CITY OF VANCOUVER
REGULAR COUNCIL MEETING MINUTES
CITY SERVICES AND BUDGETS
FEBRUARY 6, 1997
A Regular Meeting of the Council of the City of Vancouver was held
on Thursday, February 6, 1997 at 12:35 p.m., in Committee Room No. 1,
Third Floor, City Hall, following the Standing Committee on City
Services and Budgets meeting, to consider the recommendations of the
Committee.
PRESENT: Deputy Mayor Gordon Price
Councillor Nancy A. Chiavario
Councillor Jennifer Clarke
Councillor Alan Herbert
Councillor Lynne Kennedy
Councillor Daniel Lee
Councillor Don Lee
Councillor George Puil
Councillor Sam Sullivan
ABSENT: Mayor Phillip Owen (Leave of Absence)
Councillor Don Bellamy
CITY MANAGER'S
OFFICE: Ken Dobell, City Manager
CLERK TO THE
COUNCIL: Tarja Tuominen
COMMITTEE OF THE WHOLE
MOVED by Cllr. Puil,
SECONDED by Cllr. Chiavario,
THAT this Council resolve itself into Committee of the Whole,
Deputy Mayor Price in the chair.
- CARRIED UNANIMOUSLY
COMMITTEE REPORTS
Report of Standing Committee on City Services and Budgets
February 6, 1997
Council considered the recommendations of the Committee, as
contained in the following clauses of the attached report:
Cl.1: 1997 Operating Budget - Preliminary Report
(i) Funding Environment - Community Services
and Cultural Non-Profit Organizations
(ii) Tourism Vancouver
(iii) Regional Development Cost Charges
Adjustment to Municipal Assist Factor
(iv) City Programs in the Provincial Field
1997 Operating Budget - Preliminary Report
Clause 1
MOVED by Cllr. Clarke,
C. THAT Council approve a base general purposes tax increase to
2.0% to provide for inflation, new programs and structural
changes as reflected in the City s 1997 Operating budget.
D. THAT Council approve an incremental tax increase of 1.0% over
the 1997 base increase to provide for inflation and growth in
the costs of operating the City s sewer system.
E. THAT Council approve an incremental tax increase target of
1.5% as an alternative to major cuts in those areas that
received strong support from the public and to maintain the
liveability of the City.
- carried
MOVED by Cllr. Sullivan (in amendment),
THAT the property tax increase be set at 4.8%.
- LOST
(Councillors Bellamy, Chiavario, Clarke, Herbert, Kennedy,
Daniel Lee, Don lee, Price and Puil opposed)
MOVED by Cllr. Chiavario (in amendment),
THAT the incremental tax increase target in Recommendation E be
increased to 2.5%, making a property tax increase of 5.5% in total.
- LOST
(Councillors Clarke, Herbert, Kennedy, Daniel Lee,
Don Lee, Price, Puil and Sullivan opposed)
The motion to amend having lost, the motion by Councillor Clarke
was put and CARRIED with Councillor Puil opposed.
Clauses 1(i) and 1(iv)
MOVED by Cllr. Puil,
THAT the recommendations of the Committee, as contained in Clauses
1(i) and 1(iv) of this report, be approved.
- CARRIED UNANIMOUSLY
Tourism Vancouver
(Clause 1(ii))
MOVED by Cllr. Puil,
A. THAT the contract for publication services with Tourism
Vancouver not be renewed for 1997.
Tourism Vancouver
(Clause 1(ii))
B. THAT Council direct Tourism Vancouver to allocate within their
annual business plan and budget for 1997, a minimum $600,000
to keep at least one Infocentre in operation at current
service levels.
- LOST
(Councillors Bellamy, Chiavario, Clarke, Herbert, Kennedy,
Daniel Lee, Don Lee, Price, Sullivan and the Mayor opposed)
MOVED by Cllr. Kennedy,
THAT the recommendation of the Committee, as contained in Clause
1(ii) of this report, be approved.
