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HomeMy WebLinkAboutFCS Minutes - 2021-11-15 - Operating Budget Finance and Corporate Services Committee Minutes November 15, 2021, 10:00 a.m. Electronic Meeting Present: Mayor B. Vrbanovic Councillor S. Davey Councillor D. Schnider Councillor J. Gazzola Councillor C. Michaud Councillor K. Galloway-Sealock Councillor P. Singh Councillor B. Ioannidis Councillor M. Johnston Councillor D. Chapman Councillor S. Marsh Staff: D. Chapman, Chief Administrative Officer M. May, General Manager, Community Services and Deputy Chief Administrator V. Raab, General Manager, Corporate Services J. Readman, General Manager, Development Services J. Lautenbach, Chief Financial Officer, Financial Services D. McGoldrick, General Manager, Infrastructure Services L. MacDonald, City Solicitor B. Rowland, Director, Corporate Communications and Marketing S. Goldrup, Committee Administrator D. Saunderson, Deputy Clerk _____________________________________________________________________ 1. Commencement The Finance and Corporate Services Committee held an electronic meeting this date, commencing at 10:03 a.m., Chaired by Councillor S. Davey. 1 2. Discussion Items 2.1 FIN-2021-58 - 2022 Operating Budget a. Introduction from the Chief Administrative Officer Dan Chapman presented a general overview of the Operating Budget, noting there is a continued focus on the City's Strategic Plan, pandemic response and emerging priorities, noting the proposed tax rate increase is 1.9%, which is one of the lowest across the province. D. Chapman further provided highlights of the Operating and Capital Budgets, noting Council would have an opportunity through the budget process to allocate $1M in capital funding to a priority initiative of Council, stating staff have provided affordable housing, facility infrastructure gaps; and, investments in community trails as possible options. b. General Overview by the Chief Financial Officer Jonathan Lautenbach provided a further overview on the budget, noting a number of economic factors that are taken into consideration when preparing budget recommendations, including but not limited to: inflation, exchange rate, affordability, interest rates, financial impacts of COVID, projected reserve balances, links to the long-term financial plan. J. Lautenbach advised the proposed budget helps to continue to move forward further citizen priorities, corporate strategic actions, addressing pandemic response and support for a growing City. J. Lautenbach stated while the Capital budget was proposed to be discussed on at Finance and Corporate Services on November 29, 2021, there was a $1M capital allocation that had been identified for Council to determine its final allocation. J. Lautenbach indicated 3 possible areas of strategic investment have been identified for potential allocation and it would be up to Council's will on how the funds should be applied, indicating the investments are as follows: affordable housing, facility infrastructure gaps; and, investments in community trails. c. Boards a. Kitchener Public Library (KPL) Mary Chevreau and Angela Riddell, Kitchener Public Library were in attendance to provide an overview of the 2022 KPL Budget and respond to questions from the Committee. M. Chevreau noted in 2021 Council approved the elimination of late fees, which resulted in an uptake in library use by 125%. b. Centre in the Square (CITS) 2 The Committee was also in receipt of Issue Paper Op01 entitled "Continuing Transitional Funding for the Centre in the Square", related to the additional transitional funding required from Tax Stabilization Reserve Fund and year end surpluses. Deb Daub, Elizabeth Sproule and Rob Sonoda, Centre in the Centre (CITS) were in attendance to respond to questions related to the 2022 CITS operating budget. The Committee recessed at 11:42 a.m. and reconvened at 11:57 a.m., Chaired by Councillor S. Davey with all members present save and except Mayor B. Vrbanovic and Councillor B. Ioannidis. d. Tax Supported Operating Budget The Committee considered Issue Paper Op02 entitled "Enhancing City Services and Resourcing Growth Needs" related to the number of full-time equivalent (FTE) positions to be approved through the 2022 budget as a means of addressing the growth pressures on the City, and to deliver services to select areas. Ryan Hagey provided an overview of the tax supported operating budget, noting the proposed net tax levy increase is 1.9% and would amount to an additional $21 per year, or $1.78 per month on the average Kitchener home. R. Hagey noted prior to the pandemic, the City ended the year with a surplus in tax supported operations for five straight years (2015 - 2019). which has resulted in a significant deficit that has been supported by the Tax Stabilization Reserve Fund (TSRF). Despite a sizeable deficit in 2020, the City funding program to offset financial issues in 2021. Additionally, the City is also due to receive $1.7M of Safe Restart funding in 2021 from the Federal government towards the projected tax supported operating deficit and $2.4M from the Provincial government. e. Enterprise Operating Budgets a. Building Enterprises The Committee considered Op03 entitled "Managing Growth Pressures in the Building Division" recommending the approval of additional full-time equivalent (FTE) staff to support the growing demand of development. Mike Seiling was in attendance to respond to questions related to the 2022 building budget. In response to questions, M. Seiling and D. Chapman stated 3 staff could prepare an issue paper for Final Budget day that would include a review of user fees and whether a nominal increase would address the budget shortfall currently identified in the Building Enterprise. b. Golf Enterprise R. Hagey provided an overview of the 2022 Golf Enterprise budget. Kim Kugler was in attendance to respond to questions from the Committee. c. Parking Enterprise R. Hagey provided an overview of the Parking Enterprise budget. In response to questions, R. Hagey advised if the City receives Safe Restart Phase 2 funding, staff intend on allocating approximately $1.3M to the Parking