Strategic Planning and Budget Committee Minutes

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

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


Regional Chair K. Redman called the meeting to order at 1:03 p.m.

Regional Chair K. Redman provided a land acknowledgement.

Craig Dyer, Commissioner, Corporate Services/Chief Financial Officer, provided a presentation to introduce the 2024 Budget. A copy of the presentation is appended to the original minutes.

In response to a Committee question, C. Dyer mentioned that the target balance in the rate stabilization reserve is $15 million, proposing to use $5.58 million from this fund in the 2024 budget.

C. Dyer continued the presentation noting that the fees and charges associated with different areas will be presented with the various areas. Furthermore, a fees and charges by-law based on those fees will be presented on the final budget day. He indicated that the information presented encompasses all services directly offered by the Region, with additional information from the Waterloo Regional Police Services (WRPS), to be added as it becomes available. C. Dyer noted that a Board meeting and public input session is scheduled for WRPS. December 13, 2023 is the approved schedule from Council and is what staff are working towards

C. Dyer highlighted the $3.3 million in reductions that have been identified by staff, including new revenue, staffing decisions, and efficiency improvements. He also mentioned that service level expansions approved by Council in 2023 are incorporated into the 2024 budget. Any service expansions proposed by staff will require Committee approval during the budget process.

In response to a question from the Committee, Rod Regier, Commissioner, Planning, Development & Legislative Services, explained that airport resources and economic development files are included in the Housing for All strategic priority due to their impact on economic resilience and the housing market. Bruce Lauckner, Chief Administrative Officer, added that this approach supports the development of shovel-ready lands, extending beyond affordable housing.

Jennifer Rose, Commissioner of Engineering and Environmental Services, continued the presentation, focusing on how the 2024 budget supports the strategic priority of Climate Aligned Growth. She highlighted water and wastewater services, noting that staff recommend the inclusion of a health and safety specialist, and suggested no change to wholesale water rates in the 2024 budget.

In response to a question from the Committee, Mari MacNeil, Director, Water & Wastewater Services, mentioned staff's exploration of thermal capturing at wastewater treatment plants for electricity savings.

Cheryl Braan, Director, Corporate Finance, continued the presentation and provided an overview of the 10 year capital forecast and debt for water and wastewater.

C. Dyer indicated that staff are currently working on background research for the next development charge study, with a report expected in 2024. This study considers important factors, notwithstanding Bill 23. Projections for the next five years are based on the best available information, but they will be recalibrated as needed over the next 12-18 months due to changing circumstances.

J. Rose proceeded with the presentation, emphasizing the 2024 waste management initiatives aligned with the Climate Aligned Growth strategic priority. These include the Waste Management Master Plan and a transformation of the Waterloo public drop-off. Shifting the focus to budget considerations, C. Braan highlighted noteworthy changes within the waste management budget, underlining their minimal impact on the tax levy. Additionally, J. Rose addressed asset management, stressing the importance of addressing aging infrastructure while meeting Council approved service levels. She highlighted the inclusion of two new staff positions recommended in the budget, which are strategically designed to prioritize spending on assets in alignment with the broader strategic plan.

Mathieu Goetzke, Commissioner of Transportation Services, delivered an overview of the transportation initiatives featured in the 2024 budget, in alignment with the Climate Aligned Growth strategic initiative. These initiatives encompass the Integrated Mobility Plan and Corridor Design Guidelines. Members of the Committee enquired about enhancing the accessibility on pedestrian buttons at crosswalks, further resources regarding trees on Regional roads, and tree planting.

M. Goetzke continued the presentation and provided an overview on transit initiatives including fleet expansion, electrification of the fleet, and work on the Kitchener Central Station. C. Braan highlighted that the $4.8 million increase in transit operating costs is primarily driven by inflation and expansion, including service expansions from 2023, alongside some improved revenue projections.

Members of the Committee enquired about increased service for mobility plus, LRT frequency during special events, and transit expansion. 

The Committee recessed at 4:15pm and reconvened at 4:24pm.

M. Harris assumed the Chair. 

Rod Regier, Commissioner of Planning, Development & Legislative Services, continued the presentation, underscoring collaborative efforts with partners and area municipalities pertaining to Transform WR. He mentioned that the budget includes funding for the establishment of a Home Energy Retrofit Pilot Program aimed at assisting homeowners in making energy-efficient upgrades. C. Braan clarified that the primary funding source for this program will be from FCM, with the anticipated 2024 costs estimated at approximately $2 million.

M. Harris joined the meeting at 4:03 PM. ()
  • Moved byP. Wolf
    Seconded byS. Foxton

    That staff be directed to include in the 2024 Operating Budget a service expansion for a Health and Safety Specialist as described in Appendix A to the 2024 budget document.

