Finance and Corporate Services

J. Lautenbach provided an overview of the 2023 Operating Budget, highlighting the 2023 budget priorities which include supporting core services, responding to growth and investments into our community. J. Lautenbach addressed inflationary pressures, which are currently impacting the 2023 budget process and noted two-year average rate for the Consumer Price Index (CPI) that was used as a benchmark when proposing the current tax rate increase.

Councillor P. Singh entered the meeting at this time.

J. Lautenbach stated the $231M operating budget helps to deliver core services including but not limited to fire protection, winter maintenance and recreational programming. J. Lautenbach stated annually the City is welcoming approximately 5,000. new residents to the City. To accommodate this growth, we need to make investments in capital infrastructure like roads, water mains, recreation facilities, active transportation networks and parks. J. Lautenbach stated the 2023 Budget includes an allocation to address these growth impacts, which are entirely funded by additional 1.89% assessment growth that the City has received, which means that property tax rates are not increasing due to the growth-related pressures that the City is facing this year

J. Lautenbach stated for the 2023 Budget the City has experienced a $1.5M savings from the electrical savings due to the LED Street Lighting conversion. J. Lautenbach indicated the project was a strategic investment decision made by a previous Council that is having a positive impact for the community, which is now available to be allocated to make additional strategic investments around Housing For All, Creating a Green City, and Wellbeing and Belonging. J. Lautenbach stated there have been several issue papers provided summarizing possible investment opportunities for additional funding, stating of the $1.5M available, if there are any additional funds unallocated, that money could be applied directly to the tax base.

J. Lautenbach indicated for the average home in Kitchener, the proposed rate increases for the 2023 budget are: property taxes: 4.8% or $56 annually; water utilities (water, sanitary & stormwater): 4.5% or $42 annually, noting the proposed budget represents a combined annual increase of $98 for the average household, based on the average assessed value of $326,000 and annual water consumption of 170m3.

In response to questions, staff agreed to review follow-up on the existing forecasted population numbers prior to final budget day.

In response to questions, R. Hagey advised that a 1% of the City's budget is equivalent to $1.4M.

4.1.b
Boards

4.1.b.a
Kitchener Public Library (KPL)

Mary Chevreau and Angela Riddell, Kitchener Public Library (KPL) were in attendance to provide an overview of the 2023 KPL budget and respond to questions from the Committee. M. Chevreau stated the KPL has maintained the base increase of 4.1% as per City guidelines + $100,000. for going fine free.

In response to questions, M. May advised there are currently two new full-time equivalent (FTE) staff proposed in the 2023 to address additional partnership opportunities with the City's Community Centres. M. May stated it has been a clear priority of Council and further direction to seek additional partnership opportunities is not required staff will reach out to the KPL to inquire about what additional opportunities may be available in the future to enhance City spaces.

Councillor M. Johnston left the meeting at this time.

4.1.b.b
Centre in the Square (CITS)

Councillor M. Johnston re-entered the meeting at this time.

Deb Daub and Joe Henning, Centre in the Square (CITS) were in attendance to provide an overview of the of the 2023 CITS and respond to questions from the Committee.

4.1.c
Recess and Reconvene

The meeting recessed at 11:54 a.m. and reconvened at 12:35 p.m. chaired by Councillor S. Davey with all members present.

4.1.d
Strategic Investment Options

R. Hagey provided an overview on the Strategic Investment options, stating seven different strategic investment opportunities have been provided for Council's consideration in the areas of Housing For All, Creating a Green City, and Wellbeing and Belonging. The Committee then considered the following Issue Papers Option A - Implementing the Housing for All Strategy; Option B - Advancing the Greening of the City’s Fleet; Option C - Paving of Trails; Option D - Free Recreational Programming & Leisure Access; Option E - Arts & Culture; and, Option F - Traffic Calming.

Issue Paper entitled Option A - Implementing the Housing for All Strategy

G. Stevenson was in attendance to respond to questions from the Committee.

Issue Paper entitled Option B - Advancing the Greening of the City's Fleet:

D. McGoldrick was in attendance and agreed to provide additional information related to the strategic investment related to Advancing the Greening of the City’s Fleet as outlined in Issue Paper Option B, that would further explain the impact of adding charging stations under the enhanced option. (e.g. what vehicles could be electrified?)

Issue Paper entitled Option C - Paving of Trails

D. McGoldrick agreed to recirculate a previous staff report related to paving of City Trails to provide additional information to clarify the recommendation outlined in Issue Paper Option C - Paving of Trails. Staff further agreed to provide additional information on whether savings could be identified if the work outlined in Issue Paper Option C - Paving of Trails could be completed by City staff rather than being awarded to an external contractor.

Councillor P. Singh left the meeting at this time.

Issue Paper entitled Option D - Free Recreational Programming & Leisure Access

Councillor P. Singh re-entered the meeting at this time.

