2007/03/19
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CORPORATE SERVICES COMMITTEE AGENDA
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FOURTH MEETING
Monday, March 19, 2007
Council Chambers. 6:00 p.m.
Staff Contact:
1. Minutes of the March 5, 2007 Meeting
2. ReDorts:
F-2007-13 - Annual Statement of Remuneration Ken Burden
and Expenses
F-2007-14 - Cancellation, Reduction or Refund Ken Burden
of Taxes under Section 357 and 358
of The Municipal Act 2001
HR-2007-02 - Collections Officer Position Trent Dark
3. 2007 Budaet:
2007 Budget "Big Picture" Presentation John MacDonald
F-2007-11- 2007 Budget Schedule Ken Burden
F-2007-12 -Financial Policies Ken Burden
!;
4. Oraanization. Review:
CAO-2007-04 - Organization Review Implementation John MacDonald
(Hand Out)
5. New Business
6. Adjournment
"
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NiagaraRqY,~
CORPORATE SERVICES MINUTES
THIRD MEETING .
MONDAY, MARCH 5, 2007
COUNCIL CHAMBERS - 6:30 P.M.
PRESENT: Mayor Ted Salci, Councillor Victor Pietrangelo, Chair; Councillors
Jim Diodati, Shirley Fisher, Carolynn loannoni, Vince Kerrio, Bart
Maves, Wayne Thomson, and Janice Wing
STAFF: John MacDonald, Dean lorfida, Steve Hamilton, Karen Kelly, Ed
Dujlovic, Trent Dark, Ken Burden, Barney Ruddell, Alex Herlovitch,
John Castrilli, Karl Dren, Todd Harrison and Joanna Daniels.
PRESS: Corey Larocque, Niagara Falls Review
Rob Lapensee, Niagara This Week
*******
CONFLICTS: Councillor loannoni declared a conflict with respect to the 2007
Municipal Utility Budget, as her husband is employed by the City
of Niagara Falls in the Water Department.
Councillor Pietrangelo declared a conflict with the item listed under
New Business as he is employed by the School Board.
*******
1. MINUTES:
MOVED by Councillor Kerrio, seconded by Councillor Maves, that the minutes
of the February 19, 2007 meeting be adopted as recorded.
Motion Carried Unanimouslv
2. REPORTS:
F-2007-10 - Proposed Changes to Water
Billing Processes for the 2007 Utilitv Budaet
MOVED by Alderman Kerrio, seconded by Councillor Wing, that Staff be
directed to investigate the following changes to the water billing process:
a) Commencing in 2007, interest to be paid on tenant water deposits;
b) The supply of water for a tenanted water account may be shut off when the
tenant fails to provide or continue to provide the required deposit in full;
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c) The supply of water to a property with a tenanted water account will be
immediately shut off when the tenant vacates, unless the owner has
supplied written direction prior to the shut off for the continuation of the
account in the owner's name. The cost of the shut off will be the
responsibility of the property owner. The supply of water to a property will
be turned on when a new account is established by a new tenant or the
property owner and the new account holder has provided the appropriate
re-connection fees and deposits.
d) That the Finance Division host an open house to inform landlords and
tenants of the proposed changes.
Motion Carried Unanimouslv
F-2007-09 - 2007 MuniciDal Utilitv Budget
MOVED by Mayor Salci, seconded by Councillor Maves:
a) That the 2007 Municipal Utility Budget be approved and
b) That staff report back on the validity of the suggestions for alternative water
and sewer rates as provided by Mr. Bielawski.
Motion Carried Unanimously
Conflict as noted bv Councillor loannoni
3. NEW BUSINESS:
MOVED by Councillor Diodati, seconded by Mayor Salci, that Committee
provide a letter of support to the Region and the School Board on behalf of
Mr. Papavasiliou for the return of the overpayment of property taxes due to an
incorrect assessment.
Motion Carried Unanimously
Conflict as noted by Councillor Pietranaelo
4. ADJOURNMENT:
There being no further business, the Corporate Services Committee adjourned
at 7:00 p.m.
March 19, 2007 F-2007-13
..~
N iagarapgllD~
His Worship Mayor Ted Salci
and Members of the Municipal Council
City of Niagara Falls, Ontario
Members:
Re: F-2007-13
AnnuafStatement of Remuneration and Expenses
RECOMMENDATION:
For the information of the Municipal Council. i
BACKGROUND:
The attached statement of remuneration and expenses for the year ending December 31,
2006 has been prepared pursuant to sections 283 and 284 ofthe Municipal Act, 2001, and
authorized for payment under By-law #99-22, By-law #2002-57 and By-law #2001-252.
A breakdown of remuneration and expenses by member for City Council, and various
bodies and local boards is provided in the attached statements. As per Council request,
a chart showing the remuneration and expenses paid to Council members serving on the
Niagara Falls Hydro Inc. Board of Directors has been attached, but is not included in the
overall summary. A summ~ry for 2006 is provided below:
Remuneration Expenses Total
City Council $231,438.58 $38,177.55 $269,616.13
Committee of Adjustment $ 4,650.00 $1,035.77 $5,685.77
Niagara Falls Transit Commission $ 9,400.00 $181.15 $9,581.15
Committees & Commissions $0.00 $1,369.16 $1,369.16
Recommended by: ~
K. E. Burden, Treasurer
;f~. r ------
~ohn MacDonald, Chief Administrative ofcer
March 19, 2007 -2- F-2007-13
2006 STATEMENT OF REMUNERATION AND EXPENSES
NIAGARA FALLS CITY COUNCIL
Council Member Remuneration Travel Other Expense Total
Expenses' Allowance
Campbell, W. $17,506.50 $616.98 $1,262.89 $500.00 $19,886.37
Diodati, J. 19,098.00 616.98 1,880.59 115.00 . 21,710.57
Fisher, S. 1,591.50 0.00 0.00 0.00 1,591.50
loannoni, C. 19,098.00 0.00 1,922.70 420.00 21,440.70
Kerrio, V. 19,098.00 0.00 0.00 190.00 19,288.00
Maves, B. 1,591.50 0.00 0.00 0.00 1,591.50
Morocco, J. 17,506.50 497.96 1,672.88 449.75 20,127.09
p' . 19,098.00 486.14 1,980.96 155.00 21,720.10
letrangelo, V.
