Loading...
HomeMy WebLinkAboutFinance & Corp - 2003-01-20 SFINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 20, 2003 CITY OF KITCHENER The Finance and Corporate Services Committee met this date in special session, commencing at 9:18 a.m., chaired by Councillor B. Vrbanovic, with the following members present: Mayor C. Zehr and Councillors M. Galloway, J. Gazzola, G. Lorentz, J. Smola and C. Weylie. Others Present: Ms. P. Houston, Ms. G. Luciantonio, Ms. C. Ladd, Ms. C. Legault, Ms. P. Walshe, Ms. S. Adams, Ms. R. Pitfield, Ms. K. Smith, Ms. J. Murphy, Ms. T. Crawford, Ms. D. George, Ms. L. MacDonald, Ms. A. Tanner, Ms. S. Keeping, Ms. D. Gilchrist and Messrs. J. Fielding, R. Pritchard, G. Sosnoski, F. Pizzuto, G. Stewart, H. Gross, B. MacDonald, S. Saleh, J. Willmer, M. Grummett, K. Baulk, M. Bolger, R. LeBrun, G. Borovilos, M. Schreiter, L. Lynch, R. Gosse, D. Mansell, L. Proulx, D. Trask, R. Browning, S. Turner, J. Grant, M. Tout and J. McBride. 1. 2003 OPERATING BUDGET & 10 YEAR CAPITAL FORECAST 2003-2012 Ms. P. Houston provided an overview of the 2003 Budget by reviewing the substantial difference between revenues and expenses over the period 1992-2002. She advised that not withstanding efforts to reduce expenditures over this period, there has been an accumulated shortfall, resulting in a dependence on the Tax Stabilization Reserve Fund. In 2003, a shortfall of $5.2M must be financed through the Tax Stabilization Reserve Fund. Ms. Houston then advised that for the period 1993-2002 the Corporation has maintained a tax levy increase at or below the rate of inflation. She noted that the rate of inflation for 2003 is estimated at 2.5 %, and at this point in the Budget process a 2.67% increase in the tax rate will be required. The Committee then reviewed those Budget items still outstanding from its two previous Budget meetings. Business Enterprise Centre The Committee was in receipt of an Issue Paper concerning the additional $50,000. being requested by the Business Enterprise Centre for its 2003 Operating Budget. It was noted by Ms. Houston that staff are recommending an additional $25,000. for the Business Enterprise Centre in 2003. She noted that in 2002, Council approved a contingent grant of $50,000., which is required by the Business Enterprise Centre. She requested a resolution from this Committee to approve a 2002 grant for the Business Enterprise Centre without condition. This grant will allow the Business Enterprise Centre to handle their shortfalls from 2001 and 2002. Councillor Gazzola questioned whether the additional budget requirement is a result of reduced funding from senior levels of government. Ms. Smith advised that there has been a reduction in funding from the federal government; however, part of the request is in recognition of the increased work done by the Business Enterprise Centre in assisting new or potential merchants in Downtown Kitchener, particularly at the new Kitchener Market. Ms. Smith advised of those services for which there is a charge, but cautioned that there are Downtown clients struggling to start or continue businesses, and new Canadians struggling to start new businesses who could not afford user fees. Mayor Zehr noted advise previously given by Ms. Houston that the approved $50,000. for the Business Enterprise Centre for 2002, was in fact a conditional grant. He suggested the 2002 grant be approved without condition and a contingent grant of $25,000. be approved for 2003, under the same conditions as the previous grant. On motion by Mayor C. Zehr - it was resolved: "That a draw of $50,000 be approved for the Business Enterprise Centre from their 2002 contingent grant." On motion by Mayor C. Zehr - it was resolved: 1. 2003 OPERATING BUDGET & 10 YEAR CAPITAL FORECAST 2003-2012 (CONT'D) FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 207 2003 -14- CITY OF KITCHENER "That a contingent grant of $25,000 be established for the Business Enterprise Centre in 2003; and further, That the Manager of the Business Enterprise Centre obtain approval from the Finance & Corporate Services Committee the first time a draw on this contingent grant is required." Kitchener Public Library & Centre in the Square The Committee then review the 2003 Operating Budgets for the Kitchener Public Library and the Centre In The square. It was noted that the $1.1M Operating Budget for the Centre In The Square represents a 2.2% increase over 2002. The 2003 Operating Budget for the Kitchener Public Library of $6.4M representing a 2.2% increase over 2002, plus an additional $40,000. for