Loading...
HomeMy WebLinkAboutCouncil Agenda - 2019-04-01 SCHRISTINE TARLING Directorof Legislated Services& City Clerk Corporate Services Department nd Kitchener City Hall, 2 Floor 200 King Street West, P.O. Box 1118 Kitchener, ON N2G 4G7 Phone: 519-741-2200 x 7809 Fax: 519-741-2705 Christine.tarling@kitchener.ca March 29, 2019 Mayor B. Vrbanovic and Members of Council Re: Special Council Meeting Monday, April 1, 2019 Notice is hereby given that Mayor B. Vrbanovic has called a special meeting of City Council to be held in the Conestoga Room on Monday, April 1, 2019 at 1:30 p.m. to consider the following: 1. Strategic Session a. Compass Kitchener Advisory Committee Work Program K. Cooper (10 mins) -19-004 is attached. b. Compass Kitchener 2015-2018 Strategic Plan Evaluation K. Cooper (45 mins) -19-005 is attached. c. Council Review of Draft 2019-2022 Strategic Plan Goals and Actions K. Cooper (60 mins) -19-006 is attached. Recess and Re-convene The meeting will then recess and reconvene in the Council Chambers at approximately 3:30 p.m. 2. FIN-19-029 2019 Development Charges Priorities & Rate Options (approximately 3:30 p.m.) Attached is Financial Services Department report FIN-19-029 (R. Hagey), dated March 6, 2019. 3. In-camera Meeting Authorization Council is asked to enact the following resolution to authorize an in-camera meeting: "That an in-camera meeting of City Council be held immediately following this special meeting to consider two matter subject to solicitor-client privilege, one of which is also a land acquisition/disposition matter, and a matter related to city owned comme Accessible formats and communication supports are available upon request. If you require assistance to take part in a city meeting or event, please call 519-741-2345 or TTY 1-866-969-9994. CHRISTINE TARLING Directorof Legislated Services& City Clerk Corporate Services Department nd Kitchener City Hall, 2 Floor 200 King Street West, P.O. Box 1118 Kitchener, ON N2G 4G7 Phone: 519-741-2200 x 7809 Fax: 519-741-2705 Christine.tarling@kitchener.ca Yours truly, C. Tarling Director of Legislated Services & City Clerk c: Corporate Leadership Team J. Bunn D. Saunderson J. Rodrigues Records Accessible formats and communication supports are available upon request. If you require assistance to take part in a city meeting or event, please call 519-741-2345 or TTY 1-866-969-9994. REPORT TO:Council DATE OF MEETING:April 1, 2019 SUBMITTED BY:Kathryn Dever,Director,Strategy & Corporate Performance, 519 741-2200 ext. 7370 PREPARED BY:Karen Cooper, Manager, Strategic & Business Planning, 519 741-2200 ext. 7817 WARD (S) INVOLVED:All DATE OF REPORT:March 25,2019 REPORT NO.:CAO-19-004 SUBJECT:Compass Kitchener Advisory Committee Work Program ___________________________________________________________________________ FOR DISCUSSION BACKGROUND: Council Policy GOV-BOA-077(Compass Kitchener Terms of Reference)identifies the goals, objectives and responsibilities of the Compass Kitchener Citizen Advisory Committee. In summary, responsibilities include: Designing and implementing public engagement processes in collaboration with staff to community priorities before each municipal election. Reporting to Council on critical community priorities to assist in the establishment of,and updating of,C Developing evaluation criteria in collaboration with staff priorities Plan for the Cityof Kitchener. Reporting on performance to Council and the Community on an annual (Report Card) basis. Ensuring communication and collaboration among Advisory Committees of Council by convening two yearly meetings, one for Chairs and Vice Chairs and the second for all Developing a yearly workplan and submitting it to Council for feedback. REPORT: Compass Kitchener has requested that its2019Work Plan be submitted to Council for feedback. TheCompass Kitchener2019 Work Programisincluded asAttachment 1 to this report. Priorities include: ***This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994for assistance. 1.a. - 1 2015-2018 Strategic Plan; Development of evaluation criteria for the upcoming 2019-2022 Strategic Planto be completed jointly with city staff; Communication/Collaboration among Advisory Committees continue to build st Judy Stephens-Wells, Chair of Compass Kitchener, willbe in attendance at the April 1Council meeting and is available to discuss the work program with Council. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: The recommendation of this report supports the achievement of the C. FINANCIAL IMPLICATIONS: None. COMMUNITY ENGAGEMENT: INFORM council / committee meeting. ACKNOWLEDGED BY: Dan Chapman, CAO Appendix A:Compass Kitchener 2019Work Plan 1.a. - 2 Appendix A:COMPASS KITCHENER2019 WORK PLAN Compass Kitchener gains community input and participation in order to provideadvice to Council on strategic plan. The Committee reportsdirectly to Counciland developsa yearly workplan to submit to Council for feedback. ResponsibilityItemCompass Kitchener Meeting Dates Administration 1.OrientationJanuary 9, 2019 Comply with City policies for Committees 2.Conflict of InterestJanuary 9, 2019 3.Code of ConductJanuary 9, 2019 4.Chair & Vice Chair TrainingFebruary12, 2019 Work Plan February 19, 2019 1.2019 Work Plan Develop a yearly workplan and submitit to November 6, 2019 2.2020 Work Plan Council for feedbackDecember 4, 2019 Advisory Committee Collaboration 1.All Advisory Committees MeetingJanuary 9, 2019 a)Follow up onevaluation ideasreceived atJanuary 24, 2019 Bring Advisory Committees of Council together January 24 MeetingFebruary 19, 2019 on a regular basis to share information and identify opportunities for collaboration. 2.Advisory Committee Chairs +Vice Chairs MeetingSeptember 4, 2019 a)Select a date, location & agendaOctober 2, 2019 b)Facilitate/record discussion(Oct/Nov Chair c)Follow-up on Action ItemsMeeting TBD) Citizen Report Card 1.2018 Citizen Report CardsJanuary 9, 2019 Determine evaluation criteria for use in a)2018 Year endFebruary 19, 2019 measuring Council implementation of strategic b)2015-2018 Term endMarch 6, 2019 priorities Establish a reporting tool(s) to monitor progress on implementing changes in collaboration with 2.2019-2022 Evaluation Approach for New StrategicApril, 3, 2019 staff. PlanMay1, 2019 June 5, 2019 Monitor and evaluate progress against achievement of strategic priorities. 3.2019 Citizen Report CardDecember 4, 2019 Report on progress made toward achieving strategic prioritiesto Council and the community on an annual (Report Card) basis. Strategic Plan 1.2019-2022 Strategic PlanApril 3, 2019 Provideadvice on strategic plan preparation a)Provide input and feedback on draft planMay 1, 2019 1.a. - 3 REPORT TO:Council DATE OF MEETING:April 1, 2019 SUBMITTED BY:Kathryn Dever,Director,Strategy & Corporate Performance, 519 741-2200 ext. 7370 PREPARED BY:Karen Cooper, Manager, Strategic & Business Planning, 519 741-2200 ext. 7817 WARD (S) INVOLVED:All DATE OF REPORT:March 26,2019 REPORT NO.:CAO-19-005 SUBJECT:Compass Kitchener 2015-2018 Strategic Plan Evaluation ___________________________________________________________________________ REOMMENDATION: ForDiscussion BACKGROUND: Council Policy GOV-BOA-077(Compass Kitchener Terms of Reference)identifies the goals, objectives and responsibilities of the Compass Kitchener Citizen Advisory Committee.In summary, responsibilities related to reporting to Council on implementation of the strategic plan include: Developing evaluation criteria in collaboration with staff priorities for the City of Kitchener. Reporting on performance to Council and the Community on an annual (Report Card) basis. REPORT: Compass Kitchener has requested that its2015-2018 Strategic PlanEvaluation report be submitted to Council for discussion.The evaluationisincluded asAppendix Ato this report. st Judy Stephens-Wells,Chair of Compass Kitchener,will be in attendance at the April 1Council meeting and wishesto make a presentation summarizing: progress in implementing the 2015-2018 Strategic Plan, Feedback from the All Advisory Committees meeting regarding developing evaluation criteria for the upcoming 2019-2022 Strategic Plan, and Recommendations on business plan projects to undertake in transitioning from the 2015- 2018 Strategic Plan to the new Strategic Plannow under development. ***This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994for assistance. 1.b. - 1 Compass Kitchener is submitting an evaluation report as a result of undertaking a comprehensive review of annual business plans from 2015 to 2018.Compass Kitchener makes 12 recommendations in its evaluation report and staff are pleased to report that all have addressed or will be addressed as indicated in the following table. Compass Kitchener Recommendations and Status of Staff Response Compass Kitchener RecommendationsStaff Response 1.Ensure that Strategic Plan guides the development of the The new Strategic Plan will have specific and measurable Business Plans and City budgets actions. Approval of the new Strategic Plan in June 2019 will guide the 2020 Budget and 2020 Business Plan and each subsequent year. 2.Ensure allocation of sufficient resources for project planning and Staff are working on project management framework to project management initiatives to support staff in completing support staff in completing projects on time. projects on time 3.Undertake fewer projects to ensure more projects are completedThe 2019 Business Plan has 75 projects and programs, down from over a 100 items in previous years. 4.Consider smaller initiatives or series of initiatives, delivered in The 2019 Business Plan now contains several large projects shorter periodsof time -framing an agile approach wherein the that are broken down into smaller parts to achieve City delivers a concept, gets citizen feedback early on, and objectives over time ie. asset management plans, park decides to proceed, revise plans, or cancel at an early stagedevelopment plans etc. 5.Place more emphasis on delivering strategic initiatives and Strategic Items are now highlighted in the 2019 Business ensure strategic initiatives have the highest completion rate in Plans to help ensure they have the highest priority for business planscompletion. 6.Balance the distribution of projects amongst the Strategic Plan's There are 5 draft goals balancedwith 5 draft actions for goalseach goal proposed for public review as part of creating the 2019-2022 Strategic Plan 7.Consider the input from the public on what is important to them in Staff participated with Compass Kitchener in hosting the evaluating and reporting on Strategic Plan implementation in January 24, 2019 consultation with representatives from all developing an evaluation frameworkof the advisory committees on strategic plan evaluation. Staff will be working with Compass Kitchener to develop an evaluation framework. 8.Establish the expectation that, at the outset of planning projects, Staff have applied this expectation in developing the draft specific measurable outcomes will be delineated for each goals and draft actions for the 2019-2022 Strategic plan. initiative so that the success of a project can be assessed relative This will also apply to future business plan projects. to those outcomes 9.Metrics need to be meaningful -time, budget, savings, and Staff will be working with Compass Kitchener to develop impact on citizens. Develop a rubric and evaluate projects on meaningful metrics and a rubric as part of an evaluation how well they contribute to the community and align with framework for the Strategic Plan. 10.Evaluate the impact of all projects, including cancelled/delayed Staff will be doing this as part of reporting on the Business projectsPlans. 