Salci, T. 78,654.58 13,494.90 5,943.58 3,000.00 101,093.06
Thomson, W. 1,591.50 0.00 0.00 0.00 1,591.50
Vol patti, S. 17,506.50 616.98 1,277.04 490.00 19,890.52
Wing,J. 19,098.00 0.00 587.22 0.00 19,685.22
TOTAL $231,438.58 $16,329.94 $16,527.86 $5,319.75 $269,616.13
* includes internet & cell phone expense
March 19, 2007 -3- F-2007-13
2006 STATEMENT OF REMUNERATION AND EXPENSES
COMMITTEE OF ADJUSTMENT
Member Remuneration Expenses Total
.
Antonio, C. $720.00 $245.58 $965.58
Cahill, M. 840.00 0.00 840.00
Collinson, J. 1,110.00 192.43 . :. 1,302.43
Mangoff, T. 960.00 251.09 . 1,211.09
Pietrangelo, V 0.00 0.00 0.00
Prata, G. 1 ,020.00 346.67 1,366.67
Vol patti, S. 0.00 0.00 0.00
TOTAL $4,650.00 $1,035.77 $5,685.77
2006 STATEMENT OF REMUNERATION AND EXPENSES
NIAGARA FALLS TRANSIT COMMISSION
Member Remuneration Expenses Total
Oi Giaeomo,T. $2,200.00 $124.11 $2,324.11
(Chair) .
Stranges, L. 1,800.00 28.52 1,828.52
Carter, O. . 1,800.00 28.52 1,828.52
Puttiek, N. 1,800.00 0.00 1,800.00
.
Salei, T. 1,800.00 0.00 1,800.00
TOTAL $9,400.00 $181.15 $9,581.15
March 19,2007 -4- F-2007.13
2006 STATEMENT OF REMUNERATION AND EXPENSES
NIAGARA FALLS HYDRO INC. BOARD
(Only City of Niagara Falls Council Members are listed)
Member Remuneration Expenses Total
Campbell, W. $4,233.00 $0.00 $4,233.00
loannoni, C. 5,600.00 0.00 5,600.00
'.
Morocco, J. 4,683.00 0.00 . 4,683.00
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Salci, T. 3,950.00 0.00 3,950.00
TOTAL $18,466.00 $0.00 $18,466.00
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COMMITTEES! COMMISSIONS
(only members who received remuneration / expenses are listed)
PARKIN THE CITY
Member Remuneration Expenses Total
Fohr, F. $0.00 $100.00 $100.00
MUNICIPAL HERITAGE COMITTEE
Member Remuneration Expenses Total
Mingle, M. $0.00 $652.16 $652.16
2006 STATEMENT OF REMUNERATION AND EXPENSES
March 19, 2007 -5- F-2007 -13
COMMITTEESI COMMISSIONS
(only members who received remuneration / expenses are listed)
ARTS & CULTURE
Member Remuneration Expenses Total
Akalu, K. $ 0.00 $267.00 $267.00
Buetter, B. 0.00 50.00 50.00
McLaughlin, C. 0.00 50.00 50.00
McCracken, P. 0.00 100.00 100.00
Smylski, B. 0.00 50.00 50.00
Harkness, J. 0.00 50.00 50.00
Heron, W. 0.00 50.00 50.00
TOTAL $0.00 $617.00 $617.00
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March 19, 2007 ...~ F-2007-14
Niagarap:qlID~
Councillor Victor Pietrangelo, Chair
and Members of the Corporate Services Committee
City of Niagara Falls, Ontario
Members:
Re: F-2007-14
Cancellation, Reduction or Refund of Taxes
Under Section 357 and 358 of The Municipal Act, 2001
RECOMMENDATION:
That the cancellation, reduction or refund of taxes on the various accounts per attached
summary be approved and granted to the property owners listed.
BACKGROUND:
Section 357 and 358 of The Municipal Act, 2001 provides for the cancellation, reduction .
or refund of taxes for persons who were overcharged by reason of any gross or manifest
error in the preparation of the Assessment Roll.
Appeals have been received and the Applicants have been notified that the respective
matters will be considered by City .Council this evening. The Municipal Property
Assessment Corporation has confirmed that the subject properties were assessed
incorrectly in that these properties; had structures that had been demolished or removed,
were damaged or razed by fire, have ceased to be liable at the rate it was taxed, became
exempt, or a transposition, typographical, or clerical error was made.
Recommended by: ~
K. E. Burden, Treasurer
Respectfully submitted: ~.
r John MacDonald, Chief Administrative Officer
A. Felicetti I
!
iCorporate Servi~ Department
Finance
APPLICATION FOR CANCELLATION, REDUCTION OR REFUND OF TAXES
(Pursuant to Section 358 and 357 (1) (a), (b), (c), (d), (e), and (g) of the Municipal Act)
Municipality CITY OF NIAGARA FALLS Assessment Region NIAGARA
I hereby apply for the cancellation, reduction or refund of taxes as set out below and certify that the Regional Assessment Commissioner
has verified that the information contained in this application is in accordance with her/his records.
