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HomeMy WebLinkAboutFin & Corp Svcs - 2007-12-10 SSPECIAL FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 10, 2007 CITY OF KITCHENER The Finance and Corporate Services Committee met this date to consider the Capital Budget and Forecast for Year 2008-2017, commencing at 10:10 a.m. Present: Councillor B. Vrbanovic, Chair Mayor C. Zehr and Councillors J. Smola, G. Lorentz, J. Gazzola, K. Galloway and C. Weylie. Staff: C. Ladd, Chief Administrative Officer P. Houston, General Manager, Financial Services & City Treasurer T. Speck, General Manager, Corporate Services A. Pappert, General Manager, Community Services R. Gosse, Director of Legislated Services & City Clerk D. Chapman, Director of Financial Planning & Reporting J. Witmer, Director of Building and Environmental Remediation J. Willmer, Director of Planning R. Regier, Executive Director of Economic Development K. Baulk, Director of Enterprise G. Murphy, Director of Engineering D. Paterson, Director of Human Resources M. Grummett, Director of Information Technology J. McBride, Director of Transportation Planning H. Gross, Director of Project Administration & Economic Investment M. May, Director of Communications/Marketing S. Adams, Director of Community & Corporate Planning D. Keehn, Director of Aquatics & Athletics M. Hildebrand, Director of Community Programs M. Selling, Acting Director of Building /Acting Chief Building Official G. Hummel, Interim Director of Operations T. Beckett, Fire Chief D. Chapman, Manager of Special Events C. Bluhm, Urban Investment Advisor C. Collins, Marketing Communication Associate C. Goodeve, Committee Administrator The purpose of this special meeting was to discuss the proposed Capital Budget and 10-Year Capital Forecast 2008-2017. In this regard the Committee was in receipt of Financial Services Department report FIN-07-120 dated November 14, 2007, attached to which were the line by line listing of all projects in the Capital Forecast by Department /Division, and a list showing all of the changes to the original Forecast that are being recommended by the Administrative Review Committee. 1. CAPITAL BUDGET AND FORECAST 200$-2017 Ms. P. Houston introduced the 10-Year Capital Forecast (2008-2017) advising that the Forecast includes adjustments recommended by the Administrative Review Committee and that the list of adjustments is attached to the proposed Forecast. Ms. Houston reviewed the list of capital priorities as defined by the 2004 public process and the list of capital funding sources. She noted that the public process to establish new priorities would most likely occur within the next few years. She stated that as per the Capital Policy the impact to the taxpayer each year cannot be greater than the 3% rate of inflation, with increases and debt charges limited to the rate of assessment growth. Further, increases in debt charges and Capital out of Current (C/C) are limited to the rate of assessment growth plus inflation and specific projects to be funded by debt must be approved by Council before the debt is issued. Mr. D. Chapman reviewed the Gas Capital Investment Reserve Fund projection, Hydro Capital Investment Reserve Fund projection and the 2007 General City Capital Closeouts. He noted that the ending balance of the closeouts is estimated at $437,743., which will be transferred to the Capital Contingency Reserve. He then reviewed the proposed changes in the Economic Development Investment Fund (EDIF) projection, relative to the version approved by Council during the 2007 budget process. He advised that the timing of Special Capital Levy cash flows has been adjusted to reflect revised assumptions based on current information and conditions (e.g., interest rates on long-term debt), noting that staff will bring forward options with respect to the EDIF tax levy projection for Council consideration as part of the operating budget discussion on January 14, 2008. He outlined that the interest income earned to the end of 2006 was SPECIAL FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 10, 2007 - 1$6 - CITY OF KITCHENER 1. CAPITAL BUDGET AND FORECAST 200$-2017 tCONT'D) adjusted to actual and future amounts were adjusted to calculate interest income/expense using a rate of 4%, the previous version used 3%. Mr. Chapman then highlighted the following changes to the EDIF projections: the cost of the Centre Block land repayment was increased substantially. Previously, the amount represented the current value of the lands however this was revised to take into account the projected interest expense on the lands until fully paid. Centre Block website costs for 2008 and 2009 have been removed, under the assumption the costs were no longer needed. However, if further funding is required, it can be taken from the Communications amount that has been set aside in 2008. Mr. Chapman pointed out that Downtown streetscape funding was increased to $4.32M over the 10 year program, from $3.3M as originally contemplated when