11.Be more celebratory when reporting on results and make results Staff are working on developing a Dashboard and will use more accessible to the publicthrough an interactive Dashboardreporting on the status business plan recognize achievements. Citizen Dashboard 12.Following through from the previous Strategic Plan, completion of the following projects should be included in Business Plans to Staff are working on developing anAODA compliant Dashboard 1.b. - 2 complete the 2015 to 2018 Strategic Plan and implement the new Strategic Plan 2019Business Planincludes: Citizen Dashboard Long-Term Financial Plan Long-Term Financial Plan Planning around ION stations Urban Forestry Strategy and projects Advocacy for Improved Commuter Service Planning around ION stations Municipal Response to Truth and Reconciliation Call to Arts and Culture Strategy Action Climate Action Plan and Environmental projects Creative Hub DraftGoals and Actionsfor new Strategic Planinclude Traffic Safety Urban Forestry Strategy and projects Cycling Master Plan Arts and Culture Strategy Initiatives to Increase Supply of Affordable Housing Climate Action Plan and Environmental projects Advocacy for Improved Commuter Service Creative Hub Municipal Response to Truth and Reconciliation Call to Traffic Safety Action Cycling Master Plan Affordable Housing Strategy ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: The recommendation of this report supports the achievement FINANCIAL IMPLICATIONS: None. COMMUNITY ENGAGEMENT: INFORM council / committee meeting. CONSULT --Compass Kitchener and staff undertook consultation with members from all City of Kitchener Advisory Committees on January 24, 2019 seeking input on evaluating progress of the trategic Plans. ACKNOWLEDGED BY: Dan Chapman, CAO Appendix A:Compass Kitchener Evaluation of City Progress in Implementing the 2015-2018 Strategic Plan 1.b. - 3 Compass Kitchener Members Judy Stephens-Wells, Chair Euraysia Duhaime, Vice Chair Lynne Gazzola Lori Trumper Lorie Fioze Melissa Bowman Adam Hammoud Roberto Villamar Omar Samad March 26,2019 1 1.b. - 4 Executive Summary Compass Kitchener has the mandate to evaluate the implementation of the City of Kitchener's Strategic Plan. In previous years Compass Kitchener has implementing the strategic plan. Given that we are at the end of the term of the 2015-2018 Strategic Plan Compass Kitchener has taken a different approach to evaluation of progress relative to the Strategic Plan, focused on the big picture regarding progress over four years. Our evaluation focused on business plan initiatives from 2015 - 2018 and included a review of: Overall Completion Results Completion by Project Category Project Completion by Strategic Plan Goals Project Evaluation by Strategic Plan Goals Past Approaches and Challenges What People Want to Know about Strategic Plan Implementation What People Think Makes a Good Evaluation Process Our findings include: Low Overall Completion: 225 projects were initiated of which 122 projects (54%) have been completed between 2015 and 2018. An additional 20% of projects are expected to complete in 2019. More Projects Planned Than Can Be Achieved: Given the low completion rate, it appeared to us that too many projects were being attempted each year and projects were taking longer to complete that originally planned. With so many projects included in the 2015-2018 business plans we found we were unable to adequately address evaluation of each and every project, instead we placed our focus on the big picture, spanning all four years. Numerous projects spanned multiple years, leading us to wonder whether they were all sufficiently complex to require work over multiple years, or whether this was a reflection of trying to do too many things simultaneously? If fewer projects were initiated, Compass Kitchener expects completion rates would improve. Also, allocating more resources to business plan projects would support completion of more initiatives. Transformative Strategic Projects: All projects in the business plans are important. However, the truly strategic transformative projects were not clearly identified. Staff recently developed criteria to classify projects as Strategic Initiatives, Business Plan Projects and Ongoing Business Initiatives and used those categories in developing the 2019 business plan. Uneven Project Distribution Across Strategic Plan Goals: Much good work was accomplished between 2015 and 2018, however the implementation of the strategic goals was not balanced across the strategic goals. Of the 122 completed projects approximately half (60 projects) were devoted to implementing one goal - Effective and Efficient Services. Most projects completed under this goal, were inward facing and this goal seemed to serve as a bit of a catch all for internal projects. Safe and Thriving Neighbourhoods had 24 completed projects, Open Government had 16 completed projects, Strong and Resilient Economy had 15 completed projects and Sustainable Environment and Infrastructure had 7 completed projects. Compass Kitchener believes that the public would like to see a more balanced distribution and delivery of strategic projects across the strategic goals. Open Government Highlights: The amount of detailed information now available online regarding Council Decisions and City Processes (OG14) is impressive. Participatory Budget pilot projects are encouraging. Community Engagement work is very much in keeping with citizen desires. Lowlights: We hoped to have seen more progress on the Municipal Response to the Truth and Reconciliation 2 1.b. - 5 Calls to Action (OG24) and one of the greatest disappointments regarding initiatives in the Open Government sphere is the cancellation of the . While the City has made decision making, the notion of a well-oard would provide a very accessible point of entry into cascading tiers of increasingly detailed information. Strong and Resilient Economy Highlights: Excellent work in developing, and beginning to implement, Make it Kitchener strategies that form a firm foundation for economic development moving forward, collaborating with others in establishing the Waterloo Region Economic Development Corp. and carryin downtown core. Lowlights: It is unfortunate, given the important roles that arts and culture play in our community, that the development of a new Arts and Culture Strategy was cancelled. It is important for this initiative to be reintroduced in upcoming plans. Safe and Thriving Neighbourhoods Highlights: It is exciting to see the progress that has been made with the Neighbourhood Strategy and initiatives such as increased Neighbourhood Events, Community Gardens and Development of Boulevard Beautification Guidelines - which enhance -Active Traffic Calming Design Features is important and will be greatly appreciated, helping to address traffic safety issues that are a key priority for citizens. Lowlights: Area Plans for the PARTS Fairway Station and Block Line Station Area Plans (NB32 & NB33) should not be delayed further as the sooner these plans are in place, the sooner all the areas around the ION stations will evolve to fit leading more people to take the ION, thereby reducing emissions and traffic congestion. Sustainable Environment and Infrastructure Highlights: Completion of the installation of the LED streetlights (SE01) and on-going work in managing the Emerald Ash Borer (SE19) are commendable. Lowlights: Too few projects were completed to advance this goal, despite widespread public interest in Trail improvements, Cycling Master Plan, Climate Action Plan and the Urban Forest projects that were planned but not completed in this period. Effective and Efficient Services Highlights: The number of projects completed (60) in this area over the past four years is impressive! Lowlights: The one project which we flagged as needing attention in our last Report Card and which should be highlighted as important for completion in 2019 is the development of a Long-Term Financial Plan. It would be highly beneficial to have in place as the City moves forward with all its planning and budget processes. Co-ordinated Evaluation for New Strategic Plan For years Compass Kitchener has faced real experience persuaded us that specific measurable outcomes delineated at the outset of planning each initiative would have real value. Outcomes set from the beginning would both support effective implementation of the initiative and provide a framework for objective evaluation of its success. Poised now at the outset of a new Strategic Plan, Compass Kitchener is looking forward to developing with staff an evaluation process based on this approach. Recommendations: In the course of discussions that took place as Compass Kitchener carried out this evaluation, the issue of progress in one area of initiatives potentially having detrimental impacts on other aspects of strategic plan implementation arose. As part of preparing the new Strategic Plan, we encourage consideration of Economy, Social and Environmental community priorities on an integrated basis - so that when initiatives are considered potential negative impacts on the other spheres are identified and plans made to 3 1.b. - 6 avoid/resolve/mitigate those potential conflicts. We also observed that there were opportunities for work to be integrated across spheres to achieve progress in more than one goal area. Our discussions and observations gave rise to a number of recommendations that we wanted to share, focused on the future - the new Strategic Plan under development and future evaluation of the initiatives flowing from it over the next four years. Our recommendations include the following: General 1.Ensure that Strategic Plan guides the development of the Business Plans and City budgets 2.Ensure allocation of sufficient resources for project planning and project management initiatives to support staff in completing projects on time 3.Undertake fewer projects to ensure more projects are completed 4.Consider smaller initiatives or series of initiatives, delivered in shorter periods of time - framing an agile approach wherein the City delivers a concept, gets citizen feedback early on, and decides to proceed, revise plans, or cancel at an early stage. Strategic Plan Implementation 1.Place more emphasis on delivering strategic initiatives and ensure strategic initiatives have the highest completion rate in business plans 2.Balance the distribution of projects amongst the Strategic Plan's goals Evaluation 1.Consider the input from the public on what is important to them in evaluating and reporting on Strategic Plan implementation in developing an evaluation framework 2.Establish the expectation that, at the outset of planning projects, specific measurable outcomes will be delineated for each initiative so that the success of a project can be assessed relative to those outcomes. 3.Metrics need to be meaningful - time, budget, savings, and impact on citizens. Develop a rubric and evaluat Strategic Vision (Caring, Vibrant, Innovative) 4.Evaluate the impact of all projects, including cancelled/delayed projects. 5.Be more celebratory when reporting on results and make results more accessible to the public through an interactive Dashboard The 2019-2022 Strategic Plan 1.Following through from the previous Strategic Plan, completion of the following projects should be included in Business Plans to complete the 2015 to 2018 Strategic Plan and implement the new Strategic Plan Citizen Dashboard Creative Hub Long-Term Financial Plan Traffic Safety Urban Forestry Strategy and projects Cycling Master Plan Planning around ION stations Initiatives to Increase Supply of Affordable Housing Arts and Culture Strategy Advocacy for Improved Commuter Service Climate Action Plan and Environmental projects Municipal Response to Truth and Reconciliation Call to Action 4 1.b. - 7 Contents Executive Summary 1.Introduction 2.Evaluation 2.1Overall Completion Results 2.2Completion by Project Category 2.3Business Plan Project Completion by Strategic Plan Goals 2.4Business Plan Project Evaluation by Strategic Plan Goals 3.Past Approaches and Challenges 4.What People Want to Know about Strategic Plan Implementation 5.What People Think Makes a Good Evaluation Process 6.Recommendations 5 1.b. - 8 1.Introduction Together we will build an innovative, caring and vibrant Kitchener. The 2015-2018 Strategic Plan contains 5 goals and under each goal are a number of objectives. The goals are: 1.Open Government 2.Strong and Resilient Economy 3.Safe and Thriving Neighbourhoods 4.Sustainable Environment & Infrastructure 5.Effective & Efficient City Services Council has provided Compass Kitchener with the mandate to monitor and evaluate progress against achievement of Strategic Plan priorities and to report on progress to Council and the community. Annually, the City of Kitchener prepares a Business Plan outlining work items that the administration will undertake. The items are intended to advance the Strategic Plan Vision, work towards achieving the Strategic Plan Goals and advance core services that the City provides. Compass Kitchener has reviewed the status of projects in the Business Plans prepared between 2015 and 2018 as the basis for evaluating progress made on implementing the 2015-2018 Strategic Plan. This report provides Council and the community with the results of our evaluation of progress made between 2015 and 2018. It also provides information and our advice to inform the future evaluation process for the 2019-2022 Strategic Plan now under preparation. Compass Kitchener greatly appreciates the opportunity it has to help shape the Strategic Plan for the City of Kitchener and to monitor its implementation from a citizen perspective. We thank Council for being open to this input. 