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HomeMy WebLinkAboutFinance & Admin - 2001-01-10 SFINANCE & ADMINISTRATION COMMITTEE MINUTES JANUARY 10, 2001CITY OF KITCHENER The Finance and Administration Committee met this date in special session commencing at 9:10 a.m. and Chaired by Councillor J. Ziegler with the following members present: Mayor C. Zehr, Councillors C. Weylie, J. Smola, B. Vrbanovic, M. Galloway and G. Lorentz. Others present: Ms. P. Houston, Ms. G. Luciantonio, Ms. D. George, Ms. S. Adams, Ms. B. Baker, Ms. C. Ladd, Messrs.: J. Gazzola, J. Shivas, B. Kuntz, S. Gyorffy, D. Mansell, H. Gross, J. McBride, L. Lynch, R.W. Pritchard, D. Paterson, R. Keirstead, C. Pomeroy, L. Proulx, D. Hergott, O. den Ouden, B. Stanley, J. Witmer, F. Pizzuto, D. Daly, K. Baulk, R. Weber and G. Sosnoski. The purpose of this special meeting was to review the 2001 Capital Budget and 10 Year Forecast (2001- 2010) as recommended by the Administrative Review Committee. 2001 Capital Budget and 10 Year Capital Forecast 1. Ms. P. Houston provided an overview of the Capital Budget & Forecast noting that staff have used the following percentages: assessment growth – 1% (2001) and 2% (2002-2010); debt (10 year term) – 8%; inflation – 2% (2002-2010). She reviewed the City’s Capital Policy and the impact of the proposed budget on the average taxpayer, noting that a 2% increase translates into a $2.85 tax increase based on average market value. Ms. Houston noted that the City of Kitchener’s per capita debt in 1999 was $71 compared to $48 in Cambridge, $212 in Waterloo, $135 in Burlington and $200 for the Regional Municipality of Waterloo. Ms. Houston noted that the Administrative Review Committee is recommending gross expenditures of approximately $377 million over the term of the Forecast. She pointed out that the amounts for surplus close-outs are lower than in previous years and this reflects increasing construction costs as well as the fact that departments are budgeting closer to actual costs. Ms. Houston reviewed development charges and priorities noting an opening balance of $4.3 million, and an estimated closing balance (net of revenues and expenses) of $2.5 million. She added that development charge revenue in 2001 is budgeted at approximately $3.3 million. Ms. Houston then reviewed the recommended development charge projects in priority order, and these are as follows: Fire Station #3 relocation; Shirley Avenue/Lackner Boulevard extension; Blockline Road East; Laurel Creek; Church Street/Madison to Benton; equipment acquisitions/upgrades; general park development; major park development; community trails; City’s share of subdivisions; engineering studies; and, new watermains. Ms. Houston spoke to Finance Department report FIN-00-028 (P. Houston) dated December 28, 2000 recommending the establishing of a Hydro Capital Investment Reserve Fund to be funded from all revenues generated by the City’s investment in the Kitchener Power Corporation and related companies. The report also recommends that the purpose of the Tax Stabilization Reserve Fund be amended, and include transfers from the Hydro Capital Investment Reserve Fund. Ms. Houston noted that the City currently shows $12.3 million in contributions from the hydro utility, but that the Budget & Forecast does not include any dividends the City may receive, as the amount and reliability is not known at this time. Mayor Zehr expressed concern that the staff recommendation suggests the expenditure side of the Hydro Reserve Fund be fixed to the tax levy, which assumes that the Fund will always be stable. He suggested that this portion of the recommendation be amended to reflect that this transfer would be to a maximum of the percentages listed. He also suggested that it is wise to not plan on dividends from the hydro utility, as there are no assurances these will be paid regularly. Councillor G. Lorentz referred to previous direction from Council that funding be made available for new community centres, noting that the first of these only appears in the Forecast in 2009. Councillor B. Vrbanovic indicated his surprise with the approach taken by staff in regard to community centre financing, suggesting that the entire public process undertaken was being ignored and that funding reverted in the previous Capital Forecast. He suggested that when the City undertakes a comprehensive study such as the Monteith Report, and the community is involved there is a level of expectation that the City will follow through on the actions agreed to. Ms. Houston replied that new facilities impacting the Capital & Operating Budgets pose a greater funding concern for staff. She noted that all Council priorities were taken into consideration, and FINANCE & ADMINISTRATION COMMITTEE MINUTES JANUARY 10, 2001- -CITY OF KITCHENER 6 2001 Capital Budget and 10 Year Capital Forecast - (Cont’d) 1. that it is Council’s prerogative to reallocate projects and funds as it sees fit. Mr. Gazzola added that staff had not meant to disregard Council’s direction; however, the projects endorsed by Council were not referred