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2004/11/01 CORPORATE SERVICES COMMITTEE AGENDA THIRD MEETING Monday, November 1, 2004 Council Chambers -6:00 p.m. 1. Minutes of the September 20, 2004 Meeting 2. Deoutations re 2005 Fundino: Recreation Committee Arts and Culture Committee GNGH Foundation Humane Society Board of Museums 3. Reports: Staff Contact CPS-2004-07 - 2005 Municipal Utility Budget Discussion Tony Ravenda CPS-2004-08 - 2005-2009 Capital Projects Budget Discussion Tony Ravenda CPS-2004-09 - Debt Management Tony Ravenda 4. Communication: Donation Request from the Niagara Falls Coin Club 5. New Business Adjournment ~2- 2. NEW BUSINESS: MOVED by Alderman Volpatti, seconded by Alderman Kerrio that the letter from a Member of the Library Board be referred to Staff. Alderman Volpatti brought up the subject that a donation of books was made to the library. The donor requested a tax receipt. It is library policy to give receipts for cash donations only. The matter was referred to Staff. Motian Carried UnanimouslF 3. ADJOURNMENT: MOVED by Alderman ¥olpatti, seconded by Alderman Morocco, that the meeting adjourn at 7:15 p.m. Motion Carried Unanitnouslv ~C~ Date: 20-O~-20~ ~me: 2:~pm GENE L PURPOSES BUDG For Period Ending 31-Dec-2005 C~ OPE~NG FUND 20~ 2005 $ VA~NCE % VA~NCE 20~ 20~ $ VANCE % VANCE BUDG~ BUDGET Mo~ (~) ~an ~o~ (Le~) ~n BUDG~ A~AL (Mo~) ~ than (Mo~) ~ ~an HA~A~ 13,550 12,100 (~,450) (10.70) 13,550 2,730 10,820 7g.86 PERSONNEL D~ELOPHENT 2,000 2,000 0 0.00 2~000 0 2,000 100.00 TO~ EXPENSE Z5~550 Z4~Z00 (Z~50) (9.32) ZS~S50 2~730 Z~820 82,45 To~l C~ OPEniNG FUND C*rTy OF NZAGARA FALLS ~C~/0~~,~kl ~L~I*:I.u Page: GENERAL PURPOSES BUDGET Date: 20-Oc~-2004 Time: 3:45 0m For Period Ending 3Z-Dec-200$ CZTY OPERATZNG FUND 2004 2005 $ VARIANCE % VAR/ANCE 2004 2004 $ VARIANCE °k VAR/ANCE BUDGET BUDGET More (Less) than More (Less) than BUDGET ACTUAL (More) Less than (More) Less than CC1 CC2 2004 Bgt 2004 Bgt 2004 Bgt 2004 Bcjt EXPENSE OTHER RECREA1/ON PROGS EXTERNAL TRANSFERS 345,650 345,650 0 0.00 345,650 275,595 70,055 20.27 Total EXPENSE 345,650 345~650 0 0.00 345~650 275~595 70,05S 20.27 Total CI*TY OPERATZNG FUND 345,650 345~650 0 0.00 345,650 275,595 70,055 :20.27 RECREATION COMMITTEE 2005 GRANT APPLICATIONS Boys & Girls $191,900.00 $210,000.00 $210,000.00 $210,000.00 Club Niagara Falls $5,000.00 $5,000.00 $20,000.00 $5,000.00 Badminton, Tennis & Lawn Bowling Club Niagara Falls $800.00 $800.00 $800.00 $800.00 Horticultural Society Niagara Falls $3,000.00 $2,000.00 $2,000.00 $2,000.00 Lightning Gymnastic Club Niagara Falls $4,000.00 $4,000.00 $4,000.00 $4,000.00 Lawn Bowling Club Niagara Falls $15,800.00 $15,800.00 $15,800.00 $15,800.00 Summer Playground -2- Niagara Falls 12,400.00 $12,400.00 $12,400.00 $12,400.00 Summer Swim Lessons Stamford 3,550.00 $3,550.00 $3,550.00 $3,550.00 Lions The Family $90,000.00 $90,000.00 $90,000.00 $90,000.00 Y.M.C.A. Pool 2,100.00 Pool 2,100.00 Pool 2,100.00 2,100.00 of Niagara Rental 92,100.00 Rental 92,100.00 Rental 92,100.00 $92,100.00 Falls Date Revised: October 5, 2004 H:~WPF1LE~Grantsl2005 GIL4NT RC. SUMM. wpd CZTY OF NTAGARA FALLS 11~(~0(j~,~ GL5410 Page: i' GENERAL PURPOSES BUDGET Date: 21-Oct-2004 Time: ~.0:09am For Period Ending 3Z-Dec-200S CZTY OPERATZNG FUND 2004 200S $ VARIANCE % VARIANCE 2004 2004 $ VARZANCE % VARZANCE BUDGET BUDGET More (Less) than More (Less) than BUDGET ACTUAL (Hot*e) Less than (Hore) Less than CC1 CC2 2004 Bgt 2004 Bgt 2004 Bgt 2004 Bgt EXPENSE ARTS AND CULTURE CMTE MATERIALS 12,100 15,450 3,350 27.69 12,100 3,224 8,876 ~ 73.35 Total EXPENSE 12,100 1S~SO 3,350 27.69 12~100 3,224 8~876 · · 73.35 Total cTrY OPERA1/NG FUND 12,100 15,450 3~350 27.69 12,100 3~224 8~876 73.35 C][TY OF NTAGARA FALLS ~EC~O(II,~k~ ~cs4zo Page: GENERAL PURPOSES BUDG~ Da~: 20-O~-2004 Time: 2:45 Dm For Period Ending 31-Dec-2005 C~ OPEniNG FUND 2~ 2005 $ VA~NCE ~o VA~NCE 20~ 20~ $ VA~NCE ~ VA~NCE BUDG~ BUDG~ HO~ (~) ~an Hore (L~) ~an BUDGET A~UAL (Horn) ~an (Horn) ~ ~an CC1 CC2 20~ ~t 20~ ~t 20~ ~t 20~ ~t EXPENSE O~ER CULTU~L SRVS ~AL ~NSFER5 4,000 4,000 0 0.00 4,0~ 4,000 0 0.00 To~l ~PENSE 4,000 4;000 0 0.00 4,000 4,0~ 0 0.~ TO~I C~ OPEniNG FUND 4,000 4,000 0 0.00 4,000 4~000 0 0.00 Arts and Culture Committe Anual Report January 2003 - June 2004 The purpose of the Arts & Culture Committee is to foster, develope and unite artistic and cultural activities in the community. In my own life I have taken this goal a step further. Everything I do within the committee is to foster civic pride through artistic and cultural activities. When the tourist says to the resident how lucky they are to live by the Falls, I always imagine the response to be, "Are you kidding? We have something better than the Falls. We have people! with heart and talent! From Nathanial Dett in pioneer days to our Wave boys of today, we have had world famous song writers in this city for over a hundred years. We have Mike Stranges apologizing to the city when he lost the olympics when it was obvious that it wasn't his fault. During the war of 1812 we have had people fighting and dying in our street for our freedom! We are disappointing these people every time we do less than our best. I would like to inform you of the activities of our committee for the year 2003 plus the 6 month extension waiting for our new committee structure and members. Karen Akalu, chair Our Awards committee has · for 2003 & 2004 contributed 240 certificates of achievement to the Kiwanis Music Festival · presented certificates to the Paintout winners · presented plaques to citizens with provincial or national standing · gave 13 awards from the Young Family Endowment Fund Our Planning committee has · updated the goals and committee structure of our strategic plan of 1996 Our Program and Public Relations Committee has · hosted 2 Networking Nights for our community groups · produced two 8 page issues of the Artscene per year in the Leisure Guide · reconstructed and doubled the information on our website artsceneniagara.org · recruited singers for