EDIF was first established. He added that the format of the report has been amended to show the uncommitted projects amounts as part of the regular body of the report so that they are included in the bottom line projection. Mr. D. Chapman advised that the Ontario Municipal Board (OMB) appeal of the 2004 Development Charges (DC) by-law has been decided and the Capital Forecast has been adjusted accordingly. He stated that pursuant to legislative requirements, the City's is required to adopt a new DC by-law by 2009, noting that the review of the existing by-law is scheduled to start in the summer of 2008. He added that the OMB appeal set out the process and methodology for this review. He further advised that the proposed timing and projected costs of growth-related projects is forecast to result in deficits in the DC Reserve Fund. While these deficits are projected to occur only between 2009 and 2013, they would result in the need to borrow within the Reserve Fund unless projects are deferred. He outlined that to fund a deficit the City would issue debt within the Reserve Fund either through internal borrowing or a Regional debenture issue. He noted that traditionally incurring a deficit in the Reserve Fund has been avoided because of the uncertainty inherent in the growth forecast. Councillor J. Gazzola inquired if it would be possible to have the new DC by-law in place in 2008 as a means of reducing the projected deficits. Mr. Chapman advised that the City does not have the capacity to increase DC fees in response to deficits, noting that the greatest flexibility the City has relates to the scheduling of works. He outlined that a number of the objectives of the DC by-law review are directly tied into the growth management strategy currently being developed by staff. Accordingly, staff are recommending that the deadline for the review of debt, refund and scheduling policies, as they relate to projects funded with development charges revenue, be extended by one year to align it with the development of the growth management strategy. He noted that as no overall deficit is projected within the DC Reserve Fund for 2008, there is no requirement to provide for debt financing in the current budget cycle. Mr. D. Chapman stated that the 2008-2017 Capital Forecast is currently in a balanced position, which means that there is no shortfall of funding over the ten-year time horizon. In addition, all new projects and increases in excess of $50,000. have been referred to the Forecast by a previous resolution of Council. He added that while it is balanced, no surplus is projected until 2014 which could present a challenge if new projects are added within the first 6 years of the Forecast, noting that the Forecast will need to be re-adjusted once the Regional road program has been finalized. He added that amounts for the following projects are not currently reflected in Capital Forecast: • parking garages /interim solutions; • development of outdoor components of South Kitchener Park; and, • Williamsburg Cemetery development. Ms. A. Pappert advised that regarding the development of the outdoor park components, a needs assessment will be conducted in 2008 and staff anticipate reporting back on this item in 2009. Regarding the Williamsburg Cemetery item, Mayor C. Zehr stated that while the City must meet certain statutory requirements for running a cemetery, he inquired if it would be possible to operate Williamsburg Cemetery on more of an enterprise basis and was advised that would be determined as part of the project review scheduled for late 2008. KING STREET MASTER PLAN BUSINESS CASE The Committee considered Development and Technical Services Department report DTS-07- 188, dated November 27, 2007 regarding the King Street Master Plan Business Case. In addition, the Committee was in receipt this date of a memorandum from Mr. C. Bluhm SPECIAL FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 10, 2007 - 1$7 - CITY OF KITCHENER 1. CAPITAL BUDGET AND FORECAST 200$-2017 tCONT'D) containing a revised recommendation to replace the recommendation contained in Report DTS- 07-188. On behalf of the Project Team, Messrs. R. Regier, C. Bluhm, D. Chapman, and Ms. C. Collins as well as Mr. Don Drackley, Project Manager, IBI Group, presented the King Street Master Plan Business Case, which they advised confirms that an investment in a high quality streetscape would help to leverage further Downtown economic growth, providing numerous community benefits, and could encourage high quality design of private-sector facades, storefronts and developments. Mr. Bluhm stated that to achieve these objectives, the Business Case recommends the use of $5.2M of capital funding for the streetscape improvements and public art. He noted that this figure was arrived at by analyzing the following four possible cost options: Option 1 tBasic): ~$3.9M -includes flexible parking design, new street trees, planter beds, bollards, new sidewalk furnishings; excludes any decorative sidewalk treatments (basic concrete with no banding, paving stones, etc.), no high quality curbs, no new street lights, no accent lighting; Option 2 tTypical): ~$4.7M -includes flexible parking design, new street trees, planter beds, bollards, new sidewalk furnishings, coloured concrete with banding, new street lights; excludes any high quality sidewalk treatments such as paving stones, no high quality curbs, no accent lighting; Option 3 tRecommended): ~$5.2M -includes flexible parking design, new street trees, planter beds, bollards, new sidewalk furnishings, the use of paving stones in decorative flex zones, high quality curbs, new street lights, accent lighting; excludes any decorative sidewalk treatments (basic concrete with no banding, paving stones, etc.), no new street lights or accent lighting; and, Option 4 tFull): ~$5.9M -includes everything in Option 3, plus a higher quality treatment adjacent to Civic Square (full use of paving stones), new hydrants, fully serviced special event pads. Mr. C. Bluhm advised that the Project Team has determined that Option 3 provides the best and most feasible option for maximizing potential economic and community benefits. He stated that to accommodate the increased streetscape budget, as well as an accelerated construction schedule, EDIF funds would need to be adjusted as follows: currently, $1 M has been allocated per year in 2008, 2009 and 2010; however, the proposed plan would require $2.82M in 2008, $1.01 M in 2009 and $0 in 2010. Additionally, the uncommitted employment lands allocation would need to be reduced by $1 M in 2013, which includes $830,000. to the King Street budget and $170,000. of lost interest /expense impacts. In response to questions, Mr. C. Bluhm advised that Kitchener residents have been generally dissatisfied with the overall appearance and quality of the Downtown since the 1960s. He stated that in the last several years, the City has taken numerous steps to improve the Downtown and collectively, these steps have laid the foundation on which the City can build its future. He added that the current strategy is intended to integrate these steps into a comprehensive plan that can serve long into the future, noting that improving the physical appearance of King Street is a key part to revitalizing this community. He stated that the Master Plan allows Kitchener, as a community, to better dictate what the King Street 10 years from now should be, rather than have the marketplace dictate King Street's future. He noted that weather permitting, construction on Stage 1, College Street to Gaukel Street (City Hall), is anticipated to commence in late March 2008. Councillor C. Weylie suggested that staff investigate the possibility of providing temporary over night washrooms as part of the King Street redesign and examine how other municipalities have accommodated this need. In response to further question, Ms. S. Adams advised that staff are currently pursuing a number of the initiatives that came out of the "creating a culture of safety" symposium, including alternatives for youths, and anticipate presenting a report on these initiatives in January 2008. Mr. D. Drackley stated that discussions have been held with the KDBA regarding maintenance SPECIAL FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 10, 2007 - 1$$ - CITY OF KITCHENER 1. CAPITAL BUDGET AND FORECAST 200$-2017 tCONT'D) responsibilities and an agreement will need to be reached concerning basic day-to-day maintenance of King Street. Mr. C. Bluhm advised that staff are currently reviewing the operational service levels for King Street, stating that it is unclear at this time what the exact additional maintenance costs will be as a result of this project. He added that while this project would impact several different City Departments, it is estimated that the increased staff time can be absorbed by the current staff complement. Mr. J. Witmer noted that given the current number of projects being undertake by staff, additional personnel may be required to handle the increased time requirements related to the King Street Master Plan recommendations. Ms. C. Ladd advised that to maintain the original timeline outlined in the Business Case, pre- budget approval of this project would be required in order to complete the tendering process prior to the anticipated construction start date. Councillor B. Vrbanovic suggested that the discussions with the KDBA regarding basic day-to- day maintenance would also need to be moved up to accommodate the construction timeline. In addition, He advised that discussions will need to take place with the Oktoberfest Organizing Committee to ensure that the construction scheduled for Speakers Corner does not conflict with next year's Oktoberfest celebrations. Mr. D. Drackley noted that the timing of the Speakers Corner construction can be shifted to spring 2008 to avoid any potential conflict Mr. D. Chapman advised that the funding requirements for the King Street Master Plan can be accommodated without adversely affecting