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HomeMy WebLinkAboutFin & Corp Svcs - 2008-11-24 SSPECIAL FINANCE & CORPORATE SERVICES COMMITTEE MINUTES NOVEMBER 24. 200$ CITY OF KITCHENER The Finance and Corporate Services Committee met this date to consider the Capital Budget and Forecast for Year 2009-2018, commencing at 10:10 a.m. Present: Councillor B. Vrbanovic, Chair Mayor C. Zehr and Councillors J. Smola, G. Lorentz, J. Gazzola, K. Galloway and C. Weylie. Staff: C. Ladd, Chief Administrative Officer D. Chapman, General Manager, Financial Services & City Treasurer T. Speck, General Manager, Corporate Services P. Houston, General Manager, Community Services J. Willmer, Interim General Manager, Development & Technical Services T. Beckett, Fire Chief J. Witmer, Director of Operations R. Gosse, Director of Legislated Services & City Clerk K. Kugler, Director of Enterprise G. Murphy, Director of Engineering M. May, Director of Communications & Marketing S. Adams, Director of Community & Corporate Planning M. Hildebrand, Director of Community Programs M. Selling, Director of Building J. Evans, Director of Revenue R. LeBrun, Director, Financial Planning & Reporting W. Malcolm, Director of Utilities M. Grummett, Director, Information Services & Technology D. Hergott, Manager of Facilities Management G. Hummel, Manager, Park Planning, Development & Operations G. Hastings, Manager of Golf Courses L Pregel, Manager, Cultural Development M. Petricevic, Manager, Project & Energy Management G. McTaggart, Manager of Infrastructure Asset Planning L. Eckel-Braun, Manager of Cemeteries D. Ritz, Supervisor, Design/Development S. Saleh, Senior Financial Analyst K. Steiss, Inclusion Co-ordinator J. Billett, Supervisor of Council /Committees C. Goodeve, Committee Administrator The purpose of this special meeting was to discuss the proposed Capital Budget and 10-Year Capital Forecast 2009-2018. In this regard the Committee was in receipt of Financial Services Department report FIN-08-151 dated November 7, 2008, attached to which were the line by line listing of all projects in the Capital Forecast by Department /Division, and a list showing all of the changes to the original Forecast that are being recommended by the Administrative Review Committee. 1. CAPITAL BUDGET AND FORECAST 2009-201$ Mr. D. Chapman introduced the 10-Year Capital Forecast (2009-2018) advising that it includes adjustments recommended by the Administrative Review Committee and that the list of adjustments is attached to the proposed Forecast. Mr. Chapman reviewed the list of capital priorities as defined by the 2004 public process and the list of capital funding sources. He stated that as per the Capital Policy the impact to the taxpayer each year cannot be greater than the 3% rate of inflation, with increases and debt charges limited to the rate of assessment growth. Further, increases in debt charges and Capital out of Current (C/C) are limited to the rate of assessment growth plus inflation, and specific projects to be funded by debt must be approved by Council before the debt is issued. Mr. D. Chapman reviewed the Gas Capital Investment Reserve Fund projection, Hydro Capital Investment Reserve Fund projection and the 2008 General City Capital Closeouts. At the request of the Committee, he agreed to provide an issue paper at the December 8, 2008 Operating Budget meeting outlining the calculations used to rationalize the Contribution From Gas line item in the Gas Capital Investment Reserve Fund Projection. He advised that the ending balance of the closeouts is estimated at $332,000., which will be transferred to the SPECIAL FINANCE & CORPORATE SERVICES COMMITTEE MINUTES NOVEMBER 24, 200$ - 175 - CITY OF KITCHENER 1. CAPITAL BUDGET AND FORECAST 2009-201$ tCONT'D) Capital Contingency Reserve. He noted that this figure may seem lower compared to previous years, as the surpluses realized for projects undertaken through the Accelerated Infrastructure Program are rolled back into that Fund and are not counted toward the General Capital Closeouts. He then reviewed the proposed changes in the Economic Development Investment Fund (EDIF) projection, relative to the version approved by Council during the 2008 budget process. He advised that the EDIF projection remains relatively unchanged, with the exception of adjustments to the Kitchener Public Library (KPL), Centre Block Development, and parking garage line items. He stated that the funding allocation toward the Centre Block items are partly for costs already incurred by the City and would therefore be reluctant to see those items deferred to a later year. Questions were raised regarding the EDIF Uncommitted