1. Call to Order. 3. Mayor's Remarks - Mayor Kelly Linton Mayor Linton welcomed everyone and noted Andy Goldie, CAO is absent on. Page 1 of 8 PRESENT:

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1 Township of Centre Wellington Committee of the Whole Minutes (Operating Budget) Tuesday, January 26 & Wednesday, January 27, 2016 Council Chamber 11:00 AM PRESENT: Mayor Kelly Linton Councillor Don Fisher Councillor Stephen Kitras Councillor Kirk McElwain Councillor Mary Lloyd Councillor Fred Morris Councillor Steven VanLeeuwen REGRETS: STAFF: Manager of Legislative Services/Municipal Clerk, Kerri O Kane Supervisor of Customer Service/Deputy Clerk, Lisa Miller Managing Director of Infrastructure, Colin Baker Managing Director of Corporate Services, Wes Snarr Managing Director of Planning & Development, Brett Salmon Managing Director of Community Services, Brian Detzler Manager of Human Resources, Rick Hulley Financial Manager/Deputy Treasurer, Mark Bradey 1. Call to Order 2. Disclosure of Pecuniary Interest Under the Municipal Conflict of Interest Act Councillor Mary Lloyd declared a conflict of pecuniary interest with respect to the 2016 Community Impact Grants due to her contractual employment with a participating group, the Fergus Scottish Festival. Councillor Kirk McElwain declared a conflict of pecuniary interest with respect to the 2016 Community Impact Grants due to his association with a participating group, Sensational Elora. Councillor Don Fisher declared a conflict of pecuniary interest with respect to the 2016 Elora Business Improvement Area budget due to his ownership of property subject to the BIA levy. 3. Mayor's Remarks - Mayor Kelly Linton Mayor Linton welcomed everyone and noted Andy Goldie, CAO is absent on Page 1 of 8

2 this first budget meeting as he is supporting a close family friend due to a death. Mayor Linton clarified recent misinformation stemming from the passing of the Township s capital budget which included a 2% dedicated capital levy. He indicated the funds raised from the capital levy will only be used for preselected bridges based on the priorities established in the asset management plan. Mayor Linton indicated the draft operating budget under discussion today starts with a proposed 2.48% increase in the base tax levy, a combined total with the County of 4.48%, representing a $43.20 increase on the Township s portion of the average residential tax bill. Mayor Linton thanked the senior management team and Mark Bradey, Financial Manager/Deputy Treasurer for presenting a budget starting at a 2.48%. Mayor Linton reminded everyone of the importance of setting clear priorities and stretching the tax dollar. He indicated taxpayers want to see roads and bridges fixed, clean water and trees planted as well as safe parks for children. 4. Opening Remarks - Andy Goldie, CAO In the absence of Andy Goldie, CAO, Mayor Linton read the following statement: During our Capital budget deliberations in November we had lengthy and excellent discussions with Council. Through these meetings Council and staff together finalized, for the first time, a 3 year capital budget which is fundable, addresses the priorities set out in our Strategic Plan, and works to address our crumbling infrastructure. As staff prepared the 2016 operating budget, the entire team had serious discussions and debates about service expenditures and revenues as it was recognized Council has already approved a continuing 2% capital levy on our community. We have worked diligently to prepare for Council a very rational draft operating budget. Three specific service areas are proposing an increase in funding in 2016 due to legislative requirements: o A contract building permit position fully funded from increased building permit revenue. Staff will speak to this position. o A 9 month contract position for Source Water Risk Management Inspection as the Province has now approved the Lake Erie Source Water Protection Plan in effect July 1, In addition, two-4 month co-op students Page 2 of 8