- CARRIED
(Councillors Clarke, Don Lee, Puil and the Deputy Mayor opposed to A)
Regional Development Cost Charges
Adjustment to Municipal Assist Factor
(Clause 1(iii)
MOVED by Cllr. Puil,
THAT the recommendation of the Committee, as contained in Clause
1(iii) of this report, be approved.
- CARRIED
(Councillors Kennedy, Sullivan and the Deputy Mayor opposed to A)
RISE FROM COMMITTEE OF THE WHOLE
MOVED by Cllr. Puil,
THAT the Committee of the Whole rise and report.
- CARRIED UNANIMOUSLY
ADOPT REPORT OF COMMITTEE OF THE WHOLE
MOVED by Cllr. Puil,
SECONDED BY Cllr. Chiavario,
THAT the report of the Committee of the Whole be adopted.
- CARRIED UNANIMOUSLY
The Council adjourned at 12:40 p.m.
* * * * *
REPORT TO COUNCIL
STANDING COMMITTEE OF COUNCIL
ON CITY SERVICES AND BUDGETS
FEBRUARY 6, 1997
A Regular Meeting of the Standing Committee of Council on City
Services and Budgets was held on Thursday, February 6, 1997 at 9:30 a.m.
in Committee Room No. 1, Third Floor, City Hall.
PRESENT: Councillor George Puil, Chair
Councillor Don Bellamy
Councillor Nancy A. Chiavario
Councillor Jennifer Clarke
Councillor Alan Herbert
Councillor Lynne Kennedy
Councillor Daniel Lee
Councillor Don Lee
Councillor Gordon Price
Councillor Sam Sullivan
ABSENT: Mayor Phillip Owen (Leave of Absence)
CITY MANAGER'S
OFFICE: Ken Dobell, City Manager
CLERK TO THE
COMMITTEE: Tarja Tuominen
RECOMMENDATION
1. 1997 Operating Budget - Preliminary Report File: 1605-1
At its meeting on February 4, 1997, City Council deferred its
decision on an increase to property taxes and consideration of the
following reports to the City Services and Budgets Standing Committee
meeting:
- Administrative Report, dated January 23, 1997 entitled
Funding Environment - Community Services and Cultural
Non-Profit Organizations
- Administrative Report, dated December 5, 1996 entitled Tourism
Vancouver
- Administrative Report, dated December 3, 1996 entitled
Regional Development Cost Charges Adjustment to Municipal
Assist Factor
- Administrative Report, dated December 6, 1996 entitled City
Programs in the Provincial Field
Also before the Committee were:
- an Administrative Report, dated January 30, 1997 entitled 1997
Operating Budget - Preliminary Report
- a portion of the Extract of the Minutes of the Regular Council
meeting of February 4, 1997 related to Council's decisions on
the 1997 Operating Budget - Preliminary Report
- the Extract of the Minutes of the Regular Council Meeting of
December 10, 1996 related to the 1997 Budget.
Hugh Creighton, Director of Finance, advised the City is still at
an early stage with dealing with the budget. There will still be an
opportunity to review the budget on April 10, 1997 and make further
decisions. The preliminary budget has no provision for wage increases
to civic staff. Staff advise using as little transitional funding as
possible to give room for 1998.
Ken Bayne, Comptroller of Budgets and Research, with the aid of
overhead slides and a handout (on file), presented the preliminary
budget estimates based on Council's decisions to date, with the
exception of $3.0 million expenditure reduction targets set by Council
on February 4. Also not factored in are wage provisions and the normal
administrative budget review of estimates. Staff will be reporting
back with further options on February 20 after departments have
identified additional revenues and expenditure reductions.
Mr. Bayne and Ken Dobell, City Manager, responded to questions and
clarified options. The preliminary budget estimates are based on a
number of assumptions. The identified sources of revenue may never be
achieved. The budget is still at an interim stage and adjustments will
be reported as the budget process proceeds.
The Committee noted Council, at its meeting on February 4, 1997,
deferred motions on setting a general purposes tax target for the 1997
Operating Budget to the City Services and Budgets Committee to allow
staff an opportunity to clarify the impact of Council's earlier
decisions that day.