Appl.. ! Name and Address of Applicant I Taxatiol Reason for Application Reduction
Year Amount
2006-83 Hoco limited, PO Box QO. Stn Main, Niaqara Falls, ON L2E 6S8 2006 Damaaed bv fire, demolition or otherwise $1.77
2006-85 Kerrio Corporation, c/o The Oakes Inn Fallsview, 6546 Fallsview Blvd, Niaaara Falls, ON L2G 3W2 2006 Ceased to be liable to be taxed at rate it was taxed $0.00
2006-85A Kerrio Corporation, cia The Oakes Inn FaUsview, 6546 Fallsview Blvd, Niagara Falls, ON L2G 3W2 2005 Ceased to be liable to be taxed at rate it was taxed $0.00
2006-96 876891 Ontario Liniited, 6361 Fallsview Blvd, Niaaara Falls, ON L2G 3V9 2006 Damaged by fire, demolition or otherwise $0.00
2006-88 Tran, Anh Ngoc, clo Home Alone Property Management, 10 Ann St, Missisauaa,ON L5G 3E6 2006 Damaaed by. fire, demolition or otherwise $259.04
2006-89 Wedgewood Builders of Niaaara, 2125 Fruitbelt Parkway, Niagara Falls, ON L2H 2L2 2006 Damaaed bv fire, demolition or othelWise $187.88
2006-111 Wedgewood Builders of Niagara, 2125 Fruitbelt Parkwav, Niaaara Falls, ON L2H 2L2 DUPLICATE 2006 Damaaed bv fire, demolition or otherwise $0.00
2006-92 Maimer Holdinas Ltd, 4 McClure Cres, Thorold, ON L2V 4B6 2006 Damaned bv fire, demolition or othelWise $1,584.38
2006-113 Hornak, Peter & Kubis, Lubomir, 7774 Charnwood Ave, Niaaara Falls, ON L2H 3E2 2006 DafTIaaed bv fire, demolition or otherwise $0.00
2006-81 Maria Concettina Valente, 5559 Montrose Rd, Niagara Falls, ON L2H 1 K9 2006 Gross or manifest clerical error $933.01
2006-81B Maria Concettina Valente, 5559 Montrose Rd, Niaaara Falls, ON L2H 1 K9 2005 . Gross or manifest cIeri'cal error $949.48
2006-95 Maria Concettina Valente, 5559 Montrose Rd, Niaaara Falls, ON L2H 1 K9 2004 Gross or manifest clerical error $919.50
2006-95 Losacee, Frank & Marv, 8092 Beaverton Blvd, Niagara Falls, ON L2H 3K4 2006 Gross or manifest clerical error $1,437.24
2006-97 Stranoes, Antonio & Lvnn, 5633 Ma nolia Dr, Niaoara Falls, ON L2H 3J4 2006 Became exempt $2,495.04
2006-97B Stranaes, Antonio & Lvnn, 5633 Magnolia Dr, Niagara Falls, ON L2H 3J4 2005 Became exempt $783.32
2006-97 A Stranoes, Antonio & Lvnn, 5633 Ma nolia Dr, Niagara Falls, ON L2H 3J4 2004 Became exempt $773.36
2006-107 1149962 Ontario Limited, 6225 Proaess SI, Niaoara Falls, ON L2E 6Z2 2006 Damaaed by fire, demolition or otherwise $5,082.89
2006-110 Beck, Diane Gertrude, 9200 Sodom Rd, Niagara Falls, ON L2E 6S6 2005 Gross or manifest clerical error $937.92
2006-1108 Beck, Diane Gertrude, 9200 Sodom Rd, Niagara Falls, ON L2E 6S6 2004 Gross or manifest clerical error $908c.~
TOTAL $17,253.06
APPROVED this 191h day of March ,2007 REPORT NO. F-2007-14
TED SALCI, MAYOR DEAN IORFIDA, CITY CLERK
["'Any individual items not approved must be struck out and initialed.]
Page 1
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March 19, 2007 HR-2007-02
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NiagaraFgIID~
Councillor Victor Pietrangelo, Chair
and Members of the Corporate Services Committee
City of Niagara Falls, Ontario
Members:
Re: HR-2007-02
Collections Officer Position
RECOMMENDATION:
To re-c1assify the current Collections Officer position to a full-time, unionized position.
BACKGROUND:
In 2004, the position of Collections Officer was established to enforce final collection of
delinquent water accounts. Additional responsibilities have been added which include the
administration of the Seniors "Low Income" Rebate and the High Water Consumption
rebate programs. The additonal resource has provided Finance an opportunity to enhance
the tax collection process. The implementation of these initiatives has contributed to
positive results for the City's financial position including the lowering of the City's tax
arrears from 14% (2003) to 9.8% (2006) of taxes billed in a year.
Although the position fell within the scope of the bargaining unit, the Collections Officer
was deemed to be temporary until the department could accurately evaluate its workload
demands. The need for this position has been clearly demonstrated and the bargaining
unit has been cooperative and patient in the "out of scope" classification of this position.
In good faith and in accordance with the terms of the Collective Agreement, it is required
to acknowledge the position as a full-time, bargaining unit position. There is minimal salary
and/orbenefit costs associated with reclassifying this position.