3 will be hired to assist in this work. The positions will be funded through Provincial grants and Environmental Services user pay budgets. For future years, we are working with adjacent municipalities to consider a shared position Risk Management Inspector. Mark & Colin will further speak to this position. o Stray Animal Control, our private contractor has advised us and other area municipalities they will no longer be providing their services. Staff has been working with adjacent municipal staff to address through a contract with the Guelph Humane Society. There is a separate report on this matter, Mark and Kerri will provide further details. o One new source of funding staff has included in the 2016 draft operating budget is for new sponsorship funding. We have already begun work with a firm specializing in this work and are very optimistic we can see additional revenue beginning in o Within the proposed operating budget is the OMPF 2016 funding reduction of 15% ($91,900), this makes the total reduction from the Province of just over $1 million since o The proposed 2016 operating budget recommends a 2.48% tax increase. Without the OMPF funding reduction the proposed operating budget tax increase would be 1.65%. o When you combine the proposed operating budget increase and the 2% capital levy on the average residential property valued at $331,205, this property owner will see a Township portion increase of $43.20 in o In speaking to area CAO s and monitoring how other municipalities are faring with their 2016 budgets I would like highlight the following; County of Wellington is proposing a 2.5% increase Wellington North is at 2.8% Erin is working at 4% with majority towards increase in capital spending Puslinch is at a total of 5.12% with 3.98 of that for capital Guelph Eramosa is at 2.9% blended Mapleton is at 6.6% Minto is at 4.9% unblended Guelph approved at 2.99% increase and is currently exploring a 2% capital levy Waterloo Region approved a 2.96% increase City of Waterloo is working around a 2.7% increase City of Kitchener approved a 1.46% increase plus 9.8 water & wastewater increase Stratford approved a 2.73% increase Page 3 of 8

4 Cambridge approved a 3.01% increase o And finally, I want to thank staff who have worked diligently on this years operating and capital budget. There has been a lot of detailed work in reviewing our service costs and our financial needs and there has been excellent discussions of new ways to tackle our future in all areas of the organization. A special thanks to Mark Bradey for leading the 2016 discussions internally and with Council. 5. Budget Overview Analysis of tax levy 5.1 Overview of the budget process and characteristics Mark Bradey, Financial Manager/Deputy Treasurer provided an overview of the proposed 2016 operating budget, including general budget information, operating budget facts, funding challenges, OMPF funding reduction, contributions to capital, impact areas, and the impact on the Township s portion of the tax levy. M. Bradey noted additional budget meetings held and consultation undertaken with Council and the community, including pre-budget meetings held on October 13th and November 9th, 2015 and a Town Hall meeting in Aboyne on November 19th, Tax Supported Operating Budget 6.1 Comments regarding 2016 Draft Budget Mark Bradey, Financial Manager/Deputy Treasurer provided an overview of the significant issues impacting the 2016 draft tax supported operating budget which included; the Ontario Municipal Partnership Fund (OMPF), transfers to equipment and vehicle lifecycle reserves, wages and benefits expenditures, hydro and water expenditures, gravel resurfacing, stray animal control, investment revenue, snowplow and snow removal at the Fergus Riverlands parking lot, alternative source of revenue, relocation of the Tourism office to 10 East Mill Street, Elora, and increased repair and maintenance costs at the Sportsplex. M. Bradey outlined additional information, including a warning that users of the draft budget document are cautioned that developing assumptions based on the 2015 actual amounts presented could lead to materially incorrect conclusions. He noted the proposed tax increase is 2.48% ($23.64) plus an increase to the dedicated capital levy equal to 2% ($19.56) for a total tax increase of 4.48% ($43.20) 6.2 Questions from Council Page 4 of 8

5 Staff responded to questions regarding the choice of municipal comparators for wage studies, the history behind the percentage of the residential tax bill allocated to the County of Wellington, and the increase to the stray animal control services and expenditures. After a brief recess, Committee members continued review of the draft budget. Discussion ensued regarding the Mayor and Council, conferences/training/communications line item and policies regarding use of annual surpluses. Staff responded to questions and provided information regarding the job evaluation pay grid, performance appraisals and incremental grid movements by staff, policy regarding capping of reserves, and the recovery of motor vehicle responses and burn permits. A five minute recess was called, the meeting resumed at 4:00 p.m., with the Transportation Services draft budget. Staff responded to questions and provided clarification regarding the addition of an engineering position to offset contracted engineering costs, review of planning and development procedures to find efficiencies and streamline processes, costs for leaf and debris pickup and tree removal. Staff responded to questions regarding rental fees to reflect full cost recovery for large events, use of soccer fields, the cost of revitalizing older parks, and the purpose of the greenhouse. Moved by Mayor K. Linton, Seconded by Councillor M. Lloyd THAT the Council of the Township of Centre Wellington supports entering into an agreement with the Guelph Humane Society for animal control services; AND FURTHER THAT staff adjust the Fees and Charges by-law to reflect a fee increase to $35.00 effective March 1, Delegations Councillor Don Fisher, having declared a conflict of interest with respect to the Elora BIA budget, did not participate in the discussions. 7.1 Fred Gordon, Administrator Elora Business Improvement Area (BIA) Page 5 of 8

