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HomeMy WebLinkAboutFIN-07-042 - Establishing a Reserve Fund - Local Environmental Action Fund (LEAF) - Criteria & Funding ) db KITCHENER Financial Services ~ 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 April 16, 2007 Pauline Houston, General Manager of Financial Services & City Treasurer Dan Chapman, Barbara Steiner, Terry Boutilier, Michael May, Pauline Houston ALL April 5, 2007 FIN-07-042 Establishment of a Reserve Fund - Local Environmental Action Fund (LEAF) - Criteria and Funding RECOMMENDATION: THAT a Local Environmental Action Fund (LEAF) be established as a City Reserve Fund to provide funds for environmental initiatives as approved by Council from time to time; THAT catalyst funding of $5,000,000 be provided to this fund, $2,000,000 from the Hydro Capital Investment Fund in 2007, as a partial allocation of the net proceeds from the sale of Atria Inc. and $1,000,000 per year in each of the years 2008-2010 from the Economic Development Investment Fund (EDIF); THAT Staff be directed to pursue partnership opportunities with other levels of government, the community (corporations and individuals), and city-owned agencies to leverage our investment to its maximum potential; THAT guidance for the ultimate criteria for LEAF be developed through public consultations, (including direct input from the Environmental Committee) that are to be a part of the City's update to its Strategic Plan for the Environment, and that part of those consultations aim to identify the current environmental priorities of Kitchener residents; THAT the updated Strategic Plan for the Environment acknowledge and incorporate LEAF as a key tool for the optimization of the environment for Kitchener, and; THAT at the Council Strategy Session in April 2007, focus be given to providing high level direction with respect to tangible outcomes/success measures we wish to achieve through investments made through LEAF. In addition, identification and prioritization of first initiatives / projects for 2007 be considered and approved, in advance of the completion of the update to the Strategic Plan for the Environment. BACKGROUND: On January 15, 2007, the Finance and Corporate Services Committee directed staff to examine the feasibility of establishing an Environmental Fund with a starting base capital budget of between $3 million and $5 million, with a report to be brought forward to final budget deliberations on April 16, 2007. Historically, environmental initiatives have been funded through the normal capital and operational budgeting process, and the Strategic Plan for the Environment has been the mechanism for tracking them across departments and through time. The City's currently adopted Strategic Plan for the Environment, includes the following mission statement: To ensure an environment that is ecologically sound and responsive to the health, safety and well-being of its residents by identifying and implementing policies and practices which impact positively on the environment. As part of that strategy, that 1992 strategy included seven functional areas for individual initiatives of focus that were identified at the time: o Water Resources o Environmental Education and Public Awareness Waste Management Land Resource and Growth Management Energy Systems o Natural and Recreational Amenity Areas o Resource Consumption Since the City's Strategic Plan for the Environment was adopted by City Council back in 1992, the City has been busy undertaking an extensive number of environmental initiatives and investments that are aligned with the directions of that strategic plan. A comprehensive list of those environmental initiatives that are already underway by the City has been provided in Appendix 1 of this report. 2007 Update to the Strategic Plan for the Environment: In 2007, the City of Kitchener is updating its Strategic Plan for the Environment. That update will include extensive public input through both the Environmental Committee, and through consultations with the general public to seek out their input, feedback, and priorities. This document has long served as a guidance document by identifying, prioritizing, budgeting for and monitoring environmental initiatives across all departments. The Strategic Plan is used by City Council, City administration and the Environmental Committee to improve the environmental practices of City Staff, municipal services and municipal programs. The Plan is meant to be a living document, serving to monitor the City's progress on identified issues and to address new or potential concerns. The intent of the 2007 update is to focus the efforts of both the City and its citizens on current and emerging issues of environmental concern in Kitchener, and to move the plan from largely a guidance document for City administration to a plan which can also help focus and rallying community efforts, while at the same time leveraging City investments. It has already been recognized by a number of members of City Council that if we are going to see real and concrete improvement to our environment, changes will need to happen at the local level - municipal governments, communities, families, individuals. A survey of Kitchener citizens conducted as part of the update indicates a relatively high level of concern regarding local air quality and related issues of transportation and energy use, a potential new functional area