HomeMy WebLinkAboutFIN-06-001 - 2006 Operating Budget
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KITCHENER
Financial Services
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Report To:
Date of Meeting:
Submitted By:
Prepared By:
Ward(s) Involved:
Date of Report:
Report No.:
Subject:
Councillor B. Vrbanovic, Chair, and Members of
the Finance and Corporate Services Committee
January 16, 2006
Pauline Houston, General Manager of Financial Services
& City Treasurer
Pauline Houston (2646)
ALL
January 6, 2005
FIN-06-001
RECOMMENDATION:
None. For information only.
2006 Operating Budget
REPORT:
Please find attached the following information to be used for your review of the 2004 Operating
Budget on Monday January 16, 2006.
1. Hard copy of Power Point presentation
2. Summary of full time equivalent staffing by department, division with comparators to
2005 and list of major services by department, division from the activity based costing
project
3. Budget Issue Papers for Major Issues to be discussed at Monday's Session:
ADD PACKAGE
a. Business Enterprise Centre
b. Market Operating
c. Legislated Changes
d. Special Events Oktoberfest
e. Urban Design Awards
f. By-Law Enforcement Officer
g. Grants
SERVICE LEVEL REDUCTIONS
h. Sportsfield Turf Cutting
i. Trail Bike Officers Program
j. Operations Reductions
k. Eliminate 2- Year Contract Programmer Position
I. Discontinuance of Accounting System Annual Maintenance Fee
m. Voluntary Unpaid Time Off
OTHER
n. Mileage Rate Increase
4. City Budget Summary by Department and Object
5. Summary of Legislative Changes
The information has been three-hole punched for insertion in the binders previously provided.
The agenda is similar to the review of the Capital Budget, following a more general format rather
than concentrating on a department/divisional order.
Should you or any Member of Council desire additional details relating to the 2005 Operating
Budget, please contact me at your convenience.
FINANCIAL IMPLICATIONS:
As detailed in attached information
COMMUNICATIONS:
The Centre in the Square, Kitchener Public Library and the Press has also been circulated with
this material.
Pauline Houston, CA
General Manager of Financial
Services & City Treasurer
PH/mf
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CITY OF KITCHENER ~
2005 OPERATING BUDGET (EXCLUDING ENTERPRISES) KI~R
124 GROUP SUMMARY
2005 2006 $ %
Budget* Budget Variance Variance
EXPENSES
Salaries 43,745,938 45,747,798 2,001,860 4.58
Wages 19,544,662 20,746,585 1,201,923 6.15
Administrative Expenses 4,770,872 4,819,020 48,148 1.01
Equipment Reserve Charges 5,221,493 5,639,477 417,984 8.01
Boards 8,618,825 9,014,915 396,090 4.60
Debt Expense 4,397,119 4,483,465 86,346 1.96
Materials & Supplies 4,794,094 4,690,534 (103,560) -2.16
Professional & Contract Services 3,604,417 4,142,971 538,554 14.94
Rental & Leases 1,252,785 1,165,907 (86,878) -6.93
Grants Paid 2,228,241 2,258,254 30,013 1.35
Promotional Costs 1,216,369 1,238,518 22,149 1.82
Repairs & Maintenance 812,537 746,098 (66,439) -8.18
Util ities/T axes 4,822,825 5,172,741 349,916 7.26
Transfer to Other Funds 9,336,503 10,045,932 709,429 7.60
Internal Charges 2,929,675 2,953,087 23,412 0.80
Internal Recoveries (9,269,529) (9,851,545) (582,016) 6.28
Sub- Total 108,026,826 113,013,757 4,986,931 4.62
REVENUES
General Levy (74,918,620) (74,918,620) 0 0.00
Other Taxation (3,328,299) (2,715,552) 612,747 -18.41
User Fees (15,310,207) (15,438,404) (128,197) 0.84
Grants Received (485,459) (604,379) (118,920) 24.50
Rec. From Other Municipalities (418,057) (165,884) 252,173 -60.32
Transfers from Other Funds (8,630,201 ) (8,481,835) 148,366 -1.72
Sundry Income (4,929,405) (5,382,217) (452,812) 9.19
Sub- Total (108,020,248) (107,706,891 ) 313,357 -0.29
NET EXPENSE (REVENUE) 6,578 5,306,866 5,300,288
*restated
PAGE 1
CITY OF KITCHENER
2005 OPERATING BUDGET (EXCLUDING ENTERPRISES)
123 DEPARTMENTAL SUMMARY
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KITCHENER
2005 2006 $ %
Budget* Budget Variance Variance
NET DEPARTMENTAL EXPENDITURES
General Expenses 22,350,022 23,244,089 894,067 4.00
Mayor and Council 698,435 731 ,420 32,985 4.72
Office of the Chief Administrator 5,316,175 5,406,503 90,328 1.70
Community Services 20,338,375 21,914,968 1,576,593 7.75
Corporate Services 13,495,177 14,215,692 720,515 5.34
Development & Technical Services 25,732,248 26,846,290 1,114,042 4.33
Financial Services 2,206,514 2,284,579 78,065 3.54
Sub- Total 90,136,946 94,643,541 4,506,595 5.00
REVENUE
General Revenues (90,130,368) (89,336,675) 793,693 -0.88
Sub- Total (90,130,368) (89,336,675) 793,693 -0.88
NET EXPENSE (REVENUE) 6,578 5,306,866 5,300,288
* restated
PAGE 2
ISSUE:
FUND:
DEPARTMENT:
DIVISION:
BACKGROUND:
CITY OF KITCHENER
2006 BUDGET ISSUE PAPER
Mileage Rate
Operating
Financial Services
Financial Planning & Reporting
As part of the annual budget process, staff reviews the rate per kilometre paid to employees for
using their vehicles for business purposes. The rate is currently $0.42 per kilometre for the first
5,000 kilometres, and $0.36 per kilometre thereafter, which corresponds to the tax exempt
CCRA allowance rates for 2004.
