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HomeMy WebLinkAboutFinance & Corp - 2003-01-13 SFINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 13, 2003 CITY OF KITCHENER The Finance and Corporate Services Committee met this date in special session, commencing at 10:15 a.m., chaired by Councillor B. Vrbanovic with the following members present: Mayor C. Zehr and Councillors M. Galloway, J. Gazzola, J. Smola and C. Weylie. Councillor G. Lorentz entered the meeting shortly after its commencement. Others Present: Ms. P. Houston, Ms. G. Luciantonio, Ms. A. Tanner, Ms. S. McMorran, Ms. M. Walshe, Ms. D. George, Ms. S. Franzen, Ms. S. McDonald, Ms. M. Brennan, Ms. T. Crawford, Ms. S. Adams, Ms. R. Pitfield, Ms. B. Baker, Ms. L. Bansen, Ms. C. Ladd, Ms. F. Currier, Ms. J. England, Ms. K. Kugler, Ms. D. Gilchrist, and Messrs. J. Fielding, R. Pritchard, G. Sosnoski, G. Stewart, F. Pizzuto, J. Grant, R. Browning, D. Trask, K. Baulk, D. Mansell, J. McBride, G. Borovillos, M. Hauser, M. Bolger, B. Musselman, L. Proulx, B. MacDonald, S. Saleh, R. Weber, R. Gosse, S. Turner, J. Witmer, M. Hildebrand, R. LeBrun, M. Grummett, M. Tout, J. Willmer, D. Hergott, and D. Chapman. 1. 2003 OPERATING BUDGET Mr. J. Fielding introduced the 2003 Operating Budget by advising that changes in legislation and the economy have brought about changes in revenues and expenses for municipalities. Between 1992-2002, the Corporation has reduced its costs by $12M, while continuing to maintain service levels. During this period, revenues have also been reduced and at a greater rate resulting in a shortfall that has been made up through the Tax Stabilization Reserve Fund. In 2003 there will still be a shortfall of $5.2M which will be covered from the Tax Stabilization Reserve Fund; however, a dependence of this magnitude on the Reserve Fund, over the long term, is not sustainable. Staff will be exploring long term solutions, including: reduced capital spending, salary management, and service level review, among other things. Ms. P. Houstson advised that a 1% increase in taxes for a typical household in the City of Kitchener equates to a $7.62 increase in the tax bill, and the overall tax increase proposed by staff is 2.9%, including 0.7% for services the Committee may wish to add to the Budget. Ms. Houston then reviewed the proposed tax rate increases for the next 3 years, being 2% per year, and the corresponding reductions required in the budget to reach this target. Boards Ms. Houston then presented the 2003 Operating Budget for the Centre In The Square and the Kitchener Public Library, noting an additional $40,000. is being requested for the Stanley Park Library. Ms. M. Walshe advised the $40,000. represents the cost of additional staff for this library. Questions were raised concerning efficiencies that were anticipated by combining this library with the school library, and Ms. Walshe noted that the greatest efficiencies totalling $389,000., were achieved through capital expenditures, as the City did not have to pay for the land. Efficiencies were also achieved in janitorial services and the cost of the collection. Ms. Walshe was directed to provide a report for budget day showing the actual operating budget for the Stanley Park Library including identification of efficiencies achieved. On motion by Councillor C. Weylie - it was resolved: "That the 2003 Operating Budgets for the Centre In The Square and Kitchener Public Library be approved as submitted; subject to receipt of a report at the January 20, 2003 Budget Meeting from the Kitchener Public Library on operating costs for the Stanley Park Library and actual savings achieved." Ms. Houston then reviewed the summary of tax levy changes and inflation / base adjustments reflecting those fixed costs which have risen in excess of the rate of inflation, such as fringe benefits. The Committee then considered the list of services they may wish to add to the 2003 Operating Budget. Each service was voted on separately. 1. 2003 OPERATING BUDGET (CONT'D) FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 137 2003 -8- CITY OF KITCHENER Humane Society Spay / Neuter Proqram On motion by Mayor C. Zehr - it was resolved: "That consideration of adding $66,000. to the 2003 Operating Budget for the Spay / Neuter Program be deferred and referred to the January 20, 2003 Budget Meeting pending a report from staff advising as to whether the City of Waterloo has approved their portion of the costs for this program, and submission of criteria to determine the success of the Spay / Neuter Program." Canada's Technolo,qy Trian,qle The Committee then considered the request of Canada's Technology Triangle for increased funding of $14,000. for each of 3 years, for a total contribution of $134,000 per year. On motion by Councillor C. Weylie - it was resolved: "That the City of Kitchener contribute $134,000. to Canada's Technology Triangle in 2003, with future contributions to be reviewed at the end of 2003. General