HomeMy WebLinkAboutFIN-07-022 - 2007 Operating BudgetKj _ REPO.-
Financial Services
Report To: Councillor B. Vrbanovic, Chair, and Members of
the Finance and Corporate Services Committee
Date of Meeting: February 26, 2007
Submitted By: Pauline Houston, General Manager of Financial Services & Treasurer
Prepared By: Dan Chapman, Director of Financial Planning & Reporting (2347)
Ward(s) Involved: ALL
Date of Report: February 12, 2007
Report No.: FIN -07 -022
Subject: 2007 Operating Budget
RECOMMENDATION:
For information
BACKGROUND:
On Monday, February 26, 2007 the Finance and Corporate Services Committee will review the
2007 Operating Budget. This report and related attachments provide budget detail.
REPORT:
Consistent with the past approach to presenting budget information, the proposed agenda for
2007 Operating Budget discussion follows an issue -based City -wide format. The following
information is attached for review and reference:
• Hard copy of PowerPoint presentation
• City budget summary by Department and Object
• Budget Issue Papers
This information has been three -hole punched for insertion in the binders previously provided to
Committee members.
FINANCIAL IMPLICATIONS:
As detailed in the attached information
COMMUNICATIONS:
Notice of all budget meetings and an invitation for public input has been placed on the City
website and advertised through the December edition of Your Kitchener. Additionally, formal
public notice of the Council's intent to pass the budget on April 16, 2007 has been published in
the Record.
Pauline Houston, C.A. Dan Chapman, C.A.
General Manager of Financial Director of Financial Planning
Services & City Treasurer & Reporting
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CITY OF KITCHENER
CONSOLIDATED SUMMARY BY OBJECT
EXCLUDING ENTERPRISES
2006
Budget
2007
Budget
J
`7.
$ %
Variance Variance
EXPENSES
General Levy
(77,975,300)
(77,975,300)
0
Salaries
45,770,798
48,368,832
2,598,034
5.68
Wages
20,758,856
21,764,339
1,005,483
4.84
Administrative Expenses
4,819,020
4,825,486
6,466
0.13
Equipment Reserve Charges
5,639,477
5,908,731
269,254
4.77
Boards
8,967,915
9,339,944
372,029
4.15
Debt Expense
4,483,465
4,541,532
58,067
1.30
Materials & Supplies
4,690,534
4,815,544
125,010
2.67
Professional & Contract Services
4,162,971
3,728,866
(434,105)
-10.43
Rental & Leases
1,165,907
1,110,668
(55,239)
-4.74
Grants Paid
2,319,028
2,359,635
40,607
1.75
Promotional Costs
1,253,518
1,310,339
56,821
4.53
Repairs & Maintenance
746,098
791,626
45,528
6.10
Utilities/Taxes
5,172,741
5,367,643
194,902
3.77
Transfer to Other Funds
10,045,932
11,602,298
1,556,366
15.49
Internal Charges
2,953,087
3,065,059
111,972
3.79
Internal Recoveries
(9,851,545)
(10,169,681)
(318,136)
3.23
Sub -Total
113,097,802
118,730,861
5,633,059
4.98
REVENUES
General Levy
(77,975,300)
(77,975,300)
0
0.00
Other Taxation
(2,715,552)
(2,875,608)
(160,056)
5.89
User Fees
(15,370,039)
(15,708,717)
(338,678)
2.20
Grants Received
(604,379)
(595,155)
9,224
-1.53
Rec. From Other Municipalities
(165,884)
(188,872)
(22,988)
13.86
Transfers from Other Funds
(10,517,066)
(8,892,819)
1,624,247
-15.44
Sundry Income
(5,749,582)
(6,031,383)
(281,801)
4.90
Sub -Total
(113,097,802)
(112,267,854)
829,948
-0.73
NET EXPENSE (REVENUE)
0
6,463,007
6,463,007
0.00
PAGE 1
CITY OF KITCHENER
NET SUMMARY OF REVENUES AND EXPENSES <�. "? .
EXCLUDING ENTERPRISES Kt'I�C..Hi \1;K
PAGE 4
2006
2007
$
%
Budget
Budget
Variance
Variance
NET DEPARTMENTAL EXPENDITURES
General Expenses
23,299,877
25,214,151
1,914,274
8.22
Mayor and Council
731,420
752,064
20,644
2.82
Office of the Chief Administrator
5,608,009
6,070,266
462,257
8.24
Community Services
21,885,460
23,464,608
1,579,148
7.22
Corporate Services
14,170,206
14,879,780
709,574
5.01
Development & Technical Services
26,738,152
27,603,990
865,838
3.24
Financial Services
2,327,827
2,378,079
50,252
2.16
Total Departmental Expenditures
94,760,951
100,362,938
5,601,987
5.91
Total General Revenues
(94,760,951)
(93,899,931)
861,020
-0.91
NET EXPENSE (REVENUE)
0
6,463,007
6,463,007
0.00
PAGE 4
City of Kitchener
2007 Operating Budget
Issue Paper Index
Mileage Rate for 2007
Compliance and Training Coordinator
Hours of Work
Arc Flash Safety Requirements
Election Savings
Transportation Demand Management
Land Use Planner
Development Approvals Process Consultant
Economics Co -op Student
Breithaupt Staffing
Bridgeport Community Centre
CMCC Expansion
VHCC Expansion
FM Community Centres
CSD Analyst FTE
Heritage Planner
Service Growth
Humane Society Contractual Services
Part -time Arts and Culture Administrative Support
Diversity
Grants Day Follow -up
WRGS -REEP
Budgeting for Net Supplementary Taxes
Investment Income
Legislative Changes
CITY OF KITCHENER
2007 BUDGET ISSUE PAPER
ISSUE: #1 - Mileage Rate
FUND: Operating
DEPARTMENT: Financial Services
DIVISION: Financial Planning & Reporting
BACKGROUND:
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 $0.43 per kilometre for the first 5,000 kilometres, and $0.39
per kilometre thereafter.
RATIONALE / ANALYSIS:
The cost to operate a vehicle is estimated to be $0.43 per km (calculations on following page).
The following table provides a comparison of mileage rates provided by municipalities:
Comparison of Area Municipalities per KM
City of Kitchener 0.43 First 5,000 km
0.39 Over 5,000 km
City of Waterloo 0.44
City of Cambridge 0.43
Region of
Waterloo 0.42
City of Guelph 0.45 First 5,000 km
0.39 Over 5,000 km
City of Hamilton 0.50 First 5,000 km
0.44 Over 5,000 km
City of Burlington 0.44
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
2007 — $0.50 first 5,000 km and $0.44 over 5,000 km
FINANCIAL IMPLICATIONS:
None.
RECOMMENDATION:
That the City of Kitchener's rate per kilometre remain at $0.43 for the first 5,000 kilometres, and $0.39 for each
additional kilometre.
ISSUE:
Mileage Rate
Assumptions & Calculation of Annual Operating Costs for 2007
Assumptions
Capital Cost
24,432
Salvage Value
4,035
Depreciation, over 5 years
4,079
Insurance
1,530
Average annual interest, at
6.0%
782
Kilometres Per Year
24,000
7.5 km
per
Fuel Consumption
litre
Annual Fuel Consumption
3,200
Repair Allowance
1,000
Fuel Cost ($ per litre)
0.90
Annual Operating Costs
Depreciation
4,079
Insurance
1,530
Interest
782
Licence
74
Repairs
1,000
Fuel
2,891
10,356
Cost Per Kilometre
0.43
II
CITY OF KITCHENER
2007 BUDGET ISSUE PAPER
ISSUE: #2 - Compliance and Training Coordinator
FUND: Operating
DEPARTMENT: Community Services
DIVISION: Operations
BACKGROUND:
The Operations Division is responsible for over 100 different work related activities. At present,
Operations does not have Standard Operating Procedures (SOP's) that would outline the
functions within each activity. Each activity may have numerous risks /hazards that are present
and need to be identified properly. The SOP's would be a reference for staff to use to ensure
they are properly performing the duties of their role and would be reviewed on a regular basis.
SOP's would also be used in the training of new and existing staff.
RATIONALE / ANALYSIS:
Currently, Operations has little or no Standard Operating Procedures in place. The Compliance
and Training Coordinator would be responsible for creating the SOP's and training staff. While
it is believed that Operations staff are highly trained and currently work in a safe and effective
environment, we do not have documentation to verify this.
FINANCIAL IMPLICATIONS:
That the operating budget receives an increase in the Technical /Administrative Staff index to
provide $100,000 for the wage /fringe benefits costs required to hire a Compliance and Training
Coordinator. This position would be partially funded by the Sanitary Utility. The breakdown
would be 85% funded in the Operations budget and the remaining 15% would be funded by the
Sanitary Utility.
RECOMMENDATION:
That Council approves $100,000 in funding, $85,000 to be allocated to the Operations (CSD)
budget and $15,000 to be allocated to the Sanitary Utility (DTS) budget, for the hiring of a
Compliance and Training Coordinator to create, train staff and maintain the Standard Operating
Procedures.
II
CITY OF KITCHENER
2007 OPERATING BUDGET ISSUE PAPER
ISSUE: #3 - Hours of Work Legislation
FUND: Operating
DEPARTMENT: Community Services Department
DIVISIUN: Uperations Division
BACKGROUND:
The proposed hours of work legislation that will be changed in January 2007 under Provincial
Legislation will impact Operations in several areas. Two such areas that will be affected are the
on call component within the Sanitary Sewer Section and the Winter Control component within
the Operations Road Maintenance Section.
On Call
Operations sewer maintenance and pumping station staff are on call after their 8 hour day from
7 am to 3 pm providing on call coverage for the 3 pm to 7 am time frame and weekends. The
new legislation requires that 8 consecutive hours be scheduled off duty within a 24 hour time
frame. Under the current on call system, Operations would be unable to comply with the 8
consecutive hours off requirement of the new legislation.
Winter Control
The winter control component has traditionally had plow routes that were in the area of 15 hours
in duration. The new legislation reduces the maximum hours of driving to 13 therefore the
current plow route has had to be reduced in size. Operations' has taken the opportunity to also
assess its plowing methods. Cul -de -sacs have been identified as an area where our plowing
methods could be more efficient.
RATIONALE / ANALYSIS:
On Call
The on call schedule will be revised to comply with the proposed new legislation. In order to do
this, a shift will be added to reduce the on call component and ensure that staff is provided with
8 consecutive hours off duty in each 24 hour period. The shift would cover the 3 pm to 11 pm
time frame. The on call staff would then be available to cover the 11 pm to 7 am time frame and
weekends. The addition of this shift will require moving experienced staff into the shift and hiring
temporary staff for the daytime peak season from April to November. The addition of a shift will
also reduce the overtime hours that staff works in response to calls from the public. A cost
savings would be realized.
Winter Control
The winter control component will be modified in an attempt to comply with the new driving
hours of work legislation. To do this, a number of routes have been modified and supplemented
with two cul -de -sac routes. Operations' has viewed this as an opportunity to assess the method
of plowing performed on cul -de -sacs. It has been determined that cul -de -sacs could be plowed
more efficiently with loader plows than can be done with plow trucks. The plow routes have
"IMPTUMMITIN
been modified to incorporate the use of loaders with plows to address two cul -de -sacs routes.
This should reduce the length of time required to plow the routes, with the intended result being
to allow Operations to comply with the new legislation. Two temporary staff has been hired and
two loaders are being rented for the winter season. This has created the potential to provide a
higher level of service to the cul -de -sacs type streets while freeing up the plow trucks to respond
to other portions of the city where they are more effective.
The changes incorporated this season will be monitored and evaluated to determine if the
additional resources made available are in fact sufficient for the Corporation to be in compliance
with new legislation, while still being able to meet other legislation including Minimum
Maintenance Standards.
FINANCIAL IMPLICATIONS:
That the Operating budget receives an increase of $130,800 to provide for the compliance of
the hours of work legislation with respect to the on call, winter duties.
On Call
The on call component requires the addition of 2 temporary staff and shift premiums for the
afternoon shift.
• 2 temps at $17.37 plus 24% fringe for 8 months (36 weeks) _ $62,000 per year
• 4 staff at 2080 hours /year with additional shift premium of $1.05 = $8,800 per year
• Shift efficiency reducing overtime hours = $25,000 per year based on assumptions
regarding the work that will be performed during the 3 pm to 11 pm shift
• Total on call component = $45,800
This component would be allocated to the Sanitary Utility budget.
Winter
The winter component requires the addition of two temporary staff and two rental loaders.
• Temp Staff $17.37/hr + 24% fringe benefits x 5 months x 2 people = $35,000
• Loader @ $5,000 /months x 5 months x 2 loaders = $50,000
• Total winter component of $85,000
This component would be allocated to the Operations operating budget.
The total amount to be allocated to the operating budget would be $130,800.
RECOMMENDATION:
That Council approves the $130,800 funding, $85,000 to be allocated to the Operations
operating budget and $45,800 to be allocated to the Sanitary Utility operating budget in order for
Operations to comply with the new Hours of Work legislation.
CITY OF KITCHENER
2007- OPERATING BUDGET ISSUE PAPER
ISSUE: #4 - ARC FLASH SAFETY REQUIREMENTS
FUND: OPERATING
DEPARTMENT: CORPORATE SERVICES
DIVISION: FACILITIES MANAGEMENT
BACKGROUND:
An arc flash is a dangerous condition associated with the release of energy caused by an
electric arc. It is an explosion involving an electric arc operating at temperatures of several
thousand degrees Celsius and a pressure wave caused by the arc. The resulting explosion can
cause molten metal particles, equipment parts and other loose items to be expelled from the arc
area in addition to the expulsion of hot, ionized gas. This may result in trauma, hearing and
eyesight loss and burns to personnel in the area.
The hazard exists in switchboards, panel boards, industrial control panels and motor control
centres.
The first steps to providing a safer environment for personnel is to provide arc flash training and
personal protective equipment (P.P.E.). P.P.E. includes clothing, gloves and headwear that help
to mitigate the effects on an arc flash event for a worker who is exposed.
RATIONALE / ANALYSIS:
N.F.P.A. 70E is the legislation in place in the U.S. to deal with arc flash. In Canada, a technical
committee has commenced the development of the Canadian equivalent to N.F.P.A. 70E. This
standard will be CSA Standard Z462. It is expected to be released in 2008. This standard will
likely be adopted by Provincial governments and enacted into law that will mandate Canadian
companies to comply with the work practices now mandated in the U.S.
If our requirements follow the U.S., we will need to retain contractors to evaluate our equipment
and field marking our panels in all our buildings. Preliminary estimates provided by contractors
suggest that we would be looking at almost $500,000 to perform this work.
FINANCIAL IMPLICATIONS:
In anticipation of these new regulations and acknowledging the hazard exists, we are budgeting
in 2007 to provide training and P.P.E. We have 8 staff in Facilities Management requiring full
issue of clothing costing $1,695 plus taxes. Training courses will cost the balance of the
allocation for 2007.
RECOMMENDATION:
That $15,000 be budgeted in 2007 to provide staff arc flash training and personal protective
equipment.
CITY OF KITCHENER
2007 BUDGET ISSUE PAPER
ISSUE: #5 - Election costs over 4 yrs. Vs. 3yrs
FUND: OPERATING
DEPARTMENT: Corporate Services Department
DIVISION: Legislated Services
BACKGROUND:
Prior to 2006, terms of Council were for 3 years, now the term is 4. In the past elections were
budgeted and that cost was spread out over three years; now the cost can be spread out over 4.
RATIONALE / ANALYSIS:
The 2010 election budget will be based on the 2006 budget plus 2% per year inflation and
minus 4% interest on the reserve balance. An amount of approximately $100,000 will be
deposited into the election reserve in 2007, 08 & 09 and this will be used with the 2010 budget
to pay for the election. The reduction from $130,222 in 2006 to $ 99,033 will result in a net
savings of $31,189.
FINANCIAL IMPLICATIONS:
A savings of $31, 189
RECOMMENDATION:
CITY OF KITCHENER
2007 BUDGET ISSUE PAPER
ISSUE: #6 - Transportation Demand Management
FUND: Operating
DEPARTMENT: DTS
DIVISION: Engineering — Transportation Planning
BACKGROUND:
Transportation Demand Management (TDM) is a wide range of policies, programs, services and products
that influence how, when, where and why people and goods are moved. TDM approaches transportation
issues from the demand side as opposed to the supply side. TDM is not about reducing the number of
cars there are in the city at large, it is about people making educated choices in their travel mode options
and ultimately reducing the number of vehicle trips.
While there are many benefits to a TDM program, some of the significant economic benefits include:
• Reduced cost of transportation infrastructure — roads and parking
• Reduced vehicular congestion
• Reduced vehicular collisions
• Reduced automotive costs
• Reduced travel costs
• Reduced environmental impacts
• Reduce absenteeism and increased productivity
• Higher pedestrian activity can increase business — especially in the core
The City must examine its own polices that affect transportation for the corporation. The City must also
review policies with respect to planning, development and transportation for the City as a whole.