RATIONALE / ANALYSIS:
The cost to operate a vehicle is estimated to be $0.44 per km (calculations on following page).
City of Kitchener
The following table provides a comparison of mileage rates provided by municipalities:
City of Waterloo
City of Cambridge
Region of Waterloo
City of Guelph
City of Hamilton
City of Burlington
Comparison of Area Municipalities ~
0.42 First 5,000 km
0.36 Over 5,000 km
0.40
0.39
0.42
0.42
0.45
0.39
0.45
0.39
0.44
First 12,000 (certain positions)
First 5,000 km
Over 5,000 km
First 5,000 km
Over 5,000 km
The tax exempt allowance rates are as follows:
2004 - $0.42 first 4,000 km and $0.36 over 5,000 km
2005 - $0.45 first 5,000 km and $0.39 over 5,000 km
2006 - $0.50 first 5,000 km and $0.44 over 5,000 km
FINANCIAL IMPLICATIONS:
RECOMMENDATION:
Increasing the tiered rate to $.45 and $.39 per kilometre would result in additional costs of
approximately $9,000 for tax-based operations and $1,000 for enterprises.
2006-01-12
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Assumotions & Calculation of Annual Ooeratinc Costs for 2006
Assumotions
Capital Cost
Salvage Value
Depreciation, over 5 years
Insurance
Average annual interest, at 6.0%
Kilometres Per Year
Fuel Consumption
Annual Fuel Consumption
Repair Allowance
Fuel Cost ($ per litre)
Annual Ooeratinc Costs
Depreciation
Insurance
Interest
Licence
Repairs
Fuel
Cost Per Kilometre
24,647
4,035
4,122
1,500
789
24,000
7.5 km per litre
3,200
1,000
0.94
4,122
1,500
789
74
1,000
3,008
10,493
0.44
2006-01-12
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CITY OF KITCHENER
2006 BUDGET ISSUE PAPER
ISSUE:
FUND:
DEPARTMENT:
DIVISION:
Additional AMANDA System Resource
Operating
Development and Technical Services
Building Enterprise
BACKGROUND:
The benefits of AMANDA (Application Management and Data Automation) are significant to the
corporation. It streamlines and documents business practices, improves staff efficiencies and service to
clients. It allows for improved project/planning management and improved communication between and
within departments. It eliminates stand-alone database systems and integrates data with the corporate
data warehouse. It provides current, reliable and timely information that is easily accessible and can be
used for statistical analysis and reporting.
The current staff resource (one FTE) allocated to the administration and maintenance of AMANDA
(AMANDA Administrator) is inadequate to meet the demands associated with the effective use and
operation of this system. The extent of users has become so broad that the day-to-day administration,
maintenance, updates, user issues, and training consumer much of the administrator's job, leaving little
time for making system corrections, expanding the system to include additional processes or features to
further improve business processes and service.
The system has grown from an initial Building Permit tracking system to extend to almost every
department within the organization, all with one staff AMANDA administrator allocated full time, and a
Business Systems Analyst. As a result of the growth of the application's use, there are now significant
resource issues which need to be addressed in order to maintain the value that has been added to the
Corporation since 1999 and to implement new initiatives adding greater benefit.
In 1998, a Corporate decision was made to purchase the AMANDA/License+ Software package from
CSDC Systems Inc. Early in 1999, twenty-five Building Permit folders were developed and implemented
in partnership with CSDC staff. Historical permit data was imported from the previous database and other
programs within the Corporation.
Since then, fifty-seven folders with over 800 new procedures have been added to the database, including
folders in Building, Planning, Fire, By-law Enforcement and Clerks.
In 2002, an AMANDA Steering Committee was established to prioritize and approve the AMANDA
Administrator's work schedule and within this scope of responsibilities, to make recommendations on
policy, resources and organizational issues. Representatives from Legislated Services, By-law
Enforcement, Building, Planning, Fire Prevention, and Engineering are on the committee, with a rotating
chair person from within the membership. The committee also controls the operating and capital funds
for the AMANDA project.
RATIONALE / ANALYSIS:
AMANDA is now considered a corporate application. Staff in the following departments/divisions are
entering, viewing, or reporting on information in the AMANDA database on a daily basis: Building,
Planning, By-law Enforcement, City Clerk's, Finance, Fire Prevention, Traffic Planning, Engineering, GIS,
Legal, Licensing, Utilities, Parks, Mayor's Office, Economic Development, Facilities Management, and
Revenue.