the National Anthem for council nights · updated our computer system · produced the Friends of Lundy's Lane Battlefield newsletter · ongoing assistance with Friends of the Stanford Village Market on the Green publications As a whole the Arts & Culture committee · participated in the Battle of the Bands in 2003 & 2004 · contributed to and co-hosted Volunteer Recognition Night · produced a Christmas CD of 26 tracts 'A Niagara Falls Christmas Tapestry' promoting the talent of up to 300 Niagara Falls residents. · sent a delegation to our provincial convention in Kitchener · had a representative on the Armory cormmttee, The Commemorative Wall Committee & The Heritage Master Plan Committee · motion to support the Niagara Falls Art Gallery's proposal for a community art centre · held a committee meeting at the Riverbrink Art Gallery as an outreach effort · spent an evening ofinterspective assessment through the True Colours Program · sponsored the Twilight Tuesday and Historical Walk flyers · brought forwarded and evaluated many great and wonderful ideas Expect an exciting & growing future for our arts & culture community ! Arts & Culture Committee 2005 Budget - Revised October 20, 2005 Planning Subcommittee $ 500.00 Awards Subcommittee $1,000.00 - plaques - certificates Program & Public Relations $11,950.00 - Artscene $2000.00 - Wall of Fame 1750.00 - Wall of Fame Launch 500.00 - Brochure (art/film/printing) 2000.00 - Mural Project(s) 1500.00 - Advertising 2000.00 - Conferences 1500.00 - Film & Processing 500.00 - Registration & Memberships 200.00 Volunteer Recognition Evening $ 2,000.00 TOTAL BUDGET $15,450.00 Revisions include "Artscene" published in the Leisure Guide 2 times per year. FOu N DATION -- PARTNERING WITH OUR COMMUNITY FOR A HEALTHIER NIAGARA -- October 19, 2004 Mr. Ken Burden Director of Finance The City of Niagara Falls 4310 Queen Street P.O.Box 1023 Niagara Falls, ON L2E 6X5 Dear Ken, Thank you for your recent letter and on behalf of the Greater Niagara General Hospital, I am pleased to enclose our request for funding for 2005. This year we are asking the City to consider another grant of $100,000 for the redevelopment of the Hospital's Emergency Department. Specifically we are asking for your help with the purchase of new and replacement medical equipment. During the past year with The City of Niagara Falls' help, we have raised an additional $775,000 towards our Community goal of 56.7 million. That brings our achievement to date to $5,340,000, but we still have $1,360,000 or roughly the cost of the new equipment, yet to raise. We have also made significant progress in obtaining approvals and moving the project forward. We now expect to call for tenders in December and to begin construction of the ER early in the new year. We would, of course, be happy to attend the meeting of the Corporate Services Committee when they review our request on November 1, 2004. In the mean time, thank you again for your letter and for everything that The City of Niagara Falls has made it possible for us to do for the residents of our commtmity. Sincerely, Executive Director GREATER NIAGARA G~ HOSPITAL FOUNDATION Mailing Address: £O. Box 1018. Niagara Falls, Ontario, Canada 1~2E 6Y,2 Telephone 905-358-4900 · Facsimile 905-358-7443 "OUR ER NEEDS AN EMERGENCY RESPONSE" A FUNDING PROPOSAL prepared for: THE CITY OF NIAGARA FALLS on behalf off GREATER NIAGARA GENERAL HOSPITAL FOUNDATION Niagara Falls, ON October 2004 ER Funding Proposal Table of Contents EXECUTIVE SUMMARY THE CASE The ER at the Greater Niagara General Hospital is cramped, inefficient and outdated. This is bad for patients and worse for staff. Thirty years ago, the GNGH Emergency Department was built to handle 25,000 patient visits a year. Today, it handles over 50,000. The result? Patient care is close to being compromised. And it will only get worse as our population grows and ages. "The ER should be the strongest part of our emergency system, but it's becoming our weakest linl~ ' Jim Hunter, Niagara Falls Fire Dept. Worse still, our ER is understaffed. The equipment is outdated and its morale is low and sinking. Burnout is creating high tumover. Little wonder, it's hard to recruit new doctors and nurses. Yet, through it all our staffhas performed well and often heroically. We've made do with what we've got. But it can't continue. "The doctors, nurses and staff wouldn 't be here if they didn't care extraordinarily for their patients. But now we have to give our professional staff the support they deserve to keep doing their job well" Jeff Morgan, former ER Campaign Chair The people of Niagara Falls, the government of Ontario and the hospital itself all agree that we deserve better and have a plan to give the ER the emergency response it needs. The plan will see ER space double from 8,700 to 18,000 square feet. We'll be able to handle 65,000 patient visits a year. Our new ER will include state-of-the-art layout and design, full monitoring and life support systems, plus treatment rooms for major and minor trauma and a fast-track treatment room for non-urgent patients. "For people in Niagara Falls, this is their hospital of choice -I've had patients refuse transport rather than be taken to another ER." · ~ .. Tim Kares, Niagara EMS 2 ER Funding Proposal ~..