RATIONALE / ANALYSIS:
It is imperative to develop an entire TDM strategy based on all of the strategic options. The City must
develop a complete program for the way it runs itself in order to demonstrate a leadership role for other
corporate citizens to emulate. A "champion," a TDM Project Coodinator, is necessary in order to develop
and maintain all of the necessary initiatives so that the City can be a model for other businesses.
There are many initiatives that are used widely with corporations that have a TDM Program. All of the
initiatives have actions and strategies, some of which include:
• Subsidized transit passes
• Ridesharing and preferred parking
• Shared parking
• Cycling
• Fleet pool
• Flexible work hours
• Telecommuting
• Parking pricing
A program such as this is a major undertaking and can not be initiated using our existing resources. To be
truly effective, we must realize that we are trying to change people's attitudes about their vehicle.
Paradigm shifts such as this can not be achieved within a few years, and we have to be prepared to make
this a permanent position.
FINANCIAL IMPLICATIONS:
The annualized cost of a TDM Coordinator would be approximately $100,000 for salary and fringe
benefits. The main cost of the program is in the promotions and subsidies that are used as part of the
effort to shift commuters out of their single occupant vehicle.
When one considers that the development of a surface parking space is approximately $3,000, an above
ground structured space is $30,000 and a below ground structured spaces is $40,000, the savings are
substantial if we can divert resources to other modes of travel.
TDM programs usually start out small and grow gradually. If we assume that as part of a TDM program
that a transit subsidy was developed, if 100 existing monthly parkers took advantage of that, the costs
would be $60,000.
It is proposed that this position commence July 1, 2007 with an incentive fund of $30,000. The 2007
budget impact would then be:
Salary and fringe benefits $50,000
Incentives 30,000
Total $80,000
RECOMMENDATION:
That a Transportation Demand Management Coordinator be hired on a full time basis effective
July 1, 2007.
CITY OF KITCHENER
2007 BUDGET ISSUE PAPER
ISSUE: #7 - Additional Land Use Planner
FUND: Operating
DEPARTMENT: Development & Technical Services
DIVISION: Planning
BACKGROUND:
Staffing levels have declined from 39 in 1995 to 25 (plus 1part -time contract and 2 co -op
students) currently. At the same time, the community has continued to grow, and the level of
complexity of planning and development issues has also increased.
RATIONALE / ANALYSIS:
COMPARISON TO HISTORIC STAFF LEVELS:
As of 1995 Kitchener had 39 staff in Planning & Development. Our 2006 staff level is 25 full -
time permanent FTE (includes 2 I.T. / Mapping staff dedicated to Planning & Development, plus
4 DTS Admin staff dedicated to P &D) plus 1 part -time Heritage Assistant on contract and 2 co-
op students. Most of the staff -level reduction was from departures not replaced. Each small
incremental decrease in staff resulted in remaining staff picking up the slack, and making do
with less. During the slower economic growth period of the early to mid 90s this was justifiable,
but when growth rates accelerated over the past 6 -8 years, there was no corresponding
increase of P &D staff.
45
39 209,872 200,000
40
35 181,27 175,000
30 150,000
25 125,000
u
20 100,000 i
15 75,000
10 50,000
5 25,000
0 0
ti ti ti ti ti ti ti
Year
FTE ��Population
In some cases, technological change justified the reduction in staff. For example, in the past we
had 4 full -time and 1 temporary drafting staff. With digital mapping technology, we are able to
keep pace with 2 staff. In the past we had 4 full -time zoning officers and one secretary working
on letters of compliance for real estate transactions. Our efficiency improved with the "vacuum
by -law" approach to legalizing small pre- existing non - conformities and, lately, the widespread
use of title insurance has resulted in significantly less volume of requests for letters of
compliance. We are now able to keep pace with approximately 1.25 FTE devoted to zoning
compliance.
Despite the improved efficiencies, we are no longer able to make do with less. In fact, given the
increasing complexity of development review, we are expected to do more with less. The
inevitable result is that staff resources have been assigned to the review of development
applications and proactive planning work (e.g. official plan update, environmental strategic plan
update, growth management policy, urban design guidelines and design briefs, comprehensive
pre- zoning of redevelopment areas) has been put on the shelf. Our service level on
development applications continues to decline, and the backlog of planning projects continues
to grow.
Because we have devoted most of our resources to development applications, and have put
City- initiated planning projects on the shelf, we have been left reacting to problems instead of
proactively getting ahead of the issues.
Planning Division resources are stretched thinly and, as a result, we have left ourselves very
vulnerable to the loss of key personnel. We have a lack of depth which would allow us to cross -
train staff to provide back -up to individual specialists and to enable some succession planning.
COMPARISON TO NEIGHBOURING CITIES
Cambridge - 58% of Kitchener's population, similar amount of absolute growth over past 3 -5
years, 30 staff in Planning & Development (13 in Development Review, 8 in Policy Planning, 8
in Administrative Services + 1 Commissioner) — has 24 P &D staff per 100,000 population.
Waterloo - 53% of Kitchener's population, similar amount of absolute growth over past 3 -5
years, 21 staff in Planning & Development (11 in Development Review, 8 in Planning and 2 in
Administrative Services) — has 18 P &D staff per 100,000 population.
Looking to the near future, Kitchener's share of the tri- cities' growth will increase. Compared to
our neighbouring cities, we have more available greenfield land for newly developing
neighbourhoods, and more opportunities for re- urbanization of brownfield sites, mixed -use
corridors, and downtown development.
GROWTH IN ASSESSMENT:
Kitchener has seen significant - perhaps unprecedented - growth in assessment in recent years.
This growth is largely the result of new development, redevelopment, adaptive re -use and infill.
These projects all resulted from development approvals which are the product of P &D staff
work. The City's rate of assessment growth has averaged 2.2% per year over the past ten
years and — although made possible by the work of P &D staff — has not resulted in an increase
of P &D staff.
OTHER CONSIDERATIONS:
The Environics survey demonstrated that the community -at -large is not satisfied with Planning
services, does not feel there is enough public engagement on planning matters, and is willing to
spend more to improve these services. The Who Are You Kitchener? Project confirmed those
results, and demonstrated that planning and development issues - particularly environmental
planning, growth management, urban design, and heritage conservation — are key issues for the
community. More public engagement should help develop better community awareness, which
in turn should result in better decision - making.
The specialized nature of P &D work has evolved dramatically over the past 15 years. Kitchener
did not have the benefit of a heritage planning specialist until the early 90s. We did not have
urban design expertise on staff until the late 90s, and we did not have an environmental planner
until 2000. Now all three of those specialties have one full -time senior planner, but each of
those individuals has a bigger workload than one FTE can handle.
The Healthy Community Plan sets out a major challenge, and illustrates the increasing
complexity of P &D work, as the need to synthesize social, economic and environmental
interests is greater than ever before. However, no additional resources have been provided to
implement the plan's recommendations with respect to P &D functions.
Council and the community have clearly stated the need for improved public consultation on
planning matters. This requires more resources, not only to prepare background information,
conduct surveys and facilitate public meetings, but more importantly to enable follow -up
discussion on the issues raised, to work with various parties on resolving issues, and to balance
or refute a wider range of competing interests.
The nature of our work continues to grow and become more labour- intensive. Planners are
expected to lead as agents of change as we strive to maintain and improve quality of life in a
growing community. We are no longer simply processing applications and gathering responses
on technical compliance matters; in addition to the facilitation role we are increasingly becoming
the negotiators of design improvements necessary to ensure that new development makes a
positive contribution to the community. This is inherent in infill or reurbanization projects which
must be compatible with established neighbourhoods and immediate neighbours. It is equally
important in new suburban communities, so that the outward expansion of our community is not
"just another subdivision" but creates identifiable neighbourhoods which contribute to complete
communities as required by provincial policy, and as demanded by Kitchener residents, as
found by the Environics survey results:
• Livable, attractive communities are created over time as the result of hundreds, even
thousands, of development decisions. Continue with making the right decisions, for now
and in the years to come.
• People want to live in a community that has thoughtfully planned its neighbourhoods and
housing alternatives, its business and industrial parks. People want an effective balance
between our economic need as a city, the needs of business and industry and the needs
of residents.
• Continue to seek out and bring positive residential and business development to
Kitchener which reflects our shared vision for a healthy, well balanced community in
which to live and raise families.
• 38 per cent of residents indicated that they would like to see the City spend more on the
planning and development of the downtown; 26 per cent of residents said spend more
on the planning and development of the city as a whole; 18 per cent of residents said
spend more on the appearance or look of new neighbourhoods.
Large Scale and Complex Development Projects
• UW health sciences campus (likely the single most complex development approval in
the City's history, including coordination with various branches of UW administration and
design consultants, negotiation of urban design and architectural treatments,
coordination with Region and UW on road and intersection design, accommodating and
integrating rapid transit, providing for appropriate streetscape environment for pedestrian
movement; most importantly there are future phases to follow)
• Arrow Lofts (including negotiation of urban design and architectural changes, heritage
impact assessment, sun - shadow impact, significant public consultation and issue
resolution, OMB hearing)
• Kaufman Lofts (including site plan approval, heritage permit applications, negotiation of
architectural design for addition, stratified severance, lifting of holding provisions,
condominium approval, part lot control exemption for parking).
• The Sportsworld redevelopment is another large scale, complex development. The zone
change was one of the first steps towards the redevelopment, and this was successful in
part because of P &D staff's role in encouraging the design -based approach to planning,
and facilitating the fast - tracking of the application. In order to accommodate this, one
staff member was appointed as the day -to -day contact, and a number of other
applications reassigned in order to enable the prioritization of the Sportsworld. The lack
of staff resources to handle the reassigned workload resulted in other projects simply
being shelved.
• Another project whose success hinged on staff's role in facilitating, encouraging and
fast - tracking was the Stirling Bridge 90 Woodside redevelopment. This included an
unprecedented level of public engagement early on and throughout, negotiation of urban
design improvements, and facilitation of dispute resolution between industrial neighbour
and residential developer.
• Sunrise and Laurentian Power Centres (including retail impact, traffic impact, site design
to accommodate vehicle movement and pedestrian movement)
• Drewlo Queen Street: site plan and heritage permit, normally not the most complex or
controversial type of development applications. Ended up requiring significant
investment of time, over a period of years, involving approximately 8 different P &D staff
as well as a heritage consultant, and an OMB hearing.
The examples above are examples of the increasing magnitude and complexity of development
projects in recent years. Despite that, they likely represent the "low- hanging fruit ", i.e. the more
predictable, feasible, manageable development opportunities. As we move further into the era
of reurbanization, the challenge and complexity of projects is expected to increase.
Next up:
• Sandberry lands, including comprehensive review of employment lands, retail impact,
traffic impact.
• West side OPA, including Upper Strasburg Creek storm water management targets,
maximizing infiltration in wellhead recharge area, complete (mixed -use) community
• Blair Creek Doon south, including maximizing infiltration to maintain baseflow in Blair
Creek.
• Hidden Valley integration of road functional design with business park design,
minimizing impact on natural areas, negotiating protection or acquisition of ESPA and
candidate ESPA lands
• Michelin /Goodrich site re -use or redevelopment
• Grand River South
• Centre Block
• Adam - Blucher lands
Integrated Decision - Making
We are past the age of "silos" and of working in isolation of each other. Recent years have
witnessed better coordination between Planning & Development and Development Engineering,
Transportation Planning, Design & Construction, Community Services /Parks, Regional Planning
and Engineering, and GRCA initiatives. To enable good decision - making it is important to be at
the table; P &D staff have made significant contributions to the following projects, and with good
results:
• Development Charge Background Study, by -law and representation at OMB
• Leisure Facilities Master Plan project team
• Environmental Assessment for Ward's and Brigadoon Ponds
• Doon Valley Golf Course expansion (feasibility studies, development approvals,
representation at OMB)
• Blair Creek functional drainage study
• Upper Strasburg & Alder Creeks subwatershed study
• Citizens' Air Quality Advisory Committee
• Twin Pad Arena site selection team
• Various Regional Road design project teams (King West, Bridge Street / Lancaster,
Highland Road)
• Regional Growth Management Strategy implementation
• Environmental Assessment project team for Hidden Valley / South Kitchener
Transportation Corridor
• Environmental Assessment for Region's rapid transit initiative
• Greenlands Strategy (Environmentally Sensitive Landscapes, Valleylands, Woodlands)
• Regional Re- Urbanization Working Group
• Regional Land Budget (residential; employment)
Many of these will continue to be ongoing obligations, and there are more to come, including
detailed design of River Road, Fairway Road, comprehensive review of employment lands, and
a wide variety of downtown planning issues. Unfortunately P &D staff do not have the resources
to be there whenever asked.
Cost to Service Growth
Kitchener has grown significantly over the past decade. P &D staff complement has decreased
from 39 to 25 over that time.
Kitchener is forecast to grow by 60% over the next 25 years. This growth can and should be
beneficial, but those benefits will be missed if the growth is not well planned. The planning of
our community's growth over the next few decades must not be left solely to chance or market
demands. It must be well managed and comprehensively planned, and this requires staff
resources.
Development approvals are necessary to allow for growth. Growth results in increased
assessment, and that assessment should pay for the costs of providing services needed by the
new growth. From a P &D standpoint, new development is only one aspect of our responsibility.
A larger community has more needs for P &D services. Some of these are represented by
applications and inquiries for driveway widenings, fence and deck constructions, variance,
severance and demolition. Others are represented by growing community interest in matters
such as heritage conservation, transit - oriented planning, traffic calming, air quality,
environmental issues, proactive planning of areas in transition, and wise management of
growth.
Legislative Change
The new Provincial Policy Statement (PPS) was adopted in March 2005. It promotes the
concept of "complete communities." Planners are the agents of change to promote a balance of
employment, shopping, institutional and recreational opportunities within newly developing
residential communities. The PPS contains new policies for the protection of employment
lands; redesignation of lands planned for industrial or office use cannot take place without a
comprehensive review of employment lands.
The Province of Ontario enacted the Places To Grow Act in 2005 and the Places To Grow —
Growth Plan for the Greater Golden Horseshoe in June 2006. These set a new course for
growth, with aggressive forecasts of both population and employment for our region. It also sets
aggressive targets for reurbanization, as 40% of new residential growth is to occur within the
built -up area. The downtown area Urban Growth Centre Density has a target of 200 persons +
jobs per hectare, and new Greenfield development has a target of 50 persons + jobs per
hectare.
These changes will demand more investment of time from city planners, as re- urbanization sites
typically have inherent constraints, as well as neighbours to be accommodated. The design and
density of newly developing neighbourhoods will no longer be the same as the recent past, but
the negotiation of appropriate mixed -use communities and achievement of density targets with
appropriately distributed density will also demand more time from city planners.
Need for Additional Land Use Planner
The development industry is increasingly expressing dissatisfaction with the level of service
provided by City P &D staff on development applications. This dissatisfaction is not generally
with the quality of planning input, advice or direction. It is typically a concern with the slow
turnaround time and the delayed response to inquiries and applications.
The level of service on short -term turnaround items, such as part -lot control exemptions,
Committee of Adjustment applications, and site plan preliminary approvals, has generally been
maintained as these items have pre -set schedules. Other longer -term development
applications, such as zone change, official plan amendment, subdivision, and site plan
implementation, tend to suffer as a result of staff prioritizing in favour of the short -term
deadlines.
Council has continued to support the community expectation of more public engagement on
development applications, including those not required by legislation. This adds to the need for
development resources.
Urban Design Expertise
Kitchener, like most large and mid -sized cities in North America, has been moving towards a
design -based approach to planning and development for several years. Our Urban Design
Manual has given good direction on technical standards and guidelines, and continues to
evolve.
The benefit of having urban design expertise on staff is best illustrated by the community
acceptance of reurbanization projects like Arrow Lofts and 90 Woodside, both of which were
facilitated by P &D staff towards a design which contributes positively to the existing community.
In contrast, the lack of design -based involvement early on in the 560 Queen St S development
resulted in a very adversarial process with limited community acceptance, which proceeded to
the OMB with widespread neighbourhood opposition. The design charrette conducted early in
the consideration of the 90 Woodside development was instrumental in developing community
support for the project. This required preparation time, small -group facilitation by a number of
City staff. 100% of the 34 participants who completed surveys identified that the charrette was
valuable and 97% wanted to be kept informed with the project.
These days almost every development application is a design -based application. Whether a
zone change, variance, or site plan application, most applications require and benefit from the
input of an urban design specialist. While there is some urban design expertise among P &D
staff, the rapidly increasing demand on one position - the Senior Planner, Urban Design - has
resulted in this one position being unable to keep up with the development application workload
without significant amounts of overtime worked, and even more investment of personal time to
keep policy projects from coming to a halt.