staffing at the Grand River Stanley Park Library, resulting in an overall increase of 2.8% for 2003. As requested by the Committee at its January 13, 2002 meeting, Ms. M. Walshe provided two Issue Papers with respect to partnership savings and staffing levels at the Grand River Stanley Park Library. Mayor Zehr stated that the savings achieved due to the partnership at this library should be evident in the Operating Budget. Ms. Walshe advised that the savings allow for cost containment, as they are trying to contain the costs of a growing system. At this time they are trying to project costs for 2004, and through such things as partnerships and retirements they are continuing to attempt to contain their costs. When questioned by Councillor Gazzola as to whether the Library could function without the additional $40,000., Ms. Walshe advised that service cuts will be required if the additional money is not approved. On motion by Councillor C. Weylie - it was resolved: "That the 2003 Operating Budget for the Centre in the Square as recommended by staff, be approved." On motion by Councillor C. Weylie - it was resolved: "That the 2003 Operating Budget for the Kitchener Public Library as recommended by staff, be approved." The Committee then considered the Capital Budget and 10 Year Capital Forecast 2003-2012, for the Centre In the Square and the Kitchener Public Library. On motion by Councillor M. Galloway - it was resolved: "That the Capital Budget and 10 Year Capital Forecast 2003-2012 for the Centre In The Square, as recommended by staff, be approved." Councillor Galloway recommended that the Capital Budget and 10 Year Capital Forecast 2003- 2012 for the Kitchener Public Library, as recommended by staff, be approved. Councillor J. Gazzola requested that the "Technology Upgrades" in the Library's 10 Year Capital Forecast be voted on separately. He advised that he was not necessarily opposed to these upgrades, but required more information before he could support the amount of money requested for this purpose. 1. 2003 OPERATING BUDGET & 10 YEAR CAPITAL FORECAST 2003-2012 (CONT'D) FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 207 2003 -15- CITY OF KITCHENER On motion by Councillor M. Galloway - it was resolved: "That the Capital Budget and 10 Year Capital Forecast 2003-2012, for the Kitchener Public Library, save and except for 'Technology Upgrades', as recommended by staff, be approved." On motion by Councillor M. Galloway - it was resolved: "That the Technology Upgrades for the Kitchener Public Library, as recommended by staff in the Capital Budget and 10 Year Capital Forecast 2003-2012, be approved." Chandler-Mowat Neiqhbourhood Association At this time the Committee invited Mr. Ilkad Elkhaliea of the Chandler-Mowat Neighbourhood Association to make his presentation concerning the need for a new community centre in the Chandler-Mowat area as soon as possible, and to request Council budget for such a community centre earlier in the 10 Year Capital Forecast. Mr. Elkhaliea advised the Committee that there are 8000 adults and children living in highrise and Iowrise apartments and in townhouses in the Chandler-Mowat area who depend heavily on the services offered in the Chandler-Mowat Community Centre. Services such as: English as a second language classes, preschool and afterschool programs, a collective kitchen, computer classes, and internet job search, all necessary services, are offered there. There are other services, such as youth programs, that take place outside because there is no indoor space available. Mr. Elkhaliea also advised that more than 100 children participate in playground activities at the centre during the summer. He stated that the community is desperately in need of a community centre with a larger indoor area. He noted that many of the residents obtain access to clothing, food, bus tickets and other forms of financial assistance at the community centre, and the ability to continue and expand on these necessary services requires additional space. With respect to the "collective kitchen", Mr. Elkhaliea noted that a stove is required but not available, and the food must be taken to a neighbouring church to be cooked and then returned to the centre. Mr. Elkhaliea requested the construction of a new community centre for Chandler-Mowat be moved forward to 2005-2006 in the capital forecast. He advised that 70% of area residents are new Canadians who depend heavily on the social programs offered at the centre to help them overcome the barriers to employment which they face. He asked the Committee