the 10-year timeline in EDIF by reducing the current allocation toward employment lands. Mayor C. Zehr requested that staff investigate alternative scenarios as to how the King Street redesign funding can be accommodated within EDIF. On motion, Councillor C. Weylie brought forward the revised staff recommendation for consideration, subject to pre-budget approval of this matter being referred to the January 7, 2008 Special Council meeting with the intent of rendering a decision prior to Budget Day on February 4, 2008. Councillor J. Gazzola advised that while he sees value in undertaking the King Street redesign it would be his preference for this project to be pursued in incremental stages; starting with Option 1 and overtime adding the components of the other options. In addition, as the KDBA would appear to be one of the largest benefactors of this project, he would like to see them make some kind of significant financial contribution. In response to questions, Councillor Gazzola suggested that the KDBA could possibly consider a 5 year special levy as a means of contributing to the King Street redesign. Several members expressed support for the King Street Master Plan Business Case, stating that typically the Downtown is the first part of the City that visitors see and therefore it should be a vibrant landscape that all people can enjoy. The following motion was Carried, on a recorded vote with Mayor C. Zehr and Councillors G. Lorentz, J. Smola, K. Galloway, B. Vrbanovic and C. Weylie voting in favour and Councillor J. Gazzola voting in opposition. On motion by Councillor C. Weylie - it was resolved: "That the following motion be approved subject to pre-budget approval at the January 7, 2008 Special Council meeting: That a flexible, pedestrian first, streetscape design for King Street and a concept recommendation for Speakers Corner, be supported, as presented on December 10, 2007; and, That the King Street Master Plan Business Case and the allocation of a $5.68M budget, which includes accelerated streetscape improvements to King Street, improvements to Speaker's Corner, a Public Art feature and an Urban Vitality Strategy, be endorsed, with funding allocated as follows: SPECIAL FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 10, 2007 - 1$9 - CITY OF KITCHENER 1. CAPITAL BUDGET AND FORECAST 200$-2017 tCONT'D) • that the draft EDIF projection for streetscape improvements be amended to $2.82M in 2008, $1.01 M in 2009 and $0 in 2010 and reduce the uncommitted employment lands allocation by $1 M in 2013; and, • that $1.5M be allocated ($500,000. per year from 2008 to 2010) from the Engineering Infrastructure Improvement Program (Roads Resurfacing) budget; and further, That staff continue with the project schedule as outlined in Appendix C of the King Street Master Plan Business Case, Staging of Construction and extend the limits of construction on King Street in 2008 from College Street to Frederick / Benton Street, including Speakers Corner." CENTRE IN THE SQUARE Councillor J. Gazzola pointed out that in last year's Capital Forecast there was a second line item with the source of funding coming from Other, but that it does not appear in this year's Forecast. Mr. D. Chapman advised this line item was removed in order to be consistent with the rest of the budget. Councillor Gazzola suggested it would be helpful that if it is not to be shown in the Forecast, the information be added in the Notes section of the Budget. KITCHENER PUBLIC LIBRARY Mayor C. Zehr pointed out that the Accessibility Fund does not show any expenses for the first 5 years. Ms. S. Lewis explained that the Accessibility Fund has been established based upon the Provincial Accessibility Guidelines and the recently completed accessibility audit. Ms. Lewis advised that the Provincial guidelines are in various stages of completion with some yet to start. In regard to the facility audit all the items that need to be addressed in the short term are minor in nature and can be accomplished through the operating budget and larger items will be addressed starting in 2013. Councillor J. Gazzola raised concern regarding the Radio Frequency Technology and the additional $450,000. that has been added from last year. Ms. Lewis explained that a business case on the 2"d phase which would implement self-check in of materials has been approved. Councillor Gazzola advised that he would not support the Radio Frequency Technology project as there has been no information provided on the benefits of moving forward with this initiative. The meeting then recessed at 12:29 p.m. and reconvened at 1:21 p.m. chaired by Councillor B. Vrbanovic with all members present. ACCELERATED INFRASTRUCTURE RENEWAL PROGRAM PROGESS REPORT The Committee was in receipt of Development and Technical Services Department report DTS- 07-156 dated November 27, 2007, regarding the Accelerated Infrastructure Renewal Program. Mr. G. Murphy explained that in 2004, the City began to implement the Accelerated Infrastructure Renewal Program