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HomeMy WebLinkAboutFinance & Corp - 2004-12-13 SFINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 137 2004 CITY OF KITCHENER The Finance and Corporate Services Committee met in special session this date commencing at 9:10 a.m. Present: Chair Councillor B. Vrbanovic, Mayor C. Zehr and Councillors M. Galloway, G. Lorentz and C. Weylie Councillors J. Smola and J. Gazzola were in attendance for part of the meeting. Staff: C. Ladd, Chief Administrative Officer P. Houston, General Manager of Financial Services G. Sosnoski, General Manager of Corporate Services G. Stewart, Manager of Development & Technical Services F. Pizzuto, General Manager of Community Services R. Browning, Acting General Manager of Strategic Services S. deMoree, Assistant City Solicitor D. Trask, Acting Fire Chief K. Currier, Director of Operations K. Baulk, Director of Enterprise D. Chapman, Supervisor, Special Events M. Hildebrand, Manager of Aquatics & Athletics S. Adams, Director of Community Programs & Services H. Gross, Director of Project Administration M. Grummett, Director of Information Technology D. Paterson, Director of Human Resources S. Lewis, Chief Librarian, Kitchener Public Library R. Gosse, Committee Administrator The purpose of this special meeting was to discuss the proposed 2005 Fees and Charges and render a recommendation for Council's consideration later this date. In this regard, the Committee was in receipt of Financial Services Department report FIN-04-052 dated November 8, 2004, attached to which was a comprehensive listing, assorted by department, of the proposed fees and charges for 2005. Also to be discussed was the proposed Capital Budget and 10-Year Capital Forecast 2005-2014. In this regard, the Committee was in receipt of Financial Services Department report FIN-04-055 dated December 3, 2004, attached to which was a line by line listing of all projects, existing and new, in the Capital Forecast listed by Department/Division and, a list showing all of the changes to the original forecast that are being recommended by the administration. 1. FIN-04-052 2005 COMPREHENSIVE FEE REVIEW Ms. Houston introduced the report advising that the following assumptions have been made in preparation of the fees and charges: a 3% budget guideline; a 4.3% increase in revenue over 2004; and, that a 1% increase in user fee rates equals $177,000. Ms. Houston further advised that the factors that have been used in determining the rates included cost recovery, legislation, rates of other municipalities and market conditions. Ms. Houston then proceeded with a department by department review of the proposed 2005 fees and service charges. COMMUNITY SERVICES DEPARTMENT Councillor B. Vrbanovic pointed out that the rental charges for the Council Chambers has been changed from previous years in that there is one charge of $200 for the first three hours and an additional hourly rate of $55 for the use of the chambers, audio/video equipment and a member of staff to run the equipment. He suggested that this did not allow for any flexibility when an organization or group does not require the use of the audiovisual equipment or a member of staff to operate the equipment. It was agreed to have the rental fees for the Council Chambers structured to allow rental of the Chambers with and without the use of the audiovisual equipment and a member of staff. Councillors J. Smola and J. Gazzola entered the meeting. Councillor M. Galloway raised a concern with respect to the proposed 10% increase for senior citizen swim passes and, the reduction in the number of family members that would be included in the family swim passes. Mr. M. Hildebrand advised that staff have met with participants of the seniors' swim pass program to discuss the inconsistency of the fees being charged and those that attended the meeting agreed that the fees should increase but over a 3 year period. Mr. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 137 2004 - 164- CITY OF KITCHENER 1. FIN-04-052 2005 COMPREHENSIVE FEE REVIEW (CONT'D) Hildebrand further advised that the family swim pass would allow four members of a family to participate under one pass unlike previous years in which there were no limits to the number. He pointed out that in staff's opinion the limit to four members of a family was not unreasonable and if there was a case that this would cause undue financial hardships there are other programs available to allow for discounted prices for additional children. Councillor Galloway suggested that the 10% increase for the seniors swim pass was too high and should be capped at 2%. He further