to budget on a priority basis. He suggested that in future Council may wish to specify a priority for given a project and this will assist staff in determining which projects should be given precedence over others. Mr. Gazzola added that staff attempt to balance the Capital Forecast, but in the final analysis it is Council’s decision as to what is included and where. Fire Department Ms. Houston reviewed highlights of the Capital Budget and Forecast for the . Mayor Zehr requested additional information in regard to the computerization initiatives undertaken by the Fire Department. Councillor Vrbanovic questioned the reduction in the allocation for the training building and the fact that it is being moved back one year in the Forecast. Fire Chief Kuntz replied that consideration is being given to partnering with all the local municipalities in regard to the construction and use of the training building. A brief discussion took place concerning a proposed delivery of fire fighter training by Conestoga College, and Councillor Vrbanovic asked that staff look at partnering options, including the possibility of the College utilizing the City’s training building, should Kitchener be asked to assist them in the delivery of this training. On motion by Councillor B. Vrbanovic – It was resolved: “That the 2001 Capital Budget and 10 Year Forecast for the Fire Department be approved as recommended.” Public Works Ms. Houston reviewed highlights of the Capital Budget and Forecast for the Department . She noted that in order to give Council a comprehensive overview of road projects, individual water main portions of the budget have been included rather than as part of the water utility budget. Councillor Lorentz inquired as to the status of the Queen/Benton Diversion. Mr. Gross replied that this will not be known until the Region has completed the Class Environmental Assessment process for Victoria Street. Mr. Gyorffy added that it is expected this information will be available this month or early next when the Region advises as to the outcome of the assessment studies, at which time staff will bring back a report. Councillor Vrbanovic requested further information as to the extent of the Weber/Shantz to Kinzie project (Capital Projects – City Share Regional Roads). Mayor C. Zehr disclosed a pecuniary interest and abstained from all voting and discussion concerning the Stonegate Drive Slope Stabilization listed under Capital Projects – Storm Drain & Creek Improvements, as he owns property on Stonegate Drive. Councillor Vrbanovic inquired as to the status of the Grand River Slope Stabilization, and Mr. Gyorffy replied that the project is in the Forecast for 2003. He added that staff are monitoring the situation and will move the project up if the situation deteriorates; however, there is no way to accurately predict when the slope will deteriorate significantly. Councillor Lorentz inquired as to the Sandrock Greenway Naturalization Project. Mr. Gyorffy replied that this is being undertaken as a Winter Works project and must be undertaken in the Spring or Fall. He added that runoff conditions often make it difficult to complete such work; however, the department is planning to complete the project in the Spring of 2001, subject to site conditions. Councillor Lorentz advised that the community is concerned over the apparent lack of action to date, and asked that a report outlining the options and issues for this project be brought back to the Public Works and Transportation Committee for consideration. In regard to the Street Improvements budget & forecast, Councillor Galloway noted that the Doon Village Road street improvements from Becktel to Tilt are now in 2003 in the Capital Forecast. He noted that it was his understanding this was to be completed in conjunction with the Monarch Development, which is now to take place in 2001. Mr. Mansell advised that the original indication was that this would be done in conjunction with the Wyldwoods C Phase, which he FINANCE & ADMINISTRATION COMMITTEE MINUTES JANUARY 10, 2001- -CITY OF KITCHENER 7 2001 Capital Budget and 10 Year Capital Forecast - (Cont’d) 1. understood has moved from 2003 to 2005. He read excerpts from a letter received from Monarch Construction noting that the stage registration would take place in 2002. Mr. Mansell further indicated that Monarch is now asking for 2001 construction and staff are attempting to advance the project from 2003 to 2001/2002. He added that this project was initially to be paid for by Monarch; however, it now has to be financed from development charge funds. Mr. Mansell further noted that a report is planned for the January 22, 2001 Public Works and Transportation Committee meeting. Mayor C. Zehr referred to the timing of the Blockline Road East project, being road access to the new high school, and questioned why funding had been split between 2001 and 2008. Mr. Mansell replied that there is a $3.2 million increase to the cost of the project due to the necessity of constructing a bridge, and this amount must be included in the Development Charge By-law. He