Projects - Employment Lands line item and Mr. Chapman advised that detailed information would be provided prior to final Budget Day, separating out what has and has not been allocated through that item. In response to questions concerning the Wilfrid Laurier University (WLU) parking subsidies, Ms. C. Ladd advised that WLU are entitled to use 175 parking spaces in the Centre Block lot; however, through discussions with them it was realized that during the day they have only been using approximately 80-90 of their allocated spaces. Accordingly, staff anticipate bringing forward a report in the near future proposing an adjustment to the WLU parking subsidy agreement to reflect their actual usage. She advised against making changes to this item until that agreement has been amended. Responding to inquires regarding the estimated property tax increase, Mr. D. Chapman stressed that the figure is far from being finalized, but the initial estimate is fora 5.5% increase. He added that staff are endeavouring to lower that figure by final Budget Day. He noted that 1 % of that would equate to just under $900,000. Possible mitigating measure could be a reduction in the transfer of C/C, or deferring/removing certain projects from the Forecast. However, Mr. Chapman cautioned that these measures could result in significant projects being left unaddressed and would add increased pressure to the future years of the Forecast. Mr. D. Chapman further advised that all elements of the Capital Pool are consistent with expectations. He stated that a surplus of $6M is projected in 2009, as compared to the $15M surplus in 2008, adding that this disparity is largely due to the addition of the South Kitchener District Park item. He then reviewed the Development Charges (DC) projections for engineering and non-engineering services and Mr. G. Murphy agreed to provide the Committee with the criteria that is used to determine what constitutes a Regional Road. Questions were raised regarding the two DC (Engineering) items for Wabanaki Drive and Mr. Murphy agreed to provide the Committee with a map of that area identifying the Regional and City Roads, as well as the locations of the proposed projects. Mr. Chapman stated that the two budget line items for Wabanaki Drive were inadvertently separated and should be combined to reflect only one project. He noted that the same is true for the two Huron Road items. He clarified that front- end financing is a credit arrangement where a developer front-ends the costs and are not required to pay DC fees until such time as those costs have been recovered. He further advised that the proposed timing and projected costs of growth-related projects is forecasted to result in deficits in the DC Reserve Fund. While these deficits are projected to occur only between 2009 and 2013, they would result in the need to borrow within the Reserve Fund unless projects are deferred. He stated that the deficits projected in the DC Reserve Fund are being considered in conjunction with the Growth Management Strategy and Development Charges Background Study; and, it is anticipated that a report will be brought forward on this matter to Council's strategy session scheduled for the January 26, 2009. He then reviewed the specific projects that represent the major changes from the 2008 Forecast, being: • Cenotaph -deferred from 2010 to 2011; • Huron Business Pond Retrofit -advanced from 2010 to 2009; • New Arena South End -phasing adjusted from 2015-2016 to 2015-2017; • DC Funded Projects (Engineering) -new projects inserted as per Capital Referral reports and reflect realistic expectation of timing; • Accelerated Infrastructure Program -annual adjustments made to City program, 5.3 kilometres (kms) per year; • Environmental Remediation -annual adjustments made to timing, no change in funding; and, SPECIAL FINANCE & CORPORATE SERVICES COMMITTEE MINUTES NOVEMBER 24, 200$ - 176 - CITY OF KITCHENER 1. CAPITAL BUDGET AND FORECAST 2009-201$ tCONT'D) • New Projects or Changes - as per the Capital Referral reports considered at the October 20, 2008 Finance and Corporate Services Committee meeting. At the request of Councillor G. Lorentz, Mr. D. Ritz agreed to investigate the potential to relocate the cenotaph to a more prominent location; such as, the Kitchener Memorial Auditorium Complex (The Aud). Mr. Ritz noted that regardless of whether it is relocated, upgrades are required for the cenotaph. Mr. D. Chapman reviewed the status of the Accelerated Infrastructure Replacement Program (AIRP), which attempts to achieve the replacement of linear infrastructure that is greater than 80 years old by 2032; thereby requiring an annual