2008/02/11 CORPORATE SERVICES COMMITTEE AGENDA
Second MEETING
Monday, February 11, 2008
6:00 p.mC
City Hall, Council Chambers
1) Approval of the January 14, 2008 Corporate Services Minutes.
2) PRESENTATION: STAFF CONTACT:
a) F-2008-09
2008 Municipal Utility Budget Ken Burden
b) TS-2008-15
Proposed Adjustment to Parking Fines Karl Dren
3) NEW BUSINESS:
4) ADJOURNMENT:
MINUTES OF CORPORATE SERVICES COMMITTEE
First Meeting, Monday, January 14, 2008, Chambers, 6:35 P.M.
PRESENT: Mayor Ted Salci, Councillor Victor Pietrangelo, Chair; Councillor Jim
Diodati, Shirley Fisher, Carolynn loannoni, Vince Kerrio, Bart Maves,
Wayne Thomson and Janice Wing
STAFF: John MacDonald, Ken Beaman, Ken Burden, Ed Dujlovic, Serge
Felicetti, Todd Harrison, Alex Herlovitch, Geoff Holman, Karl Dren, Dean
lorfida, Lee Smith, Trent Dark, Lynn Molloy, Denyse Morrissey and Lisa
Wall
PRESS: Corey Larocque, Niagara Falls Review
Rob Lapensee, Niagara This Week
1. MINUTES
MOVED on the motion of CouncillorThomson,seconded by Councillor Fisherthat the
minutes of the December 10, 2007 meeting be adopted as recorded.
Motion: Carried Unanimously
2. 2008 BUDGET PRESENTATION
MOVED by Councillor Wing, seconded by Councillor Thomson that the loose leaf
program be discontinued.
Motion: Defeated with Councillors loannoni, Diodati, Kerrio, Pietrangelo and Mayor
Salci opposed.
MOVED by Councillor Wing, seconded by Councillor Thomson that staff bring back
a report on a policy regarding the use of City funds for Christmas social events for
volunteer groups, committees of Council and staff.
Motion: Carried Unanimously
MOVED by Councillor Wing, seconded by Councillor loannoni that staff include
$200,000 for land purchases in the Main & Ferry C.I.P. area and that the cost of any
purchases be funded from sales of City lands.
Motion: Carried Unanimously
-2-
MOVED by Councillor Thomson, seconded by Councillor Fisher that City Council
supports the Niagara District Airport as a Regional responsibility. That City Council
supports funding the operating costs of the airport from a single source of funding
based on the proportionate share of the Regional tax levy.
Motion: Carried Unanimously.
3. ADJOURNMENT:
MOVED by Mayor Salci, seconded by Councillor Diodati, that the meeting adjourn at
7:49 p.m.
Motion: Carried Unanimously
February 11, 2007 F-2008-09
Nia ara ails
Councillor Victor Pietrangelo, Chair
and Members of the Corporate Services Committee
City of Niagara Falls, Ontario
Members:
Re: F-2008-09
2008 Municipal Utility Budget
RECOMMENDATION:
For the consideration of the Corporate Services Committee.
BACKGROUND:
Staff has prepared the 2008 Municipal Utility Budget to provide accountable and quality
services. Staff has reviewed various factors in preparing the 2008 Municipal Utility Budget.
This report provides information on the various factors that will impact the 2008 revenues
and expenses.
It should be noted that Council has engaged Mike Loudon, P. Eng. to review the existing
rate structure. However, this rate structure review will not be available in time for budget
approval. As a result, staff recommend that the current rate structure be continued
pending the outcome of the review.
The Region of Niagara has provided area Municipalities with the proposed rate increases
for both water (7.6%) and sewer (6.4%) however, these rates will not be finalized until the
Region's Council meeting on February 28th,2008.
REVENUES
CONSUMPTION RATES
For the 2008 year, the City's water consumption rate would increase by 6.4%, from
$0.6024 to $0.6493 per cubic meter. Staff has reviewed the annual flows for water
purchases, and has also reviewed the recent changes in the Region of Niagara's charges
for water supply. Infrastructure .improvement in the City's water distribution system has
helped to reduce water loss. As a result, the billable water consumption has been
maintained at 85% of total.. water purchases. It should be noted that the City has
incorporated the proposed Regional rate increase of 7.6% into the City's rate.
For the 2008 ; tie City's sewer consumption rate would increas by 2.5%, from
$0.854 .0 per cubic metre.
Corporate Services Department
Finance
> i
. ~~w
February 11, 2008 _2_ F-2008-09
The City's 2008 combined water and sewer consumption rate would increase by 4.5% to
$1.525 from $1.456 per cubic metre. The following chart shows a history of previous
years' consumption rates for water, sewer, and the 2008 proposed consumption rates per
cubic metre.
