HomeMy WebLinkAboutFinance & Corp - 2002-01-18
FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
JANUARY 18. 2002
CITY OF KITCHENER
The Finance and Corporate Services Committee met this date, in special session, chaired by Councillor
J. Ziegler, commencing at 10:37 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. D. George, Ms. M. Walshe, Ms. R. Upfold,
Ms. A. Tanner, Ms. S. Keeping, Ms. S. Henderson, Ms. F. Fraser, Ms. S. Adams,
Ms. C. Ladd, Ms. F. Currier, Ms. L. Bansen, Ms. T. Crawford, Ms. C. Tarling, Ms.
D. Gilchrist and Messrs. J. Fielding, R. Pritchard, N. Kuntz, G. Sosnoski, F. Pizzuto,
B. Stanley, G. Borovilos, D. Quinn, J. Grant, S. Turner, D. Daly, J. McBride, B.
MacDonald, S. Saleh, J. Witmer, K. Baulk, J. Shivas, D. Mansell, L. Proulx, D.
Hergott, R. Gosse, R. Weber and R. LeBrun.
1. 2002 OPERATING BUDGET & 10 YEAR CAPITAL FORECAST 2002- 2011
The Committee was in receipt of Financial Services Department report FIN-02-005, dated January
14, 2002, attached to which is a series of staff reports in response to the information requested by
this Committee at its November 30, 2001 and December 17, 2001 meetings.
Ms. P. Houston provided an overview of the revised 2002 Operating Budget and 10 Year Capital
Forecast noting that assessment growth for 2002 is now calculated at 2.49%, excluding PIL
changes. In comparison to the Budgets presented at the Finance and Corporate Services
Committee meetings of November 30, 2001 and December 17, 2001, gapping has been increased
to $750,000., and other efficiencies have been found, resulting in a revised tax increase of 1.85%,
as compared to 2.5%. A list of additional expenditures and fee increases discussed at the
previous Committee meetings was also presented by Ms. Houston, adoption of which will result in
an increased cost of $512,000., requiring an additional tax increase of 0.88%, for an overall tax
increase of 2.73%.
The Committee then considered the 2002 Operating Budget & 10 Year Capital Forecast for the
Centre in the Square and the Kitchener Public Library. Ms. Houston noted $50,000. in the Library
Book Reserve has been moved from 2002 to 2010.
On motion by Mayor C. Zehr-
it was resolved:
"That $50,000. in the Library Book Reserve be transferred from 2002 to 2010."
On motion by Mayor C. Zehr-
it was resolved:
"That the 2002 Operating Budget and the 1 0 Year Capital Forecast 2002-2011, as
amended, for the Centre in the Square and Kitchener Public Library be approved."
On motion by G. Lorentz-
it was resolved:
"That in June 2002 the Centre in the Square report to the Finance and Corporate
Services Committee on its success in attracting private sector partnerships."
Ms. Houston then advised that in order to achieve the Capital Forecast presented today, the
following steps were taken:
. one time additional funding from the Gas Reserve Fund;
. additional $3.4M from the Hydro Reserve Fund;
. some projects for the Business Parks had been delayed to 2005;
. $50,000. transferred to 2010 for the Library Reserve Fund;
. roof for the Lions Arena deferred one year;
. delaying some funds for the Market to 2004;
. delaying some street improvements.
Councillor J. Smola stated his concern with delaying the street improvements for Waterloo Street,
and Mr. Fielding advised that staff will report on the advisability of moving the timing for this project
prior to the 2003 Budget deliberations.
FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
JANUARY 18. 2002
1. 2002 OPERATING BUDGET & 10 YEAR CAPITAL FORECAST 2002- 2011 ICONT'DI
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CITY OF KITCHENER
Ms. Houston noted with this Forecast, the Development Charges Reserve Fund will be in a deficit
position by 2004; however, a review of the Fund will be required by 2004.