suggested that the family swim pass be adjusted to allow all members of an immediate family as part of the family pass. Mayor C. Zehr requested that staff provide more information on the rationale for cost recovery of the services and suggested that 2% does not maintain current costs. Councillor Vrbanovic advised that the issue regarding the family swim pass was not related to the fees and charges and suggested that the matter come back to the Community Services Committee in January 2005. On motion by Councillor M. Galloway - it was resolved: "That the fees for swim passes relating to senior citizens, be set at a 2% increase over the 2004 rate." Councillor J. Gazzola raised a concern that certain fees are increasing more than the proposed 3% and put forward a motion that all fees be increased 3% over the 2004 fee schedule. Several members of the Committee raised concerns with the motion pointing out that many of the fees are not being increased and that there are other factors to be considered in setting the fees such as cost recovery and market comparison. Councillor Gazzola withdrew his motion. Councillor Gazzola pointed out that with respect to the fees for cemeteries involving children and infants, in some cases these were increasing greater than 3% and suggested that the fee increase being imposed on families during a difficult time may not be appropriate. Mayor C. Zehr commented that he agreed. On motion by Mayor C. Zehr - it was resolved: "That the fees and cemetery charges for internment services and lot prices relating to youth, children and infants be capped at 3%." The Committee was informed that the fees under the Rockway Senior Centre for set-up/take down for meeting rooms contained a error and should be corrected to show a 3% increase over the 2004 fees. Councillor Gazzola raised a concern regarding the underground parking fees for the Centre in the Square being set at the same rate as surface lots. He pointed out that the underground parking at the Regional building was further from the theatre and therefore should be a lower charge. Mr. T. Konstantinidis advised that the actual distance from the underground parking and the surface lots were close to being the same. Councillor J. Gazzola put forward a motion to set the fee for the theatre rate - underground Region facilities at $4. The motion was voted on and lost. On motion by Councillor J. Smola - it was resolved: "That the 2005 fees and charges under the Community Services Department be approved, as amended, as follows: The rental fees for the Council Chambers include fees for the use of the Chambers without audio/visual equipment or staff costs; and, That the fees for swim passes relating to senior citizens, be set at a 2% increase over the 2004 rate; and, FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 137 2004 - 165- CITY OF KITCHENER 1. FIN-04-052 2005 COMPREHENSIVE FEE REVIEW (CONT'D) That the fee for set-up and take down for the meeting room at the Rockway Senior Centre be set at 3% over the 2004 fee; and further, That the cemetery internment charges and lot prices for children, infants and youth be capped at 3%." CORPORATE SERVICES DEPARTMENT Councillor M. Galloway raised a concern with the fees being charged for Council and Standing Committee minutes suggesting that these should be available to the public at no or little cost. Mr. R. Gosse advised that in most cases those subscribing and paying the fee were businesses and that all minutes are available free of charge on the City's website. He further advised that if a member of the public wished to have a particular set or extract from the minutes, this would be provided at no charge. On motion by Councillor J. Smola - it was resolved: "That the fees and charges under the Corporate Services Department be approved." DEVELOPMENT AND TECHNICAL SERVICES DEPARTMENT Mr. G. Stewart advised of an error under Planning and Building for Site Plan Approval in that the proposed 2005 rate shown as $1,600 and $800 for full site plan submissions and stamped plan approval respectively should be $1,800 and $900. On motion by Councillor C. Weylie - it was resolved: "That the corrected fees and charges under the Development and Technical Services Department be approved." FINANCIAL SERVICES DEPARTMENT Ms. P. Houston pointed out that the proposed fee for tax and utility certificates were being increased by 40% in order to align these rates with those of the area municipalities. On motion by Councillor C. Weylie - it was resolved: "That the fees and charges under the Financial Services Department be approved." STRATEGIC SERVICES DEPARTMENT On motion by Councillor C. Weylie - it was resolved: "That the fees and charges under the Strategic Services Department be approved." Ms. P. Houston advised that based on the amendments and corrections a revised user fee schedule will be presented to Council later this date for ratification. The meeting then recessed at 10:15 a.m. and reconvened at 10:30 a.m., Chaired by Councillor M. Galloway with all members present except Councillor B. Vrbanovic. 