HomeMy WebLinkAboutFIN-08-012 - 2008 Final Budget DayILREPORT
Report To: Councillor Berry Vrbanovic, Chair, and Members of the Finance and
Corporate Services Committee
Date of Meeting: February 4, 2008
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: January 22, 2008
Report No.: FIN -08 -012
Subject: 2008 FINAL BUDGET DAY
RECOMMENDATION:
For discussion
BACKGROUND:
On Monday, February 4, 2008 Council will review the 2008 operating and capital budgets.
Council members are asked to bring this package and copies of previous budget presentations
to the meeting for reference.
REPORT:
Budget detail and supplementary information is contained in the following attachments:
Slide presentation
Issue Paper #2.1 —
Adult Crossing Guard — Williamsburg Public School
Issue Paper #14.1
— Energy Management Program
Issue Paper #19.1
— Addition of Junior Buyer — Purchasing Division
Issue Paper #29.1
— Investment Income
Issue Paper #31 —
Golf Rounds and Administration Expenses
Issue Paper #32 —
Gasworks Delivery Revenues and Gross Margin
Issue Paper #33 —
Water and Wastewater Rate History
Issue Paper #34 —
System Maintenance Costs
Issue Paper #35 —
Winter Control Costs
Issue Paper #36 —
Corporate Strategic Directions — Financial Management
Issue Paper #37 —
FTE Summary Information
In addition, staff will circulate responses to the questions raised by Council members on
January 21 and 22 in issue paper format prior to final budget day.
FINANCIAL IMPLICATIONS:
As detailed in the attachments to this report.
COMMUNICATIONS:
Notice of budget meetings and an invitation for public input was placed on the City website and
published in Your Kitchener and the Record. Public consultations were held in July 2007 (focus
groups) and on January 7, 2008 (public input session).
Pauline Houston, CA
General Manager of Financial
Services & City Treasurer
Dan Chapman, CA, MPA
Director of Financial Planning
& Reporting
i �,
w
H
()0
C:)
CN
ol
LM
LL
T-
■
ro�,
�iPp-
4
1
•
(6
O
m
O
cn
wima
cn
N
cr
N
LL
•
N
m
.Q
cn
N
m
C
CO
0
N
cn
N
W
•
N
m
C
Ca
i
0
N
O
X
Ca
•
cn
O
M%
U
N
O
n..L
cnL^,
W
�W/
I.J.
C
cn
C
O
O
N
�U
C
O
•
N
M
zqqq
BOB;_`
i
a
IN%am
IN%am
P*4*M
00
C:)
CD
P%kft
P%kft
C:)
p
o
�O
00
P**Ou
f�
O
C:)
O
�
'%�
cw,4
%%.,
LO
LO
LO
p.,
�
(6
O
O
C:
c
�
�
N
(n
Z
Z
(1)
D
IL
C/)
N
N
N
m
,7
0�
C/)
0 >
(.D 0
C/) C:
:3 M
U a
O
LL C/)
C/)
C:
C/)
N �
m m
C/)
cB
L
L
cn
U �
N �
L
�O
L
06
C/)
a U
U LL
c
0
C/)
C/) CU (1) U)
N +�
O
LL �
C
� U
(a �
U OLM
N
m �
� m
G
LO
o
t
co
O �
�
�
to —
cn
o
0 0
>
C
0 0
_
E ca
(n
L
o
C/)
o 0
>'
' cn
O
U
U
cn
m
cn
.—
0 cn
a)
E
0
L)
cn
C
—
M c cn
:3
■
> U
.�
•-
•U
+� p
W
L
>
U)
c�
.
4--j
C:
>
0
0
L) U
�
�
L
m
�
��
(1)
•a-
4-
O�
U
Cl)
O
M M
:3
'�
C Y)
c
O
4 a)
LL _
•�
�•
a)
—�
0
C)
4--j
L)
°
��
0>
x
L-
a) oo
m
a)
E
—
C:
._
(D
'>
0
U
a)
(n p
>
0
a
E
},
cn
a)
Cl) —
0_
—
O
+�
O
O .-.
ON
O
4)
�
to
cn
E
4—
>
�
a-
p O
'
..
U
.L
U
�
O
},
cn `~ M
p
U
—
a)
�
m
0
L.
cn
�
•-
to
�
to
�
L
Vc���
•-
�
0
>}'pC
a) LU
j
��
U�
m
(D
m
E
�.�
E
a)
m
L-
a)
E
L-
m
.�Q
a)
a)
(D
--j
4-j
0
L)
- r-
a)
>%
L-
0
-0
0
O
(n a
U)
�
L
•�
p
�
a)
0-
L)
M
c:
.�
E
L
cn
_ U
cu
cn C:
M
E
>% w
E
a)
E
L)
ca
a)
o
n
�Um��
o
c� m
C
cn�QU
O
>
cnU
O
m
>CD
M
0
0-mQ
0-
o �
Cl)
cn
�
C�
i
i
i
i
a)
I
I
I
I
I
I I
ca
cn
U
v�
Ua
� G
o � � o 0 0 0
M 07 O Cfl M �
M I` M 6 N
M
C44
c
o
�
.o
o
U
—
(n
cn
LL
O
cn
w
o
�
O
U
•
co
O
. _
�
06
—
U
'mom
norm=
O
co
. —
O
CD.
cn
'CU
m
o
ca
(�
cn
t�
L
U
C
Cy)
W
O
O
O
C:
O
O
m
O
O
O
O
CU
LL
co
=
U�_0�
W
z
�
0
re
","",
.....
.....
11
�a ..��
,, ,, , ,,
: ,.
LOOZ
I'll . ...
..... , 1 �
1,
,� � �; � �� I I
. �,
.
000
��
, �
I'�� -"" , :'' ','� .. . . �-, '-�
- ,1� ,,,,,��',� . ..... . . "':
,
- ,. ?�,:��,�,�::%,
.... �,::-i;�`,�,:" �� "
'1� -�11-�Il
90oz
LL
11 , ",
, -'l 1�
" ,,,,: , I ,� I," , ':;%,
, I
I'll, ,
- I I 11 11: "", - � "I I'', �-,', �, -:,,-�, , , ,i":� ,
,, ,,, " - :11"', � �l -': � ,`�� ,,,� �� ", , �� I � , I -": " - , - � �",: '' � - - I " � --,_-, ,,,, I , , , - , , "� �, 1:1 �, I` 1�1'11 I , �� '' � I 1:�--111��: 11 ,
"" , " 111111,�-, ''''
. .. . "I - , ''I "I'll-
I I I �� :�
-:"�, ... ,
.. �, l .., ��
11 I", "�:I, "I,"", lll�
0, ..,l� 'I,
,,
I It
-,
o
"I "'I"", , "I"', , , , , "", ,
, ", , i�:,::�
I _�_ ��, I'll ,::
.. . ..... , I ll"'111'11'':� "� . ... . ...... ,-Ili,-
,
,,� I 1� , ,,�, - �` 1��,:�
I - , :::,", �, " �' , " � ''I
:�, "',
� I'-- ,, : .... � lk
- ��-:--�I-
" - ,
, � ... .... .. .. . �
-,,�� ;-I, ," -, I
, - n
-,
" -
:�, - ", "Ill 1, I
� I 'i , , '1111��"'l I ", ",
,1:1 - "I ", -
, " 1� I--
,�:� , , -,
�� �� �":, �': "" , , �, I I i, `��'I: I
� '"' ''I -�', �:� " , -
, �, �'_:! �
"I 1� I , , - ,
� ,�', ,�, -
-:,�,:-
- "", � ,
,,:,, " ,, :�- �',",'1111,"111`%'l � "I'l'l','Ill�'ll, 11 ,,
, " :,-''Ill ,� .. . %��, '',
� " ''"
I I ... "'", ... , , - , , - - -'ll ", `-� " �, :", I , - "',
� . .... .. ,,,:,
1� , ��
�l
- ,�'': . .....
��,,,�,-- ,"'�,�, ��
I I "::�,:, , , ,, , ",
, - 11 :� �;, �
�l l
': :�� , . , , ",���� .
- : ,:�,
-
-�'-: �� ��-� , I
-�-,:
I '' �, , , , - , i ", ,;
' ..,. ,:� .. . .. .
gooz
-
4)
, ,,,,, I I'll
�'l -�,,y_ �',,,, I I'll
11, ! 1
':,,"": 1, �l lll'��:,'Ill
, - , 11 i�� �"", ,, "�, ,
"' - � 11 ,,,,,,,,,, ,,,, ,,,, - .
1, , 1 .. .
.
I, 11, - 1,.
l { (
I �' I 11, 11 J�
I "', '-, ,, .... '''''','',
I ", ,
^'
W
��
(n
m
,�,:,!, �� � �'l
, ,�; ,J�:�, , �:: I :�,
,�
, , , ",�, : , ,� " , , , 1: ,,,,:,, ,:z":, , -'-','-'�:� ... I ��,:"'-, ,
, ,
. . . . . .. , , , ,
, ", """", '', ",", � , "Ill " �
,,,',',,,',,,,,,,,' " , � .. ... : : , " lll� -,
� " ,, ��, �� " , �� ..... �,
1�11111� ''I', 1,11 , ",-,:"",:-,��:��:_" ":
, , 1�
- , , " , -
,,, �: .. , �,-,�, ,, �, ,,�, , ,',:" '""' ,11 1�
i�: ��- : " ,
"" I I �11 -,: , , "I 11
��:,,�� ",:� I ��, ,--_,,,',`
,.
,,,,,,,, , ", , : , ,I, ,!:;", , , ", "" '' I , -, " ", - "," , , �
1, 1, I , , , ,
I il�,�'Il, ll� : � "`:�:�,�, i" ,:: ,, ,� .... ��,, , , , ,
- I ,,,, I I �� " " " , �1111' I , :1� "I � , "i"'I , "
, , 11 , �,;",�, �, ,:�,:',� ::'' -
,� ,,,,,,,,,, ;,"" , " , "", �� �l , "
'' �- 11 :" ,, 11 ,,� I -
"I'l, """"
�OOZ
V♦
4)
LM
. . . . . , °........,
" ��;-:, 11:111, , , ,:�:�:�', , I'll,
" - , , ,
, , �;� --- ��, , �-,�� "�:�� I �',, , .
,� , ,,, � I "'�, ,
,� .. . ���, ..... "":,S, 11 - , ''I I � , I I I � 'I', . . . ��Illl !
,� �,,�; � : �, ,,,,: �,� "I � �-�:�:�l 'I"
� I I I'll " , - 11 . ... : I'll, ,11
- - ", """,-:'i, "i, , , """, I , , I 11 � I � "', �:�'Ill , -�i,
"'t : ,� - I �� ,� �-1 , , "' �' 11 , " , , I ,��` ,:,
1-: 11 ,. ; ,.. °,
- .... . .. : ,
,f , , , ,,, - l ,
1-11� � : : ": , � :�: , , I", , I
, , " ", -� ",
^'
W
(a)
, �,�,:::, -", 1, I I
�, i"-:", �::,��'"-"':�: � "I'll,
- I
�,, � ,"'', � ,, ,,� " I �11 - ,,,
I : , 1, -,: �l � , "� ", ",
, :,,� ,,,, , "' ,,� . . . .. .. . , , -,
" 1, I � I 1, ,
�,:::��"�,",, I ,�,:'',
,,, ,,, I "" " '' " , -
, , , , �'� , �, -:"
��,�! �:,i :�,:��,,�,,,�,�:,:, ���,:_�' � 11,4� z,�":,�:�,
- ,,,, I'll", `� ''I , -
,
,:'`--"� ,,`,,,"_',"',',� ,,-'� I I - I ,, " - - �_� " ,� ,
" " �', " ,,,, " ,, , ,,,, �:�,�, ,�,;�, ,:-��':-�',
I .......
I' , " ""��
,
L�%:��� � . .. ... . ��:
�,� ,,, I
I "
", -�
- �', � �,�,�-,:111_�:_"�,�,- '-,''''I'll'', ,� , �:,
,� r,,,�%-: ,- �, `�'l I ,,��, � I �' ,�, '' " ", ",-,, 1�
I I I 11 I �1,1 il , �,�,,�, I ��l 'I -11" ": :,,,,:,, - ,,-,,,,
�,,, - � , I ... I'll I , , ,, ,'' ,
I �1'11,1' �� �, �, """, - �'��:i��:�, , �,
- , - , , ,,, � , , -1
, 'I��, �-:,-,-:� , "', 1'' �
I'll, , ,:� ,�: ,,, � , ,
""''', -- .. . . .. 1
'',
"
U
c
��
, "' ,� .
{
, 11 1
,
. �:"
(
��
�
S
>�-
X
r ,
V
11
1
, ,
,'. °i ,
3 1 , "'
"', � I
ZOOZ
}'
x
, ,
;. ! ; ...,<
.. � ... . .. . �,,,,,,�:"',',` ", ,,�',",',', "Ill,
... .. . -:Ill:i:,�, L" I , , , ,,,,,,,, , - ...:,
�,�'l �:"_,,�,� 1
-, �1�11V-�,,��:-� , , , , � I ""I�
.
" " ", ", �� : ��:: - �, :::�� �: ",
,,, ", - ,,, ,,,, "I'll '' ,
, "'
, 1. i. `,
� , , '':�,
T;;° , 1� - I ,, ��,:,:,�,"
}" ,, .;
�, - - ''I "' "
1
m
[ f ,;
, - '': � . . , " I ; I ", ", '', , -�,:,`,�-, , I ��l ':l 1�1 11 I 1-11
, - I
---" 11 ,
� I 11 , ,� , -1. ", ,,<"
, - :'I -: � � "''I I'll"
- " , , '"' ''I I ,:�:,:,
''�
. °, i � ... . . . . �:,��'':,�,' , 1'1`,� � I
I'll
, , - ....
. . . .. �% 11 I I
�v"��, �,
gi�� "I '1� �
, I "', � ""''
1
FM
, ,1,11 ":: � ,,
,�:,�, 1, "''I',"", "I � ", � � 1�- ,?� "!'�,:� " �,,, i , ,
"��:�,:-�:, :" , " - -
11 ''I", "', 1�11 � ;,!,
',� , """',
1:�, 1'1��l -, , ", ,� '11, - ,: " '�:l ,,�� """""""', ,',,�
, .... . .. ,
I I'', "�� ,
.... . .. � ,�
, , --�,�
" �� ,,, ,� I I ':��>':,�,,'," " ��,:,:, � ,", ,, �
- ,
;1„ l ... ..
,, ,,,, "
,, ,,,, "
,, ,,,, "
�, "I""", �,
�,
-, � ... ... . "
:,:��::, �': I I'll: , ,,-:":": �%,, " 1, '-� ''�,�'', " I
, ,
,
" " , - :� .... . -� .... . I 'I'll", ,;:�� ��', -
:: . . . .. . ,::" ��:�:,� �:-':-- ,, ,,,, " �,,"I' �l
''I
Woz
�\
(n
'111��I�l ,
, %, , ,,'��, ,I , �,;,::��,� .....
- ,:, �,:" �,
, " :,�, ,:;::"",',, �1��:":
': I �11' ;,I 11 ..... �,�:: �� �:� ,,� I 111,11�1:,�,:,: -�`,
, " ,
,1� � �: , ,
�-,,::, :, ":,::::, , -, "
�', , " ,,��,::'':,
I ''," �', 1, ,,, I 11 I ,,�:�,
, " F -111, " 11
'�,,'-1 ", I ,
,� ll� I ,,:� �l; ", � 11 .... :F',
" ,
- ," �,::", �: , '' ':"'-�
i ,� ��:-,:,,:��
��:��,,',:,-, ,�-'l ,''
'':"�,
�,, :,�:�:,��,�, �' , ,} �, - I -
, ,�,
�- ,
:, ,
1'1�,
", :, , ,
�1' , ,
.... --
� -.1- I . . ..... .
,, - I - 1
��, , - 1; , �,:�
I -l;,lll'�'llZ:,:, ,. -,�]',�'':''::-":,
"I
>
, ,,,,, :, :�'�,:::,;�:,',�,,-
�- lll'�,� " �:�: ,,�:�,�,-: " ":� .... . . :; I-- 11 " ,, , "", , "
- 1111, �'Il ,,- I . .. . ''I , :,� �
, ::�,:',';�,�: , ,
" �:
I -� I , , , I
: ��, , , ,,, ,,,
I � . .... . I �11:�
, i� " "
"�� �� �-�,,,:�'111!11 , 111�1':V,�,:�?':,,�: ,,
, C } ., l , " , ",
,
":, " ,��, 11
,�,�-
��""
"�', � ...
"' , 'I"
�
I I
:�,: � -111:"", ��:, ,��:"'� 11 ....
I 11 1,
1:� .... . . . . : I , , ,,,, ",
11 I_, 11 � _-_-,1111111,1�'� ,"
11 .... �
-,,,�,:,:� . . . .. . , , "
��-'-�',,��,:,'�:� ... �,l � ,�:� , ,
"I, -:,
'':,,:,,, ,�- ''IP'lil -11 ,�,,,,,
11 I
I %I;1"
i�l "
I ��:'-- �
�� 1: ,:,,,,�,,:�', -
11 °° :'I
, �,, , 11 11 I'll 1-11�1-11��' I "I "
I ,� �, I �:� � "'i"I'l ',�,
, �:" I - ��,"�
W
a.
: 11�1�`�1�11,':',':, 11
11 ''I'll, �:�:"":�
, ,
", "
..... :, "", - :-
�':,"""""',�', llll,�' I F..
I � "I - - 11-:, �,,� - , ',',� , � 11
1� I � , ,:�:- ll�'l
", - ""I
11 -'ll �, '', -
... "'' - '::-117'11��:�, , ,, l
- , "" -
,�::,�, "" "",
I I 1� 111":'I ,,,, " -
"I'll,
000z
2
, 1, F� 11 1-1 11 ,,:,,��-
I 1111'1� "'�Il
� I I I �' I ��`,: . . . . .. �� ,"
" ,, I - ,
,��,-'Il �11�"�-�',�i::
� "I � "I 11 , : , "I I
� -:�
,�",, � ''� ,: :::, �
, '' -",:� I -:: �, �'l 11 "I - ,
I, I ",,�, I
11 �A,
,:-��::�: --,,,��
11", ""', - � ��: 1� ,",�,"''ll-,"",
, '"',
"''
, .... '1�
'�:��:,,
" ,,�',-�":,:; 11 ,,:� �, `,. � -1
,� ... I," I- - I �,� I I
,:�",:��,:'� .. . :: �:��,,,,�,� I I
11 �,�:: .° , 11
" ��',�,-,� I fi` ", -,"'"', �,�,�-:
�'-' � -�I, -
-I'l "
l`::lZ":"-
♦ ,
13
11, � I
,:,�,� .. .. .. �,�� �,: , ,: " 1,
, -, ,
,:,�::�,, ,�
, I'll, I
, , -�l �� �', "�� " 11 ��,:i,::,:,
-,"::-
�, -� .. .... .. . ,
'I, ��,_;-,�, , ,,, , -�, �,
,,,,,;":,,, "�, , I lll:�,,_� ,,,�,'� �","!: �,;-�:,��,
,,; ,
""
", ,
__�',%�',�,.--�%-, -
, , - �l ", -, �>,�1111':, I ,,,,, :�,:,,,'�'�,�,,�,::��"",-:,��,�� , �, ,"�::%�,,'�
. .. �
. .. -1 I I _�, '', ,
I I , ,
,,"�:�:::,� ,�',I;�, '', �� I -
- �-� " ,::,�,
... � ], - -
,,,��- llll'Zl�,:,�",- llll-�,I-1 " - I � 1
11 ... "I", ''I ''I
��/
r.
1� ... 4, .... . . . ..... .
�, �:, ��, , I 11 - - "', I
� � ::"n__� 1, °:;
,� 1�:-Ill � "", "I , -,,',�
:I "-:,"' � ''�, " I
I I - 1� .. ..... : ... �'�-,:" ,','�,� ��l .. .... �111::,, � 'I I I -l", , �` Ill I'll � , "', :�,-,� ,'�":',-","'-1
"", -, .... . ..