for the plan. REPORT: While acknowledging all of the work the City is already undertaking related to the environment (Appendix 1), City Council has, in directing staff to explore an Environmental Fund, clearly, recognized and reflected the community's desire to focus more effort and resources on making improvements to Kitchener's environment from the local level up. We know Kitchener's citizens value the environment. Specifically, Kitchener's own 2005 Environics survey revealed that 78% of residents consider Environmental Protection to be a priority for the community, ranking it second only to Value for Tax Dollars (83%). Other interesting data gathered through the 2005 Environics Survey that sheds some light on resident's attitudes towards the environment include: 92% Indicated they support the City spending the same amount of money as it currently does, or more, on parks, playgrounds and natural areas. 52% Agree with the statement that in 20 years they would like Kitchener to be known for having the toughest environmental bylaws in the country, even if these place restrictions on how residents manage their own property. 70% Agree with the statement that in 20 years they would like Kitchener to be known as a community that has invested in an innovative public transit system and bike trails. Since the update to the Strategic Plan for the Environment is currently underway and is expected to be complete within a year's time, it is timely that consideration be given to expanding the scope of the update to include the full exploration of the potential focus areas, funding criteria, investment requirements, investment levels, etc. of LEAF. As part of this process, a review of best practices in other municipalities should be undertaken (e.g. the Toronto Atmospheric Fund). Some areas of continued or increased environmental focus have been identified by City staff already. These concerns will likely be key areas of discussion as input is received from staff and the public this year through the update to the Strategic Plan for the Environment. They include: o Energy Efficiency and Conservation o Alternative Power Generation (e.g. photovoltaic/solar power, wind) Air Quality Climate Protection Green Buildings (public and private) Alternative fuels o ISO 14001 certification for Corporate Fleet operations Protection of Natural Environment Urban Forest (including tree planting) o Acquisition and management of Natural Lands o Smart Growth / Smart Communities Environmentally friendly development (public and private) Brownfield Remediation (roadways, private and public lands) o Social Marketing (idling, transportation demand management, cycling lanes, trail systems) It is intended that LEAF would operate as a catalyst to leverage participation and investment by all stakeholders in the community to improve our environment. It is also important to identify tangible, measurable goals, so that progress can be measured, reported and celebrated. After completing the public consultations and update to the Strategic Plan for the Environment, staff anticipate that some of the potential tools / approaches for fund might include, but not be limited to:: Leading by Example (need for political and administrative champions). Provide seed money for community initiatives (e.g. incentive programs). Build community awareness through education and advocacy. Endowment versus project fund. o Partnerships with other levels of government, the community (corporations and individuals), and city-owned agencies (e.g. Federal government's conservation initiative for ecologically significant lands or FCM initiatives, Province of Ontario, Region of Waterloo, Kitchener-Wilmot Hydro, Grand River Conservation Authority, etc.). o Require all initiatives being considered for funding to be supported by a full business case. o Use a "C02-saved-per-dollar-invested" analysis as one criteria to evaluate GHG initiatives Funding: o Provide catalyst funding of $5,000,000 ($2,000,000 from the proceeds from the sale of Atria, in 2007 and $1,000.000 per year for three years (2008, 2009, 2010) from the Economic Development Investment Fund) o Scope out the long term investment required to achieve objectives established by the Strategic Plan for the Environment o Consider the need, timing, viability, and source of additional catalyst funding for LEAF of $5,000,000, as suggested by Councillor Vrbanovic; to be used in a program to encourage matching funds from other investors (i.e. businesses, community groups, etc.). Use of funding from the Economic Development Investment Fund for environmental initiatives is being recommended at this time because the fund has achieved a greater success towards its goals in a shorter period of time than was originally anticipated. Therefore, we have an opportunity to refocus some unallocated funds. The main purpose of EDIF is to act a catalyst for economic growth, both in greenfields areas and in the redevelopment of the downtown. Clearly, a healthy environment is key to quality of life and social well-being, and such livable communities are attractive to people and the businesses that employ them. A healthy environment, then, can enhance economic development. To date, the largest part of the investment of EDIF is focused on the redevelopment of the downtown which lessens pressure for growth in greenfields areas, keeping the city more compact and, thus, having a positive impact on the environment. In