RIM Park report endorsed

Kitchener Waterloo Record

Byline: PHILIP JALSEVAC RECORD STAFF

Edition: Final

Section: LOCAL Nov 8th 2005

Waterloo council unanimously endorsed a "final report" by city staff last night that outlines the steps taken in response to recommendations from the judicial inquiry into the RIM Park financing fiasco.

"I want to commend everybody for bringing us to this political juncture in our history," Mayor Herb Epp said. "I'm very pleased with it and I hope the people of Waterloo will be pleased with the results." Coun. Jim Bolger said: "I would like to thank the great number of people who have worked on this document . . . it's been a long and tedious process but one that staff and this council should be proud of, as far as I'm concerned."

No public delegations spoke and there was no discussion of any of the specific details of the staff report.

However, Coun. Ian McLean, who moved adoption of the report, said he wants staff to provide ongoing updates of "anything that is still in progress."

The report says the city has responded to all 31 recommendations made by Justice Ron Sills in October, 2003. Chief administrative officer Simon Farbrother says while all the steps may not follow "the letter of the law," they are in keeping with "the spirit and intent" of Sills' recommendations.

Among the key actions taken, Farbrother cited the establishment of a new conflict of interest policy, changes to internal procedures and reviews of legal and financial matters, the passing of a new purchasing bylaw and creation of an audit committee to scrutinize any complex transactions with a value in excess of $500,000.

The RIM Park financing deal, approved in September 2000 is costing the city $145. 7 million over 31 years, which is $32.8 million more than originally anticipated.

Along with business executives in the private sector, Sills was critical of city council and staff for the botched financing arrangement for the huge recreation and sports park in the northeast corner of the city.

For his part, Robert Fleming, a member of a citizens coalition with standing at the RIM Park inquiry, had mixed reviews of the staff report.

"Waterloo has made some truly good inroads to upholding the process of scrutiny and transparency," Fleming said in an interview.

He also said the passing of a new purchasing bylaw and creation of an audit committee, including five professional members of the community, is a "wonderful step."

That being said, Fleming cited a recommendation by Sills to impose a tax increase over one year to create an investment fund to cover the additional $32.8 million in unanticipated costs of the financing deal. Instead, the city chose to redeem notes in Waterloo North Hydro to create a $15 million investment fund.

"My biggest concern is that we have not created any fund as Justice Sills has suggested," Fleming said.

"Generating revenue instead of shifting revenue around are distinctly different," he said, claiming the city has "simply reallocated existing funds."

By doing so, "we give the false impression that things aren't so bad."

He said the city still has to be careful about its discretionary capital spending because "we have to recognize that we're not out of the woods yet."

Epp said he believes the steps taken by the city to resolve about 95 per cent of the issues pertaining to city practices.

But he acknowledged city taxpayers will continue to pay for the park for years to come, so "it doesn't totally close the door" on the thorny issue.

In 2005, the city levied taxes of $3.2 million to cover the financing and debt repayment of RIM Park. That figure is scheduled to go up about one per cent a year on average, but the hydro investment fund provides a cushion by covering the cost of those increases, said Coun. Jan d' Ailly, chairman of finance.

(c) 2005 The Record (Waterloo Region). All rights reserved

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Fiscal responsibility Waterloo's top priority for capital budget; Councillors ponder detailed list of goals and projects in computer- aided exercise

Byline: PHILIP JALSEVAC RECORD STAFF

Edition: Final

Section: LOCAL Nov 4th 2005

In a brain-storming session yesterday, Waterloo council gave its highest priority to the need to "exercise fiscal responsibility" in setting its goals for dealing with the capital budget.

For the first time, council used a complex software program called Expert Choice, designed to assist companies and organizations in decision- making and strategic planning, among other things.

Each councillor used a computer terminal and hand-held device to respond to a host of questions in grading the importance of various objectives.

In the end, fiscal responsibility came out on top. The other goals, in their order of importance, were to "manage the natural environment, build organizational capacity, address service needs, plan for sustainable growth and enhance our quality of life."

Later, council answered questions related to a sampling of capital projects, most proposed for between 2006 and 2008, and graded them from making "no contribution" to "slight, some, good, very good and excellent."

For each project, councillors gave a grading in 17 different categories that fell within the broader context of the main categories or priorities they had earlier voted on.

For instance, they were asked about the value of a project in building civic pride, promoting a healthy and safe community, the return on investment, protecting the environment, nurturing partnerships, and the impact on future budgets.

"We're using a tool to guide us through a decision-making process," Coun. Jan d' Ailly, chair of finance, said in an interview. "It helps us to choose between spending money on things like roads or the library or protecting the environment."

Council did not make any decisions on approving or rejecting any of the budget items, but d' Ailly said "this is helping us to set a framework.

"This process also forces staff to go through the criteria and carefully assess all the projects before they go to council."

While no hard decisions were made, a report will be prepared to outline the councillors' combined grading of the value of the capital projects

.

"It's very hard to say which projects will come out on top," d' Ailly said. "Those calculations to assess the relative weight have not been done yet."

That will be done soon when the set of replies and all the complex variables involved are analysed using the Expert Choice software.

The preliminary budget meeting will lead to other sessions and the setting of the 10-year capital and 2006 operating budgets on Dec. 10.

As an example of the capital projects, councillors were asked to rate a proposed, $2.7-million civic square in the city core in terms of its "building a sense of community."

Every councillor rated it excellent and one pegged it at very good.

The reviews were more mixed on various aspects of most other projects.

They include a new fire station on the east side of the city at a cost of about $3.2 million for the land, building and equipment, a district library branch on the west side of the city at a cost of about $9 million, spending $511,000 for new parking north of Erb Street to serve the core and setting aside $11.7 million in the 10- year capital forecast for new recreation facilities proposed to be built in 2010-11.

City treasurer Bob Mavin said no specific site has been determined for the new parking, which could be a surface lot, a garage or a combination. Similarly, there are no details about the location or nature of the proposed recreational facilities with the money merely recommended to be set aside to respond to anticipated future demand.

"It could be one facility. It could be two or more," he said.

But everything depends on the outcome of a recreation and leisure master plan, which is not expected to be completed until 2007.

Proposed capital spending in 2006 is tentatively pegged at about $30 million.

Council has not yet dealt with its operating budget for 2006 but has set a goal of keeping the tax increase to no more than 4.07 per cent.