2.Evaluation 2.1Overall Completion Results There were 225 projects initiated by the City of Kitchener in business plans between 2015 and 2018. As of December 2018, 122 business plan projects have been completed. This represents a 54% overall completion rate. An additional 20% of the 225 projects are expected to be completed in 2019. Our review found that a significant number of projects were delayed each year and some projects were cancelled or not started. This indicated to us that with the large number of projects underway, resources were spread too thin to accomplish all that was intended. We wondered whether the fact that plans for implementation of so many of business plan initiatives spanned multiple years was due to them all being sufficiently complex that multiple years are required, or whether it was a question of trying to do too many things simultaneously? If fewer projects were initiated, Compass Kitchener expects completion rates would improve. As well, allocation of more resources to projects, would have supported completion of more initiatives 6 1.b. - 9 2.2Completion by Project Category While all projects in the 2015 to 2018 Business Plans were associated with implementing the Strategic Plan, Compass Kitchener observed that many projects appeared to be strongly associated with regular business. Compass Kitchener asked staff to review this observation and categorize projects to identify the big strategic projects. Staff developed the following categories: Strategic Initiatives: Big Picture/Transformative These projects are directly connected to the strategic goals and objectives and were informed by Compass These projects clearly aid the city in achieving the strategic goals laid out in the 2015-2018 Strategic Plan Business Plan Projects: include Council priorities, items of high public/advisory committee interest, key service improvements, key ward projects and high importance to staff. They may be smaller scale actions that support a larger purpose or initiative of the strategic plan. Examples include: Lower Doon Land Use Review, Purchasing Procedures to Support New By-Law, Parking Payment Technologies, Advance the Customer Relationship Management Software, Server Systems Failover Capability, Electronic Agenda Management etc. Ongoing Business Plan Initiatives: include core service programs that are of high interest/importance to Council, public or staff. Examples include: Implementation of master plans o Development of Detailed Asset Management Plans (Asset Management Plans for Golf, Cemeteries, Parking Enterprise, Stormwater, Facilities) Implementation of city-wide strategies o Implementation of the Make It Kitchener Strategy o Age-Friendly Kitchener 2018 Business Plan As illustrated in Chart 1, staff identified that approximately 10 percent of all projects in the 2018 Business Plan were transformative strategic projects. Chart 1: Categorization of 2018 Business Plan Projects 7 1.b. - 10 Staff identified 12 strategic projects in the 2018 business plan. The status of these projects at December 31, 2018 was as follows: Open Government OG10 Participatory Budgeting (Status: In Progress) OG24 Municipal Response to the Truth and Reconciliation Calls to Action (Status: In Progress) Strong and Resilient Economy EC11 Intergovernmental Relations Passenger Rail (Status: In Progress) Safe and Thriving Neighbourhoods NB13 Sustainable Development Feasibility Study (Status: Delayed) NB18 Complete Streets Policy (Status: In Progress) NB27 Growth Management Strategy Review (Status: On Hold) NB32 PARTS Fairway Station Area Plan (Status: Future Project) NB33 PARTS Block Line Station Area Plan (Status: Future Project) Sustainable Environment and Infrastructure SE04 Corporate Climate Action Plan (Status: In Progress) SE06 Sustainable Urban Forest Management Program (Status: In Progress) SE12 Update the Cycling Master Plan (Status: In Progress) Effective and Efficient City Services CS09 Long-Term Financial Plan (Status: In Progress) 2018 seems to have been an unusual year due to the: The low number of projects completed The high number of projects in progress The high number of projects not started The high number of projects delayed The high number of initiatives shifted to future projects In some cases staff noted that insufficient resources were available with which to carry out these initiatives. This suggests that either a number of unforeseen items used resources otherwise intended to support initiatives in the plan or, the Strategic Placreation of the budget and implementation of the Business Plan. If the latter is the case, it will be important to ensure that the Strategic Plan appropriately guides business plans and budgets in future years. 2015-2018 Period When looking back over the 2015 to 2018 period Compass Kitchener found that the transformative strategic projects were few in number and had low completion rates as illustrated in Chart 2. 8 1.b. - 11 Chart 2: Projects completed as Planned between 2015 and 2018 *The 2018 business plan had 4 projects scheduled to begin after Dec 2018, these are not included in the total number of projects (92). Compass Kitchener observes that while a great deal of good work has been accomplished by the City over the 2015 to 2018 period only a handful of truly transformative projects have been completed and several projects that would have significantly advanced implementation of the strategic plan were not completed. These include: Completed Not Completed 2015-2018 Strategic Plan Sustainable Development Feasibility Study Kitchener Economic Development Strategy Long Term Financial Plan Community Gardens Program Make It Vibrant - Special Events and Urban Experience Strategy Neighbourhood Strategy Sustainable Urban Forest Management Program Corporate Technology Strategic Plan and Digital Strategy (Digital Kitchener) Complete Streets Policy Corporate Climate Action Plan Compass Kitchener suggests that going forward sufficient resources and priority be allocated to transformative strategic projects to achieve 100% completion as this will ensure achievement of the Strategic Plan priorities. 9 1.b. - 12 2.3Business Plan Project Completion by Strategic Plan Goals Compass Kitchener reviewed the projects that were undertaken between 2015 and 2018 relative to alignment with the 5 Strategic Plan goals. The status of 2015 2018 Business Plan projects by Strategic Plan goal is shown in Chart 3. Chart 3 Status of Projects by Strategic Plan Goal Projects 2015-2018 by Strategic Plan Goal and Project Status Open Government Strong and Resilient Economy Safe and Thriving Neighbourhoods Sustainable Environment and Infrastructure Cancelled 22, 10% 4, 2% Future Project Not Started 7, 3% 24, 11% Delayed 46, 20% In Progress 122, 54% Completed 020406080100120140 however the implementation of the strategic goals was not balanced. Of the 122 completed projects approximately half were devoted to implementing one goal - Effective and Efficient Services. In reviewing the projects completed for this goal, most projects were inward facing. This goal seemed to serve as a bit of a catch all for internal business plan projects. The next highest number of project completions was 24 for the Safe and Thriving Neighbourhoods goal, followed by Open Government with 16 completed projects, Strong and Resilient Economy with 15 completed projects and Sustainable Environment and Infrastructure with 7 completed projects. 2.4Business Plan Project Evaluation by Strategic Plan Goals Compass Kitchener reviewed the nature of the business plan projects planned for each strategic plan goal in more detail and provides the following qualitative evaluation. 10 1.b. - 13 Open Government (No initiatives were completed in 2018) Open Government Looking back over all 4 years: 2projects 1cancelled project The amount of detailed information now available delayed online regarding Council Decisions and City Processes (OG14) is impressive. It is exciting to see work being done on the two pilot projects trying out a model for Participatory 7in progress Budgeting. It will be important to see these projects reach their completion and the learnings from these two projects identified and tracked - as there clearly 16completed projects seems to be an appetite for citizen involvement of this type. It will be important to build on the learning from these initiatives as the City considers developing future such projects. Extensive work has been done developing, using and refining tools for Community Engagement creating accessible and important ways for citizens to provide input and engage in City processes. This is in keeping with community priorities as identified by Compass Kitchener through recent public consultation. Compass Kitchener hoped to have seen more progress on the Municipal Response to the Truth and Reconciliation Calls to Action (OG24) project. Kitchener prides itself on its multicultural community and fostering a Caring and Vibrant community are core aspects of the City's Vision - yet this initiative appears not to have progressed. Action on this project will advance the City's embodiment of being a caring and vibrant community. We look forward to seeing how Council is planning on moving forward with the recommended next steps for the project. For Compass Kitchener one of the greatest disappointments regarding initiatives in the Open Government sphere is the cancellation of the . While the City has made commendable progress in ations and decision making, the notion of a well- cascading tiers of increasingly detailed information - and as such would enable the efficient provision of answer While we know that citizens are seeking information on numerous topics, not all are looking for the level of detail found in minutes and reports - summary information in key areas could be provided effectively through a well-developed Citizen Dashboard (and could be linked to more detailed information offerings). 11 1.b. - 14 {ƷƩƚƓŭ ğƓķ wĻƭźƌźĻƓƷ 9ĭƚƓƚƒǤ (No initiatives were completed in 2018) Strong and Resilient Economy Excellent work was done in earlier years: Developing, and beginning to implement, 8cancelled strategies that form a firm foundation for Projects economic development moving forward, Collaborating with others in establishing 15completed the Waterloo Region Economic projects 2 delayed Development Corp. and projects Carrying out numerous initiatives to core. 6in progress EC11 Passenger Rail While recognizing that the City is playing an advocacy role here and does not have control over the development of rail services - it is really important that the City has been, and will continue to be, active in pursuing this initiative. It is important to note that there have been small increases in GO rail service achieved to date - which are good. However the City needs to continue to advocate for improved GO passenger rail service, including high speed rail, to meet the needs to local residents who need to travel into Toronto for employment and work-related matters and local businesses which need efficient means of bringing people from Toronto into town to work at, or with, their enterprise. Opening up a direct pathway been Kitchener and Toronto will increase housing values and market interest in Kitchener for those looking for more affordable housing in commuting distance to Toronto. Increased market values, however, will raise concern regarding access to affordable and accessibly priced housing for a number of current city residents. As a result we anticipate heightened urgency around the need for the City to move forward with initiatives in support of the development of affordable/accessibly priced housing. EC01 Arts and Culture Strategy Arts and culture are very important to our community, not only economically, but also in terms of: their contribution to the vibrancy of the community and its and its ability to attract and retain the people our businesses need; : the entertainment and creative growth opportunities and outlets that they provide; and the social issues they often present that promote dialogue within the community and help the community grow. It is unfortunate, given these important roles that arts and culture play in our community, that the development of a new Arts and Culture Strategy was cancelled, and it is important for this initiative to be reintroduced into the upcoming strategic plan. Creative Hub: The City has done good initial work in developing a concept, and exploring potential locations, for a creative hub, and issued a request for proposal for an operator of such a hub. Unfortunately none of the submissions received succeeded in fulfilling the established criteria. 