to treat their request as a priority. A video of the activities at the centre, including requests for a new community centre by House of Friendship staff who operate the programs in the centre, was viewed. Councillor Weylie questioned whether there is sufficient land available for a larger community centre in this location. Mr. Pizzuto responded that in addition to the community centre land there is an adjacent park, but staff have not yet explored the amount of land required for a larger community centre. Councillor Galloway acknowledged Ms. Helen Tillman in the gallery, who works at the Chandler- Mowat Community Centre through the House of Friendship. Upon questioning Ms. Tillman advised that in addition to those services itemized by Mr. Elkhaliea, the Centre operates in partnership with other levels of government as an outreach site to provide access to food vouchers, clothing, bus tickets and food. She advised that the centre operates 12 hours per day, 7 days per week. Councillor Lorentz questioned whether staff have approached other levels of government to develop a partnership for construction of a new centre, and was advised that a capital cost sharing partnership has not been explored. 1. 2003 OPERATING BUDGET & 10 YEAR CAPITAL FORECAST 2003-2012 (CONT'D) FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 207 2003 -16- CITY OF KITCHENER Mayor Zehr questioned the operation of a larger community centre. Ms. Adams noted that the community centre is operated by the House of Friendship, with an operating grant from the City of Kitchener. A Regional role is currently being explored but not yet clearly identified. Councillor Gazzola questioned whether this community centre would qualify for SuperBuild funding and was advised that municipalities were permitted to apply for one project, which in this City's case was the Kitchener Market. Staff are not sure if additional funding through SuperBuild will be available. Councillor Lorentz questioned whether the Victoria Hills Community Centre expansion and a new Chandler-Mowat Community Centre could be moved forward to 2005 in the Capital Forecast. Ms. Houston advised that if these 2 projects are to be included in the capital forecast before 2007, the forecast would be in an unbalanced position. If they are to move forward, consideration would have to be given to delaying other projects. Ms. Houston also advised that in the 2002 Capital Forecast, the Victoria Hills Community Centre expansion was scheduled for 2005 and the new community centre was scheduled for 2007. Councillor M. Galloway put forward a motion that the expansion to the Victoria Hills Community Centre be included in 2005 in the Capital Forecast and a new community centre for Chandler- Mowat be included in the Capital Forecast in 2005-2006. Councillor Weylie spoke in support to Councillor Galloway's motion. She noted that the catchment area for the Victoria Hills Community Centre is very large, and this centre provides the same services as are provided at the Chandler-Mowat Community Centre. Further, Councillor Weylie stated that community centres are no longer solely places of recreation. She stressed that both area residents and centre staff need the City's support for an expanded community centre in Victoria Hills, and to defer the expansion for Victoria Hills and the new community centre for Chandler-Mowat is appalling and negligent. Mayor Zehr acknowledged the compelling arguments made for the Victoria Hills Community Centre expansion and the new community centre for Chandler-Mowat. He noted that although expensive, the City's community centre system is effective, and also serves as a cost avoidance. He also noted that it has been the City's practice to build community centres in areas of greatest need. Councillor Gazzola noted the Kingsdale area as another area of the City in need of a community centre. He asked that forecasting for community centres be deferred until such time as the Monteith Report can be further reviewed and priorities established. Further, he suggested that if community centres can not be built in these areas of greatest need, the City should assist neighbourhoods in finding other space for their services and programs. He stated all residents of the City need to be treated in a similar manner. Councillor Lorentz suggested that staff should immediately start enquiries with other levels of government and non-government agencies in an effort to develop partnerships. Residents should decide on their programming needs. Further, community residents should meet with staff, Ward