Finance and Corporate Services

Committee Minutes

Thursday, February 02, 2023 at 9:30 A.m. - 3:30 P.m.

Council Chambers - Hybrid

City of Kitchener

200 King Street W, Kitchener, ON N2G 4G7

Present:

• Mayor B. Vrbanovic
• Councillor S. Davey
• Councillor D. Schnider
• Councillor J. Deneault
• Councillor C. Michaud
• Councillor A. Owodunni
• Councillor P. Singh
• Councillor B. Ioannidis
• Councillor M. Johnston
• Councillor D. Chapman
• Councillor A. Clancy

Staff:

• D. Chapman, Chief Administrative Officer
• M. May, General Manager, Community Services and Deputy Chief Administrator
• V. Raab, General Manager, Corporate Services
• J. Readman, General Manager, Development Services
• J. Lautenbach, Chief Financial Officer, Financial Services
• D. McGoldrick, General Manager, Infrastructure Services
• L. MacDonald, City Solicitor
• B. Rowland, Director, Corporate Communications and Marketing
• B. Cheyne, Director, Sport
• R. Hagey, Director, Financial Planning
• Greg St. Louis, Director, Utilities
• B. Cronkite, Director, Transportation Services
• B. Lam, Director, Sanitary and Stormwater Utility
• Mike Seiling
• A. Fusco, Director Legislated Services / City Clerk
• D. Andrade, Manager, Budgets
• D. Saunderson, Deputy Clerk
• M. Blake, Committee Administrator

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1.

Commencement

The Finance and Corporate Services Committee held a meeting this date commencing at 9:35 a.m., Chaired by Councillor S. Davey with all members participating in person and Councillor P. Singh participating remotely.

Members of Committee provided opening remarks on the proposed 2023 budget.

Councillor B. Ioannidis left the meeting at this time.

Councillor P. Singh left the meeting at this time.

2.

Disclosure of Pecuniary Interest and the General Nature Thereof

Nil

3.

Discussion Items

3.1

2023 Final Budget Day, FIN-2023-061

The Committee considered Financial Services Department report FIN-2023-061, dated January 24, 2023, related to the 2023 Budget, which is primarily intended to provide updates on the Operating and Capital Budget presentations as well as providing specific information required by the Municipal Act. The Committee was also in receipt of a written submission from the Active Trails and Cycling Advisory Committee.

Councillor P. Singh joined the meeting in person at this time.

3.1.a

Overview

J. Lautenbach, provided opening remarks, noting the overall Operating Budget includes a proposed tax rate increase of 4.8%, which is below the rate of inflation. The proposed tax levy increase represents a $56/year annual impact to the taxpayer. J. Lautenbach highlighted the 2023 budget priorities, public survey results on the investment options and noted the City's proposed tax levy increase is one of the lowest of all the municipalities within the Region.

Councillor A. Owodunni left the meeting at this time. 

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

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

Councillor A. Owodunni re-entered the meeting at this time.

3.1.b

Boards

3.1.b.a

Kitchener Public Library

M. Chevreau and A. Riddell, Kitchener Public Library (KPL), were in attendance and addressed questions from the Committee. M. Chevreau provided an update on the West End Library construction project.

• On motion by Councillor M. Johnston

  it was resolved:

  "That operating funding for Kitchener Public Library (KPL) in the amount of $12,132,850 be approved."

  Carried

3.1.b.b

Centre in the Square

J. Henning and S. Cook, Centre in the Square (CITS), were in attendance to respond to questions from the Committee.

• On motion by Mayor B. Vrbanovic

  it was resolved:

  "That operating funding for Centre in the Square (CITS) in the amount of $2,011,601 be approved; and further,

  That for this term of Council, any year-end operating surplus be retained by CITS and be restricted to help fund its capital projects, and any yearend operating deficit be split 50/50 between CITS and the City."

  Carried

3.1.c

Investment Options

Councillor B. Ioannidis returned to the meeting at this time.

R. Hagey advised of the final budget day process and further noted that any resolution arising from this meeting would be forwarded to a Special Council meeting later this date.