„ , , "','', ,� , "I 1:��,, �', , - I I , :,::�-
, �, ": , , 1:1, ��,:�,,�"� ,-,,�,_ -,-I,-,- :"
��: 11 "I - -,:,�
, ,�� I '-, " , .
�� °>
" " "'"ll
666 �
^'
W
cn
�
,.,
" 11 ,1 , :
op. voll
LU
0)
I�
CD
N
CD
N
1`
N4ql-
07
00
1�
O
N
1`
O
O
00
00
N
1`
U
3:
U)
�(
C
4)
to
cu
�
�
�
m
O
N
6
CD
Pl�
LO
ui
CO
ui
00
rl�
414
6
LO
O
14
07
V
._
ci
W
FM
0 },
x
2:
—
4=0
V)
m
m
O
�0)
�
r
�
m
Cl)
V
. _
N
(D
N
LO
m
O U
0�
w
=
Z
U)
a
O
O
O
a
F
O
�
�
1`
1�
N
N
N
O
1�
00
0)
�
ql*
Q
LO
CO
CD
1`
07
Ulm)
N
O
O
M
00
C/)
Q
6
4
6
ti
6
O
M
N
O
O
.
J
M
00
N
CD
LO
M
LO
N
ti
LO
O
O
LO
N
LU
N
N
U)
ti
H
O
a
0
N
._
0
1`
1�
N
N
N
O
0
CO
M
N
o
O
0
0
1`
O
O
I�
C'M
N
cle)
M
O
W
Z
.
O
00
.
44
N
.
L6
CO
.
ti�
LO
.
CM
.
44
CD
.
N
00
.
N
M
.
O�
CM
.
L
.
00
r
S
LU
00
LO
00
N
CD
qe
O
_
N
N
W)
O
V
F
O
—
M
O
60-
619�
619�
60-
619�
619�
619�
60-
60-
69-
ta
N
.•
C:
U
3:
U)
�(
C
4)
to
cu
�
�
�
m
m
CD
0
�
My
�
�
V
._
U)
FM
0 },
x
2:
—
4=0
V)
m
m
O
�0)
�
�
Cl)
V
. _
(1)
(D
m
O U
0�
w
=
Z
LM
O
O
O
a
F
O
�
�
.•
0
0 0 0 0
C6
N
N
Ca
c�
O
T11-
C6
N
N
Ca
c�
T-
C6
N
N
Ca
c�
N
C6
N
N
Ca
c�
M
C6
a-=�
N
.�
N
Ca
c�
Ci
Ca
Q
�U
00
C:) }
O Q
J „
,rf..
O
O
(35
Lf7
O
O
C5
:.
r�
O
LO
0)
tt „
00
1�za.
s
t
O
\ )
■
(3)
O
LO
O
L
O
(D
LO
t
Y•,
try'
fz
�St6:
t k`.
t.'
Mn�ll
O
4--+
c
O
w
p
4
■
=
■
t
cn
O
co
�
O
r
cn
[
i
C
U
�
(D
O
o
J
LO
Ca �
Q �
00
C:) 4
C:) C
,rf..
O
0
C5
N
o
r
07
Co
LO
I�
,f.
�a
M
M
M
N
N
F
�t
a.
t
O
O
O
M
Ln
0
07
ti
.
M
M
.
N
t x.
}
f
�St6
�F
r.'
0
0
a)
t$
t
a)
o
f
t
�
.�
.0
E
m
U
m
cn
cn
._
cn
- -
o
o
o
ca
o
�'
cn
cm
U)
C
� _
E
. -
_
_
M
o
U
oo
o
z
o
o
cn
a)
�
o
o
.0
-4-0
� a�
00
0
0
N
}
Q
Z
Q
LL
0
U)
a
w
U
U
Q
C
0
0
0
%%moo
00
00
CY)
C\j
00
CN
P**Aft
(no
vmm
C:)
C
C:)
411M
00
0
0
CY)
C:)
NC/)
ca
o
m
J
�
J
N
cn
cn
I`
N
o0
CD
cn
CD
CD
CD
Q
O
00
II
Q
V
0
0
qq 0
M
O
N
CD 60-
0
0o s
� o
� ca
L
O
r
ca E
all,
O
O
O
LO
O
w
^
O
LO
■
O
O
O
O
N
m
CD
^
O
O
O
N
w
Ltd
m
Ltd
m
O
CD
O
LO
�
N
N
41-
ti
qr�
qqi-
^ O O
N 00 00 O C'7 Lf�
00 O Ln O
O
N
M
d7
Lii
cfl
M
00
Lid
M
L!1
0
LCD
O
M
O
0
ti
M
%%moo
C:
0
U
o �
M �
cn A
(D cn cn a)
cn (D
> (n
U O
0 C: -I.-a >�
L. C:
(D LL LL
U) (D
00 Z Z LL 0 �W 0� FM FM
(3)
(3)
00
C:)
C:)
CN
0
F�m
� r
r
rjr.ma
LTff-A
O O O 0-* <0
� N O O
0) r***m O N
6 C\i O cyi
I� O r**ftm
N N �
N
(.6 � 00
LO CY) 00
w qw ra
c
0
c
o �
A.-i
— U
U � W
c
ca
U
O
(B
L
X
C/)
W
U
X
N
O
N
w qw ra
c
0
c
o �
A.-i
— U
U � W
c
ca
U
O
(B
L
X
C/)
W
U
X
N
O
N
c
ca
U
O
(B
L
X
C/)
W
U
X
N
O
N
uoilein dOd
0 0 0 0 0 0 0 0 0
w r--- M LO q- M N r-- CD
�r �f��������������������������������
-r �r ������
•
�
���, ���r /�% iii'
�
1
�� ��� ,��,rr �;r �� Sri rr,� r� r� r� r� r� r� r� ,%
•
�' r o
•
1
1
• • • • • • • • • • • • • • • • •
• • • •• •
•
►
1
•
•
•
►
1
1
►
•
1
1
Ca
C/)
N C:
C/) O � C/ )
0 O
O �
C/)
C:
�o
�o
= O
L
0
U C/) �
> C:
C/) M� m
C/)
C:
� C: O
LO C/)
L6 (1) 0
C:
w mo
N �
cn
4-0
� * o
w � U
0
O
0000� C)
C:) C/)
NO 6 (1) mo
> 0 a)
mo
N
N �
u�i � }' � LU v
O
cn C
C O
0 M
MC3
� Qc) a)
AMEJ ('U CO wl�mj C: 0
C/) co L.
0 CY) Q.
Q.
O LL mo O �
mc) 0 mo
a)
a
�
o
�
C/)
N C:
C/) O � C/ )
0 O
O �
C/)
C:
�o
�o
= O
L
0
U C/) �
> C:
C/) M� m
C/)
C:
� C: O
LO C/)
L6 (1) 0
C:
w mo
N �
cn
4-0
� * o
w � U
0
O
0000� C)
C:) C/)
NO 6 (1) mo
> 0 a)
mo
N
N �
u�i � }' � LU v
O
cn C
C O
0 M
MC3
� Qc) a)
AMEJ ('U CO wl�mj C: 0
C/) co L.
0 CY) Q.
Q.
O LL mo O �
mc) 0 mo
a)
a)
00
o e o 0
0
O
0
� I`
N
O O O O
CO
X
CO
C'7 N
.0
IT O O L()
i
�a
dm
c�
CD
a�
}
�
a
ca
C a)
•ta
U)
3 �
(6
3 �
1 �
j cn N
j .O
3 Fn U
Q)
� ca
+ O L
i (6 a)
O
i U) LL
i (1)
LL z z
� LO
00
o e o 0
0
O
0
� I`
N
O O O O
CO
CO
C'7 N
r
IT O O L()
dm
N
dm
CD
O N co O
r
r
r
Ln O
N
o 0 o a
e
r
e
N
O
ti O O O
ti
N
ti
(ND
LL
W
IT O O Ln
Im
r
CD
Im
N
O N co O
r
r
O Lf)
r
e e e e
e
N
e
OM N
N
r
ti O O O
�
O
`�
�
N
IT O O LID
d)
r
r
O
N
LO
N
r
r
O (1) Cfl IT O
0
O
0
_O
O
L
N
0) r Cfl 0) O
N
O O O O I`
O
O
dm
C Y) ('7 N N
O
O f` 'IT LA
O
N
N°° -r--
O
%%m/
- t6 O m
O
N 01 O O
ca
C a)
•ta
U)
3 �
(6
3 �
1 �
j cn N
j .O
3 Fn U
Q)
� ca
+ O L
i (6 a)
O
i U) LL
i (1)
LL z z
� LO
�
o e o 0
0
0
� I`
T-
O O O O
CO
CO
C'7 N
Cfl
IT O O L()
dm
dm
O N co O
r
r
Ln O
Ln
o 0 o a
e
e
N
0
ti O O O
ti
ti
(ND
LL
W
IT O O Ln
Im
a
Im
O N co O
r
r
O Lf)
IT
e e e e
e
e
OM N
r-
ti O O O
�
O
`�
�
IT O O LID
d)
d)
O N C'7 O
r
r
O (1) Cfl IT O
0
8 0 8 8 0
0
0
0) r Cfl 0) O
N
O O O O I`
dm
E
dm
C Y) ('7 N N
d)
O O O UD O
O
0
O
j LL N U t6
• C a)
- t6 O m
O
N 01 O O
M
M
(� cl)
L 73 (� O O
U
0 0 0 0
a
8
8
0 O
Q a)
O
U) M 70 70 U
00
+r
8
N N
Ln
IT 0 0 LO
N
(1)
M
O N Co O
r
O
O f` O
C9
e 8 8 e
0
e
0
IT
N N
Om
T"
O O O
�
N
w
O N CO O
N
M
O M LO
�
(1-3Q3 e e e
e
e
e
N N L() IT
N
M O O O
M
C'7
w
N N
I
0 0 Ln
d1
N
�
O N Co (Z)
i
r
M
LO C Y) 00 Cy N O
N
o 0 0 0 0
0
0
0
M M IT IT
dY
0 0 O 00
O
C'7
N
tD Co N N N
IT
(C) O O LID IT
W)
N
00
N
N N co O O
W;
00 U
T
8 8 8 8 8
e
8
8
� m
OLO
t
C� N N
O
0 0 LO
N
'IT
N M O O
M
7 00 [A
C'7
e 8 e e 8
e
e
e
N
m
OM
co
N
0 0 LM
r
M
N co O O
M
M
N
a)
�
LL
a)
H
N
U)
O
:
-
C:
O
LL
+r
A
LL
W
O a
a
LL!
Q)
tm
(�
E: :3 � O
U)
LL p
O
W
(6 p
L
Cl)
C/) a1
O
`�
>
LU
' U U N
O L C/)
LL Cl)
cn
O O
Q
M
L U
(a a C� o
ca a)
> o D
� }, •�
E
E
U-0 � �
� U J O N
Q) >+ O 0
_U U �' D
m �
Q
m m O
O - C�
0
N a)
C)
j LL N U t6
• C a)
- t6 O m
O
U
O a)
O Q)
� U
U
(� cl)
L 73 (� O O
_ _
J U (6 0 �_
j O
U N N
x
V
L U =
Q a)
Q�
U) M 70 70 U
+r
+r
8
a) o
1 z U
a) a) a) a) m � �
z z z z U O Q
- W
a�
m Cn o� in
m
z
W
W z
M
N
C/)
C/)
a)
cr
a)
ry
LL
L
0
0
L
N
�
o
o
a
�
O
N
O
CY)
LM
i
v
CY)
CY)
ti
=
(Y)
M
�
bg
L
m
LO
lie
�
N
�
00
0
m
LO
�p
N
C)
cli
�
N
�
a0
d9
Uj
O
�
a
U
Y
L.
0
a)
4-0
c�
0
0
LO
ti
C)
N •-
C�
U Jc:
.� CY)
0
0=
cn cn
a) a)
0 L
0
LL
LO
N
En
U
N
!Ad
0 0
(1)
C/)
c�
U
N
C
L^,
W
cn
ca
O
L
U
N
L
W
L Q
L LO
CY)
O
C:)
C:)
C:)
C:)
LO
619-
0
N
c
0
co
ul)
O
�
U
06
0
cu
H
Ll�mm
(D
U
�
C
C/)
mo
(1)
M
mc:
a)
a)
0
C/)
0
wl�mj
%%moo C/
%M
%M
M�
�
UO
O
�
�
:3
C/)
a)
a)
o
E
,cn
>
E
0
E
C:
cn
cn
0
C/)
nj
c�U
O
O
U
co
�
�
cn
0 0
(1)
C/)
c�
U
N
C
L^,
W
cn
ca
O
L
U
N
L
W
L Q
L LO
CY)
O
C:)
C:)
C:)
C:)
LO
619-
0
N
� C
a)
cn a) C
>a
ca �
mc
Q LL
rrt
a 4
0
12) N � r
� r N
N Ul
m
-W M �
� r N
r 0O
N UD
m
,
� O � N
r 00
N Ul
m
O O O
O 00
� N �
m
Q 00 - LO
0 O N LO
CD
N o0
m
co
m
Co
O
O
00
00
O
v f`
N
N
00
'p
O
N
Co
N
L
a.
m
y
m
co
ti iO
1`
I'--
O qlq-
O
O
CD
M 00
O
N
m
O 00
Co
�
00
�
m
-
CO
O
co
N
t�
V N
N
a
o
co
O
O
m
N
m
O
O
O
LO
m
y
m
cM
CD
CD
CD
m
m
00
co
m
00
O
t�
UD
o
I�
m
m
00
ti
r
W
N
v
N
O
I�
M
00
�
m
CU
qe
LO
co
co
:3
a)
c
j
m
O
co
O
=
00
1`
�
O
c
�
O
00
U")
1`
m
O
o
�
O
O
N
r
�
},
cn
IL
►
cn
CD
CD
C
' �
co
W
ti
m
m
�
co
w
I�
Co
Co
0000
�
N
00
m
C�
m
�
00
1`
�
�
O
m
M
I�
00
FO
O
00
m
M
M
10
Z
O
V
00
Co
co
�
W
00
O
m
w
co
00
O
00
LO
M
O
M
LO
CD
CD
1`
00
co
co
�
f`
I�
O m
O
m
N
O
m
O m
O
m
�
UD
r
N
CD co
O
00
N
m
qqt
T-
O
M
y
U)
m
o
y
W
v
U
L
m
CU
C
C:
:3
a)
c
j
0
0
co
a�
CO
=
=
m
m
m
c
�
m
)
m
o
�
W
�
},
cn
IL
►
cn
p
C
' �
-
�
O
J
C�
�
�
�
�
�
�
�
—
U
FO
W
IL
10
Z
O
V
O
M
I
N
�r
O
O
(D
O
00
■
'mm
O
O
O
cn
0
c
IT-,
M
00
O
I�
N
O
LL1
ti
�
I
N
O
O
O
O
00
[1'.-
�
O
O
O
O
I`
IT-,
M
00
O
I�
N
O
ti
�
N
00
LO
N
C�
r
O
T---
O
U")
O
O
00
�
I`
00
O
O
O
O
I`
�
O
M
0?
r-_
LO N
01
ti
00
N
10
O
IT-,
O
O
O
I�
CD
O
O
O
O
�
0O
Nt
ti
N
LO
O
U)
ti
N
O
0
0
0
0
-
O
O
O
O
O
00
00
O
-
IN-
00
O
M
M
O
O
O
O
N
O
O
O
O
I`
00
I�
00
LO
LO
00
M
N
70
M
O
O
0)
U")
O
Ul
(D
U')
O
I�
I�
�
ti
N
m
ti
00
N
O
O
M
O
O
C0
M
N
M
00
O
p
v
,�
��
�
O
I�
N
O
N
N
N
o
i
a.
O
O
Lr)
O
O
00
ti
O
LO
O
LO
N
I�
O
00
N
C�
�
�
00
N
O
O
M
O
�
M
N
I�
I�
N
n
�
�
O
E
N
O
N
N
m
�
I�
I�
O
O
00
M
O
O
O
O
O
�
N
I�
O
C�
O
--
O
�
I�
�
CD
CD
M
00
C0
�
LO
M
N
p
N
V
00
(C)
N
Q
N
H
L
m
E
O
O
N
N
_
�O
0
m
o
LLJ
-
°
J
o
E
i
�
�
�
c
O
°
W
O
4-j
-0
^
W M
•-
no
^L'
^L'
O
c
c
>
m
W
�
�
0-
z
m
m
T-
M
�
M
t N O
N
a) �
00
M
O
O
r
r
f`
"
G r M O
r r O
N
00
00 _
CD
cn
a)
f`
O
O
tD
O
N tD
N ao ti
_
LO
L
E I..f� • Q Q
O
co 00
r
Q)
� i�-�
N
qj U � t6
N
L!7
(�'� CD tD
U a)
O L-
cn
a) O
>> a) ❑ (n
O Q
4)
>
a)
a)
>
a) .- -
c�
` '
O 0>
'�+ � -0 J W ❑
c�
>,
cn c^n, cn cn (/O�
� �
C
U w
M O U C
� L � �
u� a) IL
V cn
=
i
Ca
U
M
M
CD M O
N N
� 00
C) It O
ti M
(D
p
O
N N
(D Ln
N
�
N O CO
O O O
a) r-
0) OM N
U')
to
CND
r
O
� N
00 CD
N
0)
Ul c
r
It N C04
I� Ol N
N
it LO
N
d) CD
p
M
N M
00 00
NIr-
IT- �
O d) O d)
CD O CD
N O
C*
ti
It
00
00 000
0)
O
N co
00 00
00
N
�
00 I� O Ln
Ir-
I` O �
^
M
co N d)
000 000
U') ti
r
p
co co
M
M 't
N
N j 0 d)
I` O I*
O
�
00
07 N -
O O
O M
p
O `--' O
LO LO
0
N
I
m O I�
00
N O N
It CD
�
co
M M
LO
C�4
N
�-' It
M M
ti O
C�
m It
O M
� I
Ol
■►
rQ
p
It O It
O O CD
O I`
to d7
O
N
.��.
O
M ~O It
O O r-
( M
N
�
"l , O M
O
0) �
It �-' It 00
N It CD
N
O Lt) 00 M
m 00 M
O O
00
00 LO LO O
M LO O
O O
p
N O
co I ti
to O CD
It It 00
d)
N
N
� �
�
O Ln
d) O d)
It O
V
OM � r-
ti r-
O
�
O
.� v
d7 d7
d7 d7
N N
N p a
L
M 00 O
O O O
M It
00
o)
O O
Ln CD
N Ln 00
N N
It O
O v
00 0o
Ln U')
0o N
N Q
O
A
O
4-
O
4-0 � �_
�_
ZM
L
E (a
N (a
O
U
L a
L
1-j
ii W
O N
N� O
r, �0
- -M-
�G1
I.L U-
W W U-
W W
M
M
„.,
m ti
N
OON
O (D O
N N
O O O (D 00
M
f` 00
~
CF)
ti
(D
00
00
N N
(V
N
N
LO
(fl
(D N
N M r
N
N M
r
N
a) O 00 00
O
� O
�
00 LO
N N
N
t0
r
N
N
LLO
N
N N
O
r
N
(D
ti
N O N
O
ti
�
N
r
N
d7
M
f� LO
�
00 �
L
r
N N
CD
N N
T-
r
CO r
LO
O
CD
r
I�
N
co 0
O
0
N N
N
M
N
O
(D
O
d')
00
0
M
r
00
(D
d7
....