(c) 2005 The Record (Waterloo Region). All rights reserved

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In praise of open minds

Byline: THE RECORD

Edition: Final

Section: OPINION Oct 26th 2005

Waterloo Region is at the tipping point. The phrase -- made famous in the bestseller by Elmira's Malcolm Gladwell -- describes the precise moment when something changes after the forces for that change have steadily grown -- and when even those who fought the new idea accept it.

That's the tipping point. And we are nearing that moment in the struggle to streamline, reform and improve the cumbersome, obsolete form of municipal government imposed on Waterloo Region 32 years ago. For this dynamic movement, a number of municipal leaders gifted with open minds deserve praise.

First on the list is Kitchener Mayor Carl Zehr who nudged the region toward the tipping point this week when he e-mailed to every one of the region's 49 elected municipal politicians a challenge to help bring about change.

Zehr wisely avoided specifying what changes should occur, opting instead to advocate a process. He wants the region's seven mayors as well as the regional chair, Ken Seiling, to work together and find a facilitator who could help them explore new opportunities for co- operation, as well as the kind of government structure that would let that evolution occur.

Zehr should be congratulated for his ideas. They are moderate, open-minded and flexible. But Zehr isn't the only person inching Waterloo Region toward the tipping point. In each of the region's three cities, people are finding something to talk about when it comes to reforming the way we govern ourselves -- and achieving the enormous potential contained within our municipal boundaries. Momentum is building.

On the same day the Kitchener mayor e-mailed his message, the majority of Waterloo city council backed a call from Coun. Jan d' Ailly for greater dialogue among all the region's municipal politicians. It was regrettable that Mayor Herb Epp and Coun. Mark Whaley pooh-poohed the reform debate altogether. But the fact that most Waterloo councillors are ready to talk represents real progress. They stand at the tipping point with colleagues throughout this region.

Just three weeks ago, Kitchener city passed a motion calling for the immediate start of negotiations to reform government in the region. Even Cambridge Mayor Doug Craig -- sometimes unfairly portrayed as a belligerent against reform -- is willing to talk about some kinds of change. In the Oct. 11 Record, Craig advocated revising who gets to sit on regional council, an overhaul of the region's police services board, greater scrutiny of regional spending and a freeze on regional government hiring.

So let's be clear and honest. Something is happening. There is a buzz in the air. People are talking. A logjam blocking municipal reform is being picked apart and slowly broken. And so it should be.

The region spent much of the 1990s locked in a frustrating struggle to end the duplication of services, the confusion for taxpayers as well as the inefficiency that comes with having eight municipal governments, eight bureaucracies and far too many elected politicians to provide municipal services for a half million people. And while we got things like a regional transit system and regional garbage disposal, the job was left undone.

That's why we have the status quo -- where the region has one police force but a fire department for every lower-tier municipality. That's why the community is incapable of speaking with one voice to attract tourists to this remarkable and picturesque area. That's why we have separated sewage and water systems -- in clear contradiction to the suggestion from the inquiry into the Walkerton water disaster that the region alone should manage water services.

It gets worse. We have separate libraries systems that are trying, but failing, to co-operate. Planning and development responsibilities are split between eight governments all competing for pieces of tax assessment pie. No wonder we can't open up new industrial lands around Breslau. Meanwhile, our patchwork quilt of different engineering standards drives builders crazy. And threats to local hospital funding demonstrate the need for strong, unified regional advocacy with higher levels of government.

This initiative is not about saving costs. This is about uniting behind a grand vision for our future. Nor is this about merging community identities. Neighbourhoods and local character, whether in Galt or Chicopee or St. Jacobs, transcend political jurisdictions.

The visionaries who are now calling for change might not know exactly where Waterloo Region will end up. They know it is time to start working together and that, at this stage, the journey is as important as the destination. They also likely know that this region could, once again, fail to achieve real, substantial change of the kind that will improve not just living standards but lives. To ensure that doesn't happen, every citizen in this region who believes we can be better than we are, every citizen who knows this region can do more together, must speak out.

Your involvement, your voice can take us beyond the tipping point -- to greater prosperity.

(c) 2005 The Record (Waterloo Region). All rights reserved

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Sobered-up Waterloo wades into budget-making

Kitchener Waterloo Record

Byline: CHRISTIAN AAGAARD RECORD STAFF

Edition: Final

Section: LOCAL Feb 4th 2004

City budget-makers call the money they urge councils to set aside for tough times "rainy-day funds."

It's been raining a lot lately in Waterloo.

The last municipal council, made up largely of the same bumpkins who drove the city into a financial mess with RIM Park, helped shape the 2003 operating budget by dipping into the rate stabilization reserve, the city's major rainy-day fund.

Out came $657,000.

That was just one wet gust in a prolonged storm that has left taxpaying passengers soaked and seasick aboard the Good Ship Waterloo.

Over several years going back to 1999, councils pulled $8 million to $10 million from reserves of one form or another. They tapped savings meant to keep equipment in good shape and the roads plowed during particularly snowy, expensive winters. Now the money isn't there, or isn't there in amounts that keep bean-counters from nervously biting their nails.

The rate-stabilization reserve, which is supposed to offset tax increases when economic downturns leave people particularly worried about their money, contains $200,000.

Fumes, by city-budget standards.

Then there's RIM Park, that spectacular money pit gaping on the city's northeast corner.

Officially, taxpayers are towing along a $1.29-million operating deficit created by the park. Or, it may be around $700,000. Accountants are busy doing the year-end math.

It's already old news that revenue projections for the sports complex and playing fields amount to a bunt instead of a deep drive to the outfield.

So, as a new year picks up speed, Waterloo isn't exactly breezing towards budget-building. It's staggering under the weight of unclaimed baggage left by at least two councils that mistook the incompetence of their administrators for cutting-edge management.

Taxpayers will probably find little comfort in the possible solutions a community budget workshop will discuss Feb. 11 and 12.

The only way out, it seems, is up, as in tax increase.

For a home valued at $200,000, possible hikes range from $15.82 to $421. The low end means service cuts and leaves no room for such needed features as a new library and a fire hall on the city's east side.

At the high end, the city sheds a tonne of RIM Park debt. It's the short-term-pain, long-term-gain option.

The middle option packs a $150 punch.