M. May was in attendance to respond to questions from the Committee related to the strategic investment options outlined in Issue Paper entitled Option D - Free Recreational Programming & Leisure Access. In response to questions, staff agreed to provide additional information on the attendance split of youth in comparison to adults associated with proposed cost reduction to $2. for recreational swimming as outlined in Issue Paper Option D - Free Recreational Programming & Leisure Access; as well as information related to non-resident program participants specifically related to the proposed cost reduction to $2. for recreational swimming as outlined in Issue Paper Option D - Free Recreational Programming & Leisure Access.

Issue Paper entitled Option E - Arts and Culture

Councillor C. Michaud left the meeting at this time.

D. Chapman was in attendance to respond to questions from the Committee related to Issue Paper Option E - Arts & Culture. In response to questions, staff agreed to prepare an Issue Paper on increasing the number of events, leveraging sponsorship opportunities, and looking at more youth events. Examine delivery through both 1) increasing grants to grassroots groups to deliver and 2) City-run events.

Councillor C. Michaud re-entered the meeting at this time.

Issue Paper entitled Option F - Traffic Calming

B. Cronkite was in attendance to respond to questions from the Committee related to Issue Paper entitled Option F - Traffic Calming. In response to questions staff agreed to provide additional information on Issue Paper Option F – Traffic Calming to include additional information related to the costs associated with different hotspot traffic calming measures, how many could be installed each year, and what could be accomplished before needing additional staff resources, mobile radar signs, sponsorship opportunities.

Further comments were raised related to the Love My Hood neighbourhood street signs, noting that was a program that had positive impacts on traffic calming and it was suggested as an option to try to make the program available again in 2023.

Issue Paper entitled Option G - Neighbourhood Park Improvements

D. McGoldrick was in attendance to respond to questions from the Committee related to Issue Paper entitled Option G - Neighbourhood Park Improvements. At the request of Councillor S. Davey staff agreed to provide an Issue Paper related to the funding that would be required to construct a neighbourhood basketball court as an additional opportunity for neighbourhood park improvements as outlined on Issue Paper Option G - Neighbourhood Park Improvements.

4.1.e
Recess and Reconvene

The meeting recessed at 3:27 p.m. and reconvened at 3:35 p.m. chaired by Councillor S. Davey with all members present.

4.1.f
Tax Supported Operating Budget

The Committee then considered the Tax Supported Operating Budget, including the following Issue Papers - Op 02 – New Employer Contribution Funding (OMERS) and OMERS Pension and Benefits Specialist recommending the approval of a Pension & Benefits Specialist for the Human Resources Division; Op 03 - Additional Tax Supported Budget Staffing Resources to Support City Services, recommending approval of various Full Time Equivalent (FTE's) staff in various work Divisions throughout the City; Op 04 - Managing Provincial Changes in the Building Division recommending the approval of a Development Charges role in the Building Division; Op 05 - Minimizing Exposure to Risk and Liability in the Building Division recommending the approval of a training and compliance for the Building Division; Op 06 – Supporting the Capital, Regulatory and Operating Requirements of the Water Utility recommending the approval of one Utilities Water Engineer position; and, Op 07 - Maintaining Stormwater Infrastructure, to provide additional information on the 2023 Stormwater Utility budget. V. Raab, J. Lautenbach, D, McGoldrick, D. Chapman, M. May and R. Hagey were in attendance to respond to questions from the Committee.

4.1.g
Enterprise Operating Budgets

4.1.g.a
Building Enterprise Budget

The Committee had no questions related to the 2023 Building Enterprise Budget.

4.1.g.b
Golf Enterprise Budget

B. Cheyne was in attendance to respond to questions from the Committee related to the Golf Enterprise. B. Cheyne commented staff are already undertaking a review of golf enterprise and staff are currently anticipating bringing forward to Council sometime in 2023 related to the business ownership and operations.

4.1.g.c
Parking Enterprise Budget

B. Cronkite was in attendance to respond to questions from the Committee related to the Parking Enterprise.

4.1.g.d
Utilities Overview - Water Utility, Sanitary Utility and Stormwater Utility Budgets

D. McGoldrick and B. Lam were in attendance to respond to questions related to the sanitary and stormwater utilities. In response to questions, B. Lam stated it was anticipated this date that staff would be bringing forward a Water Infrastructure Program (WIP) report in June 2023.

4.1.g.e
Gas Utility

G. St. Louis and D. McGoldrick were in attendance to respond to questions from the Committee related to the Gas Utility (Kitchener Utilities). In response to questions, staff agreed to provide additional information on the existing rental water heater program, including the costs and rental rates associated with the various rental options. (e.g. gas, electric, tankless)

In response to further questions, D. McGoldrick and D. Chapman advised staff have already started considering a long term business strategy for Kitchener Utilities recognizing the need to transition from natural gas to a more sustainable resource and how it will impact the City's utility division for future operation. D. McGoldrick indicated work has been undertaken on developing a workplan for this broader work, noting staff have not yet determined a project timeline to date, noting Council will be consulted early in that project as required.

