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HomeMy WebLinkAboutFCS Minutes - 2022-12-12 Finance and Corporate Services Committee Minutes December 12, 2022, 12:30 p.m. Council Chambers - Hybrid City of Kitchener 200 King Street W, Kitchener, ON N2G 4G7 Present: Mayor B. Vrbanovic Councillor S. Davey Councillor D. Schnider Councillor J. Deneault Councillor C. Michaud Councillor A. Owodunni Councillor P. Singh Councillor B. Ioannidis Councillor M. Johnston Councillor D. Chapman Councillor A. Clancy Staff: D. Chapman, Chief Administrative Officer M. May, General Manager, Community Services and Deputy Chief Administrator J. Lautenbach, Chief Financial Officer, Financial Services V. Raab, General Manager, Corporate Services J. Readman, General Manager, Development Services D. McGoldrick, General Manager, Infrastructure Services G. Stevenson, Interim Director, Planning T. Bradshaw, Interim Director, Parks & Cemeteries B. Lam, Director, Sanitary & Stormwater Utilities G. St. Louis, Director, Gas & Water Utilities K. Abu-Eseifan, Manager, Gas & Supply Engineering D. Saunderson, Deputy Clerk M. Mills, Committee Administrator _____________________________________________________________________ 1 1. Commencement The Finance and Corporate Services Committee held a meeting this date commencing at 1:01 p.m. 2. Disclosure of Pecuniary Interest and the General Nature Thereof There were no conflicts declared. 3. Consent Items Pursuant to Chapter 25 (Procedure) of the Municipal Code, a motion was brought forward by Councillor D. Chapman to discuss Consent Items 3.2, 3.3 and 3.5 listed on the agenda, which was voted on and was Carried. 3.1 Fergus Avenue Reconstruction Purchase Order Extension, FIN-2022-492 The Committee considered Financial Services Department report FIN-2022-492 dated December 2, 2022, recommending approval of the extension of the purchase order issued to Steed and Evans Limited for T21-092 Fergus Avenue Clover Place Reconstruction. On motion by Councillor D. Chapman it was resolved: "That the Purchase Order for T21-092 Fergus Avenue (Weber Street East to Thaler Avenue) Clover Place Reconstruction, issued to Steed and Evans Limited, St. Jacobs, Ontario be increased in the amount of $90,000 funded by an existing surplus in the project account, be approved, as outlined in Financial Services Department report FIN-2022-492." Carried 3.2 KW Woodworking and Craft Centre (KWW&CC) - Extension of Existing Agreement, CSD-2022-481 The Committee considered Community Services Department report CSD-2022- 481 dated November 18, 2022, recommending approval of an extension of the existing agreement with the Kitchener Waterloo Woodworking & Craft Centre (KWW&CC). On motion by Councillor D. Chapman it was resolved: 2 "That the Mayor and Clerk be authorized to execute a five-year funding agreement extension, subject to the satisfaction of the City Solicitor, with the Kitchener Waterloo Woodworking & Craft Centre, as outlined in Community Services Department report CSD-2022-481; and further, That funding of $55,403 for the funding agreement with the Kitchener Waterloo Woodworking & Craft Centre be moved from the Tier 1 grant program and placed into the Neighbourhood Programs and services operating budget." Carried 3.3 House of Friendship - Funding Agreement, CSD-2022-480 The Committee considered Community Services Department report CSD-2022- 480 dated November 14, 2022, recommending approval of funding of $158,621 for the services provided by House of Friendship be moved from the Tier 1 grant program and placed into the Neighbourhood Programs and services operating budget. D. Chapman and M. May were in attendance and responded to questions from the Committee. On motion by Councillor D. Chapman it was resolved: "That funding of $158,621 for the services provided by House of Friendship be moved from the Tier 1 grant program and placed into the Neighbourhood Programs and services operating budget, as outlined in Community Services Department report CSD-2022-480; and further, That the General Manager, Community Services be authorized to execute a Funding Agreement, subject to the satisfaction of the City Solicitor, every two years with House of Friendship to cover expenses associated with providing food programs at City of Kitchener facilities." Carried 3.4 Development Charges, Section 20 Dispute and Hearing Process, COR-2022- 498 3 The Committee considered Corporate Services Department report COR-2022- 498 dated November 25, 2022, regarding changes to Section 20 Dispute and Hearing Process related to the Development Charges Act, 1997. On motion by Councillor D. Chapman it was resolved: "That the Finance and Corporate Services Committee be delegated the authority of Council to conduct hearings relating