Loading...
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 WWI � e cn 0 L 0 0 (w) rML 0 LLM 0 0 N N cil W* rq CD LEMI N 0 i 4� LL n�� W a) M 0 � ^� ♦ W ♦/1 � /a 0 CO W cn -cn O L /) W Cl) C: 0. ._ � W cf) O •cn c � O � ca L n V0 U Cn O M a) 0 LL ._ ,� c a) :3 a a) > .� to U) � c M C/) X a) LL L u I I I aad 1In a� L• lo l CC) CC) CC) r*-- � rl�— � 0 0 0 1` 0 0 0 O O 0 0 O � Lid I` (3) -, � QD � (C) U U U L D -) -) -) Co IL IL L L Q m. r c O cu �. 0) m .� o c O CU = cn L O cn 4- (1) O c6 U O }' N UL N � >' C ui U L O U) ±' x E U cn M4-- W � � > U_ N O >+ O -I.- � t6 Q) cn N > ^L' L U c6 }� (LJ (1) O O _1 W E O C +r CU c6 U Q N )� _ E a) L) N N +) O U V �� � � C O OU m m U O- L � ' Q) 3 u) a) a) T CA N O �— — t6 �--� 4— O a) O O N C > Q) C a) O O a) '' U) a) w w w L C: C a) O°cn (1) m > > M +r Q) 0 cn m ��'W Uca� >U a) x , 0a)a) m. —� +r2 ��m U��ca 0 � U +r cma)E c C� Q L E a) cn E! a) U 4-0 V /N�� cn n ZL � C m E m }� m ,� O VJ Q E ff'' � Q O cn R U aV E (� Q L (lJ cu 0) L coQC U) C)> 0-co , � ,. ^�` Q W �/ ) cu ^I'' aV 1 1 1 1 0 1 1 0 0 0 0 M f` O 07 CL r M M U U 0 0 0 0 0 0 0 0 1 1 1 LLB O it M M I` I` m Y M 6 1 6 1 LLB 6 6 1 r a) O cn 0 ,.. N N L- O O U i= U 4-j L U- 0 W cn 4-j cn 0 06 o � N — co U 4-j N EM O O7 t6 O CL 06 a +-• }, U) � � to C) O O. c/) C O c � ±r (a N U O O U .L O 75 p LL (n O 2 U O 2 N W N Z to 0 to CD O N W N O t O O M O N AL, W A x (A ^vI rR A U) .> ' ^ 4-1 W � O M O CD It O) O (� 00 CO Ltd I` CF) M 00 m a U � � Qc) d') M O It <fl OM 00 00 Ltd CD It d') M 00 0 N N LU H It O M 00 It CD d') O uJ 00 M LO CD Ltd 00 CD Z N N W 2 H Y AL, W A x (A ^vI rR A U) .> ' ^ 4-1 - H L U U o U� W m �a �a M = z o a F- o 0 O F- F- 0 O M O N O O M O M O LO LO 00 O 00 O LO 00 CO M M (n N N O _O ` L^' W +-0 m 0 O O O W O cA (o cA Q O O O ) ) O .� L c ,L 2 W E M O •�^+ W CD E m C� z _, 0� m U � Cfl O N O b�A G� 9 O "~ o V O � N w 0 N M W Cl) C/) Ne 0 L Q cn M O a) O to .� L�- -f-j c QL ._ a) cn a) c � o U :3 cn O O cu — Q L � O ♦�^ V♦ cL L :3 C) c m a) W >., cn a) cn L. — E %� cn cn c > O cn c ■ Cu �--r m a) J 4- O a) J O U . _ cn cn i a� x ca ca sexal Aae ;uewolddnS ;ON 0 0 0 0 0 0 0 0 0 0 0 CD 0 0 0 0 CD 0 0 0 0 0 0 0 0 0 0 0 0 0 0 C 0o Loy o0 N N Lo o L N N � o M a0 ti (D Lo 'IT M CD M'IT Lo (D r- M M O � N Ana-1 ;o % se ( ;ioi;oa) snidins t6 W � cn E cn --+ � 0 C/) cn o L o a) n� O W L -0 � ♦-- O U � O ♦ � C a) O Ll-- :C3: •� •� -i E 'L c n c/) L o) -Q 0 O 0- P1 ' � � — O W L U ♦--+ � cn '� in L _0 C/) CL N O d,j 0 O cn ca Ca O O m � .L L ca�,0 U N �'- �Cn � X O('� j � OO Z 2 (n - � m Q � O I � I I I I (1) N w O O U ! V, a L) ° o 0 0 o C) M LO � N N N .