12 1.b. - 15 Despite not finding an operator with an appropriate proposal with this first effort, it is important that the City not give up on this initiative, but rather that it take what has been learned through this process to date and now refine the concept as needed, and develop a new plan for proceeding with a revised creative hub initiative. It is essential to encourage the community to take part in many different spheres of economic development - from culture and the arts to manufacturing. Providing a space where individuals can meet and network is essential to business growth and economic development. It will be exciting to see what comes out of the creative hub. Kitchener Market Strategic Plan: The market is a huge part of the community, contributing to the animation of downtown Kitchener, keeping products local and encouraging local buying, helping local famers/vendors and supporting the local economy. {ğŅĻ ğƓķ ŷƩźǝźƓŭ bĻźŭŷĬƚǒƩŷƚƚķƭ Safe and Thriving It is exciting to see the progress that has been Neighbourhoods made with initiatives such as increased 5 cancelled 3 future Neighbourhood Events and Development of projects projects Boulevard Beautification Guidelines - which 3projects not in their community. 24completed started projects Work done on Pro-Active Traffic Calming Design Features is important and will be greatly 7delayed appreciated, helping to address traffic safety projects issues which are a key priority for citizens struggling with such issues. 15in progress Snow Angels is a brilliant program. It is great for students looking for volunteer hours, and promotes a sense of community, encourages knowing your neighbours and increasing safety. Engaged neighbours and volunteers are helping to provide safe cleared sidewalks and driveways and at the same time are reducing pressure on City staff in winter. Community Gardens are essential to healthy living and living locally. Having some plots maintained for all community use would be helpful. More land for not for profit organizations to use would be great. Evaluating the interest and popularity of these programs would help gauge community benefit. Evaluation is difficult does the city collect info based on usage and community interest/popularity benefit to the health of the community contribution to a greater sense of community? Creating programs to teach children and youth the benefit of fresh foods and cooking would be an amazing use of community gardens. It is also very positive to see the work that has been done in developing the Area Plans (NB02, NB08 & NB09), as those can play a key role in supporting usage of the LRT (and promoting the related environmental benefits) once it is in operation. However it is important that the PARTS Fairway Station and Block Line Station Area Plans (NB32 & NB33) not be delayed further as developing these plans will also 13 1.b. - 16 promote use of the ION once it is operating. The sooner these plans are in place, the sooner all the areas eeds, encouraging more people to take the ION, thereby reducing emissions and traffic congestion. The opportunity to define itself as a cosmopolitan mid-sized city that combines the best of small town qualities , finishing the Complete Streets Policy (NB18) would contribute to keeping the community safe, pedestrian friendly and connected. We understand that Growth Management Strategy (NB27) is now a regional responsibility but the City has a role to play in advocating that the social determinants of health be addressed as part of a growth management strategy in order to appropriately build a healthy social foundation and population. This will provide a healthy society for all residents, current, new and future. This would be consistent with the Strategic Plan and results of the 2018 Environics survey. partners to One of the actions is Facilitate and promote housing developments that provide options for a diversity of lifestyles and household typesBusiness plan project (NB) Development Incentives for Affordable Housing Phase 1 Research and (NB 16) Development Incentives for Affordable Housing (rental) addressed housing but it is not clear how many units of affordable or rental housing were created as a result of this work. 9ƓǝźƩƚƓƒĻƓƷ ğƓķ LƓŅƩğƭƷƩǒĭƷǒƩĻ Completion of the Community Energy Investment Sustainable Environment Strategy (NB20) is very much aligned with community and Infrastructure priorities as identified through recent community consultations. 2cancelled projects 7 completed projects Completion of Corporate Climate Action Plan (SE04) 3projects not should be a priority and would support the LƓƓƚǝğƷźƚƓ started aspect of the Strategic Plan vision. 2 projects delayed LED streetlights (SE01) and on-going work in managing the Emerald Ash Borer (SE19) are commendable. 7in progress The Sustainable Development Feasibility Study as noted was planned for 2018, but has now been delayed to 2019. Given the community priorities identified through recent consultations, it will be important to citizens that the City keep this project on track in 2019. Given community priorities identified through recent consultations and the recognized benefits of healthy tree canopies in urban environments, citizens will be keen to see the completion of the Community-Wide Tree Planting and Donation Program (SE10) and the initiation and development of the Sustainable Urban Forest Program (SE and SE06). 14 1.b. - 17 The Iron Horse Trail Improvement Strategy Central Section (SE07) was unfortunately delayed due to inclement weather. Given the level of citizen interest in walking and cycling trails, both for use in the course of regular day-to-day transportation around the City and for recreation, residents are keen to see this project, along with the Iron Horse Trail Improvement Strategy - North and South Section (SE23), reach completion. Similarly, cyclists are eager to see the completion of Updating of the Cycling Master Plan (SE12) and Implementation of the Cycling Master Plan (SE13) (both of which were originally slated for 2018 completion). Working to ensure safe, connected active transportation for all ages is essential to building a community that is /ğƩźƓŭͲ źĬƩğƓƷ ğƓķ LƓƓƚǝğƷźǝĻ. 9ŅŅĻĭƷźǝĻ ğƓķ 9ŅŅźĭźĻƓƷ /źƷǤ {ĻƩǝźĭĻƭ The number of projects completed (60) in Effective & Efficent City Services this area over the past four years is 1future project 6projects cancelled impressive! 1project not started The one project which we flagged as needing attention in our last Report Card 11projects delayed and which should be highlighted as 60completed projects important for completion in 2019 is the 11in development of a Long-Term Financial progress Plan - which would be highly beneficial to have in place as the City moves forward with all its planning and budget processes. Following through from the previous Strategic Plan, Compass Kitchener recommends that the following projects should be included in Business Plans to complete the 2015 to 2018 Strategic Plan and implement the new Strategic Plan Citizen Dashboard Creative Hub Long-Term Financial Plan Traffic Safety Urban Forestry Strategy and projects Cycling Master Plan Planning around ION stations Initiatives to Increase Supply of Affordable Housing Arts and Culture Strategy Advocacy for Improved Commuter Service Climate Action Plan and Environmental projects Municipal Response to Truth and Reconciliation Call to Action 3.Past Approaches and Challenges Compass Kitchener has some members who have served for 3 periods of appointment and have some insights and longer term perspective having gone through 3 evaluations. Compass Kitchener has used the business plans as the tool representing implementation of the strategic plan. consistent, clear criteria, and without full information. There have been too many projects in the business plans to be able to adequately evaluate each and every project. Many projects and programs in the business plans are core services and while very important to accomplish do not as directly advance the Strategic Plan. 15 1.b. - 18 Comments provided during past report card presentations to Council, revealed the fact that Council and Compass Kitchener have sometimes had differing views of how the City has performed in identified areas relative to its Strategic Plan. Sometimes Council members have felt the City had not performed as well as suggested by the report card, in other instances they felt the City had performed better. While some of those differences may be attributable to differing perspectives based on different experience, Compass Kitchener's sense is that many of the differences arose due to the absence of clearly outlined measurable outcomes established at the outset of projects, against which their progress or completion could be measured. Evaluations tended to be more subjective and therefore the conclusions were more varied. the Strategic and Business Plans, we have come to recognize the benefits that would arise if, as future plans are developed, specific measurable outcomes were delineated for each initiative at the outset, against which the success of progress or completion can be measured. Compass Kitchener notes that the majority of projects completed are inward looking projects to improve staff operations and very few are big strategic projects that will help transform the city to achieve its vision. Compass Kitchener believes citizens would like to see a more balanced delivery of strategic projects amongst the City's strategic goals. 4.What People Want to Know about Strategic Plan Implementation On January 24, 2019 Compass Kitchener convened an All Advisory Committees Meeting to obtain input and ideas on strategic plan evaluation. In summary Compass Kitchener heard that people want to hear about the following aspects of Strategic Plan implementation: Clarity Smart goals - be clear on what you are trying to do Benchmarks for success Criteria/measure of success? Clear explanation on how we and what we are measuring Concise reporting In addition to measures - why is the plan the way it is? What priorities are driving it? Content: Lead with the why: why was the project chosen How does this work align with Mission/Vision? People stories: how the project positively impacts people Shared progress on specific plans and brief summary of completed projects Promote the broader benefits, for example: the project is done but is there an increase in building permits and how is the City improved compared to previous years While it is helpful to know where the city is focusing its attention, we need to understand progress toward desired outcomes Give info on how people can engage to support progress on the plan What was scrapped and why? How is the strategic plan prepared? How are projects picked - why? 16 1.b. - 19 Who evaluates outcomes/progress? How do we decide if it is worth continuing or not? Metrics and data driven decisions After projects come off the business plan, how are they going to be reported long-term? Dashboards: Show progress on projects - through an easy dashboard - not a lengthy report Use bubbles/visuals like Edmonton High level "stop light" dashboard with opportunity to drill down Easy to digest info (stats, high level progress) Cascading levels of information - an icon/image to start and the built in ability to drill down deeper High level picture with detail behind it One way of reporting is by category, reporting geographically including spatial depiction of where actions are underway would also be nice Accessibility Graphs need to be AODA compliant - need to explain what graphs are illustrating. Smart formats: not just AODA, but in plain language, different language Is info in accessible formats for seniors (eg. Font)? More accessibility on website Clarity on graphical info and shared info Translations available City website - make it easy to navigate Look at the way City communicates with individuals where English is not the first language? Budget How much money is spent to achieve each priority? How is budget divided on strategy Tax dollars at work = have inserts with tax bills Was the individual initiative successful and what was the cost? Cost to taxpayers, value for money of implementation Look at and present the budget reflecting allocations to the Strategic Plan Various Media Better communication with public about the existence of plans Report progress a variety of ways More social media - with link to actual info Maintain different communication methods (digital/print), the Record, Kitchener Today, Radio (570, CBC etc.) Communication/ease of navigation of website Provide/explain opportunity for public to engage? Graphics, tell stories with pictures 17 1.b. - 20 Relationships More synergies between other communities How do the goals align with region/province? Info on progress of each committee is not easily available 5.What People Identified as Making a Good Evaluation Process