2. FIN-04-055 - CAPITAL FORECAST 2005-2014 Ms. Houston introduced the report outlining the 10-Year Capital Forecast (2005-2014) advising that attached to the report is a line by line listing of all the projects currently in the Capital Forecast listed by Department/Division and a list showing all of the changes to the original FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 137 2004 - 166- CITY OF KITCHENER 2. FIN-04-055 - CAPITAL FORECAST 2005-2014 (CONT'D) Forecast that are being recommended by the Administration. Ms. Houston advised that the following assumptions have been made in preparation of the Forecast: Assessment Growth for 2005 is 1% and for 2006-2014 it is 2%; inflation set at 2% for 2005-2014; and, that the debt over the ten year term is 7%. Ms. Houston noted the City's Capital Policy advising, that the increase in Debt Charges must equal Assessment Growth and with respect to Capital Growth, the increase in Debt Charges plus the increase in Capital from current must equal to inflation plus Assessment Growth. Further, the Capital Policy requires that the impact on the tax payers from Capital must not exceed the rate of inflation in that year therefore for 2005 the impact on the tax payers will equal 2%. Ms. Houston advised in a change to the Transfer Philosophy explaining that in 2004 funds from the Gas Works and Hydro Reserve were first transferred to the Tax Stabilization Fund then any surplus to the City Operating and finally transferred to the Capital account. In 2005 it is proposed that the funds from Gas Works and Hydro plus the GST savings on the Operating Budget will be transferred directly into the Capital accounts. She added this will assist in identifying how the GST savings were used under the new Federal Program. Ms. Houston advised that the 2004-2014 Capital Forecast has been based on the philosophy that there is a need to ensure sufficient funds are allocated to maintenance investments before building new. The focus has changed from a one year Capital Plan with a 10-Year Capital Forecast to a 10-Year Capital Investment Strategy. Ms. Houston then reviewed the Capital priorities started in 2003 and of the sources for the pool of Capital funds and provided details of the percentage contribution from each source. She noted that a key assumption that has been made is in respect to the new Fuel Tax allocations from the Provincial and Federal Governments. The assumption is based on 50% of the Fuel Tax given to the Region will be allocated to the City of Kitchener. Ms. Houston then reviewed the specific projects that would receive funding from the Fuel Tax Program. Councillor B. Vrbanovic entered the meeting and assumed the Chair. A general discussion ensued regarding the Fuel Tax Program and Mayor Zehr advised that whereas the Ontario Program has been finalized the Federal Program has not. It was noted that the Fuel Tax will be allocated to large centres with Public Transit. It was noted that there is a need to establish that transit costs include more than vehicles such as sidewalks and road maintenance. Ms. Houston advised that with respect to planned funding from the Federal Fuel Tax Program, staff have devised a contingency plan should the program not go forward as assume. Ms. Houston advised that the specific projects to be funded by debt must be approved by Council before the debt is issued. She then reviewed the Hydro Capital Investment Reserve Fund and funding sources. Councillor J. Gazzola noted that the Capital Pool is reduced by $23M. Ms. Houston advised that this was due to the Economic Development Fund now in its second year reducing the debenture issue. Ms. Houston next advised on the 2004 Capital Surplus Closeouts being approximately $2.4M. Councillor Gazzola requested that Council be provided with details on new Capital accounts and closed out accounts. Ms. Houston advised that a list of closeouts could be provided but that new accounts will not be compiled prior to Budget Day. Ms. Houston list of priority law adopted Forecast. then reviewed the Development Charges projection for the 10-Year period and the projects to be funded by the Development Charge. She advised that the new By- in 2004 is currently under appeal the outcome of which may impact the Capital Ms. Houston then reviewed the Economic Development Fund Projection and the Water, Sewer and Gas projections, noting that with respect to the water rates for 2005, this is the second year of the accelerated rate hike because of the accelerated Infrastructure Renewal Program. Ms. Houston then proceeded to a department by department review of the Capital Forecast. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 137 2004 - 167- CITY OF KITCHENER 2. FIN-04-055 - CAPITAL FORECAST 2005-2014 (CONT'D) GENERAL EXPENSES There was no discussion with respect to the General Expenses. CENTREINTHESQUARE Ms. Houston noted that an additional $320,000 was added to the 2005 Capital Budget for the replacement of the HVAC chiller, as approved by Council. KITCHENER PUBLIC LIBRARY Mayor C. Zehr questioned the need to have the main library chiller replaced in light of the fact that a new main library is being proposed and he asked if the chiller could be repaired. S. Lewis advised that the chiller has been repaired over the last few years and is long past its life cycle. She further explained that the current building will be used for many years and the preferred option is to replace the chiller rather than waiting for it to completely break down. STRATEGIC SERVICES DEPARTMENT Councillor J. Gazzola noted that the new project 'Customer Service Strategy' has been added yet no details have been submitted to members of Council. R. Browning advised that Council will be presented the Customer Service Strategy in June 2005 which may have Capital Funding implications but no funding will be committed without approval by Council. Ms. Houston advised that an issue paper has been circulated to the Committee regarding the Corporate Employee Development Program. Mr. Paterson advised that based on comments received from Council regarding the program it is being recommended that the Capital Funding be reduced from the proposed $114,000 in 2005 to $25,000 and an additional $25,000 per annum for the next two years. Councillor M. Galloway raised a concern explaining that this program has been discussed on several occasions and further requested information has not been submitted from staff. He suggested that the project be reduced to $0 until details on the Comprehensive Employee Development Program has been submitted to Council for consideration. Mayor C. Zehr suggested that is was important for staff morale and support that this project remain in the Capital Forecast. Councillor J. Gazzola explained that he had no problem with the program but did have concerns with the reports and lack of requested. Mayor Zehr suggested that the program remain in the forecast and that $74,000 be allocated in 2005 and $25,000 the following two years. On motion by Councillor G. Lorenz- it was resolved: "That the Employee Development Program, listed in the Capital Forecast, be deferred and referred to the January 31,2005 Budget meeting." Ms. Houston noted the change in the Downtown Incentive Funding with respect to funding from the Fuel Tax Program. Councillor M. Galloway requested information on the Corporate Website Project and how the funds are to be spent. Mr. Grummett advised that the Capital Funding would be for server upgrades, software and approximately $25,000 for a web design consultant. The meeting then recessed at 12:20 p.m. and reconvened at 1:05 p.m. Chair by Councillor B. Vrbanovic with all members present. The Committee continued its review of the Capital Budget Forecast 2005-2014 department by department. FINANCIAL SERVICES DEPARTMENT Ms. Houston noted the new Utility Payment Equipment Replacement Project. Mayor C. Zehr inquired as to the status of an automated meter reading program. Ms. Houston advised that the last cost analysis showed that automated meter reading was still not a viable option at this time. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 137 2004 - 168- CITY OF KITCHENER 2. FIN-04-055 - CAPITAL FORECAST 2005-2014 (CONT'D) CORPORATE SERVICES DEPARTMENT Mr. Sosnoski advised of the Budget Issue Paper circulated to the Committee regarding the consolidated maintenance facility. A brief discussion ensued on the project and it was agreed that further discussion on the consolidated maintenance facility is to take place at the January 10, 2005 Finance and Corporate Services Committee meeting. COMMUNITY SERVICES DEPARTMENT With respect to the new community arena/twin pads project, the Committee was advised of a Budget Issue Paper circulated recommending that a business case be developed outlining the range of options which is to be presented to Council as soon as possible and a final decision will