4.1.h
Resolution

In response to questions about hybrid meetings for Community Engagement meetings, D. Chapman indicated staff would be willing to have further discussions related to request, stating it was likely outside of the scope of the budget discussion this date.

Questions were raised regarding Climate Justice initiatives and the impacts of warmer weather on vulnerable populations, J. Readman stated staff would be willing to have an offline conversation on the request to better understand the nature of the request prior to the next budget meeting to confirm if an Issue Paper would be required.

Mayor B. Vrbanovic left the meeting at this time.

Councillor P. Singh noted a request for additional information on the possibility of deploying additional speed radar signs within the City. Staff agreed to include that information in the Issue Paper previously requested for additional traffic calming information.

On motion byCouncillor P. Singh
it was resolved:

“That staff be directed to report and/or take appropriate action on the following matters arising from the January 16, 2023 Special Finance and Corporate Services Committee meeting relative to the 2023 Operating budget, as outlined below:
1. 1. Planning Division - Population: Provide additional information on the City’s population forecast, including confirmation of the city’s current population in comparison to the information provided on slide 19 of the budget presentation.
  2. Fleet Division - Greening, Electric Vehicle (EV) charging stations: Provide additional information on Issue Paper entitled Option B - Advancing the Greening of the City’s Fleet that would further explain the impact of adding charging stations under the enhanced option. (e.g. what vehicles could be electrified?)
  3. Parks & Cemeteries Division - Paving of Trails - Recirculate a previous staff report related to paving of City Trails to provide additional information to clarify Issue Paper Option C - Paving of Trails.
  4. Parks & Cemeteries Division - Paving of Trails - Provide additional information on whether the work identified in Issue Paper Option C - Paving of Trails could be completed by City staff rather than being awarded to an external contractor.
  5. Sport Division - Recreational Swimming - Provide additional information on the attendance split of youth in comparison to adults associated with proposed cost reduction to $2. for recreational swimming as outlined in Issue Paper Option D - Free Recreational Programming & Leisure Access.
  6. Sport Division - Recreational Swimming - Provide additional information related to non-resident program participants specifically related to the proposed cost reduction to $2. for recreational swimming as outlined in Issue Paper Option D - Free Recreational Programming & Leisure Access.
  7. Parks & Cemeteries Division - Park Improvements - Provide additional information on the amount of money it would cost to construct a neighbourhood basketball court as an additional opportunity for neighbourhood park improvements as outlined on Issue Paper Option G - Neighbourhood Park Improvements.
  8. Economic Development Division - Special Events - Prepare an Issue Paper on increasing the number of events, leveraging sponsorship opportunities, and looking at more youth events. Examine delivery through both 1) increasing grants to grassroots groups to deliver and 2) City-run events.
  9. Transportation Services Division - Traffic Calming - Provide additional information on Issue Paper Option F – Traffic Calming to include additional information related to the costs associated with different hotspot traffic calming measures, how many could be installed each year, and what could be accomplished before needing additional staff resources, mobile radar signs, sponsorship opportunities.
  10. Financial Planning & Reporting - Full Time Equivalent (FTE)s Staffing - Provide additional information on the combined cost of all the proposed Full Time Equivalent (FTE)s being requested through the 2023 budget.
  11. Kitchener Utilities - Rental Water Heater Program - Provide additional information on the existing rental water heater program, including the costs and rental rates associated with the various rental options. (e.g. gas, electric, tankless)"
Carried

5.
Adjournment

On motion, this meeting adjourned at 4:50 p.m.

Dianna Saunderson
Manager of Council/Committee Services & Deputy Clerk

No Item Selected

1.Commencement

2.Disclosure of Pecuniary Interest and the General Nature Thereof

3.Consent Items

4.Discussion Items

4.12023 Operating Budget, FIN-2023-035

4.1.aGeneral Overview by the Chief Financial Officer

4.1.bBoards

4.1.b.aKitchener Public Library (KPL)

4.1.b.bCentre in the Square (CITS)

4.1.cRecess and Reconvene

4.1.dStrategic Investment Options

4.1.eRecess and Reconvene

4.1.fTax Supported Operating Budget

4.1.gEnterprise Operating Budgets

4.1.g.aBuilding Enterprise Budget

4.1.g.bGolf Enterprise Budget

4.1.g.cParking Enterprise Budget

4.1.g.dUtilities Overview - Water Utility, Sanitary Utility and Stormwater Utility Budgets

4.1.g.eGas Utility

4.1.hResolution

5.Adjournment

Details

History

Vote Result

1.
Commencement

2.
Disclosure of Pecuniary Interest and the General Nature Thereof

3.
Consent Items

4.
Discussion Items

4.1
2023 Operating Budget, FIN-2023-035

4.1.a
General Overview by the Chief Financial Officer