Where's the silver lining in all this? Well, how about candour?

The two-day workshop, and the information package that goes with it, displays the difficulties and the choices without the blue-sky thinking city hall served in the past.

It seems Mayor Herb Epp's council is prepared to lead the city out of trouble rather than ignore it. Epp has two veteran administrators to help. Chief administrative officer Robert Pritchard and treasurer Bob Mavin signed on after RIM Park collapsed into a scandal.

Jan d' Ailly, the Ward 1 councillor and Epp's finance chief, bluntly talks about the recovery taking a number of years.

There's no squirming around a tax increase, no hemming and hawing or blathering on as if it's only a remote, last-ditch possibility.

Instead, the public is invited to come out and get to know the options. Hold your nose and embrace them, even.

They'll get the city back to dry land sooner or later.

(c) 2006 The Record (Waterloo Region). All rights reserved.

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Waterloo taxes up 10.4%

Kitchener Waterloo Record

Byline: TERRY PENDER RECORD STAFF

Edition: Final

Section: FRONT May 3rd 2004

Memo: Ran with "BUDGET HIGHLIGHTS" which has been appended to the end of this story

Waterloo homeowners will see their 2004 city taxes increase by 10.4 per cent.

That means an additional $67 on the city portion of the tax bill for houses assessed at $163,000 for tax purposes. The 2004 budget also provides for more books in the library, and more bylaw enforcement officers to go after illegally parked cars, unkempt lawns and negligent landlords.

City councillors approved the budget during a special meeting Saturday.

This year's tax increase in Waterloo is by far the biggest among the three cities and Waterloo Region. Cambridge came in with the lowest increase, at 2.8 per cent. Kitchener raised taxes 4.8 per cent, and Waterloo Region's tax rate is up by 5.4 per cent.

The Waterloo increase is also higher than tax hikes in London, Guelph, Hamilton, Richmond Hill, Brampton and Oakville.

The two main reasons for the large tax increase in Waterloo are RIM Park and the draining of reserve funds by the former city council.

The largest part of the tax increase -- 5.1 per cent -- is to pay for the construction and operating costs of RIM Park. The second largest part -- 4.5 per cent -- is to increase the cash levels in the city's many reserve funds that are used to help pay for everything from snowplowing to equipment replacement.

Waterloo Mayor Herb Epp said the reality of the city's finances demanded the tax increase.

"We have to face it head on," said Epp, who added that within months work will begin on next year's budget.

A line-by-line review of expenditures in some departments this year shaved $1.7 million off spending. For next year's budget, Epp wants to expand that exercise to all departments.

"The modified, zero-based budgeting has been very successful," Epp said. "I think the people of Waterloo will certainly think so."

Coun. Jan d' Ailly, chairman of the finance committee, believes this budget, which was approved a couple of months later than usual, puts the city in a forward-looking position.

"It is our opportunity to address one of the key issues we were elected to do -- put the city's financial house in order, put RIM Park behind us, put the decreasing reserve levels behind us, and put the city's finances on a solid footing," d' Ailly said.

"After this budget, when we do our business plans and budgets in the next few years we will be able to deal with the issues ahead of us, and not have to clean up a mess that was left behind."

"The increase this year is about catching up, not going forward," said Coun. Jim Bolger.

The increase can be blamed to a significant extent on excessive revenue projections at RIM Park, Bolger said.

The park finished 2003 with an operating deficit of $1.2 million. That alone is equivalent to a tax increase of about 3.5 per cent.

The education portion of property taxes has yet to be set, while Waterloo Region taxes, which account for about half of a homeowner's property tax bill, will rise 4.1 per cent.

Waterloo councillors voted to hire up to three bylaw enforcement officers.

"All of of us heard about bylaw enforcement during the election," Coun. Ian McLean said.

Fire Chief Max Hussey, who oversees bylaw enforcement, believes the city needs to become more proactive when it comes to ensuring compliance with city statutes.

"Property standards is our biggest issue right now," said Hussey. "We've got to get somebody versed in property standards."

The cost to the city of hiring up to three bylaw enforcement officers is $80,000. Their salaries and benefits are offset by the revenue they bring in from fines. The three additions will join a staff of 12.

The 2004 budget also supports the city's library operations, including the addition of two library assistants. An injection of cash will see the library increase its collections substantially, to the provincial average of 2.5 books per person, up from about two books per capita.

"It's a tremendous step forward in terms of the library collections," said chief librarian Cathy Matyas.

This was accomplished without affecting the tax rate. Councillors voted to delay the physical expansion of the library until 2007- 2008. About $1.4 million will be taken out of the reserve fund for expanding the library and will now be used to buy books instead. This will bring the library's collection up to provincial standards by the end of 2005. "We have to spend more money on the library, no doubt about it," said Coun. Gary Kieswetter.

BUDGET HIGHLIGHTS

Total operating budget: $68 million, up slightly from last year.

Total capital budget: $24.7 million, up from $22.5 million in 2003.

Amount to be collected from property taxes: $38.6 million, up 10.4 per cent from last year.

Assessment growth: $792,000, up slightly from last year.

(c) 2006 The Record (Waterloo Region). All rights reserved.

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Councillors hope to shave tax increase

Kitchener Waterloo Record

Byline: PHILIP JALSEVAC RECORD STAFF

Edition: Final

Section: LOCAL Dec 15 2004

The way things stand now, Waterloo city council is looking at a property tax increase next year of nearly seven per cent, or 6.98 to be exact.

But council voted last night to whittle that down and keep the increase in the 2005 budget to no more than 6.42 per cent. That's down from the double-digit figure of 10.38 per cent for this year. And the city hopes to continue to lower the tax rate. For 2006, it tentatively projects a rate of just over four per cent.

These were some of the figures presented at a meeting to give council with an overview of the proposed budget.

If the city comes in with a 6.42 per cent increase, taxes on the average home valued at $184,000 will be $770, an increase of roughly $46.

Chief financial officer Bob Mavin said the city typically accounts for about 30 per cent of the tax bill, with Waterloo Region eating up about 48 per cent of the pie and the school boards 22 per cent.

BUDGET NOT FINAL

The city's budget is still a work in progress and will not be finalized until early February.

But council is looking at an operating budget for 2005 of $94.6 million, up from $92.4 million this year. The capital budget this year was $24.7 million, with the city now considering an increase to about $32 million.