� I � Q a) c/ W II >1 > V > m J J '� > m X E X r 0 0 Cl) O Cn O > E N Q N °o 0 00 N N O LO (C) N� N M O O N N Cc) M O Lr) 00 N N O 00 N LO ti O N a) k %. U o n, W cn m 00 i� cu � a m U -a O 06 CU cn W J _rZ o a) U) cn cn cn Q - }nn'', W Z � O ♦^ co O O N — W 7", rr= a� U 7 O CD cq n y U) C. c cn a C/) L o L s a� L LL 0 F-" Ct V1 . v N CL L W O V O 00 •� A W W � � o O V U � V � � O y � o V � � � N O � ■ ■ O Ll O O O O O O O O O CD CD CD CD CD CD CD R N O w w N � r r SISOO IBUOiIippb ti O t0 O U) O le O L O N O VII O O O a) N OM N Liz O O O N M �$ CD O Ln Ln o 0 0 0 m, C CJD O CO N N LO O O d. L(7 O O O N M O o 0 0 0 r O (D Ln O M N Liz N Lo Ln O O O a) � O O O N M i o 0 0 0 ("7 G O Ln N N N Ln O N O O X 0 0 O O Lo O O Ln O N M r ' M o 0 0 0 0 �! N M N N _ M N O N O Ln N i ■ ry C\l LO f� L.(') G N Ln �� N N N o 0 L 0 0 E N O LS') O f� M O N O (O O N M N i r 00 (D N O G M co N M N 0 N Ln N o 0 0 0 0 0 O co O LO O O f,- (D O N O Cl) /R ■ O N Cl) O M N C O� Ln r 00 Cl) M LS) N O N N LO o 0 L 0 0 0 N O Lid O 00 O N O LO r Q N N N M O Lgi O' Q G Cl) o 0 0 0 0 0 04 CV) LO O N N N � LLM7 O N O L� M O N r M 0 M O O N (D 00 0 0 0 0 0 0 >0 t1 O O O O N N N N M Cl) O LO O I- LP) O (D O N O LO N Co N r M 0 (O •o a a a� O� o N i) ryW m CL to Lf7 LL E O A (V L N U) X ) a) N w O O C m O N I 4L a U -, N � ` � U (D C X 'a iC L (� L C N L j O N U N L i (n N N ++ y C Of V O U) SZ i 10 L r U U 0- U m (n p 0- �_ � 6 CL ffi O) E N N O- a_- U m o C U J- N a-- -U - cu En U) Q) CO m R Q 3} r ai 55 p N m S m O U m C fA O N U X tu, Qi tp m — m m— o m m o O m m N -0 0 > Z LL Y Z (n Z 0 0 0 Z Z Z Q C N O o U) m �. in U m d — L U L U m (n Z 0 .� U m cn a� cn 0 ^1 L L.L M LLI O a� L.L c E m o M o L m U O o W °o C: . 0) o o c M+rN O N mo to 0- a)p cn 0 M -I-- a) c U C� � U 0 0 0 LO r 0 m co O T- co M sm m 00 LO M N O M 00 a) Cat Ana 0') N 0') co CO I-- M CV Im t W. Q � ~ J ' U �e c E m o M o L m U O o W °o C: . 0) o o c M+rN O N mo to 0- a)p cn 0 M -I-- a) c U C� � U c c� L^, W l (1) L Q L W W a� C/) -4--j m C14 0 C14 S CD @ q ❑ w e w w ƒ � CL ƒ a % \ S \ / En G / LU Of \ \ 2 $ _ \ e G / q E ) / / \ / o CL o CL j k / j/ ( d x CL \/ 2/ § ¢ E _ _ _ — o ± .g , , e CD 2 ƒ j M ƒ j \ \ \ \ / / / } p o 0 B e o ± O � / » E ° § / ± /_ a \ \ ( k = O o = d / / C L) 5 � / / e / / \ 00 C14 CD a(00 CD )\ \)� C'4 (D r- co n(00 of % 2)% C)- }� }� r- CO C) �((D o\ � 2)7 q)\ C4 Cl) 00 C14 m(� c} � � :o C) 00 o} CO :� A :a C3 0 w n o\ � /(� &(- o C\ � : ) ) IL 0 2\It C) It 00 (D M /)7 �)It CL LU / ? }/ / }q NCO CD :n :n q CD} ZE l l LU 0 w \ x / _ @ LL _ I $ q § > % 0 . 7 \ LU U 2 # 2 = Q u = k k / a ( L) cu 5 m q � Q) E 5 w e \ = @ o \ $ r- CD + § § I cn .2 = / 7 0 ZM 0/§ 0/ k } k k ° m CU E E g E 2 6 W O § T- w L) ƒ $ p » v .k ) \ \ \ \ \ / \« o e e X O � \ 00 C14 CD a(00 CD )\ \)� C'4 (D r- co n(00 of % 2)% C)- }� }� r- CO C) �((D o\ � 2)7 q)\ C4 Cl) 00 C14 m(� c} � � :o C) 00 o} CO :� A :a C3 0 w n o\ � /(� &(- o C\ � : ) ) IL 0 2\It C) It 00 (D M /)7 �)It CL LU / ? }/ / }q NCO CD :n :n q CD} ZE l l LU 0 w \ x / _ @ LL _ I $ q § > % 0 . 