    In Favor (14)J. Erb, J. Nowak, K. Redman, S. Shantz, S. Foxton, D. McCabe, J. Liggett, D. Craig, P. Wolf, C. James, R. Deutschmann, N. Salonen, C. Huinink, and K. Williams
    Carried (14 to 0)
  • Moved byJ. Erb
    Seconded byC. James
    1. That staff be directed to include in the 2024 Operating Budget a proposed service expansion for an Asset Performance Analyst as described in Appendix A to the 2024 budget document.
    2. That staff be directed to include in the 2024 Operating Budget a proposed service expansion for an Asset Management Planner as described in Appendix A to the 2024 budget document.
    In Favor (14)J. Erb, J. Nowak, K. Redman, S. Shantz, S. Foxton, D. McCabe, J. Liggett, D. Craig, P. Wolf, C. James, R. Deutschmann, N. Salonen, C. Huinink, and K. Williams
    Carried (14 to 0)
  • Moved byD. McCabe
    Seconded byC. Huinink
    1. That staff be directed to include in the 2024 Operating Budget a proposed service expansion for horticultural services as described in Appendix A to the 2024 budget document.
    2. That staff be directed to include in the 2024 Operating Budget a proposed service expansion for urban forestry management as described in Appendix A to the 2024 budget document.
    3. That staff be directed to include in the 2024 Operating Budget a proposed service expansion for active transportation as described in Appendix A to the 2024 budget document.
    4. That staff be directed to include in the 2024 Operating Budget a proposed service expansion for transportation operations traffic signal technicians as described in Appendix A to the 2024 budget document.
    In Favor (14)J. Erb, J. Nowak, K. Redman, S. Shantz, S. Foxton, D. McCabe, J. Liggett, D. Craig, P. Wolf, C. James, R. Deutschmann, N. Salonen, C. Huinink, and K. Williams
    Carried (14 to 0)
  • Moved byD. McCabe
    Seconded byP. Wolf
    1. That staff be directed to include in the 2024 Operating Budget a service expansion for Conestoga College UPass services as described in Appendix A to the 2024 budget document, subject to confirmation of a successful student referendum. 
    2. That staff be directed to include in the 2024 Operating Budget a service expansion for GRT bus service hours as described in Appendix A to the 2024 budget document.
    3. That staff be directed to include in the 2024 Operating Budget a service expansion for ION service hours as described in Appendix A to the 2024 budget document.
    In Favor (14)J. Erb, J. Nowak, K. Redman, S. Shantz, S. Foxton, D. McCabe, J. Liggett, D. Craig, P. Wolf, C. James, R. Deutschmann, N. Salonen, C. Huinink, and K. Williams
    Carried (14 to 0)
  • That staff be directed to include in the 2024 Operating Budget a service expansion for the Home Energy Retrofit Program as described in Appendix A to the 2024 budget document. 

    In Favor (14)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 (14 to 0)

C. Dyer provided a presentation outlining the distinctions between a reserve and a reserve fund, along with their respective roles in long-term financial planning. A copy of the presentation is appended to the original minutes. He emphasized that reserves and reserve funds serve to mitigate substantial fluctuations in tax rates caused by one-time or emerging issues, consequently reducing the necessity for long-term borrowing. Furthermore, he provided an overview of the surplus allocation policy and outlined the various reserves and reserve funds currently established within the Region.

Addressing queries from the Committee, C. Dyer offered clarification regarding the impact of tax stabilization reserves on the current Moody's credit rating, the connection between the Moody's credit rating and borrowing costs, and the significance of contingency reserves.

Kirsten Hand, Director, Finance and Assets Branch, Waterloo Regional Police Service, delivered a presentation outlining the reserve and reserve funds for WRPS, with a copy of the presentation appended to the original minutes. She elaborated on how their policy aligns with the Region's capital financing principles and provided an overview of their 11 reserve and reserve funds. She emphasized that WRPS' operating budget is the primary source of funding for both its operations and capital program. She pointed out that changes to the program, such as not allowing WRPS to retain an operating surplus, would weaken the strategy for building WRPS Reserve and Reserve Fund balances.

In response to questions from the Committee, K. Hand explained that the WRPS operating budget is funded through the property tax levy. She clarified that most of the reserves were established by the Region of Waterloo, and using a reserve to cover a deficit would pose funding challenges. Furthermore, she highlighted that the Region does not allocate any funding for capital programs at WRPS. In the absence of funding, debt is issued, and both the principal and interest payments are funded by WRPS through their operating budget.

The Committee recessed at 5:36 p.m. and reconvened at 7:05 p.m.

J. Nowak left the meeting during the recess. 

Councillor C. James indicated her intention to withdraw the motion and noted that she will be submitting a new motion for November 1, 2023.

Councillor C. James offered an overview of her motion, emphasizing its purpose to establish a more streamlined and efficient process for the current budget year.