Water Sewer Combined
Rate Rate Rate
2003 $0.484 $0.891 $1.375
2004 $0.514 $0.891 $1.405
2005 $0.561 $0.878 $1.439
2006 $0.578 $0.878 $1.456
2007 $0.602 $0.854 $1.456
2008 $0.649 $0.876 $1.525
SERVICE RATES
Staff has reviewed the monthly service charges for each of the water and sanitary sewer
systems for 2008. The monthly water service charge would increase by 7.0% to $21.49
from $20.07. The sanitary sewer service charge would also increase from $18.58 to
$20.40, an increase of 9.8%.
The City's 2008 combined monthly service charge would increase from $38.65 to $41.88.
The residential ratepayer would pay an additional $5.27 per month or $63.25 per year.
The chart on the next page, shows a history of previous years' service charges for water,
sewer, and the 2008 proposed service charges per month.
Water Sewer Combined
Rate Rate Rate
2003 $16.61 $9.62 $26.23
2004 $18.67 $11.16 $29.83
2005 $20.44 $11.96 $32.40
2006 $19.56 $13.82 $33.38
2007 $20.07 $18.58 $38.65
2008 $21.49 $20.40 $41.89
EXPENDITURES
WAGES AND BENEFITS
Staff has reviewed the expenditure for labour to ensure that sufficient budget is included
to maintain existing levels of service for both the water and sewer systems. The current
complement for the water and sewer divisions is 31 staff. In addition to the frontline staff,
there are supervisory and administrative personnel that support the activities of providing
water and sewer services. An additional amount of $300,000 has been added to the
previous year's amount for increased labour costs relating to Provincial standards, and
service improvements. The increased costs have been equally applied to both the Sewer
and Water budgets.
February 11, 2008 _3_ F-2008-09
DEBT PRINCIPAL AND INTEREST PAYMENTS
During 2008, the payments of interest and principal will remain at $236,756. In the capital
program, should any of the water and sanitary sewer projects require debt financing, the
servicing of the new debt will begin in 2009.
MATERIALS
Staff has reviewed the expenditure for the purchases of supplies, small equipment and
services. Staff has increased this expenditure by an inflation factor of 2% for 2008.
CONTRACTED SERVICES
Staff has reviewed the expenditure for purchases from external suppliers and contractors.
The principal supplier is the Region of Niagara for water supply and sewage treatment.
The Region of Niagara will be finalizing their water charges on February 28t"and as such
City staff have used the proposed rates in the determination of the expenditure budget.
The Region started last year and will continue to bill both a consumption rate and a fixed
metre equivalency rate. This revision separates certain costs and sets appropriate rates
to collect sufficient revenue. Staff anticipates that the Regional consumption rate for 2008
will increase by 7.6%, to $0.554 from $0.512 per cubic metre.
The new fixed metre equivalency rate for water supply from the Region would be the same
rate across the Region, similar to the consumption rate. This new charge has been
developed to pay for the Region's annual payments of principal and interest on water-
related debt. City staff has included this new charge of $164,802 in the City's monthly
service rate. Staff anticipates that the total Regional charge for water supply would be
approximately $9 Million.
The Region of Niagara will continue to bill both a consumption rate and a fixed metre
equivalency rate for sewer treatment charges. In 2007, the Region changed how the
consumption rate was billed. This system wherein, the consumption rate would be based
on a rolling three-year average of sewer treatment flows, will continue for 2008. The
average would be adjusted annually per the most recent year's experience.. As a result,
the annual charge for sewer treatment would become a fixed amount based on the
previous three-year average of flows. Staff anticipates that the Regional consumption rate
for 2008 will increase by 6.4%, to $0.655 from $0.6 per cubic metre.
Similar to the water rates revision, the new fixed metre equivalency rate for sewer
treatment from the Region would be the same rate across the Region. This new charge
has been developed to collect sufficient revenues to pay forthe Region's annual payments
of principal and interest on sewer-related debt. City staff has included this new charge of
$124,953 in the City's monthly service rate. Staff anticipates that the total Regional charge
for sewer treatment would be approximately $11.7 million.
The billing and receipting services, provided by Niagara Falls Hydro, will continue to be
paid on a full cost recovery basis. In addition to existing contracted service costs, staff is
anticipating increased expenditures for system inspections, leak detection, repairs and
rehabilitation programs.
February 11, 2008 _q._ F-2008-09
RENTS AND FINANCIAL
Staff has reviewed the expenditureforAudit Fees, Advertising, UncollectibleAccounts, and
the Sewer Rebate Program. The approval of a Senior's rebate program is included in this
type of expenditure. Ratepayers who are 65 or older and are receiving federal government
assistance would be entitled to an annual rebate of $100, which annually costs
approximately $62,500.
Currently, the City's water bylaw allows for the collection of arrears via the transfer to
property tax accounts. During 2007, the total arrears transferred were $ 483,730. Some
of these transfers related to tenant water accounts which were transferred to the respective
property owners of the tenanted properties. Staff changed the procedures for managing
these tenanted water accounts and will be reporting to Council with a separate report
updating Council on the effectiveness of the changes later in the year.