7 \ LU U 2 # 2 = Q u = k k / a ( L) cu 5 m > 2 I w 2 2 LU q / o LU LU L) F- F- LU ® (D > �% /7 / w o ■ % / \ \ ƒ %' = t a \ $ § % ƒ > 2 2 ( } \ � 2 \ La �7k �yG\ _ = \ G \ o a) �'\0� « e o o �\ cn _ >- .-. � \ « e= a e _ _ o 2 2@ e° c IL e — _ m = S e _ ® CL 2 2 S J 2 e e __� I a E E S k� ❑ > » o U � Q tn w w q=° *`) 3 2)% _ _ _ U� e e 2/ _ f� U E E G 2/ U) » CL o � °* `) U O /3±2o //w %.WO �mRR <I $ �±Lo /�II N ~O O O , O o 00 LO � CD 0) LLB r O O 00 , N O N ', LO O LO 00 N r- ? �• M 00 Lo r- �• N ,ti Lr) .... O W W X W m CD 3 r tD r N N > CU O N N N C W a a_ w w ._. O _0 CD N O N o N O CA C17 00 M Q O r CA 0) M CA rM CD O 00 CD N N CA .;CD LCD CD O N N CD C'7 N U N Q- N V qT T- LO - � � N � o N r,r Ca O 0 LULL) `2oxo =�� x C) ^L LL W Q Q CU Q LO 0) , CD o f` N - CO CD N f` r C) O _0 � � , CA O O O CA O O Cb CA I` f` N 00 r CD O O ? 0) ? co C'7 CA N , 00 m LO C" ) , CD N N .� CV N U U) O O � � W D O .... O W W X W W _ C� CU L c (1) Z N W > W Z W ) N > CU O N N Z 0 W C W a a_ w w ._. O N > O o W > > U Lx o LU H 0 L >+ LL_ O ca ca W O E Z� Q }, W e Q U U a m m o z> cry x o o > H O g W V J - I L J of CO VW/J� L L � O U �) ZO L U) U) J L Z U) 4- 4- W N o U� W �� c c N� 5 W CU-0 � Ca O 0 LULL) `2oxo =�� x C) CD 2 W W Q Q N M 00,0 O N O 00 CO L7 CO N 01 O 73 Lo 00 CD , (01, Lo N N, Ln O M O N N qT 00 f` f` co M N 00 Ltd co N m Lr) M f` N : 00 00 N ^, N 00 : O O O o M CD M Lr) 00 CD 00 ' Lr) Lr) LL U j 0', � O LO f` M O N LLB I` N � O (Y) 'IT f` O - CD M M CY) M � N N N Q Q M O M M tD N M 00 00 N f` CD o O 00 O M co M ;f` N r- ,L O O Ltd LO C)"', 00 I` O , LO M N Lti f` Lti � M O N Ltd ti M d) f` N N m , M CF) ,: M f` N M , 00 00 N .� .� H U U) N LL m O W C O_ (D U) W x O L N U (n D L O W >' > N N W Z L> N O C) U) W c6 0 O W� N N W U W N E: O O c c a �� > W > > LLJ W N a o U) M M O Z N N 0) O H D N U)� Q Q � 0 0= Z� m tm LW N n 0 0 O W W W Q = Z - N > ~ W Cn O N Cl) W W 0 0 J N U }, (6 C U X 0 L o a cn U J" z m N 0 O N� W N }' cn W N W C cn 0 t6 > o° � a � m m m U m Q ��nUC�(D LU �n�� w a a ca L ca 0 .0) ) 1..1� O U) (n c O a) to QL �U c O U c� a) ^L, W -0 O O .4-1 O U) a) a) t� rA' co co E E O L L O N � N O N N U oo 0-) L CU � � O L L O O U �j co W I I I L- a) 0- O E L c? co � N CD CO O _-r- E CD a) U � � m O _ •E O o o � � 0 I� t6 00 N O V-- O 60- 69- E m cm O U) O N ca � 00 a� CY) o � am n a� � c x � H Q- O ol- c/ O O 0 0 0 w m N N N LO Cc) N WIN M O O O a �--� m U O • �cu /_u�^I, J N Y i ". , c / < Z O co N U-00 W Kv M Mm Yi 00 CY) LO N m Lo o0 I` C� N N (3) t r O a �--� m U O • �cu /_u�^I, J ^ a) E �c A/ c / a) Cl) Q Y i ". , c / < Z O co N U-00 W Kv L- 0 \ \ \ \ \ \ \ \ \ \ \ \ \ O 00 m 00 O N O O m O O M O 4 M Cvj M O N M M 6 M M M O I` O d7 m F- m Cfl LO O M LO N O It O U') CO N N M N CO CO r— -6--m I L� _0 (n O L U O a) o m z 0 _0 J U a) u� cn C: 0= 1, cn 4-j a_ N -�e O 0= L- N > N J -F C in O LU cn 0 C U D U O O C O O _ � t6 C to i--� N ) O N - Cn cn — — E U N cn N cn N cn O cn N cn m � O L Q 0 W W W W O M C)7 }, U U U U U CO U W D 0 c c c c c c 0 ■ CD Q LO LO LO DO 00 M Lty L O . _ M cn O r- (n O U E E .