to replace its aging watermains, sewers and roads. At that time it was estimated that approximately $1.5B over a 60 year period would be required just to replace the current and aging infrastructure. The program targeted the replacement of linear infrastructure that is greater than 80 years old by 2032, which would require an increase of the then current replacement rate of 2.67 km annually to a rate of 8.67 km. He explained to achieve this target, significant rate increases were projected based on a formula portioning reconstruction cost between water /sewer rates and the tax base. The staged approach was approved with respect to the rate adjustments with 2004 and 2005 having larger rate increases and future rate increases were to be inflationary. Mr. G. Murphy advised that staff have completed a review of the program, the results of which are contained in the staff report and focuses on three areas of concern: achievement of targets; operational constraints; and, funding mechanisms. Mr. Murphy advised the Committee that the annual replacement rate has not been achieved in part due to unforeseen construction unit cost increases. The actual unit cost for utility replacement and reconstruction projects has increased from $1,800. to $3,639. per meter or a 102% increase over the original cost estimates. Further, only 40% of the annual target or 3.45 km instead of 8.67 km has been achieved. Coupled with SPECIAL FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 10, 2007 - 190 - CITY OF KITCHENER 1. CAPITAL BUDGET AND FORECAST 200$-2017 tCONT'D) these unforeseen cost increases project complexity has increased due to changes in environmental regulations which highlight the necessity of more effective infrastructure asset program planning. In regard to operational constraints, Mr. G. Murphy advised that the Engineering Services Division is constrained to implement not only the current workplan but any future expansion of it. In response, an engineering audit and a business process review has been initiated with the focus on effective planning, risk mitigation, cost control and project management. In regard to funding mechanisms, Mr. Murphy advised that taking what he has reported into consideration, the required combined rate increase for 2008-2011 in order to meet the program's target is 12.5%. Beyond that, the rate increase is calculated to be between 3.8% - 5.5% for the remainder of the program. Mr. Murphy advised that based on the information received, it would appear that other comparable municipalities including the City of Waterloo are projecting similar rate increases for 2008. Mayor C. Zehr asked if the projected Regional water rates have been factored in. Mr. D. Chapman advised that they have and that the Region has projected 14.9% and 9.9% until 2013 and then a 9.9% and 6.9% thereafter. Mayor Zehr asked that other than funding, what other factors are impeding the City from meeting its targets. Mr. G. Murphy responded that resources are strained but its not just about the number of bodies but about the manner of utilizing staff resources. He added that time should be spent to look at other new technological options that could make the process more efficient. Councillor J. Gazzola asked what factors contributed to the estimate being off 102%. Mr. Murphy replied that a large increase in commodities and in particular petroleum, the contamination of soils including salt contamination and supply and demand; finding contractors that will undertake the work at a reasonable cost. Councillor Gazzola asked if applying the gas tax revenue would help alleviate the funding problem. Ms. P. Houston advised that in 2004 when the program was setup, it was anticipated the City would be receiving a gas tax and it was factored into the funding portion of the program. Mr. G. Murphy advised that staff will revise the model and program implementation and will report back to Council in 2008. FCM PROPOSAL - EQUIVALENT OF ONE CENT OF GST FOR CANADIAN MUNICIPALITIES The Committee was in receipt of Chief Administrator's Office report CAO-07-062 dated December 5, 2007, regarding a proposal from the Federation of Canadian Municipalities (FCM) to have the Federal government provide Canadian municipalities with the equivalent of one cent of the GST on an annual basis to help fund important municipal services. Mayor C. Zehr advised that although the Federal government has taken steps over the last few years to assist municipalities with funding, municipalities are still in desperate need of funding for vital projects including revitalization of the aging infrastructure. Mayor Zehr pointed out that 80% of the Canadian population resides in urban centres and yet only 8% of all taxes collected goes to municipalities. He also pointed out that the resolution being proposed by FCM is requesting the equivalent of one cent of the GST be provided on an annual basis for all municipalities. Councillor J. Gazzola pointed out that should the Federal government agree, they could raise