Provision and Operatin,q Grants On motion by Councillor J. Smola - it was resolved: "That an increase of $112,000. to General Provision and Operating Grant funding in 2003 be approved." Tax Miti,qation On motion by Mayor C. Zehr - it was resolved: "That $25,000. in funding be approved for the Tax Mitigation Program; with this program to be reviewed at the end of 2003." Tourism Councillor J. Gazzola put forward a motion to add $71,000. to the City's Tourism Budget for 2003 which would exclude the requested budget for Regional Tourism. The motion was voted on and lost. On motion by Mayor C. Zehr - it was resolved: "That $116,000 be added to the City's Tourism budget for 2003, subject to receipt of a report from staff on or before the January 20, 2003 Budget Meeting, comparing the tourism services proposed by staff and the current tourism services contracted by the City." This meeting of the Finance & Corporate Services Committee recessed at 12:15 p.m. and reconvened at 1:15 p.m. with all members present. Business Enterprise Centre It was noted that Ms. K. Smith had attended the January 6, 2003 Finance & Corporate Services Committee meeting to request additional funding of $50,000. in 2003. Ms. Houston advised that an accurate 2003 operating budget for the Business Enterprise Centre will be provided on 2003 OPERATING BUDGET (CONT'D) FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 137 2003 -9- CITY OF KITCHENER January 20, 2003. It was noted that the Business Enterprise Centre is a net revenue source for the City as they pay rent for the space they occupy. On motion by Councillor J. Smola - it was resolved: "That an additional $50,000. be allocated in 2003 for the Business Enterprise Centre; subject to receipt of their 2003 operating budget and detailed information on their revenue sources. Kids Park On motion by Councillor M. Galloway - it was resolved: "That an additional $16,000. be approved in 2003 for Kids Park." Watercourse Cleanin,q On motion by Councillor C. Weylie - it was resolved: "That $52,000. be approved in 2003 for Watercourse Cleaning." It was determined by the Committee that Watercourse Cleaning is an increase in service levels, and staff were directed to amend their report for the January 20, 2003 Budget Meeting to show this increase in service levels. Downtown Cleanin,q Noting that Sunday garbage pick-up in the downtown is not undertaken by the Region and is a cost of $12, 000. to the City of Kitchener, the Committee directed staff to discuss elimination of this service with the Kitchener Downtown Business Association (KDBA) before final budget consideration on January 20, 2003. Staff were requested to invite Mr. Schreiter of the KDBA to the January 20, 2003 Budget Meeting. Staff were also directed to report on the possibility of shift work rather than overtime for clean-up work in the Downtown on Saturdays and Sundays. It was noted by staff that if Sunday garbage pick-up is eliminated, there would be no garbage pick- up in Downtown Kitchener between 7:00 a.m. Saturday and 7:00 a.m. Monday, which is the busiest time of the week for Downtown merchants. The Committee then directed that a report be presented on January 20, 2003 outlining what each of the KDBA and the City spend on downtown cleaning, and a comparison of service levels with other municipalities. On motion by Councillor M. Galloway - it was resolved: "That consideration of adding $45,000. to the 2003 Operating Budget for Downtown cleaning be deferred and referred to the January 20, 2003 Budget Meeting." Play,qrounds -Resilient Surface Maintenance On motion by Councillor G. Lorentz - it was resolved: "That $16,000. be added to the 2003 Operating Budget for playgrounds - resilient surface maintenance." 1. 2003 OPERATING BUDGET (CONT'D) FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 137 2003 -10- CITY OF KITCHENER Leaf Collection Following discussion it was generally agreed that the portion of the Leaf Collection Program whereby the City would collect leaves put on City streets by residents be eliminated. Staff where directed to prepare a Leaf Collection Plan as soon as possible, which could include the provision of brown leaf bags to residents for the first year, and additional dumping sites. On motion by Councillor M. Galloway - it was resolved: "That no action be taken to increase the 2003 Leaf Collection Budget by $200,000." Communitech On motion by Mayor C. Zehr - it was resolved: "That 2003 funding to Communitech Technology Association be increased by $30,000.; subject to Communitech receiving proportional increases in funding from the Region of Waterloo and Cities of Cambridge and Waterloo." Traffic Survey Co-op Student On motion by Councillor G. Lorentz - it was resolved: "That $14,000. be added to the 2003 Operating Budget to hire a Traffic Survey Co-op Student, with this position to be reviewed in one year." Minor Sports Grants The Committee considered the minor sports grants and the proposal from the Community