� 0- CD cn CU O O Cl) O � U cu o U O VIP U U w O O N m U) cn 0 J °m Lo oC) o 0 0 0 0 CO 04 'J bOJ d aanl4 1Ino s:Jy I IMOJ E) OI/UaS uoljeJadp IUaH IIIOej slat udolanaa AOU003 ssoulsn8 ,alpnjg puel pue ,aa uegJn 61Ilen?D vIlwbW iuewe(] ?:JodsueJl m E N � W L ■� O cn 0 J °m Lo oC) o 0 0 0 0 CO 04 'J bOJ d aanl4 1Ino s:Jy I IMOJ E) OI/UaS uoljeJadp IUaH IIIOej slat udolanaa AOU003 ssoulsn8 ,alpnjg puel pue ,aa uegJn 61Ilen?D vIlwbW iuewe(] ?:JodsueJl O 00 M M O r 0 M m r 0 N O N N M r m r— ti r r 1- M M 0 ti N M 1- N 00 N O O r 00 N N T r N N > IM D N N U ` U) N CU (L) ♦ U /D �. C }' (M O O m V 0 :3 Q- v a >, M m L cn (� > O C O U N ) L O U E o L L 0- o E C �' U L � cn -D Q Q � �n _>1 a _� a E cu L a� cn 0 U m o DL L m = E cu m O m U o o U) cu i� o U 0 m an c0 C m > C O � ^�'♦ L �_ L cM � � V 2 VJ �^' W m O_ � L > m m U M m m U> LL U 2 0 2 Q 0 H 0 W U O r N co Lo co f` 00 0-) O (D f` 00 d7 r r r r r r r r r r (V 7 U C M E N J O U 73 C 0 > (n ,,. M W U) 4 V) O L (6 C C 0) U) -0 -1.- C C ±J 0 ± O v� a� ca o IM U) j a L O cn LL_ C Q o� C/) O O � 5\ ���//�� V) n ♦ 'U) 4 >J � I� �. �1�♦ ) L ` W J L W O CL > DD mo = a o -C O,--a C 0 O :3 O ' N tn O ' — V — M >1 LO Q. O >, to — M a) to O .O O O \° a) E LL O O � E O O c' E O m CD O O > O V O � O to a) O � O 4--j O 0 m a) QL m 0- a) U) -a) m a) 0) m a) O O0--. 0--. O N LO LO N N L > L 0--. O 00 M 4--j ca N O � p O ' o a) a p 07 0 O') cn c- :3 � 0 a) a) j E p Re z ° U , O L— C: M — U 4-0 p N m m a) -r- E a_ > J c � � � � o � UA♦ L �✓ ^l ^O �W/ I..L L.1. 00 N ti O 00 r 00 M Cc) � O r O ti O O M O f` M O N Ltd O Ltd Liz r N (c) 00 N r Cc) 00 r j` M Cc) O N It O O M r LO M f` 07 (c) CY) It Cc) M O O f` It M v M LO O N O O Cc) O Cc) N N CL N__ tc) M M O O It M N O O O M r f` M N LO Cc) 00 O f` M N (c) r LO d) LO LO LO M O LO N c0 N r` V— C-4 O � M ti O Cc) � M Lf7 Lt7 Cc) r r N N N It 00 M M O M M M m f` LO Cc) It N f` m 00 m Lid 00 c* r N e;( Cy C: C N � N 0 E o E cn N •L E^ En j N � L cn 1 Lm U > > O > (� Q O N 4-a L U) — N t� °— c E I••I••I cn L W E cu cu Q L cn CL c — U �, Q Q Q m m U Lu Lu LL. LL. r M — N (D M (D r O N O O It N M -�-� M It M I� M M It N r N N M N O L r -- r m (D w N It N ti N N I- N M I� CD M O (D LO M N r LO M LO cM CD CD N N N O L (D -' 00 N CO CO r 00 0. N__ I` r (D r (D I� M M N I� LO It M M (D It M (D M LO (D N LO O (D N (D O 4) M r N ti CY) 00 N ti N O It N LO r— LO LO (D 00 00 0') O It LO CO It LO 0-) M (D Lo (D cy) O Lo Lo ti It O L r _M It CY) a) LO M ti Q Q N C O_ • E C � x W 4-i m 0 O O (a L L U }, N _ Q 4-0 (a N C� (!