In an interview, Mavin said the figure is "very tentative."

The 6.42 per cent increase in the operating budget would allow "basically, just maintaining the level of services," Mavin said.

The city plans to raise nearly $40 million from the 2005 tax levy, an increase of about $2.5 million from this year.

Of that, Mavin said, a large chunk is taken up by fixed staffing costs of nearly $1.6 million in wages and benefits -- or about 4.1 per cent of the tax increase -- for about 600 employees under their collective agreements with the city.

"We're locked into that and have no flexibility," said Coun. Jan d' Ailly, chairman of the city's finance committee.

He added that the second-largest factor in the increase is the goal of replenishing reserve funds by nearly $900,000, accounting for 2.31 per cent of the tax increase.

Revenue from such areas as assessment growth and about $120,000 from a 1.6 per cent increase in fees for recreation and leisure services should reduce the net effect of the increased expenses slightly.

"Council has to make some tough choices," Mavin said.

For instance, significant adjustments would have to be made in either expenses or revenues to even begin to include several major projects whose costs are not yet in the budget.

They include $121,00 to begin implementing measures stemming from a student accommodation study, with most of the cost going towards hiring bylaw enforcement officers and an administrative staff person.

The city is also looking at $228,000 to go towards the operating budget of the fire department.

And council is considering setting up an in-house legal department at an annual cost of $260,000.

As well, the public library is seeking $358,000, with only $172,000 of that already included in the budget.

"Bottom line is there is not a whole lot of money left to address the other needs being presented to council," Mavin said.

Meanwhile, the annual debt charge for RIM Park comes in at $4.3 million for 2005.

Of that, $1.4 million will be covered by an investment fund set up through Waterloo North Hydro with the remainder of about $3 million funded by property taxes.

BUILT-IN FEATURE

Servicing the debt, however, will not result in a tax increase as that was done last year and the base level of funding is now built into the annual budget.

It is expected to continue to hover around the $3 million mark in property taxes annually until 2031, Mavin said.

Despite the significant tax increase this year, d' Ailly said the city still had the lowest property taxes in the region, with its share of the tax bill coming in at just under $724 in 2004.

By contrast, the figure for Cambridge was $796 and, for Kitchener, $788.

Although the city is projecting its figure to rise to about $770 in 2005, that's still below the 2004 numbers in the region's other cities, d' Ailly said.

(c) 2006 The Record (Waterloo Region). All rights reserved.

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Waterloo does well to add new faces to council table

Kitchener Waterloo Record

Byline: CHRISTIAN AAGAARD RECORD STAFF

Edition: Final

Section: LOCAL Aug 24th 2005

Five councillors and a mayor make up a kaffeeklatsch, not the sturdy hub of a government minding a $100 million-plus budget.

So Waterloo council did the right thing this week by making room for two more members, as of the municipal election in 2006. Eight names should appear on the ballot. Mayor Herb Epp flat out didn't like the idea, and Coun. Mark Whaley offered qualified opposition.

There seems to be no strong public demand for the change, Whaley said, but if it's going to be made, "make it once, make it meaningful and make it timely.''

His colleagues around the table did just that.

Councillors Jan d' Ailly, Jim Bolger, Gary Kieswetter and Ian MacLean weren't prepared to stick with the status quo of six members, nor were they willing to settle for seven, as proposed by city staff. Nor did they want to hold off any change until the election in 2009.

But the bunch deserving most of the applause is made up of ordinary citizens who might otherwise have been home mowing the lawn Monday night if it weren't for an extraordinary interest in municipal politics.

Steve Lindt, Benton Leong and Bob Williams have spurred this issue along for months, convinced that their fellow ratepayers are ill served by a setup where three people -- three people -- can form the majority vote on important decisions affecting the city. Epp's preference as mayor has been to leave the voting to his five councillors while he steers the meetings.

Smaller city councils were faddish a few years ago under a previous provincial government that often took cost-cutting to unfortunate extremes. Besides merging municipalities -- not a bad plan, really -- it urged local politicians to find additional efficiencies by reducing their own numbers.

For what little they save in political salaries, small councils glide too smoothly along on consensus, which is much easier to build among a handful of members than it is among many.

Years from now when people wonder what happened to water that used to flow from the Waterloo Moraine, they may come to regret the lack of contrary voices on council in the current debate about new housing in the city's northwest corner.

Debate, conflict, the occasional tussle over ideas -- these are good things for local democracy, and the Waterloo citizens who successfully lobbied for a larger council know it.

They believe that Waterloo is under-represented. The average provincial population-to-councillor ratio is about 17,000 to one. In Waterloo, it's around 21,440 to one.

Those numbers raise concerns about whether councillors have the time to take on problems and see the solutions through from start to finish.

As the RIM Park financing fiasco recedes into the past, there's no reason to expect the workload to correspondingly diminish.

"New issues come up all the time,'' Lindt told council Monday night.

The group can also take credit for getting the cart properly back behind the horse.

Epp's concern about fiddling with council at this time has to do with an organizational review of the city's civil service.

The outcome of the review, he argued, might affect workload by reshaping the committee structure. Councillors serve on committees.

The importance of the organizational review had surfaced in the months before Monday's vote, and threatened to overtake the citizens' initiative.

That would have been the old Waterloo Inc. way of doing things, subverting the needs of the political branch of city government, the voters' branch, to the needs of the bureaucracy.

Williams, a political science professor at the University of Waterloo, said what's happening inside city hall shouldn't trump a reform of city council.

The success of the citizens' lobby would have been sweeter had more people taken an interest in the issue in the first place.

A poll conducted for the city this summer ended up with murky results, appearing to find support for a larger council in the responses to some questions, and opposition in the responses to others.

The most telling statistic, though, revealed that 63 per cent of respondents had little or no knowledge of the issue. For taxpayers who didn't tune in before, there may be a message in the way things turned out Monday night.

Sometimes you can fight city hall and win.

(c) 2006 The Record (Waterloo Region). All rights reserved.

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Councillor seeks study of two-tier system

Kitchener Waterloo Record

Byline: Record staff

Edition: Final Oct 14th 2005

Section: LOCAL

Waterloo Coun. Jan d' Ailly plans to introduce a notice of motion Monday dealing with municipal reform.

