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HomeMy WebLinkAboutFinance & Corp - 2001-12-17FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 17, 2001CITY OF KITCHENER The Finance and Corporate Services Committee met this date, in special session, chaired by Councillor J. Ziegler, commencing at 9:10 a.m., with the following members present: Mayor C. Zehr and Councillors C. Weylie, M. Galloway, B. Vrbanovic, G. Lorentz and J. Smola. Others Present: Ms. P. Houston, Ms. G. Luciantonio, Ms. T. Crawford, Ms. D. George, Ms. S. Adams, Ms. R. Upfold, Ms. S. McDonald, Ms. S. Henderson, Ms. M. Bulin, Ms. B. Baker, Ms. M. Brennan, Ms. R. Pitfield, Ms. D. Wittig, Ms. F. Currier, Ms. S. McMorran, Ms. M. Walshe, Ms. S. Franzen, Ms. D. Gilchrist and Messrs. J. Fielding, R. Pritchard, G. Sosnoski, F. Pizzuto, R. Gosse, S. Turner, G. Borovilos, S. Saleh, S. Gyorffy, B. Stanley, H. Gross, M. Grummett, N. Kuntz, J. McBride, R. Weber, D. Daly, B. MacDonald, L. Proulx, D. Paterson, B. Musselman, D. Quinn, M. Tout, J. Grant, J. Shivas and K. Baulk. Mr. G. Sosnoski introduced Mr. S. Turner, the City’s first Director of Enforcement, and welcomed him to the City of Kitchener. 1.2002 OPERATING BUDGET Mr. J. Fielding introduced the proposed 2002 Operating Budget which is supported by a 2.5% municipal tax increase. Following the Administrative Review Committee’s review the proposed tax increase was 7.3%; however, Management Committee understood such a tax increase would be unacceptable and have done the following to achieve a 2.5% municipal tax increase: 1) An additional draw $1.3M from the Tax Stabilization Reserve Fund; 2) Replenish the Tax Stabilization Reserve Fund with $1.5M from the Gas Utility; 3) Allocating an additional $1.5M from the Gas Utility to Capital to offset a shortfall in the Capital Budget Forecast; 4) Attempting to delay, defer or cancel some initiatives; 5) Eliminating the 2% allocation from the Operating Budget to provide for inflationary growth in Capital Projects for 2002 and possibly 2003; 6) Increasing our savings from gapping by being diligent in management of vacancies and overtime; 7) Increasing or adjusting some revenues; 8) Finding some additional savings and efficiencies; and 9) Making some minor adjustments to service levels. Mr. Fielding advised that included in this Budget presentation are a list of “add” and “cut” options for the Committee’s consideration, with a specified dollar amount and impact on the tax structure for each. The Administration is also recommending the City take a five year view, with 2002 and 2003 having targeted tax increases of 2.5% and 2.2% respectively. Starting in 2004, a rolling three year Budget will be established, founded on a better appreciation of costs and better reporting procedures; each of the three years to have a targeted tax increase of 2%. Mr. Fielding then thanked staff for the extensive work undertaken to bring forward a Budget which is fiscally responsible, yet retains or enhances current service level. Ms. P. Houston explained the 2002 Operating Budget will be presented as a whole rather than department by department, noting the average increase per household of a 2.5% tax increase would be $17.85. She provided an overview of the previous 10 years noting: the City’s tax rate increase has been below the rate of inflation; provincial grants have almost completely disappeared; Sundry Income has dropped; the $1.1M surplus from the previous year has disappeared; and Interest Income has dropped from $3.3M in 1992 to $1M anticipated for 2002. In response to a comment from Councillor Lorentz that Five Plans have not worked in the past, Ms. Houston advised that staff will commence work on the 2003 Budget as soon as the current Budget is approved. In addition, Council will receive quarterly reports on the current year’s budget, and departments will be required to monitor their budgets on a regular basis. Councillor Vrbanovic asked if Activity Based Costing will be introduced, and Ms. Houston advised a report will be presented early in the new year. The Committee considered the 2002 Operating Budget for the Centre in the Square and the Kitchener Public Library, each of which proposes a 3% increase over 2001. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 17, 2001- 137-CITY OF KITCHENER 1. 