The day -to -day demands of development applications make it extremely difficult to make
progress with City- initiated planning matters. The official plan's commercial policy amendment
(MPA 36) was adopted in 2001, and the implementing design guidelines and zoning for both the
Mixed -use Corridors and Mixed -use Nodes should have followed shortly thereafter. Owing to
the lack of staff resources dedicated to these projects, the design guidelines for Mixed -Use
Corridors were not completed until July 2005 and the implementing zoning for Mixed -use
Corridors is approaching completion in early 2007. Guidelines and zoning for the Mixed -use
Nodes are proceeding, but more slowly than preferred. One of Council's priorities for design is
to have improved design in new subdivisions and newly developing neighbourhoods. This
project has been given high priority, and should be completed by March 2007, but if not for the
two senior planners investing a considerable amount of their own personal time this project
would have stalled completely. Every new subdivision application made in advance of
completed guidelines for neighbourhood design will result in either a poorer quality
development, or significant time invested by both staff and consultants in negotiating redesign.
MPA 36 also set out the City's commitment to complete design briefs for new commercial areas.
We have made no progress on these except where jump - started by imminent development (e.g.
Deer Ridge Centre and Sportsworld).
Community interest in improved design of new development was confirmed in the Environics
Survey. Given that much of the City's future development will be infill /reurbanization, the
community acceptance of this will be much improved if the development is of an appropriate
type, which will be influenced greatly by the quality of design.
Customer feedback to senior D &TS confirmed that completion of these outstanding guidelines
would assist the development industry and design consultants in developing concepts that are
in line with City expectations, and reduce the time and effort invested in discussion, explanation
and negotiation of redesign. Furthermore, the completion of the implementing zoning would add
certainty to investors considering opportunities in Kitchener and comparing development
potential in other communities.
Staff's efforts to implement the official plan policies in advance of completed design guidelines
has resulted in considerable time and effort, and adversarial negotiations, to achieve improved
design in Mixed -Use Nodes, such as the Block Line / Homer Watson node where new
developments are now proceeding. One residential townhouse site went through months of
adversarial negotiation on site design before settling on an acceptable concept. A nearby
commercial site went through a similar negotiation before being appealed by the owner to the
OMB as the sides could not come to a consensus.
The urban design planner is also in demand on street design projects including City and Region
roads. This has resulted in significant improvements to streets already reconstructed (e.g.
Market Lane, King Street East, Water Street) as well as those for which construction is not yet
complete (e.g. Highland Road, Queen St South, River Road, Ira Needles Boulevard, Fairway
Road, Bridge Street, Duke Street). A second urban design specialist would enable the City to
add some back -up and depth to the limited resource now available, as well as provide for
succession planning. A planner — not a senior planner — is requested in order to take on the
design responsibilities for individual site plan and zone change applications, and assist with
completion of implementing guidelines and zoning.
COST JUSTIFICATION:
D &TS Departmental Strategic Plan showed that staff levels have remained constant despite
significant growth of the community. In fact some areas of the department have seen growth in
staff levels, while P &D staff level has declined.
Recent growth in assessment has enabled Council to keep tax increases lower than the rate of
inflation, even to a zero increase in 2006. The development that generates this new
assessment requires P &D approvals including one or more of site plan, subdivision, zone
change, official plan amendment, severance, variance, heritage permit, part lot control, etc. The
City needs adequate numbers of staff to manage these applications.
This is not a question of maintaining existing service levels. The existing service level has
resulted in major concerns within the development industry in regards to responsiveness of staff
to general inquiries, slow turnaround times for detailed implementation plan review, and delays
in final approvals. We need to rebuild some of the staff complement lost in the 90s in order to
provide an adequate service level.
Corporate Plan
The City's Corporate Plan outlines five Strategic Areas of Focus. These are described as "the
key ingredients for change" which are "essential to reaching the destination — our different
future." With the current level of Planning Division staffing we are less and less able to live up
to these goals.
1. Service First: we should be anticipating customer needs and providing consistent flow of
information. We are very much in reactive mode and scrambling to communicate on today's
urgent matters;
2. Community and Business Relations: we should be providing services and processes that
are predictable and consistent, and seeing complaints decreasing annually. We are failing
to be consistent and complaints are increasing.
3. Predictability and Results: we should be educating customers, but cannot afford the time it
takes to do so. As a result, we are back - tracking and reacting to customer - oriented
problems;
4. Pride in the Workplace: interestingly, this is one that continues to be a strength despite the
current stress levels. The one area of weakness is that individuals are not feeling valued.
5. Change and Improvement: we should be improving business processes enthusiastically,
energetically and with minimal resistance. Energy levels are drained, and change is
enthusiastically implemented only when it results in immediate off - loading or discontinuation
of work.
Departmental Strategic Plan
The Development & Technical Services Strategic Plan was completed and presented to Council
in mid 2006. The plan identified staff resource shortage as a critical issue in the Planning
Division. The results of the shortage are becoming increasingly evident: staff absence due to
illness has increased; higher stress levels are noticeably affecting employees' demeanour in the
workplace; staff are departing for other places of employment; workplace stress is causing
disruption to personal lives.
FINANCIAL IMPLICATIONS:
$83,222.48 annually in Operating Budget.
RECOMMENDATION:
That the amount of $83,222.48 annually be allocated in the Operating Budget to enable the
Planning Division to add a land use planner, preferably with urban design expertise.
CITY OF KITCHENER
2007 BUDGET ISSUE PAPER
ISSUE: #8 - Consultant Support - Development Process & Fee Review
FUND: Operating
DEPARTMENT: Development & Technical Services
DIVISION: Planning
BACKGROUND:
The Planning Division is responsible for managing development applications as well as long
range and policy planning functions. Our overall operating budget for 2007 is expected to be a
net deficit of $1,011,442. Our revenue for 2007 is expected to be $856,515. Almost all of that
revenue comes from development application fees.
We acknowledge that the cost of managing development applications should be shared by the
applicant (for whom we provide a service) and the taxpayers (on whose behalf we represent the
greater public interest). In order to set application fees at an appropriate rate we need to
measure the amount of staff time and resources typically devoted to each of the various types of
development applications.
RATIONALE / ANALYSIS:
In addition to undergoing an internal audit in 2007, the Planning Division proposes to retain a
consultant with expertise in this area to provide an unbiased assessment and to measure the
resources invested in development review. An expected outcome - product of this exercise is
that additional revenue generated by any increased fees should justifiably be used to hire
additional staff in order to improve the level of service to applicants.
FINANCIAL IMPLICATIONS:
$10,000 in Operating Budget.
RECOMMENDATION:
That an amount of $10,000 be budgeted in 2007 for the Planning Division to retain a consultant
to recommend appropriate development application fees based on measurement of staff
resources spent on each application type.
CITY OF KITCHENER
2006 BUDGET ISSUE PAPER
ISSUE: #9 - Increasing the City's Capacity for Economic Analysis
FUND: Operating
DEPARTMENT: Office of the Chief Administrative Office
DIVISION: Economic Development
BACKGROUND:
Changing provincial and regional policy has forced municipalities to rethink how we plan our
economy and employment lands. Shifting away from traditional suburban business parks, to
more urban, mixed use developments requires a better understanding of the dynamics of our
urban economy. In particular, we need to better understand the role the City of Kitchener must
play in facilitating growth of this new urban economy. In addition, various departments of
government conduct policy and program planning based on assumptions about the future
economy of the region and its impact on city finances (assessment growth), the demand for
community services (employment, personal income), and the demand for land (labour market
growth, investment, economic structure), and the economic impact of major investment
decisions or plant closures.
The City of Kitchener does not have any positions in the corporation that provide economic
analysis services. Staff in Economic Development, Planning, Community Services and Finance
must rely on third -party information, often from Regional or Provincial data sources. While
available at the neighbourhood scale, this data is often not broken down beyond a regional
scale, partly due to our lack of in -house resources in the field of spatial economics.
The Department of Economic Development proposes to begin enhancing the city's capacity for
economic analysis to address some of these needs — initially, by establishing a co -op student
position in economics and a budget item for the purchase of economic data.
RATIONALE / ANALYSIS:
Council and senior staff continually develop and adjust policies and plans based on a presumed
economic future and assumptions which do not necessarily account for trends or patterns
specific to Kitchener's economy. There is a growing need to boost our capacity for more fine -
grained economic analysis, specific to Kitchener, to ensure that senior staff and Council are
making appropriate, informed decisions, based on current, local data and trends.
The hiring of 3 co -op students per year from a masters level economics program, either at WLU
or UW, would provide us with a solid starting point. While not credited economists, the co -op
students would be able to provide us with a basic level of data interpretation and economic
forecasting, appropriate to the needs of the City's policy and decision makers. They would be
able to work on special projects and facilitate the purchase of more advanced econometric
analysis from established firms.
The advanced nature of the work would require that the positions be filled by masters level
students. The student would be expected to have advanced research and analytical skills and
an understanding of urban and regional economics, in order to work independently with limited
supervision, but strategic direction from staff.
In addition, the students would receive dedicated academic support from sponsoring faculty.
Potential deliverables and student work could include:
• Support to a systematic examination of the economic information needs of the City of
Kitchener
• Provision of timely updates on economic and labour market performance of the CMA &
City from sources such as Statistics Canada
• Development of economic performance indicators for the City of Kitchener
• Development of urban competitive indicators for the City of Kitchener and CMA
• Conduct economic impact analysis of major projects, events & decisions
FINANCIAL IMPLICATIONS:
Salary: $26,040 (3 terms at $8680 per term)
Data Purchase: $10,000
Total Cost: $36,040
RECOMMENDATION:
The funding for the economics co -op student program be approved.
November 15, 2006
CITY OF KITCHENER
2007 BUDGET ISSUE PAPER
ISSUE: #10 - Breithaupt Centre Staffing Reorganization
FUND: Operating
DEPARTMENT: Community Services
DIVISION: Community Programs & Services
BACKGROUND:
As a result of the Community Services re- organization in 2000, the full time BRC Seniors
supervisor position was eliminated. Staff realigned some of the Supervisor's responsibilities
and created a part time Senior Program Liaison Position. An interim rating of grade 11 was
assigned due to supervision and budget restrictions. This rating was to be reviewed once the
reorganization was complete. Breithaupt centre has continued to re- organize it's staffing
complement and a final review of the needs for the Adult 50 plus component of Breithaupt
Center's services is now needed.
The Senior Program Liaison position was unique at the time and an interim measure as re-
structure continued in 2002 with the addition of a part time District Facilitator position to the
Breithaupt staffing team.
At Rockway Senior Centre and the Downtown Community Centre, there is a full time Adult 50
plus Coordinator who supports senior programs and services at that facility. At Rockway and
the Downtown Community Centre there is also a full time District Facilitator (Grade 19) who
supports the Adult 50 plus volunteers in the community and that facility.
Community Programs and Services staff proposes to eliminate the part time (grade 11) position
and replace it with a full time Adult 50 plus Coordinator position at Breithaupt. (grade 14). This
re- organization of positions will ensure that Breithaupt Centre has the same staffing supports as
the other two Adult 50 plus facilities. This new full time position will also ensure that the Adult
50 team is better resourced as the division continues to implement the Leisure Facilities Master
Plan recommendations concerning Adults 50 plus. Similar roles at each of the facilities will
ensure equity in staffing and services.
RATIONALE / ANALYSIS:
The Adult 50 plus needs in the community are increasing each year. The LFMP identifies the
need to continue to serve the needs of a growing, diverse senior's population.
The staff team at the three Adult 50 plus centres will have similar roles and responsibilities.
Currently the inconsistency between staffing at the three centres has caused continuous turn
over in the Seniors Program Liaison Position. It has become a stepping position for other
positions and has caused a lack of consistent support to the adult 50 plus services at Breithaupt
Center. Seniors just build relationships with the Senior Program Liaison only to lose that staff
to another higher paying position within the division. Since 2000, when the position was created,
there have been 5 different people doing the job.
FINANCIAL IMPLICATIONS:
Proposed staffing re- organization is $25,697 annually for service growth in the Adult 50 Plus
division.
November 15, 2006
RECOMMENDATION:
Remove the Part time (24 hour) Senior Program Liaison Position at Breithaupt Centre and
replace it with a full time Grade 14 Adult 50 plus Program Coordinator Position.
November 15, 2006
CITY OF KITCHENER
2007 BUDGET ISSUE PAPER
ISSUE: #11 -Bridgeport Community Centre Operational Increase
FUND: Operating
DEPARTMENT: Community Services Department
DIVISION: Community Program and Services
BACKGROUND:
• The Bridgeport Community Association oversees the operations of the Bridgeport
Community Centre including all building maintenance, programming and rentals. It is
important to note that the grant provided to the Association does not only cover program
costs but also facility maintenance and energy costs.
• City of Kitchener staff from Community Services and Facilities Management provides
support to the Neighbourhood Association as required.
ANALYSIS:
• The Bridgeport Community Centre is a facility of approximately 5,500 square feet that
operates on a budget of $41,600 (2006) which is significantly less than our other
community centres.
• As a point of reference the next smallest facility, Mill Courtland at 7,700 square feet has
an operating budget of approximately $153,000 (2006).
• Facility use has continued to increase since 2000 due to increased Neighborhood
Association programming, special events and community events. Increased use can
also be attributed to a positive response to the renovations completed in 1999/2000.
• The Bridgeport Community Association are recognized as fiscally responsible and frugal,
however facility costs, due to energy as well as additional programming, have increased
significantly over the last number of years. The grant to operate the facility has not kept
pace with these costs and the Bridgeport Community Association is finding it
increasingly difficult to operate the facility within the current resources.
• The $20,000 increase estimate was established by reviewing and comparing costs at
other community centre facilities. It is expected that a more detailed analysis will be
provided in the business case being completed in 2007.
FINANCIAL IMPLICATIONS:
Increase 621225 by $20,000.
RECOMMENDATION:
To increase the Bridgeport Community Centre 2007 operational index 621225 by $20,000.
November 15, 2006
CITY OF KITCHENER
2007 BUDGET ISSUE PAPER
ISSUE: #12 - Chandler Mowat Community Centre Program Expansion and
Service Growth
FUND: Operating
DEPARTMENT: Community Services
DIVISION: Community Programs & Services
BACKGROUND:
Chandler Mowat Community Centre has traditionally operated out of 6 portables. The
Community Centre was not staffed by the City of Kitchener but rather by employees of the
House of Friendship, present Monday to Friday, from 9am to 5pm. In the evenings, there were
a variety of volunteers and instructors that would lock up the facility after programming. House
of Friendship also provided cleaning staff for the facility.
A new permanent facility, approximately 9,300 square feet, was completed in October 2006.
Council endorsed a 2007 budget of $100,000 for operating this New Community Centre.
Unfortunately pre- dating the business case process, a thorough analysis of the staffing model of
the time, and the relevance to running a permanent facility, was not completed.
RATIONALE / ANALYSIS:
During the Chandler Mowat facility construction process, there was significant dialogue between
the community, House of Friendship and City staff about the staffing model most appropriate for
the new facility.
Pending approval, the suggested plan is to move from a staffing model where the facility is
operated by House of Friendship staff to one where City of Kitchener staff oversee the
operations of the facility and provide support to the Neighbourhood Association. This shift is
being proposed for 2 reasons. First, given the move from portables to a permanent facility, both
City of Kitchener staff and House of Friendship staff feel it more appropriate that the City
oversee the maintenance and administration of the facility.
Second, the Chandler Mowat Neighbourhood Association has developed considerably as a
group and is planning and implementing their own recreation programs, similar to our other
Neighbourhood Associations, and require the appropriate support. As partners in the facility,
the House of Friendship is planning to continue to supervise and maintain existing social
programming to those in need in the community.
FINANCIAL IMPLICATIONS:
Cost to Service Growth (endorsed 2005 Budget Year) $96,958
Program Expansion 84,813
Total $181,771
RECOMMENDATION:
To increase the Chandler Mowat Community Centre Operational Budget 621200 by $181,771 to
accommodate for Cost to Service Growth and Program Expansion.
November 15, 2006
CITY OF KITCHENER
2007 BUDGET ISSUE PAPER
ISSUE: #13 - Victoria Hills Community Centre Growth Adjustment
FUND: Operating
DEPARTMENT: Community Services
DIVISION: Community Programs & Services
BACKGROUND:
In April 2005, the Victoria Hills Community Centre business case was brought forward, report
CSD -05 -001, recommending the construction of expanded space at the community centre. The
business case was subsequently approved by Council and a new addition was added including
a double gym, mid -sized multipurpose room, commercial kitchen, servery, additional
washrooms and storage, and an expanded lobby.
