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HomeMy WebLinkAboutFinance & Corp - 2001-11-30 SFINANCE & CORPORATE SERVICES COMMITTEE MINUTES NOVEMBER 30, 2001CITY OF KITCHENER The Finance and Corporate Services Committee met this date in special session, commencing at 9:07 a.m., chaired by Councillor J. Ziegler with the following members present: Mayor C. Zehr and Councillors C. Weylie, M. Galloway, G. Lorentz, J. Smola. Councillor B. Vrbanovic entered the meeting shortly after its commencement. Others Present: Ms. P. Houston, Ms. G. Luciantonio, Ms. D. George, Ms. S Henderson, Ms. S. McDonald, Ms. R. Upfold, Ms. C. Ladd, Ms. F. Currier, Ms. D.Gilchrist, and Messrs, J. Fielding, R. Pritchard, F. Pizzuto, G. Sosnoski, N. Kuntz, S. Gyorffy, B. Stanley, O. den Ouden, M. Grummett, L. Proulx, S. Saleh, L. Lynch, D. Mansell, J. McBride, D. Quinn, R. Gosse, B. MacDonald, D. Hergott, K. Baulk and B. Trushinski. 1. 2002 CAPITAL BUDGET & 10 YEAR CAPITAL FORECAST The purpose of this special meeting was to review the 2002 Capital Budget & 10 Year Capital Forecast (2002 – 2011) as recommended by the Administrative Review Committee. Ms. P. Houston provided an overview of the Capital Budget and Forecast noting that staff had used the following percentages: Assessment Growth – 1% (2002) and 2% (2003 – 2011); inflation – 2% (2002 – 2011); interest on Debt (ten year term) 7%. Ms. Houston noted the interest rate has been reduced from 8% used in previous Forecasts, resulting in an increased capacity in the Forecast of $140,000. per year. She then reviewed the City’s Capital Policy and the impact of the proposed budget on the average tax payer, noting that a 2% increase translates into a $3.69 tax increase based on average market values. Ms. Houston then advised that the City’s per capital debt in 2000 was $91.00 compared to $38.00 in Cambridge and $638.00 in Waterloo. Mayor Zehr requested a comparison of reserves to debt for the three municipalities, and Ms. Houston advised that she will obtain the requested information. Ms. Houston advised that the departments’ submissions resulted in an overall short fall $19M. Following the Administrative Review, the Capital Budget proposed today will have a surplus of $12M; however, some consideration needs to be given to moving or reconsidering some of the projects in the first two years of the Capital Forecast, as these two years are currently in a short fall position. Ms. Houston reviewed the Capital Pool for the 10 Year Forecast, by year, including capital from current, debenture issue, gas and the Hydro Capital Investment Reserve. Ms. Houston noted that the Capital Forecast by department results in a total expenditure for 2002 of $421M, following Administrative Review. She then advised that of the capital surplus for 2001, $100,000. can be allocated to the 2002 Capital Budget. Ms. Houston then reviewed the Development Charges Reserve for 2001 – 2006 noting a $1.6M surplus for 2001, but the reserve being in a deficit position by 2006. She noted that the money from the Impost Reserve Fund has been transferred to the Development Charges Reserve Fund. She pointed out the priority projects to be funded from development charges noting that the first four projects are totally committed, the rest to be completed if funds are available. Ms. Houston proceeded to review highlights of the 10 Year Capital Forecast, department by department, advising that if the Committee requests any further information, staff will provide it on or before Budget Day. She again pointed out there are short falls in certain areas that need to be addressed. Ms. Houston then reviewed highlights of the Capital Budget and Forecast for the Development and Technical Services Department, beginning with the Fire Service. Councillor G. Lorentz questioned where the new fire station, proposed in 2005, will be located. Mr. N. Kuntz noted that in 2005 only the cost of land is included in the Capital Forecast, and stated it is proposed to be located in the vicinity of Huron Road and Fischer-Hallman Road, and is timed for the development at the Activa subdivision. He advised that discussions have commenced with the developer for a location. Councillor Lorentz questioned whether the developer will support a community centre in 1. 