Agenda Contents

Minutes
Budget Steering Committee



    Meeting Type:Budget
    Meeting ID:2018-03
    Meeting Date:Thu January 25, 2018 09:00 AM
    Location:Council Chambers, 360 Pitt Street, Cornwall, Ontario
    Chair:CN=Denis Carr/OU=CITYHALL/O=CityCornwall
    Prepared By:Cindy Delgreco, Financial & Risk Management Coordinator


      


    CALL TO ORDER
    Chair, Councillor Carr called the meeting to order at 9:20 am. A quorum of was present.


    ATTENDANCE
    Council Committee Members:
    Claude McIntosh, Councillor
    Elaine MacDonald, Councillor
    Leslie O'Shaughnessy, Mayor
    Maurice Dupelle, Councillor
    Bernadette Clement, Councillor
    Mark A. MacDonald, Councillor

    André Rivette, Councillor
    Carilyne Hébert, Councillor
    Justin Towndale, Councillor

    David Murphy, Councillor
    Denis Carr, Councillor

    Administration:
    Maureen Adams, Chief Administrative Officer
    Tracey Bailey, General Manager, Financial Services
    Paul Scrimshaw, Accounting Manager/Deputy Treasurer
    John St Marseille, General Manager, Infrastructure and Municipal Works
    Mark Boileau, General Manager, Economic Development, Planning, Parks and Recreation

    Pierre Voisine, Fire Chief
    Geoff Clarke, General Manager, Corporate Services
    Stacey Ferguson, Administrator, Social & Housing Services
    Bill de Wit, Division Manager, Municipal Works
    Michael Fawthrop, Division Manager, Infrastructure Planning
    Len Tapp, Division Manager, Transit
    Jamie Fawthrop, Division Manager, Parks and Recreation

    Carl Goodwin, Division Manager, Environmental Services
    Danielle Watson, Supervisor of Waste Management
    Cindy Delgreco, Financial & Risk Management Coordinator


    ADOPTION OF THE AGENDA - ADDITIONS OR DELETIONS

    As there were no additions or deletions, the Agenda was approved as presented.

    Moved By: Bernadette Clement, Councillor
    Seconded By: André Rivette, Councillor

    Motion: Carried


    DISCLOSURE OF INTEREST

    No disclosure of interest was identified.


    ADOPTION OF THE MINUTES

    1 January 19, 2018 Budget Steering Committee (BSC) Meeting
    Click for detail --> January 19, 2018 Budget Steering Committee (BSC) Meeting

    Moved By: Councillor Rivette
    Seconded By: Mayor O'Shaugnessy

    Motion: Carried


    CONSENT

    Councillor Clement requested Consent Item 4 Seaway Valley Food Festival be moved to Communications for discussion.

    Councillor Rivette requested Consent Item 3 Water and Wastewater - Capital Budget and Backlog be moved to Communications for discussion.

    Motion to set a target for a 2018 Budget increase of 4% and Council to work with Administration to meet this target.

    Moved By: Councillor Rivette
    Seconded By: Councillor M. MacDonald

    Discussion took place around the current budget presented at 7.62% increase on the average Residential home and setting a target of a 4% increase for Council and Administration to work together to achieve.

    A recorded vote on this matter resulted as follows:

    Votes For = 7 Votes Against = 4

    Councillor McIntosh Councillor E. MacDonald
    Councillor Dupelle Mayor O’Shaughnessy
    Councillor M. MacDonald Councillor Clement
    Councillor Rivette Councillor Hebert
    Councillor Towndale
    Councillor Murphy
    Councillor Carr

    Motion: Carried
    Motion to provide a Report detailing the dollar value/average residential home for the term of the Financial Plan was requested.

    Moved By: Mayor O'Shaugnessy
    Seconded By: Councillor Rivette
    Motion: Carried

    Motion to provide Historical Tax Levy information.

    Moved By: Councillor E. MacDonald
    Seconded By: Councillor Hebert
    Motion: Carried

    A discussion took place regarding sources of funds used outside of tax resources that the City has used in the past to reduce our reliance on the tax base at budget time.

    Motion to provide other sources of funding that the City has utilized to reduce the tax requirement.

    Moved By: Councillor E. MacDonald
    Seconded By: Councillor Hebert
    Motion: Carried

    A report was requested by Councillor Murphy outlining the Assessment and Property Tax information for the Commercial Class. Administration to report back.
    Councillor M. MacDonald asked for clarification in relation to the point in time that City Council would be in a restricted position, also known as 'Lame Duck'.

    Manon Levesque, City Clerk, spoke to the recent changes to the Municipal Elections Act as it relates to restrictions to act, known as "lame duck periods". The nomination period for the 2018 municipal election is from May 1, 2018, to July 27, 2018.

