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HomeMy WebLinkAboutFin & Corp Svcs - 2007-01-09 SFINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 9, 2007 CITY OF KITCHENER A Special meeting of the Finance and Corporate Services Committee was held at 7:05 p.m. this date. Present: Councillor B. Vrbanovic, Chair Mayor C. Zehr and Councillors J. Smola, J. Gazzola, K. Galloway and G. Lorentz (in attendance for part of the meeting). Staff: C. Ladd, Chief Administrative Officer P. Houston, General Manager, Financial Services & City Treasurer A. Pappert, General Manager, Community Services T. Speck, General Manager, Corporate Services D. Chapman, Director, Financial Planning & Reporting S. Adams, Director of Community & Corporate Planning R. Gosse, Committee Administrator 1. 2007 BUDGET -PUBLIC CONSULTATION Councillor B. Vrbanovic welcomed the members of public in attendance advising that this special meeting was being held in order to receive comments and consultation from the public with respect to the 2007 Operating Budget. He advised that the draft budget being presented has been prepared by staff with proposed increases in certain areas but the budget has not been reviewed by Council as of this date. Ms. C. Ladd provided an overview on the City's approach to Strategic Planning and provided the governance model used by the City in shaping its course and setting strategic direction. Ms. P. Houston provided an overview of how the City's budgets are developed, the revenue sources, the operating and capital expenditures, the City's debt level and, the challenges faced in developing an appropriate budget. Several members of the public asked questions of clarification regarding reserves and operational versus capital budgets and raised concerns regarding a deficit from 2006 being applied to the 2007 taxes. As well, a concern was raised that surplus budgeting doesn't allow for good decision making with respect to cost effectiveness. Ms. Houston advised that although no final determination has been made as of this date it would appear there will be a surplus in 2006 of approximately $4.3 M. She further advised that this surplus has been generated mostly from new housing and development. She also advised that with respect to the 2006 budget Council approved a one time credit to all taxpayers resulting in no increase in the City's portion of property taxes. Ms. S. Adams and Mr. D. Chapman proceeded with the exercise of obtaining input from the public in attendance with respect to various budget items that may or may not be added over and above the base budget for 2007. Members of the public raised concerns that the workbook provided listing the budget items and the projected costs and impact on the tax bill, did not include the base budget amounts. Several members complained that it is extremely difficult to provide comments and input on the additional items without knowledge of the base budget. There were further concerns regarding the lack of detail under each of the listed items and the difficulty in providing the requested input. It was agreed not to proceed with the exercise and that the workbooks would be amended to include the base budget for the next scheduled public meeting to be held on January 17, 2007. D. Chapman pointed out that within the workbook there are five questions relating to financial planning and he asked that those in attendance take the time to answer the questions and submit them back to the City. He explained that the reason for the questions was: to solicit views on the use of the municipal price index; how assessment gross revenues should be used; areas for service enhancement or reductions; fee increases and improved efficiency; best process to be used to involve citizens; and, a general question looking for any other comments or advise relating to the 2007 budget. Councillor G. Lorentz left the meeting. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 9, 2007 - 6 - CITY OF KITCHENER 1. 2007 BUDGET -PUBLIC CONSULTATION tCONT'D) A concern was raised regarding the proposed municipal price index and how this `made-up' index would be controlled. Councillor B. Vrbanovic explained that the municipal price index relates to the costs incurred for goods and services that the City must acquire which are vastly different than the costs of goods and services for households. Members of the public expressed scepticism that the municipal price index won't be used to artificially raise taxes in the future. A member of the public raised a question regarding the 2004 Capital Budget exercise where community centres were prioritized and they asked what the status was on those community centres. Councillor Vrbanovic responded that Council has had to weigh all the issues and work with neighbourhood associations in order to prioritize which community centres are to be constructed and that Council continues to work in this regard. It was suggested that information on any operating item that is contingent on a capital program be included for the January 17th public meeting. A concern was raised regarding the Economic Development Investment Fund and the impact on retired persons. It was suggested that more thought be given to seniors who pay taxes in the City. A concern was raised regarding the one time credit given in 2006 and the fact that the proposed budget could see this amount being `clawed back'. Mayor C. Zehr explained that due to legislation governing municipalities the City had to provide the credit through the property taxes as opposed to sending a refund cheque to all taxpayers. He added that since this was a one time credit and not a permanent reduction, the 2007 budget would have to make up the 1.6% which was the amount of the credit in order to maintain the base budget. 2. ADJOURNMENT On motion, the meeting adjourned at 8:55 p.m. R. Gosse Committee Administrator