2006-01-12
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The objective of advocating for this additional request is to ensure that AMANDA system work requests
are completed within a time frame that meets the needs of the client/user divisions, utilizing the system to
its full potential where it adds value.
The current staff resource (one FTE) allocated to the administration and maintenance of AMANDA is
inadequate to meet even the current needs of the Corporate departments. The lack of resources devoted
to the software implementation is impeding the ability of various divisions to effectively perform their job.
In addition to process/time tracking, which is essential to meet legislated timelines, AMANDA stores
significant valuable data on all properties in the City. This data is relied upon by staff for monitoring and
reporting for purposes such as growth management analyses, which is increasingly demanding detailed
and accurate data in order to undertake such analyses and track historic trends and performance
measures. Presently, incomplete processes and data impede the ability to use the data with certainty.
In addition, certain issues related to data integrity, security and retention may be at risk.
As mentioned earlier, the Steering Committee is responsible for prioritizing projects on the work plan.
Currently there are 17 identified projects on the plan with an estimated timeline of early 2007 to complete
these. This timeline does not provide any capacity to respond to new initiatives not currently identified.
All users Divisions are in agreement that the timeline associated with the work plan is not adequate to
meet their needs and impacts their ability to provide service to their customers.
It is anticipated that with an additional resource, the ability to complete the required program work
requests and folder development within a timeframe that meets the user needs can be accomplished. It
also will ensure that data integrity and retention protocol are ensure to minimize risk of data error. The
AMANDA Steering Committee will be charged with establishing a work plan for both resources that would
address the needs across the Corporation, with a review of progress prior to the end of the three year
term.
Once the more pressing database expansions, improvements, upgrades and maintenance to the system
are in place with the additional resource, the Steering Committee is eager to further advance the value of
AMANDA through such means as internet access to selected AMANDA information by the public and
external customers, and the use of wireless technology enabling staff to access data from remote
locations where business is conducted in the field. By improving staff's and the public's access to
required information and data, we can improve customer service. However, before expansion can be
contemplated throughout the organization we need to address the major issue of the inadequate
resources.
FINANCIAL IMPLICATIONS:
The cost of hiring of an additional AMANDA Administrator on a three (3) year contract basis is estimated
at approximately $75,000 annually. These costs are to be funded from the Building Division Enterprise
and recoverable from the permit fees collected. The data and input of the AMANDA system is a cost
associated with the enforcement of the Building Code Act and the Building Code. This is not a corporate
cost funded by the tax base and has no levy impact.
RECOMMENDATION:
That an additional AMANDA Administrator be hired on a three (3) year contract to assist in the completion
of the current and future projects identifies in the AMANDA Corporate Work Plan; and further
That a review of the position and its impact on achieving the work plan be undertaken by the AMANDA
Steering Committee prior to the end of the third year to evaluate the necessity for continued support.
2006-01-12
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CITY OF KITCHENER
2006 BUDGET ISSUE PAPER
ISSUE:
FUND:
DEPARTMENT:
DIVISION:
Add - CulturePlan II Project Envelope Funding (2006)
Operating
Community Services
Community Programs & Services
BACKGROUND:
The City of Kitchener CulturePlan II comprised a 1.5 year resident-led public input process
(January 2004 - May 2005) towards creating a visionary five-year plan for strategic investment
in arts, culture and diversity. In June 2005 the CulturePlan II Draft Implementation Strategy and
budget were presented to Council as an inventory of recommended initiatives/ investment
opportunities. Council supported the Draft Strategy in principle, for later redevelopment as a
final Implementation Strategy. Council endorsed the creation of a second FTE in Culture (Arts
and Culture Coordinator) as part of addressing the significantly increased workload and demand
for service in our community.
The upcoming development of a final CulturePlan II Implementation Strategy and budget will be
aligned with concurrent initiatives at the City of Kitchener:
· Community Investment Strategy (to include full review of Grants program)
· Arts and Culture Cluster Development Downtown /Economic Development
· Investigation of Cultural Capitals of Canada Program (Canadian Heritage cultural
investment matching funds program)
RATIONALE / ANALYSIS:
The Community Services Department has identified the requirement for a start-up Operating
Funding Envelope to manage the growth of the culture portfolio and to implement activities
identified in the CulturePlan II Draft Implementation Strategy.
During the past decade, Arts and Culture budgets have not increased in proportion to the major
rise in population and demand for service. The recent addition of a second FTE (Arts and
Culture Coordinator) will enable the Department to better manage the increased need for
services. However, operating funding is still required to cover the implementation of any new
Plan and development initiatives.
The CulturePlan II Draft Implementation Strategy cited a projection of costs for 2006. That Draft
budget has been updated in response to new strategies introduced in the Community Services
Department since June 2005 (Community Investment Strategy and Grant Review), in full
alignment with the content of CulturePlan II Recommendations.