indicated that staff will look at moving the balance of the expenditures up in the Forecast. Councillor Ziegler inquired whether the project would be eligible under the Province’s Superbuild Program. Mr. Mansell replied that it would not as roads and bridges are not currently part of this Program, though staff are looking at other funding options. Mr. Gazzola added that in future there may be additional Superbuild funding for other classes of projects; however, to date there are only funds for community services. Mayor Zehr further noted that Blockline was to have a $2.4 million expenditure in 2001, which has been reduced to $1.2 million with the balance pushed back in the Forecast. Mr. Mansell replied that it is mandatory to build the Blockline Road to Fallowfield portion in 2001; however, it is not necessary to extend the road to the far side of the School Board site at this time. Councillor Ziegler referred to the Wabanaki Drive/Wilson to Fairway street improvement project noting that an emergency connection only is being planned in 2001. He suggested that construction of Wabanaki Drive from Fairway to Goodrich would relieve congestion at Wilson Avenue and Fairway Road, this intersection being too small to accommodate the present volume of traffic. He suggested that this project should be included in the 2001 Capital Budget at a cost of approximately $1 million. Mr. Mansell replied that he agreed with the comments of Councillor Ziegler; however, the problem is the limited amount of funding in development charges. He noted that Council has included several such projects in the year 2001, including libraries, the community centre and the Doon Village Road diversion and added that development charge funds are not available for all of these projects. Councillor Ziegler argued that there is an immediate safety problem in this area and a second access is required not only for emergency vehicles but to relieve overall traffic congestion in the area. He suggested that it should be a priority in 2001 and that the Shirley/Lackner Extension could possibly be postponed an additional year. Mr. Gazzola commented that if all of these projects are priorities of Council, the City will have to look at either re-allocating funds or increasing its debt. A discussion took place concerning additional parking garages in the Downtown. Mr. McBride advised that the Downtown Parking Study is near completion and a report will be submitted shortly. He noted that a new garage in conjunction with the Farmers’ Market and a second garage in the Downtown are being contemplated; however, at this time it is unclear as to what percentage of the overall Downtown parking demand will be taken up by the proposed Farmers Market garage. Councillor Lorentz inquired as to the feasibility of private sector partnerships in regard to the second garage. Mr. Gazzola added that two garages may not be enough given the existing and planned development in the Downtown. He noted that staff are trying to encourage private sector contributions, unfortunately parking is not seen as a profitable business and such contributions are difficult to obtain. Water & Gas Utilities Ms. Houston then reviewed the Capital Budget & Forecast for the . On motion by Councillor J. Smola – It was resolved: “That the 2001 Capital Budget & 10 Year Forecast for the Public Works Department (including the Water & Gas Utilities) be approved at this time as submitted, and subject to staff reporting to how a $1 million allocation for the Wabanaki Drive street improvement (Fairway to Goodrich section) can be accommodated in the 2001 Capital Budget; and further, That the above change to the Capital Budget be referred to a list of outstanding issues for consideration on or before Budget Day.” FINANCE & ADMINISTRATION COMMITTEE MINUTES JANUARY 10, 2001- -CITY OF KITCHENER 8 2001 Capital Budget and 10 Year Capital Forecast - (Cont’d) 1. Mayor C. Zehr previously disclosed a pecuniary interest and abstained from all voting and discussion concerning the Stonegate Drive Slope Stabilization listed under Capital Projects – Storm Drain & Creek Improvements, as he owns property on Stonegate Drive. Corporate Ms. Houston reviewed highlights of the 2001 Capital Budget & 10 Year Forecast for the Services Department . Mr. Pizzuto referred to the well closure item in the Facilities Management 2001 Capital Budget, noting that this relates to a management decision to supply City water to the Doon Valley Golf Course, as well as the Victoria Park Pavilion and Kiwanis Park. The wells to be closed presently supply both irrigation and potable water. Mayor Zehr referred to a previous report on the payback to the City of various energy projects. He asked that staff highlight this issue and include the payback savings in the individual department Operating Budgets. He stressed the need to remove costs from Operating Budgets once project costs have been recovered. Ms. Houston noted that the savings are identified; however, they may only appear as incremental amounts over time. Councillor Galloway questioned the allocation in the Human