Strategic Planning and Budget Committee Minutes

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

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 [email protected]


Chair M. Harris called the meeting to order at 8:30 a.m.

Chair M. Harris provided a land acknowledgement.

B. Vrbanovic addressed the motion, highlighting several areas across the corporation including Supplies, Equipment, Facilities Maintenance, Professional Fees & Services, Communications, Travel, and Facility Occupancy Charges, where budgetary increases significantly exceeded the inflation rate. He emphasized that achieving a 5–6% budget increase should be a priority and noted that if the target is not met, the budget may need to be sent back to staff for further adjustments.

Members of the Committee shared their perspectives on the motion. It was noted that staff conduct an annual review to identify cost-saving opportunities, and further reductions could compromise Council’s ability to deliver services effectively.

A question was posed regarding the impact of a 1% change to the budget. Wayne Steffler, Commissioner, Corporate Services and Chief Financial Officer, clarified that a 1% budget adjustment represents $5.3 million. He elaborated on the budget review process, stating that the finance team initiated this work in April and conducted a thorough administrative review. Specific adjustments, such as those for communications, linked to equipping staff with cell phones for multi-factor authentication, were highlighted as measures to align with operational requirements.

Chris Wilson, Manager, Corporate Budgets, provided additional details on the budget’s impact noting that the impact per $100,000 of residential assessment is approximately $68 per year.  The impact to the average household based on a residential property valued at $354,500 as of January 1, 2016 (the last assessment) is approximately $241 per year.

B. Vrbanovic further addressed departmental increases, noting that explanations for these adjustments were provided. W. Steffler responded with specific examples, such as the Miovision transit impact and the transition from landlines to cell phones, which were largely cost-neutral when factoring in operational benefits.

Jennifer Rose, Commissioner, Engineering & Environmental Services, spoke to the Facilities Maintenance budget increase, explaining that reducing this allocation would limit the Region’s ability to perform preventative maintenance, leaving staff to respond only to emergencies. She noted that this would have direct consequences for residents of Waterloo Region.

Members of the Committee further deliberated on the motion and shared their voting positions.

Regional Chair K. Redman brought forward a motion to call the question.

N. Salonen joined the meeting at 8:40 AM. ()
J. Erb joined the meeting at 8:43 AM. ()
D. McCabe joined the meeting at 8:48 AM. ()
K. Williams joined the meeting at 9:01 AM. ()
  • Moved byB. Vrbanovic
    Seconded byC. James

    Whereas Supplies, Equipment, Facilities Maintenance, Professional Fees & Services, Communications, Travel, and Facility Occupancy Charges have seen a proposed increase from a total expenditure of 185,354,000 in 2024 to 202,630,000 in 2025, representing 17,276,000 or 9.32%,

    And whereas the one-year inflation rate is 2.2% and the two-year average inflation rate is 3.2%,

    Be it resolved that the total increase for these areas be capped at 5%, or a total expenditure in 2025 of 194,622,000, and further, that the 2025 operating budget be reduced by $8,008,000, less than $1,070,000 or an overall decrease of $6,938,000.

    In Favor (9)B. Vrbanovic, J. Nowak, M. Harris, S. Shantz, S. Foxton, J. Liggett, D. Craig, N. Salonen, and K. Williams
    Opposed (6)J. Erb, K. Redman, D. McCabe, P. Wolf, C. James, and R. Deutschmann
    Carried (9 to 6)
  • Moved byK. Redman
    Seconded byN. Salonen

    That the previous question be called.

    In Favor (10)J. Nowak, K. Redman, M. Harris, S. Foxton, J. Liggett, D. Craig, C. James, R. Deutschmann, N. Salonen, and K. Williams
    Opposed (5)B. Vrbanovic, J. Erb, S. Shantz, D. McCabe, and P. Wolf
    Carried (10 to 5)

B. Vrbanovic spoke to his motion, noting the potential to make the proposed reduction and direct staff to revisit the matter in 2025.

Members of the Committee deliberated on the motion, expressing their voting positions and referencing the direction previously provided to staff.

During the discussion on the deferral, questions were raised about the feasibility of approving the operating budget without the capital budget. W. Steffler responded that delaying the capital budget would significantly impact projects and contracts. J. Rose emphasized the importance of approving the capital budget by the end of the year, as it enables contract tenders and bid processes to proceed without delay.

A motion was made to defer the matter to the 2026 budget. Members of the Committee deliberated on the deferral, noting their voting positions and the need for additional information.

The deferral was carried.

