Connie MacDonald, Chief Communications and Strategy Officer, provided a presentation to guide the work of the Sub-Committee. A copy of the presentation is included on the agenda. She explained that the meeting would look at services that the Region is mandated to provide and an overview of administrative costs and funding from other levels of government.
N. Salonen joined the meeting at 9:07 a.m.
C. MacDonald explained the draft recommendation regarding the grant policy. The Sub-Committee discussed the draft recommendation noting that it would be appropriate to conduct the review in the second year of a Council term. It was acknowledged that it will be important for Council to follow the policy. The Sub-Committee agreed that it would be best if applicants declared any other municipal funding they have applied for.
Graham Walsh, Regional Solicitor, provided an overview of the services that the Region is legislatively mandated to provide. He explained that additionally there are services that if a municipality chooses to provide the service, there are legislative requirements in providing that service.
C. MacDonald noted that more than 70% of expenses are fully legislated or legislated with some service discretion. She highlighted that that transit services and the airport are discretionary services and stated that the more services that are provided, the more program support that is needed.
Sub-Committee members requested that an exhaustive list of discretionary services be provided. They discussed a desire to look at various areas where the Region tops up services, such as discretionary benefits and Sunnyside Home. Members further noted areas such as the Regional libraries or economic development should be listed in the discretionary funds.
Responding to questions, C. MacDonald noted that suggestions on what can be done to get under the 8% property tax increase will be brought back to the next meeting. She further noted that staff can recirculate the guide for which service resides in what area.
In response to a question from the Sub-Committee, Tim Brubacher, Deputy Clerk, noted that a poll could be circulated for potential dates for a carry over date for the next meeting.
C. MacDonald continued the presentation to address the history of provincial and federal funding.
Dr. Hsiu-Li Wang, Commissioner, Public Health & Paramedic Services/Medical Officer of Health, noted that there has been no inflationary increases to provincial funding of Public Health. She further explained that Covid-19 funding has been wound down, but stressed that additional responsibilities to look at respiratory illnesses, which were mandated during the pandemic, remain in place with no additional funding.
Regional Chair K. Redman noted a need to remind Councillors that some funding is cost shared and a cut by the Region can result in lost subsidy dollars.
The Sub-Committee discussed the need to have a new deal with the province for funding but recognized that Council will need to make the tough decisions before one is possible.
Jennifer Rose, Commissioner, Engineering and Environmental Services, spoke to capital planning and that master plans and service levels are important for asset management and capital planning. J. Rose further explained that if reserves are underfunded there will be insufficient funds for future maintenance, and that debt financing should only be used for growth and not maintenance. She stressed that projects are often interconnected and delaying one will impact other Regional, or area municipal, projects.
Chris Wilson, Manager Corporate Budgets, informed the Sub-Committee that a report on long term financial planning is planned for October and will break down debt servicing costs as a part of the budget.
Responding to questions, Mathieu Goetzke, Acting Chief Administrative Officer, stated that the budget is the stop gap for requests for funding that are brought in throughout the year. He stressed that Council needs to determine if they fit in with the strategic plan.
C. MacDonald provided an overview of the next meeting noting that it will look at potential service adjustment options, service expansion requests, and risks associated with not implementing service expansions.