RATIONALE / ANALYSIS:
During the 2006 budget deliberations, a full -time Admin Coordinator and Recreation Clerk were
approved from August until December to provide the additional support necessary for operating
this expanded facility. For 2007 it is necessary to increase the budget to reflect the same
required Administration and Clerk support for the entire year. The additional cost of $79,353
reflects the amount needed to increase this support from 5 months to a complete year.
FINANCIAL IMPLICATIONS:
$79,353 to be added to the Victoria Hills Community Centre operating budget 621205.
RECOMMENDATION:
To increase the Victoria Hills Community Centre Operational Budget 621205 by $79,353 to
accommodate for Cost to Service Growth.
II
CITY OF KITCHENER
2007 BUDGET ISSUE PAPER
ISSUE: #14 - Community Centre Operating Increases
FUND: Operating
DEPARTMENT: Corporate Services
DIVISION: Facilities Management
BACKGROUND:
Operating cost increases associated with the development of 1 new Community Centre
permanent structure and the expansion of 2 Community Centres.
RATIONALE / ANALYSIS:
During 2006 the City of Kitchener expanded the Community Programs and Services portfolio,
Community Centres, providing expansions at Victoria Hills Community Centre, and Kingsdale
Community Centre and providing a new permanent facility in the Chandler Mowat Community.
The following outlines the additional building maintenance costs (e.g. utilities, staff, custodial
supplies) associated with each Community Centre.
• Victoria Hills Community Centre - $14,810
• Kingsdale Community Centre - $43,199
• Chandler Mowat Community Centre - $54,941
In addition, adjustments were made to cover the costs of custodial staffing and materials to
support programming at Mill- Courtland Community Centre and Rockway Senior Centre. Total
amount $3,700.
FINANCIAL IMPLICATIONS:
Cost to Service Growth $112,950
Program Expansion 3,700
Total $116,650
RECOMMENDATION:
To increase the appropriate budgets by $116,650 to accommodate for Cost to Service Growth
and Program Expansion.
R=961591 1•
CITY OF KITCHENER
2007 BUDGET ISSUE PAPER
ISSUE: #15 - New FTE Administration Analyst
FUND: Operating
DEPARTMENT: Community Services
DIVISION: Administration
BACKGROUND:
The Leisure Facilities Master Plan, completed in February 2005, identified the following
Community Services needs:
A comprehensive review and further development of the Community Services Department's
data collection, analytical and evaluation activities to ensure increasingly relevant, accurate
and timely data to support decision - making.
➢ Create the capacity to apply the Leisure Services Delivery Policy as the primary basis for
any current or future leisure service evaluations related to philosophical fit, criteria, goals,
etc.
RATIONALE / ANALYSIS:
The LFMP report indicated that the current the statistical gathering formats of the Department
are not comprehensive nor offer the needed depth of analysis necessary to formulate and
support investment or policy -based decisions. A more attuned data collection and analysis
system needs to be in place, as well as an ongoing monitoring process to ensure that the
benefits cited are realized.
This proposed position would begin in June 2007 to: implement and monitor data collection
processes (internal and external), analyze issues and identify trends in community services
administration, community development, athletics, aquatics, arts and culture, events, community
programs and services, enterprise and operation; develop, implement, maintain and analyze
information systems and relevant databases; collect relevant statistics and other information for
divisional purposes; partner on data & research collection for departmental in house studies and
strategies.
Prior to this position coming on line, CSD has assigned existing capital resources to fund a 6
months contract employee (Feb — July 2007) to review and lay the foundations of the
development of a comprehensive CSD system for structured data collection related to its
programs, services and facility usage statistics for measurements and /or performance
benchmarks. Working with IT, Corporate Records Management and bridging all CSD Divisions,
the individual will align and integrate CSD with the City's systems of GIS, Corporate processes
(e.g. Internal Auditor, business development, Environics), monitor and support administrative
system development including data research and analysis for CSD lead research projects (e.g.
Community Investment Strategy, LFMP, CPII) and link the Department to relevant external
research partners in all disciplines related to CSD.
FINANCIAL IMPLICATIONS:
"IMPTUA9,1591 1•
FTE for 2007 - $34,122
(7 months estimated at Grade 18, Step 1, including fringe benefits)
RECOMMENDATION:
That the request for a full time staff position to carry out the "data collection, analysis, evaluation
and mapping resources" duties, as identified in the Leisure Facilities Master Plan, be approved.
CITY OF KITCHENER
2007 BUDGET ISSUE PAPER
ISSUE: #16 - Additional Planning Division Staff (Heritage Planner)
FUND: Operating
DEPARTMENT: Development & Technical Services
DIVISION: Planning
BACKGROUND:
The City has had a Heritage Planner since 1992. Since that time the Heritage Planning
program has grown significantly, as has the community interest in heritage conservation and its
contribution to our quality of life.
RATIONALE / ANALYSIS:
Kitchener's heritage planning program has been very successful, and is regarded as a model for
mid -sized cities in Ontario. The designation of 3 conservation districts (Upper Doon, Victoria
Park, St. Mary's Hospital) has successfully enabled the conservation, appreciation and
improvement of heritage neighbourhoods. Alteration, new construction and demolition of
designated property is governed by the heritage permit process as administered by staff. The
Designated Heritage Property Grant Program and the Heritage Tax Refund Program are also
administered by staff and provide incentives and financial assistance for the improvement of
designated property, and the maintenance of highly significant property protected by
conservation easement.
Despite the growth of the heritage planning function including increasing the total number of
designated properties (individual and as part of a heritage conservation district) from
approximately 135 in the year 1992 to over 825 today, and the associated increased staff time
needed for administration of the heritage permit and incentive programs, we have not expanded
the staff resource devoted to heritage planning since the inception of the function in 1992, but
have continued to rely on one heritage planner.
The City's Heritage Planner is relied upon as the primary technical support for the Heritage
Kitchener Committee. The range of issues the Committee is reviewing and commenting on has
continued to expand, and the demand on staff time has grown accordingly.
Respect for cultural heritage ranked very highly on both the Environics and Downtown surveys
and has evolved to become an issue of significant public interest. The integration of heritage
conservation interests in major development projects, including the review and approval of
Heritage Impact Assessments, has proven to be of great benefit in achieving a high standard of
design on several high profile projects (ex. Arrow Lofts, Kaufman Lofts, St. Jerome's). Further,
the demands for the consideration of cultural heritage planning in the development review
process will increase given legislative changes made to the Provincial Policy Statement and the
Ontario Heritage Act, which now place higher emphasis on heritage conservation planning.
In order to respond to Council's direction to inventory the heritage resources in the rural area,
over the past two years we have used capital funds to retain a part -time assistant heritage
planner on a contract basis (3 days a week). This contract funding will run out in the Spring of
2007. There is a definite need to retain this resource in order to complete the rural inventory, to
help administer the heritage permit and incentive programs, and to assist with the review of
approximately 800 properties currently on Heritage Kitchener's Inventory to determine their
significance for inclusion on the Municipal Heritage Register. Approval of the proposed Civic
Centre Heritage Conservation District by Council in the spring of 2007 will add as many as 350
additional designated properties participating in the heritage permit and incentive programs, and
add to the need for this heritage planning resource.
FINANCIAL IMPLICATIONS:
$63,405.52 annually in Operating Budget.
RECOMMENDATION:
That the amount of $63,405.52 annually be allocated in the Operating Budget to enable the
Planning Division to add a second Heritage Planner or Technician.
01I
CITY OF KITCHENER
2007 BUDGET ISSUE PAPER
ISSUE: #17 — Operations to Service Growth
FUND: Operating
DEPARTMENT: Community Services
DIVISION: Operations
BACKGROUND:
As a result of the growth of the City of Kitchener, Operations has had to utilize its staff and
equipment that were historically assigned to work for others to maintain the current service
levels. The functions that we have identified that require additional resources are in the winter,
concrete /sidewalks, downtown, and sanitation maintenance areas.
Since 2004, Operations has attempted to minimize the reliance on work for others by requesting
additional funding. Without this additional funding, Operations would rely on revenues from
work for others to offset this funding shortfall or would simply have an over expenditure.
RATIONALE / ANALYSIS:
While the staff complement has remained the same, the City has grown. In order to bring our
funded staff to the appropriate complement to perform duties within the winter,
concrete /sidewalks, downtown, and sanitation maintenance areas, additional funding will be
required to reduce the shortfall.
The addition of a fourth sweeper has also been added to our operation. This is to enable
Operations to maintain the current service level with respect to street sweeping due to growth.
FINANCIAL IMPLICATIONS:
• Increase in FT staffing for Winter, Concrete, Downtown and Sanitation - $251,973
• Additional Road Materials - $34,063
• Increase in FT staffing Sweeping/ Hauling - $29,459
• Increase Equipment Reserve Charges - $11,947
Total increase to the Operations (CSD) operating budget of - $327,442.
RECOMMENDATION:
That Council approves funding to service growth of $327,442 for the Operations operating
budget in order for Operations (CSD) to be able to maintain the current level of service across
the City of Kitchener while reducing the number of unfunded staff.
CITY OF KITCHENER
2007 BUDGET ISSUE PAPER
ISSUE: #18 - Contract with the Humane Society
FUND: OPERATING
DEPARTMENT: General Expenses
DIVISION: General Expenses
BACKGROUND:
The City has two agreements with the Humane Society. The first agreement is for Animal
Services and Dog Licensing Services. The second agreement is for the Spay Neuter Program.
Both agreements were for three year terms expiring December 31, 2006.
Both agreements are currently being re- negotiated by a joint Committee comprised of staff from
Finance and Legal as well as staff from the City of Waterloo. It is anticipated a report will come
forward to Council in late March for approval of both agreements for a 4 year period January
1/07 to December 31/10.
RATIONALE / ANALYSIS:
The Humane Society has identified several areas where increases greater than inflation are
required:
-For the Spay Neuter Program, the maximum fees charged by Participating Vets have not
increased since the inception of the program in 2003.
-The introduction of the pit bull /dangerous dog by -law has resulted in increased costs for the
Humane Society for investigations and designations
-The Animal Services contract has allowed for inflationary increases but does not allow for
increased services due to growth of the community.
FINANCIAL IMPLICATIONS:
The 2006 net Budget for the Humane Society contractual services was $391,234. An
inflationary increase of 2% would increase this budget by $7,800 to $399,058. In order to
address some of the financial concerns expressed by the Humane Society, staff requested a
2007 Budget of $414,708, which is a 5% increase over the 2006 Budget. The final negotiated
amount may result in higher or lower costs than in proposed 2007 Budget.
RECOMMENDATION:
The 2007 contractual services net budget for the Humane Society for Animal Control and
Licensing Services and the Spay Neuter Program, of $414,708, be approved.
".71WROMW15910YA
CITY OF KITCHENER
2007 BUDGET ISSUE PAPER
ISSUE: #19 - PT Administrative Support (Arts and Culture)
FUND: Operating
DEPARTMENT: Community Services Department
DIVISION: Arts and Culture
BACKGROUND:
Since the approval of Culture Plan I in 1996, the Arts /Culture section's programs, services and
community interaction has grown at a steady rate. Casual employees were used during the
period 2003 — 2005 for the implementation of specific programs. Culture Plan 11, approved in
2006, recommended the hiring of a second FTE (hire effective: October 2005).
An analysis of the Arts /Culture section's workload was completed in January 2006 showing that
accumulated overtime documented by the two FTE's was equal to an additional, annual FTE
35 -hour work week. Since May 2006, clerical support has assisted the Arts /Culture section on a
temporary contract basis, to enable the provision of services during a period of incomplete staff
complement. This has been a much more effective use of staff resources and budget.
Culture Plan II and Healthy Community Plan recommendations, as well as policy- mandated
programs, have established expectations for the expansion of future service delivery in 2007
and beyond.
RATIONALE / ANALYSIS:
The clerical skills of an administrative staff person are required for the scheduling of meetings
and venues, recording and typing minutes for committees, sending agendas and minutes and
catering arrangements; for mass mailings (Rotunda Gallery, Artist -in- Residence Program,
Culture Plan II Implementation); for the creation and maintenance of databases; to support the
annual competitions and special events of the Rotunda Gallery, Artist -in- Residence, Industrial
Artifacts, Public Art and Culture Plan II Implementation programs.
The support position will assist the two FTE positions to operate more efficiently at their grade
levels and use their time to maximum advantage.
Staff is requesting funding for a part time position and will be reviewed in the context of a larger
CSD `Administrative Follow up /Review" of the clerical support within the Department.
FINANCIAL IMPLICATIONS:
$27, 675 (includes fringe benefits)
RECOMMENDATION:
That the PT administrative support position be approved.
CITY OF KITCHENER
2007 BUDGET ISSUE PAPER
ISSUE: #20 - Diversity Programs
FUND: OPERATING
DEPARTMENT: CAO
DIVISION: Community and Corporate Planning
BACKGROUND:
In 2006, Council approved "A Plan for a Healthy Kitchener, 2007 - 2027" accepting, as a strategic
area of focus, the Community's "diversity" recommendations as a priority for action. Specifically,
that (1) the City of Kitchener create an organizational culture that is inclusive and representative
of the diversity of our community and, (2) the City develop policy and strategy that ensures
broad access, equity and inclusion of our diverse citizens in the life of our community.
Recognizing the need to improve the diversity of employees working at the City of Kitchener, a
committee of staff and community volunteers, known as the Diversity in the Workplace
Committee (DWC) was struck in the spring of 2005, well in advance of the HCP. The goal of
the committee is to create a corporate culture that is more inclusive and representative of the
diverse community we serve — in other words, enabling the Corporation to "look like Kitchener'
through stronger employee representation from visible minorities, persons with disabilities,
women, immigrants, gays, lesbians, transgendered persons, persons of different beliefs,
practices and observances, and aboriginals. To that end, the committee's focus is to improve
attraction, recruitment, hiring and retention practices for these groups. Work in this regard is well
advanced, although operating dollars to support further related initiatives in 2007 forms part of
this request.
DWC recognizes a changing internal corporate culture and thinking. However they do not
address issues related to service delivery in the public realm. This is a gap.
RATIONALE I ANALYSIS:
Organizational Initiatives: Over the last many months, the committee has had many successes
in bringing diversity initiatives to life within the Corporation. DWC continues to work toward
developing more new internal practices and policies, as well as future initiatives and
programming for City staff to participate in. It is these staff initiatives — as well as a staff
identification survey — that DWC will focus on in 2007.
DWC plans requiring funding for 2007 include a Diversity In The Workplace awareness program
which will be kicked off with a special staff roll -out (Diversity Day) that will introduce all staff to
the ongoing work of the committee. (Totalling $3,250.00) As well, plans for a self- identification
survey are being developed. This survey, which will be conducted bi- annually, will confirm how
visible minorities, persons with disabilities, women, aboriginals, gays, lesbians, bisexuals,
transgendered persons and people who require accommodation or time -off outside of the three
paid religious holidays (Christmas, Good Friday and Easter Monday) are represented within our
current staff complement. Results of the survey will enable us to track future progress as we
strive to become more diverse and better represent our community. ($6,000.00). DWC
continues to work toward developing more new internal practices and policies, as well as future
initiatives and programming for City staff to participate in. Our plans are not yet complete for
2007 though we continue to work toward the completion of comprehensive work plans for each
of the group's subcommittees.
Community Initiatives: Diversity — in its broadest sense — was a recurring priority theme arising
from numerous major community engagement and planning exercises, including the Plan for a
Healthy Kitchener 2007 -2027, CulturePlanll and Leisure Facilities Master Plan. Simply stated,
diversity matters at the community level manifest as issues of access, equity and inclusion. It is
these three "ends" that provide focus for this resource request. In addition, diversity is central to
the achievement of arts and culture and economic development objectives — to the health of the
City overall.
Staff resources (1 fte) are required to move forward on addressing issues of diversity. In
partnership with the community, a first step is to develop a corporate (City -wide) diversity
strategy, policies, and approaches to service provision that ensures all people in this community
have equitable opportunities for civic participation. As a subsequent step, the City must identify
and remove barriers to access, equity and inclusion in programs and services to the public,
barriers that may preclude participation in community centres, on soccer fields, on our advisory
committees, at the Clerks counter, on our websites and so on. In many instances, there is
opportunity to consider diversity in a multi - municipal context and as a partner in crime
prevention, regional growth management, and so on.
FINANCIAL IMPLICATIONS:
Corporate (DWC) Initiatives: $10,000.00
Community Diversity Strategy: $90,000
Staff Resources $80,500.00 (salary and benefits @ Grade 19 interim rating)
Program and Travel Costs $9,500.00
RECOMMENDATION:
That Council approve $100,000.00 for corporate and community- focused efforts to address
issues of access, equity and inclusion in the City of Kitchener as a community priority arising
from A Plan for a Healthy Kitchener, 2007 -2027.