~- ;" ~'~' - Table of Contents THE COST The new ER will cost $21 million to build, renovate and re-equip. Already, Queen's Park and the Niagara Health System together have pledged $14.3 million. This leaves $6.7 million to come from us: the men, women and families who call Niagara Falls our home. Construction begins in early 2005 and will be finished a year later. The new ER will be built in two phases to ensure that Emergency Response services are available 24 hours a day every day of the year. "Our equipment is quite old. It's been retrofitted over the years and quite frankly, it doesn't work all the time." Dr. Brian Dalgleish, ER Physician THE CAMPAIGN FOR THE NEW ER The campaign for the new ER is well underway. To date, gifts and commitments totaling over $ 5,340,000 including $300,000 from the City of Niagara Falls, have been received. That leaves $1.36 million, or roughly the cost of the new equipment, yet to be raised. Our new ER will be much more efficient, secure and pleasant. It will be less stressful to work in and to visit. In short, it will be everything the existing ER isn't and nothing that it is. OUR REQUEST Most important, it will be built. But it will demand your help, your generosity and your continued support. In fact, we are asking you to renew your $100,000 donation again this year to help with the purchase of much needed equipment for our ER doctors and nurses. Yes, this is a lot to ask. But the need is great. And the cost of doing nothing when lives are at stake every day, is simply unacceptable. That is why we're confident we can count on your continued support at a time when our ER demands an emergency response. Thank you for coming this far with us. "Finally, the people of Niagara Falls will get the very best facilities, equipment and the medical technologies that we deserve. ' Karen Tribble, Site Administrator GNGH 3 ER Funding Proposal Table of Contents Executive Summary The Case 2 The Cost 2 The Campaign for the New ER 2 Our Request 2 The Case Introduction 4 The Problem 4 The Solution 5 Cost 6 Commitments Received to Date 6 Our Request The City of Niagara Falls' Role 7 Appendices Appendix I: Partial Equipment List 9 Appendix II: Artist's Concept 11 Appendix III: Floor Plan 12 Appendix IV: GNGH Board of Directors 13 The GNGH Foundation 5546 Portage Road P.O. Box 1018 Niagara Falls, ON L2E 6X2 905-358-4900 Charitable Business No. 11923 5885 RR0001 4 ER Funding Proposal The Case BACKGROUND "In 1985, consultants told us we were already vastly undersized for the number of people we were seeing then and here we are 17years later and we still don't have that facility to provide the care we need for the people of Niagara Falls. ' Dr. Doug Munkley, ER Physician Imagine you run a small company that's been created to serve 25,000 people annually. Without any real changes, that is without increasing your staff or operating budget, you must now make it serve 56,000 people. Worse still, in a few years, the population will increase and you must then make it serve 65,000 people. Because you have no more space or resources, you improvise, using a number of band- aid solutions. You ask your staff to constantly improvise, to be flexible, to continually go above and beyond. This is what the Emergency Department at the Greater Niagara General Hospital has to cope with every day. What hangs in the balance is not profits or customer satisfaction, but far too often, human life. Not surprisingly, the size of the current facility imposes constant limitations on the staff and impacts on their ability to care for their patients. Often, there is simply not enough room for the patients, the monitoring equipment and the staff at the same time and in the same space. As a result, patients frequently have to be moved around the ER according to the procedure or test they are having right then and this results in additional stress, discomfort and delays in providing appropriate treatment. "The sad truth is people can walk in off the street and disrupt the workings of the department... They can physically and verbally abuse the staff, which is, in fact, an ongoing and almost daily occurrence." - Dr. Brian Dalgleish, ER Physician The cramped conditions affect both the patients' and the medical staff's morale. Our ER is a noisy, crowded and unattractive place. Such surroundings have a negative impact on everyone· Too often, the professional staff is unable to use their knowledge and expertise to the fullest extent because they are lacking modern equipment and technology. This is no one's fault. The reality is that the role of emergency medicine has changed dramatically since 1973 and our population has grown as well. With the decrease in the number of family doctors in the region and the increase in our population (particularly the number of older residents), the ER now plays a much larger role in the delivery of health care in our community. Also, there have been extraordinary advances in emergency medicine and patient care over the last 30 years. 5 ER Funding Proposal The Case But there is good news on the horizon. A real and lasting solution has been developed for the challenges facing our hospital and a plan is in place. All that's required is the funding to implement it. The ER will be enlarged as soon as possible - not just to meet the current demand of 56,000 patient visits annually, but to meet the future demand of 65,000 visits a year. This means the size of the ER will have to double, from 8,700 to 18,000 sq. fi. THE NEW ER "A new and expanded ER would help us immensely. We would be able to treat patients in a more timely fashion and take care of them much more effectively then we are now." -Marlene Caldwell, ER Charge Nurse The hospital's redevelopment plan calls for the new ER to be built within the space currently occupied by the administrative offices and Day Surgery department. In addition, there will be 9,300 sq. ft. of new construction. By building an entirely new ER, in addition to the existing facility, the hospital will be able to achieve two critical objectives: ·Build without any interruption to Emergency Services, which operate 24 hours a day, seven days a week, 365 days a year. ,, Incorporate the most up-to-date design standards, including space and layout for all necessary equipment. The new ER will incorporate solutions to the many challenges that our staff constantly faces in the existing ER. The chronic problems of crowded space, inefficient layout and no security will be remedied. Most important, the new ER will focus on the needs of its patients - providing an environment that is designed to help them in the most timely and appropriate way possible and all with regard for their comfort, safety and dignity. Our ER needs an Emergency Response. Indeed, the