Administration and Finance Committee Minutes

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Council Chambers
Members Present:
  • K. Redman, 
  • D. Craig, 
  • J. Erb, 
  • S. Foxton, 
  • M. Harris, 
  • C. Huinink, 
  • C. James, 
  • J. Liggett, 
  • D. McCabe, 
  • J. Nowak, 
  • N. Salonen, 
  • S. Shantz, 
  • B. Vrbanovic, 
  • K. Williams, 
  • and P. Wolf 
Members Absent:
  • R. Deutschmann 

Should you require an alternative format or a copy of the official minutes please contact the Regional Clerk at Tel.: 519-575-4400, TTY: 519-575-4605, or regionalclerk@regionofwaterloo.ca


Start time is approximate. Administration and Finance Committee will start immediately following Closed Committee.

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Chair M. Harris called the meeting to order at 1:49 p.m.

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Chair M. Harris provided a land acknowledgment.

Councillor C. James declared an indirect pecuniary interest for item 8.1.1 0 PDL-ECD-24-001, Entrepreneurial Grants 2024 due to her being a paid mentor for an applicant.

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  • Moved byD. McCabe
    Seconded byS. Shantz

    That Administration and Finance Committee reconvene into open session.

    In Favor (15)B. Vrbanovic, J. Erb, J. Nowak, K. Redman, M. Harris, S. Shantz, S. Foxton, D. McCabe, J. Liggett, D. Craig, P. Wolf, C. James, N. Salonen, C. Huinink, and K. Williams
    Carried (15 to 0)

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John Glass and Jordan Baker from the Waterloo Regional Heritage Foundation provided an update on the foundation. They discussed the organization's history, recent strategic planning activities, consulting funding, and the next steps.

In response to questions from the committee, J. Glass explained that once the new direction is implemented, there will be a plan to review its effectiveness. He also mentioned that they are working closely on projects that need to be expanded, noting that there is no shortage of people who require their services. He further explained the properties that will be considered and that a lot of the funding has followed a path and has been impactful. However, as the community evolves, they are focusing their energy on ways to reflect the current community, rather than just maintaining the status quo.

David Marskell and Linda Fabi from THEMUSEUM provided a presentation on the funding of the organization. They discussed iconic arts, the flawed financial models they inherited, and the need for a sustainable financial solution.

In response to questions from the Committee, L. Fabi indicated that both the City of Kitchener and the City of Waterloo have increased their grants by approximately 14 percent over the last five years to account for inflation, but the Region has not. She noted that the cost of running the organization continues to rise, yet the funding does not keep pace. They further discussed the funding model and the factors that have prevented THEMUSEUM from progressing, explaining why this shift has not occurred. They emphasized that it is not an expense issue but a revenue issue. Compared to what other museums are receiving in terms of percentage, THEMUSEUM is not funded properly. They stressed that THEMUSEUM needs to be funded on par with other similar organizations.

D. Marskell spoke about the organization's survivability and the conversations they have had with City of Kitchener staff to identify scenarios. L. Fabi stated that THEMUSEUM has been underfunded since the beginning and emphasized their ongoing efforts to keep leadership at the Region and Cities aware of their challenges. D. Marskell reiterated that the model works, but it is just underfunded.

  • Moved byB. Vrbanovic
    Seconded byD. Craig

    That the Regional Municipality of Waterloo waive notice of motion as per section 70 of By-law 22-051, A By-law to Provide Rules for Governing the Proceedings of Council and its Committees, and to repeal By-Law 00-031, as amended.

    In Favor (9)B. Vrbanovic, J. Nowak, M. Harris, S. Foxton, J. Liggett, D. Craig, P. Wolf, C. James, and N. Salonen
    Opposed (6)J. Erb, K. Redman, S. Shantz, D. McCabe, C. Huinink, and K. Williams
    Defeated (9 to 6)

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8.
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8.1
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Cheryl Braan, Acting Commissioner of Corporate Services and Chief Financial Officer, discussed the report, indicating that its purpose is to allocate grants under the entrepreneurial grant stream in accordance with the Region's discretionary grant policy. She highlighted that 14 applications were received, and 6 applicants met the criteria for the stream and are being recommended for funding.

  • Moved byS. Foxton
    Seconded byC. Huinink

    That the Regional Municipality of Waterloo adopts the staff recommended funding allocations totalling $68,400 as set out in Appendix A - Economic Development – Entrepreneurial Initiative grant program funds in report PDL-ECD-24-001, dated June 4, 2024.