Ms. Houston then reviewed the outstanding items for the Capital Forecast, noting that the
proposed 24 hour security for City Hall will be the first charge against the Capital Contingency,
and a debenture issue of $2,218,000. will be required for the Stanley Park Community Centre.
Councillor Weylie put forward a motion to approve the 2002 Capital Budget & 10 Year Capital
Forecast including all outstanding items. At the request of Councillor Smola the Capital funding
for traffic signals was voted on separately, and he requested his opposition to this Budget item be
noted.
On motion by Councillor C. Weylie -
it was resolved:
"That $240,000. be included in the 2002 Capital Budget for traffic signals at the following
intersections: Fischer-Hallman Road at Activa Avenue, Bleams Road at Century Hill
Drive, and Lackner Boulevard at Keewater Avenue."
On motion by Councillor C. Weylie -
it was resolved:
"That Capital costs of $80,000. for 24-hour security at City Hall be the first draw on the
Capital Contingency."
On motion by Councillor C. Weylie -
it was resolved:
"That the 2002 Capital Budget and Capital Forecast 2002-2011 be approved, as
amended."
The Committee then considered the 2002 Operating Budget as presented by Ms. Houston. She
noted additional items the Committee may wish to consider. With respect to the General
Provision Grant Account, Ms. Houston noted that the entire budgeted amount has been committed
and the Committee may wish to add $30,000. to this account. She also advised that water and
sewer rate increases are proposed at 2% and approval of these rates is still required.
On motion by Councillor B. Vrbanovic -
it was resolved:
"That water and sewer rates be increased by 2%."
On motion by Councillor B. Vrbanovic -
it was resolved:
"That $18,600. be added to the 2002 Operating Budget to hire 2 part-time students in
Business and Planning Services."
The Committee then discussed the request of the Manager of the Business Enterprise Centre of
an additional $50,000., noting that she had requested permission to draw on this fund only if
required. Ms. P. Houston recommended that a Contingency Fund be established for this purpose.
On motion Councillor C. Weylie -
it was resolved:
"That a contingency fund of $50,000. be established for the Business Enterprise Centre
in 2002 and 2003; and,
FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
JANUARY 18. 2002
1. 2002 OPERATING BUDGET & 10 YEAR CAPITAL FORECAST 2002- 2011 ICONT'DI
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CITY OF KITCHENER
That the Manager of the Business Enterprise Centre approach the Finance and Corporate
Services Committee for approval the first time they wish to draw on this contingency fund;
and further,
That a mechanism be established and approved by Council whereby the Chief
Administrator and Director of Economic Development may approve all future draws on the
contingency fund."
The Committee then considered the additional expenditures and fees that affect the 2002
Operating Budget.
On motion by Councillor B. Vrbanovic -
it was resolved:
"That 24 hour security at City Hall be approved."
On motion by Councillor G. Lorentz-
it was resolved:
"That the Corporate Services Department, Enforcement be permitted to hire a summer
student, at a cost of $9,000."
On motion by Councillor B. Vrbanovic -
it was resolved:
"That no action be taken to hire a Community Mobilization Co-ordinator."
On motion by Councillor B. Vrbanovic -
it was resolved:
"That reception hours at Community Centres be increased, at a cost of $120,000."
On motion by Councillor B. Vrbanovic -
it was resolved:
"That a full-time Co-ordinator of Summer Playgrounds, Winter Rinks and Youth in Motion
be hired, at a cost of $23,803."
The Committee discussed the desirability of continuing the Parking Courtesy Warning Program,
and the possibility of using staff in other areas should this program be discontinued. A motion by
Mayor C. Zehr to continue the Parking Courtesy Warning Program was voted on and lost.
On motion by Councillor B. Vrbanovic -
it was resolved:
"That a planning student be hired for one term, at a cost of $9,000."
On motion by Councillor B. Vrbanovic -
it was resolved:
"That a GIS co-op student be hired at a cost of $1 0,000."
On motion by Councillor C. Weylie -
it was resolved:
"That a fee of $15.00 for birth and death registrations be approved."