time for the ER to catch up to the 21st century is long overdue. FEATURES · State-of-the-Art layout and design · Treatment and Observation Rooms with built-in monitoring and patient support systems · Major and Minor Trauma Units · Fast Track treatment rooms for non-urgent patients · Mental Health Crisis Intervention room · Increased privacy, security and confidentiality for all 6 ER Funding Proposal Our Request BUDGET Capital Cost: Total $ 21,000,000' Cost of equipment 1,650,000 Construction Cost $19,350,000 Source of Funds: Ministry of Health contribution (70% of construction cost) 13,545,000 Niagara Health System 755,000 Balance to be raised $ 5,050,000 Plus: Cost of new equipment 1,650,000 PUBLIC CAMPAIGN GOAL $ 6.700.001) * The cost has increased from an initial estimate of $12.5 million in 2002 to approximately $21 million in 2004. This increase is largely attributed to the changes in design that were necessitated by the S.4RS outbreak in 2003 and a chemical spill that threatened to shut down the hospital. As a result of these changes, the community's share orpublic campaign goal has increased from $4.5 to $6. 7 million. COMMITMENTS RECEIVED Major Gifts: GNGH Auxiliary $ 750,000 Casino Niagara $ 600,000 Niagara Health System $ 500,000 City of Niagara Falls $ 300,000 The Branscomb¢ Family Foundation $ 250,000 The DiCosimo Family $ 250,000 The Robert Gale Family $ 250,000 Maid of the Mist $ 250,000 The Oakes Family $ 150,000 Canadian Tire Group of Companies $ 100,000 Club Italia $ 100,000 Ontario Power Generation $ 100,000 Cytec $ 75,000 $ 3,675,000 Other Gifts 1.662,027 TOTAL TO DATE $ 5.337.027 * * In December, 2003 (the date ofourprevious submission) the ER Campaign had achieved a total of $ 4,562,000. ER Funding Proposal Our Request TIlE CITY OF NIAGARA FALLS' ROLE In the past, the City of Niagara Falls has generously supported their community hospital and we are most grateful for your help. In total, the City has donated $400,000 to the hospital over the past four years, $300,000 of which has been directed towards the redevelopment of the Emergency Department. We hope that you will now continue your support of our hospital's priority needs. That is why we are requesting your consideration of another gift of $100,000 to assist with the purchase of new medical equipment for the doctors and nurses in the Emergency Department. Your continued support will contribute significantly to the success of the campaign not just in terms of the dollars involved, but also by providing a standard of generous support for others to follow. And in addition to the impact that it will have on the success of our campaign, it will also help virtually every family in Niagara Falls - and not just in a tangential or minor way - but in the most important way possible: by saving lives and preventing serious health crises. We thank you for your consideration of our request and we look forward to ensuring that your gift provides the greatest possible benefit for the greatest number of people. Once again, thank you. "There is no doubt in my mind that having new, state-of-the-art equipment and medical technologies will improve the care our patients receive." - Dr. David Turineck, ER Physician APPENDICES: 9 ER Funding Proposal Appendix I: Partial Equipment List PRIORITY EQUIPMENT PURCHASES: For the Emergency Department: Radiology (X-Ray) Equipment $150,000 X-Ray film Processor 60,000 Medication Distribution System 109,000 Central Monitoring Equipment 67,700 Patient Monitors (11 replacement units) 198,000 Defibrillators (2) 48,000 $ 632,700 For the Ambulatory Care Centre (Day Surgery) Medication Distribution System $ 66,000 Defibrillators (2) 48,000 Electrosurgical Units (3) 21,500 Warming Cabinet 6,000 141,500 Total: 10 ER Funding Proposal ~4ppendix II: ~4rtist's Concept Artist's Concept showing new Ambulatory Care Centre (View from Portage Road and North Street) 11 ER Funding Proposal Appendix III: Floor Plan New Day SUrgery New Emergency 12 ER Funding Proposal Appendix III: Board of Directors Mr. A1 Luciano, Chair Mr. Robert Gale 3060 Portage Road, Unit 104 4388 Portage Road Niagara Falls, ON Niagara Falls, ON Mr. John Beyer, Vice-Chair Dr. Fred Halliday, Founder 1 - 289 St. Paul 5546 Portage Rd. Niagara Falls, ON Niagara Falls, ON Mrs. Joyce Morocco, Vice-Chair Ms. Carol Maidens 7352 Lakewood Crescent 8199 Sarah St. Niagara Falls, ON Niagara Falls, ON Mr. Leo Gautreau, Secretary-Treasurer Mr. Edward Masters, Founder 7689 Mount Cannel Blvd. 3241 Montrose Rd. Unit 15 Niagara Falls, ON Niagara Falls, ON Mr. Eugene Oatley, Past Chair Mrs. Margaret McWhirter 6270 Brookfield Avenue 6985 Valiant Street Niagara Falls, ON Niagara Falls, ON Dr. William Ainslie Ms. Laura Menechella GNGH Chief of Staff 6740 Oakes Drive 5546 Portage Road Niagara Falls, ON Niagara Falls, ON Dr. K. Reddy Mr. Lewis Beaudin, Founder President, Medical Staff Association 5100 Dorchester Road, Unit 710 6453 Morrison Street Niagara Falls, ON Niagara Falls, ON Mr. Jeffrey Cmickshank Ms. Karen Tribble Executive Director, GNGH Foundation Site Administrator 3241 Montrose Rd. Unit 17 Greater Niagara General Site Niagara Falls, ON 5546 Portage Rd. Niagara Falls, ON Mrs. Sue Forcier 4310 Queen St. Niagara Falls, ON 13 NIAGARA FALLS HUMANE SOCIETY 6025 Chippawa Parkway, Niagara Falls, Ontario L2E 6X8 Telephone (905) 356-4404 Fax (905) 356-7652 Incorporated April 8, 1937 October 20, 2004 Ken Burden Director of Finance City of Niagara Falls 4310 Queen St. PO Box 1023 Niagara Falls, Ont. L2E 6X5 Dear Ken: Please find enclosed our fee for service submission as requested. You will see that the fee for canine control services this year is .