Resources Division budget for new office construction. Mr. Paterson replied that additional space is required for the new Health & Safety Officer. Councillor Galloway expressed concern over the accumulated costs of various changes to the City Hall building, and asked that staff investigate other available offices in City Hall and submit an alternative plan in this regard. Mr. Gazzola indicated that he would report back to Council on or before Budget Day in regard to the issues of office renovations and furnishings. On motion by Councillor B. Vrbanovic – It was resolved: “That the 2001 Capital Budget & 10 Year Forecast for the Corporate Services Department be approved as recommended, subject to a report from J. Gazzola concerning options for providing office space for the new Health & Safety Officer in the Human Resources Division.” Finance Ms. Houston reviewed highlights of the 2001 Capital Budget & Forecast for the Department , noting that there are no changes. On motion by Councillor M. Galloway – It was resolved: “That the 2001 Capital Budget & 10 Year Forecast for the Finance Department be approved, as recommended.” Ms. Houston reviewed highlights of the General Expenses Capital Budget & Forecast. She noted that funds have been included in regard to the corporate website with a report to be submitted for consideration at the January 22, 2001, Finance and Administration Committee meeting. Mayor Zehr asked for a report, on or before Budget Day, providing details on the proposed work and expenditures for Rockway Garden improvements. He questioned whether savings would result if the two stages of the project were combined in 2001, as no work was begun in 2000. Councillor Ziegler asked that the allocation for the Downtown Projects (for which no specific work is proposed at this time) be highlighted as a possible source of revenue for other 2001 Capital projects. On motion by Councillor G. Lorentz – It was resolved: “That the 2001 Capital Budget & 10 Year Forecast for General Expenses be approved as recommended, and subject to a possible reduction to the 2001 allocation for Downtown projects; and further, FINANCE & ADMINISTRATION COMMITTEE MINUTES JANUARY 10, 2001- -CITY OF KITCHENER 9 2001 Capital Budget and 10 Year Capital Forecast - (Cont’d) 1. That the above change be referred to the list of outstanding issues for consideration on or before Budget Day.” The Committee was in receipt of Public Works Department report PW-01-04 (S. Gyorffy) dated January 8, 2001 concerning the City’s Leaf Collection Program. On motion by Councillor B. Vrbanovic – It was resolved: “That staff report to the Public Works and Transportation Committee on June 25, 2001 concerning service levels and funding options for the City’s 2001 Leaf Collection Program, or at an earlier date if this is necessary to insure any new equipment is available for the Fall of 2001.” The meeting then recessed at 12:10 p.m. and reconvened at 1:25 p.m. Chaired by Councillor J. Ziegler and with all members present. Centre In Ms. Houston outlined highlights of the 2001 Capital Budget & 10 Year Forecast for the The Square , noting there were no changes. Mr. Jamie Grant and Ms. Sharon McMorran were in attendance on behalf of Centre In The Square Inc. On motion by Councillor B. Vrbanovic – It was resolved: “That the 2001 Capital Budget & 10 Year Forecast for the Centre In The Square be approved, as recommended.” Kitchener Public Ms. Houston reviewed highlights of the 2001 Capital Budget & Forecast for the Library . Councillor Lorentz expressed concern over the proposal that the Country Hills Community Library be constructed in 2001 but not occupied until the following year. Ms. Houston replied that there is a purely financial savings in constructing the library now in conjunction with the new school and opening it at a later date. On motion by Councillor B. Vrbanovic – It was resolved: “That the 2001 Capital Budget & Forecast for the Kitchener Public Library be approved, as recommended." Mr. Daly spoke to an earlier question from Mayor Zehr concerning potential savings if both phases of Rockway Garden improvements are undertaken in 2001. He noted that a firm has been retained to develop a design, and the preliminary estimates have been returned for reworking within the budget guidelines. Mr. Daly stated that it is possible to complete all the work in 2001, subject to progress made on the two major fountains. Business Ms. Houston reviewed highlights of the 2001 Capital Budget & 10 Year Forecast for the & Planning Services Department . She noted that the $15,000 annual amount beginning in 2002 to fund a proposed designated property grant program is not included. The Finance and Administration Committee recommendation in this regard will be considered by Council on January 15. 