At the January 24, 2019 All Advisory Committees meeting, Compass Kitchener asked for input on what would make a good evaluation process for the Strategic plan. In summary this is what we heard: Criteria - balanced economical/social/environmental considerations Balance of qualitative and quantitative evaluation Setting tangible goals at the beginning of projects and establishing desired outcomes upfront Did project actually, address need or perceived need? Go deeper than kms of bike lanes, instead use increase in number of users "Success stories" - pictures with people. Outcomes (e.g. new ice rink - show children skating on it) Timeline considerations/budget considerations - Was it completed on budget? Two tiers of evaluation: 1. completion of project, 2. impact of project Good monitoring data - long term data Benchmarking against other municipalities Hands on perspective of citizens in the community How did it specifically affect people? Maps - can be a great visual, distribution by wards/neighbourhood. Is it sustainable Projects don't always land where you plan but outcomes and learning are valuable and you want to capture these Different measurements may be needed for business plan projects vs strategic plan objectives How does the activity tie to the strategic plan? include input from residents 6.Recommendations In the course of discussions that took place as Compass Kitchener carried out this evaluation, the issue of progress in one area of initiatives potentially having detrimental impacts on other aspects of strategic plan implementation arose. As part of preparing the new Strategic Plan, we encourage consideration of Economy, Social and Environmental community priorities on an integrated basis - so that when initiatives are considered potential negative impacts on the other spheres are identified and plans made to avoid/resolve/mitigate those potential conflicts. We also observed that there were opportunities for work to be integrated across spheres to achieve progress in more than one goal area. Our discussions gave rise to a number of recommendations that we wanted to share, focused on the future - the new Strategic Plan under development and future evaluation of the initiatives flowing from it over the next four years. Our recommendations include the following: 18 1.b. - 21 General 1.Ensure that Strategic Plan guides the development of the Business Plans and City budgets 2.Ensure allocation of sufficient resources for project planning and project management initiatives to support staff in completing projects on time 3.Undertake fewer projects to ensure more projects are completed 4.Consider smaller initiatives or series of initiatives, delivered in shorter periods of time - framing an agile approach wherein the City delivers a concept, gets citizen feedback early on, and decides to proceed, revise plans, or cancel at an early stage. Strategic Plan Implementation 1.Place more emphasis on delivering strategic initiatives and ensure strategic initiatives have the highest completion rate in business plans 2.Balance the distribution of projects amongst the Strategic Plan's goals Evaluation 1.Consider the input from the public on what is important to them in evaluating and reporting out on Strategic Plan implementation in developing an evaluation framework 2.Establish the expectation that, at the outset of planning projects, specific measurable outcomes will be delineated for each initiative so that the success of a project can be assessed relative to those outcomes. 3.Metrics need to be meaningful - time, budget, savings, and impact on citizens. Develop a rubric and evaluate projects on how well they contribute to the community and align wi Vision (Caring, Vibrant, Innovative) 4.Evaluate the impact of all projects, including cancelled/delayed projects. 5.Be more celebratory when reporting on results and make results more accessible to the public through an interactive Dashboard The 2019-2022 Strategic Plan 1.Following through from the previous Strategic Plan, completion of the following projects should be included in Business Plans to complete the 2015 to 2018 Strategic Plan and implement the new Strategic Plan Citizen Dashboard Creative Hub Long-Term Financial Plan Traffic Safety Urban Forestry Strategy and projects Cycling Master Plan Planning around ION stations Initiatives to Increase Supply of Affordable Housing Arts and Culture Strategy Advocacy for Improved Commuter Service Climate Action Plan and Environmental projects Municipal Response to Truth and Reconciliation Call to Action Conclusion Again, we would like to convey to you how much Compass Kitchener appreciates the opportunity Council has provided for us to help shape the Strategic Plan for the City of Kitchener and to monitor its implementation from a citizen perspective. We thank Council again for being open to this input. 19 1.b. - 22 Appendix 1: Compass Kitchener Evaluation Methodology odology consists of 6 components. 1.Compass Kitchener asked staff to prepare a summary of the status of business plan projects between 2015 and 2018 and reviewed the analysis. 2.Compass Kitchener reviewed the past evaluation methodologies and discussed the challenges members encountered previously in reviewing the business plans. Extracts of previous report cards are in Appendix 1 to this report. th 3.Compass Kitchener convened an All Advisory Committees meeting on January 24 to consult on evaluation of the strategic plan. The results of the evaluation consultation are included in Appendix 2 to this report. The questions asked of the 60+ participants were: What do people want to know or hear about the implementation of the strategic plan? and How should that be measured? What ingredients or criteria make for a good evaluation process? 4.Compass Kitchener reviewed the 2018 Business Plan and the projects included in the 2015 to 2018 business plans to assess if the projects helped to achieve the vision of the 2015 to 2018 Strategic Plan - Together we will build an innovative, caring and vibrant Kitchener. 5.Compass Kitchener prepared an evaluation of the 2018 Business Plan and an evaluation of the results of the 2015 to 2018 business plans against achieving the goals of the strategic plan. 6.Compass Kitchener prepared recommendations for consideration in developing the new strategic plan that resulted from the foregoing reviews and analysis. 20 1.b. - 23 REPORT TO:Council DATE OF MEETING:April 1, 2019 SUBMITTED BY:Kathryn Dever, Director,Strategy and Corporate Performance, 519 741 2200 ext. 7370 PREPARED BY:Karen Cooper, Manager,Strategic and Business Planning, 519 741 2200 ext. 7817 WARD (S) INVOLVED:All Wards DATE OF REPORT:March 26, 2019 REPORT NO.:CAO19-006 SUBJECT:Council Review of Draft2019-2022Strategic Plan Goals and Actions ___________________________________________________________________________ RECOMMENDATION: That the draft Strategic Plan goals and actions contained in Report CAO19-006be made available for public review and comment prior to finalizingthe 2019-2022 Strategic Plan for Council consideration in June 2019. BACKGROUND: Staff presented draft goals and example actions on January 29, 2019 as part of seeking Council input and direction in preparing a new Strategic Planfor 2019-2020.The information was based on in-depth engagement with the public, Council and staff over the course of many months. Council members provided extensive comments and suggestions for staff to work with. Following the Council Strategy Session, staff met with Councillors individually to gain a deeper understanding of areas tofocus on and discussedhow Councillor comments would be addressed in creating the new Strategic Plan. Additional work was completed by the Corporate Leadership Teamand representatives of the Strategic Plan staff team to develop thecomplete set of goals and actionsin this report.Appendix A to this report demonstratesaccountability for howCouncil comments have been addressed, and changes made,in developing the draft goals andactions presented in this report. This report presents five draft goals and proposes twenty-five specific, measureable, achievable, realistic and timely actions for Council review. The goals and actions are transformational and, whensuccessfully implemented over the next four years, will address community and Council priorities. The purpose of this report and associated Council strategy session is to validate this content with Council prior togoing out for one final round of public feedbackduring April and May 2019. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 orTTY 1-866-969-9994 for assistance. 1.c. - 1 REPORT: Following consultation with Council, five goal statements have been developedfor the 2019- 2022 Strategic Planin the following thematic areas: People Friendly Transportation Environmental Leadership Vibrant Economy Caring Community Great Customer Service Each of the five goal statements has five associated actions for a total of 25 actions in the Strategic Plan. Staff have begun to map how the proposed goals and actions address the United Nations Sustainable Development Goals (SDG). SDG Goal 11-Sustainable Cities and Communities- is most relevant,but all of the SDG goals can be considered in developing Kitchen Plan. The alignment with SDGs is indicated by the relevant SDG iconsassociatedwith the draft Strategic Plan goalsas depicted below. The following Strategic Plan goals and actions are proposed for Council feedback and public review. 1.c. - 2 1.c. - 3 Next Steps Input received from Councilwill be taken into consideration in refining the draft goals and actions, followed by a period of community engagementwith the public and stakeholders in April and May 2019. 1.c. - 4 Awarenessof the opportunity for thepublic and stakeholders to review andprovide comments onthedraft Strategic Plan goals and actionswill be promoted through a mediarelease,a social mediacampaign,Engage Kitchener online survey,direct contact with a broad rangeof stakeholders including citizen advisorycommittees, neighbourhood associations, business, social, environmental and institutionalorganizations and internal staff engagement. Engagement will focus on: What do you think of the actions we have proposedtotakein each of the theme areas over the next four years? What opportunitiesdo you see to work with the City on implementing thegoals and actions? A recommended Strategic Plan will presented to the Finance and Corporate Services Committee for review and discussion prior to Council consideration/final approvalinJune2019. Staff are also working collaboratively with Compass Kitchener to jointly develop an evaluation program and criteria to assess and objectively measure progress in implementing the Strategic Plan. The criteria and approachwill be providedto Council in June 2019along with consideration of final approval of the Strategic Plan. Direction Sought FromCouncil session been suitably addressed in the revised goal and action statements above? Is Council sufficiently satisfied with the goal and action statements such that they can be shared with the community for a final round of public input prior to finalization at a future Council meeting? Does Council have any feedback on the process to engage with the public on the draft Strategic Plangoals and actionsas outlined in the Next Stepssection of this report? ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: The development of the 2019-2022 strategic planisintended to further theachievement of the Cthat together we will build an innovative, caring and vibrant Kitchener. 