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HomeMy WebLinkAboutFIN-2023-270 - Council's Home Office, Technology, Conference and Community Engagement Budget Options Financial Services Department www.kitchener.ca REPORT TO: Committee of the Whole DATE OF MEETING: November 6, 2023 SUBMITTED BY: LeBrun, Roger, Manager of Accounting & Payroll, 519-741-2200 ext.7339 PREPARED BY: LeBrun, Roger, Manager of Accounting & Payroll, 519-741-2200 ext.7339 Fusco, Amanda, Director of Legislated Services, 519-741-2200 ext. 7809 Rowland, Bethany, Director of Corporate Communications and Marketing, 519-741-2200 ext. 7046 WARD(S) INVOLVED: All Wards DATE OF REPORT: October 6, 2023 REPORT NO.: FIN-2023-270 SUBJECT: Engagement Budget Options RECOMMENDATION: That Council approve the amended Council spending funding envelopes as follows: 1. Home Office & Technology with a term limit budget of $14,000; 2. Conferences, Training & Learning with a term limit budget of $12,000 per Councillor and $16,000 for the Mayor; 3. Community Engagement & Meetings with a term limit budget of $4,000; and, -COU- amended as attached in Appendix B; and further, -COU-047 Technology & Home Office Expenses be repealed. REPORT HIGHLIGHTS: The purpose of this report is to provide an alternative budget structure for members of Council to access funds for home office, technology, conference, training and community engagement expenditures. There is a minimal increase of less than 1% to the existing budgets. This report supports the delivery of core services. BACKGROUND: *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. During the 2023 Budget deliberations, Council directed that the current funding envelopes for Home Office and Technology budgets be reviewedwith a view to expanding the eligible uses to allow certain constituent communications and engagement activities, while simplifying the administration of funds. REPORT: Both capital and operating budgets were analyzed for home office, technology, and conferences for the last two terms of Council (2014-2017 & 2018-2021). Patterns were reviewed and taken into consideration to develop an amended approach to allow for greater flexibility within the existing funding envelopes and to provide for a new funding envelope for community engagement. The existing budget structure is shown below with budget terms (either annual or per council term) for each category. The total term budget for all members for all items is $331,811. The actual spend (details in Appendix A) are less than budget allotment in all categories. Actual Actual Spend Spend Budget Existing Category Fund Budget 2014-2018- Duration 2017 2021 (Avg) (Avg) Home Office & hƦĻƩğƷźƓŭ υЋͲЎЉЉ tĻƩ —ĻğƩ υЊͲАЊЍ υЊͲЌАЍ Technology Home Office & /ğƦźƷğƌ υЎͲЌЉЊ tĻƩ ĻƩƒ υЌͲБЏЋ υЋͲАЌЌ Technology Conferences hƦĻƩğƷźƓŭ υЊЍͲЎЉЉ tĻƩ ĻƩƒ υЎͲЌБВ υЍͲЌБЎ ΛbƚƷĻʹ ağǤƚƩ ĬǒķŭĻƷ źƭ υЊБͲЎЉЉΜ The proposed option recommends three (3) funding envelopes all with limits rather than annual limits and is as follows: Budget Proposed Category Budget Duration Home Office & Technology (operating and capital) υЊЍͲЉЉЉ tĻƩ ĻƩƒ Conferences, Training & Learning (bƚƷĻʹ ağǤƚƩ ĬǒķŭĻƷ źƭ υЊЏͲЉЉЉΜ υЊЋͲЉЉЉ tĻƩ ĻƩƒ Community Engagement & Meetings υЍͲЉЉЉ tĻƩ ĻƩƒ Total υЌЉͲЉЉЉ tĻƩ ĻƩƒ Home Office & Technology Combining operating and capital budgets for the term allowsflexibility to carry forward unused technology spend over the term of council. The average four-year expenditure for the combination of operating and capital over the last two terms was $9,474 per member. A budget of $14,000 per Councillor for the 4-year term is recommended for this category. Conferences/Training/Learning The average four-year total term expenditure per member during the last two terms for conferences, training and learning was $4,887 per term. The most recent term had a slight reduction due to less travel during the pandemic. This budget is proposed to fund an average of one conference per year per member with a budget of $12,000 per Councillor for the 4-year term ($16,000 for the Mayor). This budget also takes into consideration more recent types of learning beyond traditional conferences, such as online courses, webinars, and the purchase of books. Additional roaming charges for cell phone use as a result of travel will also be charged to the conference/travel budget. Community Engagement and Meetings funding envelope for this purpose of connecting and communicating with ward constituents. In addition to the budget recommendation, there is also an amended policy being proposed which is included as Appendix B, to ensure that there are appropriate rules and parameters which govern all expense eligibility in this category. This policy provides guidance to Members of Council on expenditures that support the Member in fulfilling their statutory