occur based on demand, the business case and upgrade cost availability. Councillor G. Lorentz suggested that no decision regarding this project take place until the business case has been developed and discussion with users and stakeholders has taken place. He further advised that the business case needs to align with the Leisure Facility's Master Plan which is scheduled to be completed and presented the Council early in 2005. Mr. Sosnoski advised that in reviewing the project the Committee has had regard to the Leisure Facility Master Plan and is investigating upgrading existing arenas as an option. Councillor J. Gazzola requested that the Committee be provided with information on the costs to convert some of the existing arenas into double or triple ice pads. On motion by Councillor G. Lorentz- it was resolved: "That a Business Case be developed for the Twin Pad Arena outlining the full range of options and the recommended course of action based on the results of a Demand Analysis combined with direction in the Leisure Facility Master Plan, the same to be presented to Council as soon as possible in 2005; and further, That final decisions occur in concert with the Demand Analysis, the Business Case and upgrade costs availability (spring 2005)." Councillor J. Gazzola pointed out that the Market general provision project has increased $400,000 over last year's forecast and he inquired as to why this has happened. Mr. K. Baulk advised that the additional $400,000 is to meet the demands of the vendors such as refrigeration, exhaust, electrical and gas connection, etc. Councillor Gazzola requested further information and details on the $400,000 increase with respect to the Market Project. Councillor M. Galloway raised the issue of aligning the construction of various City facilities into a cluster type development such as building a library with a community centre or with a fire station. He inquired if staff have looked at this in regards to the planned fire station. Mr. F. Pizzuto advised that the Leisure Facility Master Plan will be presented to Council early in the new year at which time it would be appropriate to see if any proposed facilities in that plan could be aligned with other planned facilities such as the fire station. Mr. D. Trask advised that the land to be purchased for the new fire station must be in a specific area due to fire response time and that no purchase has been made at this time. It was agreed that staff be directed to investigate the development of municipal nodes or cluster type development of mixed use municipal facilities. Councillor G. Lorentz requested that Council receive an update on the land negotiations at the in-camera meeting to be held later this date. Councillor J. Gazzola pointed out with respect to aquatics, there was a significant increase in the cost of the planned pool in 2013. Mr. Gross advised the cost have been adjusted to reflect recent actual costs for construction of a pool. Councillor Gazzola requested that Council receive information and details on large changes in cost for all existing projects as part of the Capital Budget and Forecast report. Mayor C. Zehr pointed out that the pedestrian bridge which is to be constructed as part of the Walter Bean Trail is not part of the Capital Forecast. Ms. Houston advised that since this is not a City project, it has not been shown in the past. Mr. K. Currier advised that staff will provide FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 137 2004 - 169- CITY OF KITCHENER 2. FIN-04-055 - CAPITAL FORECAST 2005-2014 (CONT'D) information on this construction project. DEVELOPMENT AND TECHNICAL SERVICES DEPARTMENT Councillor C. Weylie raised the concern regarding the funding allocation for the relocation of the Pioneer Log Cabin in that the funding is spread over three years (2005-2007) with nothing allocated in the middle year. She suggested that the allocation be moved to ensure the project is completed within two years. On motion by Councillor C. Weylie - it was resolved: "That the allocation for Project 700201001 (Relocation - Pioneer Log Cabin) of $58,000 be moved from 2007 to 2006." With respect to projects listed under storm drain and creek improvement Mayor C. Zehr declared a pecuniary interest regarding the Stonegate Drive Slope Stabilization Project as he owns a residence that will be affected by the project. Ms. Houston concluded the presentation and discussion on the Capital Budget and 10-Year Forecast advising that the Capital Budget will be presented to the Committee on January 31, 2005 for adoption. 3. ADJOURNMENT On motion, the meeting adjourned at 2:55 p.m. R. Gosse, Deputy City Clerk