replacement rate of 8.67 kms. He stated that since the initiation of the AIRP approximately 20 kms of have been replaced, which is 55% lower than the projected 34.6 kms originally anticipated when this program started. He outlined that since the inception of the AIRP there have been some significant projects that have adversely affected the accomplishment rate; and with limitations in funding and increases in costs, staff feel that annually only 5.3 kms of infrastructure can be feasibly replaced. It was noted that staff will be reviewing the AIRP over 2009 and anticipate presenting a report during Council's 2010 budget deliberations process on how this program could be re-tooled. Mr. D. Chapman stated that the 2009-2018 Capital Forecast is currently in a balanced position, which means that there is no shortfall of funding over the 10-year time horizon. In addition, all new projects and increases in excess of $50,000. have been referred to the Forecast by a previous resolution of Council. He noted that the Forecast will need to be re-adjusted once the Regional Roads program has been finalized. He added that amounts for the following projects are not currently reflected in the Forecast: • Charles /Water parking garages; and, • Williamsburg Cemetery development. Mr. Chapman pointed out that additions made in one area of the Forecast would require: reductions in other areas; and/or, an increase in C/C which would impact the 2009 tax rate; and/or, an increase in debt which would have an impact on future tax rates. CENTRE IN THE SQUARE Mr. Jamie Grant and Ms. Sharon McMorran, Centre In The Square, addressed the Committee and advised that prior to undertaking their planned fundraising campaign they need to determine who is accountable for the various Centre In The Square assets. Mr. Grant asked to work with City staff to develop along-term capital asset strategy to determine who is responsible for the future maintenance of those assets. He estimated that over the next 20 years the Centre In The Square would have approximately $20M worth of capital needs. Ms. McMorran stated that in the past their capital projects have been funded through ticket surcharges, capital out of current and through various fundraising campaigns. The Committee directed staff to form an adhoc committee to work with the representatives from the Centre In The Square to develop along-term Capital Strategy; and, report back with the adhoc committee's findings in the first half of 2009. KITCHENER PUBLIC LIBRARY Ms. Sonia Lewis, Kitchener Public Library (KPL) advised that adjustments were made to the Capital Forecast to accommodate the Central Library project by delaying the Radio Frequency Identification Technology project and the Library Automation System Replacement project. She stated that KPL had previously identified what could be deferred in their Capital Referral report considered at the October 20, 2008 Finance and Corporate Services Committee meeting. Regarding the replacement of the main library's roof, she pointed out that the portion being replaced is not impacted by the Central Library project. She stated that she could raise the issue with their architect to see if it would be possible to integrate the two, stressing that the cost estimate for the roof replacement was not accounted for in the Central Library project's budget. She noted that given the state of that section of the roof, its replacement costs cannot be avoided. SPECIAL FINANCE & CORPORATE SERVICES COMMITTEE MINUTES NOVEMBER 24. 200$ - 177 - CITY OF KITCHENER 1. CAPITAL BUDGET AND FORECAST 2009-201$ tCONT'D) Mr. D Chapman advised that $1.63M of the amount listed under the Other -Other Funding Sources item relates to advancement of operating funds for the Library. He stated that short of impacting other capital projects or finding other funding sources, advancement of operating funds or an allocation through the Municipal Infrastructure Improvements funding are the only options for covering these costs. Councillor J. Gazzola expressed concern with the amount of information that has been provided regarding the Corporate Accessibility Fund listed under General Expenses. Ms. K. Steiss advised that in 2005 Council established the Corporate Accessibility Fund to deal with accessibility issues under the Accessibility for Ontarians with Disabilities Act (AODA); however, at that time it was unclear what the financial implications would be. She outlined the following as the projects that are currently outstanding for that Fund: Customer Service Standard trainer; costs and implications associated with replacement for TTY service; and, those projects related to other standards yet to be