Councillors and school boards to negotiate use of space within schools. Councillor Gazola requested an amendment to Councillor Galloway's motion that staff present a report to the Finance & Corporate Services Committee, by the time the next capital forecast is considered, as to: priorities for community centre construction; how they can be financed; how areas without community centres can obtain funding for programming space in existing buildings; and the development of partnerships for operating and capital costs. Councillor Galloway accepted Councillor Gazzola's amendment as a friendly amendment. On motion by Councillor M. Galloway - it was resolved: "That the Victoria Hills Community Centre expansion be included in the year 2005 of the 10 Year Capital Forecast 2003-2012;and, 1. 2003 OPERATING BUDGET & 10 YEAR CAPITAL FORECAST 2003-2012 (CONT'D) FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 207 2003 -17- CITY OF KITCHENER That a new Chandler-Mowat Community Centre be included in 2005-2006 of the 10 Year Capital Forecast 2003-2012; and further; That by the time the Capital Forecast 2004-2013 is discussed, staff submit a report to the Finance & Corporate Services Committee addressing the following: priorities for community centre construction, how new community centre construction can be financed; how areas of the City without community centres can receive funding for programming space in existing buildings; and, the development of partnerships to finance operating and capital costs for new community centres." Carried Unanimously Mayor C. Zehr advised Mr. Elkhaliea and other Chandler-Mowat neighbourhood residents in the gallery, that the recommendation just passed by the Committee is really a recommendation to the new Council to be elected this November. It remains to be seen how the new Council will handle the Capital Forecast next year. This meeting of the Finance & Corporate Services Committee recessed at 11:25 a.m. and reconvened at 11:37 a.m. with all members present. Outstandinq Capital Items The Committee next considered the outstanding capital budget and forecast items, as listed in the financial material provided by the Financial Services Department, save and except for community centres having been considered previously in this meeting. On motion by Mayor C. Zehr - it was resolved: "That the outstanding items for the 10 Year Capital Forecast 2003-2012, be approved as recommended by staff." 2003 Debenture Issue On motion by Councillor G. Lorentz - it was resolved: "That Council consider a by-law to issue a debenture in the amount of $1,744,000. for the new Kitchener Market." Ms. Houston advised that following this Committee's decisions, at this meeting, with respect to additions to and deletions from the 2003 Budget, a 2.49% tax rate increase will be required. 2003 Operatin,q Bud,qet Ms. Houston next reviewed the changes made to date, by this Committee, to the 2003 Operating Budget, noting that an additional $116,000 has been included for Tourism Services to bring the total Tourism Budget for 2003 to $300,000. The grant to the Business Enterprise Centre has been approved for $25,000. for 2003, and salary management has been increased to a total of $1.759M. Ms. Houston then reviewed Service Level Changes included in the 2003 Operating budget. 1. 2003 OPERATING BUDGET & 10 YEAR CAPITAL FORECAST 2003-2012 (CONT'D) FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 207 2003 -18- CITY OF KITCHENER Downtown Cleaninq & Leaf Collection Proqram The Committee then discussed the addition of $45,000. to the 2003 Operating Budget for Downtown Cleaning. It was noted by staff that operating costs for Downtown Cleaning have been adjusted to reflect actual costs. The cost of Sunday garbage collection in Downtown Kitchener was an issue discussed previously, and in this regard, Mr. M. Schreiter of the Kitchener Downtown Business Association was in attendance. He advised the Committee that a clean Downtown favourably influences peoples' perceptions of the safety in the Downtown. Mr. Schreiter provided the Committee with a short report addressing complimentary services offered by the KDBA. Mayor Zehr agreed that cleanliness is a perception of safety. He questioned whether garbage collection schedules could be altered to eliminate the need for 7 day garbage collection. Mr. M. Tout advised the Region's cost for Sunday garbage collection in the Downtown is $50,000; whereas the City's cost for this service is $5,000. Further, to negotiate a Sunday garbage collection with the Region rather than a Monday collection