S. Shantz left the meeting at 9:42 AM. ()
  • Moved byB. Vrbanovic
    Seconded byD. Craig

    Whereas the 2025-2034 Regional Capital Budget is proposed to be set at $6,773,503,000;

    And where as the 2025 capital budget is proposed to be $652,995,000;

    Be it resolved that the 10 year capital budget be reduced annually by the equivalent of a 1% reduction to the proposed 2025 regional tax levy.

  • Moved byD. McCabe
    Seconded byR. Deutschmann

    That the Regional Municipality of Waterloo defer the motion discussed under item 4.2 to the 2026 budget.

    In Favor (9)J. Erb, K. Redman, M. Harris, S. Foxton, D. McCabe, P. Wolf, C. James, R. Deutschmann, and K. Williams
    Opposed (5)B. Vrbanovic, J. Nowak, J. Liggett, D. Craig, and N. Salonen
    Carried (9 to 5)

W. Steffler provided an update on the 2025 User Fees and Charges Report, noting that the Municipal Act authorizes the Region to establish and maintain a list of services subject to charges. Approval at this stage is critical to ensure implementation at the beginning of the year. He highlighted increases in wholesale and retail water and wastewater rates, transit service fees, waste management fees, and airport performance fees. Minor adjustments were also proposed for senior services, supportive housing, cultural services, public health, paramedic services, transportation, and other areas. Details on the changes are outlined in the appended report.

Members of the Committee discussed the timing for additional motions that they can put forward.

Responding to questions, J. Rose provided clarification regarding the recycling program with the producers. She explained that the Region is working  to manage the tipping fees at public drop-off locations where residents dispose of their recycling. The bins at these locations allow for the collection of recyclable materials, which are then sold back to the producers who purchase these materials. The revenue generated from this process comes from renting space to the producers, with the recycling program contributing to this revenue.

  • Moved byC. James
    Seconded byN. Salonen

    That the Regional Municipality of Waterloo repeal By-Law 24-028, (A By-Law to amend By-Law Number 23-062, A By-law to Establish Fees and Charges for the Regional Municipality of Waterloo and repeal By-law 23-009, as Amended) and pass a new Fees and Charges By-law including the new and adjusted fees and charges in the 2025 Budget as set out in report COR-CFN-24-028 dated December 11, 2024, as amended by the Strategic Planning and Budget Committee on December 11, 2024.

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

W. Steffler introduced the report, noting that the regulation under the Municipal Act requires municipalities to prepare and adopt a budget that excludes certain expenses, such as amortization, post-employment benefits, and landfill closure and post-closure expenses. These exclusions are reviewed when examining the financial statements, and the modified basis referenced in the report pertains to budgeting practices. He indicated that the report also outlines the requirement for the Region to include contributions to capital reserves in the annual budget to fund asset renewal and replacement costs. Additionally, employee benefit expenses, including actual costs, are accounted for in the budget, as required under the long-term accrual basis used in the financial statements.

C. Wilson noted that the figures presented are estimates for comparison purposes and highlighted that, in previous years, this report has been passed prior to the final budget to ensure that any budget amendments do not impact it. W. Steffler provided additional clarification.

B. Vrbanovic proposed a motion to defer the vote on this matter until after the main budget motion; however, the motion was defeated.

C. Wilson further clarified the requirements of the motion and outlined what was being voted on.

  • Moved byR. Deutschmann
    Seconded byP. Wolf

    That the Regional Municipality of Waterloo adopt report COR-CFN-24-027 dated December 11, 2024 titled “Municipal Budget Regulation” as required by Ontario Regulation 284/09.

    In Favor (13)B. Vrbanovic, J. Erb, J. Nowak, K. Redman, M. Harris, S. Foxton, D. McCabe, J. Liggett, P. Wolf, C. James, R. Deutschmann, N. Salonen, and K. Williams
    Opposed (1)D. Craig
    Carried (13 to 1)
  • Moved byB. Vrbanovic
    Seconded byN. Salonen

    That the Regional Municipality of Waterloo defer the motion discussed under item 6 to after item 7 on the Strategic Planning & Budget agenda for December 20, 2024.

    In Favor (7)B. Vrbanovic, J. Nowak, S. Foxton, J. Liggett, D. Craig, C. James, and N. Salonen
    Opposed (7)J. Erb, K. Redman, M. Harris, D. McCabe, P. Wolf, R. Deutschmann, and K. Williams
    Defeated (7 to 7)


C. James requested a closed session meeting be held regarding an identifiable individual.

The Committee moved into a closed session at 10:15 a.m. and reconvened in open session at 10:45 a.m.