2001. On motion by Councillor C. Weylie – It was resolved: “That the 2001 Capital Budget & 10 Year Forecast for the Business & Planning Services Department be approved, as recommended.” FINANCE & ADMINISTRATION COMMITTEE MINUTES JANUARY 10, 2001- -CITY OF KITCHENER 10 2001 Capital Budget and 10 Year Capital Forecast - (Cont’d) 1. Ms. Houston reviewed highlights of the 2001 Capital Budget & 10 Year Forecast for the Community Services Department . The Committee was in receipt of correspondence from F. Pizzuto, General Manager – Community Services Department, dated January 5, 2001 advising that updating the Leisure Facilities Master Plan is unnecessary at this time, and asking that the funds be re-allocated to the Victoria Park Study and the Kiwanis Park Master Plan. On motion by Councillor G. Lorentz – It was resolved: “That the budget line in the Community Services Department (Administration Section) Capital Budget & Forecast relative to the Leisure Facilities Master Plan be removed, and that these funds in the amount of $25,000 in each of the years of 2001 and 2002 be re-allocated to the Victoria Park Study and the Kiwanis Park Master Plan, respectively.” Councillor Galloway referred to safety concerns involving the slippery floor in the lobby of the Kitchener Memorial Auditorium, and asked whether something can be done to address the problem. Mr. Baulk acknowledged the problem and advised that staff are attempting to keep the surface as clean and dry as possible. Councillor Galloway asked that Mr. Pizzuto investigate whether full replacement can be moved up in the Capital Forecast, as well as other near term maintenance initiatives. Councillor Galloway questioned the proposed upgrades to the existing Market in light of the fact the Market operation will be re-located to a new facility. Mr. Baulk replied that no significant expenditures are planned for the structure itself, and all of the proposed improvements can be re- located. Mayor Zehr inquired as to the status of the Market Reserve Fund, and Ms. Houston replied that at the end of 2001 it is expected the fund will be depleted and in a deficit position. She indicated that she would provide an update in this regard as part of the Operating Budget review of City reserve funds. Ms. Houston reviewed the budget proposals in regard to new community centres, noting that staff are recommending the installation of three portables at Chandler-Mowatt, Kingsdale and Victoria Hills and deferral of any new community centre construction to 2009. Councillor Vrbanovic noted that community centre funding should be put back in the Budget & Forecast as previously directed by Council. He stated that it is important to recognize that once a study and process of this magnitude are undertaken, with significant input from the public, there is community expectation that Council will take the necessary action. He specifically referred to funding in 2001 for the Stanley Park/Grand River Community Centre which he characterized as serving approximately 40,000 residents who do not have a facility of this nature. He stated that it was inappropriate to re- allocate this project to 2009. Councillor Vrbanovic commented that allocating the Chandler-Mowatt Centre in 2005 is feasible recognizing that portables can be utilized in the meantime. He further added that in the event area municipalities are amalgamated, it is important to build facilities which serve communities of interest. He further advised that several delegations indicated a willingness to address Council this date, but agreed to defer any presentations at this time. On motion by Councillor B. Vrbanovic – It was resolved: “That the following items be added to the 2001 Capital Budget & Forecast of Community Programs & Services Division (Community Development Section): Stanley Park/Grand River Community Centre – $150,000 (2001) and $2,450,000 (2002); § Chandler/Mowatt Community Centre - $2,000,000 (2005); § South End Community Centre - $4,500,000 (2009); § FINANCE & ADMINISTRATION COMMITTEE MINUTES JANUARY 10, 2001- -CITY OF KITCHENER 11 2001 Capital Budget and 10 Year Capital Forecast - (Cont’d) 1. Portable Structures - Chandler-Mowatt - $95,000 (2001); § - Kingsdale - $135,000 (2001); - Victoria Hills Storage - $10,000 (2001); and, That staff report, on or before Budget Day, as to options to offset these additional expenditures; and further, That the above change be referred to a list of outstanding issues for consideration on or before Budget Day.” Councillor Ziegler referred to the budget allocation for Communities In Bloom and asked that a report be submitted to the Community Services Committee outlining the proposed level of competition and funding. Mayor Zehr inquired as to the status of the Huron Natural Area, and Mr. Daly replied that a master plan is being presented and a revision to Board membership is being considered. A meeting will be held to review the master plan and an implementation strategy and financial plan will be developed in 2001. Councillor Weylie inquired as to timing of the proposed, temporary closing of the Forest Heights Pool to complete improvements. Mr. Pizzuto indicated that he would report back, noting that it may be possible to close the pool in August since other outdoor pools are available to divert programming. Mayor Zehr noted an additional $1.6 million expenditure for the clubhouse and 18-hole expansion at the