enacted through the AODA. In addition, there is the development of an information communication standard, employee standard and built environment standard, the latter being the largest and is expected to come in 2009. She noted that the City's compliance date is unclear at this time; however, historically there is a 2-year turn-around time for compliance. Mr. T Speck added that one of the AODA requirements is to complete an audit of all City Facilities, noting that staff are reviewing data to identify costs required for compliance. He noted that currently $2.5M is estimated to be needed. He stated that once the regulations are passed, that figure would be adjusted accordingly; however, staff strongly feel that $2.5M is a realistic estimate. He added that information on this matter has been included in the Municipal Infrastructure Improvements Funding report to be considered later this date and staff anticipate coming forward with more information in January 2009. The Committee then proceeded with adepartment-by-department review of the Capital Forecast and comments were advanced with respect to the following: MAYOR AND COUNCIL Mr. T. Speck advised that now that the appeal period has ended for the Ward Boundary Review, the amount listed under the Mayor and Council -Home Technology line item would need to be adjusted to reflect the expenditures that will be incurred as a result of increasing in the size of Council. OFFICE OF THE CHIEF ADMINISTRATOR Mr. M. May advised that Financial Services staff undertook an analysis and determined that purchasing all photocopiers was a preferred option for the Print Shop as compared to leasing. He stated that the new billing system technology has expedited this work and allowed staff to better respond to the increased volume of job requests. Mr. D. Chapman advised that this is not an invoicing system, adding that currently all invoicing is completed through SAP; rather, this is for external charges for outside printing that has to be calculated for billing. He noted that the financial analysis demonstrated that the cost benefits from this initiative would be substantial. Ms. C. Ladd advised that Human Resources recently underwent an audit and it was recommended that an on-line recruiting system be implemented in 2009. She stated that the benefits of an on-line system are improved internal and external recruitment process through increased automation and efficiencies. She noted that Human Resources staff are in the process of gathering data relating to functionality and costing of various recruiting software systems, and a report is anticipated to come forward on this matter at a later date. FINANCIAL SERVICES Mr. D. Chapman advised that due to increasing regulatory and system functionality requirements and a significant backlog of work, it is recommended that the 2008 level of funding be maintained for the development and maintenance of the Tax/Utility System (CIS); and, inflated at a rate of 2% thereafter. He stated that the majority of the CIS budget is for the full- time staff team who maintain and upgrade the system. Ms. P. Houston added that in 2001/02 a decision was made to maintain this system in-house and since then staff have undertaken benchmarking exercises of the City's system. Members expressed concerns with the funding SPECIAL FINANCE & CORPORATE SERVICES COMMITTEE MINUTES NOVEMBER 24. 200$ - 17$ - CITY OF KITCHENER 1. CAPITAL BUDGET AND FORECAST 2009-201$ tCONT'D) allocated to this item and Mr. Chapman agreed to undertake a detailed review of the Revenue - Enhancements to Tax/Utility System (CIS) line item and report back with information on: the backlog of projects that will be addressed through these enhancements; the benefits/operating savings to would be realized by addressing the backlog; what is being spent on the current system; and, the results of the benchmarking exercises. Questions were raised regarding the possibility of providing joint meter reading and billing services with Kitchener-Wilmot Hydro. Mr. W. Malcolm advised that by 2010 every home in Ontario is required to have a Smart Meter. He stated that staff are waiting to hear back from Kitchener-Wilmot Hydro regarding what the cost savings might be of undertaking a joint meter reading initiative. Ms. J. Evens agreed to report back if an opportunity were to arise to offer joint billing services between Kitchener-Wilmot Hydro and the City's Water and Gas Utilities. Several members inquired into the amount remaining in the Fleet -Replacement Equipment line item and if it would be impacted by recently approved tenders for Fire Services equipment. Mr. D. Chapman advised that an updated detailed