1.c. - 5 FINANCIAL IMPLICATIONS: Strategic actions that involve the introduction of new programs and services, or involve substantial increases in service levels, will require additional resources to be sustainable. This may include both financial as well as human resources to deliver enhanced service levels. Where possible, staff will explore alternate funding sources or reallocate existing resources to address require investments of tax supported or user rate supported funding. On April 1, 2019, Council will have before it recommendations to consider in setting the development charge rates that will directly impact the provision and timing of community facilities listed in the actions under Caring Community. Staff will amend the draft Strategic Plan action thatliststhecommunity facility charges. COMMUNITY ENGAGEMENT: INFORM nda in advance of the council/committee meeting. CONSULTOver 1,250citizens participated in the community engagement process, including the Environics citizen survey reported to Council in April 2018, and the Your Kitchener, Your Say!community engagement campaign conducted inJune and July 2018and reported to Council in August 2018. Compass Kitchener and the City jointly hosted a meeting with representatives from all of the Advisory Committees on January 24, 2019 to consult on goal statements and actions, as well as to get input on what Strategic Plan information the City should be monitoring and reporting on from a citizen perspective. ACKNOWLEDGED BY: Dan Chapman, CAO Attachments: Appendix A: Addressing 1.c. - 6 Appendix: A Addressing Fromthe January 29, 2019 Strategic Planning Session Preliminary Content/Council CommentsRevised Draft Content/Response Safe TransportationPeople-Friendly Transportation PreviousGoal:RevisedGoal: Transform how people move through the city by making ensuring that it is safe, comfortable, convenient the transportation network safe, comfortable and connected. and affordablefor all users regardless of age, ability or economic status. How does affordability get factored in? (what Response: cycling and walking are more affordable/people does affordable mean in goal statement) can participate fully may imply GRT bus rates Do you need last part of goal statement related Affordability and other qualifiers removed, to status of people? autonomous cars -how will they be managedNew Action:Encourage and incentivize alternative modes of LED vehicletrackingtransportation by developing and subsidizing a bikeshare program by 2021 Autonomous cars and LED vehicletracking could be considered for future business plan projects Previous Example Action #1: Install a Revised Action: Install a continuous and protected cycling continuous, connected, protected cycling network network that connects adjacent neighbourhoods to the within a 2.5 km (10 minute cycle) radius of the downtown by 2021 downtown by 2022. Segregate cycle lanes Better pedestrian routes as alternative to carsNew Action:Develop a plan to create pedestrian-first streets between Victoria Park and City Hall and between the LRT and Kitchener Market by 2022. Previous Example Action #2: Develop a Revised Action:Develop a set of Complete Streets(safe Complete Streets Guideline by 2020 for all future and comfortable) guidelines and an associated evaluation roadway construction projects (along with a scorecard by 2020 to apply to roadway construction projects. scorecard) that emphasizes safety, sustainable transportation, the environment and sense of community. Include walking, trails, other transportation than cycling Benches along trails trails are for recreation as Action:Improve connectivity and year-round maintenance to well as transportationmulti-use trails and pathways as prioritized through the Trails, snow clearing walkways and walkways Cycling and Trails Master Planwith an initial target of Paved winter maintained trailsproviding year-round access to an additional 3 km of existing trails by 2022. 1.c. - 7 Environmental LeadershipEnvironmental Leadership Previous:Revised: Promote a healthyand livablecommunity by Achieve a healthy and livable community by proactively leading efforts to achieve greenhouse gasmitigating and adapting to climate change and by conserving natural resources. reductions, improvements to green infrastructure, and resiliency to climate change. Like reference to healthy,livable community Example Action #1:Implement a Corporate Revised Action: Launch and implement a Corporate Climate Climate Action Plan in 2019 to guide an absolute Action Plan to achieve an absolute greenhouse gas greenhouse gas reduction of 8% by 2026 emissions reduction of 8% by 2026. through actions within the key focus areas of buildings, pumping stations, outdoor lighting, transportation and waste. New Action: Starting in 2019 leverage the Energy Efficiency Sustainable City buildings e.g. Solarpanels, rain catchmentReserve Fund and other resources to reduce consumption Smart water metersand emissions at our facilities and in our operations. New Action: Reduce waste diverted to landfills by Downtown waste diversion, recycling, compost collection for businessimplementing new diversion programsat our facilities and Waste diversion key downtown and in parksevents by 2021. Waste diversion, recycling in parks too Partner with REEP New Action: Develop a Community Climate Action Planwith partner organizations by 2020. Urban forestry needs to be included plant more New Action: Implement the Sustainable Urban Forest trees on public land, tree protection for private Strategy with a focus on establishing a tree canopy target by lands needed in partnership with community; 2020 and eliminating the current (2018) tree planting backlog by 2022. address planting on private lands too Growing EconomyVibrant Economy Previous GoalRevised Goal: Build a vibrant city by making strategic investments to Build a globally competitive and dynamic city by support job creation, economic prosperity, arts and diversifying our economy and making strategic culture, and great places to live. investments to create good jobs, economic prosperity and a vibrant community. Response:Vibrant added as descriptor to theme,wording something that brings energy to the City of Kitchener community centers, markets at community centers, arts & culture, park activities Vibrancy theme areas sound static right now and we need to speak more to how we are changing 1.c. - 8 New Action: Develop the Make it Kitchener 2.0 Strategy by - 2020 with a focus on transformative actions to ensure the culture it is very diverse attraction, success and retention of diverse businesses, Embrace Tech sector talent, and arts/culture across the city. Retail attraction Cut red tape for special events e.g. re alcohol New Actionunder Caring Community:Engage a broad Focus on special events vibrant , alcohol flow cross-section of the community, including the arts and freely through an event not constrained to a creative industry sector and multi-cultural communities to roped off area legislative change needed develop a new and inclusive Arts and Culture Plan by 2021 Arts and Culture Wheredoes arts and culture fit in New Action: Complete a comprehensive inventory of city- Consolidate city landholdings for redevelopment opportunities in the long termowned properties by 2020 to determine how they could be effectively used to advance city strategic objectives. New Action:Create a new Urban Design Manual by 2019 Support smaller intensity developments that expresses city building and design expectations to Need to include city building ensure vibrant new development throughout Kitchener. Example Action #1: Support the build out of a Revised Action: Foster the creation of a citywide network of city-wide network of incubators, accelerators and incubators, accelerators and co-working spaces by co-working spaces, initially focusing on completing the buildout of the Creative Hubin 2019 and manufacturing, food and creative industries, undertaking business cases in 2019-2021 for the food, opening at least one new facility by 2022.manufacturing and health/med-tech industries. th Use 10floor city hall as incubator/business growth space Request for update on Digital Strategy and Digital Lab has Would like a better understanding of where we been referred to Corporate Services to provide an update are with Digital strategy and the Digital Lab do we need tosupport it to address things like autonomous vehicles? Example Action #2: Continue to position the Revised Action: Develop a vision for downtown Kitchener City's downtown lands as leading edge and continue to position the downtown as a leading redevelopment opportunities, bringing at least destination for redevelopment opportunities, with at least one one new parcel to market by 2020, while new parcel of land brought to market by 2020. Finalize finalizing master plans for the Bramm Yards by master plans for the Bramm Yardsby 2021 and for the Civic 2021 and the Civic District by 2022.District by 2022. Would like to see retail attraction to downtown as part of growing economy transformative and to fill empty space more reasons to come downtown than dining Downtown business attraction -need to increase efforts to bring business downtown Caring CommunityCaring Community Previous Goal: New Goal Foster a more inclusive community by partnering with others to make housing more affordable, providing welcoming community spaces and programs, increase mental health and addiction supports, better engaging, serving and supporting our diverse and better engage and serve the full diversity of populations and helping to make housing affordable our community. 1.c. - 9 Inclusive part is good Statement does not reflect what we do- regional responsibility Like affordable housing in goal statement Address mental health in actions Example Action #2: Establish a task force of Revised Action:Create a comprehensive Diversity, Equity community members and staff that will create a and Inclusion Strategy by 2020 to combat systemic barriers comprehensive Diversity and Inclusion Strategy to full economic and social participation in the city. for the City by June 2020 which will make Response:age/friendly older adults could be considered in recommendations about how the City can better engage and serve the full diversity of the Diversity, Equity and Inclusion Strategy and in Urban Design community through actions such as addressing Guideline under Vibrant Economy. Digital divide is both an systemicbarriers and better reflecting the full equity issue and an economic development issue. diversity of the people we serve. Where does Age-friendly fit Older adults need to be looked at Address digital divide -every household should have access to internet Previous Example Action #1: Create with Revised Action:Create an Affordable Housing Strategy for community partners and stakeholders a made in Kitchener by 2020 in collaboration with Waterloo Region, Kitchener affordable housing strategy by 2020.community groups and the development industry Common senseapproach to affordable housing, need incentives too, work with development industry increase rental supply; partner with developers to increase supply and thus reduce rent rates Multi-generational homes cultural and affordable aspects Add rental units through intensification and in existing homes Use caution in emphasis on jurisdiction there are things City can do even though a regional responsibility Happy to see affordable housing in Caring Community Before strategy is complete in 2020 we have new development coming in can we have discussion to add in consideration of affordable housing units to the new applications before strategy complete Our community has tools to support affordable housing Smart Growth Kitchener should be leader in intensification and provide tools to property owners and provide opportunities for affordable housing more units on a property carriage homes, more units in a house policy change needed 1.c. - 10 Affordable housing: does it mean region wide? is this the Region/other partners? New Action:Reduce the stigma experienced by those living Address mental health in actions with mental illness and addiction in our community by Important to have mental health supports but educating and training staff, and by supporting the creation of has left impression that it refers to downtown safe consumption and treatment facilities in Kitchener. needs to be for whole city supports for staff to better serve people who are homeless or have mental health issues should be action item h supports Mental health + supports region New Action:Better utilize existing facilities, provide relevant New community facilities need to be part of programming, support the equitable distribution of leisure strategic plan programs and resources across neighbourhoods and Need a focus on new community centers will complete the following: actions be specific under Caring Community An Open Space Strategy by 2021 to reflect this Pending Development Charges determination: Support for community centers to be included -Huron Brigadoon Community Centre Offer free community space for people to use -Rosenberg Community Centre Better progress on Community Centres, -Mill Courtland Community Centre Expansion Rockway, other capital projects -RBJ Schlegel Park sports fields + indoor pool + turf Programming community center well supported Community programs would be more reflective of what we do / better as an Action statement Edible forest gardens Vibrant parks respond to changing trends develop parks more quickly/often -increased investment to reduce the lifecycle replacement and adapt to changing neighbourhood needs New Action:Engage a broad cross-section of the Need to be better at supporting arts and community, including the arts and creative industry sector culture community gap exists now city to and multi-cultural communities to develop a new and provide leadership staff to come back with inclusive Arts and Culture Planby 2021 more tangible action Response: Could be considered in the future when Participatory budgeting should be an action evaluation is before Council. item if evaluation of pilot is positive Would like to see participatory budgeting under caring community Customer ServiceGreat Customer Service Previous Goal;Revised Goal: Increase resident satisfaction,trustandsatisfaction, trust and engagement engagementwith their municipal government by with the City by providing friendly, easy and convenient providing positive customer experiences that are services. friendly, easy and convenient. 