Ken Stoke, General Manager of Corporate Services, and Mr. Creighton
responded to questions and advised staff will take direction on whatever
tax target is approved. If revenue shortfalls are identified, staff
will report back on a number of scenarios for the April 10 meeting to
consider the Interim Report on the 1997 Operating Budget.
Council agreed to defer discussion and decision on this report to
later in the meeting following consideration of the other agenda items.
(i) Funding Environment - Community Services and
Cultural Non-Profit Organizations
The Committee had before it an Administrative Report dated January
23, 1997 (on file) in which the Directors of Community Services, Social
Planning and Office of Cultural Affairs provided background information
about funding to local non-profit organizations. The report was in
response to a Council request for information on changes in funding from
other levels of government to non-profit organizations also funded by
the City.
The following motion by Councillor Kennedy was put and carried.
The Committee, therefore,
RECOMMENDED
THAT the Administrative Report dated January 23, 1997 on Funding
Environment - Community Services and Cultural Non-Profit
Communities be received for information.
- CARRIED UNANIMOUSLY
(ii) Tourism Vancouver
The Committee had before it an Administrative Report dated December
5, 1996 (on file) in which the Director of Finance provided background
and information on Tourism Vancouver's relationship with the City. The
Director of Finance also submitted the following recommendations for
consideration, should Council consider eliminating the contract for
services with Tourism Vancouver and wish to extend the cost sharing
policy for City APEC costs to the unexpected increases:
A. THAT the contract for publication services with Tourism
Vancouver not be renewed for 1997.
B. THAT Council direct Tourism Vancouver to allocate within their
annual business plan and budget for 1997, a minimum $600,000
to keep at least one Infocentre in operation at current
service levels.
C. THAT Council direct Tourism Vancouver to fund at least 50% of
the additional City costs associated with APEC, taken from the
Hotel Tax portion of Tourism Vancouver's 1997 business plan.
Mark Andrew, Vice-Chair, and Rick Antonson, President, Tourism
Vancouver, requested any reduction in funding for Tourism Vancouver
occur over three years. Tourism Vancouver has had preliminary
discussions with the Greater Vancouver Regional District on extending
the hotel tax regionally. Regarding funding of the Asia Pacific
Economic Conference (APEC), other sectors of the economy who will
benefit from the Conference should be approached for assistance.
Tourism Vancouver will be pleased to bring the different groups together
for discussions on how they could help with the funding.
Ken Dobell, City Manager, responding to questions, advised APEC
will be a major expense for the Police Department. The Federal
Government, going by past experience, will not respond to concerns about
escalating costs. In addition, APEC organizers have doubled the number
of venues which will mean the doubling of security costs.
The following motion, by Councillor Puil, deferred by Council on
February 4, 1997, was put and LOST.
A. THAT the contract for publication services with Tourism
Vancouver not be renewed for 1997.
B. THAT Council direct Tourism Vancouver to allocate within their
annual business plan and budget for 1997, a minimum $600,000
to keep at least one Infocentre in operation at current
service levels.
(Councillors Bellamy, Chiavario, Clarke, Herbert, Kennedy,
Daniel Lee, Don Lee, Price, Sullivan and the Mayor opposed)
The following motion by Councillor Kennedy was put and carried.
The Committee, therefore,
RECOMMENDED
A. THAT the contract for publication services with Tourism
Vancouver be reduced to $400,000 in 1997, to $200,000 in 1998,
and $200,000 in 1999, subject to an annual analysis and
review.
B. THAT consideration of the following motion be deferred pending
a briefing by the Deputy City Manager on anticipated costs
associated with APEC:
THAT Council direct Tourism Vancouver to fund at least 50% of
the additional City costs associated with APEC, taken from the
Hotel Tax portion of Tourism Vancouver s 1997 business plan.