The proposal to establish an accruing fund (7,000 per annum) to finance a review of Culture
Plan II in 2010 has been identified as premature. Need for this allocation will be determined in
the 2009 budget deliberations.
Investment in the final CulturePlan II Implementation Strategy must support a wide range of
Plan-based activities aligned with Downtown Development projects, Economic Development
2006-01-12
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initiatives, a Cultural Capitals of Canada application, and Cultural Cluster projects in the City. A
Funding Envelope enabling the strategic activation of CulturePlan II projects is required to
faithfully support community needs as follows:
· Support for development of City Culture Teams (Internal Team and External Community
Team)
· Research of a Kitchener bid for Cultural Capitals of Canada Program (application
deadline Fall 2006)
· Availability of required resources to support priority projects in the community
(involvement to be dictated by priorities set by the public in 2006 - priorities, to date
have included City support of enhanced community networking, diversity and
sustainability in the arts)
FINANCIAL IMPLICATIONS:
A start-up funding envelope of $10,000.00 is required at this time to enable development of
CulturePlan II activities identified by recent community consultations.
RECOMMENDATION:
That $10,000.00 be added to the Community Services Arts and Culture operating budget to
support CulturePlan II Implementation Strategy activities in 2006.
2006-01-12
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CITY OF KITCHENER
2006 BUDGET ISSUE PAPER
ISSUE:
FUND:
DEPARTMENT:
DIVISION:
Add - Every Kid Counts
Operating
Community Services
Community Programs & Services
BACKGROUND:
Since June 1998, Every Kid Counts, a partnership of KidsLink and City of Kitchener, Inclusion
Services, has been providing support to children and youth with significant special needs to
enable them to participate in municipal summer programs.
Since 1998, the Every Kid Counts program has provided support to over 500 children and youth
with exceptional behavioral, cognitive, emotional and physical challenges. This has significantly
impacted our community and has resulted in numerous positive outcomes:
· Allows children and youth with exceptional needs to successfully access community
recreational resources in a normalized setting.
· Allows for the successful inclusion of children with significant disabilities into recreational
programs with children and youth from their community. We know that when we engage
children and youth in a meaningful way that there are numerous health, social and quality
of life benefits and that there is a decrease in anti-social and harmful behavior.
· Provides for family respite. When families receive appropriate supports, we can further
engage them to be contributing members in our community.
· Avails specialized staff resources to summer day camp, playgrounds, specialty camps and
fun centre staff
The provision of these resources demonstrates a commitment on behalf of the City of Kitchener
to accommodate the needs of individuals with a disability. This provision meets the
requirements under the Ontario Human Rights Code as well as the Accessibility for Ontarians
with a Disability Act (AODA), 2005 for the identification and removal of barriers to participation
for persons with a disability.
RATIONALE / ANALYSIS:
In 2005 this program generated a waiting list of 8-10 children per week. Funding reserves were
utilized to hire an additional three Inclusion Facilitators to respond to this need. These additional
staff enabled us to provide support to a larger number of children and youth so as to better meet
the needs of our growing community.
Without the appropriate supports in place, the programs, community and participants are at risk.
When these necessary resources are not available, these children and youth tend to fail and
thus need to be removed from camp. When children and youth with a disability are unable to
participate in their community, this negatively affects the physical and mental health of the
individual and their family and subsequently on the health of the community.
The individualized staff that are hired to support these children and youth with a disability
provide siqnificant resources includinq behavior re-direction, avertinq potential situations from
2006-01-12
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escalating, establishes a safe environment for those children with a disability as well as the
other children attending these programs and provides support, consultation and training to
leaders and others involved in our summer programs.
FINANCIAL IMPLICATIONS:
An increase of $12,271 will be required to support the provision of three additional Inclusion
Facilitators to meet existing community need.
Specific budget details include: An increase in staff wages and fringe benefits in the amount of
$21 ,179 offset by a revenue increase of $5,435 in donations and fund-raised dollars and a
revenue increase of $3,473 from City of Waterloo;
RECOMMENDATION:
That $12,271 be added to the Community Services "Every Kid Counts" operating budget to hire
three additional Inclusion Facilitators to support children and youth with a disability in municipal
summer programs.
2006-01-12
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CITY OF KITCHENER
2006 BUDGET ISSUE PAPER
ISSUE:
FUND:
DEPARTMENT:
DIVISION:
Add - Market 2006 Operating Budget
Operating/Tax Stabilization Reserve
Community Services
Enterprise - Market
BACKGROUND:
A staff report regarding the Kitchener Market was presented to Community Services Committee
on Dec. 5, 2005. The report outlined recommendations relating to a budget adjustment for
2006. This issue paper summarizes the report and recommendations.
RATIONALE / ANALYSIS:
Reauest for Ooeratina adiustment related to Full Time Market
Lease fees for the full time vendors were considered during the 2005 capital budget process. In
2005, a phased implementation of lease fees was established. Staff has had ongoing dialogue
with the full time refreshment vendors regarding their capacity to make payments for the lease
fees as established during the 2005 budget process.