    Lame Duck Period
    As noted above, the determination of whether Council is in a lame duck position occurs twice during the municipal election process.

    a) Between July 27, 2018 to October 22, 2018 - The determination shall be based on the nominations to the new Council that have been certified by the Clerk on July 27, 2018. If less than 8 of the 11 (75%) existing Members are not running for Council, the restrictions set out in the Act will apply.

    b) Between October 22, 2018 to November 30, 2018- If the election results declared by the Clerk shortly after the election result is less than 75% (less than 8 of the 11) of the Council Members returning to Council, the restrictions set out in the Act will apply.

    Assessment Breakdown

    At the request of the committee report 2018-03-BSC Assessment Breakdown was brought forward for discussion.
    • Ms. Bailey provided an explanation of the information shown in the report.
    • Councillor Murphy requested information be provided that would show what a resident in a particular group would be paying in 2018 instead of showing the $ change and % change. A slide (copied and handed out) illustrated the information that Councillor Murphy requested. Councillor Rivette questioned if these numbers on the report are based on the 7.62% 2018 budget increase. Ms. Bailey responded, yes numbers are based on current budget at 7.62%.
    • A discussion took place around losing Commercial assessment in 2017 and the shift to residential. This being the 2nd year of the four-year phase-in, 2018 is not seeing this same shift.

    PRESENTATIONS

    Municipal Works (MW)

    John St. Marseille, General Manager-Infrastructure Municipal Works and Bill de Wit, Division Manager-Municipal Works presented the Municipal Works 2018 Budget submission by providing an overview of the department.

    Municipal Works division is responsible for the management and direction of various MW sections; Administration, Public Property and Garage.

    Mr. de Wit summarized that the overall operating and capital budget increase is at 2.76%. He detailed the following area’s:
      MW Administration
      • operations reflect basically a flat operating and capital over 2017 (0.06%).
      • Salaries and Benefits has a net decrease attributed to the reallocation of WSIB costs.
      • The increase in Financial and Transfers reflect technological upgrades to the main floor boardroom for open houses and other public engagement sessions.
      • Councillor Carr asked if it could be an option to have 1 large boardroom instead of the small boardroom upstairs and one downstairs? Mr. St. Marseille addressed this question noting the frequency of concurrent meetings and the need for the redundancy in meeting space.
      Public Property
      • Mr. de Wit noted that Public Property in the MW Division is responsible to maintain all Municipal Buildings (43) excluding the WWTP, WPP, Complex and Benson Centre.
      • Salaries and Benefits reflects an increase with the transfer of a part time position from the MW Garage to Public Property for the implementation of the PM Xpert Building Asset Management System.
      • PM Xpert introduced in 2017 putting all the City Fleet into the data base for better management. In 2018, we are looking toinclude all building data to be able to better manage the Building Assets.
      • Purchase of Goods includes additional funds to address the rising cost of utilities.
      • Financial and Transfers has increased as a result of greater contribution to reserves due to a lower requirement for tax based funding for capital.
      • Increase in revenue is related to lease agreements with Social Support Services and Paramedic Services.
      • A discussion took place relating to the replacement of the HVAC system at the Justice Building and the Complex/Aquatic Centre as it relates to the CDH leasing agreements.

      Garage
      • Salaries and Benefits reflects a decrease with the transfer of a part time hours from the MW Garage to Public Property for the implementation of the PM Xpert Building Asset Management System.
      • Purchase of Goods has increased due to an increase in the price of fuel.
      • Services and Rents has an overall decrease primarily due to the reduction of leased vehicles.
      • Financial and Transfers has increased due to a contribution to reserves related to the purchase of 13 previously leased vans.

      Municipal Works Road

      Roads Summer Control
      • Salaries and Benefits have increased by 3.54% due to Bill 148 and the addition of one summer student that will conduct sidewalk assessments, trip-edge identification as well as culvert inventory and assessment.
      • Purchase of Goods increase is primarily relating to the purchase of water for street cleaning.
      • Services and Rents decreased relating to a reduction in costs associated with the rental of specialized outside equipment.
      Roads Winter Control
      • Purchase of Goods increase is attributed to the increased consumption of Calcium Chloride as a road salt catalyst.
      • Services and Rents increases reflect the cost associated with hired trucks and other outside equipment for snow removal operators.
      Municipal Works Capital
      • Mr. de Wit outlined the proposed Capital Projects to be undertaken which included; Fleet Renewal Program ($795,000), MW Yard Redevelopment ($1,430,000), Justice Building HVAC ($530,000), Justice Building Interior repairs ($30,000), Arc Flash risk analysis ($30,000), and Renovations at Various buildings ($160,000). The Woodhouse Museum Repairs of $63,000 have been removed, the elevator can be repaired for $8,000 and does not require to be replaced.
      • Municipal Works Yard Redevelopment, based on the EA, had a 10 year plan. 2018 Capital projects relating to the redevelopment include: Salt Management Facility, re-routing of utilities and purchase of a generator that would have the capacity to run the complete yard (currently 3 generators of which 2 are at end of life).