2002 CAPITAL BUDGET & 10 YEAR CAPITAL FORECAST (CONT’D) FINANCE & CORPORATE SERVICES COMMITTEE MINUTES NOVEMBER 30, 2001- 133-CITY OF KITCHENER conjunction with the fire station, as was done in Forest Heights. He directed staff to pursue such discussion with the developer and report to the Community Services Committee. Ms. Houston next reviewed highlights of the Capital Budget and Forecast for Roads, the City’s Share of Regional Roads and Sanitary Sewers. Mayor Zehr questioned the Region’s timing for the Grand River South Sewage Study and Grand River Trunk. Mr. D. Mansell advised that all proposed sanitary sewer works will be required and in place prior to the Region finalizing the Grand River Trunk. Once the Grand River Trunk has been constructed, there are seven or eight pumping stations that could come off-line, resulting in operating savings of approximately $25,000. per year per station. Mr. Mansell also advised that a consultant will be hired to estimate upgrade needs of all the City’s pumping stations. Mayor Zehr directed that before such a review is undertaken and Ms. Houston then reviewed highlights of the Capital Budget and Forecast for Storm Sewers, Street Improvements and Business and Planning Services. Councillor Weylie questioned the 911 project and Mr. B Stanley advised that a report will be brought forward in this regard early in the new year. On motion by Councillor G. Lorentz - it was resolved: “That the 2002 Capital Budget & 10 Year Forecast for the Development and Technical Services Department be approved as recommended.” This meeting of the Finance and Corporate Services recessed at 10:20 a.m. and reconvened at 10:50 a.m. with all members present. Ms. Houston then reviewed highlights of the Capital Budget and Forecast for the Corporate Services Department. The Committee questioned the City Hall renovations, and Mr. G. Sosnoski advised that the renovations are in fact to take place in the office space at the Duke Street parking garage, in order to accommodate Enforcement staff. He advised that a report will be presented to this Committee, in this regard, in early January. On motion by Councillor B. Vrbanovic – it was resolved: “That the 2002 Capital Budget & 10 Year Forecast for the Corporate Services Department be approved as recommended.” Ms. Houston then reviewed highlights of the Capital Budget and Forecast for the Financial Services Department. Following extensive discussion with regard to the potential of combining meter reading functions with Kitchener-Wilmot Hydro Inc., staff of Utilities were again requested to work with Hydro on a collaboration for meter reading. With respect to the water utility, staff advised that they are reviewing infrastructure requirements and will provide a report prior to Budget Day. On motion by Councillor C. Weylie – it was resolved: “That the 2002 Capital Budget & 10 Year Forecast for the Financial Services Department be approved as recommended.” 1. 2002 CAPITAL BUDGET & 10 YEAR CAPITAL FORECAST (CONT’D) FINANCE & CORPORATE SERVICES COMMITTEE MINUTES NOVEMBER 30, 2001- 134-CITY OF KITCHENER Ms. Houston then reviewed highlights of the Capital Budget and Forecast for the Strategic Services Department. On motion by Councillor B. Vrbanovic – it was resolved: “That the 2002 Capital & 10 Year Forecast for the Strategic Services Department be approved as recommended.” Ms. Houston then reviewed highlights of the Capital Budget and Forecast for the City’s General Expenses. Ms. Houston noted the inclusion of an actuarial study on the City’s post-retirement liability being required by the City’s Auditor. Following discussion, Ms. Houston agreed to find out if this information could be obtained and provided to the Auditors by a different method. On motion by Councillor C. Weylie – it was resolved: “That the 2002 Capital & 10 Year Forecast for General Expenses be approved as recommended.” Ms. Houston then reviewed highlights of the Capital Budget and Forecast for the Community Services Department. Several Committee members advised of their disagreement with moving the Chandler-Mowat Community Centre to 2005 and the Community Centre for the south end of Kitchener 2009. Councillor Galloway noted the extensive community involvement in planning for the Chandler- Mowat Community Centre and its use to the point that