It is clear that the departure of the full time grocery vendors has impacted their revenues
significantly. All the full time vendors have expressed a willingness to continue operating at the
Market with the goal of building their businesses but they have not been able to maintain
sufficient revenues to pay the lease fees. As a result, staff is recommending forgiving the
outstanding lease fees in 2005 and not budgeting for full time lease fees in 2006 in order to
allow the Market operation to evolve.
As indicated, a number of vendors closed their business in the full time grocery area. This has a
net impact of $15,000 relative to the 2005 budget. This loss of revenue needs to be accounted
for in 2006.
Therefore, the budget adjustments for 2006 related to the full time vendors include the
following:
- full time vendor CAM free period
- loss of grocery area vendors
Total
$50,000
$15000
$65,000
Request for Ooeratine: Adiustment Related to Staffine:
A revised approach to staffing the Market has been developed. The primary focus is the creation
of a two person full time team lead by a designated Market "General Manager" and a Business
Development Supervisor reporting to the Manager. The Business Development Supervisor
would replace the existing "Event Operation Supervisor" which has been filled temporarily. The
focus of the Business Development position is to build the downtown business and
2006-01-12
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neighbourhood opportunities, evolve rentals, recruit market vendors and events, and oversee
imaging and packaging of the Market to the broader community.
A contract Vendor Liaison position is proposed to build and maintain vendor relations and
develop a Market Committee group that could potentially lead to a new management model in
the future. Staff is currently working with HR to refine the job descriptions and establish the
salary levels. It is expected all the full time positions will be filled on a permanent basis by
March 2006.
It is expected these changes will have a net impact on the budget as follows:
- Market Manager/Business Development
-2 year contract Vendor Liaison
Total
$23,000
$20 000
$43,000
As a result the total adjustment required to address the full time vendor issues and staffing
revisions is $108,000.
FINANCIAL IMPLICATIONS:
The operating budget will have a permanent net increase of $23,000 for the Market
Manager/Business Development Position. Staff is recommending that the remaining $85,000
be funded through a one-time charge against the Tax Stabilization Reserve Fund (no levy
impact).
RECOMMENDATION:
That $108,000 be added to the Market operating budget, with $85,000 funded through a one-
time transfer from the Tax Stabilization Reserve Fund, resulting in a net levy impact of $23,000.
2006-01-12
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CITY OF KITCHENER
2006 BUDGET ISSUE PAPER
ISSUE:
FUND:
DEPARTMENT:
DIVISION:
Reduction - Increased Event Parking Rates at Centre in the Square
Operating
Community Services
Enterprise - Parking
BACKGROUND:
Subsequent to the approval of Fees and Charges on November 21 , 2005, staff met with the
management team of the Centre in the Square (CITS) to review the rate structure for CITS
event parking.
RATIONALE / ANALYSIS:
On December 20, staff met with CITS staff to discuss the feasibility of adjusting the event
parking rate. Event rates at the CITS have not been increased from the $5 level since 1999.
A $1 rate increase (from $5 to $6) represents an increase of 20%, which equates to a yearly
increase of 3% over the previous six (6) year period. This increase is consistent with standard
Corporate fee increases during this time frame.
While there is generally a preference for maintaining lower rates, staff at CITS recognized that
fees have not increased for several years and suggested that they could support an increase
effective July 1, 2006. This would minimize the impact to their customers during the peak
season of their operation, as the change would occur after the 2005/06 performance season.
FINANCIAL IMPLICATIONS:
Increasing the CITS event rate from $5 to $6 will increase net revenues by approximately
$14,000 in 2006 (July 1 to Dec 31) and will have an annual net revenue impact of approximately
$28,000 per year starting in 2007.
RECOMMENDATION:
That the Centre in the Square event parking rate be increased from $5 to $6 effective July 1,
2006 and that parking revenue be increased in the 2006 operating budget by $14,000 in 2006.
2006-01-12
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CITY OF KITCHENER
2006 BUDGET ISSUE PAPER
ISSUE:
FUND:
DEPARTMENT:
DIVISION:
Reduction - Kitchener Public Library Budget in Excess of 3%
Operating
General Expenses
Boards - Kitchener Public Library
BACKGROUND:
In the preparation of the 2006 Operating Budget, the Library made every effort to carefully
review each budget line to comply with the 3% guideline provided by the City of Kitchener.
Many budget lines were frozen, a few increased slightly to reflect actual costs such as utilities
and building maintenance and, in some cases, savings were realized. The revenue generation
opportunities were also reviewed resulting in increases in fines and photocopy revenues and a
small decrease in room rental revenue.
As a public service organization, the two largest operating expenses relate to resource
materials, which have been frozen, and salaries and benefits. For 2006, a COLA of 3% (same
rate as City of Kitchener) has been incorporated. The impact of the COLA along with salary
progressions and the related impact on benefits exceed the 3% guideline. OMERS pension
plan contribution rates will increase for 2006 which further impacts the budget. A 1 % salary
increase has been included as the final adjustment of an overall 3% market value salary
increase. This increase reflects the need to remain competitive in the employment market and
has been supported by Council in each of the past two years. The salary budget reflects
existing staffing levels with no additional positions and assumes a gapping target of $30,000.