00 N
N
0;
N
CD
CD
O
N
N
M
N
N
U-)
O
CD
N co
r
O
M
N
--
r
N
O
^ �
LO
00 co
00
N
O
O
CD
00 ti
N N
00 Lid
O
ti
O
N
N
N N N
M
O
M
'IT
O
'
N
N
co
O
....
m LUt)
LO
M N
O LLO
O
SOLO
N m
O
�
�
N
■
v
(D
N
I- O
�
N
ti
O
N
O CO
N CD r
CD
N .� v
Lid
Lf�
M L�
0a
a
M
O O
M
(D CF)
O
to
M
N
� O r
N
CD
CD
CND
I
N a
N � 0)
m ti
M M r
00 f`
r
O (D O
Ul 00
O O O (D 00
M
f` 00
N
00 O dm O
m
O r N CO
M M r
00
00
O O N 00
00
U')
M r M r
d) r r f`
O
O O O (D 00
M
f` 00
O a) r r f`
O
f` co
r N CO r
O
N N
(V
N
M
O O O �
00
)M NCCO �
N (D
d) r r f`
CD
f` f`
N CO r
N
N
N M
r
(V
M M
co
0M0 f`
(D N
N M r
N
N M
r
N
a) O 00 00
f` CD
r 00
N r N
N N
N
co
M
Ln
N O N
O
ti
(D
N
r
N
d7
CO
CO O 000 CO Li) 000 O M 000 N
N N r N N CD 0 r 00
,qf lti
It OM0 CO O
° m co co
)M NCCO �
00 U-)
MN Nr
LO m
LO M OM co
co co
co U') r
N
co
N r N 0
M M
� N
(1)
O a)
U) O m cu
L 0 0 O D a) O }' 70 .2 c6
a) — O Q C U :3
4-a 4-a cn Z a) O >, � OU >
cn C: a--� — L t6 t6 +� O
t� (/) ' — C cm
U O 8 LL Z '�°� ° o Z ca w a) L V �� 0 (n o
N L �� }� �1� ��V� //J ��V� //J }� O LL a) O to }/�� �O/ L U L O O �,J_ O
cu
Q L � L a) Q) L.1. LL L U () L L V J LL �+ cu
CU O� cn L L O U� � —_ c O N> � LL
Cl) o � ' � c6 -0 70 ' L CO L a) ° L Cn }' a) ' L ° O a) n c6 c °
45 N 0= L 0= = 0= c O +� a) Q) L a) U� C O -0 - � U) L -0 -6 O L a)
i< L a1 m O O L m O O U }' c +r . O a) O— U +. +r O> a) x
D LL w C'� 2C'� C'� w J 2 LL J J CU C) s w U) O m Z Y �Cn Cn s in m 2 CnZ w
0000q °0 LOItti� � Oo0
Oo
Cfl N �
M
CD
CD
0 0 0 �
00 L
^ O (3)
N 0
LO M LO CD O 07 O
0 I� M� O
N O N
^
CD O
00
N N O
� �
M N 0
�
0
00
Lo
00
CD 00 O
00
M 0 07 O
I� A 't O
0
ti
O
ti ti
M^
M 0
CD I`
M N 0
0
0
M
r
0 0
CD V
M N
0 0 CD
N 0 N 0 00 m 00
N
CD O CD
M M
O
O ti ti
O N I` N M N 0 V-
V-
N
N
� m
0
CD � I`
L L
I` M I` CD
C6
N
CD
I`
O')
P-
0 M
Lt') CM
N 't O CD
00 O
0) O O')
CD M
N M
M N
LO
�
0 0
0
CD O CD
0 M ti
07
CD
O
OO OO
O CD
0�0
0°0
M
N
O
■
O ^ O
00 O')
O
I` O I`
^
M° N
°CM M
CD
M
M
M O
-
--
N M
f` ^O O
N N
°M
O
^
LO
O N 00
N --
M
CD
CD
CM
M N
� `-' M
ti
■
O') ^ O I`
07 N O
0 00 O CD N O
M CD � m f` �
M
CD
't O
^
00
Cfl N M
N C) q-
CD
I`
f`
M
M M
r
N
N
00 ti
^ 0 0
00
O')
N
CD N M 0 r O
00 N M M O 0
't O
00
CD O CD
M M
^
0
� N d7
M
N V--- N M
N
ti
P.-
N O
M N
V)
C6
Cfl
- Co
_
V
0 ti O N
� N
O O
ti 00
CD
0) O
0) � N 00 0 0 CA
M CO N M 00 I` �
N N CD
00
O
M
N O N
ti ti
00 00
0^
O 0
CD N
'O
C\f
V:,
L
_
O 00 O 00
07
M I` fit') CA O
M M f`
CD ^ O ^
0 0 °
O
co 0
O
N
O N 00
t
N � N
00
M M�
CD
O
m
co
I` CD
}'
CYj C6
CD
r
a
cn
to
'
a-
U
N
L
a
Lm
� 0- w a)
�
° a
L
i
•L U
>'
O
ui
U
° M
O
m
��� 0
ca U s=
�wJ E C=
m
c O
O •�
U
N
0
L
��
*k
N�'� cn ��
Q U co -i� U�
a) U L
CO
N� U to E ms_ O O O
•— U •-
Cu U
�
a�
'_ 10
Qi c
>N --se
m
O—
o cn
r
m :3 -
0 E
-5 c
- r- L- 0
0 0
a)
W E E < E
�kk, illthtt '*lk'1'c1,'"`"c'�t+r >'.1 tit
ki
� N }� L
M
ii
VJ
x
LU (D
O L_
7
L L
'ta W O m O N O O N
( / / /'^J / 7 / `y' 7
O 2 V U w U L U U i L
O— V L O p O=
M / r / ^, /
0 2 W 2 U U) 0 > U
O
w LL
W W
N
NTOM
I�
N
I*---
(n
• -
O
LO
o
LO
O
TOM
CD
co
cn
I�
N
I--
O
O
C�
.
.......-.
CD
C�
TOM
O
Off..
O
..
O
N
CD
.�
r
O
�
�
O
00
N
CD
M
O
... .
�-.
TOM
CO
0-0
u
O
LO
O
TOM
LO
O
C)
-0.0
�-
N
O
r
N
.—
C: (n
O
..
... .�
c:
E N
c
cn
O
O�
to
�
E
TOM
O
M
�
�
•—
0.
U �
000
Nft—000
o�
—
x
a)
E •—
cn
N
CD
0
rkk�
O —
to
00
O
�
.,-a
C:
O �"�
O
to :
. 0
�--+
N
(Y)
O
C:
°o
o
Cv
CO
U
cn CIO
U
O
4)
lca
.-000
O
Co o
\
VO
=
C�
—
m
N
O
(D
�
Co CO
>
cn
co
U
C:
m
4)
Cn
(D
CM
.—
O
�O
-
—
'—
U
00
LL N�UN
a)
N
NTOM
I�
N
I*---
.�
O
LO
o
LO
O
TOM
CD
I�
N
I--
O
C�
.
.......-.
CD
C�
TOM
O
Off..
O
..
O
N
CD
.�
r
O
00
..
. . . .
00
N
CD
M
O
... .
�-.
TOM
u
N
O
LO
O
TOM
LO
ti
M
N
O
r
M
O ool�
r
O
..
... .�
�
N
(.0
O�
�
TOM
O
M
�
�
N
C0
�;
Nft—000
o�
c.0
00
N
CD
O
00
O
M��
Q.
o
N
(Y)
O
°o
o
C)'
o
lca
.-000
LL
L
W
Q
O
1�
Q
L
LU
0
f` I*-_ Lid
r*-_ tico
V-
O
Cfl co
ti ti
f` O
N LO
co co
m CD
LO
co co O
M N
�
N LO
N 00
Lid M
O f`
Lid M
N M
m CD
,I- M
r LO
V- co
Lid
ti
M
Ir-
M
co
CA
N
N
Lid O Lid r- f` M ;.
N 00
co 00 m LO ;N
N
LO N CO :N
r
O
N.
-
r
CD
C44
I�
O
co
r
N
O CO Lid CO CD N
V- O
ti
O.
O
r
O
N
V-
CO
W o
O
O
0 N
D
CC)
m
D
W
F-
O M co 00 CD N
(.) I-.
O
W O
O
r
ON
a
N
F-
00 N f` m CD co
LU
Cfl N
0 O
O
Q O
C4
m
f` I*-_ Lid
r*-_ tico
V-
O
Cfl co
ti ti
f` O
N LO
co co
m CD
LO
co co O
M N
�
N LO
N 00
Lid M
O f`
Lid M
N M
m CD
,I- M
r LO
V- co
Lid
ti
M
Ir-
M
co
CA
N
N
co IT co
m T
CD CD O ;.
Lid O Lid r- f` M ;.
N 00
co 00 m LO ;N
N
LO N CO :N
r
LO Cfl .
-
M
I�
I� .O .
co
CO Ltd
O CO Lid CO CD N
V- O
ti
CO
r
Lid CO
V-
CO
co IT co
m T
CD CD O ;.
Lid O Lid r- f` M ;.
N 00
co 00 m LO ;N
N
LO N CO :N
r
O
N
Lid CO
O CO Lid CO CD N
N co
N M 00 m M O
r
•� r
Lid N CO N
r
O
,.
N
CC)
Lid r- m N N
00
O M co 00 CD N
p
O
Lid N 00 N
r
N
O m
00 N f` m CD co
Cfl N
M LO O r r
O
O
O
N
O r-
CD N 00 m � M
�
00 r-
O co LO r- r-
W
a)
C7 0
D L LL
ca
O.
N
N
cn
m
�
,;T CD
f` O 00 co 00 M
W
M M LO 00 CC) ,;T
f`
co m
V
W O'
W
w O N
N'
O
O
�
�
+r
O
a
M N
CO O DO M I- ;t4
F-
�-'
(:y) M Ltd 00 CO
LU
cn
M
0 o
Q O
O
N
Q)
� U
m
0 Lw-j
(C) N,00Mu
LnOLnNc'
� N (0 N
CO 00 N C
(C) CA LO O L!
� � ' C4 N N
M � M N
CO CA 00 N C
� � C4 N N
O LO ' LO M Ao
N 00 'O r C
M � LO N
C'M O C'M C'M C
� � M AO
I� N C4 ;C
U
LL
W
(n
N
ca
a)
D L LL
ca
a) l>1
N
cn
x
W >1 M
L T
> -0
p
� O
W
w O N
O
�
�
+r
O
_
>
a)
U)
O
cn
O
O
�
cn
Q)
� U
�
�
U
a
a
°n
C 0)�
w >,
z �
a m
O
L)
C:
O
c�
—_ c�
a
� o
x .N C� U
a) U
x (D
W (^D ' — L)
� QL
v
>
a�
(�/'� a� • v
!
a)
—1' C�
W � U
L
c °
aD c
O
W
U
W�
U
a) >,
a)
Q
x
"' i U
� a) >,
Q
x
W
U (U
�
a) v, U)
VJ
444=00
p
CU
W
p Of CU
W
T p
Q 0
x
U 00
Q m
U
U
(D
O
W
Q
co CO
m co
qr-- co
co CO
u
00 qr--
N CO
co r`
N Lid
r` O
CD 00
N Ln
CO m
co Lid
� co
Ln
�moln
�c
C3)
ti ;N
CD
N
�r
M ' V-
r
r ,
r
O "
N
CO
O
TOM
O
00 :CD
N
00
O
O
O
- -
N
co CO
m co
qr-- co
co CO
u
00 qr--
N CO
co r`
N Lid
r` O
CD 00
N Ln
CO m
co Lid
� co
Ln
CO
co
00
CO
CO
r`
Lid
Lid
00
�moln
�c
C3)
ti ;N
" C
c0
M ' V-
r
r
CO
00
00 :CD
N�
00
qql-
Mr
r
CO
Ln
M
C
CO
co
CO ;' CO
co {
CO
�
00 :. N
`-' ti
c0
U-)
M
r
CO
co
00
CO
CO
r`
Lid
Lid
00
LO ,: N
'q- L
C3)
ti ;N
" C
qql-
M ' V-
r
M
;' m
LO C
00
ti
O
qql-
Mr
r
0')
M ; CO
LO C
CO
LO
{
'IT
M
C
Ln
co ;'
LO C
00
ti
O
'IT
co
r
ti N CO ;CO C
ti M CO ; ti C
CO M CO ; LO L
Lid C
CA -v--- LO CO C
'IT M (D 'IT -q
Lf� C
CO -r-- qq-
M M CO
qq-
qq- O Lid
N � M CO
�
ti O qq-
O co 00
,q- '
O O 0�0
-T--- c
M C
Lid C
CA C
�C
LO C
V-- J.
Nr
LO
,q- :r
Nr
LO
U vi �
00 ; co N O
CO � �N ;�.
C� O
a�
au)
L
'O
U)
I1/ O
�W/
4-i
>-
0
N O
U
O
LM
N L T
�! � O
tD
O
Q
_U
C/)
�
O
U
U)
°v;
O
O
ca
cn
Q
W
ca
>
i>
U
U
L
U
U
U
Q
x
�O
o�
ca
W
V
U
CO I O r` ;M
W�
ti N CO ;CO C
ti M CO ; ti C
CO M CO ; LO L
Lid C
CA -v--- LO CO C
'IT M (D 'IT -q
Lf� C
CO -r-- qq-
M M CO
qq-
qq- O Lid
N � M CO
�
ti O qq-
O co 00
,q- '
O O 0�0
-T--- c
M C
Lid C
CA C
�C
LO C
V-- J.
Nr
LO
,q- :r
Nr
LO
O
N
O "
N
O
r
O
N
O
O
0
N
LO CO
co N
lq- CO
V- V-
C� r`
N LO
N �
m co
O LO
CO
ZsMFGa
O
00 O 00
V-- C') N
N-r-- '--'
O LO to
co N
CO co co
00 'IT
M N r
N co o-)
CO co N
'IT N N
N M O�
W
U vi �
00 ; co N O
CO � �N ;�.
C� O
a�
au)
L
x
x
LU
w
>
O
I1/ O
�W/
4-i
>-
N
N O
U
O
O U)
� O
N L T
�! � O
>
� cq
Lij 0 U
�`
U)
O
�1--
Q 0
O
x
w
O
N
O "
N
O
r
O
N
O
O
0
N
LO CO
co N
lq- CO
V- V-
C� r`
N LO
N �
m co
O LO
CO
ZsMFGa
O
00 O 00
V-- C') N
N-r-- '--'
O LO to
co N
CO co co
00 'IT
M N r
N co o-)
CO co N
'IT N N
N M O�
W
00 ; co N O
CO � �N ;�.
C� O
Q o
N
m
W
CO %O Il-- "Co
H
CO r` 00
Vro
�r--:Unr--M
W
� O
O N
o�
CO I O r` ;M
W�
c� ti oo
��.L
M
Q O
N
.-.
U
H
W
L
W��
(1)
L LL
W >�
Z
o
w
>,
>
w
O N
W
N
W
L
z
m
U O
C: 4-5
x U
N c
U
M 4--
cn
m
U
m F-
Q 00
Q
op. voll
CO
O LO CO
CO
w
N�
m 0 00 �
O
M o
1` O
M
� N
� N CO
N O N;
1`
'
(M CD
- N
O co 0
m N N
O
E
LO LO
M '
O
N
N
m
orf
}' O
N
ui
�
O
CO O
CO
� N
00
m
N C4 0 0
�--� CD
00 0
m O
O
O
M CO
M
� N
■
( CD
m
O
0 00
N 00
o
M O
O
O
'
� N
Co O N
M
m
■
tj
'� 0 E E
m O
:3 O
N U S
) N
O
1` O
Q
0 0 LO
0
%/
I`
N
00 0
O
O
N
N 0 M
� N
},
m
00 LO co LO
N
00 N
■
>C •�
Lu
O M
CO O
CO
O LO CO
CO
w
N�
m 0 00 �
N
M o
1` O
M
1`
� N CO
N O N;
1`
'
(M CD
- N
O co 0
m N N
O
E
LO LO
M '
N
N
cn
orf
ui
cn
CO O
CO
C4 LO 0
00
cn N
N C4 0 0
m
00 0
m O
m
M CO
M
( CD
N 00 O
O
0 00
O
o
M O
L
'
-a N
Co O N
M
L6
p>
tj
'� 0 E E
N U S
O
1` O
1`
0 0 LO
r-
N O�
m m LO f`
N
00 0
N O
N
N 0 M
N
},
(M
CD
00 LO co LO
N
00 N
CD
>C •�
Lu
O M
G)
w
co m
L
-a N
M `--�
CO
m
LO
LO
M
L
M
U') r-
00 O
00
00 00 N
00
N p
c�
co 1� N 00
m
o
O O
O
O
co co co
M M N
O
'
O LO co O
�-' N
00
M
M
00
-a N
A
LO
LO
N
L
m
N
co
LO LO
LO O
LO
N N
L
c p
Cfl co N LO
co
L o
LO O
O
LO
L M
CO M M
LO
'
-a CD
mU') m 1`
co co
O
� co
N
co I`
�
N
Iq
m
N
U') co
� CD
'q-
N LO ti�
~O
O
CO CO O r- r--
CO
o
1- O
1-
00 00 O
r-
M O
m� O O�
m
U') 0
M
� CO
�
U N
CO CO
Cfl
O M
Iq
N
Q
LO co
LO
LO
ti LO co
LO
N �
cm
Cfl 00 O co N
co
M o
Iq
M
CD '
co
m
1` 00 1-
CO CO
M
M
'
- O
M� 1` ti N
CO N
�
1`
co
�
N
�
co N
co
co
N
M
L
w
cn
>
Q
N
N
cn
orf
ui
cn
cn N
W
N
X
>
m
>
o
0 c) o�p
L
o cn o
cn
p>
tj
'� 0 E E
N U S
O
N O
"
�
N
0 cm +-j
cn
N
U •�
cn
i
N +
U� � cn v
},
X
Q O
�m ��
>C •�
Lu
W
G)
w
co m
L
■
■
■
O
Ir-
+� O
N N
O7
m
N O
O
U
O O
•0 N
L
O
N
q- (c)
d7
100
_ O
N U O
•� N
Lo
Q
L
(c)
00
d7 00 Iq
O �
00
O
O
d) d)
� N
q- (c)
d7
o
C4
Lo
o
(c)
00
d7 00 Iq
M
00
LO
d) d)
O
o
O
O
LU
00 M
Iq
Iq
CO
N
qq
Nqq
aLl�-
ti 00
qq
Iq
O
CD CD
o W O
0�•—
O
D E
`--�
Lo-N
� N �
U)
00 CD
N
M
f` N
LO
(D
00
d7
O N U')
00
CF)
> > �
N CD CD
O
CC
L
C4 LO
A
N
0-N
(D LO (D
L
(4
p d) 0)
z �
C U
W
>
L T Lei
o f
a cu
O
W D a�
4-- 0
■,
O
O O i-
W O i- p
J
O Ln
Q
o
d)
Lo
o
cy)
O
CF) ti N
O
O
d7
00 00
O
o
O
O
O
00
O O
07
qq
CF)
-r-
N N d)
d7
�
-r-
ti ti
CD O
O
Li
`--�
C�
LO O
LO
Iq
C4
(D
I`
N
O 00 M
N
O
O O
O
CC
LO
N
C4
N
N
(D LO (D
(D
N
(D
p d7 d7
O
M N
N
�'�
N LO LO
I`
o
Lid 07
Cfl
o
m
f` C0
O
d7
07
M M
O
o
O
O
LO d7
CD
O
I�- O
(D
Iq
d7
M
N O
CO
N
d7 d7
O
M
I�-
CD
O
qq
CD
O
O 00 N
0
0
0
O
O
CD O
LO
M
CC) L
N
LO
N
C4 � (D
(D
N
C4
p 00 00
O
cle)
LO LO
O7
d7 O
O
M CF) U')
00
ti
00
o
O
d7 O
O
0)
M
ti
LO
d') O N
Iq
U')
—
ti
CD
00
CD
I` 00
O
CD
M 07
Iq
(D
M
O
f` 00 O
O
O
O
O O d7 O
N
�--�.