duties as an elected official to ensure proper compliance at all times, and especially in an election year. -COU-047 Technology & Home Office Expenses allowing that policy to be repealed. for members of Council access to budget that will allow responsibilities to be carried out as a municipal elected official. All expenditures in these categories will be reported to the public on an annual basis in the statement of remuneration and expenses. Staff explored the potential to combine all budgets into a single fund without category limits but did not develop recommendations along these lines since members of Council had previously requested a program that provided more flexibility but still with category caps in order to ensure transparency and accountability within categories. STRATEGIC PLAN ALIGNMENT: This report supports the delivery of core services. FINANCIAL IMPLICATIONS: Capital Budget The recommendation would move the existing capital budget for home office and technology into the operating budget. Operating Budget The effect of the recommendations outlined above will result in a total term budget for all items of $30,000 for each Councillor ($34,000 for the Mayor), which compares to an average spend of $14,230 per Councillor in each of the past two terms. The total term spend is$334,000 which is a marginal increase over the current budgetof $331,811(0.66%). COMMUNITY ENGAGEMENT: INFORM council / committee meeting. PREVIOUS REPORTS/AUTHORITIES: None. APPROVED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services ATTACHMENTS: Attachment A Summary of Council Expenditures for Last Two Terms of Council Attachment B GOV-COU-025 - Council Expense Reimbursement & Reporting (revised) Appendix A {ǒƒƒğƩǤ ƚŅ /ƚǒƓĭźƌ 9ǣƦĻƓķźƷǒƩĻƭ ŅƚƩ \[ğƭƷ Ǟƚ ĻƩƒƭ ƚŅ /ƚǒƓĭźƌ The ŷƚƒĻ ƚŅŅźĭĻ ğƓķ ƷĻĭŷƓƚƌƚŭǤ ƚƦĻƩğƷźƓŭ ĻǣƦĻƓķźƷǒƩĻƭ (budget of $2,500/year per member of Council) for the last 2 Council terms were as follows: Term1Term2 Member20152016201720182019202020212022 Member A 1,478 1,992 1,386 1,569 1,069 1,782 1,324 3,249 Member B 1,686 2,192 1,983 1,886 1,303 1,299 1,497 1,908 Member C 1,184 1,051 1,783 1,204 760 1,321 1,456 1,454 Member D 2,162 2,107 2,046 2,052 1,078 936 939 1,171 Member E 2,500 2,500 2,500 2,313 1,108 1,002 1,613 1,338 Member F 1,433 1,529 1,760 1,734 2,500 2,012 1,844 467 Member G 920 698 896 1,394 1,931 2,200 1,898 1,729 Member H 1,505 1,583 1,555 1,538 305 241 738 749 Member I 1,223 1,435 1,289 1,653 1,079 1,149 2,785 693 Member J 1,509 1,658 2,283 1,734 1,349 1,167 1,283 1,218 Member K 1,985 2,296 2,006 2,205 1,202 1,254 1,351 1,709 Average 1,599 1,731 1,771 1,753 1,244 1,306 1,521 1,426 Annual Budget 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 The ŷƚƒĻ ƚŅŅźĭĻ ğƓķ ƷĻĭŷƓƚƌƚŭǤ ĭğƦźƷğƌ ĻǣƦĻƓķźƷǒƩĻƭ (budget of $5,301/term per member of Council) for the last 2 Council terms were as follows: MemberTerm1Term2 Member A 4,984 1,895 Member B 2,247 3,707 Member C 5,105 4,122 Member D 3,126 2,793 Member E 4,147 2,472 Member F 589 5,301 Member G 5,230 1,475 Member H 5,218 1,541 Member I 5,114 3,924 Member J 3,147 897 Member K 3,578 1,939 Average 3,862 2,733 Term Budget 5,301 5,301 The ĭƚƓŅĻƩĻƓĭĻ ĻǣƦĻƓķźƷǒƩĻƭ (budget of $14,500/term per member of Council) for the last 2 Council terms were as follows: POLICY Policy No: GOV-COU-025 Approval Date: Click here to enter a Policy Title: COUNCIL EXPENSE date. REIMBURSEMENT & REPORTING Reviewed Date: Click here to enter text. Policy Type: COUNCIL Next Review Date: Click here to enter text. Category: Governance Reviewed Date: Sub-Category: Council Last Amended: June 25, 2012 Author: Replaces: GOV-COU-025 - Council Dept/Div: Expense Reimbursement & Reporting Repealed: GOV-COU-047 Technology & Home Office Expenses Mayor and Council Replaced by: Related Policies, Procedures and/or Guidelines: ADM-ELE-226 Use of Corporate Resources for Political Campaign Purposes Municipal Act, 2001 Municipal Elections Act, 1996 Municipal Conflict of Interest Act, 1990 1. POLICY PURPOSE: The Council Expense Policy provides guidance to Members of Council on expenditures that support the Member in fulfilling their statutory duties as an elected official. A Constituency Services Budget is intended to provide Members of Council (Members) with the resources to: to fund any home office and technology needs for their offices at City Hall and in their wards to support their role; 1 of 7 Policy No: GOV-COU-025 Policy Title: COUNCIL EXPENSES REIMBURSEMENT & REPORTING to conduct meetings and communicate with their constituents and other stakeholders; to represent the City at functions, events or conferences, and to enhance their learning through workshops, seminars or other training methods. The policy is intended to: provide Members of Council with the flexibility to allocate resources in the most efficient way to meet their