other taxes in order to make up the expenditure and perhaps the resolution should require that they don't proceed in this direction. Councillor B. Vrbanovic advised that was discussed at FCM but it was agreed it was not the municipalities place to tell the Federal government how to manage its budgets. The following motion was Carried unanimously on a recorded vote. On motion by Mayor C. Zehr - it was resolved: "WHEREAS Canadian municipalities play a vital role in: (1) promoting the quality of life and health of our citizens, (2) strengthening our national economy, and (3) protecting our global environment; and, SPECIAL FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 10, 2007 - 191 - CITY OF KITCHENER 1. CAPITAL BUDGET AND FORECAST 200$-2017 tCONT'D) WHEREAS Canadian municipalities have doubled their share of infrastructure costs over the past 50 years while the federal government's share has shrunk to less than half without providing adequate funding to cities to help them fund this costly shift in responsibilities; and, WHEREAS the municipal infrastructure deficit is estimated to have grown to $123B just to replace current and aging infrastructure, such as water and waste water systems; transportation systems; transit, solid-waste management, and community, recreational, cultural and social infrastructure; and, WHEREAS municipalities currently receive only 8 cents of every tax dollar paid by Canadians, our cities are home to over 80% of the country's population, and they provide the services residents use on a day-to-day basis more than those of the federal and provincial governments; and, WHEREAS Cities are the economic engines of the Canadian economy and investments in municipalities by the federal government will serve to strengthen the national economy, thereby growing its own revenues; and, WHEREAS the federal government has enjoyed tens of billions of dollars in budgetary surpluses over the past ten years ($13.8B in 2006-07 alone) and it is forecast to continue to produce surpluses in the future; and, WHEREAS Canadian municipalities require a reliable and dedicated source of revenue that grows with the economy to significantly reduce the need for ongoing and unsustainable increases to property taxes, user fees and, water and sewer rates; BE IT RESOLVED that Kitchener City Council endorses the proposal of the Federation of Canadian Municipalities and calls on the federal government to provide Canadian municipalities with the equivalent of one cent of the GST on an annual basis to help them fund important municipal services and infrastructure to a growing population; and, That City Council directs the Mayor to write the Prime Minister, the Minister of Finance, and the Minister of Transport, Infrastructure and Communities to provide them with a copy of Council's motion and to request the federal government provides Canadian municipalities with the equivalent of one cent of the GST; and, That City Council directs the Mayor to provide a copy of his letter to the Prime Minister to the Federation of Canadian Municipalities (FCM), the Association of Ontario Municipalities (AMO) and all Members of Parliament from within the Region of Waterloo; and further, That City Council directs the Mayor to write the heads of Council for all municipalities and townships within the Region of Waterloo to provide them with a copy of Council's motion, to encourage them to pass similar motions, and to share those motions with the Prime Minister, the Minister of Finance, and the Minister of Transport, Infrastructure and Communities, all local Members of Parliament, FCM and AMO." The Committee then proceeded with a department by department review of the Capital Forecast and comments were advanced with respect to the following: FINANCIAL SERVICES Councillor J. Gazzola pointed out that the mailing /stuffing equipment project has increased over last year. Ms. P. Houston advised that a report was brought forward for Council and pointed out that the tax system is the billing system which is different than the recently approved Delta Project. CORPORATE SERVICES Councillor J. Gazzola pointed out that the Consolidated Maintenance Facility project is showing SPECIAL FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 10, 2007 - 192 - CITY OF KITCHENER 1. CAPITAL BUDGET AND FORECAST 200$-2017 tCONT'D) approximately $32M and questioned where the remaining funding is being reported. Mr. D. Chapman advised that there is funding from previous years as well as the projected land sales which are not shown. He added that this will be updated for the final budget. Councillor K. Galloway questioned why the Homer Watson House maintenance project is so high for 2008 and then rather consistent for the rest of the 10-year Forecast. Mr. L. Proulx advised that 2008 is the second year for significant repairs to be made to the Homer Watson House. Councillor B. Vrbanovic questioned why the community centres maintenance has such a large amount for the year 2010. Mr. Proulx advised he did not