Enterprise. Barry Cronkite was in attendance to respond to questions from the Committee. d. Utilities Overview The Committee considered Issue Paper Op05 entitled Complying with New Sanitary & Stormwater Legislation recommending two additional full-time equivalents (FTE) to address capacity to support analysis, planning, and prioritization. The Committee further considered Issue Paper Op06 entitled "Supporting the Delivery of the Federal Disaster Mitigation and Adaptation Fund (DMAF) Program" recommending a new FTE to support the DMAF program delivery. Denise McGoldrick provided an overview of the utilities, noting the City owns and operates 4 utilities: Water, Sanitary, Stormwater and Gas Utilities, which are funded and supported through the Water Infrastructure Program (WIP) rates. D. McGoldrick stated during the WIP review rates were established for the utilities from 2018 to 2022 with the intention to address the infrastructure shortfall by 2024. D. McGoldrick further advised the 2022 Budget is proposed to be half of what was initially projected through the WIP Review. The 2022 rates were initially proposed to be an increase of 4.5% for 2022, which has been reduced to 2.2% and the majority of the increase is based on external factors. e. Gas Utility The Committee considered Issue Paper Op04 entitled "Complying with Natural Gas Regulations" providing an overview of the gas infrastructure gaps a staff recommendation for implementation in 2022. R. Hagey provided an overview of the 2022 Gas Utility. f. Water Utility 4 R. Hagey provided an overview of the 2022 water utility. D. McGoldrick and Greg St. Louis were in attendance to respond to questions from the Committee. In response to questions, D. McGoldrick indicated she could review the utility bill and whether additional items could be included on the bill to demonstrate the fees and portions of the fees that are collected for the City and the Region. In response to further questions, G. St. Louis advised the City is in compliance with the regulations outlined in the Clean Water Act, noting staff report to Council annually on this matter. g. Sanitary Utility R. Hagey provided an overview on the 2022 Sanitary Utility. Bu Lam was in attendance to response to questions from the Committee. In response to questions, D. McGoldrick stated a fee for service related to sanitary blockages would be an onerous request at this moment for the 2022 budget request, noting if this was something Council wished to pursue it would be appropriate to review this process through a future Water Infrastructure Program review. Councillor Chapman stated she would follow up with staff to provide and seek additional information related to the request and may bring it forward as part of a different request. h. Stormwater Utility R. Hagey provided an overview of the 2022 Stormwater Utility budget. Dan Chapman, D. McGoldrick and B. Lam were in attendance to respond to questions from the Committee. In response to questions, D. Chapman indicated staff could provide an issue paper for Final Budget day related to school board and the financial impacts related the inability to collect stormwater utility fees. f. Resolution In response to questions, J. Readman agreed to provide an issue paper on the impacts of hiring an additional FTA to support heritage and the Heritage Kitchener Advisory Committee. Councillor Chapman addressed issues related to sidewalk winter maintenance in the downtown near the Kitchener Market from King Street to the Light Rail Transit (LRT) stop and requested an issue paper related the increased service request. Niall Lobley provided an overview of the current services and the funding associated with downtown winter maintenance, noting staff could provide an issue paper to include additional information related to the request. 5 In response to a request, Michael May stated staff could bring forward an Issue Paper for Final Budget day related to the possibility of increasing the funding for Neighbours day from $25,000. to $50,000. for 2022. Councillor K. Galloway-Sealock requested additional information related to hiring a crossing guard at Janet Metcalfe School, noting as soon as it is warranted she would like the guard to be hired in 2022. J. Readman indicated staff will complete a review of this matter. R. Hagey provided an overview of the requested issue papers, noting 5 requests were asked for this date. In response to questions, D. McGoldrick indicated staff will be reviewing a market incentive program that will be reported back to Council in 2022 related to homeowners maintaining trees on their property. Questions were raised regarding traffic calming signage It was noted any recommendation arising from the Committee related to this matter would be forwarded to a Special Council meeting later this date. On motion by Councillor P. Singh "That staff be directed to report and/or take appropriate action on the following matters relative to the 2021 Operating budget, as outlined in the chart below: Division/Area Topic Action Stormwater Stormwater Provide additional Rates information on the stormwater rates not currently being collected from school board properties. Building Building Fees Provide additional information on possible rate increases that would reduce the projected deficit of $1.4M in 2022. 6 Planning Heritage Provide additional Planning information on the financial Full Time impacts resulting in the hiring Equivalent one additional Full Time Staff Equivalent (FTE) Heritage Planner to further advance the heritage planning work plan. Parks & Snow Provide information on the Cemeteries Removal financial implications related to snow removal near the Kitchener Market from King Street to the Light Rail Transit (LRT) stop. Neighbourhood Neighbours Provide additional Day Programs & information on ways for the Services City to enhance Neighbours Day in 2022 as a result of enhancing connections beyond the global pandemic, and whether the budget could be increased on a permanent basis from $25k to $50k." Carried 3. Adjournment On motion, this meeting adjourned at 1:45 p.m. Dianna Saunderson Manager, Council/Committee Services & Deputy Clerk 7