In an interview, d' Ailly declined to discuss details of the motion. But he said it would reflect his view that problems with the current system should be studied before major change is advocated.

The current, two-tier system of government "is working relatively well," he said. "As of today, I don't see the need for any wholesale municipal reform. But who knows? I don't want to close the door on it."

Kitchener council recently called for area municipalities to engage in "a dialogue around municipal reform with the goal of moving towards one or more municipalities in a single-tier model."

d' Ailly said it's premature to set such a goal. "We can look at possible solutions, but let's understand what our problems are first. That may be possible without dismantling the two tiers of government, he said.

"It could be something as simple as better co-ordination and communication between the cities and the region."

The motion will be debated Oct. 24.

(c) 2006 The Record (Waterloo Region). All rights reserved.

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Mayor's reform challenge; Zehr urges region's politicians to work together with a facilitator

Kitchener Waterloo Record

Byline: TERRY PENDER RECORD STAFF; With files from Phil Jalsevac and Christian Aagaard.

Edition: Final

Section: FRONT Oct 25th 2005

Mayor Carl Zehr wants a facilitator to jump-start negotiations aimed at reforming the delivery of municipal services in Waterloo Region.

At yesterday's meeting of Kitchener city council, Zehr tabled a letter he sent to all elected councillors in the region.

"I am suggesting that together the seven local mayors and regional chair find a facilitator who can help us explore the opportunities for co-operation and the governance structure that would support them," the letter said.

By tabling his letter and making his comments yesterday, Zehr was publicly and officially putting the onus on the other councils in the region to seriously respond to Kitchener's overtures.

"This went out to all 49 elected municipal people in the region," he said. "It is now up to them to come back and respond, and I expect that they would do that through their councils, and we will have to wait, see what happens and go from there."

Zehr's letter doesn't suggest timelines or talk about what kind of structure should replace the existing seven local councils and regional government.

"It very deliberately does not talk about any one particular form or any particular conclusion," Zehr said in an interview.

"As mayor I took it upon myself to say, 'We have to now send some invitation out to everyone in order to start the process.' "

The letter downplays a motion passed by Kitchener councillors on Oct. 3, which called for the immediate start of negotiations aimed at replacing the seven municipal councils and regional government with one or more cities.

The motion, tabled by Coun. Berry Vrbanovic, was roundly denounced by elected officials in Cambridge, Waterloo and at regional council.

Earlier yesterday, Municipal Affairs Minister John Gerretsen said the province is not interested in forcing structural change on municipalities.

But he didn't rule out help with mediation if municipalities want to get a reform process underway themselves.

"If municipal councils came forward with resolutions, where they want to enter into some discussions with their neighbours, for example, and if there is any way the province can assist in that effort by bringing parties closer together on issues . . . we're always willing to play a role. But it is not our primary focus."

Zehr's letter is the latest attempt by Kitchener city council to start negotiations to streamline services and work towards the creation of one or more cities in this region. Currently, there are three cities, four townships and a regional government in this area.

He said a facilitator is needed to help with the discussions. This person doesn't need to be a specialist in governance, Zehr said.

"Once we have agreed upon who we would like to have work with us, I would recommend that we all come together with our entire councils and begin the discussions," Zehr said in his letter.

Several years ago, negotiations aimed at amalgamation and reform led to few changes and a lot of acrimony.

Coun. Vrbanovic praised the mayor for his letter and said he regretted the wording in his own motion earlier this month because it stated the goal was amalgamation of one or more of the cities.

"I'm glad that you focused it away from particular models or specific timelines," Vrbanovic said, "because I think the important issue here is, as you say in your letter, to sit down at a time when nobody is breathing down our backs on the issue and begin some dialogue."

It was after Vrbanovic's motion that Waterloo Coun. Jan d' Ailly began developing one of his own. Last night, the majority of Waterloo council backed his call for greater dialogue among all the region's local politicians.

Nobody during the discussion spoke in favour of amalgamation or moving to a single-tier of government.

"I have not found any appetite among the people of Waterloo to move to one tier or to have a merger," Mayor Herb Epp said.

"I am not prepared to start negotiating something away which the people of Waterloo have not given me or council a mandate to do," he said

The mayor also bemoaned the debate over reform.

"We have enough challenges," he said.

"I didn't need this debate right now. We have enough things on our plate. Maybe in some other cities they don't have enough to do."

d' Ailly's motion called for the city to work co-operatively with the region and neighbouring municipalities "to provide efficient and effective services and to promote community development."

The motion also called on the region to hold informal meetings at least once a year at which councillors of all local municipalities could get together "to facilitate communication, co-operation and issue resolution."

It urged all municipalities to "clearly identify and communicate areas of concern needing resolution."

As well, d' Ailly called for the continuation of a "joint shared services committee" of representatives of Kitchener and Waterloo, meeting on a regular basis at least twice a year.

Waterloo councillors were generally supportive of d' Ailly's motion.

"There are many opportunities where we can continue to engage in roundtable discussions about how we can improve efficiencies," Coun. Jim Bolger said.

Coun. Mark Whaley didn't want to talk about change.

"Just because a dog barks doesn't mean you have to throw it a bone," Whaley said of the call for reform.

"It's an absolute non-issue for my constituents. While this whole idea has been swirling around in the media, I haven't received one phone call or e-mail from my constituents."

(c) 2006 The Record (Waterloo Region). All rights reserved.

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Waterloo voters choose entirely new council; Restoring trust in city hall, giving citizens a voice are priorities for new councillors

Kitchener Waterloo Record

BYLINE: CAROL GOODWIN

EDITION: Final

SECTION: LOCAL Nov 11th 2003

In an astonishing message to their city, Waterloo citizens wiped the slate clean last night, electing a brand new council.

Rookies they may be, but what they lack in council experience they appear to make up in passion and involvement.

In races that were so close that occasional groans of tension were heard in Waterloo's council chamber, the victors were generous.

"Bob Byron lost (to me) by one per cent. Either one of us would have been a great representative," said Mark Whaley, 52, who won Ward 4, the central ward, by 19 votes.

"There were some very close races. Now, there are all fresh new faces. And we all have to hop into this Voyageur canoe and paddle in the same direction. It's been a fractious council. We must now head into more untroubled waters," said Whaley, who was instrumental in getting Waterloo recognized in the recent Nations in Bloom competition.