Recommended by:
Recommended by:
Respectfully submitted:
j Corporate Services O!,partment
Human Resources
March 19, 2007 F-2007-11
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NiagaraFqllD~
Councillor Victor Pietrangelo, Chair
and Members of the Corporate Services Committee
City of Niagara Falls, Ontario
Members:
Re: F-2007-11
2007 Budget Schedule
RECOMMENDATION:
That the Corporate Services Committee approve the attached 2007 Budget Schedule.
BACKGROUND:
In past years, the Corporate Services Committee has approved a Budget Preparation
Schedule for the Budget year. Each of the three separate budgets, General Purposes,
Capital and Municipal Utility, will be discussed at various times according to the attached
schedule. Deputations from community groups and the public are also part of the
schedule.
It is Staff's intention to present to Council an overview of the opportunities andchallenges
for 2007 forward. Staff will be seeking direction on the preparation of the 2007 Budget for
a final presentation of the Budget in May 2007.
Recommended by: ~
K. E. Burden, Treasurer
Respectfully submitted: ~~
r John MacDonald, Chief Administrative Officer
Corporate Services Department.
Finance
2007 SCHEDULE
DEPUTATIONS
April 16 Deputations: Corporate Services Committee - GNGH Foundation, Board of Museums,
United Way Review, Niagara Falls Art Gallery, Niagara Falls ArmouryTenants, MacBain
Community Centre Tenants, Heart Niagara, Niagara Transit, Niagara Falls Public
Library, Niagara Falls Tourism, Winter Festival of Lights
April 16 Deputations to City Council from Public as requested
2007 SCHEDULE
GENERAL PURPOSES BUDGET
March Corporate Services .Committee - General Purposes Budget discussion
April Corporate Services Committee - Division Budget Presentations
May City Council Review and Approval of General Purposes Budget
May Council Approval of Bylaws for Tax Rates for Region, School Boards, Municipality
2007 SCHEDULE
CAPITAL CONSTRUCTION BUDGET
April Corporate Services Committee - Capital Construction Budget discussion
May City Council Review and Approval of Capital Construction Budget
March 19, 2007 F-2007-12
. Yffi,
NiagaraFcqllD~
Councillor Victor Pietrangelo, Chair
and Members of the Corporate Services Committee
City of Niagara Falls, Ontario
Members:
Re: F-2007-12
Financial"Policies
RECOMMENDATION:
For the consideration of the Corporate Services Committee.
BACKGROUND:
Overthe past year, BMA Management Consulting Inc. was engaged to perform an in-depth
analysis of the City's financial indicators and performance measures. Following the
Financial Planning Session, the following policies have been developed and are being
presented for Council's approval.
Policies help to ensure the City's fiscal sustainability. Fiscal sustainability is the ability to
maintain services and infrastructure, while at the same time, maintain other aspects of
financial responsibilities.
Financial PoliCies have been developed in the following key areas:
. General Financial Policies
. Asset Management Policies
. Reserve Policies
. Debt Policies
. User Fee Policies
General Financial Policies
1. The City will raise sufficient revenue to meet long term operating and financial
requirements, recognizing that inflation increases the cost of both operating and capital
programs.
2. The City will establish a financial planning process that assesses long term financial
implications of current an ,m:~tlposed poliCies, programs and assumptions to raise
awareness of options, ives, potential problems and opportunities.
Corporate Service. Department
FinanCe
March 19, 2007 -2- F-2007-12
3. The City will undertake service delivery reviews of City programs, on a regular, rotating
basis giving consideration to the City's demographic profile and other relevant factors
to ensure services are delivered in a cost effective and efficient manner.
4. The City will develop key performance measures for each program area and
incorporate performance measures in the annual operating budgets.
5. Every four years, coinciding with the term-of Council, the City shall create a strategic
plan that identifies the priorities with key intended outcomes that measure appropriate
results for each priority.
6. A report on financ:ial condition will be prepared annually to monitor the financial
condition and achievement of explicitly set financial goals.
Asset Management Policies
Asset management is a systematic process of maintaining, upgrading, and operating
physical assets cost effectively. It combines engineering principles with sound business
practices and economic theory, and it provides tools to facilitate a more organized, logical
approach to decision making. Thus, asset management provides a framework for handling
both short and long-range planning.
Policy Statements
1. The City will maintain their required infrastructure in a "state of good repair" by
implementing lifecycle costing to provide for the future rehabilitationlreplacement of
assets.
2. The City will maintain an asset management program which will include:
. Development and maintenance of an asset management strategy-this will
include a strategy to address:
. Immediate, or corrective actions
. Near-term, or the tactical planning phase, and
. Long-term, or the strategic planning phase
. Maintaining an asset management inventory
. Assessing the condition of assets on a regular basis
. Performing a financial valuation of the assets-consideration will be given to
the useful life of the assets, the cost of replacement and the ability to preserve
the assets through optimal repair and replacement planning
. Establishing capital and operating budgets to support the assets-smoothing
out projections by determining the amount to be reserves for repairs and
replacement. A planning horizon of 5 years will be implemented for existing
assets in order to plan adequately for the large asset replacements.
. Maintaining, repairing, renewing and replacing assets
3. The City will dispose of capital assets which are not required for long term
community purposes.
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March 19,2007 -3- F-2007-12
4. A capital improvement plan will be prepared annually and will include a list of
projects by function and type using the following categories; growth,
lifecyclelongoing programs and new initiatives. The plan, including both capital
and operating costs will project 5 years into the future.
5. The capital improvement plan will take into consideration affordability in terms of
both capital and operating costs, community concerns, availability of alternatives,
co-ordination with other projects and impacts on services.