2002 OPERATING BUDGET (CONT’D) Ms. M. Walshe was in attendance with respect to the Library Operating Budget and explained their reduction strategy, including an increase in non-resident fees from $20.00 to $26.00, and, if required, a delay in Saturday opening for all branches, of half an hour. The total savings anticipated are $40,000. Ms. Walshe advised that per capita spending on libraries in the Region is $32.00 for Kitchener, approximately $25.00 to $27.00 for Cambridge and approximately $20.00 for Waterloo. She noted that libraries in the Townships, at approximately $14.00 per capita, are not really comparable, as they receive larger grants from the Province. Councillor Ziegler directed Ms. Walshe to track library usage for the first half hour of Saturday operations, once the opening time changes. Mr. J. Grant was in attendance to answer any questions with respect to the Operating Budget for the Centre in the Square. He advised of their recent strategic plan, including increased sponsorships, which he anticipated would increase their revenues by $200,000. in 2004. With respect to Centre in the Square surpluses, Ms. Houston advised the City’s portion goes to the Tax Stabilization Reserve Fund, and in 1999 was $35,000. and $50,000. in 2000. Mr. Grant estimated the City’s portion of the 2001 surplus will be $100,000. On motion by Councillor B. Vrbanovic - it was resolved: “That the 2002 Operating Budget for Kitchener Public Library and the Centre in the Square be approved as submitted by Management Committee.” Ms. Houston continued her presentation, highlighting: changes in the levy, revenue changes, growth, service levels, corporate reorganization and savings/efficiencies. With respect to new traffic signals, Mayor Zehr advised that he took this Committee’s comments, made it the November 30, 2001, meeting to Regional Council, and in the new year staff will present a report on changing the Region’s policy with respect to warrants. With respect to budgeted amounts for wage settlements, Councillor Lorentz directed staff to provide a report on how many staff in each union are affected, how many have settled, including percentage increases, and how many contracts are still being negotiated. Councillor Lorentz stated the City should be promoting the efficiencies achieved through its Street Lighting Project, the capital costs of which have now been paid. He also noted the City of Calgary undertook a similar project and directed staff to undertake a comparison with Calgary’s project. The Committee directed staff to review their proposal to cut funding for the Mike Wagner Heritage Awards and a deferral of the Urban Design Awards, as well as information on the Environmental Awards and submit a report prior to Budget Day. The Committee discussed proposed parking fine increases and Councillor Lorentz directed staff to provide a report on handicapped parking fines, and a survey of what other municipalities are charging. Mayor Zehr directed that the report include a survey of all parking fines charged by other municipalities, including London and Mississauga. Councillor C. Weylie requested a report outlining options with respect to the parking courtesy program. Ms. Houston reviewed a list of further expenditures which could be included in the Operating Budget as well as further potential savings/revenues. Following discussion, the Committee directed that staff present reports, or resubmit existing reports, on each of these items prior to Budget Day. Mayor Zehr directed that the position of “Backflow Inspector” be highlight for Budget Day. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 17, 2001- 138-CITY OF KITCHENER 1.2002 OPERATING BUDGET (CONT’D) Ms. Houston reviewed the ten year projections for the City’s Enterprises, and reviewed the City’s Reserve Funds. With respect to Water Works, Ms. Houston advised that an infrastructure review is currently underway and staff will report in March or April. Councillor J. Ziegler, on behalf of himself and Council, congratulated Mr. S. Gyorffy on his retirement and thanked him for all his years of service to the City of Kitchener and the community. . 2ADJOURNMENT On motion, the meeting adjourned at 11:45 a.m. Dianne H. Gilchrist Committee Administrator