2013 Budget Talks by the City of Kitchener Could Increase User Fees

It will cost more to get married, buried and just about everything else in between as city staff tabled plans Monday to increase user fees by an average of three per cent or about double the current rate of inflation.

City councillors began 2013 budget preparations Monday with a long list of increases to user fees.
At this point, the proposed tax-rate increase stands at 2.8 per cent, but it’s already clear some councillors will be trying to reduce that by one percentage point.

Some green fees for city-owned golf courses are going up by 23 per cent, to $32. Renting an ice pad and change room for a skating party is increasing 23 per cent, to $395.50. Getting buried in a city-owned cemetery for an adult in a standard grave is going up 6 per cent, to $1,175.20.

User fees are second only to property taxes as a source of revenue for city coffers. Last year, the city collected $99 million in property taxes and $17.5 million in user fees. When all revenues are included, the operating budget this year totals about $144.4 million.

Before the 2013 budget is struck on Jan. 17, the city plans to hold a public input session on Jan. 7. People can also post questions on Monday, Dec. 10, at 1 p.m., when the city’s chief of financial planning, Ryan Hagey, will answer questions online. There is a dedicated phone line at 519-741-2602.

In his presentation Monday to city councillors, Hagey made it clear staff expects the increased user fees to be approved and in place by Jan. 1.

Coun. Yvonne Fernandes wanted to know why the proposed tax-rate increase and the user-fee hikes are all running ahead of the inflation rate. Hagey said a survey of 170 residents showed a majority of people are willing to pay a tax-rate increase between two per cent and 2.5 per cent.

Coun. Bil Ioannidis said that for the past 10 years, the inflation rate has averaged 2.5 per cent and city councillors need to take that long-term view when setting budgets.

Coun. Dan Glenn-Graham asked about the inflation rate that impacts municipalities, which buy more fuel, asphalt and construction materials than individual consumers. As a result, the inflation rate for cities is significantly higher than the inflation rates for households and consumers, Glenn-Graham was told.

Months ago, city councillors asked staff to prepare a list of changes and spending cuts that would reduce the planned tax rate increase to 1.8 per cent, down from the proposed 2.8 per cent.

The suggested changes include:

• Reducing the fire department staffing through attrition to save $428,000.
• Collect payments from insurance companies when firefighters save a property. This could bring in $200,000 a year.
• Change the way asphalt repairs are done on roadways, saving $128,000.
• Change the way bills are sent out and processed for natural gas, water, sewers and stormwater fees, saving $60,000.
• Savings for $50,000 a year are possible with a new way of handling sick-leave claims.
• Remove the bulk garbage bins from the downtown, saving $29,000.

“All of the options are feasible, although they each carry some risk or impact on existing service levels,” says a staff report.

The preparation of the 2013 budget continues on Thursday with an overview of next year’s capital budget. This covers the building of new infrastructure and upgrades to existing buildings, roads and parks.

On Dec. 6, councillors will review the 2013 operating budget, which covers the city’s day-to-day expenses.

The increased user fees — including marriage licenses, burials in city cemeteries, dog licences, swimming lessons, ice-pad rentals — and other budget information can be viewed at www.kitchener.ca/2013budget.