U p
LO d7
CD
CD q
N
Lo
N
Cfl
Cfl
N
C4
I` 00
O
cle)
LO LO
O
L
LO M
N
o
M Lo
m
o
f`
Cfl I� O
O
M
LO M
N
o
00
Iq
Iq N
N
I-
N�
O
q
d7
M
(D LO U')
Iq
M
d7
0 0
0
M
CD
N
N
I�-
N 00
Iq
(D
LO
O
LO 00
N
O
f`
O O LO
Iq
O
N'r-
LO d7
CD
CD q
N
O
N
00 LO
O
N
p d) ti
N
Iq
N
M
N
IV-
V-
N LO LO
`--�
L
O
o
m Lo
O
o
ti
Cfl d7
O
ti
C4
d7
N
o
O
00
Iq O
Iq
M
N 00
Iq
M
CF)
00
Iq 00 ti
00
00
C4
_ 00 O
I`
00
M
00 Iq
Iq
M
N ti
NU')
U') N (D
LO
U')
d7 Iq
LO
O
00
N
C4 d7
ti
ti
C4 �
M
LO
M
00 N LO
M
I
U� p N O
N
N
M
N
O Q N
/-L
I..L
L
O
o
0-) N
00
0
Lo
M
U') N 07
Iq
M
CD
d7
00
o
O
N
O
Iq
Iq
Iq
M
d7 00
-r-
d7
07
(D
Iq O ti
O
(D
(D
00 LO
ti
M
Iq
00
I`
00
M
d7 ti
N
N
N
M
LO O (D
00
M
C4 N
O
00
M
C4 d7
ti
ti
LO �
�
O�
M
00 N LO
M
Iq
-a p d7 ti
N
Iq
�
N
M
N
� N LO �
�.
�.
m
W
N
W
W
z
F-
LU
z
O
L
CL >%
aLl�-
C_
W (1)
F-
a
Lj T
o W O
0�•—
D E
c)
Lo-N
� N �
U)
c
n/
U)
0
W V O U W W
cD as
z Cl)
W (1)
W
ci n
> > �
a O
o
�C:
>�
,Fuu
�
a� a
0-N
O L
a
z �
C U
W
>
L T Lei
o f
a cu
O
W D a�
4-- 0
■,
O
O O i-
W O i- p
J
a) a
Q
�
C O O
w 0- O
O
= N N N
C) N a
Q
G� N
>
N cn d-�
cQ L
w� N
cn 4—
2 0 4— 4—
� cn c
X 0 D
� cn
O
co co
cn
of
W CL o �
W CD o ca
0
m L L
Q 00 ~ ~
ca a
Q °°
C7
CD O
CD �
Li
C�
W
z
W
W
w
F-
LU
z
L
CL >%
aLl�-
:)°
C
a
Lj T
o W O
0�•—
O J N
0-
Q
Lo-N
� N �
U)
c
n/
U)
0
W V O U W W
cD as
co
Iq
+j N
N
r Q.�
00
C0 CO I�- C'14 C'14
M
C4 M M
Q
ti V- CO Ln
00
I� V- V- CO
Q
00 Q Q
Q O Q
op, V-1
N
00 LO co col
LO Q Q
�-'
C4 `-' LO
Q Q Q
Q N ti
ti Q 00
M M
Cfl Q Q
CO N
4 r
N
O
r Q
ti
i�
00 I� Q ti. ti
LO : C4
O O O
Q
-0 Q
O O; N
00
LCD 00 LO 1;T
1;T
lim lim ; 00
Q Q O
.
N
Ln Q�
N
N �-' Q O N
Q
ti Q' Cfl
Q Q O
m
I� Q (fl;l
ti ti LO
N
N'CY)
Q Q O
CO N
r
CU
N , Q o
Lo
Cfl C'7 NT LO , 00
Cfl
Cfl Lo
Q Q
1;T Cfl I- ; N
LO
NT O
N
00 N ;1
Q O O
- N
Q CO Ce
N
Q d7 Q Q
CD
000 CD I�
d) d� Q
m
00 Lo
Cfl LO
Q Q O
Q Q
Co
Q
CD (D
N
Q N
Q
ti 00 Q; N
ti
N C'7 N N
0 0 Q (D
Cfl
(D: 00
LO
O Q Q
Q Q Q
N
n
�
Q (D C'7
Cfl (D . LO
Q Q O
M
4-' 00
Q Q
0
or) ;
LO
N Cfl O
00
I� 00 Q
o 0 0
Q
00 Ln . C'7 N
ti
LO
V- N V- O.
Cfl Lf) Cfl
ti
N
Q ti
N LO
Q O O
Q Q Q
N
�
m
00 Ln . N
CD Lo Co
Q Q O
~O
ti co o
Q7
LO I� 00
00
Lo 00 ' I�
■
U
+� Q
C) N
Q C'7 CD 00
Cfl Q ti Lf I
Q CD 00 LO
Q 00 LO LO
C�
' C'7
CD CD Q
r C'7
N
•�
Q
Lf) C'7
CD N
O
L
CV .
O
�
N
Q
LO N . C'7 i o
Ln �
00
LO
Ln C� Cfl .
I�
Q
� �
LO CD: �
0 0 0
Q
Cfl Q N
00 Cfl
O
00 N
CY) 00 LO ti
.�
Cfl 00
O Q
LO Q Q
N
;
O
m
Ln
%4
Cfl N
Cfl 0
C
co
Iq
■
■
■
re
07 07 O � I, M
I� CO 00 Lo M ' 00
M LO CD O CD I�
LO N'.N N
� N ,
00 "T N 07 LO (3);(3) �
CO M 00 CO I� O CC 00
O N : 00 ' I�
00 00 LO LO IT 00 O I�
LO O LO O O Ln N
M N N IT M O'N.M
� O
I� LO LO � CD Ln ; M M
� 00 N M M Ni0 N
M O N � ti;CD '00
IT
I� CD I� LO N O O O
M Cb � ti N ' ; Ln I--
M O � M N 00 LC)
M 00 I�
M O O M;N O
N I� LO N 00 LO CD
M LO M M N M 00 O
M LO (3)
07 07 00 CD
O 0 O N qql- 00 LCD qql-
M I� M M N 00 ; Lo I�
M I� N
,qT x;00
00 ; N
CO I*
N qq-
^
O
qq- 00 qq-
00 ' CD
LO I*
00 I**-- O
CO ;00
I�
LO
LO M ;00
M N LO
M 00
.—olo .—000'
Ln O Lid
Ln Imo ; M
M
�. i-
CD O ;Lo
CD ;LA
d7
00
00 M
CD LO
'. I%".,
I� M
00
%.-ool
+r N
N 9r--
G
CD 00 ; 00 ,
O p
'IT N;qr-;Lf)
a N
L() U-) 0 U-)
co
LO C) LO
'qT C%4: C%4:
N
(3);LO O
O O
(c) r-- 00 r--
a N
00 CO LO
m
Ln
M r)
N
+r O
p
c
Cp t�O
O
ti 0 -) r -- f)
_0 N
(3) LO
v
m
00 O
W
M N
4
+� O)
p
o
Z N
O O
p
N O ,: M ,: LU')
Ln
0- L
m
M 00
M
Q O ~
W co
I..,- �Mo
.D .0-
O O
;Lf)
Z
Q ��
N
O 00 O LO
v v
O O
�
00 N ' (c)
W ) O
C/)
N W
N � �
L 4-0 4-0 L
~O
O d7 o
� ,-
L p CD
j j N
N I*,',LO
N N
4— 4
O
U x
N
Z p C�
LLJ in ° 0
O
L
N
in U)
to to
�
�
U
Q
N
C� 0) rl-- 00,
O
`oo
O
0) C)
N
M x;00;0
M M.O.Lf)
�cnUC�O
�OwO
Ln O
w
N V -- V-
07 07 O � I, M
I� CO 00 Lo M ' 00
M LO CD O CD I�
LO N'.N N
� N ,
00 "T N 07 LO (3);(3) �
CO M 00 CO I� O CC 00
O N : 00 ' I�
00 00 LO LO IT 00 O I�
LO O LO O O Ln N
M N N IT M O'N.M
� O
I� LO LO � CD Ln ; M M
� 00 N M M Ni0 N
M O N � ti;CD '00
IT
I� CD I� LO N O O O
M Cb � ti N ' ; Ln I--
M O � M N 00 LC)
M 00 I�
M O O M;N O
N I� LO N 00 LO CD
M LO M M N M 00 O
M LO (3)
07 07 00 CD
O 0 O N qql- 00 LCD qql-
M I� M M N 00 ; Lo I�
M I� N
,qT x;00
00 ; N
CO I*
N qq-
^
O
qq- 00 qq-
00 ' CD
LO I*
00 I**-- O
CO ;00
I�
LO
LO M ;00
M N LO
M 00
.—olo .—000'
Ln O Lid
Ln Imo ; M
M
�. i-
CD O ;Lo
CD ;LA
d7
00
00 M
CD LO
'. I%".,
I� M
00
%.-ool
0 0 0
O d7 O
N 6 O
Iq
0 0 "
07 d7 O
d7 O
0 0 0
d7 07 O
� � O
0 INC) 0
� �
O
� � O
0 o 0
07 OF) d7
� � O
0 0 0
� 0 0
O
ca
q) W
ca ca
N O O
N
O
cu cn
a) a) U
cn cn cn cn
N N N
L L L
U U U
0 0 0
U C/)
LL (1)
W Cl)
D
to U
W
^
v
Z
W
4
> N o
Z N
>
0- L
Q O ~
N
j
.D .0-
�
O N
Z
Q ��
0
Z
-0
X
v v
O O
�
W Cl)
Q (�
W ) O
C/)
N W
L 4-0 4-0 L
J U +-+
� ,-
L p CD
J0� C/)
J
}, +� N
cn 0
N N
4— 4
O
U x
N
Z p C�
LLJ in ° 0
W Z
C)
to p to
in U)
to to
�
�
U
O I1/
L>
C/ J
� Q�
—���
L L
X
I_ a U
�cnUC�O
�OwO
w
Q Q
0 0 0
O d7 O
N 6 O
Iq
0 0 "
07 d7 O
d7 O
0 0 0
d7 07 O
� � O
0 INC) 0
� �
O
� � O
0 o 0
07 OF) d7
� � O
0 0 0
� 0 0
O
ca
q) W
ca ca
N O O
N
O
cu cn
a) a) U
cn cn cn cn
N N N
L L L
U U U
0 0 0
c
L
0 �
O � (D
(mc) (Ni :3 C)
C/) 00 0 C)
0 C)
C/) N
C/)
A--j
cn CO
C/)
cle)
L '� C: --j c��cvo CID �N
V (D C: � O
i oON ��
� � a) E E N y O O �=+
4-a Co
(D
co MFV o C6 cn CO L.
p L O � cn N � � � N
(D -6--f E E (D
= c: 0 E
C: 0 a) m 0— :3 co CO
cn U) " a)
0 Co cm -1--a z I C/) m
cn 0 > cn a) M
E (D c: " 'a C: �.a CN Ct?
0 -
E 4-0 0 M M C)
� � O QL N (1)
�L7
C) � N >C Co (n C: a. � � C *4 LO
0 CL m 0 0 CL
0 00 0
00 0
omc) C) 0 >NO<
I
C: AMEJ
0 (n o 0
�C) °O
N I I I � I I �cle)
LO
Iq
0 0 0
O
2
t�
Fil
L
W
Q
V J
X
L
Fil
all,
O
O
O
LO
O
w
^
O
LO
■
O
O
O
O
N
m
CD
^
O
O
O
N
w
Ltd
m
Ltd
m
O
CD
O
LO
�
N
N
41-
ti
qr�
qqi-
^ O O
N 00 00 O C'7 Lf�
00 O Ln O
O
N
M
d7
Lii
cfl
M
00
Lid
M
L!1
0
LCD
O
M
O
0
ti
M
%%moo
C:
0
U
o �
M �
cn A
(D cn cn a)
cn (D
> (n
U O
0 C: -I.-a >�
L. C:
(D LL LL
U) (D
00 Z Z LL 0 �W 0� FM FM
M,
M,
(L
90 r
U
U)
U
�
o
0
0
�
O
00
O
�
N
00
C4
O
47
�
Cfl
M
O
�
N
O
d7
N
N
O
I`
00
N
N
C/)
a)
�U
N
�U
N
},
�
O
A--j
a)
N
C;)
C:
M
a)
A
0
cn
m
a)
cn
(D
U
Co
Co
Co
L
V
�
c n
C:
(D
(D
(D
Co
17
cn
ca
L.
.0
co
>
ca
00
J
�it
I
m
M,
a)
C/)
Ca
co
U
P!Pgpdp-
allb-
�
a
O
LO
a
�
C:
Lip
M
M
a)
A--j
O
O
O
O
O
O
O
O
O
oft
M
oft
d7
W%
C4
I`
O
I`
V�
N
M
O CD
O CD
O I�
CD
qr� 00
0)
oft
(1
co
ti
Ltd
LC)
ti
N
qe
r*%ft
N
ti
(10
r
N
0)
N
M
00
O
r
T—
LO
C:
a)
A--j
>
0
O
LM
U
�
�
�
�
0
LM
r
CO
4-5
0
a
E
Cr)
>
4)
•
L
Q
0
co
o
co
co
U)
A--j
0
C:
0
CO
0
(J)
o
0
o
z
�mm
a
t�
T—
LO
■
■
1
'E
0
CD
1
1
r
}
w
CD
CD
LO
CD
O
co
O
E
N
O
f.
cn
r
O
C:
O
• -
C
O
�
C�
CL
c
C:
O
U
c
�
CD
�
4-0
O
+�
O
CD
m
O
O
N
O
O
+�
cm
:3
O
L>%
V
O
cn
cm
O
to
E
O
�
CD
o
I
Q
I
I
oc
cn
N
'E
0
CD
1
1
CD
}
w
CD
CD
LO
CD
O
co
O
N
N
f.
r
CL
4-0
O
m
cn
E
—
_
Q
�
�
1
L
_
cu
CU
CU
cu
Cn
ca
cn
cn
cn
�
�
U
Y
•
(n
4-1
U
o
N
Q
cn
a)
a
.cn
r
co
a�
r
o
c
W
C�
D
N
L�
~
m
-
----
CD
0
m
cn
m
(D
L-
0
cn
m
LO
4-0
-a
M
0
A.-a
TZ
m
a_
0
0
E
0
0
Im
N
mc:
O �
U
mo mo
(1) C: CD
C/) :3
Ca Co � O � =
=0 mo
a) cn
0 cn
mo 0
L
d7 E
a)
C:
mo 0 cc m
CO mo cn
N CO >+ C
j � O O � (1)
C:) Q to � � U)
Q �
• •
•
Iq
LO
■
N
O
Q
N
C
O
N
cr
N
cl
M��
0
CN
CN
�o
C
co
r
CN
L
H
0
C/)
L
Q
L a�
W
W co
� U
c� Q
O Q
L ^,
V!
L
U)
C:
O
O
Ca
LO
LO
(C)
LO
LL
Q
�
U
�
�O
N
�
C/)
L.L
�U
O
U
CITY OF KITCHENER
2008 BUDGET ISSUE PAPER
ISSUE: #2.1—Adult Crossing Guard—Williamsburg Public School
FUND: Operating
DEPARTMENT: Development & Technical Servics—Engineering
PREPARER: Jamie Mahony, Senior Financial Analyst
BACKGROUND:
During operating budget discussions on January 14th 2008, Council directed staff to clarify why
the proposed Williamsburg crossing guard cost $2,500 for half a year in 2007 but is project to be
$8,500 for a full year in 2008. In addition staff were to look at the possibility of relocating an
Adult Crossing Guard to avoid incurring the additional cost.
RATIONALE / ANALYSIS:
The $2,500 for the cost of the remainder of 2007 is based on the school year not being equally
divided. The winter/spring term represents approximately 2/3 of the school year and the fall
term represents only a 1/3.
The $8,500 from issue paper #2 — Adult Crossing Guard — Williamsburg Public School was
overstated due to budgeting for a lunch hour service, which is now deemed not required. Below
is a breakdown of providing a crossing guard for the required 2 hours per school day as
opposed to 3 as was originally anticipated.
Wages part-time
$41657
Fringe
1,751
Mileage (cost of coverage when rover covers location)
125
Uniforms
70
Annual Medical
75
Total
$61678
Relocating an adult crossing guard from another location would mean a reduction in service.
This cannot be done arbitrarily and would require the development of a list of potential
candidates, which would then require Council approval. These services are greatly valued by
school children city wide and reducing the adult crossing guard service would contradict the
goal of making the City of Kitchener more pedestrian friendly.
FINANCIAL IMPLICATIONS:
The annual cost for wages, fringe benefits and miscellaneous supplies, needed in the 2008
Operating Budget for the Williamsburg crossing guard, is approximately $6,678. This
represents a savings of $1,822 over the original estimate.
RECOMMENDATION:
That the proposed additional budgeted cost for one additional Adult Crossing Guard for the
intersection of Max Becker Dr and Isabella St be reduced from $8,500 to $6,678 in 2008.
CITY OF KITCHENER
2008 BUDGET ISSUE PAPER
ISSUE: #14.1- Energy Management Program
FUND: Operating Fund
DEPARTMENT: Corporate Services- Facilities Management
PREPARER: Laurier Proulx, Director of Facilities Management
Saleh Saleh, Senior Financial Analyst
BACKGROUND:
On January 14, 2008, Council requested that staff provide an issue paper with additional detail on the
Energy Management fund. This was in response to a staff request to create a permanent budget line in
the operating budget to fund 1 FTE position related to the Energy Management Initiatives, currently funded
through capital.
RATIONALE / ANALYSIS:
The Energy Management fund started in the 1980's. For over twenty years, the program has implemented
numerous energy saving projects. The goal of the program is to reduce utility costs in all city -owned
buildings. This is accomplished by maximizing the efficiency of equipment and systems that serve City
facilities as well as introducing new technologies and procedures that allow the City to minimize operating
costs. The balance in the energy management fund as at December 31, 2007 is $337,082. Annual
funding sources for this fund include capital out of current (CC) and revolving energy payback funding from
projects already completed. The 2008 budget includes $98,838 from Capital out of Current and $136,548
in recoveries from projects. Below is a detailed projection of the fund over the next 5 years.
Energy Management
2002
2003
2004
2005
2006
2007
2007
2008
2009
2010
2011
2012
Actual
Actual
Actual
Actual
Actual
Budget
Projected
Revenues
C/C (percapital budget)
90,000
98,000
98,000
95,300
95,000
96,900
96,900
98,838
100,815
102,831
104,888
106,985
Recoveries (depart mental projects)
41,047
72,709
50,789
133,967
225,184
217,773
196,523
136,548
187,574
178,183
110,815
118,319
Recoveries(Grants, etc)
57,848
9,390
131,047
170,709
148,789
287,115
329,574
314,673
293,423
235,386
288,388
281,014
215,702
225,304
Expenditures
New projects
185,697
-
245,453
341,975
49,457
233,508
174,622
420,657
200,000
200,000
200,000
200,000
Market Lighting transfer
(118,054)
Other misc items
17,173
8,779
Debt Charges
111,098
111,068
111,026
110,949
110,883
111,316
110,863
111,265
110,376
64,132
23,725
-
Salaries & fringe
50,217
68,702
78,267
73,452
81,494
83,615
83,033
85,524
88,090
90,733
296,795
111,068
423,869
530,405
120,552
418,276
366,980
615,537
393,410
349,657
311,815
290,733
Balance beginning of year
826,095
660,347
719,988
444,907
201,617
410,639
410,639
337,082
(43,069)
(148,090)
(216,733)
(312,845)
Balance end of year
660,347
719,988
444,907
201,617
410,639
307,036
337,082
(43,069)
(148,090)
(216,733)
(312,845)
(378,274)
The fund is projected to be in a deficit position in 2008. Staff is recommending that $83,615 in wages and
benefits be funded from the operating fund as this will create more capacity in the energy management
fund to continue with the implementation of energy efficient capital projects.
In prior years, energy management improvements have not been 100% recovered which has contributed
to the projected deficit position. In addition, future projects are anticipated to be undertaken on a larger
scale, resulting in longer payback periods which would also mean longer projected deficits in this account.