R. Hagey addressed the strategic investment options noting members of Council were requested to individually rank the 7 investment options from highest to lowest priority and to indicate if they preferred the base or enhanced option where applicable. R. Hagey indicated budget slide Appendix F 17 includes a summary of the ranked priority options including a proposed average of funding as identified through the ranking exercise.

The Chair noted that the based on the proposed ranking, it was preferred to consider and allocate funding to the strategic investment items in the order of priority, noting each priority item would be voted on prior to considering the next item.

3.1.c.a

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

The Committee considered Issue Paper entitled "Option A - Implementing the Housing for All Strategy". J. Readman and J. Lautenbach were in attendance to respond to questions from the Committee.

• On motion by Councillor M. Johnston

  it was resolved:

  "That Issue Paper entitled "Option A - Implementing the Housing for All Strategy be provided a one-time funding allocation of $100,000. out of the Affordable Housing Reserve."

  Carried

3.1.c.b

Issue Paper entitled "Option F - Traffic Calming - Updated"

The Committee considered Issue Paper entitled "Option F - Traffic Calming", which included the base information provided at the January 16, 2023 Finance and Corporate Services Committee meeting, as well as additional supplementary information regarding hotspot measures and staffing. B. Cronkite was in attendance and responded to questions from the Committee.

Councillor C. Michaud left the meeting at this time. 

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

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

A motion was brought forward by Councillor P. Singh to allocate $200,000. of the strategic investment funding to the recommendations outlined in Issue Paper Option F - Traffic Calming.

Councillor J. Deneault brought forward an amendment to reduce the funding allocation from $200,000 to $160,000, which was voted on and was LOST.

Councillor D. Schnider left the meeting and re-entered the meeting at this time.

• On motion by Councillor P. Singh

  it was resolved:

  "That $200,000. of funding be allocated from the strategic investment funding to the options outlined in Issue Paper Option F - Traffic Calming."

  Carried

3.1.c.c

Issue Paper entitled "Option G - Neighbourhood Park Improvements - Updated"

The Committee considered Issue Paper entitled "Option G - Neighbourhood Park Improvements - Updated", which included the base information provided at the January 16, 2023 Finance and Corporate Services Committee meeting, as well as supplementary information regarding parks and basketball courts. In response to questions from Committee, D. McGoldrick addressed the status of the Places and Spaces Strategy, funding for basketball courts specifically, timing of park equipment replacements, highlighted the need for any equipment being replaced to meet current Accessibility for Ontarians Disabilities Act (AODA) standards, sponsorship of park structures and park accessory rentals.

• On motion by Councillor D. Schnider

  it was resolved that:

  "That Issue Paper entitled Option G - Neighbourhood Park Improvements be allocated $400,000 to be funded from the strategic investment funding."

  Carried

3.1.c.d

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

The Committee considered Issue Paper entitled "Option D - Free Recreational Programming & Leisure Access". In response to questions from Committee, M. May addressed the Environics survey analysis regarding the importance in the community of recreational programming and leisure access, budget allocation of individual community centres and neighbourhood association newsletters, pool sponsorships, the standard approach across the area municipalities of administering the leisure access program, and the income level to qualify for subsidized programs. 

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

Councillor B. Ioannidis left the meeting and re-entered the meeting at this time.

Councillor A. Clancy brought forward a motion to allocate $400,000 to Issue Paper entitled "Option D - Free Recreational Programming & Leisure Access" to be funded from the strategic investment funding.

Councillor A. Owodunni left the meeting and re-entered the meeting at this time.

Councillor P. Singh brought forward an amendment to reduce the proposed funding for Free Recreational Programming & Leisure Access from $400,000 to $240,000 specifically that the funding should be applied to the following programming options #1, 3 and 5 as outlined in the issue paper.

Councillor J. Deneault moved a further amendment to Councillor Singh's amendment to increase the funding for Free Recreational Programming & Leisure Access from $240,000 to $310,000 specifically that the funding should be applied to the following programming options #1, 3, 4, 5 and 6 as outlined in the issue paper.

Councillor Deneault's amendment to the amendment was then voted on and LOST on a recorded vote with Councillors J. Deneault, D. Schnider, A. Owodunni, A. Clancy voting in favour; and, Mayor B. Vrbanovic, Councillors S. Davey, C. Michaud, P. Singh, B. Ioannidis, M. Johnston, D. Chapman voting in opposition.