    In Favor (14)B. Vrbanovic, J. Erb, J. Nowak, K. Redman, M. Harris, S. Shantz, S. Foxton, D. McCabe, J. Liggett, D. Craig, P. Wolf, N. Salonen, C. Huinink, and K. Williams
    Conflict (1)C. James
    Carried (14 to 0)

C. Braan discussed the report, noting that its purpose is to allocate grants under the Community Environmental Grant Program, which was established in October 2011 to provide funding for stewardship and sustainability projects throughout the region. She highlighted that 16 applications met the criteria for the stream and are being recommended for funding.

In response to questions from the Committee, Meaghan Eastwood, Manager of Environmental Planning & Sustainability, addressed the geographical distribution of applicants. She noted that while they encourage applications from across the region and have observed a good spread of applicants, the selection process is primarily merit-based rather than solely driven by geographical considerations.

M. Eastwood addressed the question on how groups are informed about the application process, stating that they typically utilize social media platforms and send notifications to past applicants. Additionally, they encourage people to visit the organization's website for further information.

  • Moved byC. Huinink
    Seconded byS. Foxton

    That the Regional Municipality of Waterloo approve funding allocations totalling up to $90,000 from the Community Environmental Fund to support 16 stewardship and sustainability projects as described in Report PDL-CPL-24-011, dated June 4, 2024.

    In Favor (15)B. Vrbanovic, J. Erb, J. Nowak, K. Redman, M. Harris, S. Shantz, S. Foxton, D. McCabe, J. Liggett, D. Craig, P. Wolf, C. James, N. Salonen, C. Huinink, and K. Williams
    Carried (15 to 0)

C. Braan discussed the report, outlining that its purpose is to allocate grants under the Major Arts and Cultural Organizations Grant Program, following the Region's discretionary grant policy. In 2024, a total of 13 applications were received, with 10 applicants meeting the criteria for the stream and being recommended for funding.

Councillor J. Liggett requested that one of the entities be temporarily removed from the recommended list until certain concerns about it are clarified.

In response to a question from the Committee, Julian Kingston, Director of Cultural Services, clarified that the Fashion History Museum does meet the criteria for the program. He explained that while the application involved the finances of the group, it did not pertain to the ongoing dispute between the museum and the city; rather, it focused solely on financial matters.

This Item was deferred.

  • That the Regional Municipality of Waterloo approve the 2024 funding allocations of $306,000 under the Major Arts and Culture Organizations grant program as outlined in report PDL-CUL-24-008 dated June 4, 2024.

  • Moved byC. James
    Seconded byS. Foxton

    That the Regional Municipality of Waterloo defer the motion discussed under item 8.3.1 to the next Council meeting on June 19th, 2024.

    In Favor (15)B. Vrbanovic, J. Erb, J. Nowak, K. Redman, M. Harris, S. Shantz, S. Foxton, D. McCabe, J. Liggett, D. Craig, P. Wolf, C. James, N. Salonen, C. Huinink, and K. Williams
    Carried (15 to 0)

C. Braan introduced the report. Mathieu Goetzke, Acting Chief Administrative Officer, delivered a presentation highlighting the impactful investments made through the plan and budget in 2024. C. Braan then spoke to the key budget drivers and assumptions for 2025, emphasizing regional funding for services that ideally should be funded by provincial revenues. Connie MacDonald, Chief Communications & Strategy Officer, discussed the principles and outlined the next steps, including plans for public engagement.

Members of the Committee discussed the affordability of living in the Region compared to neighbouring municipalities.

A request was made by the Committee for staff to bring back information on the service levels the Region is legislated to provide and to include that in the base budget. They emphasized the importance of seeing this information during budget discussions.

In response to a question, M. Goetzke addressed the report, clarifying that it is for information purposes and mentioned that staff are initiating work to bring forward a proposal in the fall. 

Regional Chair K. Redman assumed the role of Committee Chair while Chair M. Harris introduced a notice of motion.

M. Harris addressed the motion, emphasizing the importance of recognizing fiscal restraints faced on behalf of taxpayers. He encouraged self-reflection regarding previous budget decisions. Highlighting the pressure from interest rates on home and family budgets, he believes this motion would provide clear direction to staff, which would enable them to compile comprehensive information for the Committee's use in making decisions during the fall budget cycle.

Members of the Committee engaged in discussions and deliberations regarding housing affordability and Provincial support. There was consideration for establishing a subcommittee to facilitate a collaborative approach with staff and to reflect on the support of various levels of government.

