SPECIAL OTTAWA CITY COUNCIL

19, 20, 21, 22 and 26 February 2007

ANDREW S. HAYDON HALL

10:00 a.m.

DISPOSITION 8

Consideration of 2007 Draft Operating and Capital Budgets

CHIEF CORPORATE SERVICES OFFICER

1. 2007 OPERATING AND CAPITAL BUDGET REPORT

1. That the Draft 2007 Operating and Capital Budget Estimates be received and tabled at the Council meeting of 7 February 2007 for subsequent consideration by Council as Committee of the Whole during the 2007 Budget consideration (delegations and deliberations) to be held February 19 to 28 as required, and

RECEIVED AND TABLED 7 FEBRUARY 2007

2. That any Council approvals impacting the 2007 Operating and Capital Budgets that are made subsequent to the January 24 Council meeting be forwarded to the Committee of the Whole at the same time as the Draft 2007 Operating Budget is deliberated.

See Agenda Item ‘ REPORTS REFERRED TO BUDGET’

2007 OPERATING BUDGET

That Council approve the Draft 2007 Operating Budget Estimates, as revised and the 2007 Options to Address Council Direction, as revised.

CARRIED as amended by the following:

MOTION

Moved by Councillor P. Hume

Seconded by Councillor J. Legendre

WHEREAS The City Treasurer has advised that $73.9 million was required to bring the 2007 tax increase requirement for City Services to zero, and has also identified that sustainable and one-time funding options exist that enable Council to approve an operating budget with no requirement for additional property taxes in 2007 as well as providing for the improved services previously approved by City Council;

AND Whereas the 2007 Draft Operating Budget incorporates maintaining existing services, supporting growth, inflationary increases to some user fees, funding for Ottawa Community Housing investments, other important services enhancements previously already approved by Council, (outlined on page O-9 of the Draft Operating Budget) other new initiatives (Ernst and Young Management Letter, Orléans Arts Centre Lease Payment, Arts Investment Strategy), and this motion incorporates $100,000 to fund 9 adult crossing guards at those schools that meet the warrants and one additional team to Ottawa East and one additional team to Ottawa West for Ottawa Youth on the Move in response to public input;

AND Whereas this motion reduces the 7.5% transit fare increases proposed in the 2007 Draft Operating Budget to 2%, requiring additional funding of $4.6 million in 2007;

AND Whereas this motion incorporates $29.750 million in sustainable budget reductions outlined on pages O-5, O-6 and O-7 of the 2007 Draft Operating Budget (Options 1-8) to reduce 2007 tax increase requirement – reductions that will not result in budget pressures in 2008;

AND Whereas this motion incorporates $16.982 million in budget reductions that involve some degree of risk, outlined on page O-8 of the Draft Operating Budget (Option 1 for $2.6 million; Option 2 using only the $382,000 Moose Creek residential waste solution; Option 3 and Option 5), which could result in budget pressures in 2008;

AND Whereas the 2006 budget surplus from all sources is $23.5 million and this motion authorizes the City Treasurer to apply the entire amount to reduce the 2007 tax requirement for City Services and fund the reduction of the transit fares from 7.5% to 2%;

AND Whereas, after applying the 2006 budget surplus, the sustainable budget reductions, and the budget reductions that involve some degree of risk, $8.281 million is required to bring the 2007 tax increase requirement for City Services to zero, this motion directs the remaining $8.281 million be funded from the $9 million currently in City Council’s Tax Rate Stabilization Reserve Fund, leaving a remaining balance of approximately $719,000;

Therefore be it resolved that the 2007 City of Ottawa Operating Budget be approved as outlined in this motion, incorporating:

· $29.750 million in sustainable budget reductions;

· $16.982 million in risk-based budget reductions;

· $23.5 million from the 2006 budget surplus; and

· $8.281 million from the Tax Rate Stabilization Reserve Fund.

CARRIED

2007 CAPITAL BUDGET

That Council approve the Draft 2007 Capital Budget Estimates, as revised.

CARRIED as amended by the following Motion:

MOTION

Moved by Councillor P. Hume

Seconded by Councillor C. Doucet

Whereas City Council has a number of Strategic Initiatives that are not funded in the 2007 Capital Budget;

And Whereas these initiatives are important to protect the quality of life in Ottawa and represent a small 3% increase in the overall Capital Budget;

And Whereas, if approved, the City Treasurer will be authorized to identify a funding strategy to include the following additions to the 2007 Capital Budget:

Page Project Amount ('000)