CITY OF KITCHENER
2007 BUDGET ISSUE PAPER
ISSUE: #21- 2007 Grant Allocations
FUND: Operating and Capital
DEPARTMENT: Community Services /Economic Development
DIVISION: Administration
BACKGROUND:
At the February 5, 2007 Finance and Corporate Services Committee (FCSC) meeting, staff
presented recommendations for economic development, capital, annual operating and annual
minor sports grants for 2007.
Grant applicants were given an opportunity to make presentations at the February 5 meeting
and were advised that all decisions regarding grant amounts were deferred to the February 26,
2007 budget meeting. Applicants were also informed that no delegations are to be received at
the February 26 meeting unless "extraordinary" changes subsequent to the February 5 meeting
warrant a presentation to Committee members.
RATIONALE / ANALYSIS:
The following is a summary of the grant recommendations presented at the February 5 meeting:
($000's)
Economic
Annual
Annual Minor
Development
Capital
Operating
Sports
Total
2006 Approved
219
60
1,367
658
2,304
2007 Requested
283
130
1,729*
700
2,842
Grant Committee
Recommendation
n/a
n/a
1,327
n/a
n/a
Staff
Recommendation
238
-
1,327
671
2,236
Budget
238
35
1,367
671
2,311
Unallocated
-
35
40
-
75
Value Under
Appeal
45
130
282*
-
457
* Decrease of $40,096 as follows:
Latitudes Storytelling Festival — request amended to $5,000 from $42,000
K -W Art Gallery — request amended to $224,904 from $228,000
Appendix A - A summary of the economic development grants, capital grants and annual
operating grant appeals considered at the February 5, 2007 meeting is provided in Appendix A.
The additional information requested by the Committee is referenced in this table and attached
to this issue paper.
FINANCIAL IMPLICATIONS:
Staff is recommending economic development, annual operating and minor sports operating
grants be approved in the amount of $2,235,163 for 2007. Staff is also recommending that no
capital grant allocations be approved. The total budget allocation is currently $2,275,346, which
leaves $40,183 of budget reduction room (identified as a potential budget cut). In addition,
there is $35,000 available in existing unexpended capital grant dollars.
The total value of grant appeals being considered, including economic development and capital
grants as well as annual operating grant appeals, which is currently not included in the staff
recommendation is:
Economic Development - $ 45,000
Capital - $130,000
Annual Operating - $282,000
Total $457,000
This represents 0.57% of the tax levy.
RECOMMENDATION:
That the following economic development grants be approved for 2007:
• Canada's Technology Triangle - $140,000 (as outlined in report CAO -07 -004)
• Waterloo Region Small Business Centre - $62,500 (as outlined in report CAO -07 -005)
• Communitech Technology Association Inc. - $35,000 (as outlined in report CAO -07 -006)
That the following general provision grants not be approved for 2007:
• KidsAbility Foundation - $75,000 (as outlined in report CSD -07 -013)
• The Working Centre - $20,000 (as outlined in report CSD -07 -014)
• Kitchener Alliance Community Homes (4 Churches Project Coalition) - $35,000 (as
outlined in report CSD -07 -015)
That, subject to final 2007 budget approval, annual operating grants in the amount of
$1,326,516 be approved for 2007 (as outlined in report CSD -07 -011); and further,
That, subject to final 2007 budget approval, annual minor sport grants in the amount of
$671,147 be approved for 2007 (as outlined in report CSD -07 -012).
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Appendix A -1
Canada's Technology Triangle
2007 Grant Request
At the February 5, 2007 Finance and Corporate Services Committee meeting, Canada's
Technology Triangle was directed to submit a 2006 financial statement and a 3 year budget
projection.
The information was not provided as at February 14.
1
'x A -2
Klz crr NLR REPORT
Chief Adm inistro tor's
Office
Report To: Finance and Corporate Services
Date of Meeting: February 5, 2007
Submitted By: Rod Regier, Executive Director, Economic Development
Prepared By: Kathy Weiss, Director, Business Development
Ward(s) Involved: All Wards
Date of Report: January 22, 2007 - REVISED on February 7, 2007
Report No.: CAO -07 -005
Subject: REVISED Feb 7, 2007 - WATERLOO REGION SMALL
BUSINESS CENTER 2007 FUNDING REQUEST
RECOMMENDATION:
That the City of Kitchener support the increased funding request in the amount of $12,500 for
the 2007 fiscal year.
BACKGROUND:
The Waterloo Region Small Business Centre ( WRSBC) is part of the Province of Ontario's
Small Business Enterprise Centre Network and serves small business clients from pre -start up
through five years of business. The WRSBC provides information, advice and consultation on a
variety of issues to small business owners and individuals wishing to start a business. The
WRSBC core funding is provided by the Province of Ontario, the Region of Waterloo and the
cities of Kitchener, Cambridge and Waterloo.
In 2004, the WRSBC developed a three -year strategic plan that outlined six main objectives to
ensure the future success of the organization. They are as follows:
1. Stable baseline funding provided by the public sector partners
2. Increased Private Sector funding
3. Professional marketing plan to increase client visits
4. Enhance Client Services
5. Better tracking and measurement of services
6. Fiscal Accountability and eliminate deficit by 2006
A funding model was developed as part of this three -year strategic plan and was presented to the
public sector funding partners. The funding levels for the three municipalities are based on a 2
(Kitchener) to 1 (Cambridge, Waterloo) per capita funding ratio formula. In 2005, Kitchener council
approved an increase in cash contribution to $50,000 in accordance with the three year strategic plan
ending in 2007 at $75,000. Diligent fiscal and operations management reduced the deficit
substantially by that year end and as a result the request for funding in 2006 remained at 2005 levels
Appendix A -2
(see chart below). Using a reasonable approach in terms of the 2007 funding request, the Board of
Advisors are proposing the additional $25,000 be staged over 2 years at $12,500 each year.
Many of the objectives in the 2004 -2006 Strategic Plan have been met and /or are ready to be
implemented. These include:
1. Projection to eliminate the accumulated and annual operating deficits by year end 2006
2. Increased private sector in -kind and direct financial support.
3. Re- branded the Small Business Centre and aggressively implementing our new
marketing strategy to ensure we increase our client base and client visits.
4. Opening of new satellite office in Waterloo
5. Increased and extended outreach programs and partnerships to ensure that we are
providing our services throughout Waterloo Region.
REVISED February 7, 2007 - Core Funding
REPORT:
In order to continue on this journey and truly reach the objectives of increasing the client base,
services and programs we now require the final installation of the additional funding to get to the
funding ratio and levels originally outlined in our 2004 -2006 Strategic Plan.
The revenue used to pay down the deficit will now be absorbed into up to date marketing
materials and the implementation of an ongoing marketing strategy as well as the hiring of an
additional FTE whose role is to increase awareness, generate private sector sponsorship both
2004
2005
2006
2007
(proposed)
Kitchener
$112,800
$145,000
$145,000
$157,500
Cash
$25,000
$50,000
$50,000
$62,500
In -kind
$87,800
$95,000
$95,000
$95,000
Waterloo
$35,000
$60,000
$75,000
$85,000
Cash
$35,000
$60,000
$51,964
$14,130
In -kind
$23,036
$70,870
Cambridge
$64,000
$77,500
$77,500
$85,000
Cash
$11,750
$11,750
$17,900
In -kind
$64,000
$65,750
$65,750
$67,100
Region of
Waterloo
$50,000
$47,000
$45,000
$50,000
Province of
Ontario
$60,000
$65,000
$70,000
$75,000
Total Cash
$170,000
$233,750
$228,714
$219,530
Total in -kind
$151,800
$160,750
$183,786
$232,970
REPORT:
In order to continue on this journey and truly reach the objectives of increasing the client base,
services and programs we now require the final installation of the additional funding to get to the
funding ratio and levels originally outlined in our 2004 -2006 Strategic Plan.
The revenue used to pay down the deficit will now be absorbed into up to date marketing
materials and the implementation of an ongoing marketing strategy as well as the hiring of an
additional FTE whose role is to increase awareness, generate private sector sponsorship both
Appendix A -2
for events and general revenue as well as a back -up resource for the satellite offices so those
respective locations do not have to close in the absence of the Small Business Advisors.
We have sufficient flexibility within the budget, both on the revenue and expense side, to make
adjustments throughout the course of the year to ensure we do not go into a deficit position
again. However, it will be very difficult to provide the service levels that are required and
expected from all stakeholders without final increase. Securing this baseline funding from public
sector partners will continue to provide stability in the operations of the WRSBC and allow for
improved services offered to entrepreneurs and small business throughout the Waterloo
Region.
FINANCIAL IMPLICATIONS:
2007 $12,500 expense
2008 $12,500 expense
COMMUNICATIONS:
N/A
Rod Regier, Executive Director Kathy Weiss, Director
Economic Development Business Development
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Appendix A -3
Financial Statements of
COMMUNITECH TECHNOLOGY
ASSOCIATION INC.
June 30, 2006
Appendix A -3
Dwdowltte- Deloitte & Touche LLP
4210 King Street East
Kitchener ON N2P 2G5
Canada
Tel: 519- 650 -7600
Fax: 519- 650 -7601
www.deloitte.ca
Auditors' Report
To the Members of Communitech Technology Association Inc.
We have audited the statement of financial position of Communitech Technology Association Inc. as at
June 30, 2006, and the statements of operations, cash flows and changes in net assets for the year then
ended. These financial statements are the responsibility of the Association's management. Our
responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with Canadian generally accepted auditing standards. Those
standards require that we plan and perform an audit to obtain reasonable assurance whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the
overall financial statement presentation.
In our opinion, these financial statements present fairly, in all material respects, the financial position of
the Association as at June 30, 2006 and the result of its operations and its cash flows for the year then
ended in accordance with Canadian generally accepted accounting principles.
b4&0-
Chartered Accountants
September 11, 2006
Member of
Deloitte Touche Tohmatsu
Appendix A -3
TABLE OF CONTENTS
PAGE
Statement of Financial Position
Statement of Operations
Statement of Cash Flows
Statement of Changes in Net Assets
Notes to the Financial Statements
Appendix A -3
COMMUNITECH TECHNOLOGY ASSOCIATION INC.
Statement of Financial Position
June 30, 2006
2006 2005
ASSETS
CURRENT
Cash (Note 3) $
154,608
$ 150,230
Accounts receivable
254,542
196,878
Prepaid expenses
4,449
6,133
413,599
353,241
Capital assets (Note 4) 81,413 71,791
$ 495,012 $ 425,032
LIABILITIES AND NET ASSETS
CURRENT
Accounts payable and accrued liabilities $ 108,323 $ 106,839
Deferred revenue - memberships 198,229 158,470
Deferred revenue - programs and events 48,750 50,480
Deferred revenue - grants 89,650 30,000
444,952 345,789
NET ASSETS
Invested in capital assets 81,413 71,791
Unrestricted (31,353) 7,452
50,060 79,243
Commitments (Note 6)
$ 495,012 $ 425,032
APPROVED BY THE BOARD
......... ............................... Director
......... ............................... Director
Page 1 of 7
Appendix A -3
COMMUNITECH TECHNOLOGY ASSOCIATION INC.
Statement of Operations
Year ended June 30, 2006
EXPENSES
2006
2005
REVENUE
490,310
475,282
Membership fees
$ 453,796
$ 343,278
Seminars, conferences and special events
477,850
326,308
Business and Education partnership funding
120,000
-
Municipal support
84,300
83,950
Business Accelerator grant
66,034
69,376
Recruitment strategy
90,158
48,930
Research funding
28,160
57,908
Interest income
2,046
2,511
Research
1,322,344
932,261
EXPENSES
Salaries, wages and benefits
490,310
475,282
Seminars, conferences and special events
267,493
161,754
Business and Education partnership
133,079
-
Advertising and promotion
53,870
52,010
Rent
24,933
10,962
Travel
17,486
21,252
Telecommunications
17,530
22,783
Office supplies and support
95,085
46,349
Recruitment strategy
89,904
48,930
Research
86,075
57,908
Professional fees
24,323
28,393
Government relations
14,610
-
Strategic planning
-
1,496
Amortization
36,829
19,788
1,351,527
946,907
EXCESS OF EXPENSES OVER REVENUE
$ (29,183)
$ (14,646)
Page 2 of 7
Appendix A -3
COMMUNITECH TECHNOLOGY ASSOCIATION INC.
Statement of Cash Flows
Year ended June 30, 2006
Page 3 of 7
2006
2005
OPERATING ACTIVITIES
Excess of expenses over revenue
$ (29,183)
$ (14,646)
Items not involving cash:
Amortization of capital assets
36,829
19,788
In -kind contributions
(16,000)
-
Changes in non -cash operating working capital:
Accounts receivable
(57,664)
(145,388)
Prepaid expenses
1,684
378
Accounts payable and accrued liabilities
1,484
19,114
Deferred revenue
97,679
17,993
34,829
(102,761)
INVESTING ACTIVITY
Purchase of capital assets
(30,451)
(28,159)
NET CHANGE IN CASH
4,378
(130,920)
CASH, BEGINNING OF YEAR
150,230
281,150
CASH, END OF YEAR
$ 154,608
$ 150,230
Page 3 of 7
COMMUNITECH TECHNOLOGY ASSOCIATION INC.
Statement of Changes in Net Assets
Year ended June 30, 2006
Invested in
Capital assets Unrestricted
Appendix A -3
2006 2005
Balance, beginning of year $ 71,791 $ 7,452 $ 79,243 $ 93,889
Excess of revenue over expenses
(expenses over revenue) (36,829) 7,646 (29,183) (14,646)
Investment in capital assets 46,451 (46,451) - -
Balance, end of year $ 81,413 $ (31,353) $ 50,060 $ 79,243
Page 4 of 7
COMMUNITECH TECHNOLOGY ASSOCIATION INC. Appendix A -3
Notes to the Financial Statements
June 30, 2006
1. ASSOCIATION'S BUSINESS
Communitech Technology Association Inc. ( "Communitech" or the "Association ") is a non -profit
organization that was incorporated without share capital on September 18, 1997. Communitech is
an association representing technology companies, technology service companies, educational
institutions and all levels of government co- operating together to create a world class technology
business center in the geographical area of Cambridge, Guelph, Kitchener, Waterloo and
surrounding areas.
2. SIGNIFICANT ACCOUNTING POLICIES
These financial statements have been prepared in accordance with Canadian generally accepted
accounting principles, and reflect the following significant accounting policies:
Revenue recognition
(i) Membership fees
Membership fee revenue is recognized over the term of the membership.
(ii) Seminars, conferences and special events
Revenue is recognized when the related sei vices are performed or events are held.
(iii) Government grants
Communitech follows the deferral method of accounting for grants. Grants are
recognized as revenue in the year in which the related expenses are incurred.
(iv) Research funding
Communitech follows the deferral method of accounting for research funding. Research
funding is recognized as revenue in the year in which the related expenses are incurred.
Capital assets
Purchased capital assets are recorded at cost, net of related government assistance. Contributed
capital assets are recorded at estimated fair value. Amortization is provided on the following
basis:
Assets Basis Rate
Computer hardware and software Declining Balance 30%
Furniture and fixtures Declining Balance 20%
Leasehold improvements Tenn of Lease
Amortization is recorded at one -half the annual rate in the year of acquisition.
Page 5 of 7
COMMUNITECH TECHNOLOGY ASSOCIATION INC. Appendix A -3
Notes to the Financial Statements
June 30, 2006
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
In -kind contributions
Communitech accepted in -kind contributions for professional fees, directors' services, and certain
goods and administration services. The value of the directors' services has not been reflected in
the financial statements as it is not determinable. The value of all other in -land transactions
received is recognized in the statement of operations at the estimated fair value of such goods and
services.
Use of estimates
The preparation of the financial statements, in accordance with Canadian generally accepted
accounting principles, requires management to make estimates and assumptions that reflect the
amounts reported in the financial statements and accompanying notes. Actual results could differ
from those estimates.
3. CREDIT FACILITY
As part of its financial arrangements, Communitech has negotiated a line of credit in the amount of
$30,000 with its banker, which is secured by a general security agreement covering all assets of
the association and an assignment of fire insurance in the amount of $100,000. None of the credit
facility was drawn upon at June 30, 2006.
4. CAPITAL ASSETS
Page 6 of 7
2006
2005
Accumulated
Net Book
Net Book
Cost
Amortization
Value
Value
Computer hardware and software $ 127,295
$ 64,681
$ 62,614
$ 38,287
Furniture and fixtures 33,940
20,545
13,395
11,887
Leasehold improvements 22,755
17,351
5,404
21,617
$ 183,990
$ 102,577
$ 81,413
$ 71,791
Page 6 of 7
COMMUNITECH TECHNOLOGY ASSOCIATION INC. Appendix A -3
Notes to the Financial Statements
June 30, 2006
5. FINANCIAL INSTRUMENTS
Fair value
The fair values of the Association's current assets and liabilities are considered to be equivalent to
their carrying values because of the short-term nature of these items.