- CARRIED
(Councillors Clarke, Don Lee, Price and Puil opposed to A)
(iii)Regional Development Cost Charges
Adjustment to Municipal Assist Factor
The Committee had before it an Administrative Report dated December
3, 1996 (on file) in which the Director of Finance presented information
on the issue of the Regional Development Cost Charges and Council's
decision to apply a "50% assist" to all regional development charges
collected in the City. In addition, the Director of Finance submitted
the following recommendations for consideration, should Council consider
the elimination of the municipal assist:
A. THAT Council adjust the municipal assist factor applicable to
regional development cost charges from 50% to 0.0%, and
require new development to pay the full amount upon
introduction of the regional By-law January 1, 1997.
B. THAT the General Managers of Community and Corporate Services
advise the Greater Vancouver Sewerage and Drainage District
and development industry of this action.
Peter Simpson, Greater Vancouver Homebuilders' Association, opposed
the suggested elimination of the municipal assist. The industry has
been hit several times since May with a number of fee increases.
Industry costs have gone up astronomically. The building of homes is a
great generator of jobs. Mr. Simpson appreciated the City's need to
reduce expenditures and requested consideration for reducing the
municipal assist to 25%.
Charles King, Financial Analyst, responded to questions on the
regional development costs charges.
The following motion, by Councillor Puil, deferred by Council on
February 4, 1997, was put and carried. The Committee, therefore,
RECOMMENDED
A. THAT Council adjust the municipal assist factor applicable to
regional development cost charges from 50% to 0.0%, and
require new development to pay the full amount upon
introduction of the regional By-law January 1, 1997.
B. THAT the General Managers of Community and Corporate Services
advise the Greater Vancouver Sewerage and Drainage District
and development industry of this action.
(Councillors Kennedy, Price and Sullivan opposed to A)
(iv) City Programs in the Provincial Field
The Committee had before it an Administrative Report dated December
6, 1996 (on file) in which the General Manager of Community Services
listed and briefly described City programs which have received direct
funding from the Province or which could be considered to lie mostly
within the traditional Provincial mandate.
Ted Droettboom, General Manager of Community Services and Hugh
Creighton, Director of Finance, responded to questions.
The following motion by Councillor Chiavario was put and carried.
The Committee, therefore,
RECOMMENDED
THAT the Administrative Report, dated December 6, 1996 on City
Programs in the Provincial Field be received for information.
- CARRIED UNANIMOUSLY
1. 1997 Operating Budget - Preliminary Report (cont d)
During discussion, some members of the Committee pointed out the
City Choices public surveys identified a number of residents who
preferred to see increased property taxes rather than cuts to services.
Others felt the City should follow a balanced approach of increasing
user fees, increasing efficiencies with service cuts, and protecting
services to those most vulnerable.
The following motion by Councillor Clarke, deferred by Council on
February 4, 1997, was put:
C. THAT Council approve a base general purposes tax increase of
2.0% to provide for inflation, new programs and structural
changes as reflected in the City s 1997 Operating budget.
D. THAT Council approve an incremental tax increase of 1.0% over
the 1997 base increase to provide for inflation and growth in
the costs of operating the City s sewer system.
E. THAT Council approve an incremental tax increase target of
1.5% as an alternative to major cuts in those areas that
received strong support from the public and to maintain the
liveability of the City.
-carried
The following amendment by Councillor Sullivan was put and LOST.
THAT the property tax increase be set at 4.8%.
(Councillors Bellamy, Chiavario, Clarke , Herbert, Kennedy,
Daniel Lee, Don Lee, Price and Puil opposed)
The following amendment by Councillor Chiavario was put and LOST.
THAT the incremental tax increase target in Recommendation E be
increased to 2.5% , making a property tax increase of 5.5% in
total.
(Councillors Clarke, Herbert, Kennedy, Daniel Lee,
Don Lee, Price, Puil and Sullivan opposed)
The amendments having lost, Councillor Clarke's motion was put and
CARRIED.
(Councillor Puil opposed)
(Councillor Bellamy not present for the vote)
The meeting adjourned at 12:35 pm.
* * * * *