adjustment of the Fleet accounts would be brought forward for consideration on Budget Day. He noted that this account provides for the replacement of all of the City's vehicles with the exception of those related to Fire Services. The meeting then recessed at 12:16 p.m. and reconvened at 1:12 p.m. chaired by Councillor B. Vrbanovic with all members present. CORPORATE SERVICES Members questioned the costs associated with the Facilities Management - Rockway Seniors Centre Foundation line item and Mr. D. Hergott advised that this relates to a project to correct water infiltration of the foundation on all four elevations. In addition, it will eliminate the confined space for pumping equipment, as recommended by the Ontario Health and Safety Act, and address accessibility into the building. In response to inquires regarding the expenditures for the K-W Judo and Gymnastics Club, Mr. T. Speck agreed to report back with information on how the facility costs are broken down between each of the parties to the joint services agreement. Mayor C. Zehr asked if current energy rates make using of the co-generation system at City Hall feasible and was advised that rates are currently at $0.11, and would need to reach $0.19 to justify the cost of operating the co-generation system. Councillor B. Vrbanovic inquired into whether there was any merit into investigating the incorporation of a geothermal unit and it was noted that staff have investigated the use of geothermal technology and it was determined that it would not be feasible to implement that technology at City Hall. Questions were raised regarding the types of expenditures being funded through the Telephone Reserve and Computer Reserve and Mr. D. Chapman agreed to report back with information on that fund by final Budget Day. COMMUNITY SERVICES Mr. M. Hildebrand clarified that the Administration -Arts and Culture Capital Building line item is a capacity building fund used to leverage support from the arts and culture sector. It was agreed that the name of this item would be changed to Arts and Culture Capacity Building to better reflect its intended purpose. Ms. L. Eckel-Braun advised that the $357,000. earmarked in 2014 for the crematorium expansion is a placeholder to accommodate for the uncertain growth rate of cemetery services. She estimated that expansion of the crematorium may not be necessary by 2014; however, this might be impacted by legislative changes which are anticipated to be brought forward prior to that time. She noted that Cemeteries' staff meet regularly with their counterparts at the City of Waterloo and anticipate bring forward a report in early 2009 regarding potential joint cemetery services initiatives. In response to questions concerning potential assistance that the City could provide to enable the WLU swimming pool to remain open, Ms. P. Houston advised that discussions were held with staff from the City of Waterloo and representatives from both the provincial and federal governments regarding this issue. It was identified that $2M in upgrades would be needed to keep the WLU pool open for another 5 years and it was determined that Kitchener does not have the funding available to assist with keep the pool open. She noted that staff have made some pool time available to help accommodate those athletes who would normally have used SPECIAL FINANCE & CORPORATE SERVICES COMMITTEE MINUTES NOVEMBER 24. 200$ - 179 - CITY OF KITCHENER 1. CAPITAL BUDGET AND FORECAST 2009-201$ tCONT'D) the WLU pool. She stated that municipal governments are responsible for providing community swim programs, adding that for elite swim programs, such as those offered at the WLU pool, funding should be provided by Sports Canada. Mayor C. Zehr noted that even if the City were to invest $2M to keep the pool open for an additional 5 years, there is no guarantee that other issues, such as air quality, would not prevent the pool from operating during that time. Mr. M. Hildebrand advised that staff are investigating the potential modifications that would be needed to enable the Harry Class pool to be used during the winter season. Mayor C. Zehr inquired as to the status of the Walter Bean Trail construction and was advised that no specific completion date has been set, as construction can only proceed on sections of the Trail once the City has acquired those lands. Mr. G. Hummel stated that it is his understanding that the construction costs for the Trail would be funded through the Grand River Conservation Foundation, which has taken over the assets and responsibility for the distribution of the Walter Bean Grand River Community Trail Foundation funds. Mr. Hummel agreed to report