Upon completing an energy management retrofit, the City's practice is to reduce the energy budget by the
estimated amount of savings. At the same time, a revolving energy provision line item is added to the
operating budget to transfer the savings over the payback period to the energy management capital
account. In the event the savings are not realized as anticipated, this would be reflected as a negative
variance in the operating budget of the facility. In the event savings exceed original expectations, this
would be reflected as a positive variance in the operating budget of the facility. Staff ensures that, at the
end of the payback period, the utility operating budgets reflect the permanent savings of the initiative by
removing the revolving energy provision line item.
It is anticipated that in 2008, the following energy management projects will be started:
Payback
2008 Period
Breithaupt Window Film
4,133
5 years
KMAC Window Film Front Lobby
81875
5 years
Power Factor Corrections Various Locations
601000
4 years
Variable Frequency Drives On Pool Filter Pumps
19,399
3 years
City Hall Transformer Retrofit
2601000
5 years
City Hal I T-8 And Ballast Retrofit
681250
2 years
42U, 6b-1
FINANCIAL IMPLICATIONS:
Given the forecast for high value energy management projects in the next few years, the energy
management fund will be depleted if the City continues to charge 1 FTE position to the capital account.
Allocating the FTE to the operating budget will add $83,615 to the operating tax base.
RECOMMENDATION:
That $83,615 be included in Operating budget to cover energy management labor and benefits starting in
2008.
CITY OF KITCHENER
2008 BUDGET ISSUE PAPER
ISSUE: #19.1—Addition of Junior Buyer— Purchasing Division
FUND: Operating
DEPARTMENT: Financial Services — Purchasing Division
PREPARER: Larry Gordon, Director of Purchasing
BACKGROUND:
During the review of the operating budget on January 14, Council approved (subject to final
budget deliberations) the addition of a junior buyer for the purchasing division. Subsequently,
staff has reviewed the potential to fund some of the cost of this position through anticipated
savings in contracts in 2008.
RATIONALE / ANALYSIS:
Staff are proposing that partial funding for this position be provided through tax-based savings
achieved through the following contracts, recently awarded (assumes 80% tax-based):
$15,000 photocopier contract
$21,000 blackberry contract (161 blackberries * $31 /month savings *12 months * 80% tax base
= $47,914). Initially, the 2008 budget was adjusted for savings of $27,000 related to budget. A
revised estimate has been provided
$12,000 cellphone contract (159 units *8/month savings *12 months * 80% tax base = $121211)
Total = $48,000
FINANCIAL IMPLICATIONS:
Adjusting the budgets for these savings will offset $48,000 of the cost of the new junior buyer,
representing a 0.06% levy reduction.
RECOMMENDATION:
That the tax-based budgets for the photocopier contract, blackberry charges and cellphones be
reduced by $15,000, $21,000 and $12,000 respectively in 2008 ($48,000 total savings), to
partially offset the cost of the proposed new junior buyer ($55,000).
CITY OF KITCHENER
2008 BUDGET ISSUE PAPER
ISSUE: #29.1 — Investment Income
FUND: Operating
DEPARTMENT: General Revenue
PREPARER: Roger LeBrun, Manager of Financial Planning & Reporting
BACKGROUND:
During the review of the operating budget by Finance and Corporate Services Committee on
January 14, 2008, Council requested details on the amount of operating fund investment
income generated by the City over the past several years.
RATIONALE / ANALYSIS:
The investment income that has been earned and allocated to the operating fund over the last
five years is shown in the chart below. The figure for 2007 represents an estimate and the
figure for 2008 is the budgeted amount.
Due to the sub -prime mortgage crisis in the United States, as well as other economic factors,
interest rates have been very volatile in the last few months and have continued to fall since
September 2007. Short term rates were approximately 5% in September and have fallen to
approximately 4.15% by mid January 2008. Rates for 2008 are expected to be in the range of
3.70% to 3.95 %.
In view of the fluctuations experienced by the City over the past several years (both in terms of
rates and balances) staff recommends that the budget be maintained at the five -year average.
Increasing the budget may jeopardize the sustainability of the budget line and expose the City to
the increased risk of an operating fund deficit at a time when a deficit cannot be funded through
the tax stabilization reserve fund.
Year Investment Income
2002 114121620
2003 114071326
2004 112211907
2005 119481270
2006 3,141, 372
2007 310001000
2008* 212621473
* Budget
FINANCIAL IMPLICATIONS:
N/A
RECOMMENDATION:
N/A
IIII IIII 'uu IIII ���9,
CITY OF KITCHENER
2008 BUDGET ISSUE PAPER
ISSUE: #31 - Golf Rounds and Administration Expenses
FUND: Operating
DEPARTMENT: Community Services - Golf Courses
PREPARER: Jamie Mahony, Senior Financial Analyst
BACKGROUND:
During operating budget discussions on January 14th 2008, Council directed staff to report back
on the number of golf rounds in 2007, as well as the reason why the budgeted administration
costs are higher at Rockway than at Doon in 2008.
RATIONALE / ANALYSIS:
The 2007 golf rounds for Doon and Rockway are 40,260 and 40,133 respectively: These
numbers represent increases of 3.8% for each course over 2006.
The 2008 budgeted administration costs are $16,000 higher at Rockway than Doon due to
Rockway being used for more events and catering. The difference is primarily attributed to
higher club house supplies ($4,000) and electricity ($12,000). Catering and room rental
revenues are higher at Rockway than Doon by $44,000.
FINANCIAL IMPLICATIONS:
N/A
RECOMMENDATION:
MW I =I
CITY OF KITCHENER
2008 BUDGET ISSUE PAPER
ISSUE: #32 — Gasworks Delivery Revenues and Gross Margin
FUND: Operating
DEPARTMENT: Financial Services — Utilities
PREPARER: Pauline Houston, General Manager of Financial Services
BACKGROUND:
During operating budget discussions on January 14th 2008, Council directed staff to provide a
history of gross margins for the delivery program as well as an explanation for projected
decrease in revenues for 2008. In addition, there was a question regarding when 2007 gas
inventories and year end operating results would be finalized.
RATIONALE / ANALYSIS:
The gross margin for the delivery program from 2003 to present in ($'000's) is as follows:
2003
$171922
49.5%
2004
$181034
48.7%
2005
$211538
52.0%
2006
$131793
41.6%
2007 (budget)
$171440
47.3%
2008 (budget)
$161451
44.2%
Projecting gross margin for the delivery program is extremely complex and can fluctuate
dramatically depending on weather and economic /market conditions. The three main
components of the gross margin includes: delivery of gas, management of transportation, and
asset optimization (trading of gas purchases depending on market conditions). While the first
component is more predictable and dependent primarily on weather and production volumes of
industrial users, the other two components, which makes up approximately 15 to 25% of the
gross margin are driven by market forces which can and have been quite volatile. Since most of
our transportation requirements for 2008 have already been contracted, the projections used
are relatively fixed. Note: $1.5 million of the 2005 gross margin relates to one asset
optimization transaction.
Gas delivery revenue budget is based on a number of factors, including:
• Average revenue by service group of the last five years
• Adjust for plant closures (e.g. Michelin) and other industrial customers volumes
• Adjust for residential customer growth, net of implementation of more energy efficient
appliances
• Adjust for transportation rates and revenues
For 2008, it is estimated that based on reductions in industrial customer volumes, net growth at
1 % and a slight decline in transportation benefit, the delivery revenues will decrease.
In order to finalize 2007 year end operating results, gas inventories must be reconciled. In order
to do that, all gas purchase invoices must be received (usually late January), all January billings
related to December must be completed (usually mid January) and reconciliations completed.
The earliest estimated date for this to occur is mid to late February.
FINANCIAL IMPLICATIONS:
N/A
RECOMMENDATION:
N/A
CITY OF KITCHENER
2008 BUDGET ISSUE PAPER
ISSUE: #33 —Water and Wastewater Rate History
FUND: Operating
DEPARTMENT: Financial Services — Utilities (Water); DTS — Engineering (Sewer)
PREPARER: Ruth-Anne Goetz, Senior Financial Analyst
BACKGROUND:
On January 14, Council requested both historical rate increase comparisons for surrounding
municipalities, as well as a copy of the Region's 2008 budget issue papers on Water Supply and
Wastewater Treatment.
RATIONALE / ANALYSIS:
Staff have compiled the historical combined water and sewer rate increases for the cities of
Kitchener, Waterloo and Cambridge, in the following chart. It is important to note that these
rate increases are based on information compiled for year end comparison reporting, as in, they
incorporate any rate changes that occurred during the year, such that the rate shown is the
average rate paid by a homeowner for the year. As such, the change in the City of Kitchener's
rates will vary slightly from what was presented during the budget discussions.
Rate Increase per Year
Kitchener Waterloo Cambridge
2003 3% 4% 4%
2004 15% 7% 4%
2005 18% 7% 5%
2006 7% 8% 9%
2007 7% 6% 19%
Total
Increase 50% 32% 40%
As also requested by Council, the Region's 2008 budget issue papers, titled Water Supply,
Wastewater Treatment Costs and Information: Water Distribution and Wastewater Collection
have been included on the following pages.
FINANCIAL IMPLICATIONS:
None. This issue paper provides background information, only.
RECOMMENDATION:
None.
I'Ll Mel N iy� TIN 9 USI'Ll MYEAN I W UVA
Operating
In the Water Services operating budget, ongoing issues related to compliance and monitoring
resulting from the Drinking Water Regulations, the need to maintain the infrastructure in peak
operating condition, and the recommissioning of the Greenbrook WTP, have resulted in a 10%
increase to the budget.
The staffing cost increase is mainly related to the new positions (as outlined in the Budget Issue
papers) and to the annual COLA and benefits increase. The increase in utilities cost associated
with recommissioning Greenbrook in 2008 is expected to be approximately $600,000.
Additional maintenance and repair costs of $325,000 have been added to the 2008 budget with
the largest increase being in "maintenance to storage tanks and reservoirs" to increase the
frequency of reservoir inspection and cleaning.
Capital
The proposed 2008-2017 Water capital program is $444.1 million. The 2008 Water capital
program has remained very stable over 2007. The capital increase is $36 million in the 2014-
2016 timeframe which is directly attributable to new Water Resource Protection projects
responding to the Clean Water Act requirements.
6- M_ ATMOTM f M
To finance the increase in the capital program, total proposed debenture financing has
increased to $40.5 million from $25 million in 2007. Debentures will be issued for $9.96 million
for water capital projects in 2007. Repayment of the debt has been included in the 2008
budget.
r-, R r. A
As part of the 2004 budget, Regional Council approved incorporating 100% of the Region's
share of the GRCA levy into the Water and Wastewater funds. The GRCA budget submission
indicates a 6.9% increase in their municipal levy requirement which has been accommodated in
the Water and Wastewater budgets.
428810 -Section 4-
I'Ll I; us] N iy� TIN 9 LOGLI MYEAN I WUWAUSTSI'Ll k IN
Rate
The 2008 water rate is recommended to increase by 9.9% to $0.6191 per cubic metre ($2.81
per 1,000 gallons).
Water Services has experienced significant cost pressures over the past few years related to
increased enforcement of provincial regulations, inflation, and with the imposition of higher
environmental standards. As reported last year, it remains unknown at this time the exact
impact that legislation such as the Sustainable Water and Sewage Systems Act (Bill 175) will
have on future rates. Council will be kept apprised as developments occur.
Staff is therefore recommending a 9.9% rate increase for 2008 along with $40.5 million of
debentures for the 2008-2017 capital program. This is the same rate increase for 2008 that was
presented during last year's budget process.
The graph below illustrates historical and recommended projected rates from 1998-2017. As
the graph indicates, a 9.9% rate increase is proposed for 2008 to 2013, with a 6.9% rate
increase thereafter. These increases will be reviewed as part of future years' budget
processes. The planned increase in 2007 for the period of 2008 to 2011 was 9.9% annually
and from 2012 to 2016 it was 6.9% annually.
Regional Municipality of Waterloo
Water Rates (1998-2017)
1.4000 -
1.3000
'D 1.2000
4-1
a)
E 1.1000 -
1.0000 -
0.9000
0.8000
0.7000
a)
4-1
M 0.6000
0.5000
777_7�
0.4000 1
(:b% r!) fob Q, N(b N'� K NI D Nq) A
I"q Noi e re r6s re re rp (-f rf� rf rf (fl, rp rp rp r6l rp rp rp
= Actual Rates 2007 Projected rates A 2008 Projected rates
428810 -Section 4-
alTIOV0 I
k4 &A TA I A "OL
INFORMATION: WASTEWATER TREATMENT
Operating
The proposed 2008 Operating Budget is increasing by 12.8% over the previous year's budget.
The two main areas of increase are due to the biosolids operating strategy (see budget issue
"Water Services — Biosolids Strategy") which has added $430,000 to the budget, and the
establishment of a wastewater monitoring program (see budget issue "Water Services —
Wastewater Process Monitoring") which added $570,000.
Capital
The proposed 2008-2017 Wastewater capital program is $493.9 million. The total increase to
the capital program is $45.6 million over the 2007 budget. There are two main areas that are
causing increases to the capital forecast and these are Biosolids Upgrades to the major
treatment plants, and the major process upgrade to the Kitchener Wastewater Treatment Plant.
These projects have been identified as priorities by staff and Council.
np-hp-nti irp--q
To finance the increase in the capital program, total proposed debenture financing has
increased to $136 million from $77 million in 2007. There has been no debentures issued for
wastewater capital projects since 1993 when debentures were issued for work done on the Galt
Wastewater Treatment Plant. This debt was fully paid in 2003 and there is no outstanding debt
at this time.
r_1 R r. A
As part of the 2004 budget, Regional Council approved incorporating 100% of the Region's
share of the GRCA levy into the Water and Wastewater budgets. The GRCA budget
submission indicates a 6.9% increase in their municipal levy requirement which has been
accommodated in the Wastewater and Water budgets.
Rate
The wastewater rate is recommended to increase by 14.9% to $0.5112 per cubic metre ($2.32
per 1,000 gallons) in 2008.
As reported last year, the exact impact that provincial legislation such as the Sustainable Water
and Sewage Systems Act (Bill 175) and the Nutrient Management Act will have on future rates
remains unknown at this time. Staff is waiting for the regulations under these Acts to be issued
to understand how the Region's wastewater system will be affected. Council will be kept
apprised as developments occur.
429418 -Section 4-
INFORMATION: WASTEWATER TREATMENT CONT'D
Staff is recommending a 14.9% rate increase for 2008 along with $136 million of debentures for
the 2008-2017 capital program. This is the same rate increase for 2008 that was presented
during last year's budget process.
The graph below illustrates historical and projected rates from 1998-2017. As the graph
indicates, a 14.9% rate increase is proposed for 2008 to 2010, a 9.9% rate increase for 2011
and 2012 with a 6.9% rate increase thereafter. These increases will be reviewed as part of
future years' budget processes. The planned increase in 2007 for the period of 2008 to 2010
was 14.9% annually and from 2011 to 2016 it was 6.9% annually.
Regional Municipality of Waterloo
Wastewater Rates (1998-2017)
1.2000 -
1.1000
40
a) 1.0000
E 0.9000
0.8000
0.7000
0.6000
0.5000
40
0.4000 -
0.3000 -
0.2000 -
CIJ
Q, NN Nr� Nrb NtK N Co NA
N N
N4, N4, (f, (f, rp rp
= Actual Rates 2007 Projected Rates 2008 Projected Rates
429418 -Section 4-
Water Distribution - ODeratin
The proposed 2008 operating budget is increasing by 7.4% which includes a wholesale water
purchase increase of 9.9%. Minor adjustments were made to the 2008 Water Distribution
operating budget to accommodate increased costs in watermain maintenance, valve repairs and
lab analysis.
Water Distribution - Capital
The proposed 2008-2017 Water Distribution capital program is $2.65 million. This is an
increase of $125,000 from the 2007-2016 capital program which reflects the addition of a meter
replacement project in 2017.
Water Distribution - Rate
The 2008 water distribution rate is recommended to increase by 9.9% to $1.15 per cubic metre.
This is the same rate increase for 2008 that was presented during last year's budget process.
Wastewater Collection - Operating
The proposed 2008 Wastewater Collection operating budget is increasing by 12.6%. The
increase is primarily due to the increase in wholesale wastewater collection and treatment.
Wastewater Collection - Capital
The proposed 2008-2017 Wastewater Collection capital program is $2.27 million. This is an
increase of approximately $482,000 from the 2007-2016 capital program which reflects the
replacement of a sanitary sewer main in 2017.
Wastewater Collection - Rate
The 2008 wastewater collection rate is recommended to increase by 9.9% to $1.04 per cubic
metre. This is the same rate increase for 2008 that was presented during last year's budget
process.
429495 -Section 4-
Summary
The following chart compares the 2007 water distribution and wastewater collection user rates
to the area municipalities.
2007 Water and wastewater Rates —Area Municipalities
(per m3)
429495 -Section 4-
Water
Wastewater
User Rate
Monthly Charge
User Rate
Monthly Charge
Kitchener
$1.1827
no monthly chg
$1.1900
no monthly chg
Waterloo
$1.0200
$2.42
$1.0100
no monthly chg
Cambridge
$0.9620
$5.25
$0.9265
$3.11
Woolwich
$1.0300
$13.00
$1.2700
$13.00
Wilmot
$1.0012
$4.00
$1.1303
$4.38
Wellesley
$1.0500
$3.00
$0.9500
$3.00
North Dumfries
1 $1.0500
$3.001
$0.9500
$3.001
429495 -Section 4-
CITY OF KITCHENER
2008 BUDGET ISSUE PAPER
ISSUE: #34 — System Maintenance Costs
FUND: Operating Fund
DEPARTMENT: Financial Services
PREPARER: Saleh Saleh, Senior Financial Analyst
BACKGROUND:
On January 14, 2008, Council requested that staff clarify the current and future budgets for
financial and infrastructure management system maintenance costs.
RATIONALE / ANALYSIS:
Current budget (2007) available for existing systems:
INS 49,636
Financial System 551880
105.516
Proposed budget for 2008 includes maintenance costs for the two existing systems which will
still be operational in 2008, plus the phased in maintenance fees for the new Corporate
Financial Infrastructure Management System (Delta).
INS 1191636
Financial System 1581880
278.516
Proposed budget for 2009 of approximately $365,516 includes maintenance contract costs for
the first full year of implementation with the new Delta system in place.
Delta 365.516
The increased budget is due to the following:
• New systems are more sophisticated, comprehensive and complex;
• Maintenance contracts were reduced on old systems recognizing that they would not be
in use long -term; and
• There is currently no support provided under the existing maintenance agreements.
Support forms part of the new maintenance agreements.
FINANCIAL IMPLICATIONS:
N/A
RECOMMENDATION:
N/A
IIII IIII 'uu IIII ���9,
CITY OF KITCHENER
2008 BUDGET ISSUE PAPER
ISSUE: #35 — Winter Control Costs
FUND: Operating
DEPARTMENT: Community Services - Operations
PREPARER: Jamie Mahony, Senior Financial Analyst
BACKGROUND:
During operating budget discussions on January 14th 2008, Council directed staff to provide a
summary cost history for winter control.
RATIONALE / ANALYSIS:
Below is the requested summary cost history for winter control with budget figures.
Five Year Winter Control Costs Summary With 2008 Budget Figures
Actual Budget Variance
2003 $ 313781467 $ 218541109 $ 5241358
2004 $ 311351261 $219511225 $ 1841036
2005 $ 3,741,282 $311381135 $ 603,147
2006 $ 2,414,855 $312481092 $ (833,237)
2007 $ 413071471 $313791601 $ 9271870
2008 $316391864
Please note that 2006 was an unseasonably mild winter and that the 2007 actual number is not
finalized. The 2008 budget includes the growth provision but not the new initiative for hours of
work funding (issue paper #16).
FINANCIAL IMPLICATIONS:
N/A
RECOMMENDATION:
N/A
CITY OF KITCHENER
2008 BUDGET ISSUE PAPER
ISSUE: #36 — Corporate Strategic Directions — Financial Management
FUND: N/A
DEPARTMENT: Financial Services
PREPARER: Dan Chapman, Director of Financial Planning & Reporting
BACKGROUND:
During the review of the operating budget on January 14, 2008 Council members requested a
copy of the City's Corporate Strategic Directions — Financial Management as well as the
minutes from the meeting at which they were originally presented to Council.