have that information but would provide it to members of the Committee. COMMUNITY SERVICES Councillor J. Gazzola raised a concern regarding the Master Plan Feasibility Studies stating that the Leisure Master Plan has been paid for, however starting in 2012, there is approximately $75,000. per year to be spent on it further. Mr. K. Baulk advised that the funding in the Capital Forecast is to implement the detailed studies as a requirement of the Master Plan. At the request of Councillor Gazzola, Mr. Baulk agreed to provide the members with more information on the Cultural Capitals of Canada project. In addition, at the request of Councillor K. Galloway, Mr. Baulk agreed to provide the members with further information on the Culture Plan II implementation and what the funding will be used for. Councillor Gazzola asked why the 100th Anniversary Project listed under General Expenses has increased from the originally projected $30,000. to $180.000. Mr. Baulk advised that since the original proposal staff has had an opportunity to examine budgets from other municipalities and have made adjustments to what is projected as being an actual expenditure. Several members raised questions regarding the installation of GPS monitoring equipment within all City vehicles. Mr. G. Hummel agreed to provide a report prior to the February 4, 2008 Budget Day outlining the GPS technology currently in place and information regarding the various technology that could be installed to provide real time tracking of the work undertaken by a specific vehicle. Mayor C. Zehr expressed concern that no money has been specifically earmarked toward the implementation of the initiatives that will arise from the update of the Strategic Plan for the Environment and was advised that those initiatives could potentially be accommodated through either LEAF (Local Environmental Action Fund) or by re-prioritizing some of the projects in the Capital Forecast to reflect the objectives of the Strategic Plan. Councillor K. Galloway requested that a list be provided of all of the parks scheduled to receive new playground equipment. In addition, she inquired as to why the construction of the Skateboard Park at McLennan Park has been scheduled for 2015, when locations have yet to be identified for the skateboard parks earmarked for construction in 2010. Mr. G. Hummel advised that the timing of the McLennan Skateboard Park was set to coincide with Phase 4 of the McLennan Park reconstruction project, noting that as funding has already been earmarked within the Forecast the installation of the Skateboard Park could be moved up. In regards to the City's park construction backlog, Mayor C. Zehr suggested that as a means of addressing the backlog, developers could be required to provide complete parks in the initial phase of their development process, without receiving development charge credits, to enable City staff to focus on the 27 parks that have yet to be constructed. Councillor J. Gazzola questioned why funding no longer appears in the Forecast for the Rockway Golf Course Master Plan and was advised that it was removed as it was determined that it would be preferable to have specific projects come forward on a case by case basis. DEVELOPMENT AND TECHNICAL SERVICES In response to questions regarding the planning studies item, Mr. J. Willmer advised that this is not necessarily a new item, as it is the combination of several line items previously listed as Municipal Plan reviews. Mayor C. Zehr questioned why the funding amount for the first 3 years of the environmental remediation item are identical and was advised that funding has been set- aside in those years as a pre-emptive measure as there are several sites under investigation. SPECIAL FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 10, 2007 - 193 - CITY OF KITCHENER 1. CAPITAL BUDGET AND FORECAST 200$-2017 tCONT'D) Councillor B. Vrbanovic requested that staff provide information confirming the sanitary sewers funding includes monies for the pumping stations alarm monitoring upgrades. Mayor Zehr inquired as to why no funding has been earmarked beyond 2008 for the Victoria Park Lake and was advised that the funding earmarked thus far includes sediment and algae removal, as well as an assessment of how to solve upstream issues. Mr. G. Murphy stated that staff have yet to determine the exact costs for this project beyond 2008, but anticipate providing a report in the near future outlining the work proposed for the Lake beyond 2008. On motion By Councillor C. Weylie - it was resolved: "That the 2008-2017 Capital Forecast be approved in principle, subject to final budget deliberations on February 4, 2008; and further, That the deadline for the review of debt, refund and scheduling policies, as they relate to projects funded with development charges revenue, be extended by one year to align it with the development of the Growth Management Strategy." 2. ADJOURNMENT On motion, the meeting adjourned at 3:41 p.m. Colin Goodeve Committee Administrator