$440,645 based on the standing contractual agreement and present by-laws. As you are probably aware there is a good possibility that the Provincial Government will be passing legislation to ban pit bulls. When this occurs I anficipote a very significant impact on our services. Therefore, I would like to inform you that any services associated with or as a result of this legislation will be over and above the service(s) we provide now. Obviously there will be increase fees for service involved, which we can discuss once the entire scope of the legislation is known. As well we have recently submitted a consolidated and improved by-law for animal services in Niagara Falls, which may have an impact on the fee for service. I am presently unsure if there will be a representative aJ the meeting on Nov. 1,t. If it is in the afternoon I will be able to attend, however I have another commitment in the evening. Sincerely, Valorie Brown General Manger cc. 1. Ravenda "WE SPEAK FOR THOSE WHO CANNOT SPEAK FOR THEMSELVES" www. niagarafallshumane$ociel)/.corn NIAGARA FALLS HUMANE SOCIETY BUDGET 2005 REVENUE 2004 Estimated Item Actual 2005 budget Municipal AC Contract 406,124 440,645 Tdllium Grant 29,078 20,000 Total Humane Services 108,192 105,600 Total Licensing 38,783 41,550 Total Boarding, Cremation & Pound 60,872 62,930 'otal Other Revenue 14,930 15,640 TOTAL REVENUE 657,979 686,365 EXPENSES 2004 Estimated item Actual 2005 budget Canine Control, Humane, Licences 64,031 64,027 Total Payroll Expense 403,899 468,600 Total General & Admin. Expanses 146,940 164,221 TOTAL EXPENSE 614,870 696,848 INET INCOME I 43,109 I' 10,483 City of Niagara Falls Board of Museums Proposed Budget 2005 2004 2005 Board of Museums Receipts Municipal Grant 3,879.00 3,879.00 Total Receipts 3~879.00 3~879.00 Disbursements Secretary's Wages 1,187.00 Postage, Office Supplies 567.00 567.00 Miscellaneous 125.00 125.00 Advertising 2,000.00 3,187.00 Total Disbursements 3~879.00' 3,879.00 Lundy's Lane Historical Museum Receipts Provincial Grant 13,500.00 13,500.00 Municipal Grant 140,912.39 148,468.00 Summer Career Access 2,761.00 3,150.00 Revenues 11,500.00 11,500.00 Total Receipts 168,673.39 176,618.00 Disbursements Curatorial Wages 118,091.25 121,634.00 Reference Material 200.00 200.00 Cataloguing Supplies 150.00 150.00 Training and Conferences 500.00 500.00 Administration Receptionist/Registrar Bookkeeper 3,100.00 3,100.00 Office Supplies 2,500.00 3,500.00 Memberships 400.00 400.00 Research Materials 200.00 200.00 Staff Training and Development 200.00 200.00 Summer Career Access 4,500.00 4,500.00 GST Paid Website Development 300.00 300.00 Campbell Research Room 300,00 700.00 OperafinR Costs Telephone / Directory 2,000.00 2,000.00 Hydro 4,950.00 4,950.00 Heat and Fuel 4,960.00 4,950.00 Water 528.00 528.00 Advertising 3,500.00 4,500.00 EHT / WSIB 2,762.75 2,846.00 CPP / UIC 8,266.39 8,515.00 OMERS 3,000.00 3,100.00 Maintenance Structural Trades 600.00 600.00 Cleaning Staff 1,600.00 1,600.00 Janitorial Supplies 500.00 500.00 Conservation Supplies and Equipment 500.00 750.00 Outside Conservator 300.00 300.00 Displays and Exhibits Displays and Backgrounds 400.00 420.00 Fabrics and Installation 400.00 400.00 Graphics 400.00 400.00 Educational Programs 1,000.00 2,000.00 Public Programming 400.00 700.00 Salesware Pumhases 2,000.00 2,000.00 Sales Tax Remitted 175.00 175.00 Total Disbursements 168,673.39 176~618.00 Willoughby Historical Museum Receipts Provincial Grant 3,100.00 3,777.00 Municipal Grant 49,693.00 60,161.60 Summer Career Access 0.00 0.00 Revenues 1,700.00 1,700.00 Total Receipts 54,493.00 651638.60 Disbursements Curatorial Wages 41,357.00 51,402.60 Reference Material 100.00 100.00 Cataloguing Supplies 350.00 350.00 Training and Conferences 200.00 200.00 Administration Bank Charges 60.00 60.00 Office Supplies 650.00 1,000.00 Memberships 120.00 200.00 Postage 200.00 200.00 Mileage and Trucking 100.00 100.00 Staff Training and Development 200.00 200.00 Summer Career Access 0.00 Office Equipment Repairs and Mtc. 250.00 250.00 Photocopier Contract 240.00 Operatin.q Costs Telephone / Directory 1,300.00 1,300.00 Hydro 150.00 150.00 Heat and Fuel 1,850.00 1,850.00 Water 220.00 220.00 Advertising 600.00 1,000.00 WSIB 165.00 170.00 CPP / UIC 4,156.00 4,281.00 Maintenance Structural Trades 250.00 250.00 Cleaning Staff 150.00 150.00 Janitorial Supplies 75.00 75.00 - Equipment - mechanical &security 350.00 350.00 Conservation Supplies and Equipment 300.00 500.00 Outside Conservator Displays and Exhibits Displays and Backgrounds 200.00 200.00 Other Misc. 40.00 40.00 Honourarium 100.00 100.00 Educational Programs 200.00 200.00 Salesware Purchases 500.00 500.00 Sales Tax Remitted Total Disbursements 54,193.00 Battle Gru~ Wages 37.492.00 38,617.00 UE 1,087.27 1,120.00 WSIB 134.97 139.00 EHT 742.15 765.00 CPP 1,537.17 1,583.00 Advertising 500.00 Utilities Phone 500.00 500.00 Hydro 932.00 932.00 Gas 3,052.07 3,052,07 Water 1,255.00 1,255.00 Administration Office Supplies 700.00 700.00 Artifacts Conservation Supplies 500.00 500.00 Displays 200.00 200.00 Acquisitions 1,000.00 1,000.00 Educational Programs 300.00 300.00 Maintenance Cleaning Supplies 200.00 200.00 Cleaning Staff Equipment Total 49,632.63 51363.07 Grand Total Receipts 22__7,045.39 29__7~498.67 Grand Total Disbursements 276,378.02 297,498.67 Grand Total Municipal Grant 244,117.02 263,871.67 Corporate Services Department CPS-2004-07 Human Resources Tony Ravenda 4310 Queen Street Executive Director The City of ~i~ P.O. Box 1023 Niagara Fa,,slm Niagara Falls, ON L2E 6X5 Canad web site: www,city.niagarafalls.on,ca ~j~~T'~ Tel: (g05) 356-7521 Fax: (905) 356-2016 E-mail: travenda@city.niagarafalls.on.ca November l, 2004 Alderman Wayne Campbell, Chair and Members of the Corporate Services Committee City of Niagara Falls, Ontario Members: Re: CPS-2004-07 - 2005 Municipal Utility Budget Discussion RECOMMENDATION: For the information of the Corporate Services Committee. BACKGROUND: The 2005 budget process will include several discussions as outlined in the 2005 Budget Schedule. A final budget review and approval of the water sewer rates will occur on December 6. CONSUMPTION AND SERVICE RATES In previous years' budget discussions, Council has considered seasonal consumption rates. Specifically, Council considered a rate for sewer consumption that would be lower during the summer season. The reason for the lower rate would