RATIONALE / ANALYSIS:
In 2004, as part of an ongoing series of meetings related to strategic initiatives and directions
being taken by the City, the Treasurer presented the Corporate Strategic Directions — Financial
Management to Council. The strategic directions are as follows:
• Invest and manage assets strategically
• Ensure the effective and responsible stewardship of public funds within a supportive
policy framework
Strive for competitive, rational and affordable taxation levels
• Ensure corporate fiscal targets are consistently met
• Maximize value through cost effective service delivery
• Explore new sources of sustainable revenue
• Ensure openness and transparency of City finances
The direction for "strive for competitive, rational and affordable taxation levels" contains the
following additional detail:
• All input factors are taken into consideration when setting tax rates, such as:
• Consumer Price Index
■ Inflationary increases unique to municipalities
• Comparison to other municipalities
• Balance levels of service provided with taxpayers' willingness and ability to pay
The minutes of the Council meeting are attached.
FINANCIAL IMPLICATIONS:
M
W=I
RECOMMENDATION:
N/A
IIII IIII 'uu IIII ���9,
SPECIAL COUNCIL MINUTES
SEPTEMBER 20, 2004 CITY OF KITCHENER
A special meeting of City Council was held at 2:41 p.m. this date, Chaired by Mayor C. Zehr and with
all members present except Councillors G. Lorentz and J. Gazzola.
Notice of this special meeting had been previously given to all members of Council by the City Clerk
pursuant to Chapter 25 (Council Procedure) of the Municipal Code.
Moved by Councillor C. weylie
Seconded by Councillor B. Vrbanovic
"That an in- camera meeting of City Council be held immediately following this special meeting to
consider a potential litigation matter and two matters subject to solicitor - client privilege."
Carried.
C. Ladd, Chief Administrative Officer, advised that this strategic planning session is part of a series of
meetings that have been held over the past two and a half years to allow discussion on various
strategic initiatives and directions being taken by the City.
P. Houston, General Manager of Financial Services & City Treasurer, gave a presentation on the
Corporate Strategic Directions - Financial Management, outlining the services provided and the City's
current strategic position with respect to financial management. Ms. Houston noted that the City has
a lower assessment per capita than the Provincial average ($73,245. vs. $86,938.). G. Stewart,
General Manager of Development and Technical Services, questioned whether this lower
assessment needs to be addressed with the intent of increasing assessment within the City. It was
agreed that assessment levels should be investigated further to ascertain if there are ways to
increase the assessment in the City. Ms. Houston provided two graphs showing the tax rate and
inflation increases from 1993 - 2904 and the total weighted assessment growth for the same period.
She noted that the estimated assessment growth for 2005 is 1.68 percent. Mayor C. Zehr pointed out
that the large decrease of assessment growth noted on the graph in 1998 was partly caused by the
number of vacant buildings and Brownfield properties at that time and that staff should review the
assessment amount of current vacant buildings and be cognizant of this effect in the future.
Ms. Houston then reviewed the current strategic initiatives under the Financial Management Program
and the work plan for new initiatives. Councillor M. Galloway asked if the Internal Auditor position has
been filled and how this will have a bearing on the work plan. Ms. Houston responded that the
position has been filled and the responsibilities will include a comprehensive service level
assessment, corporate fees, a comprehensive costing system (activity based costing), a
comprehensive performance system and process mapping. Ms. Houston then provided a review of
the 2005 budget targets. Councillor Galloway requested that the budget information be provided to
members of Council sooner than it has been in the past and specifically 10 business days. Ms.
Houston responded that staff will provide the information as soon as possible and will make every
attempt for the 10 days. Mayor Zehr inquired about the GST credit shown as part of the 2005 budget.
Ms. Houston responded that with the changes to the GST program, it is a one -time credit which will
not appear after the 2005 budget.
R. Browning, Interim General Manager of Strategic Services & Economic Development, provided an
overview of Strategic Services Department report SSD -03 -035, dated September 6, 2004, regarding
an update on restructuring of the Economic Development Division. Mr. Browning noted that the
Economic Development Division was still in transition but moving forward. He advised that staff are
working with Woolwich Township and the Region on the feasibility of providing services to the lands
located north of Breslau. Mayor Zehr advised of a Regional report regarding the East Side Lands and
the need for the City to have input into this development. C. Ladd suggested that staff meet with
Council to discuss the City's position on development of these lands taking into consideration the risk
in using the City's servicing capacity in developing these lands.
R. Browning advised that the Economic Development Division will be moving into the Business
Enterprise Centre located on the Main Floor of City Hall as part of the restructuring plan. Mayor Zehr
pointed out that it was important that Economic Development maintain its connection and
communication with the Development and Technical Services Department and, in particular, the
service offered to developers with respect to facilitating the development process. C. Ladd advised
that although the development process will be revisited, the role of a facilitator in this matter will not
be removed. Councillor M. Galloway questioned the restructuring of the Economic Development
Division and Council's direction in this matter. He pointed out that in 2002 the City underwent a
SPECIAL COUNCIL MINUTES
SEPTEMBER 20, 2004 -319 - CITY OF KITCHENER
general re- organization of the departments in order to align services and create synergies between
departments and he raised a concern whether the proposed restructuring would create problems in
this regard. Mayor Zehr suggested that C. Ladd and R. Browning provide Council with the
information that was presented to Council previously on the proposed Economic Development
Division restructuring.
Councillor B. Vrbanovic advised of the need to make business attraction a priority with Economic
Development especially with the Kitchener Downtown Business Association. He added that there is a
need to be proactive in assisting property owners in finding appropriate tenants for their vacant
properties. C. Ladd advised that the Canadian Technology Triangle (CTT) has been requested to
progressively market the Kitchener Downtown as a means of attracting new development for
businesses in the pharmacology and bio- technical fields. She further advised that staff will report to
Council on the strategies to be put in place for attracting and retaining businesses in the City of
Kitchener.
C. Ladd provided an update on the Leadership Initiative which began in June 2004 and advised that a
Leadership Training Program has been developed for the next level of management staff. Ms. Ladd
invited members of Council to offer thoughts on leadership behaviour which could then be part of the
Leadership Training Program. R. Browning provided Council with the quarterly progress report on the
Shared Agenda, progress report on Asset Management and on the City's infrastructure. Councillor
M. Galloway pointed out that under growth management in the Shared Agenda, the review of by -laws
and assessment of community design issues shows only 5 percent complete and questioned whether
this particular initiative has been given the priority it deserves. G. Stewart advised that a report will be
presented to the Development and Technical Services Committee in October and pointed out that the
5 percent listed on the agenda may be incorrect and should be higher. Mr. Stewart advised he would
look into the status of this initiative and provide that information to Council.
C. Ladd provided a schedule of public sessions and reports to Standing Committees 1 Council
advising this schedule will provide Council and staff with a list of priority reports and presentations
and when they will be made to Council or one of the Standing Committees. She further advised that
the schedule will be updated regularly. Councillor B. Vrbanovic requested that when the schedule is
updated that it be attached to the Council weekly events schedule in order to keep members of
Council apprised of these important dates.
On motion, the meeting adjourned at 4:40 p.m.
MAYOR CLERK
CITY OF KITCHENER
2008 BUDGET ISSUE PAPER
ISSUE: #37—FTE Summary Information
FUND: N/A
DEPARTMENT: N/A
PREPARER: Dan Chapman, Director of Financial Planning & Reporting
BACKGROUND:
Subsequent to operating budget review, a Council member requested a summary of core
complement and FTE counts over the past four years with a comparison to population.
RATIONALE / ANALYSIS:
Attached is a copy of the City's core complement and FTE counts from 2003 to 2007. It should
be noted that minor methodology changes were made to the counts for some contract,
temporary and seconded positions in 2007 which results in minor differences when compared to
2006 total counts.
FINANCIAL IMPLICATIONS:
N/A
RECOMMENDATION:
N/A
O M O O O O M 0 0 O M O � M I` M CD O O N d') CD "t 0 0 M N d) 00 � 0')
O I` O O O O 00 r 0 0 O O O CD N O N � 0 0 M M O CD O O M N 00 d7
00 Ln N = N � I` CO N M d) O LO O I` O 00 = CD 00 d7 N N 00 M d7 M I` CM O N
+� = N M d) LO N I` N LO M r N LO M N M= M O LO
0 N N
N O O CD I` O � 0 0 qql- O M't N CD M � 0 0 0 M CD LO LIB O O I` N I` �=
O N O LO CD O M N O M O CO I` I` O= O= 0 0 O= 00 O O Ltd O O d7 ti
CC) CD N d7 = M 0) CD Nlql- O� O 4 I` 00 O d) ti CC) 6 07 N N Ln M O N ti 4 ti N
N N d') LO N (C) N M N LO N M= CO d) O
0 N N 1:11
M N O N M O LO I� O M O (D O Mi;l- M I` � ti CO Ltd (C) d) O O N CD CD LO LO
M N O � I` O O M O CD O LO CC) I` 00 O CD Iql- CC) Iql- ti M LO O I` CC) M N (C) ,I-
P` � N I` r 0) E N O di CD 4 Lii 00 N � CC) ql- r I` M � M O N Ltd M M E
N N 0) 1� N CD LO � � CM LO � N M � CO d) CD
0 N N �
O N O M I` O LO I` O I` O m O Ltd M M 00 M O 07 = CF) O 07 Ltd I` = d')
O O 00 CD O O CD O I� O= O LO O M It M O N I� I` O N M M M N M
-E CD V- N CD r 4 00 I` N 00 6 ti 4 ti CC) M 6 O 4 00 N M 4 M ti V- 4 N V- 4
N N 0) It N CD O = r N Lid = N M= M CY) CO
0 N N
F-
0)
O
N
O
N
V-
N
ti
CD
ti
CD
0
C/) N
O
O O O >
O N
+r O }' _ > c cn 06 cn
O O
O
}' V
j }' O O O U U_
L O E O O O M C� '> cn E '>
i L U L
�_ N
��
� �
i�
L 0
O N
_O O E E O N U oZj O }' O O
m N i O O O.— U '> s` p (n
Q
(a
O—
O
_
p > O i O cn L O N +� 1_ O
— +r O O to O U O> Q >
06
06 �
C) :3
O Q 0
• U U O � Q O. L -0 2 t6 � }' O to �
O Ur O
2 0- 0-
O ��
-0 •� -�
Q O •O
O
�U
0 CD CD
_
Z U +� -C
`� O (� —_ O (n O — L s` —
0 -p J .0 .0. •� N •� 'O
U
a--j O
F O CD
J
O
•� O O O O
c O O U (a O `� O O '� O • L (�
�UUOw1:a_mLLCD —i -10 C) UOQmLuL�a-
t6 t6 O L> ±= J
U O: N A,
L
LU L
LL
_ 1 1 1 1 1 1 1 1 1 11� ' 1^ /I /I 1 1 1 1 1 1 1 1 1 1
Q a Q Q Q Q Q n n w VJ w n n � FL FL FL FL FL
' /� /� /� /�
n n n n O
LM
O O O
LL`-'
UUUUUUUUUUUUUUUUUU00000LLLLLLLLLLLLLL
a_ U�
CITY OF KITCHENER
2008 BUDGET ISSUE PAPER
ISSUE: #29.2— Investment Income
FUND: Operating
DEPARTMENT: General Revenue
PREPARER: Roger LeBrun, Manager of Financial Planning & Reporting
BACKGROUND:
Subsequent to the Finance and Corporate Services Committee meeting on January 14, 2008,
staff were asked to provide historical yield and balance details for the City's investment
program.
RATIONALE / ANALYSIS:
The chart below identifies the average balance and average interest rate earned for the
operating fund investment amount for the last three years and budget amounts for 2008.
Year
Average Rate
Average Short
Term
nvestment
Balance
I nvestment
Income
2005
2.63%
$74M
$1.9M
2006
3.97%
$79M
$3.1 M
2007
4.40%
$68M - $78M
$3.OM - $3.4M
2008
3.24%
$70M
$2.2M
*Note: Calculations for 2007 have not been finalized so an estimate has been provided.
Subsequent to the preparation of issue paper #29.1 staff has noted that short -term interest rates
have continued to fall and the yield projection for 2008 is now approximately 25 basis points
below the initial projection of 3.70% to 3.95 %. There is considerable uncertainty related to
future interest rates given current economic conditions, but it is possible that the Bank of
Canada may become aggressive with future rate cuts depending on how developments in the
U.S. economy unfold and whether financial market confidence remains in question.
FINANCIAL IMPLICATIONS:
N/A
RECOMMENDATION:
N/A
IIII IIII 'uu IIII ���9,
CITY OF KITCHENER
2008 BUDGET ISSUE PAPER
ISSUE: #35.1—Winter Control Costs
FUND: Operating
DEPARTMENT: Community Services - Operations
PREPARER: Jamie Mahony, Senior Financial Analyst
BACKGROUND:
Subsequent to the review of the operating budget, a Council member asked staff to provide the
number of "full plow" incidents for the City of Kitchener in 2006, 2007 and 2008 to date.
RATIONALE / ANALYSIS:
Below is the number of "full plow" incidents that have occurred in 2008 to date and from 2007
back to 2004.
FINANCIAL IMPLICATIONS:
N/A
RECOMMENDATION:
N/A
Snow
Events
FINANCIAL IMPLICATIONS:
N/A
RECOMMENDATION:
N/A
CITY OF KITCHENER
2008 BUDGET ISSUE PAPER
ISSUE: #38 — Annual and Minor Sport Grants
FUND: Operating
DEPARTMENT: General / Community Services
PREPARER: Jamie Mahony, Senior Financial Analyst
BACKGROUND:
Council directed staff to calculate savings if recipients of Annual and Minor Sport Grants
received 0% or 1 % increases versus the 2% interim Community Investment Strategy guideline.
RATIONALE / ANALYSIS:
As shown on the Annual Grant Percentage 2008 Increase spreadsheet (attached), the potential
savings resulting from reducing the increase from 2% to 1 % is $11,499 and from 2% to 0% is
$23,000. Annual Grants for recipients that have disbanded, are not performing in Kitchener or
are not close to the 2% increase have been excluded from the potential savings analysis.
As per the Minor Sport Grant Percentage 2008 Increase spreadsheet (attached), the potential
savings resulting from reducing the increase from 2% to 1 % is $2,463 and from 1 % to 0% is
$4,927. Due to a previous 2004 Council decision to leave the Kitchener Minor Hockey Grant
increase at 2 %, it has been excluded from the Minor Sport Grant potential savings analysis.
As an alternative, should Council wish to reduce grant budgets, staff recommends that Council
reduce the general provision grants budget rather than reducing core operating for other
recipients. It should be noted that a portion of the 2008 general provision is pre- committed.
Staff recommends that consider reducing the budgets for those groups which have disbanded
or are not performing in Kitchener as follows:
Kitchener Citizens Beautification Committee $21305
Waterloo County Quilt Festival 21706
Festival of Trees 51610
K -W Opera 7,803
18,424
FINANCIAL IMPLICATIONS:
A 2% reduction in all grants as outlined above would yield $27,927 in savings which translates
to 0.03% on the tax levy. A 1% reduction in all grants would yield $13,962 in savings which
translates to 0.02% on the tax levy. Eliminating grants for groups which have disbanded or are
not performing would yield $18,424 in savings which translates to 0.02% on the tax levy.
RECOMMENDATION:
THAT the following grants be eliminated from the 2008 budget for a net levy savings of
approximately 0.02 %:
Kitchener Citizens Beautification Committee $21305
Waterloo County Quilt Festival 21706
Festival of Trees 51610
K -W Opera 7,803
18,424
IIII IIII 'uu IIII ���9,
4-
C
O
E
a
N
U
C
C
O
E
a
cn
c�
U
C
O T C) Lt) Lt) C) C) IT It 00 M O O It O � M M O N N M O M O M co O LO M 1` O N O LO 00 O O O LO 00 N m M O
1` M L() 1` N L() � L() N IT ti IT CD IT Lt) IT O N O IT O r 00 O CA CD N LO CD N LO 1` � LO LO - O
1` � N M N 00 1` LO � M M 00 M
a) a) a) a) a) a) a) a) a) a) (1)
U U U U U U U U U U U
X X X X X X X X X X X
W W W W W W W W W W W
C) r C) O O O O 00 1` CD 1` O O 00 O N 1` CD O IT IT tD LO O M tD O O M LO O IT C) C) tD O O O O CD It 00 CD O
IT tD O Lt) L() O N O IT CA It 00 N 00 O w M LO O 00 O N CD O 00 CV N LO r CV) N N r N qT N r— N M O
� � � � � N IT ce) 00 LO N I` it � (D S O N N M 1` M M 1` r CD
M N � CO � V- r
u
0 0 0
i O Cf) O C
O CA O C
j N N C
O O C
j N O C
f) V-- C
f r, Co L()
f LI
)I
O O O C
O CD O c
O O O C
f I` CO L() C
/•-
fl. I
W 0 [
Lu mac
U 0 U �
{
< 0 U)
U) L J
� Lu U)
O O r
O V r
00 00 00 C
U) U) U) C
Z Z Z
a a a
a a a
Z Z Z
Z Z Z
faaa<
0- 0- 0- c
xxx�
W W W L
Z Z Z
W W W L
rn rn rn (
N N N C
f r r r e
• CA CA CA (
• I` I` I` I'
0 0 0 (
u c
3 Z
3
< )
J LJ
O O O tD O C
3 0 0 0 Cf) O c
3 C) C) C) C) N Lf
LO LO O V- r C
3 CD LO � O L() C
r- N L() � L() C
7
7 0 0 0 0V- C
7'O O O N O (:
7 L() L() O O V- C
I` N L() � LO C
r
0- -
(_
Z W
30 Z
� L
W F
0wp 0c
�c
W Z a W L
a U = r
7�0I cc
0-zCO
= Y
Uo Z O C
Un�w;
of 0 W L
W = 5 � a F
rJ --- m�LL`_
J CO IT LO CD N C
-- � � � N C
3 00 00 00 00 00 C
It- V- V- It- It- It
(n (n (n (n (n C
' Z Z Z Z Z
Caaaaa
C,aaaaa�
' Z Z Z Z Z
ZZZZZ:
caaaaa
0- 0- 0- 0- 0- c
xxxxx�
J W W W W W L
' Z Z Z Z Z
J W W W W W L
�'rnrnrnrnrnc
J N N N (N N C
'} CA CA CA CA CA {
O O O O o c
3 � Z
3 U
< X )
J W LJ
0 0 0 0 0 o o a
r) O O O O C) O O Q
r) O O O C) C) O O U
, N N N N LC) N N '^
) 1` Cf) 1` O Cf) O 00 C
7 O CD 00 00 S1' N 00 C
CD N CD 00 0) LO CD Lf
+l N 00 P- CD cl• CD G
� �
7'O M O 0 O O C
CD O� C) C) O O C
M 00 M O Chi O IT C
V 1` r� 00 N � c
m
W U
)' 0 z
J � O
aura
� U U
J O O
J U) U)
J (1)
W U a a
J 0 ~ U �
=a0�w
oo a
J ° W W
J Y W W
-
- = =a
U U
UYYY
IT LO CD 1`
J N N N N
3 00 00 00 00
U) U) U) U)
Z Z Z Z
aaaaa
? C7 C7 C7 C7
J J J J J
aaaaa
Z Z Z Z
ZZZZ
aaaaa
0- 0- 0- 0-
xxxx
J W W W W
Z Z Z Z
J W W W W
� rn rn rn rn
J N N N N
} CA CA CA CA
ti ti ti ti
O O O O
0
a
U
O
U)
Um
0- p
O U
U
� U)
D W
ri� = L
p U
00 O (
N N C
00 00 C
r r t
U) U) C
� � F
Z Z
a a
C7 C7
a a
Z Z
Z Z
aac
xx
W W L
Z Z
W W L
C� C�
rn rn
N N C
Cf) Cf) {
O O c
3 Z
3
< )
J LJ
0 0 0 0 0 0 0 `a
? O O O O O O O C
? O O O O O O O C
N N N N N N N C
O V- N L() O V- V- C
O Cf) CD CD O 00 O C
1` Lf) O V- V- N V- h
U-) V O M U-) O C
M N r 00 1` L() �
O N LO Cf) O O O C
O CD O O O O U
7 O r 00 00 O N N (!
- U) d) N O V- O C
' M N 00 1` L()
r
J
ry-"
W
p�
J
W
w
J � �
LU za o�
W p fl� LL �.