to complaints made under section 20 of the Development Charges Act, 1997; and further, That the hearings for section 20 Development Charges disputes be conducted as the per the process as outlined in Corporate Services Department report COR-2022-498." Carried 3.5 Pre-Approval of 2023 Capital Projects, FIN-2022-496 The Committee considered Financial Services Department report FIN-2022-496 dated November 24, 2022, recommending pre-approval of the capital projects listed in Appendix 'A' for procurement prior to passing the 2023 budget. J. Lautenbach and J. Readman were in attendance and responded to questions from the Committee. It was noted any recommendation arising from the Committee regarding this matter will be considered at the special Council meeting scheduled for later this same date. On motion by Councillor D. Chapman it was resolved: "That Council pre-approve the capital projects listed in Appendix A to Financial Services Department report FIN-2022-496 for procurement prior to passing the 2023 budget." Carried 4. Presentations 4.1 2023 Budget Overview Introduction from the Chief Administrative Officer 4 D. Chapman presented a general overview of the Operating budget noting the budget ensures maintenance of services valued by the Community while mitigating cost increases, responds to economic pressures introduced by inflation and supply chain demands, and addresses the impacts of Kitchener's rapidly growing population. D. Chapman noted the Capital Budget maintains investments in priority projects however the 2024 capital forecast requires Council to make difficult decisions that maintain reliable infrastructure and support growth. D. Chapman further highlighted the City of Kitchener's commitment to maintaining affordable property tax noting the 2023 budget is well below the rate of inflation in line with Council's 2 year rolling average for the Consumer Price Index. D. Chapman noted $1.5M of the proposed budget is allocated for Council and Community priorities. Lastly, the budget outlines strategies developed from Citizen and Council feedback, for improving accessible communication of financial information to Kitchener residents. Councillor M. Johnston entered at this time. General Overview by the Chief Financial Officer J. Lautenbach highlighted the City's budget survey being launched this date noting the survey is typically the public's preferred method for providing input on the budget. In addition, new videos explaining key concepts of the budget have been published on the City of Kitchener website along with a budget summary document. Councillor B. Ioannidis left the meeting at this time. J. Lautenbach provided a further overview on the budget, noting the proposed overall tax increase of 4.8% is well below the current rate of inflation (7%). The proposed increase for WIP is 4.5%, in line with previous rates approved by Council. Overall, the impact of the proposed property tax increase is $56 dollars per year, and for water utilities, $42 dollars per year, for the average household. Councillor B. Ioannidis re-entered the meeting at this time. In response to suggestions from the Committee, J. Lautenbach indicated tax bills could be reviewed to demonstrate the allocation fees to the City and the Region. Councillor P. Singh requested an issue paper be prepared outlining the initiative for the breakdown of fees collected from tax bills. 5. Discussion Items 5.1 2023 User Fees, FIN-2022-482 5 The Committee considered Financial Services Department report FIN-2022-482 dated October 20, 2022, recommending approval of the proposed fees and charges contained in the 2023 User Fee Schedule attached to the Report. In response to questions from the Committee, M. May noted there was an issue paper included within the budget outlining reduction in recreational user fees. J. Readman confirmed lines 229 and 230 identified in the 2023 User Fee Schedule are new fees proposed for offsite work on Regional roads. In response to questions from the Committee, G Stevenson, Interim Manager, Planning noted a third-party independent consultant was retained to conduct a fee review study of various development applications. Based on the findings of the study, Staff are proposing an increase in development application fees reflecting the level of staff engagement required for processing development applications. G. Stevenson noted, there was engagement with the Waterloo Region Home Builders Association and the association is in support of a fee recovery system where the costs of processing planning applications is borne by applicants initiating them. D. Chapman noted industry support for fee increases as it facilitates the City's continued streamlining of development approval processes. J. Readman noted