Reserves Policies
Maintainina Reserves - Policv Statements
1. The City will maintain financial reserves:
. To provide stability of tax and utility rates in the face of variable and
uncontrollable factors (consumption, interest rates, unemployment rates,
changes in subsidies)
. To provide financing for one-time or short term requirements without
permanently impacting the tax and utility rates
. To segregate funds received and/or to be used for a specific purpose
. To make provisions for replacements/acquisitions of assets/infrastructure that
are currently being consumed and depreciated
. To avoid spikes in funding requirements of the capital budget by reducing their
reliance on long-term debt borrowings
. To provide a source of internal financing
. To ensure adequate cash flows
. To provide flexibility to manage debt levels and protect the City's financial
position
. To provide for future liabilities incurred in the current year but paid for in the
futu re
Monitorina and Reoortina - Policv Statements
1. Reserves will be reviewed on an annual basis to determine their adequacy and a
report will be prepared to Council highlighting the target balances compared with the
existing balance and reserve projections. Reserve and Reserve Funds will be
classified as:
. Building/Facility Reserves
. Capital Reserves
. Vehicle/Equipment
. Stabilization Reserves
March 19, 2001 -4- F-2001-12
. Program Specific Reserves
. Corporate Reserves
. Development Charge Reserves
2. City reserves and reserve funds will be supported by a financial plan identifying
contribution sources and projected disbursements required to meet planned future
obligations to be funded by reserves.
Buildina/Facilitv Reserves Policies
1. Full life cycle costing will be undertaken to ensure that reserves are adequate to meet
the ongoing replacement and refurbis~ment needs ofthe City's building/facility assets.
2. To maintain the City's existing buildingslfacilities, an annual transfer will be made to
the reserve in the range of 1.5% to 4.0% of the replacement cost of the underlying
asset based on industry recognized standards. The City will phase-in these
contributions over a period of 5-10 years and will gradually increase annual
contributions until the annual contribution is equivalent to 1.5% ofthe underlying asset
value.
3. Reserves will be established and contributions will be made to support all municipally
owned buildingslfacilities. The repair and replacement reserve transfer will be a part
of the revenue requirement.
4. All buildinglfacility reserves will be credited interest to maintain purchasing power
parity.
Capital Reserve Policies
1. New Water Capital, Sewer Capital and General Capital Reserves will be established
and maintained with the associated funds transferred from the Capifol! Holding
Account.
2. The City will contribute 1 % to the reserves of the asset value for waterworks and
wastewater on an annual basis. This will be phased-in over a period of 5-1 0 years.
3. All capital reserves will be credited interest to maintain purchasing power parity.
Vehicle and Eauioment Reolacement Policies
1. Newvehicle and equipment replacement reserves will be established and maintained
with the associated funds transferred from the Capital Holding Account.
2. Reserves for vehicle and equipment replacement will be funded through calculated
annual contributions from the Operating Budget, based on capital replacement costs,
an inventory and age of equipment and vehicles supported by lifecycle and
replacement costing and a depreciation schedule to smooth the impact on the budget.
3. All equipment and vehicle reserves will earn interest to maintain purchasing power
parity.
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March 19,2007 -5- F-2007-12
Stabilization Reserve (Tax and Rates) Policies
1. The City will maintain separate reserves for Tax Stabilization, Water Rate
Stabilization, Waste Management Stabilization and Sanitary Sewer Rate Stabilization
Reserves.
2. To provide sufficient flexibility and protection for unforeseen events, the target range
to be maintained in the Tax and Rate Stabilization Reserves will set at 5%-10% of
gross expenditures.
3. Balances in the Stabilization Reserves will be reviewed annually relative to the target.
Shortfalls from the target will be funded from annual operating surpluses. Balances
in excess of targets will be used to finance deficiencies in other reserves, operating
shortfalls and one-time program expenditures.
4. Reserves for Working Capital (Tax Stabilization), Water Rates Stabilization Reserve
and Sewer Rates Stabilization Reserve will eam interest until such time as the target
range has been achieved.
5. The City will maintain a Building Permit Stabilization Reserve in accordance with the
regulations for Bill 124. A fee stabilization reserve fund would be specifically for
funding any shortfalls within the Building Code Act fees and would not be available
to fund any other municipal financial priorities. The Reserve will be funded from year
end surpluses and will have a ceiling balance of 50% of the total budgeted operating
expenditures. The reserve fund will have a dual purpose:
. To manage the risk associated with an economic downturn
. To manage the financial implications resulting from additional compliance
costs
Program Soecific Reserve Policies
1. All program specific reserves will be reviewed annually and will have a financial plan
associated with each reserve.
Coroorate Reserve Policies
1. Corporate Reserves will be monitored on a regular basis to ensure that appropriate
funds are set aside to meet future obligations.
2. Annual contributions will be made to meet future obligations associated with Worker's
Compensation, Sick Leave Liability and other long term obligations.
3. Actuarial valuations of long term obligations will be undertaken every three years.
Debt ManaqementPoHcres
1. The City will monitor all forms of debt annually and include an analysis in the City's
Financial Plan; concerns and recommended remedies will be reported to Council as
necessary.
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March 19, 2007 -6- F-2007 -12
2. Tax supported debt charges (principal and interest payments) will be limited to 10%
of the City's tax levy.
3. Any increase in debt charges from one year to the next will not exceed assessment
growth. This will help to ensure that the existing debt burden does not increase to the
existing taxpayers.
4. Rate supported debt charges (principal and interest payments) will be limited to 15%
of the City's rate supported revenues.