Mayor B. Vrbanovic brought forward an amendment to Councillor Singh's amendment to increase the proposed funding for Free Recreational Programming & Leisure Access from $240,000 to $285,000 specifically to fund the following programming options #1, 3, 4 and 5 as outlined in the issue paper.

The following motion was then voted on, on a recorded vote.

• On motion by Mayor B. Vrbanovic

  it was resolved:

  "That Issue Paper entitled Option D - Free Recreational Programming & Leisure Access be allocated $285,000. specifically to fund options #1, 3, 4 and 5 as outlined in the issue paper from the strategic investment funding."

  In Favour (8)	Mayor B. Vrbanovic, Councillor D. Schnider, Councillor C. Michaud, Councillor P. Singh, Councillor B. Ioannidis, Councillor A. Owodunni, Councillor J. Deneault, and Councillor A. Clancy
  Contra (3)	Councillor S. Davey, Councillor M. Johnston, and Councillor D. Chapman

  Carried, as amended, on a recorded vote (8 to 3)

3.1.c.e

Issue Paper entitled "Option C - Annual Paving of Trails"

The Committee considered Issue Paper entitled "Option C - Annual Paving of Trails". D. McGoldrick was in attendance to respond to questions from the Committee. 

Councillor P. Singh brought forward a motion to allocate $600,000. of strategic investment funding to Issue Paper entitled Option C - Annual Paving of Trails.

Councillor D. Chapman left the meeting at this time.

Councillor A. Clancy brought forward an amendment to Councillor Singh's motion to reduce the funding for Issue Paper entitled "Option C - Annual Paving of Trails" from $600,000 with $565,000.

Following further dialogue related to the two remaining strategic investment options that were currently not allocated funding, Councillor Clancy expressed support for receiving additional information in 2023 related to the City's overall sustainability goals and additional opportunities for environmental stewardship, specifically referencing the recommendations outlined in "Option B - Advancing the Greening of the City's Fleet", and agreed to withdraw the proposed amendment at this time, noting the reason for the proposed amendment was to leave some strategic investment funding available for that initiative.  

• On motion by Councillor P. Singh

  it was resolved that:

  "That Issue Paper Option C - Annual Paving of Trails be allocated $600,000. of the proposed strategic investment funding."

  Carried

3.1.c.f

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

The Committee considered Issue Paper entitled "Option B - Advancing the Greening of the City's Fleet", which included the base information provided at January 16, 2023 Finance and Corporate Services Committee meeting, as well as supplementary information regarding fleet greening and charging stations. In response to a question from Committee, D. Chapman clarified the intent of the investment options to report back on programs, that may not be funded, throughout the year. D. McGoldrick addressed the funding and maintenance model for the fleet system highlighting the user based funding options, the ability to offset the cost of the electric charging stations and the internal chargebacks for internal combustion (IC) vehicles and electric vehicles (EV). J. Lautenbach highlighted the equipment replacement reserve and the limited funding available.

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

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

3.1.d

Recess and Reconvene

The meeting then recessed at 1:00 p.m. and reconvened at 2:00 p.m. chaired by Councillor S. Davey with all members present except Councillor C. Michaud and Councillor D. Chapman.

3.1.d.a

Issue Paper entitled "Option E - Arts & Culture - Updated"

The Committee considered Issue Paper entitled "Option E - Arts & Culture - Updated", which included the base information provided at January 16, 2023 Finance and Corporate Services Committee meeting, as well as supplementary information for increasing the number of special events. 

Councillor C. Michaud entered the meeting at this time. 

In response to questions from the Committee, J. Readman noted a $100,000 one-time funding allocation for events from the Economic Development reserve would be possible. Staff clarified arts and culture based funding (museum, symphony, art gallery) is a significant portion of funding, and are often re-occurring grants organizations apply for. 

Councillor D. Chapman entered the meeting at this time.

• On motion by Councillor B. Ioannidis

  it was resolved that:

  "That Issue Paper Option E - Arts and Culture be allocated $15,000. of ongoing funding through the strategic investment funding and a one-time funding allocation of $100,000. primarily for events from the Economic Development Reserve Fund."