RATIONALE / ANALYSIS:
The budget request reflects the true cost of operating the library system at the current service
level. No new services or additional staffing have been incorporated and any possible savings,
including $30,000 in staff gapping, have been included. Additional revenues have also been
included. As identified above, the impact of COLA and the net impact on benefits alone, make it
impossible to achieve the 3% guideline while maintaining the current service level to the citizens
of Kitchener.
FINANCIAL IMPLICATIONS:
Cutting $97,525 would compromise the Library Board's ability to maintain the current level of
service. Without the funding level requested for 2006, the Library Board would need to consider
cuts to the resource materials and/or the salary budgets. The service delivery impacts could
include reduced public service hours, services and programs and/or fewer new books,
magazines, and audiovisual materials available to the public. A funding shortfall of $97,525
equates to three (3) full time staff positions or approximately five (5) percent of service hours. A
reduction of service hours could range from closing one evening per week to complete closure
for several days.
RECOMMENDATION:
The Kitchener Public Library Board recommends the approval of the funding request to ensure
the continuation of the current level of service provided to and valued by the community.
2006-01-12
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CITY OF KITCHENER
2006 BUDGET ISSUE PAPER
ISSUE:
FUND:
DEPARTMENT:
DIVISION:
2006 Grant Allocations
Operating and Capital
Community Services
Administration
BACKGROUND:
At the November 28, 2005 Finance and Corporate Services Committee (FCSC) meeting, staff
presented recommendations for economic development, capital, annual operating and annual
minor sports grants for 2006.
Grant applicants were given an opportunity to make representations at the November 28
meeting and were advised that all decisions regarding grant amounts were deferred to the
January 16, 2006 budget meeting. Applicants were also informed that no delegations are to be
received at the January 16 meeting unless "extraordinary" changes subsequent to the
November 28 meeting warrant a presentation to Committee members.
RATIONALE / ANALYSIS:
The following is a summary of the grant recommendations presented at the November 28
meeting ($):
Economic Annual Annual Minor
Development Capital Operating Sports Total
2005 Approved 214,000 154,000 1,280,489 649,008 2,297,497
2006 Requested 219,000 95,000 1,494,486 712,044 2,520,530
Grant Committee n/a n/a 1,228,475 n/a n/a
Recommendation
Staff 189,000 0 1,234,975 657,988 2,081,963
Recommendation
Budget 214,000 0 1,305,895 657,988 2,177,883
Unallocated 25,000 70,920 95,920
At the December 12, 2005 Finance and Corporate Services Committee meeting, staff were also
directed to provide a summary of capital grants approved for organizations over the last ten
years. This information is as follows:
Amount Year
Organization Approved Approved Details
Homer Watson House & Gallery $50,000 1995 renovations to House
Children's Museum $1,500,000 2000 renovations to 10-22 KinQ St.
Theatre & Company $250,000 2000 buildinq renovations
Catholic Family Counselling $50,000 2000 building renovations
Kitchener-Waterloo Art Gallery $162,000 2004 implementation of their strategic
(over 3 yrs) reiuvenation plan
K-W Family Counselling Centre $100,000 2005 new building
2006-01-12
- 13 -
The following documents are attached to this issue paper:
Appendix A - A summary of the economic development and capital grant requests considered
at the November 28 meeting, as well the organizations appealing the staff recommendations for
annual operating and minor sports grants. The additional information requested by the
Committee is referenced in this table and attached to this issue paper.
Appendix B - A copy of the annual operating grant criteria approved by Council in November
2002, as requested.
FINANCIAL IMPLICATIONS:
Staff is recommending economic development, annual operating and minor sports operating
grants be approved in the amount of $2,081,963 for 2006. Staff is also recommending that no
capital grant allocations be approved. The total budget allocation is currently $2,177,883, which
leaves $95,920 of budget reduction room (identified as a potential budget cut).
The total value of grant appeals being considered, including economic development and capital
grants as well as annual operating and minor sports grant appeals, which are currently not
included in the staff recommendation is:
Economic Development
Capital
Annual Operating
Annual Minor Sports
Total
$ 30,000
$ 95,000
$ 145,767
~
$ 272,767
This represents 0.35 % of the tax levy.
RECOMMENDATION:
That the following Economic Development Grants be approved for 2006:
· Canada's Technology Triangle - $134,000 (as outlined in report CAO-05-043)
· Waterloo Region Small Business Centre - $50,000 (as outlined in report CAO-05-044)
· Communitech Technology Association Inc. - $5,000 (membership fee as outlined in
report CAO-05-045)
That the following general provision grants (capital) not be approved for 2006:
· Hospice of Waterloo Region - $30,000 (as outlined in report CSD-05-148)
· Community Justice Initiatives - $30,000 (as outlined in report CSD-05-149)
· Alliance Community Homes - $35,000 (as outlined in report CSD-05-150)
That, subject to final 2006 budget approval, annual operating grants in the amount of $1,234,975
be approved for 2006 (as outlined in report CSD-05-147); and further,
That, subject to final 2006 budget approval, annual minor sport grants in the amount of $657,988
be approved for 2006 (as outlined in report CSD-05-153).