the proposed fee is 0.8% of an average total development cost which is a much lower percentage in comparison to other municipalities. Members of the Committee expressed concerns with affordability for applicants and the overall impact on housing costs. In response to questions, G. Stevenson noted the fee review study will be circulated to Council as it contains examples of the impact of increased fees on developers. It was noted any recommendation arising from the matter would be considered at a Special Council meeting later this date. On motion by Mayor B. Vrbanovic it was resolved: "That the proposed fees and charges contained in the 2023 User Fee Schedule attached to Financial Services Department report FIN-2022-482 be approved, save and except the Planning Fees identified in lines 232 to 319 and two Engineering fees identified as lines 229 and 230, be deferred to the December 19, 2022, Council Meeting; and further, That the Legal Services staff be directed to prepare the necessary by-laws to amend The City of Kitchener Municipal Code Chapters for fees and charges pertaining to licensing and building permits." 6 Carried 5.2 2023 Water Utilities Rates, FIN-2022-488 The Committee considered Financial Services Department report FIN-2022-488 dated November 21, 2022, recommending approval of the proposed rates contained in the 2022 Water Utilities Rates schedule attached to the Report. It was noted any recommendation arising from this matter would be considered at a special Council meeting later this date. B. Lam, Director, Sanitary & Stormwater Utilities provided an overview of water, sanitary and stormwater utilities, noting these services are funded by user fees and supported through the Water Infrastructure Program (WIP) rates. The proposed combined rates for 2023 is 4.5% which is an approximate annual increase of $42 dollars for the average homeowner. B. Lam noted reduced water utilities rates are not advisable as there are already significant pressures on the utilities budget deriving from a range of factors including investments into aging infrastructure and implementing new programs introduced by recent regulatory changes. In response to questions from the Committee, D. McGoldrick, General Manger, Infrastructure Services, noted critical maintenance and infrastructure investment projects have been deferred for the last two years so Staff are concerned the City may no longer meet service level expectations if water utility fees are reduced. B. Lam noted, the City of Kitchener is utilizing federal grants to accelerate its' investment into initiatives that combat climate change. Further, D. Chapman noted the largest increase in water utility rates is 8% and is allocated to stormwater utilities as the City is obligated to deliver this program subject to the federal grant it received. Councillor D. Schnider requested a review of the Water Infrastructure Program review along with metrics will be circulated to members of the Committee. On motion by Councillor M. Johnston it was resolved: "That the proposed rates contained in the 2022 Water Utilities Rates schedule attached to Financial Services Department Report FIN-2022-488 be approved." 7 Carried 5.3 2023 Natural Gas Rates, INS-2022-486 The Committee considered Infrastructure Services Department report INS-2022- 486 dated December 5, 2022, recommending approval of the 2023 Natural Gas Rates as outlined in Attachment 'A'. It was noted any recommendation arising from this matter would be considered at a Special Council meeting later this date. Mayor B. Vrbanovic and Councillor A. Owodunni left the meeting at this time. G. St. Louis provided an overview of Natural Gas Rates noting a proposed increase of delivery rates resulting in an annual increase of about $81 dollars a year for Kitchener Utilities customers. K. Abu-Eseifan was also in attendance to answer questions from the Committee. Councillor A. Owodunni re-entered the meeting virtually through Zoom at this time. On motion by Councillor B. Ioannidis it was resolved: "That the supply component of the natural gas rate be decreased to 20.85 cents per cubic meter from 21.45 cents per cubic meter for system gas customers of Kitchener Utilities effective January 1, 2023; and, approved as proposed in Infrastructure Services Department report INS- 2022-486, Attachment 'A', for all Kitchener delivery customers effective January 1, 2023; and further, That the supply rate of natural gas be reviewed quarterly against market conditions and necessary changes to be brought forward for Council approval." Carried 6. Information Items 6.1 September 2022 Variance Report, FIN-2022-484, FIN-2022-484 7. Adjournment 8 On motion, this meeting adjourned at 3:00 p.m. Marilyn Mills Committee Administrator 9