be to encourage residents to water their lawns and gardens, and for filling and maintaining water levels in swimming pools. Staff advises that the use of a summer rate for sewer consumption would likely cause the non-summer rate to increase. The increase results from the requirement to collect sufficient revenues to pay for the costs of sewer treatment. As a result, residents would pay less in the summer and pay more daring the rest of the year. Council directed Staffto investigate the feasibility of reducing the monthly rates by increasing the consumption rates. The City employs a two-part rate structure, the first being a service rate based on the number and size of meters. The second part is based on the amount of water that goes through the water meter. As indicated, the monthly service rates take into account the size of the meter. The greater the size of the meter, the greater the demand of the water and sewer infrastructure and thus the greater the portion of fixed costs charged to the customer. For example, a typical residential home pays a service rate of $29.83 per month. In contrast, a customer with a 50-mm meter pays a monthly rate of $178.98 per month. Working Together to Serve Our Community Clerks · Finance · Human Resources · Information Systems Legal Planning & Development November 1, 2004 - 2 - CPS-2004-07 There are approximately 26,000 water and sewer customers within the City, of which approximately 600 or 2.3% have meters larger than 25 mm. Based on the weighting factor, these large meter customers are responsible for 14.8% of the 2004 fixed costs. What this means in dollars is that just over 600 large metered customers contributed $1.5 million toward the fixed costs versus approximately 25,400 customers contributing $9.1 million or 85.8% of the total fixed costs. As can be seen by the figures, the larger meter customers, which are typically larger water users, are picking up a larger portion of the fixed cost that are necessary in order to operate the City's water and sewer infrastructure. Currently, the large meter customers account for 43% of the total volume of water purchased by the City. If, for example, the service rate was totally eliminated and all costs were put within the consumption rate, then the large volume water users would see an increase to their water and sewer bill of $3.5 million. This is a significant shift and would have a detrimental impact on several businesses within the City. Per Council direction, Staff can further examine the impacts that would be incurred for various reductions in the current service rates. Another consideration for Council is the use of tax revenue to pay for the sewer treatment costs of storm sewer flows. Currently, the General Purposes Budget includes the maintenance cost for the storm sewer system. However, the sewer treatment cost of storm sewer flows (due to combined sanitary and storm sewer systems) is included in the Municipal Utility Budget. Upon Council direction, Staff could undertake a study of the combined sanitary and storm sewer flows to determine what sewer treatment costs, if any, could be transferred to the General Purposes Budget. This cost transfer would reduce the sewer consumption rate and may increase the property tax rate. CONTRIBUTION TO CAPITAL PROJECT FUNDING The most significant cost included in service rates is the annual contribution to capital project funding. Since 2001, the total contribution has increased from $3,405,000 to $6,373,000. In comparison to this 87% increase is the impact on service rates for the same period. Since 2001, the combined service rate for the residential sector has increased 40%, from $21.37 per month to $29.83. For 2005, Staff is including a 15% increase in the contribution to capital project funding. This increase of approximately $956,000 would increase the monthly combined service rate by approximately 8.6%, ($2.50 per month or $30.00 per year). This increase is not the only consideration for service rates as Staff is continuing to determine budget requirements for labour, materials and contracted services. However, the contribution to capital project funding is the most significant cost included in service rates. Recommended and Approved by: Respectfully submitted: Executive Director of Corporate Services ~ '"' Chief Administrative Officer Corporate Services Department CPS-2004-08 The C~ty of 4310 Queen Street Executive Director h~ic~goro FollsyJ~,,~l~ P.O. Box 1023 Cor~O~Q ~' Niagara Falls, ON L2E 6X5 ~~F~__~¢-~..~~ web site: www.city.niagarafalls.on.ca Tel: (905) 356-5110 Fax: (905) 356-5110 E-mail: travenda@city.niagarafalls.on.ca November 1, 2004 Alderman Wayne Campbell, Chair and Members of the Corporate Services Committee City of Niagara Falls, Ontario Members: Re: CPS-2004-08 - 2005-2009 Capital Projects Budget Discussion RECOMMENDATION: For the information of the Corporate Services Committee. BACKGROUND: The 2005 budget process will include several discussions as outliued in the 2005 Budget Schedule. A final budget review and approval will occur on December 6. The Capital Budget is a multi-year plan that can facilitate the major repair, replacement or addition of the City's buildings, equipment, roads, water and sewer systems, etc. Many important factors must be considered, including sources of funding, kinds of capital projects and priorities. City Council took the first step in establishing a clear and unified direction for their term of office by holding a Strategic Planning Session on Monday, January 5, 2004. Council determined their strategic priorities by identifying six areas. Per Council direction, Staffis prioritizing the 2005-2009 Capital Projects Budget according to the following six strategic areas. · Infrastructure Rehabilitation · Transportation · Community Recreation Facilities · New Development and Re-Development · Quality Service · Communication Strategy/Open Government WorMng Together to Serve Our Community Clerks Finance Human Resources Information Systems Legal Planning & Development