�
O OU w _
m U = Z
< O
Z O = 0-
- UZtl
m�UZ� U
�Zz00u):
°��Oa�UW-
�w2 J Z
ct 0Z0�
'moo =<0 - = <
°°�J()�W W-
rw00-U)Uja.�
=Q`
r N CO V- Li) CD 1` e
?'M M M M M M M e
3 00 00 00 00 00 00 00 C
)(n(n(n(n(n(nU)c
Z Z Z Z Z Z Z
a a a a a a a
?C7 C7 C7 C7 C7 C7 C7(
aaaaaaac
Z Z Z Z Z Z Z
ZZZZZZZZ
�aaaaaaa
1 1 1 1 1 1 1
0- 0- 0- 0- 0- 0- 0- c
;xxxxxxx;
J W W W W W W W L
''ZZZZZZZ:
J W W W W W W W L
) 0) 0) 0) 0) 0) 0) 0) c
J N N N N N N N C
} CA CA CA CA CA CA CA C
3 0 0 0 O O O O c
3 U U
< X X )
J W W LJ
1 \°, S° \o \° \° \° \° \° \° \°
0 0 0 0 0 0 0 0 0 0 0
O C0 C) N O 0 C) 0 C) 0 C)
7 C) C) C) O O O O O O O O C
J N O N N N N N N N N N
7 CD O C) Cf) 1` O N V- O O 00 C
O L(•) e- Lt) r O V- M N L() — C
M I`- W O V- N N V- O M CD e
L() r 00 O CD N CD U
O M
7 O C) C) 00 N O 1` 00 C) C) C)
) O L() C) M LO O LO O O O C)
7 M r` - Lt) O N O N M O m Cf)
J Lt) - 00 O Cf) CD , N L()
� M M
Q z
a J � J
J H 0— 0 Z W
_ >
J z
0 —I (•7 ~ J
WZrr. zQ °p
Of 0 C) CD U p U Z
LU � � U)
LL, U) J
ZW�OUC)W Wa�� 0 U)
)ZW W��p °<C U)
Z
�
0 0 < 0
o-j JQaz -j
ry < =0 Lui >�0 < < J0�0
J
Z d w w = w a 0 c
Do
}0 LL YUUf -0� Y<
V- L[) CD ti 00 CA r N Cl) 'IT LO C
7 00 CO 00 00 00 00 00 00 00 00 00 C
(n CJ U) (n (n (n (n (n (n (n (n C
Z z Z Z Z Z Z Z Z Z Z
aaaaaaaaaaa
0�LLtL0� 0� 0� 0� 0� 0� 0�0[
?(D(D(DUUUUUUUU4
,aaa ;aaaaaaaa
Z Z Z Z Z Z Z Z Z Z Z
Z Z Z Z Z Z Z Z Z Z Z
aaaaaaaaaaa
1 I 1 ,..' 1 1 1 1 1 1 1 1
0- n n 0- 0- 0- 0- 0- 0- 0- 0- c
ISO x x x x x x x x x x x ISO
J W UJ W W W W W W W W W L
'ZZZ'ZZZZZZZZ
J W W W W W W W W W W W L
(D (D (D (D C � C � C � C � C � C � C � t
rn� o rn rn rn rn rn rn rn rn
J N N N N N N N N N N N C
) CA C37 Cf) CA CA CA CA CA CA CA CA {
OC) C)OOOOOOOOc
D a) a) c
3 U U
< X X )
J W W LJ
\° 1 \° \° \° \° \°, `0-01 \° \° \° \° \° \° \° ``
0 0 0 0 0 0 0 0 0 0 0 0 0 o a
. N O M O r C) C) M M O M O O O CA C
O O Cf) O Cf) O O C) m O m O O O Cf) c
> N N r N N O M r N r N N N r C
M O N O M CD C) C) CD O CD r O V- 1` C
D CD N CO V- CO N O CD NV- N O N N r C
1` N O L() r O 1`•- O M O N CA N O C
r CD r N CD O M r 1` r P- L() T- L() h
N M 00
r
14T O 00 O CO O C) C0 CD O (D r it C) M C
M O O O N— O C) O O O M O O r V
1` O N O LO 00 CO C) O O O IT 00 N m C1
r CD r N M O 00 r 1` r M U') r a h
N 00 r 00
r
Z
O
CD U
w�
U �
�Wa 0U)
O
W Q = U � z
= W J z W W
Z 00 a L,J
0°oz�C)
�Dw�w-3
zO�z�
p LL O O z w
z OJ �
0 afl� Z of z
_ U � w J o °
(J) 1 J 0- J
Y O >
3 1` 00 0) O r N
LO LO LO CD CD CD
3 00 00 00 00 00 00
U) U) U) U) U) U)
Z Z Z Z Z Z
a a a a a a
? C7 C7 C7 C7 C7 C7
J J J J J J J
a a a a a a
Z Z Z Z Z Z
ZZZZZZ
aaaaaa
;xxxxxx
J W W W W W W
''ZZZZZZ
J W W W W W W
) 0) 0) 0) 0) 0) 0)
J N N N N N N
} CA CA CA CA CA CA
ti ti ti ti ti ti
0 0 0 0 0 0
OVA
r
�
a U)
� p
Q O1
O `
U
a U ll�
> W 0
Z pp ,
(j?U) Z=
= >- W = U) LLJ
Of F--- w c
OzcnW a =_
m a z � w 0
Q2u)0 .<<L
U Q j 0�� C
Z O U)
Y U �O=0 YeU-
CV V- 1` r r CV Lf) C
I` I` 1` 00 � N N C
00 00 00 00 O O O C
� V- V- V- V- V- V- It
(n (n (n (n (n (n (n C
Z Z Z Z Z Z Z;
a a a a a a a
a a a a a a a
Z Z Z Z Z Z Z
Z Z Z Z Z Z Z;
aaaaaaac
xxxxxxx;
W W W W W W W L
Z Z Z Z Z Z Z
W W W W W W W L
0) 0) 0) 0) 0) 0) 0) c
N N N N N N N C
Cf) Cf) Cf) Cf) Cf) Cf) Cf) {
ti ti ti ti ti ti ti r
O O O O O O O c
D
3
3
3
<
J
O O
7 O O
J N N C
O
E
a
O O O
M CD cn
M L
U
C
(a
O
7 O O
O O
M O
..'' O
M
+z
;w
Y
�a
m�
w
'pc)
J LO 1`
M M
O CA
- TIM, TIMM
Z Z
;aa
J,a a
Z Z
ZZ
�aa
J W W
Z Z
J'W W
� rn rn
J N N
O O
� ti M LO LO N m O M LO M O M 00 O 0 M O N Iq 00 O LO O ti O Iq N Iq
:3 Iq cM N N M N Cfl O LO LO N � � M M � M M 0 I- I- � M � O LO LO N
p N N N co Ir- Ir- Ir- Ir-
E
Q °
N �
m Q 4-j
N U
U X
W
U') N O O� 00 O O H O Cfl Cfl O � I` O 00 CO 0 0 0 0 d') � ti
m ti LO LO 0 V) N O� N CO CO I� N CO CO N LO � M (fl M O O O Iq
p U') N N � (fl CO N N N
E
Q °
O N
m Q
� U
U X
W
O o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
v
v
N
ti
d7
cn 0 0 0 0 0 0 0 O O O O O O O O O O O O O O O O O O O O O O
M 0 0 0 0 0 0 0 CD O O O O O O O O O O O O O O O O O O O O O
N N N N N N N N N N N N N N N N N N N N N N N N N N N N N
U
o a--
MU-) 0 0� M O N M CD U-) O N 0 CD O M M 0 0 0 0� 0 0 U) N p
M M�U') MU-) N� M � M�� M M� ti M� O�� M M M CD U') M O
+� M O U) U) N M U) N ti 0 M N M M� 0 M M N f` M U) O M N U) N C4
0) I I N N CO N Cfl M O LO V) N M M M M CO I� I� CO O LO LO N
- N N MM N M � I N
in
m co
00 L
O
O —
N �
O
� CO 0 0 0 0 0 tO N 0 0 0 C4 0 0 0 Iq 0 Iq LO 0 0 0 0 0 0 f` LO
Iq N 0 0 0 0 0 r%_ I` O m O � 0 0 I- Iq O 00 I` 0 0 0 0 0 0 Iq 00 LO
0) ti Cfl U') U') N d') O I`- LO U') N O co 00 C) U') M O � M CO O LO O I- O Iq � CO
0 Iq CO N N CO N Cfl mt O LO LO N M M � M M Cfl f` f` � CO O LO LO N
m lqr
ti
O
O
N
4 T t�
m • L
_ > cu a- i
cu N > S2 O O
0 0 1 O O
O U O O % c� N L _
p .O •— c� N U N O O cn p c
—�� p�� a� �� wO� p� a� 0 0
— --
oZ o
N O O N '+� � U U N U O
m m O •— N O� O= M Co — O .— O m 1 `-C O O O Q Q L-
m m m o U- U- CD _ �e _3 0 z 0� o� cn cn C/) cn cn cn cn cn cn cn I O
CITY OF KITCHENER
2008 BUDGET ISSUE PAPER
ISSUE: #39 — Expenditure Reduction
FUND: Operating
DEPARTMENT: General
PREPARER: Bernita Stever, Senior Financial Analyst
BACKGROUND:
Several Council members have indicated an interest in considering across - the -board expense
reductions in the 2008 budget as a strategy to reduce the potential levy impact. Examples
include: 50K$ per department, 0.5% in all discretionary spending and a 1 M$ general reduction.
RATIONALE / ANALYSIS:
Appendix 1 shows the expenditures for discretionary cost categories in 2008. It is important to
note that discretionary lines include some non - discretionary items such as bad debts expense,
postage, vehicle, computer and equipment maintenance, etc. Therefore, the maximum savings
from a one percent reduction in discretionary spending is calculated as $164,675. If non -
discretionary items such as postage are eliminated from the analysis, the true potential
discretionary savings is reduced to $42,752 at the rate of 1 %.
It should be noted that the budget call inflation factors for discretionary spending have been
already been held constant for the past 3 years with no adjustment for inflation which is a
reduction in spending of 6.1 % in real terms for these budget lines.
In August 2007, net departmental budgets were projected to be overspent by 0.4M$, primarily
due to a 0.4M$ variance from an increased number of winter events in the first half of 2007. At
that time it was felt that, overall, departments were on target to meet budgets with no
appreciable positive variances (excluding the winter events). This demonstrates, as validated
through the intensive administrative review process, that there is negligible capacity in existing
budgets. As a result, an across - the -board reduction would have a direct impact on the service -
delivery capacity of City departments.
FINANCIAL IMPLICATIONS:
N/A
RECOMMENDATION:
N/A
IIII IIII 'uu IIII ���9,
Appendix 1
City of Kitchener
2008 Tax-Supported Operating Budget
Base Inflation Projection
. .. . . . ... .
. . .
axe , iF, in"
.
.... ..
W, 0, at,
... . . . .... . .. ... . . . . . . .
. .
i A111111 i
,15*is In, etvt
Iscre'lo'ha T
. .....
To 'ram
ki"
a ion"
S
No
S, gl
0
0 bj ect of Expe nd i to re:
Salaries
4813181831
3.7%
117871797
50,106,628
Wages
2116801369
3.7%
802,174
2214821543
Adm in istrative Expenses
418251486
0.0%
0
418251486
1
418251486
Equipment Reserve Charges
518521701
3.0%
175,581
610281282
Boa rd s
913391944
3.0%
280,198
916201142
Debt Expense
415411532
0.0%
0
415411532
Materials and Supplies
418051544
0.0%
0
418051544
1
418051544
Professional & Contract Services
3,653,866
0.0%
0
3,653,866
1
3,653,866
Rentals & Leases
111101668
0.0%
0
1,110,668
1
111101668
Grants Paid
215021811
2.0%
501056
215521867
Promotional Costs
112801339
0.0%
0
112801339
1
112801339
Repairs & Maintenance
7911626
0.0%
0
791,626
1
7911626
Utilities &Taxes
513671643
5.0%
268,382
516361025
Transfers to Other Funds
1116021298
2.1%
247,129
1118491427
I nterna I Charges
310651059
3.0%
91,952
311571010.77
Internal Recoveries
(10,1691
3.0 0
(305, 09+8 0)
(10,474,771)
Total Expenditures
118,56% 036
1
3� 398J 7
121,967,214
16,467,529
1% of Maximum Total Discretionary Spending
164 675
Assumptions
1 No increases included for discretionary expenditures -will necessitate efficiency gains
CITY OF KITCHENER
2008 BUDGET ISSUE PAPER
ISSUE: #40 — Kitchener Power Corporation Dividend
FUND: Operating
DEPARTMENT: General
PREPARER: Dan Chapman, Director of Financial Planning & Reporting
BACKGROUND:
Subsequent to operating budget review, Council members asked for additional information on
how the Hydro and Gas utilities owned by the City of Kitchener might enable tax rate increase
relief in 2008. A separate issue paper addresses the potential within the Gas utility and this
issue paper relates to the Hydro utility.
RATIONALE / ANALYSIS:
The City of Kitchener owns 92.25% of Kitchener Power Corporation, the holding company for
Kitchener - Wilmot Hydro Inc. The investment is comprised of the following as of December 31,
2006:
Common Shares $61.2 million
Long -term Note (KWH) $71.0 million
Share of net income, net of dividends received $26.1 million
Total $158.3 million
The City receives a return on investment by way of interest on the long -term note (rate of 6%
per annum) and dividends ($1.8 million in 2007 for 2006). These amounts are transferred into
the Hydro Capital Investment Reserve Fund and then allocated to the operating and capital
budgets, as outlined below:
2006 2007 2007 2008 2009 2010 2011 2012
Actual Budget Projected
Revenues
Kitchener Power Corp. Dividend
11477
11710
11753
11710
11710
11710
11710
11710
I nterest on Long Term Debt
41609
41259
41259
41259
41259
41259
41259
41259
Atria Debt Repayment
11938
0
0
0
0
0
0
0
Atria Sale Proceeds
0
41600
41614
0
0
0
0
0
Interest income
21
8
9
122
71
7
18
48
81044
101577
101635
61091
61040
5, 9 76
51987
61017
Expe nd itu res
Transfer to Operating
750
750
750
750
750
750
750
750
Transfer to Capital
51610
71285
71285
41800
81400
51400
41500
41500
Provisional - Environmental Fun(
0
21000
21000
0
0
0
0
0
61360
101035
101035
51550
91150
61150
51250
51250
Net Revenue (Expense)
Balance beginning of year
11684 542 600 541 (3,110) (174) 737 767
552 21237 21237 21837 31378 268 94 831
Balance end of year 21237 21779 21837 31378 268 94 831 11598
The current dividend represents a return of 2.0% on the net book value of the City's investment
in Kitchener Power Corporation. Expressed differently, the current dividend represents 19.9%
of the City's share of average net income for the previous fiscal year.
A number of other Ontario municipalities have developed dividend policies for their Hydro
utilities based on a percentage of net income, most commonly at the rate of 50 %. If Kitchener
Power Corporation had paid a dividend at the level of 50% of net income the additional revenue
would have ranged from $1.1 million to $2.6 million annually over the past three years. Any
sustainable increase in the dividend would enable an increased transfer to the operating budget.
Hydro Dividend Analysis
The City's shareholder agreement for Kitchener Power Corporation indicates:
s.1.3(c)(ii) —The Shareholders expect that the Board will establish policies to... provide the
Shareholders with a reasonable return... through the payment of dividends, interest or
otherwise.
s.2.1(i) - ...the Board shall be responsible for... the establishment of appropriate reserves and a
dividend policy consistent with sound financial principles, all with the intention of providing the
Shareholders with a reasonable rate of return on their investment while maintaining reasonable
rates for customers.
Staff is not aware of a dividend policy for Kitchener Power Corporation. However, the
subsidiary company, Kitchener - Wilmot Hydro Inc. has a policy to pay dividends to the parent
company up to a maximum of 40% of the net income of the previous year at the Board's
discretion subject to the recommendation of the CEO and CFO.
The City has not yet received a dividend payment from Kitchener Power Corporation based on
2007 financial results. However, unless the dividend rate was to be adjusted there is likely not
potential to provide sustainable tax rate reduction through increased earnings from Hydro in
2008. That being said, Council could consider addressing this issue with Hydro during 2008 in
advance of the 2009 budget and dividend payment.
FINANCIAL IMPLICATIONS:
As discussed above
RECOMMENDATION:
For discussion
2006
2005
2004
Net book value of investment
Common shares
6112441000
61,244, 000
6112441000
Sh are of n et i nco me
2611051000
18 , 795, 000
1413221000
8713491000
80 , 039, 000
7515661000
Net income (City share)
817871000
5,223, 000
316931000
Dividend declared (paid year subsequent)
117521750
114761559
7501000
Dividend as % of N BV
2.0%
1.8%
1.0%
Dividend as % of net Income
19.9%
28.3%
20.3%
Increase if dividend = 50% of net income
216401750
111341941
110961500
The City's shareholder agreement for Kitchener Power Corporation indicates:
s.1.3(c)(ii) —The Shareholders expect that the Board will establish policies to... provide the
Shareholders with a reasonable return... through the payment of dividends, interest or
otherwise.
s.2.1(i) - ...the Board shall be responsible for... the establishment of appropriate reserves and a
dividend policy consistent with sound financial principles, all with the intention of providing the
Shareholders with a reasonable rate of return on their investment while maintaining reasonable
rates for customers.
Staff is not aware of a dividend policy for Kitchener Power Corporation. However, the
subsidiary company, Kitchener - Wilmot Hydro Inc. has a policy to pay dividends to the parent
company up to a maximum of 40% of the net income of the previous year at the Board's
discretion subject to the recommendation of the CEO and CFO.
The City has not yet received a dividend payment from Kitchener Power Corporation based on
2007 financial results. However, unless the dividend rate was to be adjusted there is likely not
potential to provide sustainable tax rate reduction through increased earnings from Hydro in
2008. That being said, Council could consider addressing this issue with Hydro during 2008 in
advance of the 2009 budget and dividend payment.
FINANCIAL IMPLICATIONS:
As discussed above
RECOMMENDATION:
For discussion
CITY OF KITCHENER
2008 BUDGET ISSUE PAPER
ISSUE: #41 Tax Stabilization Reserve Fund Options
FUND: Reserve Funds
DEPARTMENT: General
PREPARER: Bernita Stever, Senior Financial Analyst
BACKGROUND:
Council members have asked staff to consider the potential to transfer amounts from capital
accounts and reserve funds into the Tax Stabilization Reserve Fund in order to mitigate the
property tax increase for 2008.
RATIONALE / ANALYSIS:
In 1981, the Tax Stabilization Reserve Fund was established to mitigate the annual tax rate
impact of non - recurring, extraordinary revenues and expenses. At the end of 2008 the balance
is projected to be $0.5 million. Deficits are projected beyond 2008. The question to be
answered in this paper is - "what amount of transfer into the Tax Stabilization Reserve Fund is
required in order to avoid a deficit in the fund and also potentially permit deferral of the reduction
of reliance on the fund in 20087"
The transfers to the operating budget have been reduced from 5.1 M$ in 2004 to 1.8M$
(projected) in 2007, primarily as a result of the rationalization of transfers in 2005 and the move
to budget for supplementary taxes starting in 2007. A further reduction of $458,500 each year is
currently recommended starting in 2008 to avoid a deficit in the fund. Tables I and II on page 2
show projected balances for the fund based on potential additional transfers into the fund in $ 1
million increments if transfers to the operating budget were reduced $458,500 per year starting
in 2008 or 2009 respectively. If the $458,500 per year reduction in transfers begins in 2008,
then $0.8 million of additional revenue from other reserves would be required to eliminate the
projected deficits. If the reductions start in 2009, then $2.6 million of additional revenue would
be required to eliminate the deficits. Staff will have an interactive projection available on
final budget day that can be used to model the impact of various scenarios.