S. Foxton moved a motion that staff report back on each item related to Item 4.1 regarding the reductions to be executed for Council approval, as amended. The Committee engaged in discussion on the amendment.

B. Vrbanovic moved a motion to defer the entire budget to January 29, 2025. The Committee discussed the deferral, and members shared their voting positions. Mathieu Goetzke, Acting Chief Administrative Officer, spoke to the implications of deferring the budget. The motion was defeated.

M. Goetzke addressed Item 4.1, stating that Finance has been working to provide an updated figure, noting that the portion of gross expenditure is approximately 38%. C. Wilson clarified that with a levy reduction of $2.64 million, the overall impact is 9.89%. When factoring in the police budget, the impact is 9.48%.

The Committee deliberated on the matter. C. Wilson further explained that the Region's component started the day at 10.39%, and after adjustments, it is now 9.89%. The police numbers remained unchanged, bringing the overall impact to 9.48%.

S. Shantz joined the meeting at 10:56 AM. ()
  • Moved byC. James
    Seconded byS. Foxton

    That the Regional Municipality of Waterloo take the following action with respect to the 2025 Plan and Budget:

    1. Approve the 2025 Plan as set out Appendix A of report COR-CFN-24-029 dated December 11, 2024;
    2. Approve the 2025 Operating Budget as summarized in Appendix D of report COR-CFN-24-029 dated December 11, 2024 as amended by the Strategic Plan and Budget Committee on December 11, and December 20, 2024, with a net expenditure of $1,684,964,914 and a property tax levy of $831,778,942 in 2025;
    3. Approve the 2025 Capital Budget and 2026-2034 Capital Forecast as summarized in Appendix D of report COR-CFN-24-029 dated December 11, 2024, as amended by the Strategic Plan and Budget Committee on December 11, and subject to final adjustments for 2024 project carry-forwards.
    In Favor (11)J. Erb, J. Nowak, K. Redman, M. Harris, S. Shantz, S. Foxton, D. McCabe, P. Wolf, C. James, R. Deutschmann, and K. Williams
    Opposed (4)B. Vrbanovic, J. Liggett, D. Craig, and N. Salonen
    Carried (11 to 4)
  • Moved byC. James
    Seconded byS. Foxton

    That a closed meeting of the Strategic Planning and Budget Committee be held on December 20 2024 at 10:00 a.m. in Waterloo County Room, in accordance with Section 239 of the “Municipal Act, 2001”, for the purposes of considering the following subject matters:

    1. personal matters about an identifiable individual, related to staffing matters.

     

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

    That the Strategic Planning and Budget Committee reconvene into open session.

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

    That staff report back each item regarding Item 4.1 regarding the information on the reductions to be executed for Council approval, 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, R. Deutschmann, N. Salonen, and K. Williams
    Carried (15 to 0)
  • Amendment:
    Moved byN. Salonen
    Seconded byC. James

    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 (14)B. Vrbanovic, J. Erb, J. Nowak, K. Redman, M. Harris, S. Foxton, D. McCabe, J. Liggett, D. Craig, P. Wolf, C. James, R. Deutschmann, N. Salonen, and K. Williams
    Carried (14 to 0)
  • Amendment:
    Moved byP. Wolf
    Seconded byB. Vrbanovic

    That the motion be amended to include “for Council approval”

    In Favor (10)B. Vrbanovic, J. Erb, M. Harris, S. Shantz, D. McCabe, J. Liggett, D. Craig, P. Wolf, R. Deutschmann, and K. Williams
    Opposed (5)J. Nowak, K. Redman, S. Foxton, C. James, and N. Salonen
    Carried (10 to 5)
  • Moved byB. Vrbanovic
    Seconded byN. Salonen

    That the Regional Municipality of Waterloo defer the motion discussed under item 7, Main Budget Motion Approval, to a meeting to be called on January 29 2025.

     

    In Favor (3)B. Vrbanovic, D. Craig, and R. Deutschmann
    Opposed (12)J. Erb, J. Nowak, K. Redman, M. Harris, S. Shantz, S. Foxton, D. McCabe, J. Liggett, P. Wolf, C. James, N. Salonen, and K. Williams
    Defeated (3 to 12)

No other business.

10.

 
  • Moved byS. Foxton
    Seconded byN. Salonen

    That the meeting adjourn at 12:06 p.m. 

    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, R. Deutschmann, N. Salonen, and K. Williams
    Carried (15 to 0)