own particular requirements; clarify the processes that Members use to administer their budgets by simplifying and outlining the rules; and r 2. DEFINITIONS: Asset p These include IT equipment and furniture. Community Event an event hosted or co-hosted by a Members of Council. Hospitality the provision of meals or refreshments to members of the public. Intellectual Asset - any results or products of research and development activities of any nature (including, but not limited to studies, reports, publications and other information products, databases, software) that are paid for out of the Mem Constituency Services Budget. Personal Expense an expense that is primarily of personal benefit to the Member of Council or their staff and/or is not related to the business of the City of Kitchener. 2 of 7 Policy No: GOV-COU-025 Policy Title: COUNCIL EXPENSES REIMBURSEMENT & REPORTING 3. SCOPE: POLICY APPLIES TO THE FOLLOWING: All Employees All Full-Time Employees All Union Management C.U.P.E. 68 Civic Non Union C.U.P.E. 68 Mechanics Temporary C.U.P.E. 791 Student I.B.E.W. 636 Part-Time Employees K.P.F.F.A. Specified Positions only: Other: Council Local Boards & Advisory Committees 4. POLICY CONTENT: 1. Budget for Members of Council The budget will be subdivided into three distinct funding envelopes that will each be given a budget limit per term of Council, as determined during the budget approval process. The categories and examples of eligible expenses are as follows: Home Office & Technology: Cell phones Laptops, notebooks, and tablets Office furniture (purchased in the first year of a term) Printers Cell phone monthly charges Dedicated home office phone line Home internet plans Paper and office supplies Ink cartridges Conferences, Training & Learning Conferences and seminars Webinars/Courses Books Community Engagement & Meetings Direct mail, newsletters, flyers, etc. relating to city business including costs related to writing, design and distribution 3 of 7 Policy No: GOV-COU-025 Policy Title: COUNCIL EXPENSES REIMBURSEMENT & REPORTING Community meetings and constituent engagement directly related to City business, including any hospitality costs Digital tools for graphic design or social media management Members of Council cannot exceed their term Constituency Services Budget within each budgeted category. Any over-expenditure is the personal responsibility of the Member and to be paid personally by the Member. There is no carry-over of deficits or surpluses from one term to the next. A member of Council is required to have their final travel costs approved by the Mayor. The Mayor is required to have their final travel costs approved by the Chief Administrative Officer. Technology purchases and contracts are encouraged to be administered by the City in order to ensure consistency of technology and to maximize purchasing power. Any telecommunications network in any way must be verified to meet all current security Repairs to hardware that was purchased directly by the City and that fall under warranty coverage will be administered by the City provided the faulty equipment is brought back to City Hall. Technology purchases with a useful life greater than one year will have a useful life period assigned to it. If the Mayor or a Council member is re-elected for a subsequent term, they can choose either to: 1. replace their technology equipment, returning any equipment with a useful life remaining to the City or paying out the value of any remaining useful life, or 2. continue with the existing equipment. If the Mayor or Council member is not re-elected or does not complete a full four year term, they can choose either to: 1. pay the value of any remaining useful life to purchase the technology equipment personally, or 2. return the technology equipment to the City. 4 of 7 Policy No: GOV-COU-025 Policy Title: COUNCIL EXPENSES REIMBURSEMENT & REPORTING 2. Council Administration Budget As distinct from Constituency Services Budgets, the corporate budget for the Elected Officials is overseen by the Chief of Staff. Under the supervision of the Chief of Staff, the Council Administration Budget is used to finance a range of corporate resources commonly used in the operation of each Office, shared staffing within the Office of Mayor and Council, along with certain other expenses supporting the Council or required by the Municipal Act, 2001. The salary, benefits, M, purchase of event tickets, and mileage reimbursement of all Members of Council will be drawn from the Council Administration Budget. The Council Administration Budget may also fund travel by members of Council in relation to being executive members of provincial and/or national associations or organizations as well as costs associated with trade missions. The Mayor may participate in one international business mission per year with the Waterloo Economic Development Corporation to advance the regional economic development objectives related to foreign direct investment. 