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Budget Committee Miniutes - 2020/10/2919-1 The Corporation of the Township of Malahide Budget Committee Meeting October 29, 2020 — 7:00 p.m. Due to COVID 19 and Public Health concerns, the Budget Committee met at the Malahide Community Place, at 12105 Whittaker Road, Springfield, at 7:00 p.m. in order to allow for physical distancing and limited public attendance. The following were present: Council: Mayor D. Mennill, Deputy Mayor D. Giguere, Councillor M. Widner, Councillor M. Moore, and Councillor C. Glinski. Council via Videoconference: Councillor R. Cerna and Councillor S. Lewis. Staff: Chief Administrative Officer/Clerk M. Casavecchia-Somers, Information Technology Manager C. Coxen, Director of Financial Services A. Mohile, and Director of Physical Services M. Sweetland. Staff Members via Videoconference: Director of Fire and Emergency Services B. Smith. Chair Mennill took the Chair and called the meeting to order at 7:00 p.m. DISCLOSURE OF PECUNIARY INTEREST and the General Nature thereof: No disclosures of pecuniary interests were declared. MINUTES: No. B20-01 Moved by: Max Moore Seconded by: Rick Cerna THAT the Minutes of the Regular Meeting of the Budget Committee held on December 12, 2019 be adopted as printed and circulated. Carried. 19-2 PRESENTATIONS: No delegations or presentations were received. DRAFT 2020 BUDGET PRESENTATION: - Year 3 of 2019-2022 Multi Year Budget The Director of Financial Services (Treasurer) presented Report No. FIN-20-18 entitled "Year 3 of 2019-2022 Multi Year Budget - Capital". The Treasurer indicated that the focus of this meeting would be to review the proposed 2021 Capital Projects. She noted that she has provided a "snapshot" of the Township's infrastructure in an attempt to highlight the assets that the Township holds and how those assets should be maintained. She advised that the infrastructure lifecycle replacement identified through the Asset Management Plan needs continuous long term investment to maintain service levels and she reviewed the Asset Report Card with the Council. She noted that the assets set out on the Report Card included roads, bridges, culverts, streetlights, sidewalks, vehicles and equipment, pier and land improvements, facilities and guard rails. In response to an inquiry from Councillor Glinski regarding the Port Bruce Pier funding, the Treasurer advised that the project was completed on time in order to qualify for the grant funding. In response to an inquiry from Deputy Mayor Giguere regarding computer costs, the Treasurer advised that the IT Manager does provide a detailed plan containing the IT requirements for the year including software, hardware, licensing, warranties, etc. together with the estimated costs. In response to an inquiry from Councillor Widner regarding the trailer listed on the 2021 Capital Budget, the Director of Physical Services advised it was an emergency replacement of a trailer that recently failed its annual inspection. He noted that quotes had been obtained ranging from $8,000 - $11,000.00. The Director also noted that the wood chipper was moved forward to the 2021 Capital Budget as the current wood chipper has required numerous repairs and it was necessary to replace it in order to minimize downtime and additional costs for a rental unit. In response to an inquiry from Deputy Mayor Giguere regarding the estimated cost for the additional pier work in Port Bruce, the Director of Physical Services noted that this was a new project added to the budget for work that needed to be completed on the pier due to the undermining from wave action. The existing pier contractor is preparing additional information and a costing for a small scale, cost effective solution but at this time the Township does not have a budget estimate. The Deputy Mayor questioned if this problem was a deficiency in the original pier work completed, and the Director advised it was not a deficiency, but has resulted because of the work completed. In 11 om response to a further inquiry, the Director indicated that he was not aware of a grant being available for this restoration project. In response to an inquiry from Deputy Mayor Giguere, the Treasurer advised that there are some capital projects that were not completed in 2019 and 2020 that will be carried forward and will be completed in 2021. Deputy Mayor Giguere advised that she would like to see the entire 2021 Malahide budget, including the Operational Budget, before approving the Capital Budget. She suggested, however, that if some projects had critical timelines, she was willing to consider approval of those at this time. The Chief Administrative Officer/Clerk (CAO) advised that the Municipal Staff will proceed to obtain a budget estimate for the required pier repairs and provide more details regarding the broadband tower project. She noted that the Municipal Staff is not asking for approval to construct the broadband towers at this point, but only an agreement in principle recognizing that more information will be forthcoming and noting that the project will be fully funded by grants/reserves. In response to an inquiry from Councillor Glinski regarding the number and size of trucks anticipated to be purchased, the Director of Physical Services advised that the trucks are replacement trucks and that no new trucks are being added. In response to an inquiry from Councillor Cerna regarding the broadband towers and potential grants, the Treasurer advised