The winner in Ward 1, the southwest ward, was Jan d' Ailly, a 43-year-old business consultant, who trounced incumbent Scott Jones, and edged former councillor Craig Hoddle and former school board trustee Kathryn Craig.

A grateful d' Ailly said he'd like to thank the voters for "their great endorsement for a voice for change.

"We must put RIM Park behind us, and ensure it does not become an albatross around the city's neck," said d' Ailly.

Jim Bolger, 42, who was watching the results from his home, said he could hardly believe he was the winner in Ward 2, the northwest ward.

Bolger narrowly beat Angela Vieth, who led for a good part of the evening, before losing by about 50 votes. Her campaign manager, Stuart Braid, said he will request a recount.

Bolger, who owns his own management services company, has, in fact just recently moved out of Ward 2 into a new house in Ward 1. This is his first time running for public office.

"I had the desire to work towards improving the city. Ward 2 is where my history is," said Bolger, who praised his wife and campaign manager, Catherine, who has been "a godsend."

Another surprise was Ward 3, the east ward, which contains RIM Park -- catalyst of many voting changes. Gary Kieswetter, 50, edged former school board trustee John Hendry and Vince Morency.

"Everyone ran a good campaign," said Kieswetter from his home. I knew it would be close."

Kieswetter said his first priority would be to "open council up and make sure the citizens have a voice." He said he would also work to fix Waterloo's finances.

Ian McLean, 35, was thrilled to win in Ward 5, the Uptown ward. This was McLean's third try for the core ward.

McLean said his first priority will be to consult with the constituents in his ward on city finances.

"We need to have that discussion ward by ward to rebuild trust in council."

His twin brother, Duncan, ran for regional councillor but lost to Mike Connolly and Jane Mitchell. The McLean brothers are the children of Barbara and Walter McLean.

WATERLOO COUNCIL, 1 PER WARD

Ward 1 Jan d' Ailly

Ward 2 Jim Bolger

Ward 3 Gary Kieswetter

Ward 4 Mark Whaley

Ward 5 Ian McLean

(c) 2006 The Record (Waterloo Region). All rights reserved.

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Budget figures stun Epp

Kitchener Waterloo Record

BYLINE: TERRY PENDER

EDITION: Final

SECTION: FRONT Dec 12th 2003

Waterloo Mayor Herb Epp says he's flabbergasted by the preliminary numbers for the city's 2004 budget.

"We are not going to have a 48 per cent increase, no way," Epp said.

The judicial inquiry into the RIM Park financing scandal recommended the city quickly raise the money to pay off the debt caused by that scandal. That amounts to a charge of $269 for homes assessed at $163,000.

The judicial inquiry's final report mistakenly said that charge was $171.

Epp said during the recent election he was committed to spreading out that special charge over three years.

But even that move calls for a tax hike of 20 per cent next year.

"Now, having said that, we are also going to implement on a short-term basis zero-based budgeting" in February and March, Epp said. "So we may get some savings there."

Zero-based budgeting requires staff and council to go through and justify every expenditure in a bid to cut costs.

"We still have a horrendous increase which I am not happy with so I am looking at other options," Epp said. He said it's too early to specify what the other options are, but he wants to look for savings elsewhere in the budget.

Coun. Jim Bolger wanted to get the financing scandal behind Waterloo as soon as possible, but now he doesn't know how fast the city can raise the money.

"Some people still want to get their chequebooks out. Others, even when it was at $171, said it was impossible to pay. So we will have to see how that one plays out," said Bolger.

RIM Park is not producing the money predicted by city staff. The operating shortfall this year is $1.2 million. Shortfalls are expected in the next two years as well.

"Somebody was sleeping at the switch, absolutely, without a doubt," Epp said of the optimistic revenue projections.

The new chairman of the city's finance committee is Coun. Jan d' Ailly.

"It's fair to say budget pressures are greater than expected, that's absolutely true," d' Ailly said.

The new Liberal government at Queen's Park is increasing hydro rates and that will add at least $300,000 to the budget next year.

"It's baptism by fire to a certain extent when it comes to the budget," Coun. Mark Whaley said.

When he first saw the budget numbers, Coun. Ian McLean called for public consultations.

"It is important that the people have the full context of what we are dealing with," McLean said. McLean is supported by Coun. Gary Kieswetter, who wants public meetings on the budget.

"There is (an operating) shortfall at RIM Park, and we have to make up that shortfall. There was also a fundraising shortfall, and we also have to make up that shortfall," Kieswetter said.

"I almost fell off my chair when they came through with that first option at 48 per cent," he said.

CITY OF WATERLOO BUDGET OPTIONS

48 per cent tax hike: Would apply for only one year. Would raise $14.5 million to be invested and used to make payments on the $32.8-million debt arising from the RIM Park scandal. Doesn't raise enough to cover the $967,000 shortfall in the park's fundraising campaign. Doesn't raise enough to cover the park's $1.2-million operating deficit for this year.

21 per cent tax hike: Would be the first increase in a three-year phase-in of the special levy. Doesn't cover the fundraising shortfall.

16 per cent tax hike: Covers donation shortfall and operating deficit. Ignores judicial inquiry's recommendation to raise funds quickly to cover the $32.8-million debt.

4.7 per cent increase: Services would have to be cut. Donation shortfall not covered.

2.3 per cent increase: Would mean significant cuts to services. Donation shortfall not covered.

(c) 2006 The Record (Waterloo Region). All rights reserved.

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Waterloo tax choices grim; Drained reserve funds, RIM Park debacle make rate hike a certainty

Kitchener Waterloo Record

Byline: TERRY PENDER RECORD STAFF

Edition: Final

Section: FRONT Feb 3rd 2005

The days of financial reckoning are about to begin in the City of Waterloo.

And city politicians want to hear from citizens during two coming workshops about proposed tax increases or cuts in services.

"Public input is critical for us to make the right decisions," Coun. Jan d' Ailly, chairman of the city's finance committee, said during a news conference yesterday.

"We really need to establish the broad-brush priorities for council."

The proposed tax increases range from two per cent, which calls for many cuts to services, to 52 per cent, which includes no service cuts and a special one-time charge to raise the money needed to pay off the deficit from the RIM Park financing scandal.

"Putting our financial house in order will take a few years," d' Ailly said.

"We have some difficult choices ahead."