5. Debt financing will be employed as a means of financing projects related to:
. Increased/new services to residents for new initiatives;
. New, non-recurring infrastructure requirements;
. Programs and facilities which are self supporting; and
. Projects where the cost of deferring expenditures exceeds debt servicing costs
. The growth costs not recovered from Development Charges
6. Lifecycle projects which renew and rehabilitate existing assets should not be eligible
for debenture financing. A planning process will be developed whereby an annual tax
contribution will be made to meet Iifecycle needs of all assets. In the interim, the City
will undertake a short-term, managed program of debt financing to address the City's
current infrastructure deficiency and to reduce further deterioration of the City's
infrastructure.
7. The length of the term of debt should not exceed the useful life of the underlying
asset.
8. Debt will be structured for the shortest period consistent with a fair allocation of costs
to current and future beneficiaries or users.
9. As debt charges decline due to the retirement of debt, the City will apply savings to
accelerate achievement of fulllifecycle costing of the City's infrastructure.
User Fee Policies
General User Fee Policies
1. User fees will be charged by the City where:
. There is a clear relationship between fees paid by users and the benefits
received by users;
. The taxpayer has a choice as to the extent to which he/she uses the service;
. It is administratively feasible to collect the charge at a reasonable cost; and
. The benefits can be quantified and attributed to the user.
2. The City will employ the following steps with respect to user fees:
. Identify the manner in which fees and charges are currently set and the extent
to which they cover the cost of the service provided.
.
March 19, 2007 -7- F-2007-12
. Ensure that the full costs permitted under the legislation and regulations are
identified and establish a policy to set standards for each fee and rate charged
which will identify:
. Which costs are to be recovered from fees
. The extent to which fees will be discountedlsubsidized from the general tax
base
. Evaluate the effects of potential changes on revenue sources in order to
understand the impact on future revenue collections and other revenue sources.
. Conduct a cost study for each of the services for which a fee is charged.
. Communicate with the public. The City should clearly explain to its residents why
it is charging user fees and the advantages of this type of revenue collection.
3. The City will strive to increase/maintain user fees as a percentage of overall funding
by identifying new areas where user fees can be implemented and by ensuring that
existing fees are updated based on increases in the associated expenditures to
provide the services.
4. Revenues from user fees will not exceed the cost of providing the service as
permitted under the legislations and regulations.
5. Rate/fee structures will be sensitive to the "market" for similar services. In setting
user fees, the City will consider fees charged by other agencies/municipalities.
6. Each department that charges user fees will undergo a process to identify and
document the business units involved in program or service.
7. The City will establish target proportions of program costs to be raised through user
charges based on rElviews of benefits received. The City will establish user charges
at rates that will yield the target proportions.
8. The City will review and update user fees annually based on factors such as the
impact of inflation, other cost increases, the adequacy of the coverage of costs and
current competitive rates.
9. In accordance with the pertinent legislation and regulations, the City will hold public
meetings as required.
10. New fees and any significant fee changes may be phased in over a number of years
and in consultation with user groups and the community where feasible.
Water and Wastewater Rate Policies
1. The City will charge water/wastewater rates at a level that recovers the full cost of
service including a provision for infrastructure repair/maintenance and the wholesale
costs charged by the Region of Niagara.
2. The City's rate structure will include a fixed monthly cost based on the size of the
meter and will recover fixed costs for reading, billing, meter replacement, collections,
customer service and may include fixed capital costs.
.
March 19, 2007 -8 - F-2007-12
3. The City's rate structure will include a volumetric rate to be charged to users based
on consumption. The City will calculate the volumetric waterlWastewater rates using
a 5 year historic flow.
4. The City will review, on an annual basis, the afford ability of the water/wastewater
costs and will notify Council when, based on industry standards, the average water
and wastewater service annual costs exceeds 2% of average annual household
income.
5. All other ancillary waterlWastewaterfees will be based on 100% cost recovery (e.g.
water shut offs/on, connection fees, meter installation fees, etc.)
Building Permit Fee Policies
1. Where the service is regulatory in nature and voluntary compliance is not expected
to be the primary method of detecting failure to meet regulatory requirements as is
the case for building permit fees, the fee will be set to recover the full cost of service.
2. All eligible costs in accordance with Bill 124, an Act to Improve Public Safety and to
Increase Efficiency in Building Code Enforcement will be identified for each fee and
fees will be based on 100% Cost recovery.
Planning Fee Policies
1. Where the service is regulatory in nature and voluntary compliance is not expected
to be the primary method of detecting failure to meet regulatory requirements as is
the case for planning fees, the fee will be set to recover the full cost of service.
2. The City will calculate fees such that all eligible costs in accordance with Section 69
of the Planning Act will be identified for each fee and fees will be based on 100%
cost recovery.
Parks and Recreation Fee Policies
Parks and Recreation Fee Subsidy Policy Considerations
In setting parks and recreation user fees the City will consider three separate issues:
1. . Community-Wide versus Soecialllndividual Benefit
The level of user fee cost recovery will consider the community-wide versus special
service nature of the program or activity. The use of general purpose revenues
(taxes) is appropriate for community-wide services, while user fees are appropriate
for services that are of special benefit to easily identified individuals or groups. The
following chart will be used to assist in the identification of the extent to which the
costs of programs and services will be recovered from fees from a community wide
versus individual benefit criteria.
.
March 19, 2007 -9- F-2007-12
. , -
J~~il~~t ;i~~~r;lW_~~~Q'~~~~~1-" ','":,,:-',,,:,-:-:',,-,,'-',':"..:_-.:,-,'.\'. '
L'rAXYs;FEES
, SERVICE c . .~po~lcYMi)( .