2006-01-12
- 14 -
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Approved by Council
November 4, 2002
City of Kitchener
Annual Ooeratinc Grants
Grant Puroose
Grants are provided to organizations that operate within the City of Kitchener providing
municipal services in the areas of recreation, arts and culture, community development,
environment and other municipally related programming.
Operating grants usually assist with some type of operating expense and are generally required
for more than one year.
Grant Criteria
1. Organizations must be operating for City of Kitchener residents. A pro-rated contribution
may be considered where residence of participants is mixed with other municipalities.
2. Preference will be given to organizations that provide programs or services to children,
youth and seniors.
3. Organizations must demonstrate that they have exhausted other sources of funding.
4. Organizations must be non-profit and led by a volunteer board. Volunteer involvement in
programming should be demonstrated.
5. Organizations who are the responsibility of other levels of government (Municipal,
Regional, Provincial, Federal or Educational) and/or have had their funding cut or
reduced by these levels of government are normally not eligible for grant funding.
6. Grants for an educational institution, students of an educational institution or for health
care related or social programs will generally not be considered.
7. Grants are approved to direct organizations only. Grants approved to an organization
cannot be re-distributed to other organizations.
8. Organizations having received a grant through the annual grant budget process will not
be eligible to apply for a general provision grant.
9. Organizations that operate in more than one municipality must approach all municipalities
for funding. Funding must be allocated on an equitable basis, preferably via the number of
participants within a community. However, in certain circumstances, the relative
population of the municipality can be used.
10. Any organization receiving a grant from the City of Kitchener will recognize the City's
contribution in any promotional literature or material which may be prepared by the
organ ization.
Grant Submission Process
1. All grant requests must be submitted for review via the budget process.
Annual Operating Grants
Page 2
2. All grant requests must be supported by a fully completed application form and any
required documentation. A recent Balance Sheet and Income Statement should
accompany every application. If the grant request relates to an annual operating
expenditure, an annual budget should be submitted. If the request relates to a special or
capital project, a budget for that special project should accompany the request.
Wherever possible, audited financial statements should be submitted.
3. Where applicable, proof of adequate liability insurance should be shown by the
organization requesting the grant.
4. All grant requests will be reviewed by the Annual Operating Grant Review Committee,
which is comprised of staff and representatives of applicable advisory committees. The
Grant Review Committee will perform an evaluation of compliance with grant criteria and
review financial statements, audits and budgets.
5. Grant applications received from successful prior year applicants will be assessed on a
needs basis rather than applying an inflationary index.
6. Organizations receiving financial assistance are advised that the grant being given should
not to be regarded as a commitment for future assistance.
7. Organizations receiving an annual grant must complete a report verifying that the grant
funds were used for the purpose intended.
7.1 For event-oriented grants, the organization must forward a complete financial
accounting of the event. The municipality must determine whether the funds
have been used according to the direction of Council and, further, whether the
funds are still required.
7.2 For non-event oriented grants, the organization must forward a financial
statement/report to verify that the grant funds were used for the purpose
approved by Council, being specific as to how the grant funds were used.
8. Any organization requesting a grant will be afforded the opportunity to address Community
Services Committee as a delegation.
Pavment of Grants
1. The following methods of payment for Council approved grants are in place:
1.1 For event-oriented grants, namely grants that are earmarked for events that occur
at a specific point in time, payment will occur after the event has taken place.
1.2 For non-event oriented grants, the following are guidelines for the payment
of grants, namely:
Cash grants under $5,000 will be paid on the date of the first tax
instalment;
ii. Cash grants between $5,000 and $12,000 will be paid on the dates of the
first and second tax instalments;
Annual Operating Grants Page 3
iii. Cash grants in excess of $12,000 will be paid in 12 equal monthly
instalments on the 15th day of each month. The first payment will not be
until after the City budget has been ratified by City Council. This payment
will take into account any payments missed to date.
2. If the payment schedules outlined above do not meet the needs of the grant recipient, staff
will discuss alternate methods of payment.