Councillor Salonen proposed an amendment the motion to include a review of service levels in the base budget and clarification on legislative mandates for the region's provision of services. Additionally, that staff report on any overlaps between Regional and Area Municipalities' services. The amendment carried.

Councillor Vrbanovic proposed amending the motion to instruct staff to present a budget with no more than a 6% increase. Additionally, staff should conduct a thorough review of the Region's administrative expenses and explore operational alternatives. Councillor Huinink requested separate votes on these amendments.

The Committee deliberated on the proposed amendments, emphasizing the significance of making tough budget decisions for the future while acknowledging the efforts of staff in implementing these requests.

 
J. Liggett left the meeting at 4:11 PM. ()
  • Moved byM. Harris
    Seconded byS. Foxton

    That the Regional Municipality of Waterloo waive notice of motion as per section 70 of By-law 22-051, A By-law to Provide Rules for Governing the Proceedings of Council and its Committees, and to repeal By-Law 00-031, as amended.

    In Favor (15)B. Vrbanovic, J. Erb, J. Nowak, K. Redman, M. Harris, S. Shantz, S. Foxton, D. McCabe, J. Liggett, D. Craig, P. Wolf, C. James, N. Salonen, C. Huinink, and K. Williams
    Carried (15 to 0)
  • Moved byM. Harris
    Seconded byD. McCabe

    WHEREAS the projection for services that should be delivered by higher levels of government is now $216-million, up from $188-million in 2024; and

    WHEREAS the Region of Waterloo has formally requested that the Province of Ontario commit to a new municipal fiscal funding framework for the Region of Waterloo in order to maintain sustainable service delivery and sound infrastructure within Waterloo Region;

    THEREFORE BE IT RESOLVED

    Regional Council direct staff to return with a budget that has less than an 8 per-cent tax rate increase, prioritizing potential funding reductions in areas that should be funded by higher levels of government

    Regional Council direct staff to compile a comprehensive review of funding provided by the Region to external organizations and conduct analysis on whether it matches a strategic priority area within the Region of Waterloo's Strategic Plan, Growing With Care

    Regional Council direct staff to conduct a priority ranking of funding provided by the Region to external parties under each of the Region of Waterloo’s Strategic Plan, Growing With Care pillars; Homes for All, Climate Aligned Growth, Equitable Services and Opportunities, and a Resilient and Future Ready Organization

    That staff provide a review of all services currently baked into the base budget and provide information on what is legislatively mandated for the region to provide; and

    That staff also report back on areas of overlap between regional and area municipalities services; and

    Further, that Staff conduct a comprehensive review of the Region’s administrative expenses, and what could be done differently operationally.

    In Favor (14)B. Vrbanovic, J. Erb, J. Nowak, K. Redman, M. Harris, S. Shantz, S. Foxton, D. McCabe, D. Craig, P. Wolf, C. James, N. Salonen, C. Huinink, and K. Williams
    Carried (14 to 0)
  • Moved byN. Salonen
    Seconded byC. James

    That the motion be amended to include:

    • That staff provide a review of all of the service levels currently baked into the base budget and provide information on what is legislatively mandated for the region to provide
    • That staff also report back on areas of overlap between regional and area municipalities services
    In Favor (15)B. Vrbanovic, J. Erb, J. Nowak, K. Redman, M. Harris, S. Shantz, S. Foxton, D. McCabe, J. Liggett, D. Craig, P. Wolf, C. James, N. Salonen, C. Huinink, and K. Williams
    Carried (15 to 0)
  • Moved byB. Vrbanovic
    Seconded byS. Foxton

    That Staff be directed to return with a budget that has no more than a 6% increase

    In Favor (6)B. Vrbanovic, J. Nowak, S. Shantz, D. Craig, N. Salonen, and K. Williams
    Opposed (8)J. Erb, K. Redman, M. Harris, S. Foxton, D. McCabe, P. Wolf, C. James, and C. Huinink
    Defeated (6 to 8)
  • Moved byB. Vrbanovic
    Seconded byC. Huinink

    That Staff conduct a comprehensive review of the Region’s administrative expenses, and what could be done differently operationally. 

    In Favor (14)B. Vrbanovic, J. Erb, J. Nowak, K. Redman, M. Harris, S. Shantz, S. Foxton, D. McCabe, D. Craig, P. Wolf, C. James, N. Salonen, C. Huinink, and K. Williams
    Carried (14 to 0)

Will Short, Director Council & Administrative Services/Regional Clerk, spoke to the report, highlighting that as part of the review, staff consulted with other municipalities on how they conducted their COuncil remuneration reviews and that there were multiple municipalities that had mixed results when using an Advisory Committee and staff wanted to provide Council with other options. He indicated that this report includes the terms of reference for the Committee as directed along with a consultant to support the committee an option to have a third party consultant to conduct the review or to maintain its status quo. 