- <f/;'3,-:*;~0"'t;f;_::';;'~: ~,-':-.-:~'f"-<-"-,' "
- I0~~,tf~W~~~:;'-
tii'c'- '71
"1iC""'''f
\1 _~-~"~li~-
'lFflllmllrJ[yL:rai(es
~~~iI',,>,C"""
~-;~~~'M:!i,~-~:r,~t;J:t,
1&,S<?:ll!e;F~"h~,?
~'!#rlln~~1jytf.i1ti.il:
'~Wtl~~aF'M'
~.. (_' .. __~!1_~};[t;1,~~~i\~'
jii-Sofije'taXes'c.,
-.,,go., ',".' "..' . ..... ~_." ....-..
___r.~j
. - -.-',---- -",""',-..
2. Affordability
Affordability of user fees will be considered for services and programs that allow an
identified group to participate in services which they might not otherwise be able to afford.
It is common practice for many recreation programs and services for example to be
operated with a level of subsidy.
3. Effect of Pricina on the Demand and Use of Services
The City will consider the level of cost recovery and related pricing of services in relation
to the demand and subsequent level of services provided. In setting the poliC;y,
consideration will be given to whether 100% cost recovery will mean that the low-income
taxpayers, who need the service the most may not be able to afford the service. If so, a
reduced fee may be considered.
General Parks and Recreation Subsidv Related Policies
1. Certain programs are supported at higher levels based on the public benefit
provided by a particular service as determined by Council.
2. Public services are defined as those that tend to preserve and promote a high
quality of life within the City, provide public safety, or provide services to the general
public. As everyone equally benefits, generally public services will be funded from
the general tax base and no user fee will be charged.
3. Where there is no intent to limit the use of (or entitlement to) the service, the
general tax base will be used to fund the program or service. Access ,to
neighbourhood and community parks fit into this category (excludes rentals of ball
diamond soccer pitches, etc.)
4. If consumption of goods or services generates some public benefits, general funds
will be used to subsidize that portion of the activity that benefits the community as
a whole and user fees will recover the portion of the good or service that benefits
individuals.
.
March 19, 2007 -10 - F-2007-12
. ' .
5. Private services are those whereby the participant receives the benefit. If
consumption of goods and services generates benefits limited to the individual
consumer, the City will set fees to recover 100% of the allowable costs under the
legislation and regulations unless afford ability criteria have been met for the fee.
6. Fees for City services that are similar to services provided through the private sector
will be set to recover the full cost of the service to avoid unfair competition.
7. A non-resident policy will equalize the registration fee so that non-residents
contribute to the overall financing on an equitable basis with residents: For cost
recovery activities of less than 100%, a differential in rates between residents and
non-residents will be employed such that non-residential fees will be set higherthan
the residential fee and will recover 100% of the cost of the service. to eliminate
taxpayer subsidies.
8. Reductions in fees may be made for families, groups (seniors, youths, etc.) and low
priority times, to ensure maximum use is made of the services provided.
9. Cost recovery for activities directed to adults will be based on 100% cost recovery.
10. Where the City provides space within its facilities at below 100% of the cost for
these facility rentals, the amount of subsidy will be recognized as a grant to the
respective organization.
General Parks and Recreation Policies
1. Average costs across similar facilities will be used to establish fees (e.g. all arena
costs will be consolidated and averaged to develop a common user fee).
2.- The public will be informed of any increases in fees and charges as far in advance
as possible to allow groups time to adjust their fees and/or fund-raising activities in
accordance with the new rates.
Other Revenue Related Policies
1. The City will identify possible revenue generating opportunities and undertake a
cosUbenefit analysis for the feasibility of implementing such opportunities.
Recommended by: ~
K. E. Burden, Treasurer
Respectfully submitted:.. ~~
. r John MacDonald, Chief Administrative Officer
. .
March 19,2007 CAO.2007.04
City Hall
4310 Queen Street
P.O. Box 1023
Chief Administrative Officer Niagara Falls, ON L2E 6X5
web site: www.niagarafalls.ca
(905) 356-7521 Ext. 5100
Fax: (905) 374-3557
jmacdonald@niagarafalls.ca
Councillor Victor Pietrangelo, Chair
and Members of the Corporate Services Committee
City of Niagara Falls, Ontario
Members:
Re: CAO-2007-04
Organizational Review and Implementation
RECOMMENDATION:
1) That the recommended changes to the City's administrative structure be approved,
and
2) That authorize staff to move forward with the implementation.
BACKGROUND:
On May 8, 2006, Council ratified Community Services Report CAO-2006-01 which
provided Terms of Reference for the Organizational Review, and authorized staff to hire
a consultant to undertake the review.
The purpose of the Organizational Review was to comprehensively assess the City's
administrative structure and processes to ensure the best use of staff and municipal
resources. The attached report summarizes Mercer Delta Organizational Consultant's
findings with regard to the City's organizational design. It should be noted that the
consultant's recommendations with regard to Niagara Transit were reported under
separate cover to Council, and a competitiveness review of non-union pay rates will be
presented in April.
As reflected in the attached report, Mercer Delta recommended the following key changes
to the City's organizational structure:
. filling Executive Director vacancies to build better leadership capacity and
succession potential
. introducing a new Executive Director of Planning to develop an integrated
approach to planning across the corporation
. integrating transit services into the organizational design and establishing a
Director of Transportation position
March 19, 2007 -2- CAO-2007 -04
. creating a corporate communications position to foster improved public
relations and development of a communications and stakeholder
engagement strategy
. adding a learning and development position to facilitate workforce planning
and talent attraction and retention
. putting in place a new administrative committee structure
. eliminating "one-on-one reporting relationships
. reducing the span of control (e.g., CAO from 12 to 7)
The report also recommends developing organizational values and operating principles,
and establishing a process for evaluating the Chief Administrative Officer.