1.c. - 11 Response:Theme has in actions to align with Corporate Customer Service Strategy Example Action #1:Create a centralized portal Revised Action:Create a central customer service portal on will be launched by early 2021 that residents can use to: track service requests, send proactive tailored messages to (1)initiate, track and receive updates on servicecustomers and conduct financial transactions. requests,(2) receive proactive, tailored updates/notifications, and (3) perform financial transactions with the City. Example Action #2:Provide on-demand multi-Revised Action:Provide on-demand support for customer lingual customer service support for inquiries and services requests in a variety of languages through the Corporate Contact Centre by 2020. Contact Centre by the end of 2020. Internal focus measurement /evaluation New Action: Introduce a corporate-wide Customer component to get feedback on our servicesSatisfaction Program that will allow for the collection of real- time feedback from customers accessing City facilities, programs and services by 2020. New Action: Set specific and clearly communicated service Internal focus measurement /evaluation component to get feedback on our serviceslevels for frequently asked about or accessed City services, including tree maintenance, parking, property standards complaints, snow clearing and grass cutting by 2022. New Action: Implement a comprehensive program of Citizen centered approach preferred (previous approach) current wording seems to imply Customer Experience Reviewsto help ensure services are people are service recipients perspective by 2022. OtherOther PartnershipsResponse Support partnerships with universities and the Strategic Plan will include a commitment to ensure colleges in addition to tech sector progress on the planand the need to work with partners to Env Goal is very important / as written seems deliver on the goals and actions to fall on City alone should include what falls on others to reduce etc Would like to see public private partnerships so that we can move faster Have a staff team dedicated to partnerships Partner with REEP Caution jumping on P3 bandwagon concerned about costs Technology Response: Use of technology and innovation runs through every Goal and will be highlighted in the introduction to the Tech innovation needs to be inStrategic Plan Strategic Plan. tech and innovation 1.c. - 12 REPORT TO: Council DATE OF MEETING: April 1, 2019 SUBMITTED BY: Ryan Hagey, Director of Financial Planning, 519-741-2200 x 7353 PREPARED BY: Ryan Hagey, Director of Financial Planning, 519-741-2200 x 7353 WARD (S) INVOLVED: All DATE OF REPORT:March 6, 2019 REPORT NO.: FIN-19-029 SUBJECT: 2019Development Charges Priorities & Rate Options ___________________________________________________________________________ RECOMMENDATION: For Discussion Staff are seeking Council’s initial feedback with respect to whether or not future development charge rates should be set at the maximum allowable charge per the development charge legislation, or at some lower amount.If the consensus is that the draft development charge rates should be set at an amount lower than the maximum allowable charge, Council members are asked to identify projects that could potentially be reduced or removed from the capital program (Appendix A) due to the reduced funding available for projects.This feedback will guide staff in the finalization of a draft development charges background study for public input. BACKGROUND: The Development Charges Act and its associated regulation allow municipalities to impose development charges to pay for growth-related capital costs to service new development. In order to do so, under the terms of the Act, municipalities must prepare a development charge background study and pass a bylaw to determine the development charges, taking the following into account: A forecast of the amount, type and location of development anticipated in the municipality for which development charges can be imposed. The average capital service levels provided by the municipality in the 10-year period immediately preceding the preparation of the background study. A review of future capital projects, including analysis of gross expenditures, funding sources and net expenditures incurred or to be incurred by the municipality, to provide for the expected development. An examination of the long term capital and operating costs for capital infrastructure for each service to which the development charges relate. Development charge (DC) bylaws have a maximum term of five years. Kitchener’s DC bylaw expires on July 1,2019. In order to update the bylaw, a background study must be published, and at least one public meeting must be held. 2 - 1 Council has already provided direction to publish a background study and schedule a statutory public meeting.The direction provided by Council today will inform the content of the background study, which is planned to be published no later than April 25, with the statutory public meeting scheduled for the Committee meetings on May 13. The purpose of this report is to inform Council of the maximum calculated DC rate increase, to provide options for a lower rate increase, and outline the potential impact on DC funded capital projects if a lower than maximum rate is chosen. REPORT: Development Charge (DC) Rate Calculation The DC Act and associated regulation prescribe how DC rates are calculated. One of the slides th from the February 25DC presentation showed the methodology of a DC process, with the end goal of calculating DC rates for residential and non-residential properties. This graphic is shown below. DC Study Process Informs Growth ForecastGrowth-Related Capital Needs Amount, type and locationWhat will we need to build? 10-Year Historical Service Levels How much can be funded from DCs? Capital Needs Eligible to be Operating and Replacement funded from DCs Cost Analysis, including Asset Remainder funded from other Management Plans – for sources informationLegislated Reductions Grants, other contributions, benefit to existing, available DC reserves ,post-period benefit, required discount Costs Eligible for DC Recovery Residential Sector Non-Residential Sector (per m2 of GFA) (per unit) The three highlighted boxes in the graphic show three major bodies of work that influence DC rates. Each of these steps in the process is described in more detail below. 1.Growth Forecast The growth forecast estimates the amount, type, and location of development that will happen within the City. For instance, the growth forecast would project the number of single 2 - 2 detached homes that will be built in the suburban areas versus how many apartment units are going to be built in the central neighbourhoods. For the 2019 DC Study, the City’s growth forecast is largely based on the Region’s “moderate” growth forecast, which sees the Region reach its provincially established Places to Growgrowth targets by 2041. The City’s growth forecast also layers on specific trends and variations being experienced in Kitchener to adjust the region-wide forecast. 2.Growth-Related Capital Needs The need for capital infrastructure is informedby the growth forecast. If the City is going to grow quickly, it means there will be a higher demand for growth related infrastructure, so the City’s capital costs will be higher over the next 10 years. It also means there will be more new development amongst which the costs can be spread. Growth related infrastructure includes “hard” services like roads, water, and sewer, as well as “soft” services like indoor & outdoor recreation facilities and libraries. Typically “hard” infrastructure has to be in place before development occurs (the roads, watermains, and sewers must be built before a subdivision can develop), but “soft” infrastructure can occur after development has already been constructed. Waiting too long to build “soft” infrastructure amenities has negative impacts on residents though, as it means they do not have the same kind of amenities in their neighbourhoods as many other Kitchener residents. Later portions of this report will describe the maximum DC rate increase allowed based on DC legislation and provide options for how that increase could be reduced. But any option that reduces the DCrate increase from the maximum allowable charge will require a reduction/delay in the construction of growth related capital infrastructure. 3.10-Year Historic Service Levels DC legislation limits the funding envelope available to build new infrastructure based on the infrastructure that has been in place for the past 10 years (the historic service level). In order to calculate the historic service level, the City has to quantify the infrastructure it has had over that time period (e.g. number of parks, square footage of community centres, kilometres of roads) and what it is worth (e.g. $/park, $/square foot, $/kilometre). For the 2019 DC Study, fundingenvelopes in many areas have gone up significantly due to a number of factors, including: More comprehensive inventory listings based on better asset management data Full project costing for facilities (not just construction costs) Capital project costs increasing faster than indexing or base inflation Increasing land values Larger funding envelopes, based on the City’s historic service levels, means there could be more funding available to construct new growth-related infrastructure. But it also means significant increases to DC rates. 2 - 3 Scenario 1 - Maximum Development Charge Rates As shown in the graphic earlier in this report, DC rates are calculated for both residential growth (per unit) and non-residential growth (per square metreof gross floor area). The residential and non-residential rates are determined by adding up the total amount of DC eligible costs by service, and then dividing those costs by the amount of forecasted growth. Kitchener further subdivides these rate increases by geography, into the suburban area and central neighbourhood area. The central neighbourhood area includes the downtown and expands out to the Expressway (on the east and south), Westmount Road (on the west) and the City of Waterloo (on the north).The typical focus on DC discussions has traditionally been on the increase to suburban residential rates, but rate increases for the others are also provided. Based on the calculation methodology noted above, the maximum DC rate increase for a single detached home would increase by 92%, from $11,572 to $22,201. This rate increase would fund the City’s entire “hard” and “soft” growth-related capital program, leaving nothing unfunded in the DC Background Study. Further, this level of rate increase would also allow provisions in some areas for works not yet known or specifically identified. The table below shows the draft maximum development charge for single detached properties in the suburban and central neighbourhoods, as well as the non-residential charges.The non- residential charges are decreasing, or not increasing as drastically for the following reasons: 1.Non-residential does not contribute towards some of the “soft” services, as they are deemed to only be a benefit to residential growth. This means the overall cost pool to be funded by non-residential development is smaller than the residential cost pool. And for this DC Study, the largest increases are in Indoor Recreation and Outdoor Recreation, which are residential only services. Library, Indoor recreation, Outdoor recreation, Cemeteries are residential only Non-residential contributes towards Fire, Public Works, Parking, and Studies 2.The growth projection for this DC Study includes increased non-residential growth compared to the previous study, especially in the central neighbourhoods. This means the cost pool for non-residential growth is spread over more development, which drives down the rate increase compared to residential growth. Scenario 1 – Draft Maximum Development Charge Rate Changes Current Calculated Charge TypeLocation% Change RateRate Residential (Single)Suburban$11,572$22,20192% Residential (Single)Central Neighbourhood$6,030$14,585142% 22 