it is standard to include all projects in the Capital Budget even if there is 100% grant funding. Councillor Cerna also questioned whether $50,000.00 budget estimate is for a new wood chipper. The Director of Physical Services advised that would be a replacement wood chipper and that he is hoping to obtain a competitive price by tender. Councillor Moore noted that there were some projects that had not been completed in 2020 and asked for an update on the following: 1. Malahide Community Place and South Dorchester Community Hall — line painting of parking lots; 2. Malahide Community Place — lighting in the Sports Storage Building 3. Tracey Street Park Improvements 4. Flagpole in Cenotaph Park The Treasurer responded that all of these projects will be completed in 2021. NEXT BUDGET COMMITTEE MEETING: The next Budget Committee Meeting will be on November 12, 2020 at 7:00 p.m. 19-4 Jim Crane, Malahide Resident, commented that he was pleased with the Council's recent purchase price of a new tractor for about $100,000, which was much less than budgeted amount. The Mayor asked the CAO to provide some additional background relating to a recent Letter to the Editor by Jim Crane in the October 28th edition of the Aylmer Express. Such letter was expressing concerns regarding the proposed water servicing of Springfield. The CAO advised that, after reading the Letter to the Editor from Jim Crane in the Aylmer Express, it was the position of the Municipal Staff that Mr. Crane's assessment of the situation was not accurate. She advised that the Staff would be providing more information to the Council at its next regular meeting on November 5, 2020 but, in the interim, provided the following information to the Committee: • There is legislation in place that stipulates that all municipal water and sewer systems are to be 'self -funded'. What this means is that the costs associated municipal water and sewer systems are paid for by the users of the system. • In the case of the proposed water servicing for Springfield, the 'users' of the system would initially be the developers. The developers would be required to pay development charges and impost fees to connect new homes to the water system. • The Consultants have indicated that extending water servicing to Springfield will cost more than $15 million and will require an annual debt repayment of $290,000 over 25 years. • As stated above, once development commences, it will generate development charges revenue and impost fees that can be used to pay the annual $290,000 debt payments resulting in no impact to the tax levy. • For a brief period between when construction of the water system is completed and the first homes are built, it may be necessary for the Township to pay the annual debt payment 'up front'. It would be the Staffs recommendation that the Township temporarily borrow from our own reserves to pay the annual debt payment and then pay ourselves back using the development charges when they are received from the developers. For clarity, it is not anticipated that the annual debt repayment will result in a significant increase in the tax levy as has been suggested by Jim Crane. The above noted process will ensure that the cost of water servicing to Springfield is borne by the users of the water system, and not the rest of the Malahide taxpayers. im • The key message to take away is that 'development will ultimately pay for development'. The Township may have to `up front' the cost of borrowing ($290,000 annually) for a brief period of time until development charge revenues and impost fees are received, and then we can recoup those costs from the development fees. • Mr. Crane's comment that the existing Springfield community has no issues with their water wells is not pertinent. The goal of extending water servicing to Springfield is to allow for significant growth/new development to secure financial sustainability. In response to an inquiry from Councillor Glinski on how 100 new houses could possibly pay for a $15 million dollar water system, the CAO advised that when Watson Associates completed the Development Charges background study, it was based on approximately 550 — 600 homes. She noted that if Malahide proceeds to extend water servicing to Springfield, other development can occur in addition to the proposed residential development, including agri-industrial and commercial devleopments, which will also contribute to the cost of the water system through development charges. Deputy Mayor Giguere clarified that the $15AM cost was the entire servicing cost without 2/3 grant funding from other governments. The $5M financing takes into account the 2/3 grant funding which would be repaid by $290,000.00 annually over 25 years. Springfield Resident Bill Macintyre noted he had several questions regarding the proposed extension of water services to Springfield and would like delegation status at the next Council meeting. No. B20-02 Moved by: Dominique Giguere Seconded by: Mark Widner THAT Report No. FIN 20-18 entitled "Year 3 of 2019-2022 Multi Year Budget - Capital" be received. Carried. The Committee agreed to defer consideration of the remainder of the Municipal Staff recommendation to approve the 2021 Capital Projects until the next Budget Committee meeting on November 12, 2021. ADJOURNMENT: No. B20-03 Moved by: Chester Glinski Seconded by: Mark Widner • •^ THAT the Budget Committee adjourn its meeting at 8:00 p.m. Carried. t C air--'D. Mennill Clerk — M. Casavecchia-Somers