RPnnhmarkG
The credit rating agency standard for stabilization reserve balances as a percentage of total
expenditures is 5% to 10 %. Using the credit rating benchmark and the City's 2007 budgeted
expenditures, the target for the tax stabilization reserve fund would be $5.9 million to $11.9
million. Staff recommend that these benchmarks be used as a long -term target since
maintaining an appropriate balance ensures that the City has sufficient funds to address a major
snow event, community emergency (e.g., flu pandemic, flood, ice storm, etc), economic
downturn (low supplementary taxes, high write - offs), environmental issue, etc. Staff notes that
proposed transfers into the Tax Stabilization Reserve Fund, while increasing the balance, will
not reach the target minimum. As such, extending reliance at the current level for an additional
year exposes the City to greater risk in the areas identified above.
The transfer of other reserve balances into the Tax Stabilization Reserve Fund in order to
provide property tax increase relief will reduce the overall balance of reserves and reserve
funds. This is problematic in that the 2006 financial review identified that the City had a
reserves and reserve funds balance per household of $550 compared to the comparison group
median of $1,032 per household. In view of the City's infrastructure pressures, increasing
IIII IIII 'uu IIII ����,
CITY OF KITCHENER
2008 BUDGET ISSUE PAPER
ISSUE: #42 - Computer Reserve Fund
FUND: Reserve Funds
DEPARTMENT: Financial Services
PREPARER: Saleh Saleh, Senior Financial Analyst
BACKGROUND:
This issue paper has been prepared in response to Council's request to determine if there is
any excess capacity in the Computer Reserve fund which can be used to reduce computer
charges or be transferred to the tax stabilization reserve fund.
RATIONALE / ANALYSIS:
The computer reserve fund has been used to purchase and replace computer hardware.
Currently, the replacement cycle for computers is five years. Below is a projection of the fund:
338095
2003
Final
2004
Final
2005
Final
2006
Final
2007
Projected
2008
Projected
2009
Projected
2010
Projected
Contributions from Revenue Fund
741,754
747,291
766,416
733,291
747,859
761,110
776,332
842,859
Other Revenue
840
187
Transfer to Election Reservve
- 37,000
Transfer to New Financial System
- 103,000
- 103,000
Transfer from Telephone Reserve
70,000
70,000
71,400
0
0
0
0
Interest Income
9,871
11,419
20,819
27,871
24,042
29,731
31,588
33,615
TOTAL REVENUE
822,465
828,897
858,635
724,162
771,901
687,841
704,920
876,474
TOTAL EXPENDITURES
- 675,861
- 634,654
- 636,785
- 867,695
- 630,000
- 642,600
- 655,452
- 719,561
NET REVENUE (EXPENDITURE)
146,604
194,244
221,849
- 143,533
141,901
45,241
49,468
156,913
Fund 0 penin g B al an ce
122,951
269,555
463,799
685,648
542,115
684,016
729,256
778,724
Fund Closing Balance
269,555
463,799
685,648
542,115
684,016
729,256
778,724
935,637
It is anticipated that the majority of the surplus funding will be needed for upgrades to servers
for the new Consolidated Maintenance Facility over a number of years, and therefore there is no
excess capacity. At this point in time, no specific estimate is available with respect to how much
funding will be required.
FINANCIAL IMPLICATIONS:
I N/A
RECOMMENDATION:
I N/A
IIII IIII 'uu IIII ���9,
CITY OF KITCHENER
2008 BUDGET ISSUE PAPER
ISSUE: #43-Telephone Reserve Fund
FUND: Reserve Funds
DEPARTMENT: Financial Services
PREPARER: Saleh Saleh, Senior Financial Analyst
BACKGROUND:
This issue paper has been prepared in response to Council's
request to determine if there is
any excess capacity in the Telephone Reserve fund
which can be used to reduce telephone
charges or be transferred to the tax stabilization reserve fund.
RATIONALE / ANALYSIS:
A key purpose of the telephone reserve fund is to finance
the cost of implementing
a new
telephone system. Below is the projection for the fund.
2003 2004 2005
2006
2007
2008
2009
2010
338004 Final Final Final
Final
Projected
Projected
Projected
Projected
Contributions from Library 12,000 12,000 12,000
12,240
17,485
12,734
12,989
13,249
Depa rtm ent Charges 783,193 778,034 755,635
734,724
747,469
764,066
779,347
794,934
Interest Income 11,587 19,225 16,304
28,675
41,262
54,328
68,189
83,450
Mise 6,233 4,283 2,857
2,527
TOTAL REVENUE 813,013 813,542 786,796
778,166
801,217
831,128
860,525
891,633
Telephone Charges, Reserve (353,809) (390,674) (354,645)
(350,715)
(357,729)
(364,884)
(372,182)
(379,625)
Long Distance Charges (11,337) (11,185) (8,429)
(10,553)
(10,765)
(10,980)
(11,199)
(11,423)
Other Costs (46,448) (56,943) (124,964)
(27,902)
(70,398)
(71,806)
(73,243)
(74,707)
Capital Costs (42,867) (24,168) (23,065)
(31,047)
(24,480)
(24,970)
(25,469)
(25,978)
Telephone Upgrade 178,815
Telco Analyst and Consultant (124,078)
Telco Analyst (92,746) (85,931)
Call Centre
(30,000)
Corporate IVR (7,089)
-24,811
Revised Telephone Upgrade (35,633) (290,014)
Transfer to Computer Reserve (70,000) (70,000) (71,400)
-
-
-
-
TOTAL EXPENDITURES -505,357 -935,730 -675,524
445,028
463,372
-502,640
-482,093
-491,735
NET REVENUE (EXPENDITURE) 307,656 -122,188 111,271
333,138
337,844
328,488
378,432
399,899
Fund Opening B al an ce 253,395 561,051 438,862
550,134
883,271
1,221,115
1,549,603
1,928,036
Fund Closing Balance 561,051 438,862 550,134
883,271
1,221,115
1,549,603
1,928,036
2,327,934
Funding accumulated in this reserve fund will be put towards the future purchase of a new
telephone system to provide better customer service and therefore there is no anticipated
excess capacity. However, at this point in time, no specific estimate is available with respect to
how much funding will be required.
FINANCIAL IMPLICATIONS:
N/A
RECOMMENDATION:
N/A
CITY OF KITCHENER
2008 BUDGET ISSUE PAPER
ISSUE: #44- Equipment Reserve Fund
FUND: Reserve Funds
DEPARTMENT: Financial Services
PREPARER: Saleh Saleh, Senior Financial Analyst
BACKGROUND:
This issue paper has been prepared in response to Council's request to determine if there is
any excess capacity in the Equipment Reserve fund which can be used to reduce equipment
charges or be transferred to the tax stabilization reserve fund.
RATIONALE / ANALYSIS:
A key purpose of the equipment reserve fund is to fund the costs of purchasing and replacing
existing equipment. Below is an updated projection for the fund.
Equipment Reserve Projection
Actual
Actual
Projected
Projected
Projected
Projected
Projected
Projected
3 3705 5
2005
2006
2007
2008
2009
2010
2011
2012
Revenues
Transfer from Revenue Fund
Equipment Fleet Rentals
7,520,870
8,243,420
8,573,262
9,091,984
9,273,824
9,459,300
9,648,486
9,841,456
Other Revenues
364,945
384,636
422,275
466,000
475,320
484,826
494,523
504,413
Operating Expenditures
(5,689,898)
-6,387,690
(6,709,817)
(7,183,950)
(7,327,629)
(7,474,182)
(7,623,665)
(7,776,139)
2,195,917
2,240,366
2,285,720
2,374,034
2,421,515
2,469,945
2,519,344
2,569,731
Depreciation /Capital Expenditures & Auction F
2,202,689
2,196,341
2,357,985
2,374,034
2,421 ,515
2,469,945
2,519,344
2,569,731
Investment Income
235,541
361,012
288,073
229,771
215,112
171,096
140,664
125,100
Contribution from Capital Fund
100,344
146,354
148,959
152,000
154,000
157,000
161,000
161,000
Contribution from Gas
35,468
105,000
106,900
110,000
112,000
113,000
115,000
117,000
Contribution from Water
17,734
52,500
53,683
54,101
55,183
56,000
57,000
58,000
Contribution from Sewer
17,734
52,500
53,683
54,101
55,183
56,000
57,000
58,000
Contribution from De Charges
274,000
279,000
284,800
291,000
296,000
302,000
308,000
315,000
445,280
635,354
648,025
661,202
672,366
684,000
698,000
709,000
Expenses
Permit System
100,000
100,000
Equipment Replacement current year
1,195,695
2,626,242
3,521,201
2,490,078
3,265,050
3,972,515
2,587,747
3,265,529
Equipment Approved Prior Year
1,259,658
Snow Melter/Tractor
114,188
403,340
Contingency (replacements)
130,050
132,651
135,304
138,010
140,770
143,586
Equipment Upgrades /New Equip
647,180
661,202
672,366
684,000
698,000
709,000
Reserve Transfer /for Under /Over Billings
- 322,210
147,317
873,485
2,887,747
6,061,429
3,383,931
4,072,719
4,794,525
3,426,518
4,118,115
Opening Balance
6,774,691
8,784,716
9,089,676
6,322,330
6,203,406
5,439,679
3,970,194
3,901 ,685
Ending Balance
8,784,716
9,089,676
6,322,330
6,203,406
5,439,679
3,970,194
3,901,685
3,187,400
Funding accumulated in this reserve fund is put towards the future purchase and replacement of
equipment. Currently, the accumulated depreciation on active equipment is $19,763,225. The
target for the minimum fund balance is at least 50% of accumulated depreciation, or
$918811613. Within the accumulated depreciation balance, approximately $13M worth of
equipment is fully depreciated, but has had replacement years deferred as the equipment is still
in good working condition. With projected fund balances ranging from $6.2 million in 2008 to
$3.2 million in 2012, the fund is below the minimum target and therefore there is not any excess
capacity available for re- allocation.
FINANCIAL IMPLICATIONS:
N/A
RECOMMENDATION
2XT/_1
IIII IIII 'uu IIII ���9,
CITY OF KITCHENER
2008 BUDGET ISSUE PAPER
ISSUE: #45 — Working Capital Reserve Fund
FUND: Reserve Funds
DEPARTMENT: General
PREPARER: Bernita Stever, Senior Financial Analyst
BACKGROUND:
Subsequent to the presentation of the operating budget some Council members have
questioned whether or not the Working Capital Reserve Fund is still required in whole or in part.
Council members have expressed an interest in potentially utilizing the balance to fund tax
increase relief through the Tax Stabilization Reserve Fund.
RATIONALE / ANALYSIS:
In common with most other municipalities, the City has maintained a Working Capital Reserve
Fund for many years to reduce the need to borrow externally during times of negative cash
positions. In 1987, it was recommended that the balance should be maintained at 2.5% to 3%
of gross current expenses of the City of Kitchener of the immediately preceding year. At that
time, cash balances in the months of December, January, and February were negative as
payments were required prior to the collection of tax revenue in March. The purpose of the fund
was to provide cash for those months when cash balances are negative and high interest costs
are incurred. At as the end of 2007, the working capital reserve fund balance is $4.7 million.
An analysis of the last 5 years shows that cash balances in December, January, and February
were positive and were greater than $5 million. Therefore, the balance in the Working Capital
Reserve Fund has not been required to provide cash and eliminate the need for temporary
borrowing. A major factor which contributes to maintaining positive balances in those three
months is a $6 million deposit at the beginning of each month for taxpayers on the Equal
Payment Plan. Other factors which reduce the need for the fund include lower interest and
overdraft costs, and overdraft protection, in the event temporary borrowing is required in the
future.
FINANCIAL IMPLICATIONS:
The $4.7 million balance in the Working Capital Reserve Fund could be transferred to the Tax
Stabilization Reserve Fund. This would benefit taxpayers as it would increase the capacity for
transfers to the operating budget out of the Tax Stabilization Reserve Fund. Eliminating the
fund would result in an estimated reduction of general fund investment income of $188,000
annually, as all interest on working funds is credited to general fund investment income.
RECOMMENDATION:
THAT "Council Policy 1 -770 — Reserve Fund — Working" be repealed and the Working Capital
Reserve Fund eliminated;
THAT the balance of $4,704,750 in the Working Capital Reserve Fund be transferred to the Tax
Stabilization Reserve Fund;
AND FURTHER THAT the budget for investment income be reduced by $188,000 in 2008 to
offset the reduced general fund investment balance associated with this transfer.
CITY OF KITCHENER
2008 BUDGET ISSUE PAPER
ISSUE: #46 — Capital Transfers
FUND: Operating
DEPARTMENT: General Expense
PREPARER: Ruth-Anne Goetz, Senior Financial Analyst
BACKGROUND:
Council has requested further information on the possibility of using funds, that were previously
set aside for capital works and for certain reasons are no longer required, towards lowering the
operating budget request and thus providing levy relief.
RATIONALE / ANALYSIS:
The following provides a brief discussion on capital funds that Council thought could be used to
curb the capital out of current expense in the operating budget, in order to reduce the estimated
tax increase.
Cultural Capitals of Canada
The City of Kitchener's application for this program was unsuccessful. Funds were set aside
for this program, over a 3 year period starting in 2007, amounting to $667,000 in total.
Currently, $150,000 of this funding is in a capital account, and can therefore be closed to capital
surplus. In addition, $250,000 is budgeted in 2008 for this initiative that could be closed to
capital surplus in 2008. The third year of the program is budgeted in 2009 in the amount of
$267,000. Staff recommends retaining the 2009 allocation to enable the cultural community to
explore alternative partnerships throughout the Region and the private sector.
Capital Surplus
Currently, there is a balance of approximately $1,282,000 in the capital surplus account. Of
this, $830,000 has been allocated to fund the capital pool, leaving a balance of approximately
$452,000 available for other capital uses. However, it should be noted that committing capital
surplus to tax rate reduction will reduce the City's ability to respond to urgent or emergency
capital needs. At present, a balance of approximately $170,000 is projected for 2008 in the
City's capital contingency account, which is very low.
Federal Gas Tax
The Municipal Funding Agreement, which oversees the Federal Gas Tax program, requires
recipients to ensure that the funds received result in net incremental capital spending on
municipal infrastructure, and that there is no reduction in capital funding provided by
municipalities for municipal infrastructure (section 3.1.b and c. of the funding agreement).
Therefore, funds received by the City must be used to support capital infrastructure projects,
and the City cannot fall below the "base amount" of capital funding on infrastructure works.
Municipal Infrastructure Investment Initiative
If the City is successful in obtaining this grant, the program guidelines specify that the funding is
available for capital investments in municipal infrastructure, and that operating costs of
municipally owned infrastructure assets are ineligible for funding. However, the City will not
know whether our application has succeeded until the end of March. As the purpose of the
program is to support the construction or renewal of municipally owned infrastructure assets, it
would be imprudent to apply any funds that were previously allocated to the capital project for
which funding is being sought, to the operating fund.
FINANCIAL IMPLICATIONS:
Reducing the capital out of current request in the operating budget is not sustainable, as the
amount will have to be increased two-fold in the following year to sustain the existing capital
program. However, Council could consider transferring the excess 2007/2008 Cultural Capitals
funding ($400,000) and capital surplus funding ($452,000) to the tax stabilization reserve fund to
assist with tax rate increase mitigation in 2008. A subsequent issue paper provides detail with
respect the impact of potential adjustments within the tax stabilization reserve fund.
RECOMMENDATION:
THAT the 2007 and 2008 Cultural Capitals of Canada allocations in the amount of $400,000 be
closed out to capital surplus in 2008;
THAT capital surplus in the amount of $852,000 be transferred to the tax stabilization reserve
fund in 2008;
AND FURTHER THAT the 2009 capital budget allocation for Cultural Capitals of Canada be
maintained to enable the cultural community to further discuss alternative partnerships that
would result in a major cultural event in 2009.
1. That the 2008 department operating budget, resulting in a 2008 levy for general purposes of
$83,683,528 be approved.
2. That an increase in the 2008 tax rate, excluding tax policy changes, be approved at an estimate of
5.24%.
3. That a special capital levy of $5,369,176, which results in a 0.70% increase in the 2008 tax rate to be
allocated to the Economic Development Investment Fund, be approved, with the understanding that
this levy represents the fifth year of the 10 -year investment program ,as per the projection included in
the budget day presentation to Council.
4. That assessment growth be budgeted at 2.03% for 2008.
5. That, in 2008, a $50-00 tax credit pursuant to the
Program be approved, but that no new names be ad
6. That the following 2008 budgets for municipal
Enterprises
Building Division
Fleet Division
Doon Golf Course
Rockway Golf Course
Water Utility
Sanitary Sewer Utility
Gasworks Utilitv
7. That the following n
Ar
.Lion
Managemen,
rium Tickets
Building, Enterprise
Business Parks
Computer
Development Charges
Election
Equipment
Fagade Improvements
Federal Gas Tax
Gas Capital Investment
Golf Cart Replacement
Hydro Capital Investment
Insurance
LEAF
Maint. Facility Expansion
Market
Mediation
Oktoberfest Float
V%. .1_ 1: - A .-J.
Revenues
$ 47,1577278
($000's)
7
261
5
410
(11)
45
(117200)
104
(119)
(4)
(875)
(43)
541
(18)
17076
166
6
(1)
,ipal Elderly RE
the present list.
is Assistance Credit
Surplus(Deficit)
$ 391,586
$ (1777045)
$ 74,232
$ 279,411
$ (171787911)
$ 28.906
ved for reserve funds in 2008:
WSIB 11
Working Capital
-
(14, 657)
8. That the following 2008 local board operating budget appropriations be approved:
Kitchener Public Library Board $8,4157545
Centre in the Square $173197027
9. That Economic Development Grants be approved in the amount of $240,500 for 2008 as follows:
11. That the mileage rate per kilometre be incre
$0.39 for each additional km thereafter.
12. That the following FTE changes be approved:
$0.44 for the first 5,000'klm:,and remain at
E
vith expenditures in the years 2008-2017
14. That Capital out of Current funding be included in the Capital Forecast for the year 2008 totalling
$36,913,000 for General City and $25,754,000 for City Enterprises.
15. That a total of $4,051,000 of debenture financing be approved for 2008 as follows, for a term not to
exceed 10 years:
Project
Duke/Ontario Garage Repairs - DT
Delta Project
Fire — Major Equipment/Fleet
($000's)
17025
176611:
47051
Project ($000's)
University of Waterloo School of Pharmacy — 8,900
Capital Grant
87900
17. That the following projects included in the Capital Forecast for 2008 be financed from the
Development Charges Reserve Fund:
Engineering Projects
Planning Studies
Heritage Impact Assessments
Grand River South Pumping Station
Freeport Pumping Station Upgrade
City Share of Subdivisions
DC Study
Intensification Allowance
Engineering Studies
Borden Greenway Trunk Sewer
Idlewood Creek
Strasburg Road
Blockline Rd. East
New Watermains
New Community Arena/Twin Pads
Major Park Development_:
General Park Development,
Community Trails
Trail Crossings
Equipment Acquis''itions/Upgrades:
Consolidated Maintenance Facility
Bridgeport CC
18. That the follo"011
development ch
($000's)
39
22
200
950
above 'noted projects will be commenced unless there are sufficient
evelopment Charges Reserve Fund to complete them; otherwise the
J financed by the appropriate developers.
is included in the Capital Forecast for 2008 be front-end financed with a
dit:
Projects with Development Charge Funding —Front End Financing with Credit
($000's)
Grand River South Sewage Facility 1,081
Mid/South Strasburg Trunk Sewer 2,977
47058
19. 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.