Credit risk
The Association is subject to credit risk through its accounts receivable from members. The
Company is not exposed to significant credit risk relating to the accounts receivable balance given
the relative size of the individual member amounts.
6. COMMITMENTS
Communitech has entered into various agreements for the rental of facilities and equipment and
the provision of services. The aggregate minimum payments under these agreements in each of the
next two years are as follows:
2007 16,582
2008 1,104
7. SUBSEQUENT EVENT
On August 29, 2006, the Association entered into a two year lease for new office premises with the
Waterloo Research & Technology Park Accelerator. At June 30, 2006, the remaining lease obligation
with the former premises, which expires in October 2006, was $10,110.
Page 7 of 7
Appendix A -3
Communitech Budget 2006 -2007
Budget
Ordinary Income /Expense
Income
4 -100 • Membership fees
450,000.00
4 -1000 • Federal IRAP Funding
177,499.96
4 -105 • Municipal Support
105,000.00
4 -110 • ORCP Funding
330,000.00
4 -1100 Bus. & Ed. Partnership Funding
189,000.00
4 -1200 Recruitment Strategy Funding
130,000.00
4 -125 • Interest income
2,000.00
4 -200 - Event Revenues
125,000.00
4 -300 • Special Events Revenues
379,500.00
4 -400 • Other Revenue
4,000.00
Total Income
1,891,999.96
Expense
20 -100 Bus. & Ed. Partnership Expenses
195,778.00
25 -100 Recruitment Strategy Expenses
109,100.00
5 -0100 General and Administration
1,083,316.92
5 -1600 Research & Commercialization
117,000.00
5 -1700 Government Relations
15,000.00
6 -100 • Event expenses
34,000.00
7 -100 • Special Events Expenses
297,800.00
99 -000 • Depreciation
29,400.00
Total Expense
1,881,394.92
Net Ordinary Income
10,605.04
Net Income
10,605.04
Appendix A -4
Kitchener Alliance Community Homes Inc. Four Churches Project Coalition)
2007 Grant Request
At the February 5, 2007 Finance and Corporate Services Committee meeting, staff were
directed to provide information on the following:
1. Potential funding through the Economic Development Investment Fund (EDIF).
2. Other City funding sources available for feasibility studies, i.e. Community Development
Infrastructure Program.
3. Staff involvement in the Four Churches Project.
EDIF is a municipal investment tool which is intended to:
• Stimulate assessment growth
• Stimulate employment
• Stimulate the development of residential units in the downtown
• Strive to achieve a return on investment, both direct and indirect
To date, EDIF has been used to undertake studies that support City -owned and managed
projects. Where EDIF has been used in partnership with private sector development, the City's
investment has been repaid through a structured agreement.
The exception to the above is the Feasibility Study Grant Program which is part of the
Downtown Financial Incentives. Under this program, an approved applicant would receive a
grant to complete a structural assessment of a building to determine the feasibility for its
renovation. The grant is limited to a maximum of $5,000 or one -half of the study cost.
Provision of a grant to private sector land owners /developers to determine the feasibility of
redeveloping private property does not fall within the criteria established for EDIF and may, in
fact, be considered to be " bonusing " for the private sector.
The Community Development Infrastructure Program grant provides allocations of up to
$15,000 on a one time basis to serve as seed money for community development projects that
are self sustaining or completed at the exhaustion of the grant. Projects considered include
those that:
➢ strengthen networks in neighbourhoods and thereby develop neighbourhood cohesion
and stability;
➢ promote strong local leadership, volunteerism and partnerships in the community; and
➢ build upon existing resources.
As at February 14, no further information was available regarding staff involvement in the
project.
Appendix A -5
SKI L L
C0M PETENCES
`.^ .. CANADA
ON TA R 10
,.
City of Kitchener 2007 Grant Application Rationale
Presenters:
Vic Degutis, Chair, Board of Directors
Gail Smyth, Executive Director
Thank you for taking the time to reconsider our grant request and for the opportunity to
speak on the beginning of your busy agenda this afternoon. Since our grant application
is already in front of you, I will focus my comments on additional information for your
consideration.
Skills Canada - Ontario is a provincially registered not - for - profit organization, with the
mandate to promote careers in skilled trades and technologies. This organization's head
office has been located in Kitchener since 1997, and Skill Canada - Ontario now has 5
satellite office across Ontario.
Skills Canada offers numerous programs to promote trades and technology as a first
choice career, including our flag ship event, the annual provincial technological
competitions... to give you some idea of scale, this Ontario event is 3 times the size of
the National competition.
When we originally moved to Kitchener in 1997, the base of the competitions was The
Auditorium, but eventually because of the increasing scale of the event, we had to
relocate to RIM Park, Waterloo. In response to continuing growth, our expectation is
that we will be expanding the competition again to large venues in both Kitchener and
Waterloo in 2008. As Mayor Zehr is aware, we currently have the need for this
additional space but not the funding.
Even with external pressures from a Toronto - centric Ontario, the Skill board of directors
is committed to continuing to locate both our head office and the provincial competition
in Kitchener and Waterloo. Our board of directors, although provincial in representation,
has a strong Waterloo Region participation, including a Vice - president of ATS, a Vice -
president of CTV, a Director of Union Gas, a Senior Manager with Deloitte, and myself.
As you are probably aware, the two local school boards and Conestoga College are
actively involved in supporting Skills, and annually organize one of the largest Regional
Skills competitions in the country.
Our activity in Kitchener is diverse:
- our head office, with 16 full time staff, is located on Grandbend Drive
- The annual provincial Skills competitions are held over 3 days and we host over
15,000 visitors to the Region. Key aspects are held in Kitchener, including
specific competitions at Conestoga College, closing ceremonies with 1500
participates at Bingemans, and the two young women's conferences which we
are asking the City of Kitchener to sponsor.
- 4 summer technology camps are held at Conestoga College for local students
annually.
- An annual fundraising dinner including business and industry leaders from across
the province is held at the Delta Hotel.
- Many aspects of Skills activities bring national and provincial media attention to
Kitchener.
We are proud to share with you that a local St Mary's High School student, Jason
Wagg, will be representing Canada and the city in the international Skills
competition in Japan later this year.
Three last points for your consideration-
- Skills Canada - Ontario is committed to the Kitchener and Waterloo communities
for the long term and is intending on engaging both communities fully.
- All partners that support an organization of this scope expect to see support from
all the other partners, both private sector, and all levels of the public sector.
- The young women's conferences that we ask the City of Kitchener to support is
an important and effective strategy to develop a skilled work force in our
community, and one that engages our female population that, unfortunately, is
currently on the fringes of technological trade careers.
I suggest that all this demonstrates that Skills Canada - Ontario is a good investment for
all our partners, including the City of Kitchener.
W C`t116ipt rEN'CES'
cAiVADA- ,
DRAFT
2008 and 2009 Budget for OTSC in
Kitchener and Waterloo
08 Budget
09 Budget
Revenue
City of Waterloo
$ 50,000.00
$ 50,000.00
City of Kitchener
$ 50,000.00
$ 50,000.00
MTCU
$ 100,000.00
$ 100,000.00
Service Canada
$ 350,000.00
$ 350,000.00
Corporate Donors
$ 450,000.00
$ 450,000.00
OTSC Registration
$ 87,832.50
$ 96,615.75
7 Qualifying Competition Registration
$ 10,000.00
$ 11,000.00
Elementary Day Registrations
$ 9,000.00
$ 9,900.00
Cancellation Fees (Registration)
$ 3,300.00
$ 3,630.00
Registration for Exhibitors
$ 9,680.00
$ 10,648.00
Closing Ceremony Tickets
$ 7,700.00
$ 8,470.00
Cardboard Boat Races & Video Challenge
$ 30,800.00
$ 33,880.00
Total Revenue
$ 1,158,312.50
$ 1,174,143.75
Expenses
Salaries (Competition Staff)
$ 441,743.06
$ 463,830.21
Venue (s)
$ 159,120.00
$ 167,076.00
Tents
$ 1,045.00
$ 1,097.25
Security
$ 16,200.00
$ 17,010.00
Drapery/Chairs /Tables /Carpet (Rental)
$ 35,360.00
$ 37,128.00
Purchase of Materials
$ 35,750.00
$ 37,537.50
Transportation of Equipment
$ 24,200.00
$ 25,410.00
Electrical Water and Gas
$ 48,000.00
$ 50,400.00
Accommodation for Key Volunteers
$ 8,580.00
$ 9,009.00
Rental of Talkie Talkies & Audio Rental
$ 8,910.00
$ 9,355.50
Ambulance
$ 5,000.00
$ 5,250.00
KW Touch Poll
$ 6,933.00
$ 7,279.65
Reception Costs
$ 42,900.00
$ 45,045.00
Computer Support
$ 9,900.00
$ 10,395.00
Competition Staff Planning
$ 2,750.00
$ 2,887.50
Closing Ceremonies
$ 35,200.00
$ 36,960.00
SKILLS
C'+dmPI T"EmcES
CANADA
01MARI
Signs
$ 18,000.00
$ 18,900.00
Medals Awards Plaques/Pins
$ 15,180.00
$ 15,939.00
Program Guide
$ 23,100.00
$ 24,255.00
Competition and Program T -Shirts
$ 50,000.00
$ 52,500.00
Souvenir Guide
$ 15,000.00
$ 15,750.00
Competition Poster
$ 5,060.00
$ 5,313.00
Admin. Costs
$ 60,000.00
$ 60,000.00
Contingency
$ 100,000.00
$ 105,000.00
$ 1,167,931.06
$ 1,223,327.61
Surplus / Deficit
$ 9,618.56
$ 49,183.86
Skills Canada - Ontario
Competence Canada - Ontario
Financial Statements
July 31, 2006
PRUWATERHOUSECCOPER5 I
October 25, 2006
Auditors' Report
To the Board of Directors and Members of
Skills Canada - Ontario
We have audited the statement of financial position of Skills Canada - Ontario as at July 31, 2006 and
the statements of operations, changes in net assets and cash flows for the year then ended. These
financial statements are the responsibility of the organization's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
Except as explained in the following paragraph, we conducted our audit in accordance with Canadian
generally accepted auditing standards. Those standards require that we plan and perform an audit to
obtain reasonable assurance whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statement presentation.
In common with many charitable organizations, the organization derives receipts from donations which
are not susceptible to complete audit verification. Accordingly, our verification of the revenues was
limited to the amounts recorded in the records of the organization and we were not able to determine
whether any adjustments might be necessary to donation revenues, excess of revenues over expenses,
assets and net assets.
In our opinion, except for the effects of adjustments, if any, which we might have determined to be
necessary had we been able to satisfy ourselves concerning the completeness of the revenues referred
to in the preceding paragraph, these financial statements present fairly, in all material respects, the
financial position of the organization as at July 31, 2006 and the results of its operations and its cash
flows for the year then ended in accord
Chartered Accountants
PricewaterhouseCoopers refers to the Canadian firm of PricewaterhouseCoopers LLP and the other member firms of PricewaterhouseCoopers
International Limited, each ofwhich is a separate and independent legal entity.
Skills Canada - Ontario
Statement of Financial Position
As at July 31, 2006
2006
2005
Assets
Current assets
Cash and short -term deposits
751,494
764,303
Accounts receivable
108,985
231,077
Prepaid expenses
23,880
26,123
Prepaid supplies
16,575
47,419
900,934
1,068,922
Capital assets
Office furniture and equipment
195,646
195,646
Computer equipment
133,216
132,831
Leasehold improvements
8,969
8,969
337,831
337,446
Less accumulated amortization
234,597)
(202,053)
103,234
135,393
1,004,168
1,204,315
Liabilities
Current liabilities
Accounts payable and accrued liabilities
92,469
57,942
Deferred revenue
242,848
380,482
335,317
438,424
Net assets
Investment in capital assets
103,234
135,393
Unrestricted net assets
548,568
599,554
Internally restricted (note 5)
17,049
30,944
668,851
765,891
1,004,168
1,204,315
Approved by the Board of Directors
Director
Director
Skills Canada - Ontario
Statement of Changes in Net Assets
For the year ended July 31, 2006
Investment
in capital
Internally
restricted
2006
2005
assets
Unrestricted$
(note 5�
Total
Total
Balance — Beginning of year
135,393
599,554
30,944
765,891
795,405
Excess of expenses over revenue
(32,544)
(64,496)
-
(97,040)
(29,514)
Internally imposed restrictions
-
13,895
(13,895)
-
-
Purchase of capital assets
385
(385)
-
-
-
Balance — End of year
103,234
548,568
17,049
668,851
765,891
Skills Canada - Ontario
Statement of Operations
For the year ended July 31, 2006
2006 2005
Revenue
577,176
130,024
Ministry of Training, Colleges and Universities
560,000
550,000
Human Resource and Skills Development Canada Program
308,291
286,704
Human Resource and Skills Development Canada - Apprenticesearch.com
72,436
85,496
Ministry of Education
115,060
42,255
Donations (note 4)
338,118
434,692
Activity /event fees
185,655
147,018
Affiliation and membership fees
129,416
106,580
Skills Work for Youth - Employability Skills Camp
20,000
-
Nevada proceeds (net)
6,583
8,529
Fundraising dinner (net)
17,605
16,329
Union Gas
150,000
100,000
Expenses
Competitions - direct costs (including in -kind donations)
- travel and accommodation
Wages and benefits
Rent and occupancy costs
Amortization
Printing and office supplies
Miscellaneous
Insurance
Apprenticesearch.com - direct costs
Postage and courier
Advertising
Telephone
Professional fees
Bad debts
Excess of expenses over revenue
1,903,164 1377,603
527,937
577,176
130,024
109,990
1,002,710
767,707
61,862
63,826
32,544
42,682
47,688
47,787
37,899
46,376
12,521
12,492
32,104
34,804
27,597
25,149
39,248
42,072
21,445
20,439
25,020
14,411
1,605
2,206
2,000,204
1,807,117
(97,040)
(29,514)
Skills Canada - Ontario
Statement of Cash Flows
For the year ended July 31, 2006
2006
2005
Cash provided by (used in)
Operating activities
Excess of expenses over revenue
(97,040)
(29,514)
Item not affecting cash
Amortization
32,544
42,682
(64,496)
13,168
Net change in working capital balances related to operations
Change in accounts receivable
122,092
(60,847)
Change in prepaid expenses
2,243
(3,775)
Change in accounts payable
34,527
10,407
Change in deferred revenue
(137,634)
362,422
Change in prepaid supplies
30,844
(47,419)
52,072
260,788
(12,424)
273,956
Investing activity
Purchase of capital assets
(385)
(30,234)
(Decrease) increase in cash and short -term deposits during the
year
(12,809)
243,722
Cash and short -term deposits — Beginning of year
764,303
520,581
Cash and short -term deposits — End of year
751,494
764,303
Supplemental disclosure of cash flow information
Interest earned
15,465
8,156
Skills Canada - Ontario
Notes to Financial Statements
July 31, 2006
1 Purpose of the organization
The purpose of the organization is to champion and stimulate the development of excellent technological and
leadership skills in Canadian youth by developing and distributing educational programs, activities and
materials and organizing participation in activities.
The organization is incorporated under Ontario letters of patent dated October 24, 1995 as a corporation
without share capital and is a registered charity under the Income Tax Act.
2 Significant accounting policies
Revenue recognition
Government assistance
Government assistance is recognized as revenue in the fiscal year amounts are received or receivable in
accordance with funding agreements.
Donations
Cash donations are recorded as revenue in the fiscal year in which they are received. In -kind donations of
equipment and supplies are recorded as revenue at fair value, when documentation to support the value is
available.
Contributed services
Volunteers contribute a significant amount of time each year to assist the organization in carrying out its
mandate. Because of the difficulty of determining their fair value, contributed services are not recognized in
these financial statements.
Activity /event fees
Revenue is recognized when the activity /event is presented.
Membership fees
Membership fees are recognized as revenue in the fiscal year due.
Skills Canada - Ontario
Notes to Financial Statements
July 31, 2006
Capital assets and amortization
Capital assets are stated at cost and are amortized using rates as follows:
Office furniture and equipment 20% declining balance
Computer equipment 30% declining balance
Leasehold improvements Straight line over 6 years
Tax status
The Organization is exempt from taxation under the Canadian Income Tax Act.
Use of estimates
The preparation of financial statements in conformity with Canadian generally accepted accounting principles
requirements management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the period. Actual results could differ from those estimates.
Financial instruments
The Organization's financial instruments consist of cash, short -term deposits, accounts receivable and accounts
payable. Unless otherwise noted, it is management's opinion that the Organization is not exposed to significant
interest, currency or credit risks arising from these financial instruments. The fair value of these financial
instruments approximates their carrying values unless otherwise noted.