Grant Processinc Timetable
Grant applications mailed to existing grant recipients: July
Deadline for submission: September
Review by Annual Operating Grant Review Committee/Department's
grant recommendations: September/October
Letters mailed to applicants regarding the Department's grant
recommendations: November
Community Services Committee review of grant requests: November
Letters mailed to applicants regarding Community Services Committee
decision (subject to final budget approval): December
Final budget approval: January
Letters mailed to applicants regarding final budget approval: February
Please forward your completed application to:
Community Services Department, City of Kitchener
200 King Street West, ih Floor, P.O. Box 1118
Kitchener ON N2G 4G7
tel: (519) 741-2395
fax: (519) 741-2723
email: renate.willms@city.kitchener.on.ca
EXTRA COSTS TO THE CITY OF KITCHENER DUE TO LEGISLATIVE CHANGES 1999-2006
FUNCTIONAL AREA 1999 2000 2001 2002 2003 2004 2005 2006
858,000 195,000 570,000 300,000 300,000 300,000 300,000 300,000
10,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
20,000 5,000 5,000 5,000 5,000 5,000
Vacancy administration 20,000 20,000 20,000 20,000 20,000 20,000
Rebate programs administration 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Fleet Drive Clean 5,000 85,730 20,084 58,400 24,523 20,934 20,000 20,000
(600,000) (600,000) (600,000)
Ontario Regulation 363/04 National Load Securement Standard 30,000
Gas Distribution Access Rule (GDAR) 373,638
FACILITIES MANAGEMENT
Asbestos management pro!:,"Tam 20,000 5,000 5,000
Electrical safety authority 30,000 30,000 30,000
Backflow prevention 50,000 6,000 6,000
19,000 4,000 4,000
5,000 5,000
60,000 60,000
Roof anchors inspection 4,000 4,000
TSSA - amusement devices (pools & waterslides) 3,230 3,230
CSD
Public Spa Regulations - Lyle Hallman Pool 15,000
2,000
3,000
5,000
WSIB changes to reporting requirements 1,200
PLANNING AND DEVELOPMENT
60,778 87,667 48,111 385,444 54,000
15,000
7,750 7,875 7,750 7,750 7,750
Regulatory signs 50,000 50,000
Traffic control 75,157 20,000
8,400 8,400 8,400 8,400 8,400 8,400 8,400 8,400
150,000 150,000 150,000 150,000 150,000
30,000 30,000 30,000 30,000 30,000
30,000 30,000 30,000
Water quality testing 15,000 15,000 15,000 15,000 15,000 15,000
Recertification 15,000 5000 5000 5000 5000 5000 5000
Inspection for hotels, motels and nursing homes 76,213 78,904 81,690 82,363
Emergency Planning and Preparedness
Fire Investigations 39,452 40,845 41,118
Training - to meet provincial standards 88,194 90,930 88,921
1,027,141 662,222 1,058,966 1,223,396
2006 Operating Budget - Legislated Changes.xls
extra costs
)
CITY OF KITCHENER ~
2005 OPERATING BUDGET (EXCLUDING ENTERPRISES) KI~R
124 GROUP SUMMARY
2005 2006 $ %
Budget* Budget Variance Variance
EXPENSES
Salaries 43,745,938 45,747,798 2,001,860 4.58
Wages 19,544,662 20,746,585 1,201,923 6.15
Administrative Expenses 4,770,872 4,819,020 48,148 1.01
Equipment Reserve Charges 5,221,493 5,639,477 417,984 8.01
Boards 8,618,825 9,014,915 396,090 4.60
Debt Expense 4,397,119 4,483,465 86,346 1.96
Materials & Supplies 4,794,094 4,690,534 (103,560) -2.16
Professional & Contract Services 3,604,417 4,142,971 538,554 14.94
Rental & Leases 1,252,785 1,165,907 (86,878) -6.93
Grants Paid 2,228,241 2,258,254 30,013 1.35
Promotional Costs 1,216,369 1,238,518 22,149 1.82
Repairs & Maintenance 812,537 746,098 (66,439) -8.18
Util ities/T axes 4,822,825 5,172,741 349,916 7.26
Transfer to Other Funds 9,336,503 10,045,932 709,429 7.60
Internal Charges 2,929,675 2,953,087 23,412 0.80
Internal Recoveries (9,269,529) (9,851,545) (582,016) 6.28
Sub- Total 108,026,826 113,013,757 4,986,931 4.62
REVENUES
General Levy (74,918,620) (74,918,620) 0 0.00
Other Taxation (3,328,299) (2,715,552) 612,747 -18.41
User Fees (15,310,207) (15,438,404) (128,197) 0.84
Grants Received (485,459) (604,379) (118,920) 24.50
Rec. From Other Municipalities (418,057) (165,884) 252,173 -60.32
Transfers from Other Funds (8,630,201 ) (8,481,835) 148,366 -1.72
Sundry Income (4,929,405) (5,382,217) (452,812) 9.19
Sub- Total (108,020,248) (107,706,891 ) 313,357 -0.29
NET EXPENSE (REVENUE) 6,578 5,306,866 5,300,288
*restated
PAGE 1
CITY OF KITCHENER
2005 OPERATING BUDGET (EXCLUDING ENTERPRISES)
123 DEPARTMENTAL SUMMARY
)
~
KITCHENER
2005 2006 $ %
Budget* Budget Variance Variance
NET DEPARTMENTAL EXPENDITURES
General Expenses 22,350,022 23,244,089 894,067 4.00
Mayor and Council 698,435 731 ,420 32,985 4.72
Office of the Chief Administrator 5,316,175 5,406,503 90,328 1.70
Community Services 20,338,375 21,914,968 1,576,593 7.75
Corporate Services 13,495,177 14,215,692 720,515 5.34
Development & Technical Services 25,732,248 26,846,290 1,114,042 4.33
Financial Services 2,206,514 2,284,579 78,065 3.54
Sub- Total 90,136,946 94,643,541 4,506,595 5.00
REVENUE
General Revenues (90,130,368) (89,336,675) 793,693 -0.88
Sub- Total (90,130,368) (89,336,675) 793,693 -0.88
NET EXPENSE (REVENUE) 6,578 5,306,866 5,300,288
* restated
PAGE 2