      Mayor O'Shaugnessy requested a report on the work plan and time line on the MW Yard Redevelopment and how it is incorporated into the Long Term Plan. Administration to report back.
      • Councillor Hebert asked what is the disposal process for the 8 vehicles being replaced? Mr. de Wit detailed the auction process the City currently uses through Gov Deals.
      • Councillor Rivette asked for an update on the Locomotive. Mr. de Wit provided an update indicating an electronic survey will be provided to the public for input. Once the survey is completed it will be brought to Council for recommendation.
      • Councillor Rivette asked for the status of the Noise Reduction fence around the MW Yard. Mr. de Wit responded that the fence will be undertaken in 2018.


      Councillor Rivette requested a listing of Plans included in the 2017 and the 2018 budget submission. Administration to report back.

      John St. Marseille, General Manager-Infrastructure Municipal Works and Michael Fawthrop, Division Manager-Infrastructure Planning presented the Municipal Works Traffic Control Budget submission.

      Traffic Control Maintenance
      • Mr. Fawthrop provided an overview of the Transportation sections responsibilities which includes, street lighting, signage, school crossing guards, pavement markings and the operation of municipal parking lots, traffic and parking by-laws.
      • Salaries and Benefits have increased by 8.39% primarily due to an Bill 148 which includes a minimum wage increase (related to School Crossing Guards and summer students). Other increases are related to incremental and contractual obligations.
      • Services and Rents reflects an increase in pavement markings in order to address line painting requirements for bike lanes, new roads and existing roads. The increase is due to not increasing the budget in previous years as roads were added to the City's network.
      Councillor Towndale asked why the Municipality pays for School Crossing Guards. Administration to report back.

      Mr. Fawthrop spoke to the Capital initiatives including; upgrades to 2 traffic signals in conjunction with road paving on Water Street and pole replacements along Vincent Massey corridor from Power Dam to Thirteenth.

      It was noted that there are 70 signalized intersection within the City limits.

      Councillor McIntosh requested information regarding outside pressure on the City's budget as it relates to Bill 148, fuel and utility costs. Administration to report back.

      Transit

      John St. Marseille, General Manager-Infrastructure Municipal Works and Len Tapp, Division Manager Transit Services presented the 2018 Transit Budget.
      • Mr. Tapp, provided a brief overview on the City’s Transit budget noting fuel increases, first steps in implementing Transit Master Plan and the ongoing Fleet Replacement Program included in the 2018 budget.
      • Expected ridership for 2018 is expected to be above 820,000 passenger trips which will be an increase from 2017 and the Handi-transit system remaining consistent at 37,000 trips per persons with disabilities.
      • Provincial Gas Tax funding is expected to increase by approximately $28,000 to $630,000 in 2018.
      • The 2018 Budget also includes the continuation of a number of promotional days such as Clean Air Day, Read-to-ride, National Child Day, Student and College fair reductions, etc.
      • 2018 Budget includes an increase for diesel fuel of $44,600 based on an estimated $0.95/L compared to $0.87/L in 2017 budget.
      • The 2018 capital projects proposed include; Purchase of Convention Bus ($510,000) and Handi-Transit Bus ($250,000), Video Surveillance for the building ($50,000) and Tire Balancer ($25,000).
      • A slide show presentation that Mr. Tapp spoke to in detail outlined the Transit Master Plan ($100,000 included in 2018 budget submission). This amount includes the Realignment of Bus Routes ($15,000), simplifying the route network ($35,000), fare increases, Handi-Transit and New Technologies ($50,000). Included in the new technologies would be a GPS app that would give real-time updates to the location of bus enroute.
      Mayor O'Shaugnessy requested a comparison of transit subsidy rate paid by the taxpayer the past three years. Also requested was the impact of Capital purchases on the tax base in the next five years. Administration to report back.


      NEW BUSINESS


      UNFINISHED BUSINESS

      To be discussed at the next meeting;

      1 Seaway Food Festival - Summer Beer Fest
      Click for detail --> Seaway Food Festival - Summer Beer Fest

      2 Public Information Coordinator

      3 Water and Wastewater - Capital Budget and Backlog
      Click for detail --> Water and Wastewater - Capital Budget and Backlog

      Listing of Reports


      NEXT MEETING

      January 29, 2018 (4:00pm - 9:00pm)


      ADJOURNMENT

      The Budget Steering Committee meeting was adjourned at 3:20 pm.