3 Commitments
The future minimum lease payments required under operating leases for office equipment and building are as
follows:
Fiscal year ended July 31, 2007 44,075
2008 44,075
2009 3,888
92,038
The organization has entered into commitments with respect to provincial skills competitions. The future
payments required are as follows:
Fiscal year ended July 31, 2007 142,600
M
Skills Canada - Ontario
Notes to Financial Statements
July 31, 2006
4 Donations
Donation revenue consists of the following:
2006
2005
Cash donations
338,118
430,557
In -kind donations
-
4,135
338,118
434,692
5 Internally restricted
Internally restricted net assets is made up of the following:
2006
2005
Balance — Beginning of year
30,944
35,090
Net proceeds from Golf tournament, fundraising dinner and
barbeque
17,605
16,329
Disbursements to students
(31,500)
(20,475)
Balance — End of year
17,049
30,944
These proceeds are to be used to assist students competing at a national
competition.
Appendix A-6
Business and Education Partnership
of Waterloo Region
Financial Statements
August 31, 2006
%Lou =#1
PricewaterhouseCoopers LLP
Chartered Accountants
55 King Street West, Suite 900
Kitchener, Ontario
Canada N2G 4W 1
Telephone +1 519 570 5700
October 25, 2006 Facsimile +1519 570 5730
Auditors' Report
To the Board of Directors of
Business and Education Partnership of Waterloo Region
We have audited the statement of financial position of Business and Education Partnership of
Waterloo Region as at August 31, 2006 and the statements of operations, changes in net assets and
cash flows for year then ended. These financial statements are the responsibility of the organization's
management. Our responsibility is to express an opinion on these financial statements based on our
audit.
Except as explained in the following paragraph, we conducted our audit in accordance with Canadian
generally accepted auditing standards. Those standards require that we plan and perform an audit to
obtain reasonable assurance whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statement presentation.
In common with many charitable organizations, the organization derives receipts from donations which
are not susceptible to complete audit verification. Accordingly, our verification of the revenues was
limited to the amounts recorded in the records of the organization and we were not able to determine
whether any adjustments might be necessary to donation revenues, excess of revenues over expenses,
assets and net assets.
In our opinion, except for the effects of adjustments, if any, which we might have determined to be
necessary had we been able to satisfy ourselves concerning the completeness of the revenues referred
to in the preceding paragraph, these financial statements present fairly, in all material respects, the
financial position of the organization as at August 31, 2006 and the results of its operations and the
changes in its financial position for the year then ended in accordance with Canadian generally
accepted accounting principles.
/'
�
Chartered Accountants
PricewaterhouseCoopers refers to the Canadian fine of PricewaterhouseCoopers LLP and the other member firrrn of PricewaterhouseCoopers
International Limited, each of which is a separate and independent legal entity.
Business and Education Partnership of Waterloo Region
Statement of Financial Position
As at August 31, 2006
2006
2005
Assets
Current assets
Cash and cash equivalents
61,228
12,102
Short -term investments
60,000
-
Accounts receivable
36,312
1,459
Prepaid expenses
-
2,529
157,540
16,090
Capital assets
Office furniture and equipment
-
619
Computer equipment and software
6,764
6,764
Website development
9,258
9,258
16,022
16,641
Less: Accumulated amortization
(14,213)
(12,234)
1,809
4,407
159,349
20,497
Liabilities and Net Assets (Liabilities)
Current liabilities
Accounts payable and accrued liabilities
-
5,088
Due to related party (note 6)
15,463
-
Deferred contributions (note 3)
144,000
12,500
159,463
17,588
Deferred capital contributions (note 4)
1,114
1,671
Net assets
Investment in capital assets
695
2,180
Unrestricted net assets (liabilities)
(1,923)
(942)
(1,228)
1,238
159,349
20,497
See accompanying notes to the financial statements.
Approved by the Board of Directors
Director
Director
Business and Education Partnership of Waterloo Region
Statement of Operations
For the year ended August 31, 2006
See accompanying notes to the financial statements.
2006
2005
Revenue
Waterloo Regional District School Board — Passport to Prosperity
85,500
44,500
Donations (note 5)
64,014
91,949
Fundraising
24 ' 222
-
Other revenue
287
3
Amortization of deferred capital contributions
557
556
174,580
137,008
Expenses
Service fees (note 6)
148,920
-
Fundraising
16,534
-
Professional fees
4,725
11,055
Amortization
2,598
4,884
Office expenses
2,250
11,192
Miscellaneous
974
2,219
Dues and subscriptions
522
1,456
Insurance
494
5,493
Equipment rental and repairs
29
1,606
Wages and benefits
-
85,666
Rent and occupancy costs
-
12,000
Advertising
-
8,170
Travel and entertainment
-
4,304
Accounting
-
720
177,046
148,765
Excess of expenses over revenue
(2,466)
(11,757)
See accompanying notes to the financial statements.
Business and Education Partnership of Waterloo Region
Statement of Changes in Net Assets
For the year ended August 31, 2006
See accompanying notes to the financial statements.
Investment in
2006
2005
capital assets
Unrestricted
Total
Total
Balance — Beginning of
year
2,180
(942)
1,238
12,995
Excess of expenses over
revenue
1,485
(981)
(2,466)
(11,757)
Balance — End of year
695
(1,923)
(1,228)
1,238
See accompanying notes to the financial statements.
Business and Education Partnership of Waterloo Region
Statement of Cash Flows
For the year ended August 31, 2006
Cash provided by (used in)
Operating activities
Excess of expenses over revenue
Items not affecting cash
Amortization
Amortization of deferred capital contributions
Changes in non -cash working capital balances related to operations
Changes in accounts receivable
Changes in prepaid expenses
Changes in accounts payable and accrued liabilities
Changes in due to related party
Change in deferred revenue
Investing activities
Purchase of capital assets
Purchase of short -term investments
Financing activity
Deferred contributions related to capital assets
Increase in cash
Cash and cash equivalents — Beginning of year
Cash and cash equivalents — End of year
Supplemental disclosure of cash flow information
Interest earned
See accompanying notes to the financial statements.
2006 2005
(2,466) (11,757)
2,598
4,884
(557)
(556)
(34,853)
(910)
2,529
962
(5,088)
2,903
15,463
-
131,500
12,500
109,126
8,026
- (2,701)
(60,000)
(60,000) (2,701)
2,227
49,126 7,552
12,102 4,550
61,228 12,102
287 3
Business and Education Partnership of Waterloo Region
Notes to Financial Statements
August 31, 2006
1 Purpose of the organization
The purpose of the organization is to build partnerships and implement programs to assist students with the
transition from school to career, by enhancing employability and life skills, assisting to identify personal and
career goals and promoting life long learning.
The organization is incorporated under Canada letters of patent dated September 1, 2002 as a corporation
without share capital and is a registered charity under the Income Tax Act. Accordingly, the organization is not
subject to income taxes.
Subsequent to the August 31, 2005 year -end, the organization filed an amendment to its by -laws creating a
second class of members.
Effective September 1, 2005 the organization is now controlled by another not for profit organization who is
the sole voting member.
2 Significant accounting policies
Revenue recognition
The organization follows the deferral method of accounting for contributions, which include donations,
government grants and contributed materials and services.
Government assistance
Government assistance is recognized as revenue in the fiscal year when amounts are received or receivable in
accordance with funding agreements.
Donations
Unrestricted contributions are recognized as revenue when received or receivable if the amount to be received
can be reasonably estimated and collection is reasonably assured. Contributions externally restricted for
purposes other than endowment or the acquisition of capital assets are deferred and recognized as revenue in
the year in which the related expenses are recognized.
Contributed materials and services
In -kind donations of materials and services used in the normal course of operations and that would otherwise
have been purchased are recorded both as revenue and expense at fair value in these financial statements when
documentation to support the value is available.
Business and Education Partnership of Waterloo Region
Notes to Financial Statements
August 31, 2006
Volunteers contribute a significant amount of time each year to assist the organization in carrying out its
mandate. Because of the difficulty of determining their fair value, these contributed services are not recognized
in these financial statements.
Cash and cash equivalents
Cash and cash equivalents consist of cash on hand and balances with banks, and investments with a
maturity of less than 90 days.
Short -term investments
Short-term investments consist of guaranteed investment certificates with a maturity between 90 days
and one year, from the balance sheet date.
Capital assets and amortization
Capital assets are recorded at cost. Where grants have been received in respect to fixed assets, the grant is
deferred and amortized over the life of the related assets. Contributed capital assets are recorded at fair value at
the date of contribution. Amortization is recorded using rates as follows:
Office furniture and equipment 20% declining balance
Computer equipment and software straight line 4 years
Website development straight line 3 years
3 Deferred contributions
Deferred contributions represent restricted operating funding received in the current period that has been
designated to finance a program that is to be offered in a subsequent period. Changes in the deferred
contribution balance are as follows:
Balance — Beginning of year
Add: Amount received related to the following year
Less: Amount recorded as revenue
Balance — End of year
2006 2005
$ $
12,500 -
144,000 12,500
12,500 -
144,000 12,500
(2)
Business and Education Partnership of Waterloo Region
Notes to Financial Statements
August 31, 2006
4 Deferred contributions related to capital assets
The deferred contributions related to capital assets represent contributions with which computer equipment was
purchased.
2006 2005
$ $
Balance — Beginning of year 1,671 -
Contributions recognized during the year - 2,227
Amount amortized to revenue 557 556
Balance — End of year 1,114 1,671
5 Donations
Donations are made up of the following:
2006
2005
Cash donations
Corporations
14,094
11,900
School Boards and Educational Institutions
15,000
20,000
Cities and Municipalities
14,500
12,000
Government Funding Agency
12,500
5,711
Individuals
2,545
12,500
Other
650
150
In -kind donations
Rent
-
12,000
Advertising and promotion
-
200
Professional fees
4,725
6,750
Wages
-
10,738
64,014
91,949
(3)
Business and Education Partnership of Waterloo Region
Notes to Financial Statements
August 31, 2006
6 Related party transactions
Included in the accounts is a service fee of $148,920 (2005 - $nil) charged by the controlling not for profit
organization for services incurred by the organization but paid for by the controlling organization. In prior
years these expenses were incurred and paid for by the organization. Expenses within the service fee include
wages and benefits, rent and occupancy costs and general office expenses. The majority of the organization's
expenses will continue to be paid through the service fee to the controlling organization as set out in the service
fee agreement.
Included in amounts due to a related party is $15,463 (2005 - $nil) due to the controlling not for profit
organization.
Appendix A -7
Kitchener - Waterloo Arts Awards
2007 Annual Operating Grant
At the February 5, 2007 Finance and Corporate Services Committee meeting, staff were
directed to investigate if the K -W Arts Awards organization can be included under the City's
insurance, and whether an insurance pool can include this type of insurance in all municipalities.
Community Services staff is reviewing the matter of insurance options for grant groups with Risk
Management and will report back to Council when the review is complete.
Kitchener Waterloo Art Gallery
Appendix A -8
Unaudited Financial Statements for Year Ended
December 31/06
Statement of Revenue & Expenses
Unaudited
2006
2005
Revenue (Schedule 1)
Grants
370,880
333,050
Project Grants
166,743
72,854
Exhibitions
109,224
112,259
Education
85,733
80,619
Public Support
252,961
165,183
Foundations
109,983
291,558
1,095,524
1,055,522
Expenses
Curatorial, exhibition & permanent collection
305,259
373,107
Education programs
103,779
116,399
Marketing, development and fundraising
192,458
138,422
Administration
218,756
226,505
Depreciation and amortization
41,849
38,074
Building and Occupancy
94,636
89,127
Special Projects
166,743
72,854
11123,480
1,054,488
0
Excess (deficiency) of revenue over expenses
(27,956)
1,034
Kitchener Waterloo Art Gallery
Unaudited Financial Statements for Year Ended December 31/06
Schedule 1 - Revenue Detail
Unaudited
2006
2005
Government Grants
$
$
Ontario Arts Council
90,000
90,000
City of Kitchener
163,781
154,550
City of Waterloo
54,599
52,000
Department of Foreign Affairs
-
2,000
Canada Council
62,500
34,500
370,880
333,050
Project Grants
City of Kitchener
69,239
46,529
City of Waterloo
37,565
26,325
Arts Access
17,513
Trillium Foundation
42,426
166,743
72,854
Exhibitions
Corporate Sponsorship
105,680
107,243
Sale of catalogues
3,544
5,015
109,224
112,259
Education
Waterloo Catholic District School Board
21,750
21,750
Waterloo Region District School Board
20,000
20,000
Summer Employment Grants
4,080
4,241
Registration public programs
33,759
29,281
Tours- other groups
6,144
5,347
85,733
80,619
Public Support
Corporate donations
16,550
10,603
Individual donations
103,347
64,199
Voluntary admissions
2,095
2,133
Fundraising - Special Events
88,131
54,458
Amortization of deferred contributions
14,069
13,873
Other
28,770
19,918
252,961
165,183
Foundations
109,983
291,558
Total revenues
1,095,524
1,055,522
Homer Watson House and Gallery Appendix A -9
Statement of Revenue and Expenses
December 31, 2006
0511
Revenue
City of Kitchener Grant
Month of Budget for Total to Date Total to Date
December 2006 2006 2005
$ 13,683 $ 164,200 $ 164,200 $ 132,000
0560/61
Canada Works Program Grants
-
9,500
9,114
10,044
0572/63
Foundation Grants
-
8,731
9,312
8,441
0564
Ontario - Special Projects
-
6,000
6,000
6,000
0652
Memberships
115
5,767
4,718
4,701
0653
School /Educational Tours
3,284
11,500
11,201
10,453
0655
Education Sponsorship
-
3,233
4,000
5,255
0676
Novelty & Souvenir Sales
383
645
2,180
993
0677
Book Sales
-
733
177
667
0679/80
Art Sales & Commissions
2,174
11,159
13,054
10,766
0690
Program Revenue
2,002
76,080
92,807
67,463
0691
Program Sponsorship
-
11,303
6,330
3,185
0692
Retail Supplies & Services
85
-
2,241
-
0723/0724
Rooms Rental /Special Events
230
5,944
3,700
7,517
0810/12
Exhibition Donations & Sponsorship
----- - - - - -- -
417
13,289
3,376
-
7,791
0813/14/16
Fundraising & Other Sponsorship
160
52,00_0
56,170
46,830
0820
Gifts -In -Kind
-
_
24,991
1.3,775
4,502
0860/0861
Investment Income /Rebates
9,821
6,646
9,850
257
1022
Total Revenue
Expenses
Wages
$ 32,354 $
$ 17,119 $
411,721 $
164,200 $
412,206 $
177,861 $
326,865
140,671
1032
Fringe Benefit
1,458
20,370
18,576
15,768
1053
Weekend & Occasional
-
7,000
126
150
1200/01/09/05 Travel Expenses /Development/Studio
193
2,000
1,327
1,084
1214
Credit Card Fees & Commissions_
178
2,500
3,167
1,779_
1215
Bank Fees & Internet Charges
57
_
3,500
540
989
1217
Professional Membership
-
1,800
1,287
1,526
1219
Meeting Expenses
69
2,000
1,124
913
1220
Volunteer /Membership /Donor
-
3,500
2,330
1,836
1240/43
Promotional Materials
148
3,730
1,941
2,428
1241
Newsletter
-
1,500
1,267
920
1291
Delivery Charges
-
1,166
145
879
1292
Postage
425
4,092
2,024
6,388
1294
_
Telephone
192
4,000
3,348
2,999
1302/03
Commission - Artists /Authors
910
10,500
9,256
6,289
1331
Contract Service - Custodial
202
9,800
2,159
2,625
1342
Contract Service - Exhibition
300
2,150
2,486
1,790
1344
Contract Service_ Programs
4,210
50,000
48,600
39,325
1345
Contract Service - School Tours
750
5,500
5,445
4,263
1347
Contract Service - Fundraisers
-
-
650
-
1450 -
Insurance
-
3,200
3,657
1,667
1511/12
Building Maintenance
-
5,000
1,918
1,140
1518 -21
Equipment Maintenance & Supplies
203
6,500
7,734
6,932
1523
Grounds Maintenance
460
7,617
6,147
7,577
1524
Office Supplies
-
166
2,591
1,900
2,129
1525/26
Program Supplies /Service - Retail _
216
5,000
11,686
3,969
1528
School Supplies
94
300
500
223
1529
Operating Supplies
-
2,122
2,644
1,585
1547
Exhibition Supplies
-
1,200
_
934
558
1558 _
Souvenir and Novelties
-
1,957
120
1,960
1561/62
1580/75
Arch ive/Reference Materials/Collection
Fundraising Expenses
1620
Audit
1630
Promotion - Newspaper Adverts
1631
1632
Promotion - Exhibit
Promotion - Receptions
1633
Promotion - Institutional
1634
Promotion - Schools/Education
1636
Promotion - Signage/Internet
1638
Promotion - Program Leisure Guides
1639/40
Promotion - Program Flyers
1648/29
Promotion - Public Relations
1666
Refunds& Returned Cheques_
1691
Security
1710
1771
Staff Training
Provincial Sales Tax Remitted
1791
Utilities
1800 Account Transfers
1900 GST Paid
1950 PST Daily
Total Expenses
Revenues
Expenses
Total Operating Income (Loss)
95
4,079
5,600
15,845
18,225
628
8,736
-
3,550
4,000
3,550
208
2,000
2,092
1,659
100
700
3,108
72
-
1,500
886
1,107
336419 Heritage Challenge Fund Holdings
8,158
6,957
1,667
-
519517 Community Property Fund
502013 CIBC Credit Card Sales Activity
460
505
578
5,000
2,697
2,433
404
2,500
4,517
2,361
225
4,000
4,404
3_,950
100
2,700
534
12,637
186
3,405
3,687
3,457
275
5,000
1,690
1,241
68,344
1,083
617
512
-
1,200
798
1,012
1,465
12,000
10,130
10,617
(1,200)
-
(1,200)
-
181
56
5,500
2,800
4,991
2,145
5,489
2,134
$30,023
$ 406,470 $
407,480 $
324,129
32,354
30,023
$ 2,331 $
411,721
406,470
5,251 $
412,206
407,480
4,726 $
326,865
324,129
2,736
Summary of Operating Accounts
As of December 31, 2006
Balance To Date To Date Balance To
Forward Revenue Expenses Date
From 2005
325001 Monthly Operating Totals
$ 18,173 $
412,206 $
407,480 $
22,899
325002 City of Kitchener Wage Holdings
27,991
196,438
192,191
32,238
336410 Legacy Fund
-
26,150
-
26,150
336414 Museum/Gallery & Collection
336603 Expansion Project
(2,112)
188,762
26,750
39,345
- 12,277
189,000
12,361
39,107
336419 Heritage Challenge Fund Holdings
97,784
-
97,784
-
519517 Community Property Fund
502013 CIBC Credit Card Sales Activity
-
-
92,600
-
93,524
-
(925)
517551 Petty Cash
500
-
-
500
General Operating Balance
Other Account Balances
502013 Merchant Card Services CIBC
325001 Operating GIC
$ 331,098 $
$ 800 $
$
793,489 $
93,524 $
12,069 $
992,257 $
92,600 $
12,069
132,330
1,725
336602 Expansion Project GIC
-
192,307
39,345
152,962
336419 Heritage Challenge Fund KWCF
30,000
-
30,000
336419 Heritage Challenge Fund GIC
Total All Funds
68,344
$
68,344
385,360
Kitchener Blues Community Inc
Balance Sheet - Unaudited
As at December 31, 2006
CURRENT ASSETS
Cash $ 31,011
Accounts Receivable $ 14,441
Gst Receivable $ 7,421
Total Current Assets $ 52,873
TOTAL ASSETS $ 52,873
CURRENT LIABILITIES
Accounts Payable $ 18,323
Total Current Liabilities $ 18,323
EQUITY
Current Earnings $ 14,580
Retained Earnings $ 19,970
Total Equity $ 34,550
TOTAL LIABILITIES AND EQUITY $ 52,873
Kitchener Blues Community Inc
Income Statement - Unaudited
For the Year Ended Dec 31, 2006
Income From All Sources $ 225,350
Total Income
Cost of Production
Total Cost of Production
GROSS PROFIT
Operating Expenses:
Advertising
Executive Director Fees
Insurance
Non Refundable GST
Office
Professional Development
Telephone
Travel
Total Operating Expenses
$ 225,350
$ 121,503
$ 121,503
$ 103,847
Surplus Income over Expense
7,551
57,000
11,509
4,832
2,926
4,972
309
169
$ 89,267
$ 14,580
Appendix A -11
Kitchener - Waterloo Performing Arts Association /Theatre & Company
2007 Annual Operating Grant
At the February 5, 2007 Finance and Corporate Services Committee meeting, Theatre and
Company was directed to provide multi -year financial projections.