D. McCabe left the meeting at 7:12 PM. ()
  • Moved byC. James
    Seconded byC. Huinink

    WHEREAS accessibility, collegiality and respect are priorities shared by all of Council; and
    WHEREAS Council values the expert advice and analysis from Regional staff,  particularly on technical or financial matters; and 
    WHEREAS Council should have adequate time to deliberate and consider changes to policy and budgeting; and
    WHEREAS residents and media deserve adequate time for input, consideration and transparency; 
    THEREFORE BE IT RESOLVED THAT:

    • A motion to amend the final budget will be subject to notice and must be submitted in writing to the Clerk no later than Wednesday, November 29, 2023;
    • All motions to amend the final budget that are received by the Clerk by the deadline will be published in the agenda;
    • A motion to amend the final budget can be further amended during the final budget meeting without requiring notice, provided that any amendments are relevant and continue to relate to the same issue which was the subject matter of the original motion to amend the final budget; and
    • Any motion to amend the final budget that is not received by the Clerk by the deadline may be introduced at the meeting on December 13, 2023 provided that:
      • it is submitted to the clerk in writing; and
      • the Strategic Plan and Budget Committee, without debate, dispenses with notice on the affirmative vote of at least two-thirds of the members present and voting.
    In Favor (13)J. Erb, K. Redman, M. Harris, S. Shantz, S. Foxton, J. Liggett, D. Craig, P. Wolf, C. James, R. Deutschmann, N. Salonen, C. Huinink, and K. Williams
    Carried (13 to 0)

Councillor R. Deutschmann provided a presentation in support of his motion. A copy of the presentation is appended to the original minutes.

N. Salonen left the meeting at 7:20 PM. ()
  • Moved byR. Deutschmann
    Seconded byC. James

    Whereas the Region of Waterloo council passed the following resolution on February 22, 2023:

    Whereas the Police Budget is the single largest line in the Region of Waterloos operating budget; 

    Whereas the Police Services Act gives the Police Board exclusive authority to decide the detailed composition of the Budget and the Region of Waterloo can only either accept or reject the Police budget in its entirety; 

    And Whereas this budgeting arrangement is best managed between the Board and the Council on a collaborative basis; 

    Whereas the community needs an opportunity to provide input before the budget is finalized; 

    And Whereas it was until recently the practice that the Board and Chief would present their budget to Council prior to the Boards final budget approval; 

    And Whereas this new practice works counter to the preferred collaborative approach; 

    Therefore Be it resolved that the Region of Waterloo Council respectfully request that the Waterloo Regional Police Service Chief of Police: 

      1. return to its past practice and present its draft annual budget to Regional Council, area municipalities, and to the community to allow time for both the Regional Council and the community to review and to provide comments prior to the Waterloo Regional Police Service Board finalizing its annual budget; and
      2. ensure that a community engagement process be included in the development of the annual budget prior to presenting its draft annual budget to Regional Council.

    And whereas the Waterloo Region Police Services Board and the Waterloo Regional Police Service Chief of Police have not provided the Region of Waterloo Council with any formal response to the resolution;

    And whereas the Police Services Board and the Waterloo Regional Police Service Chief of Police have not arranged to present a draft annual budget to Regional Council to allow time for Regional Council to review and to provide comments prior to the Waterloo Regional Police Service Board finalizing its annual budget, but instead intend to provide the Region of Waterloo council with an approved budget on November 22, 2023;

    THEREFORE BE IT RESOLVED THAT the Region of Waterloo council express its dissatisfaction and disappointment in the lack of a formal response, and no attempt to accommodate the wishes of Region of Waterloo council, from the Waterloo Region Police Services Board and the Waterloo Region Police Service Chief of Police, as expressed in the Region of Waterloo resolution of February 22, 2023; and

    BE IT FURTHER RESOLVED THAT the Waterloo Region Police Service Board and the Waterloo Regional Police Service Chief of Police make arrangements for a presentation of the draft budget to the Region of Waterloo council prior to the finalization of the Police Services Budget and its presentation to Region of Waterloo council on November 22, 2023.

    In Favor (6)J. Liggett, P. Wolf, C. James, R. Deutschmann, C. Huinink, and K. Williams
    Opposed (6)J. Erb, K. Redman, M. Harris, S. Shantz, S. Foxton, and D. Craig
    Defeated (6 to 6)

10.

 
  • Moved byS. Foxton
    Seconded byS. Shantz

    That the meeting adjourn at 7:22 p.m.

    In Favor (12)J. Erb, K. Redman, M. Harris, S. Shantz, S. Foxton, J. Liggett, D. Craig, P. Wolf, C. James, R. Deutschmann, C. Huinink, and K. Williams
    Carried (12 to 0)