The Organizational Review report was presented to Council in Committee of the Whole on
Monday, February 19, 2007 by consultant Ian Smith, and Council met with CAO John
MacDonald to discuss the staffing implications on February 26, 2007.
As a result of those discussions, Council supported the following staff changes, which will
be made effective April 2, 2007:
Infrastructure & Community Services Ed Dujlovic (currently Director of Municipal
Works) will become the Executive Director of
Infrastructure & Community Services.
Geoff Holman (currently Manager of
Development) will become the Director of
Infrastructure Services.
Karl Dren (currently Manager of Traffic &
Parking) will become the Director of
Transportation Services.
Corporate Services Ken Burden (currently Director of Finance) will
become the Acting Executive Director of
Corporate Services.
Todd Harrison (currently Manager of Accounting)
will become the Acting Director of Finance.
Office ofthe CAO Dale Morton will become Manager of Strategic &
Corporate Initiatives.
As reflected in the new corporate structure chart which is attached, the changes in the
above do not increase the staff complement. The Executive Director of Planning and the
Communications positions will be deferred and re-evaluated in the future. In the meantime,
the communications portfolio will be merged with Manager of Strategic & Corporate
Initiatives position. It should also be noted that By-law Services will be relocated to
Corporate Services under the supervision of the Director of Council Services & City Clerk.
----
March 19, 2007 -3- CAO.2007-04
The funding required to accomplish these changes will be generated through:
. OMERS early retirement options
. cost savings through internal repositioning and expanded position
descriptions
. phased implementation of some positions
. reinstatement of the Executive Director of Infrastructure & Community
Services position utilizing funds previously allocated to manage the People
Mover Project
As a result of employing the aforementioned strategies, it is estimated that the
organizational review changes will result in a net savings to the Corporation.
Respectfully submitted: frlrv
MacDonald, Chief Administrative Officer
,
I City Council I
,------ - -- - n _u __ - - ~l- _ nu__ _____nu__'
, I ~
, Chief Administrative Officer
,
,
,
,
,
, Director, Business
,
, Manager, Strategic &
, Development
, Corporate Initiatives
, Services
,
, ,
,
, ,
, ,
, ,
, ,
,
Office of the CAO ,
,
,
, -------------------- ~-----_____________2
I
Executive Director
nfrastructure & Community Services~ Executive Director Fire
- Corporate Services Chief
I
Director, Planning Director, Director, Director, Director, Parks, Director, Director, Human Director, Assistant Chief,
& Development Building Transportation Infrastructure Recreation & Financial Resources Infonmation Operations
Services Services Services Services Culture Services Services Services Services Assistant Chief,
Administration
"Head, Special Manager, Manager, Manager, Manager, Manager, Employee Manager, Information
Projects" Traffic Engineering & Recreation & 'Special Services Services
Operations Construction Community Projects" "Head", Learning Manager, Software
Manager, Deveiopment
Current Manager, 'Head' Manager, & Development Services
Planning Par~ng Municipal Works Manager, Revenue Health and Manager, GIS
Operations Operations Parks & Manager, Safety
Manager, Cemetery Services
Manager, Accounting Administrator
Policy Planning "Head", Infrastructure & Operations
Transit
Environment Director, Legal Director, Council
'Head", Services & City Services & City
Facilities Solicitor Clerk
Management Assistant Manager, By-Law
. The Internal Auditor (formerly Manager of Finance, now
"Manager Special Projects') also reports to the CAO Solicitor Services
- There is a Manager of Administration reporting to the Manager,
Executive Director dealing with administrative policies Procurement
Services
.
.
.
Executive Director
Infrastructure & Community
Services**
I I I
Director, Director, Director, Parks,
Transportation Infrastructure Recreation &
Services Services Culture Services
Manager, Manager, Manager,
T raflic Engineering & Recreation &
Operations Construction Community
Manager, "Head" Development
Parking Municipal Works Manager,
Operations Operations Parks &
Manager, Cemetery
"Head", Operations
I n1Tastructure &
Transit Environment
"Head"
,
Facilities
Management
. I
i!!'ltdf ..... 'l.rpC)~te . I
I City Council I
.,:.....'.rvices I Chief Administrative Officer ~
i,j[~I;~::[!,1~;} ';';,)i1,V ,
To direct and coordinate the plans, budgets,
personnel, facilities, equipment and
Total FTEs 62 Executive Director of resources of all Divisions that report to this
Span of Control Corporate Services position while representing, and providing
6.0 information in support of, the interests,
requirements and priorities of the Department
internally and externally
Director of Director of Director of Director of City Clerk City Solicitor
Finance Human Information Planning and
Resources Systems Development
Role of To develop and To develop and To plan, manage To oversee the To carry out the To provide legal
Division manage the manage the and support all planning and legislative duties of advice and
financial policies, human resource aspects of the developrnent of the a Municipal Clerk, services to City
practices and policies and corporation's City, including the including providing Council and the
information of procedures on computer and processing of ongoing support to corporation
telecommuni-
the corporation behalf of the cations systems development Council, and to
corporation applications and the provide business
preparation of land and lottery licences
use plan and policies and maintain vital
statistics
Total FTEs 19 7 10 7 12 7
Spans of Control
(excludes 1 2 4 2 8 4
Administrative
Assistants) Note: These figures do not include contract
positions, part time staff or coop students.
Mercer Delta Consulting ORGANIZATIONAL REVIEW - CONFIDENTIAL 44