November 1,2004 - 2 - CPS-2004-08 FUNDING SOURCES Sources of capital funding can be categorized into three main groups: internal sources, external sources, and debt or lease financing. Internal financing sources include transfers from other municipal funds (i.e., operating or reserves) or sales of existing assets. External sources of financing include other government subsidies and grants (both federal and provincial), fundraising or donations, third-party contributions under public/private partnership arrangements, etc. The third source, debt or lease financing, includes external borrowing and other long term repayment obligations. Staff has prepared Report CPS-2004-09, Debt Management, for Council's consideration. Also, Staff has prepared CPS-2004-07, 2005 Municipal Utility Budget Discussion. In this report, Staff advises that a 15% increase in the contribution to capital project funding would provide approximately $956,000 more than 2004. In addition, the 2005 General Purposes Budget discussion is considering a similar 15% increase. These contributions fi-om both the Municipal Utility and General Purposes Budgets will impact the City's ability to do more capital projects. However, taxpayers and ratepayers will also be impacted by raising sufficient revenues to support these contributions. Recommended and Approved by: Respectfully submitted: T. Ravenda -'~ Jofu~ MacDonald Executive Director of Corporate Services Chief Administrative Officer City of Niagara Falls 2004 Capital Projects Budget Funding Sources Debenture funding General purposes 12% contribution 17% Municipal utility contribution 12% Other funding sources 59% City of Niagara Falis 2004 Capital Projects Budget Project Costs by Responsibility Area Fire Libraries 3% 1% Parks, recreation, culture, and cemeteries 33% 55% Transit 2% Fleet and facilities 3% Parking~ ~% General governmenl~ 2% Corporate Services Department CPS-2004-09 Human Resources Tony Ravenda The City oi ~1~1~ 4310 Queen Street Executive Director ' p.o. Box 4023 Niagara Niagara Falls, ON L2E 6X5 CQn~~~' web site:www.city.niagarafalls.on.ca ~- lTM Tel: (905) 356-5110 Fax: (905) 356-5110 E-mail: travenda@city.niagarafalls.on.ca November l, 2004 Alderman Wayne Campbell, Chair and Members of the Corporate Services Committee City of Niagara Falls, Ontario Members: Re: CPS-2004-09- Debt Management RECOMMENDATION: For the information of the Corporate Services Committee. OVERVIEW Debt management may be defined as the process of providing for the payment of interest and principal payments on existing debt, and the planning for incurrence of new debt at a level which will optimize borrowing costs and not impair the financial position of the municipality. At the municipal level, debt management is the blending of the capital and current budgets. More specifically, it is the projection of the capital budget's impact on the operating budget in future years. The debt position of a municipality is of interest to the Provincial government and potential purchasers of the municipality's debentures. The Ministry of Municipal Affairs and Housing regulates that a municipality should not commit more than 25% of total own purpose revenue to service debt and other long-term obligations without obtaining prior OMB approval. Annually, municipalities submit data on their long-term liabilities and debt charges to the Province (via the annual Financial Information Returns). This information forms the basis for the calculation of an upper limit of future debt to be incurred. GUIDELINES - ANNUAL REPAYMENT LIMIT CALCULATION The Ministry of Municipal Affairs and Housing regulates the level of debt incurred by Ontario municipalities. This task was formerly undertaken by the Ontario Municipal Board but, as of 1993, has been the responsibility of the Ministry. The Ministry regulates the debt by regulation through its powers established in the Municipal Act. Working Together to Serve Our Community Clerks · Finance Human Resources Information Systems Legal · Planning & Development November 1, 2004 - 2 - CPS-2004-09 Detailed calculations, which the Ministry undertakes annually, are based upon the Financial Infom~ation Returns (FIR's) submitted by each municipality. The amount of debt and other long-term financial obligations which can be entered into and allow the municipality to remain within its debt limit, will vary depending upon the interest rate and the term of the debt issued and the terms and conditions of the long-term financial obligations. Generally, the larger the annual payments respecting debt or other financial obligations (for example high interest rate and shorter term) the less the debt or other financial obligations which can be entered into while remaining within the debt limit. The debt limit is established on the basis of the annual debt repayment amount, not on the principal amount of the debt issued or total value of long-term financial obligations entered into. The annual debt repayment limit calculation is sent to municipalities by the Ministry at the beginning of every year. However, these calculations are based on data from the latest FIR submitted which is dated (for example for 2004, the calculations were based on 2002 FIR information). Although the Ministry reviews and regulates the debt levels of a municipality, it is still the responsibility of the municipality to calculate whether it is within its limit. The municipal Treasurer is required to update the limit prior to Council approval of a capital project which requires long-term borrowing. DEBT MANAGEMENT - LONG-TERM DEBT VERSUS PAY-AS-YOU-GO After the second world war, municipalities sought to expand their infrastructure and used debt financing as the vehicle to finance these expenditures. Until the 1960's, much of the capital infrastructure constructed depended on debt financing and the cost of borrowing was relatively inexpensive. During the 1970's, there was a general movement in the municipal sector to reduce the level of dependency on long-term debt financing. This