� ca U v L) LL C O �N L L Q O a--j > m E O O I 07 I 0 0= O m O U O J C/) O m D, CD D m � a) U U X (� O N U_ U) O av o cn > c O ' ■ N� ■ A--j ■ T Q T N O N N O T t0 LO O N O N 0) Gi r Qo ti � r 00 Nt Q D LSD � .. tD C r Q V- 00 00 GG 00 ti M LO N N r r ti 0 O M r- 0 0 O (D N c r) Nt 00 r r r 00 .. (D M N N 0 LO 00 LO •� (O LO Q 0 0 O Q O M 00 N Nt (D M O O (D O a N Cr) � CM N M O r 14..00 V- LL (D LO LO r- O 0 O CO CO CO E N D? a N N r M N - E M -I-.- r 07 N cu c m A U 07 O_ o am a) U L � •� •� E U m m L :3 O CL CL N O 0 O o p N in o o M Q o C N Cu 07 N (n i L CL 0 m O H H Y U O m +� L6 L O -r- CD- U (D L L O O }� O cn �^^'' L W Q U N C: CU O L � N N � (A m U � N O U •� N � •p N L c :3 N Q L ^' CU cQ L :3 N Q Q. L O :3 1 cn c6 O S Z LL. c y (L) O 0) 0) 00 00 0) Ls) co C 0 (6 �e N O' 3 Q C;) r C M M (D LO 0) LO 00 (D 0 ) r— r` N Q U O U) CL N Ln LO CD (D m .. LO G r CD CD 00 O LO r` LO O ti r` (D M .. (O r- m N (D (D CD (D N r �+ N r` O (3) (3) O M M C N NT O O LO 0) M ■ N m 0) 0) ti O N 0 r— co co 00 00 m 0o M m o0 m O r` NT N r` N (D O 00 (D m O 0o CO w m �� m N 0) O 00 co CO m c ■ d 0 0) Ltd O� � O co LO 00 a1 CN CO � O— N M CO r� 00 O r LO 00 M r— (D ti O O 00 C 5 N M 00 CD ti co q N co 00 CD r` co 0 0) O 0) W w O V W 1;T NT M 0) O 00 O O 0) O 00 0 r` 0) NT Lt) ti O O N q (D ('M O (D N to O 14.WO 0 N L- r r a .� LO r` ti °O °o i i CL o Q N LO ti r LO O ti LO r O Lf) LO N r LO N r c y V � 0 W� u L ai C 0 (6 N N N O' 3 Q (6 m m c �,���� C: cn O c -D(.0 -0 .� cn Q� 0 � �2 .+ Q U O U) CL �C) Ww0LL 0E- ZO U cu E o O f� O LO C0 O m 0 0 0 0 l m O N N r I- N O ti 0000 N L '� N o rm a H W -- r-o C N LOU LO LO t+ i d d N �. _ cn Q N N N _ .O O O O d c c d v v > M > > >> X m m O O O O w W�e s a 5 w a a a a z m m O O O 00 O m O O 00 m 00 00 ti " O N I N O O O r-- CIO LO LO LO f— N t9 O O LO O LO r 00 O m O O co 00 m t0 LO d7 O ti LO O O M LO I- LO 00 ■ O N Lf� LO co -' O O M W N Op O m O O O O m I` O (0 00 r LO O O m N N LO ■ O M O 00 I` O 0 O I` N LO O O O O LO f- N O M 0 O N N N C N w Ltd .. 00 N N d ti 0) OO r I` O M N 0 0 0 0 0 0 0 N I` � ^ � � O V � O O _ - O Lf� � _ I` w t9 00 Lf� M W LO M N O N p 00 LO t9 N CD a LO 00 0 CIO � 0 0 0 0 0 0 0 O N ■ � NV � 00 LO LO ti ti ti O t0 LO 00 M LO LO a Cis cu E o w O C L p D ; , O N N U E b 0- N �_ m �_ N (6 m a 0 L '� N o rm a H W -- r-o o_� o a LOU _ d i .S O � t+ i d d N �. _ cn Q N N N _ .O O O O d c c d v v > M > > >> X m m O O O O w W�e s a 5 w a a a a z m m ca D m C4 0) W4� m LM LL a� U 7 O CD cq n y U) C. c cn a C/) L o L s a� L LL 0 D Z LU LU 2 FM 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). 0 c �0 R1 M "o = C (1) a) C: (SS Q) X IC v N i 0 C: mcoo .�0) c cu c�ZLL C M 4 O p U -0 O c�a.o c,C E c L E � a r. °) Coco 0 "D U) -0 n O 0 U a) Q +, N O O o ;[ V •1) CL L 5 o � a) a) a) U .0 a) N U' LL Q p O ? > -0 a) cu L Q _0 (n O U co �- Q co cu a) 0 � N >+� %< � �) - m cyua-0 N (u .� 1 O a) c O Q Q � rnoa� %< D a) D vJ cQ O >> - > to > LLI m y =, O a � c 0 cu '= C) -a� � O a) c� c O 0 0 E '� M U cts a) a) a) V �4 c a C E L O= Q d _ O co c+rC O N U U n E " v E o (n L yr v 0 Q cfl a) _ p O O O p Q j !