The information was not provided as at February 14.
Appendix A -12
Renate Willms
From: Renee [reneebiehy @rogers.com]
Sent: Sunday, February 11, 2007 4:21 PM
To: Renate Willms
Subject: Weavers' & Spinners' Guild grant appeal
Attachments: Fund raising detail 2007 budget.xis
Hello Renate
Could you please pass on the attached to the Finance Committee. This explains our fundraising expenses which
Counsellor Gazzola asked me about.
Also, further on ArtsVest. This is a pilot matching grants program created by the Council for Business and the
Arts in Canada in partnership with the Ontario Ministry of Culture and the Ontario Trillium Foundation. To date it
has been brought to only 5 communities in Ontario with Waterloo Region being one of them. Their website is
www. buisnessforarts .org /artvest/defauIt.asp if the Committe would like further information on this.
Thank you,
Renee Biewenga -Hyams
KWWS
2/13/2007
Kitchener - Waterloo Weavers' and Spinners' Guild
2006 Budget and 2007 Proposed Budget
November 2006
Fundraising
2006
expected
'06 vrend
Fundraising revenue
11,506
Auction
1,046
Bookmarks
0
Button sales
500
Other -Fergus, Minerva
160
Zehrs Card sales
9,800
Zehrs tapes
0
2006 2007
am
Fundraising expenses 10,160 11,350
auction 850
Zehrs Card 9,310
12,000
1,000
100
600
160
10,000
140
10,300
800
9,500
The income and expenses are shown as gross.
The Guild receives 5% from the sale of Zehrs cards.
The Guild keeps a portion of the sales from the auction --
10% for items from Guild members and 20% from non - members
CITY OF KITCHENER
2007 BUDGET ISSUE PAPER
ISSUE: #22 - WATERLOO REGION GREEN SOLUTIONS (FORMERLY REEP)
BUDGET REQUEST- 2007/2008 (ENVIRONMENTAL COMMITTEE)
FUND: OPERATING
DEPARTMENT: CORPORATE SERVICES
DIVISION: LEGISLATED SERVICES
BACKGROUND:
The following resolution was approved by Council on October 16, 2006:
"That subject to consideration during the 2007 budget deliberations, $25,000. be allocated to the
Waterloo Region Green Solutions (formerly known as the Residential Energy Efficiency Project,
REEP), as part of the Environmental Committee's 2007 operating budget, and further,
That during the 2007 budget deliberations concerning this matter, consideration be given to
extending funding approval for a 2 year period to include $25, 000. in each of 2007 and 2008. "
RATIONALE / ANALYSIS:
Waterloo Region Green Solutions (WRGS) is requesting an increase in 2007 of $5,000. over the
$20,000. contributed by the City in 2006 for a total of $25,000. in 2007, to assist with service
expansion. In addition the group is requesting an extension of funding approval for a two year
period, to include $25,000. in each of 2007 and 2008. Expansion of new services in 2007
include:
• Greening Sacred Spaces - evaluation of energy efficiency of churches and similar
size buildings;
• Provincial Low - Income Program for Electrically Heated Homes - free energy
evaluations and energy saving measures for low- income families in electrically
heated homes; and,
• Solar Assessments - evaluation of potential for solar water heating, solar pool
heating and solar electricity in residential homes.
Kitchener's support is vital to the organization's continued operation and serves to leverage
funding from other municipalities, utilities, and the provincial government.
Correspondence from Ms. Mary Jane Patterson in support of WRGS's grant request is attached
and Ms. Patterson may be contacted at (519) 744 -9799 for any additional information.
FINANCIAL IMPLICATIONS:
• $25,000. in 2007
• $25,000. in 2008
RECOMMENDATION:
"That $25,000. be allocated for a 2 year period to the Waterloo Region Green Solutions
(formerly known as the Residential Energy Efficiency Project, REEP), as part of the
Environmental Committee's 2007 and 2008 operating budgets."
Residential Energy Proj ect
A project of Waterloo Region, : :Solutions
Working together for healthier homes and sustainable communities.
January 25, 2007
City of Kitchener
Kitchener City Hall
King Street West
Kitchener, ON
Attention: Mayor Carl Zehr and City Councillors
Dear Mayor Zehr and Councillors,
I write in support of our request for funding from the City of Kitchener for 2007 and 2008
in the amount of $25,000 per year. I also have news from the federal government.
EcoENERGY Retrofit Program
Natural Resources Canada has announced the return of an evaluation -based incentive for
improving energy efficiency in homes, called the EcoENERGY Retrofit Program. Details are
still coming out, but here is what we know so far.
1. Existing Service Organizations such as ours have been invited to indicate their interest
in continuing to deliver the residential energy assessments. We are interested, and Green
Communities Canada will respond on our behalf.
2. There will be no subsidy from the federal government for the cost of the initial or
follow -up evaluations.
3. Canadians will be eligible for an energy incentive based on retrofit measures
implemented and these grants (non- taxable) are expected to average $1,000. Essentially,
the government has taken the subsidy, and added it to the grant.
4. The EcoENERGY Program will be launched on April 1, 2007. We are accepting names of
people who would like to book an evaluation after that time. In the meantime we are busy
completing follow -up evaluations for the customers who were part of the old EnerGuide
for Houses program, with a deadline of March 31 to apply for a grant. They will not be
grandfathered into the new program.
We are pleased to see the return of a federal incentive for home energy efficiency. It is
our belief that the resolutions passed by the City of Kitchener and our neighbouring city
councils were a significant factor in urging the federal government to return to the table.
Thank you for your strong support through the difficult times of 2006.
... /2
Request for Funding from the City of Kitchener
We ask for a 2 -year commitment and for an increase of $5,000 over the City's contribution
for the last several years. The 2 -year commitment provides much - needed stability that
enables our organization to both attract higher level funding to our community, and to
weather the storm when it abruptly departs.
This year, for example, we join several other communities in a pilot project for the
Ontario Power Authority to provide free energy audits and home retrofits for low income
electrically- heated homes in Waterloo Region. The value of the initiative is over $200,000,
all of it provided by the province. No local funding is required for this project, and the
economic value to our community is substantial, in the form of improved housing stock,
better living circumstances for some of the people that need it most, and economic
stimulus in the form of home retrofit work. REEP was able to attract this pilot to our
community because we have a proven track record of local support that gives us the
stability and capacity to be a responsible partner and delivery agent for the OPA project.
The $5,000 increase that we request recognizes the expansion of our work beyond home
energy evaluations to other energy and environment- related services the community
needs. We are developing energy retrofits and educational programming for churches, for
example, an initiative that began with funding from the KW Community Foundation. The
work continues with our own reserve funds while we seek additional support to help the
churches carry out the retrofit work. There are now over 30 faith groups taking part,
looking for help in making their places of worship less expensive to heat and more
comfortable to inhabit. Together we are sharing resources and funding ideas with
networks of faith groups in other cities to find solutions.
Another recent REEP development is our Residential Solar Assessment, a third -party
evaluation of a home's potential for solar water heating, pool heating, or electricity
generation. We created this service when it became apparent to us that there is a gap
between the tremendous interest in solar energy in this community, and the ability to
follow through and purchase solar technology. It is one small step towards a better energy
future for Waterloo Region.
Our core work remains the home energy evaluations. The EnerGuide for Houses results for
2006 in the City of Kitchener are now in:
• 780 tonnes of CO2 reduced by REEP customers following our recommendations;
• $219,200 in federal grants received by Kitchener residents as a reward.
Congratulations to the City of Kitchener for reducing a total of 1,700 tonnes of CO2 through
home energy retrofits since the grants began in 2003. We look forward to continuing to
provide this service in Kitchener under the banner of the new EcoENERGY program.
Please do not hesitate to ask if you require any further information about our
organization.
Yours truly,
Mary Jane Patterson
Executive Director
CITY OF KITCHENER
2007 BUDGET ISSUE PAPER
ISSUE: #23 - Budgeting for Net Supplementary Taxes
FUND: OPERATING
DEPARTMENT: General Revenue
DIVISION: General Revenue
BACKGROUND:
Historically, the City has not budgeted for net supplementary taxes. Any supplementary taxes
earned in a given year become part of the City's operating surplus, which by Council Policy gets
transferred to the tax stabilization reserve fund to stabilize tax rate impacts in future years. In
2006, $3,334,000 was budgeted to be transferred from the reserve fund to the operating budget.
The City plans to reduce reliance on the revenue from the tax stabilization fund over time.
History of Surpluses(Deficits)
1996 (450, 000)
1997 (1,763,000)
1998 431,000
1999 22,000
2000 (738, 000)
2001 (1,103, 000)
2002 392,000
2003 1,117, 000
2004 3,500,000
2005 3,366,000
History of Net Supplementary Taxes
1996 728,803
1997 (1,476,085)
1998 ( 611,045
1999 126,830
2000 ( 17,704)
2001 740,749
2002 578,947
2003 1,102,177
2004 1,654,531
2005 2,104,670
RATIONALE / ANALYSIS:
The net effect of the above approach is that currently, the City is budgeting to achieve an
operating surplus of $3.3 million per year, with some flexibility built in to smooth out the impact
of fluctuations in supplementary taxes and surpluses over a number of years. As a financial
planning tool, this approach is preferable, but is not as transparent and easy to understand for
the Public. An alternative approach would be to budget for net supplementary taxes of $3.3
million each year and eliminate the transfer from tax stabilization, which based on the last 10
years experience, would result in an operating deficit in most years. A more middle of the road
approach would be to budget a reasonable achievable amount for net supplementary taxes,
such as $1.5 million, with an offsetting reduction to the contribution to operating from the tax
stabilization reserve fund and continue the original program of reducing our reliance on the tax
stabilization reserve fund for budget purposes over time.
Some medium /large municipalities budget for net supplementary taxes and some do not.
Generally, small municipalities do not budget for net supplementary taxes
FINANCIAL IMPLICATIONS:
The recommended approach outlined below, results in more precision in budgeting, but reduces
the amount of flexibility to accommodate major fluctuations in revenues and expenditures in a
given year.
RECOMMENDATION:
In order to achieve a higher level of transparency and clarity for the Public, Staff recommend
that in 2007, we budget for $1.5 million in net supplementary taxes with an offsetting reduction
to the budgeted contribution to operating from the tax stabilization reserve fund and continue the
original program of reducing our reliance on the tax stabilization reserve fund for budget
purposes over time.
CITY OF KITCHENER
2007 BUDGET ISSUE PAPER
ISSUE: #24 — IINVESTMENT INCOME
FUND: OPERATING
DEPARTMENT: GENERAL CITY
DIVISION: GENERAL REVENUE
BACKGROUND:
Each year, investment income is allocated to the Operating Fund based on short term
investments made throughout the year with available cash balances. These balances exclude
those specifically committed to areas like trust funds, reserve funds, EDIF, enterprises, etc.
Due to increasing investment rates and a slightly increasing balance, there is an opportunity in
2007 to increase the budget for investment income, which is currently approximately $1.6M.
RATIONALE / ANALYSIS:
In 2006, the investment rates earned were over 50% higher than those experienced in 2005.
The average yield in 2006 was 3.97% vs. 2.63% in 2005. Chart #1 shows the previous 5 years
short term average yields earned and chart #2 shows the previous 5 years short term
investment balances.
Investment income went from approximately $2M in 2005 to $3M in 2006. Rate projections for
2007 are expected to decline somewhat, with forecasts ranging from 3.75% to 4.25 %. Average
short term balances are also expected to decline with the anticipation of reduced unexpended
capital balances.
With the assumptions that the 2007 average balance would be $52.7M (70% of 2006) and that
rates would decline throughout the year down to 3.75 %, investment income for 2007 is
projected at $2M. This would allow for a budget increase of $400,000 for 2007, representing
approximately 0.5% of the general levy. While it is acknowledged that the 2007 investment
income will still likely be greater than $2M, it is a level of investment earnings that is believed to
be sustainable over time. To illustrate this point, if the 5 year average yield were used along
with the 5 year average short term balance, investment income would be $1.8M per annum.
FINANCIAL IMPLICATIONS:
$1.6M 2007 budget for investment income
0.4M Proposed increase
$2.OM Amended budget for Investment Income
RECOMMENDATION:
That the 2007 budget for investment income be increased by $400,000 to $2M.
Chart #1
e,� — — T — —.-- x /: — i _I —
Chart #2
CITY OF KITCHENER
2007 BUDGET ISSUE PAPER
ISSUE: #25 - LEGISLATIVE CHANGES
FUND: OPERATING AND CAPITAL
DEPARTMENT: ALL
DIVISION: ALL
BACKGROUND:
The attached is a summary of the impact of legislative changes on the tax -base and enterprise
budgets from 1999 -2007.
RATIONALE / ANALYSIS:
This information is provided annually to provide context for the impact of legislative changes on
the City's operating budget.
FINANCIAL IMPLICATIONS:
The impact of legislative changes is non - discretionary and must be built into the City's budget.
The net value of legislative changes since 1999 on the existing tax base is approximately 1.4%
of the levy, despite the increase in the GST rebate in 2004.
RECOMMENDATION:
None