l0 o O O m N N y N r1 Ln l0 Ln 'T W O m Ln Ln rl r1 m rl m m r r1 0) Ln N It 0 0 0 r r1 00 Ln l0 rm 1 N 01 00 O O O O r1 N a r r r r N O O to M N r c -I N r1 Ln Ln r1 1 O ei rl t Ln r1 lD O O c -I rl l0 O O to N 3 O rl N Ize rl l0 rl N tel rl rl 00 0 to O O m N N N N aj Orl c -I O rl Ln l0 rl l0 W Ln m m 0 r 00 r LD l m Ln RT RT O Ln LD m O N N N LD r m Ln m O m }+ `j N ci N l0 00 r 0) 'T 'T It N 11 IS IS N r, Ln 0) OO rl t•i ei I, N Qf Ol Ol rl m r Ln 01 06 l0 Oci rl rl N a QL rl m 0) N Ln r1 r1 O m 01 01 m m O m Ln oo o t 00 ci 0) m O 40 LD r, 'T 'T l0 rl 0) l0 m0 m m m m -- 0) H r N N a m O O to M N t rl l0 W 01 r Ln N i t Ri RT N 'T ei 0) 00 r N N to N 6 6 rl m r Ln 6 v c -I N 00 N r O O m (u ro u u u 2 2 0 p 0 O w L L ? ? 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