advance of the investment recommendations from the Strategic Plan for the Environment to be received later this year or early next year, progress can continue to be made in 2007 as follows: o Continue to promote and pursue existing initiatives and programs; o Focus on providing high level direction with respect to tangible outcomes/success measures we wish to achieve through investments made through LEAF, and; o Identification and prioritization of first initiatives projects for 2007 be considered and approved, in advance of the completion of the update to the Strategic Plan for the Environment. FINANCIAL IMPLICATIONS: The initial catalyst funding for LEAF of $5,000,000 will be provided as follows: o $2,000,000 in 2007 from the Hydro Capital Investment Reserve Fund (projection attached - Appendix 2) o $1000,000 per year in each of the three years 2008-2010 from the Economic Development Investment Fund (fund projection attached - Appendix 3) Pauline Houston, CA General Manager of Financial Services & City Treasurer Terry Boutilier Senior Business Development Officer Dan Chapman, CA Director of Financial Planning and Reporting Barbara Steiner Environmental Planner Michael May Director of Communications and Marketing PH/mf Aooendix 1: Current Environmental Initiatives Water Resources: Ensure sustainability of water courses and water supply o Implement Master SWM Policy Stream Rehabilitation Retrofit SWM Facilities Best Management Practice (SWM Pond Maintenance Program) Monitor Water Quality o SWM Program Salt Management Program Sub watershed (and Other Drainage) Studies Regional Water Resources Protection Strategy Storm Drain Markers and Yellow Fish Road Program o Ontario Source Water Protection Act initiatives Environmental Education and Public Awareness: Education strategies, effective monitoring programs, and outreach initiatives Fleet Idling Control Protocol Kitchener Clean Air Plan Energy Management Team Initiatives Region-Wide Public Education re: reduction in Use of Non-essential pesticides Earth Day Environmental Stewardship Guidelines for New Homeowners Community Stewardship, e.g. Friends of Kitchener's Woodlands, Kitchener Natural Areas Program Develop and Implement Standard Monitoring Protocol for Watersheds Kitchener as a Healthy Community Yellow Fish Road Program Waste Management: Reduce household, industrial, hazardous waste o Administrative Programs (recycling at all City facilities and parks) o Operational Programs (e.g. leaf collection, composting) o Business Water Quality Program Land Resource and Growth Management: Land use planning that supports growth management that is cost effective and sustainable Provincial Planning Policy Regional Growth Management Strategy Kitchener Growth Management Strategy (in development) Economic Development Investment Fund Sub watershed Studies Community Plans Brownfields Environmental Cleanup of Public Property o e.g. McLennan Park Mixed Use Corridors Kitchener Built Form Review Policies for Significant Woodlands Walkable Communities Kitchener Natural Heritage Strategy in Co-ordination with Region's Greenlands Strategy Water Resources Protection Strategy Region's Re-Urbanization Working Group Explore Environmental Regulations Permitted by Municipal Act Aooendix 1: Current Environmental Initiatives Energy Systems: Reduce energy consumption and promote sustainable energy use and lifestyle o ISO 14001 Feasibility Study Kitchener Energy Management Team Initiatives Natural Gas Demand Side Management Programs (Kitchener Utilities) o Furnace Rebates - financial incentive to upgrade customers to higher efficiency furnaces o Programmable Thermostats incentives o Hydro Rebates - partnered with KWH to promote and administer off-electric water heater program o Energy Savings Tips - communicated to customers through Website and bill stuffers o Fleet Idling Protocol o Other Green Fleet Initiatives Cycling Master Plans Community Trail System Regional Master Transportation Plan Green Building Technology o Green Power o Monitor Reductions in Greenhouse Gas (GHG) Emissions (Kyoto) Partners for Climate Protection Partnership with Residential Energy Efficiency Program (REEP) Natural and Recreational Amenity Areas: Natural heritage and/or Greenlands system to link natural areas to achieve ecosystem and recreational goals Regional Greenlands System Kitchener Natural Heritage System Parks Master Plan Environmental Planning Policies Policies for Significant Woodlands Management/Monitoring Plans for City Natural Areas Leisure Facilities Master Plan Naturalization and Reforestation Urban Forest/Street Tree Program Huron Natural Area Co-operative Project Walter Bean Grand River Trail Audubon Co-operative Sanctuary Program/Certification for 2 golf courses Resource Consumption: Reduce pollution and resource consumption o Pesticide Reduction Education Program Regional Regulation of Pesticide Use Green Purchasing Policies o Salt Management Plan Green Building Technology Green Fleet Initiatives: including ISO 14001 Feasibility Study Air Quality o Kitchener Clean Air Plan o Fleet Idling Control Protocol o Waterloo Region Partners for Clean Air Aooendix 1: Current Environmental Initiatives o Environmental Committee's Report on Air Quality in Kitchener o Citizen's Advisory Committee on Air Quality Pedestrian Charter Active and Safe Routes to School o Walkable Communities Economic Development Investment Fund o Downtown Redevelopment catalyst initiatives