284 Natural Area Acquisition (Urban) 4,718 (tax supported)

294 Sidewalks 200 (tax supported debt)

372 Economic Strategy Implementation 1,250 (tax supported)

360 Museum Sustainability Plan 1,360 (tax supported)

369 Child Care Capital Grant Program 2,000 (tax supported)

371 Corporate Security (revised Amt) 885 (tax supported

373 Energy Retrofit 1,000 (tax supported)

379 Hunt Club CC Expansion 3,100 (tax supported/DC)

380 Minor Capital Community Partnership 315 (tax supported)

380 Major Capital Community Partnership 1,200 (tax supported)

381 Park Redevelopment 500 (tax supported)

382 Re-Use of Belltown Dome 825 (tax supported)

384 New Street Lighting 200 (tax supported/DC)

393 Air Quality – Energy Retro 70 (tax supported)

394 Rural Features Acquisition 350 (tax supported)

394 Carp River Restoration 390 (tax supported)

395 Tree Program 1,100 (tax supported)

395 Stream Restoration Project 50 (tax supported)

new St. Joseph Corridor Study Initiatives 36 (tax supported)

Total: $19,549

AND WHEREAS the City has under budgeted for Supplementary Assessment Revenues for the past three years.

THEREFORE BE IT RESOLVED THAT for Budget 2007 Line item Supplementary Assessment Revenues currently detailed as 16,717 be changed to 21,217, and that the additional $4.5 million be contributed to Capital for the projects listed above; and,

further be it resolved that the 2007 Capital Budget of $633,918,000 (Page 2 of the 2007 Draft Capital Budget book) be approved and augmented by 3.08% ($19,549,000) for a total of $653,467,000.

CARRIED

MISCELLANEOUS 2007 BUDGET MOTIONS

MOTION

Moved by Councillor G. Hunter

Seconded by Councillor R. Chiarelli

WHEREAS City Council and the public should have the opportunity to thoroughly discuss City priorities regarding capital investments before they are made;

THEREFORE BE IT RESOLVED THAT staff provides pre-budget reports to the relevant Standing Committees in advance of the draft budget for all capital programs detailing, but not limited to:

· What are the major criteria staff are using to determine priorities;

· What staff will be recommending be ‘above the line’ in the coming year’s budget; and

· What the priority listing is for the next 3-year period.

CARRIED

MOTION

Moved by Councillor M. Wilkinson

Seconded by Councillor G. Hunter

That the Corporate Services and Economic Development Committee be directed to develop a policy to repay the monies drawn from the Water and Sewer Reserve.

CARRIED

Moved by Councillor C. Doucet

Seconded by Councillor P. Hume

That the 2008 Budget be prepared such that the tax supported Capital and Operating budgets are presented together and by function such that the costs for each function are obvious and that the costs are presented such that the consequences for future city management costs are clear.

REFERRED to Corporate Services and Economic Development Committee by the following motion:

MOTION

Moved by Councillor A. Cullen

Seconded by Councillor R. Chiarelli

That the Doucet/Hume Motion be referred to the Corporate Services and Economic Development Committee.

REFERRAL CARRIED

pOLICE SERVICES BOARD report 2

1. 2007 OTTAWA POLICE SERVICES BOARD DRAFT OPERATING AND CAPITAL BUDGETS

BOARD RECOMMENDATIONS

That Council approve:

1. A 2007 Operating and Capital Budget with a 1.7% inflationary increase as set out in the 2007 Ottawa Police Service Budget Book dated 7 February 2007.

2. The Board’s request that Ottawa City Council review the various options available to it with respect to habitual problem landlords, in light of the new, broader powers found in Bill 130 (e.g. including both the New Westminster, B.C. model and other models in Manitoba and Nova Scotia) as well as identifying the necessity for requesting additional statutory authority from the Province of Ontario.

CARRIED as amended by the following Motion:

MOTION

Moved by Councillor M. McRae

Seconded by Councillor B. Monette

WHEREAS the Police Services Act mandates that City Council “shall establish an overall budget” for the Ottawa Police Services Board;

AND WHEREAS City Council has the statutory duty, pursuant to the revised Municipal Act, 2001, “to maintain the financial integrity of the municipality”;

AND WHEREAS City Council supports the hiring of twenty new police officers in 2007;

THEREFORE BE IT RESOLVED that City Council request that the Ottawa Police Services Board:

1. Review their staffing requirements, including those related to the Strategic Growth Initiative, for the 2008 budget; and

2. That the Police Services Board work in conjunction with the City with respect to Council’s 2007 Services review and priority setting exercise to be undertaken this spring.

CARRIED

TRANSIT COMMITTEE REPORT 3

1. COMMUNITY PASS

Committee RecommendationS as amended

1. That Council receive this report for information and consideration as part of the 2007 Draft Operating Budget.

2. That Council endorse the continuation of this program.

RECEIVED

2. 2007 TRANSIT SERVICE PLAN

Committee Recommendation

That Council receive this report for information and consideration as part of the 2007 Draft Operating Budget.