Tenant water accounts do require a deposit of $230 which is held on account by Niagara
Falls Hydro. Council directed staff to initiate the payment of interest on water deposits.
Niagara Falls Hydro staff has advised that their new software system is able to
accommodate this new payment and that the next software has been successfully
implemented. As a result, these payments of interest on deposits will made in the first
quarter of 2008.
Staff has included an estimated cost of $7,000 for the payment of interest on deposits
required for tenant water accounts.
CAPITAL CONTRIBUTION
Staff has reviewed the expenditure for Capital Contribution. These transfers provide
funding for waterworks and sanitary sewer system construction and maintenance. The
water capital contribution has been increased by $420,000 to $4,500,000, and the sewer
capital contribution has been increased by $145,000 to $4,645,000.
SUMMARY
This report is intended to advise Council of the various factors that will impact the 2008
Municipal Utility Budget. The attached budget financial statements provide detail
information for both water and sanitary sewer services.
Recommended by:
Ken B den, Ac ing Executive Director of Corporate Services
Recommended by:
Ed Dujlovic, E tive Director of Co unity Services
l
Res ectfull submitted: ~ "
P Y
Jo acDonald, Chief Administra ' fficer
February 11, 2008 TS-2008-15
•
Nia ara ails
g
Councillor Victor Pietrangelo, Chair
and Members of the Corporate Services Committee
City of Niagara Falls, Ontario
Members:
Re: TS-2008-15
Proposed Adjustment to Parking Fines
RECOMMENDATION:
1) That Council approve the proposed adjustment to set fines;
2) That Staff forward the attached schedule to the Ministry of the Attorney General's
Office for approval; and,
3) Council forward a resolution to the Regional Municipality of Niagara requesting that
they adjust their set fines to align with the proposed adjustments outlined in this
report. As well, that they eliminate the voluntary payment option.
BACKGROUND:
As part of the 2008 Operations Budget deliberations, Transportation Services Staff
identified adjustments to the current Parking Fine structure. These adjustments directly
impact the proposed operating budget by approximately $123,000.00.
Parking violations have remained the same in the City of Niagara Falls since Council
recommended an increase in December 2001. Staff has surveyed eight local
municipalities to determine existing fine structures, across the Region as illustrated in
Schedule `A'.
Although setfines have not been adjusted in seven years, staffing costs and administration
fees have increased approximately 3% per year. This has resulted in the operating deficit
that is burdening the tax supported Operation Budget. The Parking Control Operation does
not operate on quotas, therefore, the suggested fine adjustments are based on the typical
25,000 to 30,000 violations issued on an annual basis.
Typically, Municipalities apply to the Ministry of the Attorney General's Office for fine
adjustments on a 2 to 5 year cycle. Staff are recommending an average twent -five
ommunity Services Department
ransportation Services
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Working Together to Serve fur Community
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February 11, 2008 2 TS-2008-15
percent (25%) increase be submitted for approval, with the exception of handicap
infractions, at $300.00 and the recently imposed "heavy vehicle" restrictions implemented
in 2007 at $80.00.
In March 2003, City Council approved a recommendation to decrease the set fine from
$15.00 to $10.00 in the Queen Street and Main Street Business Improvement Areas.
Staff is recommending that these set fines are brought in line with the balance of the
municipality to ensure equitable application.
City parking control staff enforce on both municipal and regional roads. To date, the
Regional Municipality of Niagara has not increased or amended their set fine structure
since 1989. The Region still utilizes a voluntary payment option, which is no longer
required, due to the plate denial procedure available to municipalities. Therefore, a vehicle
parked in Niagara Falls on a Regional road may pay a five ($5.00) early payment parking
violation at an expired meter for an eight ($8.00) violation, and elsewhere in the City they
will currently pay a set fine of fifteen ($15.00).
This creates atwo-tier fine structure which must be utilized by City staff. The lower fines
may no longer serve as a detriment to parking in prohibited areas, overnight, or heavy
vehicle restrictions on Regional roads.
In 2007, the City of Niagara Falls issued 25,671 parking violations. The total dollar value
of these violations was $503,663.00. A proposed twenty-five percent (25%) increase to
this fine structure will project into an approximate $125,900.00 increase to the parking
revenue base. This is in line with proposed revenue increases to meet 2008 budget
expectations. Staff is proposing that these fines be reviewed every two years, to determine
appropriate values, related to operational costs.
i
Recommended by:
Karl Dren, Director of Transportation Services
Approved by:
Ed Dujlovi ecutive Director of Community Services
Respectfully submitted:
John c onald, Chief Administrative Officer
Sue Wheeler
S:\General AdministrationlGA 1.01 Reports12008 Corporate ServiceslFeb 11\TS-2008-15 Proposed Adjustment to Parking Fine.wpd
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