} Q0.UU N cu QQ aSe� U) u0i N Q N �vQ CO L L Q p N C (cu 4 N >,,_ U U) O m c O p CU 0 0 d (n O "S a) L a) .F- O O a) c Cd L c (D > O U Q r- O c N Q) > 0 U Q C O a) c cu > 0 U a-- C cLu 0 Q L Q a) �N _7 c (u L O _0 a)-0a) -0 E L O 0 E fLa L O _0 m 0 E U' a) tuc °)� 0 0 ECEcE� 0 0 0 0 EWEa)Ew 0 a) a) 0 O L � U 'O N U 'O t U '0 - N E C - c- -E - a) �- a) Oc �- a) Oc U3 U E > E C: Q ca N c ( (`0 O a• a) N N cn O U) L) C7 - CD - _0 co a) o U) E L E E C) LO CD O ti O O e» o 0 ul- t O O E �i (O LO M N N U "o U b4 a) 09, Ei? .0 c (n a) O O N 00 (� N U o O O LO O O O O O O O O O ON O O O C N- � (NO Efl a00 EA 00 � ti (A (f3 M M 64 � c- O (� jU CD c O O O O C) O O Q C m M (fl 0 co U N O LO by Ln M (» ems- � c c c Q • C U >' O (n .(n U a) >, O C O c Y U U c 4) T O Q ";Zr O Q O Q •(u O a) Q • �UCCo O c O 00 a?cu� c 0 +� 0 O .M EvUOi J m N��cvEE� O N c c v) a) J O UF-I- E a) U) C) O O O C) < O F- C O Ye LL L 0-t-- -UYU2U O O L F- a C W 0 U (0 3 m D N d y c N O N C U W Z vC- O C ] L C L' O N O a) V N N"" C RSA V U Ocp C fn la) ) C C O a) Q Q p C CYO a) C C Q Q O c.� CNco pcv�OQ pa a) O O ON Q C a.,, d a) a a) 0 E Q� U U L) 2) M a) a C m Q 0 r- -0 to >� Q 0 O) -o a Q O m %Z a) a) Q + 0 O '+J a) n •U a O L C a O O N N n _r_ a) L C - C O O .O a) E a) L U) .0 M +'C• U C U 7 (� O N O C N '� O N U D C O �.Q p -C N O m E N C C C L C C C U a U- V 7 C E 7 •C .L U o a O m O L 7 i Q a) O L ,- C U O p O N m (DLO U C.� O_ -p N OL N C O O > U- OL a a) Q _C 0 � •N N Q C- C a) > U OL >(h x O 0 LO a) O O (� (CO CL_ L .F O. C~ Lp) N a) Q L C. 0 (D a 0 0 CL a) U y O N Do- p L U p C a) C- 0 r DER O U C (6 C p N p N a) C a C (B C p p (D U i (n >- L N O N QC O'L O (0 (� C O O cO N Q L _ pL M C C o N .0 C) Q C a) cn a) E a) a 7 -p (D °' a N a C -a a)a a } Q O O a) O Q m a) Cam. C � �'-' a) a C C a m O 0) N �' A N Y Eo a�i�� -LL o C O E C C M M a) 0 L E L} �O C 0 0 E L `= •} a) U) � (n m N o-C O C -C 0 c li L' C O C 3 °a 3 0 > E- 0 L 7 U C 0 C 0 QQ U C N ._ Q C p E U E C�a c>1 U C 2 C' E U) ° U C ,� � (a o C a) 'N Q) o °� C �L aa) `°aa 0 N c � a) Q L Q L (0 O a) n. cu O a) L' Q O a) p 0 0 in U a) O to C' co v= .O a) CL ) f0 (n rn O EF a) L m a) U L O p Q) rn O O U 0 L C = a) U N O .0 O- O(o x O x N Un Z� N N U C Z (n �- F- O C m Z U - a Q U a) (6 a) .� a O Y (0 N C ' N a) O N m 00 U C a) f� E 0 Oho Efl 69 EtT K} O O C C U N a) \ D EA�O 0 C EA roa O o p 0 0 o c 5-o (On o m° C N m Y a) U aa)) ° c �° (ten v Oo a) �O N C) °) U °oo O C 4) N0� 00 m d 0 O M .� a) E.L rO N ° O K) 16 O o NO N N 601 .M- C. C 2a•U > C pa C (p Y O N V Y �O C a) O o. O 1 00.E O O 64 C 1600 C f` 00 N Q 6916 O 'C ¢ N C U • Q m C Up 06 C- (n C (1)-" cn C aa)�a Q L p �p O U Q Q a-.� YEYa) Q (n c`a = U C >1 ;� oa a) �- C Q -m U) 0 in:3 C m W d JU)LL i UULL. M c a)�m�� cca a) p U C ac°a`) LL a) U) V p N M a) =3 � cn c� E Q Q - -a N d C)ca >a Z3 N c c o Q �' °�co�. vik U a) a) 8 �NNc -C c (A m aa) °? 