RECEIVED

Reports Referred to the Budget

COMMUNITY AND PROTECTIVE SERVICES COMMITTEE REPORT 2

(Approved by City Council 14 February 2007)

1. Arts Investment Strategy and festivals sustainability plan

Committee recommendationS as amended

That Council approve the following:

2. Consider, during the 2007 budget process, an increased municipal funding plan of $2.5M for local arts, festivals, fairs and special events over a four-year time period, in order to:

· meet existing and emerging community needs;

· achieve average competitiveness with Canada’s six other largest single cities and;

· achieve the greatest capacity of leveraging investment from other levels of government and alternate sources in a timely manner.

3. Implement the proposed increased $2.5M four-year municipal funding plan for local arts, festivals, fairs and special events according to the proposed allocation and timeline identified in the report, and subject to annual budget approvals, as follows:

· 2007 - $1.5M (to be allocated as follows: $650,000 for Festivals, Fairs and Special Events and $850,000 for Arts Investment)

· 2008 - $400,000

· 2009 - $400,000

· 2010 - $200,000

4. That the Festival, Fairs and Special Events funding program ($713,000) be reinstated, as identified in, and subject to approval of, the 2007 Draft Budget.

RECEIVED

(See Hume/Legendre motion re 2007 Operating Budget above.)

DEPUTY CITY MANAGER, PUBLIC WORKS AND SERVICES

(Motion 66/12 referred to the 2007 Budget Process by Council 11 October 2006)

1. Bridge Street and south river drive – new traffic control signal

REPORT RECOMMENDATION

That Council receive this report for information when considering the 2007 Capital Budget.

RECEIVED

By-laws Three Readings

2007-81 A by-law of the City of Ottawa to amend By-law No. 2002-189 respecting licensing fees.

2007-82 A by-law of the City of Ottawa to amend By-law Number 170 of 2000 of the old Corporation of the City of Gloucester respecting licence fees for master plumbers and plumbing contractors.

2007-83 A by-law of the City of Ottawa to amend By-law No. 19-95 of the old Corporation of the Township of Goulbourn respecting licence fees for master plumbers and plumbing contractors.

2007-84 A by-law of the City of Ottawa to amend By-law No. 135-2000 of the old Corporation of the City of Nepean respecting licence fees for master plumbers and plumbing contractors.

2007-85 A by-law of the City of Ottawa to amend By-law Number L6-2000 of the old Corporation of the City of Ottawa respecting license fees for plumbing contractors and master plumbers.

2007-86 A by-law of the City of Ottawa to amend By-law No. 29-00 of the old Corporation of the City of Vanier respecting licence fees for master plumbers and plumbing contractors.

2007-87 A by-law of the City of Ottawa to amend By-law Number L6-2000 of the old Corporation of the City of Ottawa respecting licensing fees for certain refreshment vehicles.

2007-88 A by-law of the City of Ottawa to amend By-law Number 20-85 of the old Corporation of the City of Cumberland respecting licensing fees for certain refreshment vehicles.

2007-89 A by-law of the City of Ottawa to amend By-law Number 170 of 2000 of the old Corporation of the City of Gloucester respecting licensing fees for certain refreshment vehicles.

2007-90 A by-law of the City of Ottawa to amend By-law No. 31-91 of the old Corporation of the Township of Goulbourn respecting licensing fees for certain refreshment vehicles.

2007-91 A by-law of the City of Ottawa to amend By-law No. 139-00 of the old Corporation of the City of Kanata respecting licensing fees for certain refreshment vehicles.

2007-92 A by-law of the City of Ottawa to amend By-law No. 135-2000 of the old Corporation of the City of Nepean respecting licensing fees for certain refreshment vehicles.

2007-93 A by-law of the City of Ottawa to amend By-law No. 82-2000 of the old Corporation of the Township of Osgoode respecting licensing fees for certain refreshment vehicles.

2007-94 A by-law of the City of Ottawa to amend By-law No. 43/93 of the old Corporation of the Township of Rideau respecting licensing fees for certain refreshment vehicles.

2007-95 A by-law of the City of Ottawa to amend By-law No. 29-00 of the old Corporation of the City of Vanier respecting licensing fees for certain refreshment vehicles.

2007-96 A by-law of the City of Ottawa to amend By-law No. 64 of 2000 of the old Corporation of the Township of West Carleton respecting licensing fees for certain refreshment vehicles.

2007-97 A by-law of the City of Ottawa to amend By-law No. 2004-239 respecting permit fees for temporary signs.

2007-98 A by-law of the City of Ottawa to amend By-law No. 2005-481 respecting taxi licensing fees.

2007-99 A by-law of the City of Ottawa respecting Committee of Adjustment fees.

2007-100 A by-law of the City of Ottawa to impose fees for planning applications and to repeal By-law No. 2006-24.

2007-101 A by-law of the City of Ottawa to establish certain fees and charges in the Department of Corporate Services for services, activities, information and use of City property.

CARRIED