Services Department to provide grants equal to 20% of the organizations fixed costs. F. Pizzuto advised that the Community Services Department has undertaken a review of the grant program to find ways to redistribute funds in a more equitable fashion. The recommendation is to establish the grant at 20% of fixed cost which would result in no increase in 2003 for those organizations already at or above the 20% mark. For those organizations below the 20% mark it is being proposed that the increases be spread out over the next 4 years until they have reached the 20% level. Mayor Zehr agreed with the proposal as a means of bringing equity to the grant program and the fact that future increases would be objective rather than a subjective. Councillor Gazzola suggested that like the City, minor sports organizations are also faced with inflation and therefore all groups should receive a 2.2% increase for 2003. He further suggested that for 2003 all the organizations listed on the chart provided by Community Services Department under the column 2003 Increase, receive that amount. Councillor Smola cautioned the Committee that many of the organizations have been complaining about the declining revenues from their charity bingos which may prompt them to return to Council requesting more in the way of grants. P. Houston advised that there were 2 new groups to be added to the grant list, the Track 3 Ski Club and the Conestoga Sailing Club which will add approximately $4,000. to the grant program. On motion by Councillor J. Gazzola - it was resolved: "That a minimum of 2.2% increase in the grants given to minor sports organizations be approved for 2003; and That not withstanding the minimum increase those organizations listed under the column 2003 Increase on the chart titled Option One, attached to the 2003 Operating Budget 2003 OPERATING BUDGET (CONT'D) FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 137 2003 -11- CITY OF KITCHENER Issue Paper - Minor Sports Grants, receive an increase equal to 2.2% or the amount shown on the chart which ever is the greater; and further That the Track 3 Ski Club and the Conestoga Sailing Club be added the list of minor sports organizations receiving grants." Minor Girls Hockey On motion by Councillor J. Smola - it was resolved: "That $36,000. be added to the 2003 operating budget for Minor Sports Grants for the Girls' Hockey Program." The Committee then considered the list of services which could be cut from the 2003 Operating Budget. On motion by Councillor C. Weylie - it was resolved: "That no action be taken to cut the Planning Co-op Student (2 terms) from the 2003 Operating Budget." On motion by Mayor C. Zehr - it was resolved: "That $100,000. be removed from the 2003 Operating Budget for Corporate Advertising and Promotion." On motion by Councillor C. Weylie - it was resolved: "That additional savings in the 2003 Operating Budget of $166,000. be achieved through Salary Management." The Committee agreed not to consider changes to 2003 draws on the Tax Stabilization Reserve Fund until the January 20, 2003 Budget Meeting. Staff advised that as of this point in the budget review a 2.67% tax increase will be required. Ms. Houston then reviewed the 2003 Operating Budgets for the City's Enterprises, Reserves and Reseve Funds. Enterprises Ms. Houston explained the Operating Budget for the Doon Valley Golf Course is based on the current operation and does not include the expansion. With respect to the Gasworks, Ms. Houston advised that the reduced profit in 2002 for gas delivery is a result of the way in which the City tried to 3rotect gas rates last winter. Concerning Water and Sewer rates for 2003 Ms. Houston advised that public notice was given, that 2003 Water and Sewer Rates will be considered at the February 3, 2003 Finance & Corporate Services Committee meeting, with the by-law to adopt the rates being considered by Council on February 10, 2003. 1. 2003 OPERATING BUDGET (CONT'D) FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 137 2003 -12- CITY OF KITCHENER = Reserves & Reserve Funds Ms. Houston then reviewed the Reserves and Reserve Funds. The Committee determined not to consider the additional draw of $100,000. from the Tax Stabilization Reserve Fund until the end of the Budget process. Ms. Houston noted that if the City continues to transfer $3M each year to the Tax Stabilization Reserve Fund from the Gasworks, the fund will be in a sustainable position by 2007. When questioned by the Committee, Ms. Houston advised that the Sick Leave Reserve Fund is moving closer to 25% of liability, which is Council's policy. By the end of 2003 it will be funded at 27% of liability. Final consideration of the 2003 Operating Budget and 10 year Capital Forecast 2003-2012 by the Finance & Corporate Services Committee and Council will take place on Monday January 20, 2003, commencing at 9:00 a.m. ADJOURNMENT On motion the meeting adjourned at 3:33 p.m. Dianne H. Gilchrist Committee Administrator