11)) a) cc c ��•� c = c c cn ° a c o i >,.N a E E v a ° Qo 4) o Q�UUn = m y �� o o 5) z) m a E m �c ° � c co _° ° C6 Q O U) U) O C ° �' C c a) C3 .- C O) C) L C a) O 'D C) °'>'LO COQ + _ O � p a LO N p U) :3 (n :r L O N (� >`nNC —m ": E °)E U >` o��.� M o6E L 0 mw ° a O Q" a) 'E C C� C m> fn p 0 0 0 J- N O C" O C a -p (n U) N c` N 'O C O Q C -a- c0 O O M U �J ` a) L > a) °E3a)'cE cc) cm c: in - L . fn N O a) C O U O rr a) C O a) O p-0 a) a)� C p ,_ p p C p uj � .` O •.� co _ rr L 0 4- a) N O> 0 (n a) 0 C C O N +� (n N O �n fa N O p +J -p > j C c69 cn+ - -..c U.� C C C O O (6 K3 to C U) N O O 0— c a) C j Q c O U -E O a) O a) E c' to E`a)C) E o •N`V)°)L 0,oa) LE ° y`° c CL 3 ° c ro� 'v ° 0)c— rno 0- o.= o c tea) rn6 0)0 O m °) (D U U U O U n O in � U o cv c` (n O W o E a) a) O C LL U H O C .�- U .� N .� in U m `�° `L° O U) C) U C a) ..O fn ' N N O Y O is a) C (�ENEO� O N 6 (o•= U f� E U O O C O U O p c — C O M B C ti O O N N \ O C cts ° C c U) i E n c v C Y N "= p m C O ) ` O C O O m a) O O V — V � O .� a) "O a) O U C O U 7 a) L 00 O C 6-p O —O�OCD N\ O O E{} 6 NOp cUN0C) NV0) o �O'm��0 CD O ti E• L O � O O EA O > c3 :3 a) NY �"_ r- . ri r- o C) Q U C CO N N Q 6q ti �61), U Q CL Q Q Y Q Y .O �"_.- O y m i c� a � co � LL ,� rQ- M ( U) Q) (o t am o 0- iii �� yea" U N M N ' C w s 'V O C U .L C� M C N O Rf Q C V (iS L C C Q O U) i_ � QF >,.N a E m 12 O a co (v QC Q0 a) a1) 4j >,.N O a) QCN N O Q U U aD E QE �a Q O N (ten o Y y Q V V Q Q O M N Q "- O .tn N O N a) .c T N (n p (0 W N O rn U) C � 4— C _ O C N (n ' (n 'C O a) O , Q O Op (n C C 0� C N C a) C c -p M 0) 3 0 -p > C m 'O (n 0 (u L m O E N 'c a) C C 3 (0 a) (n N O (0 U O \° 0 0 m c) o O c a) O U N `o o c a E( QE a) � �' S �� c� o Eco a) F °o ;E c °'3�u�i °U a`�iU �� °a W (n t �U �� a(A a ��— c c �� c=Q `s - co �'� c °c 0 0 `o c70 o N a) E x o o c Uci �L °a" o f >,+ U a) o oN c O° E 3 c: a) ° LO U N N 0° LL N ¢j, � U)i O a) c c a) cn a (Eo E 0° c c 0) c (n � o a) � a) (V a) (v c ° >, o c a) Co m � ? c) a) o m m� =5 E-co � o � o) H 6 cn a) o cm O U C O a) (0 C a Y _ 0. >' (d U '� C `) ° (0 (0 a) U r O n C to n' n- U N N +N' D N_r E N N N C oO L= � U L m ,� p E p 3 a > a) O � -O O C a 64 a) O m o C� O .0 7 •O -'Z ~ M 7 •� (n -Y L 0 CL U 3 0 a) E N N O E N C U a) O U O N' LL O C (6 < a) C E O 'O O O (n �@-0 @ O m O O a) 3 O c0 (n C O C ° C-0 a) a) m N N ° c� >-0 O O O a a) 0) m r-- n > (nn U O ° U� �,N a) c i =- a°i m mY a`°i� c �uoino o> oLO 3 °o o °) o Imo c mcmo - OC) a�icaoa)o(oaa))°a°iU) C Q m LL (0 U (n .0 3 .