On motion by Councillor B. Vrbanovic -
it was resolved:
FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
JANUARY 18. 2002
1. 2002 OPERATING BUDGET & 10 YEAR CAPITAL FORECAST 2002- 2011 ICONT'DI
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CITY OF KITCHENER
"That the casual ice use rental rate be increased by $10.00 per hour effective September
1,2002."
On motion by Councillor G. Lorentz -
it was resolved:
"That rates for swimming admissions and aquatic lesson be increased an additional 5%
effective July 1, 2002."
On motion by Councillor B. Vrbanovic -
it was resolved:
"That the City of Kitchener continue its membership in the Communitech Technology
Association, at a cost of $5,000."
On motion by Councillor G. Lorentz -
it was resolved:
"That the cost of a Backflow Inspector be changed to the Water Enterprise."
On motion by Councillor B. Vrbanovic -
it was resolved:
"That the Urban Design Awards continue on a biannual basis."
On motion by Councillor B. Vrbanovic -
it was resolved:
"That no action be taken to increase the 2002 Operating Budget for the Mike Wagner
Heritage Awards by $2,000."
The Committee discussed increases in parking fines, Councillor Lorentz voicing his concerns with
respect to illegal use of disabled persons parking spaces.
On motion by Councillor G. Lorentz -
it was resolved:
"That the fine for illegally parking in a disabled person's parking space be increased to
$150.00."
On motion by Mayor C. Zehr -
it was resolved:
"That the General Provision Grant Account be increased by $30,000."
The Committee then discussed the merit of the City's participation in Canada's Technology
Triangle. Mayor Zehr asked the Committee to support a budgeted amount of $120,000. for 2002,
on the understanding that discussion will take place amongst all partners in Canada's Technology
Triangle on future goals, direction and funding for this organization, with a report to come back to
this Committee by June 30, 2002. He also advised that he would request funding of $145,000. for
the CTT if this Committee would support the additional funding.
Councillor G. Lorentz referred to Council's resolution of 1998, when it first agreed to participate in
Canada's Technology Triangle, noting the criteria for its involvement in CTT, which have not been
completed. Other Committee members voiced their concerns with the current operations of this
organization, including its commitment to the City of Kitchener. Discussion also took place as to
whether funding for this organization should be centralized, as benefits appear to be regional.
Mayor Zehr put forward a motion to provide funding for Canada's Technology Triangle, in 2002,
$120,000; with discussions to take place amongst all partners in the organization and a report
FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
JANUARY 18. 2002
1. 2002 OPERATING BUDGET & 10 YEAR CAPITAL FORECAST 2002- 2011 ICONT'DI
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CITY OF KITCHENER
presented to this Committee by June 30, 2002.
Councillor Lorentz agreed with the amount of funding requested by Mayor Zehr but suggested that
only $60,000. be advanced at this time, with the other $60,000. being withheld until a satisfactory
report is received by this Committee in June; which he proposed as an amendment to Mayor
Zehr's motion. Councillor Lorentz's amendment was voted on and lost.
On motion by Mayor C. Zehr -
it was resolved:
"That funding for Canada's Technology Triangle of $120,000. be approved; and further,
That discussions take place with all partners of Canada's Technology Triangle, with
respect to future funding, strategic planning and goals; and further,
That a report be brought forward to the Finance and Corporate Services Committee with
respect to the above discussions, no later than June 30, 2002."
Ms. Houston advised that the changes to the 2002 Operating Budget and Capital Forecast 2002-
2011 made at this meeting have resulted in a tax levy increase of 2.39%. Councillor Vrbanovic
recommended a tax levy increase of 2.73%, so as to reduce the draw on the Tax Stabilization
Reserve Fund.
On motion by Councillor B. Vrbanovic -
it was resolved:
"That an increase in the tax rate, for 2002, of 2.73% be approved."
2. ADJOURNMENT
On motion, the meeting adjourned at 1 :00 p.m.
Dianne H. Gilchrist
Committee Administrator