program space must be obtained elsewhere. He asked that the timing of future community centres be highlighted for Budget Day. Councillor J. Smola voiced strong opposition for funding traffic signals which he felt should be paid for by the Region. It was pointed out by staff that the City will be reimbursed for a large portion of the cost of these signals, once they are warranted by the Region. Councillor Smola gave the opinion that the Region should be prepared to be flexible in their warrant policy, if these traffic signals are a necessary measure. Mayor Zehr advised of his agreement with Councillor Smola position; however, noted that if he were to take this request to the Region, it would have to compete with similar requests for other municipalities. Councillor J. Smola asked to be recorded as being an opposition to including the cost of the three traffic signals; Fischer-Hallman Road, Bleams Road at Century Hill and Lackner Blvd, in the Capital Budget & Forecast. It was generally agreed that the matter of Regional Council’s policy on warrants with traffic signals be raised with Kitchener’s representatives on Regional Council, and that this issue be raised again on Budget Day. The Committee then reviewed the Capital Budget and Forecast for Parking, and Mayor Zehr questioned whether there was any opportunity for flexibility in the 55/45 funding split between the tax base and parking fees. Ms. Houston advised that she will review this funding split and report to the Committee on Budget Day. The Committee next reviewed the Capital Budget & Forecast for Streetlights. Councillor Weylie requested that the Capital costs of downtown street lighting be included in this Capital Budget and Forecast, with Streetlighting to be highlight for Budget Day. Ms. Houston then reviewed the Capital Budget and Forecast for the Golf Courses. 1. 2002 CAPITAL BUDGET & 10 YEAR CAPITAL FORECAST (CONT’D) FINANCE & CORPORATE SERVICES COMMITTEE MINUTES NOVEMBER 30, 2001- 135-CITY OF KITCHENER On motion by Councillor B. Vrbanovic - it was resolved: “That the 2002 Capital Budget & 10 Year Forecast for the Community Services Department be approved as recommended.” Ms. Houston outlined highlights of the Capital Budget and Forecast for the Centre in the Square noting that no changes are proposed. On motion by Councillor B. Vrbanovic - it was resolved: That the 2002 Capital Budget & 10 Year Forecast for the Centre in the Square be “ approved as recommended.” Ms. Houston outlined highlights of the Capital Budget and Forecast for the Kitchener Public Library. She noted that a new Library Headquarters is being included in the Forecast, without funding. Following discussion on the need to budget for a new Library Headquarters and the Main Branch Auditorium upgrade, Ms. Houston advised that a feasibility study is to be undertaken before the library proceeds with a new Headquarters. Councillor B. Vrbanovic put forward a motion to approve the Kitchener Public Library Capital Budget and Forecast, subject to removal of the new Headquarters. Mayor Zehr questioned the allocation for “Book Reserve”, and how it is progressing. Ms. Walshe advised that, to date staff have targeted the most vulnerable areas of the library, and looked at electronic replacements as much as possible. She cautioned that the exchange rate for the American dollar has increased and she anticipates a dramatic increase in the cost of paper. Mayor Zehr then questioned the need to budget $100,000. annually when expenditures over that last two years have only been $30,000. to $40,000. And asked that this item be highlighted for 2003 Capital Budget and Forecast discussions. On motion by Councillor B. Vrbanovic – it was resolved: That the 2002 Capital Budget & 10 Year Forecast for the Kitchener Public Library be “ approved as recommended, subject to removal of ‘New Library Headquarters’.” Ms. Houston advised that she had concluded the presentation of the Capital Budget and Forecast, and reminded the Committee that there is still a shortfall of $1.7M in 2002 and $1.9M in 2003. Councillor Ziegler directed staff to circulate a list of projects which could be moved or removed from the 10 Year Capital Forecast. 2. ADJOURNMENT On motion, the meeting adjourned at 1:20 p. m. Dianne H. Gilchrist Committee Administrator