  Carried

3.1.e

Capital Budget

The Committee considered the Capital Budget as presented at the Finance and Corporate Services Committee meeting on January 23, 2023, also identified as Appendix B in the 2023 Budget Materials. In addition, Council was in receipt of follow-up Issue Papers entitled BD 02: RISE & Love My Hood grants; BD 03: Grand River Park; BD 04: Garbage collection in parks/trails; BD 05: Urban Forestry; BD 06: Cycling & Trails; BD 07: Council home technology; and, BD 08: Internal borrowing/debt included in Appendix F of the Final Budget agenda.  

Councillor Singh left the meeting at this time.

R. Hagey provided opening remarks related to the Capital Budget. 

Councillor P. Singh returned to the meeting at this time.

Councillor S. Davey opened the discussion on the balance of the Capital Issue Papers, noting if any member of Committee had questions on one of the Issue Papers, the questions on that item would be addressed and considered prior to considering questions on the additional issue papers.

3.1.e.a

Follow-up Issue Papers

3.1.e.a.a

Issue Paper entitled "BD 02 - RISE and Love My Hood Grants"

The Committee considered Issue Paper entitled "BD 02 - RISE and Love My Hood Grants" in response to a request during the Finance and Corporate Services Committee meeting on January 23, 2023 for staff to provide additional information related to increasing to the RISE Fund and LoveMyHood Grant by either a combined i) $50,000; or ii) $100,000. additional funding. In response to questions from the Committee, M. May stated the issue paper indicates there is a history of demand for the RISE and Love My Hood Grants, and recommended if Council has a desire to see more money allocated to the grants, that they do so. 

• On motion by Councillor D. Chapman

  it was resolved that:

  "That Issue Paper BD 02 - RISE and Love My Hood Grants be allocated (Option 2) an additional $50k/year for 2023 & 2024."

  Carried

3.1.e.a.b

Issue Paper entitled "BD 03 - Grand River Park" 

The Committee considered Issue Paper entitled "BD 03 - Grand River Park" in response to a request during the Finance and Corporate Services Committee meeting on January 23, 2023 for staff to provide information identifying the resource needs to meaningfully advance a Grand River Park within the current term of Council.

• On motion by Mayor B. Vrbanovic

  it was resolved:

  "That an additional full-time permanent equivalent position (FTE), be approved as outlined in BD 03 - Grand River Park, to address the ongoing development of park facilities and that the funding for the position be allocated from the Parks capital program."

  Carried

3.1.e.a.c

Issue Paper entitled "BD 07 - Council Home Technology"

The Committee considered Issue Paper entitled "BD 07 - Council Home Technology" in response to a request during the Finance and Corporate Services Committee meeting on January 23, 2023 for staff to provide information on the Council technology and home office budgets, including a history of past increases. 

• On motion by Councillor B. Ioannidis

  it was resolved:

  "That staff be directed to review policies on the funding for council technology and home office expenses, conferences, training, and community engagement; and,

  That the funding allocations in the existing council budget envelopes be consolidated into a single budget envelope; and further,

  That any recommendations for adjustments to this budget be brought back to Council prior to the 2024 budget process."

  Carried

3.1.e.a.d

Issue Paper entitled "BD 05 - Urban Forestry - Updated"

The Committee considered Issue Paper entitled "BD 05 - Urban Forestry - Updated" in response to a request during the Finance and Corporate Services Committee meeting on January 23, 2023 for staff to provide information regarding the impact of a $1,000,000 reduction to the urban forestry program ($100,000 annually) to the 2022 Council approved Tree Canopy Target and how this would influence deliverables of the overall
Forestry program. D. McGoldrick was in attendance to respond to questions from the Committee.

Councillor M. Johnston left and returned to the meeting at this time. 

3.1.e.a.e

Issue Paper entitled "BD 06 – Reallocation of Cycling Infrastructure Funding to Trails"

The Committee considered Issue Paper entitled "BD 06 – Reallocation of Cycling Infrastructure Funding to Trails" in response to a request during the Finance and Corporate Services Committee meeting on January 23, 2023 for staff to provide information related to the possibility and impact of reallocating $300,000 from cycling infrastructure funding annually to the paving of off-road “commuter” trails. R. Hagey was in attendance to respond to questions from the Committee.