back with information regarding the current status and the outstanding components of the Trail. Concerning the backlog in general trail development, Mr. D. Ritz advised that an allocation of $300,000. per year was added to the Forecast in 2007, which will allow the backlog to be addressed within the next 10 years. Questions were raised regarding the South Kitchener District Park (SKDP) and Mr. J. Witmer advised that SKDP is a 41.5 acre parcel of land located at the corner of Fischer Hallman Road and Huron Road. He stated that the 2005 Leisure Facilities Master Plan (LFMP) detailed that the new district park in the South Kitchener area should provide for: four lighted soccer fields; field hockey use; two lighted baseball fields; skateboard park; tennis courts; three-on-three basketball; community trail connections; play structure; neighbourhood park amenities; field house/operations; and the site should also accommodate non-park related community needs, such as a community centre, library, gym, or pool. He added that the Business Plan for the SKDP is anticipated to be brought forward in June 2009 and would contain more comprehensive recommendations. Councillor B. Vrbanovic requested that the Operations -McLennan Park Site Development line item, be amended to include a reference to the skateboard park. Councillor G. Lorentz advised that the Forest Heights Neighbourhood Association has committed to fundraise approximately $100,000. for the construction of a skateboard park. Mr. M. Hildebrand agreed to report back with information regarding a potential partnership between the City and the Forest Heights Neighbourhood Association regarding the development of a skateboard parkin that community. DEVELOPMENT AND TECHNICAL SERVICES Mr. T. Beckett agreed to report back with information outlining the new vehicles that would be purchased through the Fire -Major Equipment/Fleet account over the next 5 years and the age of the vehicles that are being replaced. Mayor C. Zehr asked why the funding allocation to the Administration and Miscellaneous -Environmental Remediation line item increased to $1 M by 2011 and Mr. D. Chapman agreed to provide information as to the use of that account prior to final Budget Day. He also clarified that the City's share of the costs for Regional Roads relates to costs associated with maintaining the City's water and sewer mains. Several members spoke to the adverse impact that Grand River Transit (GRT) buses have on City Roads and suggested that the Region of Waterloo should provide some support to the lower tier municipalities to assist with maintaining those roads. Councillor G. Lorentz inquired as to the development of a list outlining the schedule of street paving and was advised that staff anticipate providing that list by December 2008. Councillor J. Gazzola raised questions regarding the Grand River -Erosion Control line item and was advised that the detailed design for that project was anticipated to begin in 2009. Mr. G. McTaggart stated that this issue relates to a number of houses built close to the Grand River embankment, which are being impacted by natural erosion; and, additional study is required before this project can move forward. It was noted that this project is not far enough along to determine the level of assistance which may be provided from the Grand River Conservation Authority. In response to questions concerning the City's portion of the federal gas tax transfer, Mr. D. Chapman advised that for 2009 the City is scheduled to receive approximately $6.2M and a similar amount annually over the next 5 years. Mayor C. Zehr added that over the last few days SPECIAL FINANCE & CORPORATE SERVICES COMMITTEE MINUTES NOVEMBER 24, 200$ - 1$0 - CITY OF KITCHENER 1. CAPITAL BUDGET AND FORECAST 2009-201$ tCONT'D) the federal gas tax transfers were not only extended, but were also made permanent. He stated that municipalities will be further lobbying the federal government for the inclusion of a provision to accommodate for escalating costs. He noted that the federal government has asked that municipalities prepare a summary of how the gas tax is being utilized. In response to further questions, Mr. D. Chapman advised that the Administration -Demand Side Management line item is to accommodate the increasing volumes of Residential Energy Efficiency Project CREEP) energy audits; an increase in partnership opportunities with other energy service providers; increasing volumes for furnace rebates; and, new rebates for tank-less water heaters. Questions were raised regarding the Gas Operations -Replacement Gas Mains and Replacement Relined Gas Mains line items and Mr. Chapman agreed