Non-ResidentialSuburban$59.60/m$68.31/m13% 22 Non-ResidentialCentral Neighbourhood$18.01/m$16.64/m-8% 2 - 4 While the rate increases to the residential DC rates are substantial, the DCs are still a relatively minor portion of the total cost of a new home. As was noted by Hemson (the City’s DC consultant) during the previous presentation, there is almost no correlation between DCs and house prices.In other words, the price for a new house is dictated by what the market will bear, and the market price doesn’t increase or decrease if DC rates go up or down.This position is echoed by the Municipal Officers Association (MFOA) of Ontario in their recently produced document “Who Pays For Growth?” (attached to this report). That being said, it is important to have buy-in from the development community whenapproving new DC rates, as the ratescould be appealed. Thebasis of the appeal cannot simply be due to the amount of the increase, but must relate to methodology or assumptions used to calculate the rates. Staff are confident the City is using proven and reasonable methodology/assumptions to calculate the new DCrates, but is also mindful of the magnitude of the increase. Given the size of the maximum rate increases, staff have prepared two alternate rate increase scenarios. To achieve rate increases below the maximum charge, parts of the “soft” capital program have been delayed to be outside the 10-year DC capital forecast. None of the “hard” capital program has been affected as these services need to be installed in order for development to proceed. Scenario 2 caps the suburban residential rate increase at50%, with associated reductions in each of the other rates as well. Scenario 3 caps the suburban residential rate increase at 25%. The tables below showthe revised rates for residentialand non-residential properties under each of these scenarios. An appendix to this report outlines the specific projects that have been delayed or reduced to achieve these scenariosand provides the rationale for why those projects were reduced. Scenario 2 – 50% Development Charge Rate Change for Suburban Residential Current Calculated Charge TypeLocation% Change RateRate Residential (Single)Suburban$11,572$17,30350% Residential (Single)Central Neighbourhood$6,030$10,30171% 22 Non-ResidentialSuburban$59.60/m$54.04/m-10% 22 Non-ResidentialCentral Neighbourhood$18.01/m$5.98/m-67% Scenario 3 – 25% Development Charge Rate Change for Suburban Residential Current Calculated Charge TypeLocation% Change RateRate Residential (Single)Suburban$11,572$14,47925% Residential (Single)Central Neighbourhood$6,030$7,87431% 22 Non-ResidentialSuburban$59.60/m$50.53/m-18% 22 Non-ResidentialCentral Neighbourhood$18.01/m$4.84/m-73% 2 - 5 The graph below providessome contextabout residential DCsin Ontario’s largest cities (population > 100,000). This information comes from the 2018 BMA Consultants Municipal Study, the same Study that is used to present comparative taxation information to Council during the annual budget process. The graph shows Kitchener’s total DCs for a single detached home are around $35,000, which is well below the group average of $47,000. (Please note that the graph below plots total DCs including upper tier regional DCs where applicable, whereas the tables shown earlier in the report only include Kitchener’s portion of DCs.) Under the 25% scenario, Kitchener’s total DCs would rise to $38,000, or would increase to $41,000 under the 50% scenario. Even if the maximum rate increase scenario was chosen by Council, Kitchener’s total DCs would come in at $46,000, justbelow the group averageof $47,000. Residential DC Rates for Ontario’s Largest Cities (population > 100,000) 2 - 6 Looking to Kitchener’s local comparators, Cambridge is currently in the process of updating their DCratesand has recently published their draft DC Study. Cambridge’sproposed rate increase is very similar to Kitchener’s maximum rate increase.Waterloo’s bylaw expires on a different timeframe, so they will be updating their rates within the next year. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: Strategic Priority:Effective and Efficient City Services Strategy:5.4 – Ensure the responsible stewardship of public funds within a supportive policy framework. Strategic Action:#CS41 Development Charges Background Study (2019) FINANCIAL IMPLICATIONS: Decisions made about the development charge rates will determine the amount of funding available to build growth related infrastructure. As shown in Appendix A, at the maximum rate increase all identified growth projects could be funded. Moving to the 50% or 25% scenario reducesthe projects that can be funded.The final development charge rates approved by Council in June (and the supporting DCcapital forecast) will be used to populate the City’s 10- year capital budget in 2020. COMMUNITY ENGAGEMENT: INFORM – This report has been posted to the City’s website with the agenda in advance of the council / committee meeting. As noted in the report, a public meetingrelating to development charges is required by legislation. This meeting is currently planned to be held as part of a Committee meeting on May 13, 2019. In addition to the statutory public meeting required by the Development Charges Act, staff have already provided a brief DC update to the Waterloo Region Homebuilders Association (WRHBA) and committed to providing DC information to that group as it becomes available. Some information (e.g. Engineering project sheets) has already been provided to the WRHBA with more planned to be shared inthe coming weeks. Further, staff will beengaging a cross-section of industry stakeholders to solicittheir feedback in advance of Council passing the DC bylaw. ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services 2 - 7 Appendix – Summary of DC Funded Projects Legend: Full funding for this project is included in the 10-year DC capital forecast Reduced funding for this project is included in the 10-year DC capital forecast Further reduced funding for this project is included in the 10-year DC capital forecast No funding for this project is included in the 10-year DC capital forecast Max 50% 25% Project$ Estimate RatesRateRate Library South End Community Library$10,000,000 Materials, Furniture & Equipment$550,000 Customer Needs Survey$110,000 Technology Upgrades$2,800,000 Recovery for Central Library$6,500,000 Fire New Vehicle$900,000 Radio System Upgrade$100,000 New Technology$1,200,000 Provision for Fire Protection$5,300,000 Indoor Recreation Studies (e.g. Facilities Master Plan)$950,000 Huron Brigadoon Community Centre$2,900,000 Indoor Pool (RBJ Schlegel Park)$22,000,000 Indoor Turf (RBJ Schlegel Park)$13,000,000 Mill-Courtland Community Centre$4,300,000 Rosenberg Community Centre$6,000,000 Forest Heights Community Centre$5,200,000 Provision for Indoor Recreation$23,000,000 Outdoor Recreation Studies (e.g. Open Space Strategy)$265,000 Trails$7,750,000 Sportsfields (RBJ Schlegel Park)$9,750,000 Neighbourhood Parks & Playgrounds$9,650,000 Sportsfields$4,000,000 Citywide Parks –Annual Allocation$4,000,000 Citywide Parks –Special Rehabilitation$5,600,000 Provision for Outdoor Recreation$10,000,000 Public Works Equipment Acquisitions & Upgrades$8,250,000 Recovery for Operations Facility (KOF)$13,500,000 Provision for Additional Equipment$1,000,000 2 - 8 Max 50% 25% Project$ Estimate RatesRateRate Parking Recovery for Charles & Benton$1,000,000 Recovery for Civic District$7,000,000 Provision for Additional Parking$18,000,000 Cemetery Mount Hope (91 Moore)$2,000,000 Additional Facilities/Expansion$3,000,000 Cemeteries Strategic Plan$150,000 Outdoor Columbarium$120,000 Growth Related Studies Development Charges Studies$300,000 Growth-Related Planning Studies$4,100,000 Heritage Impact Assessments$110,000 Development Process Review$100,000 Rationale for Reductions As noted earlier in the report, to reduce the rate increase, a reduction is required to the DC capital forecast. In going from the maximum rate scenario to the 50% rate scenario the following reductions are proposed: 1.Eliminate all Provisions These provisions are in a number of the service areas and are for capital works that have not yet been specifically identified. Eliminating these projects will not directly impact any work that has already been planned or begun. 2.Reduce Recoveries The City is still recovering funds from four oversized facilities that have already been built (Central Library, Kitchener Operations Facility, Charles & Benton parking garage,and Civic District parking garage). Instead of recovering the remaining costs of these facilities in the next 10 years, the City will only recover 50% over the next 10 years. 3.Reduce Citywide Parks – Special Rehabilitation This funding is for a new program to rehabilitate two of the four citywide parks (Victoria, McLennan, Kiwanis, and Huron Natural Area) within the next 10 years. This reduction still provides funding for one of the citywide parks in the next 10 years. Citywide Parks were the lowest ranked Outdoor Recreation priority in the Leisure Facilities Masterplan. 2 - 9 In order to reduce the rate increase from 50% to 25%,additional reductions are proposed including: 1.Further Reduce Recoveries Instead of recovering 50% of the remaining costs of these facilities in the next 10 years, the City will only recover 20% over the next 10 years. 2.Eliminate/Reduce Community Centres Funding for the Forest Heights and Rosenberg community centres would be removed from the DC Studyand would not proceed in the near future. Planning funding for the Mill- Courtland community centre and a portion of the construction funding would be within the next 10 years, but the majority of the construction funding would not be included in the DC Study. These community centres were the lowest ranked Indoor Recreation priorities in the Leisure Facilities Masterplan. 3.EliminateCitywide Parks – Special Rehabilitation Instead of providing funding for one citywide park in the next 10 years, this funding is totally removed from the DC Study. 4.ReduceCitywide Parks – Annual Allocation, Sportsfields, and Neighbourhood Parks Funding for the three projects noted above would beincluded for the first 5 years of the DC Study, but would beeliminated for the last 5 years of the DC Study. This would allow work to be completedin the immediate future, but then it would have to be revisited during the next DC Study update in 2024. 2 - 10 2 - 11 2 - 12 City of Kitchener Development Charges Study City Council Information Session st , 2019 Monday, April 1 Today we will discuss... Development Charges Overview of Study Process Rate Scenarios Changes in DC Rates Council and Stakeholder Engagement Next Steps 2 - 13 What Are Development Charges? Fees imposed on development to fund Ñgrowth-relatedÒ capital costs Pays for new infrastructure and facilities to maintain service levels Principle is Ñgrowth pays for growthÒ so that financial burden is not borne by existing tax/rate payers In reality, development charges cannot fully fund growth due to statutory limitations Overview of Study Process 2 - 14 Services Included in 2019 DC Study DCs are Increasing DCs rates in many municipalities have increased over the last two years Construction cost increasing faster than indexing or base inflation Increased land values Devaluation of Canadian dollar More robust inventory analysis Comprehensive capital planning 2 - 15 Scenario 1 ÏMaximum Allowable Scenario 2 Ï50% Increase 2 - 16 Scenario 3 Ï25% Increase Impact Including Regional Rates Rates for Single/Semi Detached Dwellings Current2019 Calc. DifferenceDifference RateRate($)(%) Regional Rate (City) Jan $22,659$00% 1 2019 CityRate (Suburban $11,572$22,201$10,62992% Area) Total Rate*$34,231$44,860$10,62924% *Excluding Education DCs 2 - 17 Impact of Reducing the Rates Appendixin Staff Report details which projects would not receive fundingif a lower rate than Scenario 1 is passed Costs not covered through DC chargesare paid for by property taxes Rate Increase Comparison Source: Hemson Consulting 2 - 18 House Prices and DC Rate Increases House prices are largely influenced by a variety of market forces Not a strong correlation between DC rate changes and house prices Increasing DCs increasing house prices Decreasing DCs decreasing house prices Proposed Project Timeline Prepare Compile Calculate Prepare Capital Development historical service Funding Complete Programs ForecastlevelsEnvelopes February 25 Finalize DC Policy Stakeholder Council Draft DC Rates ReviewSession Information Session #1 April 1April 25 Prepare DC Council Release DC Background April Information Background Study Session #2Study May 13June 24 Statutory Public Passage of DC May/ June MeetingBy-law 2 - 19 2 - 20 2 - 21 2 - 22