� 3 a) (A N 3 > (n o- M O_ N N a ° ° N a) 0 a) (n E a) 0 E 0 CD U a) a) d N U C) U C N N ' U I� E c E O O N -O Ln O C O O N C �- N O N � � ( r N 6" L6 n N —61) a) C N a) crj (� N C �� O (n 00 `) U o (n O O U O C a U) c C m O O Y N O O I� (D C:) o 04 6q \° o O o O m00 o EflO C:) o N Ln 6 N C �_ U (� O C � N C) O N O V Y N O O ° U 00 LO 69 000 r r O Ln N Q Q�,L I c= U) U Q °�c6SE (6 _ �(co m Q— Q a) -0 �0C)Ea, 0 a) ° E� a) > N �U) O C .0 O 2LLYUa O O 2Z — 2Li c U c W G U N Q) ��. z� U n 3 LL U Z Q N C O _min c 0 1 y "' OQ O� (0 i c mQ N to O L U) U) O .0 (B ,_,, 0) O E Q 0 0 �' U o� = a) 7 0 vU-- c d ` 0-0 cif Q- C Q Q�UU a`OQ mV% U aa)) 0 U a- (0 00 U O O C 00 p) 0) cif N L + 0 U (n ai U fa U) O O a) Q a) O U O N (1) M O c O c a) Q) o cn Q N U) O c �-a a� mo ac) � �•I) 3 C � p 070 m� c c0� — 0- ZS (n N U cn O O a) c � = c (� a) ,cn 0 a) Q v-,, O -Q ;�, 'V U O C LO ' `O (v N O N� Q Q C Q +`. C Ca ~U}- — C a) m (B uU o °U '3 °� °cam O _ O rn� fn c c'o �'o .-. to (6 \ L O O)> E U O of a) NN�'v°)cti�'acicn(an caNQ> a) (0 .N �? c c c c N C •� N M OL c'o C �03���°�rnN� a) O 7 °O .� O cccoa�i c U N iT (0 m t O 'N N O> Q Q > .� Q m (n i) c U U > U) Lu O` O c U) Co O a) a) o o N cr tOn > c O (p N a) M OL O O L N O 2 N Q 00 f` p� N (D U � O� U p O Q> cn O m > Yo U a) a).M (D U) N•� oO O M O O N c a N� — c (00'tN - C -c C' .� Cj (f? «� r a � `� o cn C C E U Rf O N N c Q U O E O c Q �� a) N E N (u � a) U~ 0) a) U N a c E O a) c 64 �- (p D m O C +—� Q (6 O cn� EN N C rn N m p C O (0 Q) O 0— O O U N E U .c E U O O >O E c E :) c L Y --. c O N a) C O O Q C > °p 0 c 0 0' cn N C N E CL a) ° oZ° �� > 3 Q Q o O Q) cn U -o N 0 N(n (7-0 � 0 0 c` m E m u) a) O ° ���° °'cco o� (D c N a) m M p O c c c�oc�aeoa���cN� (A aa) �c��(n_o�oUCnro (A (A cfT U Y 0 D (0 N V v0- �c °oNEac°i°)� °oS F (0 N + > O N .� 0) (0 >'(a� I— OU E .E c° _0 (n c M� a) Np L a a) u) c cn m M(n (A E a� oO " E� a) U E U O C (D a) U m (, U (0 0 U O O U f- E U O O C 0vy00 O O 00 c —64L00 (n O c 0 aN O I c EA N N 613 M N v� N > v� O N N c (� a) U 00000 M O U a) O .� U c C) N U c U) U U Y 0~0 O .c U (,j0L c N p a) ° U C\l c O U) cy N� �°• 0 dN 61), o LO 00 o 6") o Od c Q N O •V (D > U) p U .Y m p .E O O c O N '— O U -Y N O .E N 00 o0 0 QU64 O c 0 0 00 V) C'! OD " °° m°_° (A O N N ¢ (fl M �t C v cn U) c O �OmEcu c o � rn c _ 0 a ' c a >(D Q Q o o co L �= O U•com(n L O < a N �� a� C N Q N > ,c Y�U m Q�YQU = Y� k (n % [ g [3� ��k � aQ .0 o E 525E 0 0 0 o < ±UU .g k \_ §n0-00 o m \ $ (D s ) 0 cu £ c: U) C : -Fu c 0 � § § o == = =o \O�q \� a2(n\� _® /\ / /§ \\. /7 /. co-_0 cot ® E O -o E 0 f_ § a � E /§k% / /$E $ o&ecg m 0 7 R\ CD 27 o / \ < / §& 72222 2 E e [ q LO / \ k0 -§2 LO q ƒ// % S2 R2) =3 % o p o 04 ¥ c C) C) CD 6q y / �¢ \/ E&o2 $ qC� < \ CL E \ k :3m CL k \ƒ F- 0 RJR R 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 E �c � O O � N bA O� r--I C) LO rn O N CY) 7- T- N r-- O �- LC) r- O O N N 00 ti O O N W CD N N LO r- I` O M O O O � N N CO 00 N O O N LO N O r O O I` O O N N CO N ti O co O cc) M f` O Il- N = N N N ti co O O N r LO d') LO �- N 000 co M 0 CD am LO N Ln O o c c O O N Ca 0 .� 0 =U 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