3.1.e.a.f

Issue Paper entitled "BD 04 - Enhanced Garbage Collection in Parks and Trails"

The Committee considered Issue Paper entitled "BD 04 - Enhanced Garbage Collection in Parks and Trails" in response to a request during the Finance and Corporate Services Committee meeting on January 23, 2023 for staff to provide information related to the expansion of current programming to allow enhanced garbage collection in parks and trails. D. McGoldrick and R. Lusk were in attendance to respond to questions from the Committee. D. McGoldrick noted the Garbage collection strategy would be activated in 2023, including doubling staff capacity and frequency. J. Lautenbach clarified there is currently no allocation in the current operating or capital budget for this matter, and any funding allotment would be an addition outside of the outlined budget. D. McGoldrick clarified the resources required would be full time resource, and would require a commitment to allocate funding in the next budget. 

Councillor A. Owodunni and Councillor J. Deneault left the meeting at this time. 

Councillor Deneault returned to the meeting at this time. 

In response to questions from the Committee, staff noted in the past three years garbage collection staff have noted a higher demand for additional funds to account for the increased use of trails, regional changes and seasonal changes, resulting in garbage in parks/trails. 

Councillor A. Owodunni returned to the meeting at this time. 

• On motion by Councillor B. Ioannidis

  it be resolved:

  "That $50,000. be allocated from the tax supported operating budget to fund 2 additional full time equivalent staff associated operating costs phased in at end of 2023, as outlined in Issue Paper BD 04 - Enhanced Garbage Collection in Parks and Trails"; and further, 

  That staff be directed to seek funding options within the existing capital balances to fund a new garbage compactor truck to address increased enhanced garbage collection in parks and trails."

  Carried

3.1.f

Disclosure of Pecuniary Interest and the General Nature Thereof

Councillor P. Singh declared a conflict regarding Connaught St, Mill St, 620304006 Mill/Courtland community centre, due to family members owning property in the vicinity of the subject projects and accordingly did not participate in any voting or discussion with these matters.

3.1.g

2023 Capital Budget

The capital projects that were subject to the declared pecuniary interest were then voted on and were Carried. 

• On motion by Councillor P. Singh

  it was resolved:

  "That the Capital Budget & Forecast (2023-2032) be approved, with expenditures for all years totalling $1,613,535,000." 

  Carried

3.1.h

Enterprise Operating Budgets

Committee then considered the 2023 Enterprise Budgets for: Building, Golf, Parking, Natural Gas, Water, Sanitary and Stormwater Utilities. 

• On motion by Councillor P. Singh

  it was resolved:

  "That the following budgets for municipal enterprises be approved: 

  	Revenue	Expense	Transfer to/(from) Reserve
  Building Enterprise	$ 3,381,720	$ 6,784,056	$ (3,402,336)
  Golf Enterprise	$ 2,517,463	$ 3,004,567	$ (487,104)
  Parking Enterprise	$ 5,402,245	$ 6,933,439	$   (1,531,194)
  Gasworks Utility	$ 102,785,810	$ 103,044,210	$ (258,400)
  Water Utility	$ 51,053,977	$ 51,903,942	$ (849,965)
  Sanitary Utility	$ 63,872,278	$ 67,324,760	$ (3,452,482)
  Storm Water Utility	$ 26,402,226	$ 27,607,737	$   (1,205,511)
  	$  255,415,719	$ 266,602,711	$ (11,186,992)"

   

  Carried

3.1.i

Tax Supported Operating Budget

• On motion by Councillor A. Clancy

  it was resolved:

  "That the general levy of $146,507,227 which results in approximately a 4.84% tax increase, excluding tax policy changes, be approved including assessment growth of 1.89%."

  Carried

3.1.j

Resolutions

• On motion by Councillor A. Clancy

  it was resolved:

  "That the balance of the recommendations related to the 2023 Capital and Operating Budgets be approved, as outlined in the draft resolution sheet circulated to members of the Council this date."

  Carried

4.

Adjournment

On motion, this meeting adjourned at 3:42 p.m.

 

Dianna Saunderson                                                                                                          Mariah Blake
Manager of Council/Committee Services & Deputy Clerk                                                Committee Administrator

 

Amanda Fusco

Director, Legislated Services/City Clerk