Doon Valley Golf Course. Mr. Baulk responded that an update had been provided to Council on course costs, but not an overall project report. He stated that the projections indicate the improvements will result in significant revenue increases, despite the additional costs. He advised that the changes are due to completion of more detailed costing by the consultant, including the actual square footage of the clubhouse and related services. Mayor Zehr expressed concern over the substantial increase in expenditures and asked that a report be provided on or before Budget Day outlining the revised costs and forecasting. On motion by Councillor G. Lorentz – It was resolved: “That the 2001 Capital Budget & 10 Year Forecast for the Community Services Department be approved as recommended, and subject to re-allocating funds for the Leisure Facilities Master Plan Review to the Victoria Park and Kiwanis Park Master Plans.” A discussion took place concerning the additional Capital items considered by Council this date and the impact of the Capital Budget & Forecast. Councillor Smola advised that the Lackner/Shirley Extension is his number one priority. Councillor Vrbanovic suggested that Council give general direction to staff to look at all possible options for funding the projects added or suggested this date. Mr. Gazzola replied that staff do not feel anything can be done with respect to development charges, though it may be possible to accommodate the Doon Village Road/Bechtel to Tilt project. He noted that there is no additional funding in the first three years of the Capital Forecast, and expressed concern over the amount of the additional funding that Council is suggesting within this time frame. Councillor Vrbanovic offered the opinion that the Libraries and the Lackner/Shirley Extension should not be moved in the Forecast. Councillor Smola inquired as to the possibility of using Sewer Surcharge/Water Utility funding for other projects. Mayor Zehr suggested that it may be possible to spread the proposed developments over a longer period of time. He also suggested that consideration should be given to budgeting for hydro dividends, though it is difficult to estimate or guarantee these. Ms. Houston responded that staff had initially assumed dividends of approximately $2 million per year from the hydro utility, and Mayor Zehr cautioned that these are only likely to be in the range from $1- $2 million in 2001. FINANCE & ADMINISTRATION COMMITTEE MINUTES JANUARY 10, 2001- -CITY OF KITCHENER 12 2001 Capital Budget and 10 Year Capital Forecast - (Cont’d) 1. Council then considered Finance Department report FIN -00-028 (P. Houston) dated December 28, 2000 and recommending establishing of a Hydro Capital Investment Reserve Fund, and a change in the mandate for the Tax Stabilization Reserve Fund. Mayor Zehr had previously requested an amendment to the staff recommendation to reflect that Tax Stabilization Reserve Fund contributions should be to a maximum of the percentages recommended relative to the tax levy. The staff recommendation was then voted on, as amended. On motion by Mayor C. Zehr – It was resolved: “That the Hydro Capital Investment Reserve Fund be established and funded from all revenues generated by the City's investment in the Kitchener Power Corporation and related companies, with the purpose of this Fund defined as follows: To fund capital projects as approved by Council from time to time; § To provide revenue to the City’s Tax Stabilization Reserve Fund, in order to stabilize § the tax rate impact from one year to the next; All allocations from this Fund to be based on a five-year plan to ensure the § sustainability of the Fund; and further, That the purpose of the Tax Stabilization Reserve Fund be amended and defined as follows: To stabilize the tax rate impact from one year to the next by providing for non-recurring, § extraordinary type expenditures arising from time to time, including the previous years operating deficits and annual operating budget allocations, said operating budget allocations to be based on a five-year plan and on a declining reliance on the Reserve Fund over the term of the five year plan in order to ensure the sustainability of the Fund. Contributions to the reserve fund will be provided from non-recurring, extraordinary revenues, including: -Previous years operating surpluses; -Accumulated surpluses in the Gas Works Enterprise in access of 50% of the previous year’s net profit after capital expenditure; -Combined accumulated surpluses for Water Works & Sewer Surcharge in access of 30% of the previous year’s gross profit; -The equivalent of a maximum of 1%, 2%, 3% and 3% of the City’s portion of the tax levy in 2001, 2002, 2003 and in each of the following years respectively to be transferred from the Hydro Capital Investment Reserve Fund; -50% of the savings from the OMERS contribution holiday. Councillor Ziegler asked that staff consider the Capital funding shortfall issue, and if possible provide an update on January 12, 2001. On motion, the meeting adjourned at 3:25 p.m. G. Sosnoski City Clerk