3. Spending guidelines, reimbursement and reporting ability to incur expenditures must follow basic accounting and audit principles and the following guidelines: Expenses must relate to the business of the City of Kitchener. Members cannot claim expenses of a personal nature. Expenses incurred by third parties may not be reimbursed in the same manner. Invoices must include a description of the goods purchased or services rendered, the cost, applicable taxes, and HST Registration Number. In the event a HST Registration Number is not provided, Constituency Assistants are required to contact the vendor to obtain the information. Any material and intellectual assets purchased through the use of the Constituency Services Budget are the property of the City of Kitchener, not the Member. 5 of 7 Policy No: GOV-COU-025 Policy Title: COUNCIL EXPENSES REIMBURSEMENT & REPORTING Reimbursement If a member of Council is entitled to be reimbursed for actual business-related expenditures, the request for reimbursement, including receipts, must be submitted to the Mayor for approval in a timely fashion. st Any expenditure not submitted by January 31 of the following year will forfeit reimbursement eligibility. It is imperative that expenditures are recorded in the appropriate fiscal year in order to provide accurate information on the annual Statement of Remuneration and Expenses. The Mayor is required to have their summary of business-related expenditures approved by the Chief Administrative Officer. Reporting An itemized annual Statement of Remuneration and Expenses paid to each member of Council in respect of their services as a member of Council shall st be prepared and submitted to Council by March 31 of the following year. Remuneration and expenses to be reported in the Statement of Remuneration and Expenses will include: i) any salary and fringe benefits paid to the Mayor and Council members ii) any conferences attended by the Mayor and Council members, or costs incurred for training and learning iii) any meetings attended by the Mayor and Council members as Special Council Appointees iv) allowance v) any business-related mileage costs incurred by Council members vi) any complimentary tickets or golf passes vii) all home office and technology expenses viii) all expenses relating to community engagement and community events In the spirit of accountability and transparency, the Statement of Remuneration and Expenses for Members of City Council are publicly 4. Restrictions on Expenses No expense shall create a conflict of interest, or the appearance of such a conflict, that may arise through the purchase of goods or services from a family member. 6 of 7 Policy No: GOV-COU-025 Policy Title: COUNCIL EXPENSES REIMBURSEMENT & REPORTING In an election year, Constituency Services Budgets will be restricted 60 days prior to and including Voting Day to ensure that corporate resources are not being utilized for any election-related purposes, in alignment with ADM-ELE-226, the Use of Corporate Resources During an Election Year Policy. In general, alcohol will not a permitted except in a meeting involving external business contacts. Personal expenses (i.e., clothing, etc.) are not eligible expenses. Gifts for employees of the City, its agencies, boards, commissions, and special purpose bodies are not eligible expenses. specific individual citizens or businesses (i.e., payment of tax penalties, parking tickets, sponsorship of personal travel, etc.). Members should keep in mind the general integrity principles set out in the Code of Conduct and may consult with the Integrity Commissioner as required on other matters that may create a real or perceived conflict of interest under the Code. Advertising that promotes for-profit organizations, third parties, other levels of government, political parties, or candidates in any election campaigns. Paid advertising for initiatives, interests or personal causes unrelated to City business. Expenses related to the creation of personal or non-city-business websites, including the purchase of domain names. Direct mail or marketing expenses for a geographic area outside of a ity Clerk, in consultation with the Integrity Commissioner. Notwithstanding, it is recognized that advertising in mass media and broader circulation publications and some unaddressed postal walks will cross ward boundaries, and these are exempt where outside the control of the Member seeking to direct mail/direct market to their ward residents. Expenses regarding retaining consultants or hiring staff. 5. HISTORY OF POLICY CHANGES Administrative Updates Formal Amendments 7 of 7