6 Fred Gordon, Administrator, Elora BIA presented the draft 2016 budget. He noted the 2016 BIA executive and outlined the accomplishments in 2015, including the expansion of the Elora sculpture program, the partial purchase of new planters, the continued repayment of the green space loan, increased marketing and event planning, starlight shopping promotion and social media. He also outlined the goals for 2015 and the requirement for a 2% increase to the levy. Fergus Business Improvement Area (BIA) Janette Gajic, Chair, Fergus BIA appeared before Council to present the 2016 budget for the Fergus BIA. J. Gajic provided highlights of 2015 and noted there would not be an increase to the levy this year. She outlined beautification initiatives and marketing and event planning for the upcoming year Moved by Councillor K. McElwain, Seconded by Councillor F. Morris THAT the Council of the Township of Centre Wellington accepts the Elora Business Improvement Area budget as proposed. 7.2 Moved by Councillor S. Kitras, Seconded by Councillor K. McElwain THAT this meeting be adjourned to reconvene on Wednesday, January 27, Call to Order (January 27, 2016) On January 27, 2016 at 10:00 a.m., Mayor Linton welcomed everyone to the second day of budget deliberations. Declarations of pecuniary interest were reiterated as outlined on January 26, Tax Supported Operating Budget Continued Committee members continued review of the draft operating budget starting with the proposed Victoria Park Seniors Centre budget. Councillor Kirk McElwain joined the meeting at 10:31 a.m. Committee members discussed at length the direction and focus for Economic Development and a strategy to address issues such as investment in the work Page 6 of 8

7 force, attracting new businesses, development of incubators, marketing, partnerships with the County and area municipalities, etc. Committee members indicated they would like staff to provide a report outlining an economic development strategy moving forward. A ten minute recess was called, the meeting resumed with discussions with respect to a document circulated by M. Bradey listing the past operating budget surpluses/deficits since Discussions continued regarding operating surpluses, low interest investments, and internal funding options. 10. User Pay Supported Operating Budget - Water & Sewer 10.1 Overview of the Budget M. Bradey, Financial Manager/Deputy Treasurer provided an overview of the user pay operating budget and responded to questions. 11. Tax Supported & User Pay Capital Budgets 11.1 Overview of the 2016 Capital Budget adopted by Council December 14, 2015 M. Bradey, Financial Manager/Deputy Treasurer provided a brief overview of the 2016 Capital Budget adopted by Council on December 14, Vehicle & Equipment Replacement Schedules 12.1 Staff responded to questions regarding the effects of the low Canadian dollar on equipment purchased in Canada but manufactured in the United States, and diversifying the park equipment purchased to appeal to all age groups Year Capital Forecast 13.1 Overview of the 10-year Capital Forecast adopted by Council December 14, 2015 M. Bradey, Financial Manager/Deputy Treasurer provided a brief overview of the 10-year Capital Forecast adopted by Council on December 14, Other Schedules 14.1 Staff responded to questions regarding the water meter repair and Page 7 of 8

8 replacement reserve, the purpose of the working capital, contingency, and wpd reserves Grant Applications Councillors McElwain and Lloyd, having declared pecuniary conflicts of interest with respect to the 2016 Grant Application, did not participate in the discussions nor did they vote on the next matter Township Community Impact Grant Approvals Report from M. Bradey, Financial Manager/Deputy Treasurer dated January 26, 2016 M. Bradey, Financial Manager/Deputy Treasurer provided an overview of the report and responded to questions regarding the current scoring system and the implementation of a new graduated scoring system. Moved by Councillor F. Morris, Seconded by Councillor D. Fisher THAT the Council of the Township of Centre Wellington approves the grant allocations as outlined in Appendix A to Report COR , dated January 26, After a lengthy discussion, Committee directed staff to bring back to the February 2, 2016 meeting, amendments to the draft operating budget to bring the tax rate below 2%. 17. Adjourn Moved by Councillor S. Kitras, Seconded by Councillor S. VanLeeuwen THAT the meeting adjourn. Mayor Municipal Clerk Page 8 of 8