During the Committee's discussion on the presented options, including the potential hiring of third-party support, Tim Brubacher, Deputy Clerk/Manager Council & Administrative Services, clarified in response to a Committee inquiry. He explained that the terms of reference for the advisory committee primarily focus on reviewing the Council's staff complement, rather than explicitly considering the hiring of external staff.

B. Vrbanovic left the meeting at 4:34 PM. ()
  • For Direction:

    Option 1:

    That the Regional Municipality of Waterloo approve the Terms of Reference for the Council Remuneration and Support Advisory Committee as outlined in Appendix A of report PDL-CAS-24-002, dated June 4, 2024.

    And that the Regional Clerk be directed to advertise for applications for membership on the Committee in September 2024 and present all applications received to Council in October 2024.

    And that $50,000 be included in the 2025 budget for the purposes of securing the services of an independent external compensation consultant to conduct the review in partnership with the Council Remuneration and Support Advisory Committee.

    Option 2:

    That the Regional Municipality of Waterloo direct staff, in 2025, to secure the services of an independent external compensation consultant to conduct a review of the remuneration, benefits, and staff support provided to Regional Council.

    And that $50,000 be included in the 2025 budget for the purposes of securing the services of an independent external compensation consultant to conduct the review.

    And that the consultant’s review includes opportunities for the public to provide input.

    And that a public meeting of Council be scheduled to allow the public to comment on the consultant’s report prior to Council considering the recommendations from the consultant as outlined in report PDL-CAS-24-002, dated June 4, 2024.

    Option 3:

    That the Regional Municipality of Waterloo approve the following, effective for the next term of Regional Council, November 15, 2026 to November 14, 2030:

    1. Maintain the current base compensation rates for the positions of Regional Chair, Regional Councillor, and Regional Standing Committee Chair during the next term of Council;
    2. Continue to adjust base compensation rates of the Regional Chair, Regional Councillor and Regional Standing Committee Chair, effective January 1 each year in accordance with the lesser of:
      1. the average annual change in the all-items Consumer Price Index for Ontario for the previous year; or
      2. the increase approved for non-union Regional staff; or
      3. 3 %.

        as outlined in report PDL-CAS-24-002, dated June 4, 2024.

  • Moved byC. James
    Seconded byC. Huinink

    Option 2:

    That the Regional Municipality of Waterloo direct staff, in 2025, to secure the services of an independent external compensation consultant to conduct a review of the remuneration, benefits, and staff support provided to Regional Council.

    And that $50,000 be included in the 2025 budget for the purposes of securing the services of an independent external compensation consultant to conduct the review.

    And that the consultant’s review includes opportunities for the public to provide input.

    And that a public meeting of Council be scheduled to allow the public to comment on the consultant’s report prior to Council considering the recommendations from the consultant as outlined in report PDL-CAS-24-002, dated June 4, 2024.

    In Favor (10)J. Erb, J. Nowak, K. Redman, M. Harris, S. Shantz, D. McCabe, C. James, N. Salonen, C. Huinink, and K. Williams
    Opposed (3)S. Foxton, D. Craig, and P. Wolf
    Carried (10 to 3)
  • Option 3:

    That the Regional Municipality of Waterloo approve the following, effective for the next term of Regional Council, November 15, 2026 to November 14, 2030:

    1. Maintain the current base compensation rates for the positions of Regional Chair, Regional Councillor, and Regional Standing Committee Chair during the next term of Council;
    2. Continue to adjust base compensation rates of the Regional Chair, Regional Councillor and Regional Standing Committee Chair, effective January 1 each year in accordance with the lesser of:
      1. the average annual change in the all-items Consumer Price Index for Ontario for the previous year; or
      2. the increase approved for non-union Regional staff; or
      3. 3 %.

        as outlined in report PDL-CAS-24-002, dated June 4, 2024.

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No other business.

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  • Moved byS. Foxton
    Seconded byP. Wolf

    That the meeting adjourn at 4:37 p.m.

    In Favor (13)J. Erb, J. Nowak, K. Redman, M. Harris, S. Shantz, S. Foxton, D. McCabe, D. Craig, P. Wolf, C. James, N. Salonen, C. Huinink, and K. Williams
    Carried (13 to 0)