Taxpayers are facing a 6.7 per cent increase just to maintain services at the current level. For the past four years administrators and politicians took money from reserve funds to pay for the day-to-day operations of the city, d' Ailly said, and those funds must be replenished.

For example, there is no money now in the reserve fund for snow removal.

"We have had a decrease in reserve funds of $8 million to $10 million in the last four years," d' Ailly said. "The way I interpret that is we've been borrowing, robbing ourselves to pay bills.

"We cannot continue to spend more money than we take in."

In about a week's time he expects to have a new business plan for RIM Park. Currently, the park is running an operating deficit of about $700,000 because city staff over-estimated revenues from the facility.

For example, the current business plan predicted the ice pads would be used 10 to 12 hours a day throughout the year. In fact, bookings have dropped off dramatically for the spring and summer months.

"Those were clearly unrealistic expectations for RIM Park," d' Ailly said.

He said council is stressing openness and information-sharing in the budget process.

"We want to be clear, and upfront," d' Ailly said. ''If it's costing us this much we ought to be be taxing this much.

"We ought to make sure we cover the funds to truly pay for what it costs us.''

Citizens and councillors alike have a lot of decisions to make as council grapples with what's shaping up to be one of the toughest budgets in the city's recent history.

One of the tough decisions concerns a recommendation from the RIM Park judicial inquiry. Justice Ron Sills recommended a one-time charge of $263 for each house, based on the average Waterloo assessment of $163,000.

That would raise about $14 million, which could be invested to pay off the $32.8 million owed because of financing problems related to the building of the park.

"Other areas deal with the timing for expansion of the library and the fire hall," d' Ailly said.

"Do we start paying for the library now? Do we start paying for it later on? When do you want the library to come on board? And how much are people willing to pay for that?"

A new fire hall will be needed for the city's east side by 2007.

"How do we start paying for that? Do we start paying for that now, or in 2007?" d' Ailly said.

Workshops to gather community input will be held on Feb. 11 in the Forbes Room at RIM Park and on Feb. 12 in the Hauser Haus in the recreation complex on Father David Bauer Drive. Both sessions begin at 6:30 p.m.

Contact the city at 747-8774 to register. Participants must register in advance to obtain budget information that d' Ailly wants people to read ahead of time.

(c) 2006 The Record (Waterloo Region). All rights reserved.

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Rain upsets budget hopes

Kitchener Waterloo Record

Byline: LIANNE ELLIOTT RECORD STAFF

Edition: Final

Section: LOCAL Jully 13th 2004

Waterloo could end up $1 million short on its budget this year, thanks to a decrease in building permits and shortfalls at RIM Park.

A mid-year review released to councillors yesterday says that if nothing changes between now and the end of December, the city will end the year $1.017 million off the budget set for 2004.

"It's a significant amount of money, but in the grand scheme of things, it's manageable,' said Coun. Jan d' Ailly, chairman of the city finance committee. "We have the numbers early enough that we can deal with them. We'll have to make sure that our belts are tight and we don't spend what we don't have." d' Ailly said the $1 million represents one per cent of Waterloo's total budget, which is more than $90 million.

The largest part of the predicted shortfall, $611,000, is due to a drop in building permits this year.

BUILDING SLOWS

d' Ailly said the decrease is partially caused by a general downturn in the building industry this year.

Weather has also been a factor. A rainy spring discouraged builders from buying permits and beginning their work.

The weather also played a role in RIM Park's expected shortfall, pegged at $267,000. Most of this was blamed on the park's golf course, Grey Silo, which attracted fewer golfers than expected this spring.

Council was told that since the golf season started this year, there have been 36 days where more than five millimetres of rain fell. By this time last year, only 14 days saw as much rain.

Grey Silo was also hurt by competition from other local golf courses, d' Ailly said.

He said it's important to have this mid-year review, something that hasn't been done in the past.

"We are trying to be proactive," he said. "It gives us early notice so that we can deal with any problems."

Meanwhile, council discussed preparing the 2005 budget and asked staff not to recommend higher property taxes to make up for a shortfall.

The 2004 budget said taxes in 2005 should be set at 6.42 per cent.

(c) 2006 The Record (Waterloo Region). All rights reserved.

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One year later: The RIM Park inquiry report; Waterloo council yet to implement most of the recommendations

Kitchener Waterloo Record

Byline: TERRY PENDER RECORD STAFF

Edition: Final

Section: FRONT

Memo: Ran with "THE RECOMMENDATIONS -- A REPORT CARD" which has been appended to the end of this story Oct 20 2004

A year after a public inquiry reported on one of the biggest financial scandals to ever hit a Canadian city, many of the recommendations designed to prevent a repeat of the RIM Park financing fiasco have not been put into practice.

Depending on how you interpret some of the actions taken by Waterloo, only about five of the 31 recommendations from the nearly $3.8-million judicial inquiry have been adopted. City councillors have still not decided on:

A new conflict of interest policy for city staff.

When a special fund will be invested to help pay for the huge recreation complex in the city's northeast.

Whether the marketing and management of the park should be turned over to outside experts.

As well, some of the administrative and procedural safeguards, recommended by Justice Ron Sills, have not been implemented.

His judicial inquiry released its final report and recommendations on Oct. 20 last year.

The report came just weeks before municipal elections saw a new mayor and city council take over and was critical of city politicians, bureaucrats and the private-sector executives who arranged the financing.

Sills' report was touted as a blueprint for improving municipal governance -- and it is a blueprint the city takes seriously, says Waterloo Mayor Herb Epp.

City staff and politicians spent a lot of time studying the report and recommendations, some of which have been adopted, he says, and decisions on others will be made very soon.

"We are making headway," says Epp.

After taking office in December 2003 the new city leaders faced a number of pressing issues that demanded immediate attention, Epp says.

City council first had to wrestle an enormous budget shortfall that resulted in a tax hike of 10.45 per cent for 2004. Following that, city politicians started the search for a new chief administrative officer.

Council has been preoccupied with the hiring, and then firing, of Bob Robertson as the new CAO. Robertson was fired less than a month after he was hired. Recently, he launched an $8.3-million lawsuit against the city for breach of contract and defamation.

Epp says the city will have addressed most of the recommendations by the time the second anniversary of the report's release rolls around in another 12 months.

"Whether or not we will be able to address every one exactly as recommended, I'm not sure of that, and I would never predict that," says Epp.