would still cost more, as overtime rates apply on Sunday. It was noted that should the City eliminate Sunday garbage collection, an education program would be required along with enforcement. Mayor Zehr suggested the issues of education and enforcement must be planned prior to eliminating Sunday garbage collection. He suggested changes to garbage collection schedules not take place until 2004, and education commence this year for those proposed changes. In response to Mayor Zehr's suggestion, Mr. Schreiter advised that the Downtown merchants and residents are not supportive of a reduction in garbage collection from the 7 day collection now provided. He noted that restaurants and the entertainment industry operate throughout the weekend and require 7 day collection. Further many people go walking through Downtown Kitchener on Sundays and it is then that they form their impressions of Downtown Kitchener. The Committee then reviewed the request to add $14,000. to the Leaf Collection Budget for 2003, noting that they had determined at a previous meeting to no longer collect leaves raked onto the street from private properties. It was noted by Ms. C. Legault that the $14,000. is required for an education program to inform citizens of the change in service. She noted that some leaf collection will still be required in order to collect those leaves which naturally drop onto City streets. What will also be required are additional drop sites for citizens to dispose of leaves. Councillor Lorentz suggested free paper bags be provided for leaf disposal, and Mr. Fielding advised that the Region would prefer to have the leaves loose rather than bagged. Mayor Zehr advised he wished to be certain that Council is firmly committed to the elimination of the program, as it is a change in service level. Ms. Legault advised that a plan for handling loose leaf collection, including the education program, will be presented to Council by the end of March. On motion by Councillor J. Smola - it was resolved: "That $45,000. be added to the 2003 Operating Budget for Downtown Cleaning." On motion by Councillor J. Smola - it was resolved: "That $14,000. be added to the 2003 Operating Budget for the City's Loose Leaf Collection Program." FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 207 2003 -19- CITY OF KITCHENER 1. 2003 OPERATING BUDGET & 10 YEAR CAPITAL FORECAST 2003-2012 (CONT'D) The Committee then reviewed the list of items and budget figures presented by staff which could be reduced in the 2003 Operating Budget. It was noted that the $25,000. reduction for the Business Enterprise Centre had already been dealt with. On motion by Councillor G. Lorentz - it was resolved: "That the following reductions in the 2003 Operating budget be approved: · Downtown Redevelopment Tax Incentives $50,000. · Tourism $45,000. · Tax Mitigation $20,000. · Automated Program Registration $10,000. · Road Materials $5,000. · Conferences $5,000." The Committee then discussed the additional savings of $12,000. through Salary Management. Mayor Zehr questioned whether a further $112,000. in savings through Salary Management would be achievable, in order not to take and additional $100,000. from the Tax Stabilization Reserve Fund. Mr. Fielding advised this amount of savings is obtainable but not preferable. Mayor Zehr put forward a motion to achieve a further $112,000. in savings through Salary Management in 2003. Ms. G. Luciantonio advised that a 2.33% tax rate increase will be required in 2003 based on the Budget as approved to this point. Councillor Gazzola stated that he is in favour of only a 2% increase in the tax rate, suggesting that the additional .33% be taken from the Tax Stabilization Reserve Fund. He stated it is important to keep taxes down for the public. Several members of the Committee spoke in favour of a 2.33% tax rate increase, stating that it is below the anticipated 2.5% inflation rate for 2003. Comments were also made by the Committee members that it is important not to erode future budgets for future Councils, and, as presented by staff, the City must reduce its reliance on the Tax Stabilization Reserve Fund, which will soon be depleted if it continues to be heavily relied upon. As Council we can tell taxpayers that staff have been challenged to find 5-6% in operating cuts. On motion by Mayor C. Zehr - it was resolved: "That an additional $112,000. in savings in the 2003 Operating Budget be achieved through Salary Management." 2. ADJOURNMENT On motion the meeting adjourned at 12:50 p.m. Dianne H. Gilchrist Committee Administrator