movement was reinforced during the latter part of the decade when interest rates rose to all time high levels and were sustained for several years. Today, most major municipalities in Canada practise a combination of long-term financing and pay-as-you-go policies. There are mixed views as to whether long-term debt financing is a superior method of capital financing than pay-as-you-go. There are advantages and disadvantages to both approaches, municipalities need to consider the merits of both methods to guide their future financing in accordance with a long-term plan. In doing so, municipalities should establish parameters to guide the financing of their capital budgets, and develop policies to implement these guidelines. Some of the major benefits derived from long-term debt financing are as follows: 1. For assets with a longer life expectancy, the payments are spread over a longer term. 2. Debenture-financing smooths the impact on the operating budget. 3. It allows more projects to be constructed simultaneously during a period of rapidly expanding growth and assessment. 4. During periods of increasing inflation, it may reduce the real cost of the project. 5. It is the best financial tool for handling emergency situations. November 1,2004 - 3 - CPS-2004-09 Some of the positive attributes ora pay-as-you-go policy are: 1. The financial consequences of capital spending are faced as spending decisions are being made. 2. Paying for capital costs up-front encourages a realistic level of spending. 3. Greater Operating Budget flexibility is preserved for the future. 4. Increased financial strength. 5. Future generations inherit paid-up facilities. 6. Interest payments, fiscal agent fees, and debenture issuance costs avoided. 7. During periods of declining interest rates, debt financing increases the real cost of the project. Once debenturing forms a significant portion of a municipality's capital financing, the potential financial impact on the Operating Budget in the early years of moving to a pay-as-you-go policy can be a major stumbling block to its implementation. Pay-as-you-go may be implemented by increasing the Operating Budget in one year to a level sufficient to pay all capital expenditures for that year. However, this approach is likely to have a very significant impact on tax rates in its first year. Alternatively, pay-as-you-go may be achieved by a gradual phasing out of debenture financing in the capital spending program. This may be implemented by using a three-phase plan as described below as one possible approach: Phase I allows for a gradual increase in the contribution to capital from the operating budget and for the gradual establishment of reserve funds. During this phase, the annual debenture requirements (and resulting annual debt charges) are on the decline. Phase II can commence once the reserves have increased to a sustainable level. Annual capital expenditures, net of the Operating Budget contributions, can now be met from reserve contributions without the need for external debentures. This phase introduces internal debt financing, utilizing a revolving reserve fund. Annual contributions to the reserves are similar to annual repayment of external debt, and can be achieved through planned multi-year operating budgets. Phase III commences once the amount budgeted for repayment to the reserves equals or exceeds the actual net capital budget requirement. At this point, the current contribution to capital plus the internal debt repayment equal the net internal financing requirement of the capital budget. Internal debt repayment can be discontinued as the total net capital budget can be accommodated through direct contributions from the operating budget. The decision to use debt (including capital leases or other forms of long-term financial obligations) or pay-as-you-go financing is a local decision of the municipality. The policy selected may vary from program to program (e.g., use of pay-as-you-go for infrastructure replacement projects; use of debt financing for growth projects or cost saving projects). Either method may be beneficial to individual municipalities in certain circumstances; however, the long-term financial impact of the approach taken needs to be evaluated by the municipality prior to making these decisions. November 1,2004 - 4 - CPS-2004-09 2005 BUDGET CONSIDERATION At December 31,2004, the total debenture debt outstanding will be $11,962,118. During 2005, the debt payment orS1,951,190 includes a reduction of $1,369,894 in principal and an interest charge of $581,296. Given the projected use oflong-tem~ financing for the 2004-2008 capital budget, staff has prepared a graph of the future payments required to reduce the long-term debt balance (see attached Graph A). CounciI may want to consider the impact of long-tem~ financing when discussing the 2005-2009 Capital Budget. Per Council direction, Staff is using short-term financing for the railway corridor acquisition and community centre. For 2005, the financing cost will approximate $941,000 on temporary loans of $20.6 million. Staff also anticipates the temporary loans to be reduced by $6.2 million. Given the projected use of short-term financing for these two projects, staffhas prepared a graph of the future payments required to reduce the short-term debt balance (see attached Graph B). Council may want to consider the impact of short-term financing when discussing the 2005-2009 Capital Budget. Recommended and Approved by: Respectfully submitted: T. Ravenda '-~' Jolm MacDonald Executive Director of Corporate ServicesI ' Chief Administrative Officer Short Term Debt 25 2O 2004 2005 2006 2007 2008 2009 = Debt Outstanding ° Annual Payments Long Term Debt 25 5 0 2004 2005 2006 2007 2008 2009 = Debt Outstanding ° Annual Debt Payments Cc, l K) 5:5 NO bO, l ~= . tO ~- tf'~O O P i W 5 i~o ~ 'T'7't' G 5 If o u~ l T" LO o we g. O ~ ~ I't-£-&P /-- MFETING_- 7:00 3rd Wednesday of the Month Except duly & August STAMFORD LIONS CLUB 3846 Portage Road, Niagara Falls, ON