to report back prior to final Budget Day with information clarifying the difference between those two accounts. FIN-08-152 -MUNICIPAL INFRASTRUCTURE IMPROVEMENTS FUNDING The Committee considered Financial Services Department report FIN-08-152, dated November 7, 2008 regarding a determination of the projects to be funded through the City's share of the Municipal Infrastructure Improvements Grants funding. Mr. D. Chapman advised that the Province of Ontario designated $1.1 B for Municipal Infrastructure Improvements Grants, with Kitchener's share of this funding envelope being $9,801,171. Subsequently, staff investigated projects that would qualify for this funding and have ranked them based on priority. He stated that staff are now seeking direction on which of the following projects should receive this funding: A. Leisure Facilities Master Plan Implementation; B. Accessibility Improvements; C. Storm Water Management Infrastructure Upgrades; D. Accelerated Infrastructure; E. Victoria Park Lake; F. City Hall Lighting; G. Corporate Closed-Circuit Television; H. Energy Management Initiatives; and, L Road Resurfacing. Mr. Chapman noted that the projects not funded through this grant would be considered though the 2010 Capital Budget process. He advised that at the September 29, 2008 Finance and Corporate Services Committee meeting, staff were directed to investigate the feasibility of using $1,634,000. of the Municipal Infrastructure funding to eliminate the need to advance the operating levy impact of the Central Library during construction in 2010. He stated that based on the rankings, two options are being put forward for consideration. The first, is to use the funding for A, B, C, and a portion of D; and the second option if to have this funding go toward A, B, C, with a portion being used to mitigate KPL's need for an operating levy advancement. In response to questions, Mr. D. Chapman advised that projects, such as A, B, C, D, H, and I, are currently in the Forecast, but at an underfunded level. He added that a decision on the Forecast could be delayed for a period of time, but cautioned that the design work for some projects needs to commence in the near future. Mr. G. Murphy stated that staff undertake the design aspect for Accelerated Infrastructure projects during the winter months, which enables the projects to go to tender in March and the work to commence in the spring. He added that the Environmental Assessment (EA) for the Victoria Park Lake project is anticipated to be complete in early 2009, with construction taking place in late 2009. He commented that he is uncertain at this time as to the other projects that require an EA and whether some of those projects could commence in 2009. Councillor B. Vrbanovic and Mayor C. Zehr advised that it is anticipated that additional funding may be provided to municipalities from the federal government in the near future, which would impact the Capital Forecast. It was suggested that the Forecast be accepted as received pending the receipt of additional information from staff, as well as allowing time to for the realization of the funding allocation anticipated from the other levels of government. Questions were raised regarding the impact of not providing direction this date on the KPL operating levy SPECIAL FINANCE & CORPORATE SERVICES COMMITTEE MINUTES NOVEMBER 24, 200$ - 1$1 - CITY OF KITCHENER 1. CAPITAL BUDGET AND FORECAST 2009-201$ tCONT'D) advancement and Mr. D. Chapman advised that as the levy does not directly impact the 2009 Operating Budget, staff does not need to receive direction at this time. Councillor J. Gazzola advised that he was not prepared to support the Capital Forecast, noting that given the current economic climate the City should be looking to reduce expenditures. It was noted that it may be possible to defer some projects within the Capital Forecast; thereby decreasing the funding required for 2009. Some members commented that additional information was needed to understand the effect that reallocation has on the overall Capital Forecast. At the request of Councillor B. Vrbanovic, staff agreed to provide information as to the impact on the Operating and Capital budgets if $1 M were to be removed from the 2009 projection, while keeping the 2010 projection at its current level plus the impact of reincorporating the deferred amount at a later date. On motion by Mayor C. Zehr - it was resolved: "That the 2009-2018 Capital Forecast be accepted as received, pending additional information from staff to address concerns raised by the Committee." 2. ADJOURNMENT On motion, the meeting adjourned at 3:52 p.m. Colin Goodeve Committee Administrator