"But the spirit of them, I think we are going to be much further down the road, and I think we will be able to address all of them in that sense."

Sills held hearings from September 2002 to June 2003 to gather evidence for his report and 31 recommendations that were released on Oct. 20, 2003. This cost more than $3.7 million.

The inquiry was held to find out how the city entered into a lease-style loan with MFP Financial Services Ltd. of Mississauga that more than doubled the cost of RIM Park to $227.7 million.

The city sued MFP, and the two insurance companies that held the debt, Clarica and Maritime Life. An out-of-court settlement reduced the total owing to $145.7 million. That's still $32.8 million more than planned.

Robert Fleming is a leading member of the citizen's coalition that represented taxpayers at the judicial inquiry. Fleming said in an interview that he is angry and impatient with council's lack of action when it comes to implementing the inquiry's recommendations.

"There is no question in my mind it is a beginning, but it is not a completed work by a long shot," said Fleming.

Fleming was reacting to a report on the implementation of the recommendations that was prepared by Bob Pritchard, the city's acting CAO.

"I think for the most part certainly the spirit of the recommendations contained in the Sills' Report have been addressed. And those that haven't been should be addressed, I would suggest, by April 2005," said Pritchard to city council.

"My recommendation is that the new chief administrative officer make an updated report to this council by April of next year," said Pritchard.

One of the key recommendations called for a tougher conflict-of- interest policy for city staff. The inquiry revealed that former chief administrative officer Tom Stockie and former treasurer John Ford enjoyed extensive social contacts with the salesman who arranged the financing, Dave Robson, a former vice-president of MFP.

"We should have something in the next few weeks, but definitely by the end of the year we are going to have it in place," says Epp of a new conflict policy.

Sills did not respond to requests for an interview, but James Caskey, the London lawyer who acted as commission counsel and marshalled the witnesses and evidence for the inquiry, is disappointed with the slow pace when it comes to adopting some recommendations he thought would be easy to implement.

"I would have thought that could have been done pretty readily," says Caskey of a new conflict policy.

Caskey's disappointment is tempered by the knowledge that city politicians have been preoccupied with their search for a new CAO. And while he's quick to give them more time, Caskey also wants to see more of the recommendations implemented in the coming year.

"I would be afraid that the wider the gap between the report and the time they come to look at these things, the less impetus there is," says Caskey.

"I am prepared to err on the side of leniency in my observation because of the difficulty they have had in getting their CAO in place, and say: 'Well, it's an administrative glitch.'

"But I will tell you, if you came to me a year from now, and told me that they were in the same state, I would think they had let the team down, let the ratepayers down," says Caskey.

While the overwhelming majority of the 31 recommendations are aimed at improving the administration of the city, the first three recommendations call for changes to provincial legislation, the Ontario Municipal Act.

But so far the province has not even considered the suggested changes. A committee of municipal and provincial bureaucrats may take up the matter next month. This is a group that meets once a year to consider changes to the rules and regulation that govern municipal financing.

Meanwhile, Epp says he and city council will lobby Municipal Affairs Minister John Gerretsen to adopt the recommended changes to the Municipal Act.

Epp is supported by Kitchener-Waterloo MPP Elizabeth Witmer, who says she will personally lobby Gerretsen to take action on the suggested changes to provincial law.

"The taxpayers in Waterloo deserve that action be taken. If there is a reason why they can't do so, they need to let the citizens know that as well," says Witmer.

"In all fairness I think we have to follow through and make sure action is taken on these recommendations because a lot of time and money and effort were expended to make sure this would not happen to any other municipality in the future, and that there was protection for the taxpayers," says Witmer.

Caskey is keen to see the province act because the leasing sector of the financial services industry is almost entirely unregulated. He wants to see full disclosure of interest rates, payment schedules, commissions and total amounts owing.

There was no such disclosure in the RIM Park fiasco, and city bureaucrats didn't insist on such documents.

When the RIM Park financing agreements were approved in September 2000, city council was told by senior bureaucrats the interest rate was 4.7 per cent, when in fact it was 9.2 per cent. They thought the total cost was $112.9 million, when it was really $227.7 million. And they had no idea MFP paid itself a commission of $11 million for arranging the deal.

One of the most controversial recommendations in the report called for a one-time tax of $269 for each home assessed at $163,000. This would create a $14.1 million pool of money. That money was to be invested in a dedicated fund that would generate enough interest to make the payments on RIM Park's $32.8 million cost over-run.

Instead of imposing this tax on property owners, city politicians took the money out of Waterloo North Hydro. The City of Waterloo is the largest shareholder in that utility. The city had that money in hand by early summer, but it still hasn't been invested.

Epp says the city is taking the advice of financial experts who believe interest rates will increase in the coming months, so the city should wait a while before investing the money.

"And if we invest it at a higher rate then obviously the people of Waterloo will benefit by that. So that's one we haven't specifically done, but the money is there, set aside, as Justice Sills recommended," says Epp.

This was one of the most important recommendations in the report. Justice Sills felt it was so important that he called for a ban on capital spending until that extraordinary cost of $32.8 million had been accommodated in some way.

The day-to-day operations of RIM Park are costing the city much more than originally planned. The park finished 2003 with an operating deficit of more than $1 million. Much of the city's 2004 tax increase was caused by this operating deficit. The park will post another operating deficit this year of $100,000 or less, according to Paul Hettinga of the city's finance department.

"I think there is a legitimate concern about that," says Epp.

When Sills wrote his report during the summer of 2003 it was almost as if he anticipated these difficulties. Another of his far- reaching recommendations said that the marketing and management of RIM Park should be turned over to outside experts who report directly to city council.

This past summer, city council received a marketing plan for the park that was written by KPMG Consulting and Weaver, Tanner and Miller Inc. That report and its recommendations are currently under review by city staff who are expected to report back to city politicians by month's end.

"So we hope by the end of the year we are going to be able to substantially deal with that," says Epp.

But the mayor won't say whether he favours turning over management of the park to independent experts.

"I am going to have to see the report first before I make any comment on that," says Epp.

It became clear during the judicial inquiry into the financing fiasco that Ford and Stockie made many of the key decisions leading up to council's approval of the RIM Park financing. Even though Ford had no expertise in financing beyond traditional municipal bonds, called debentures, he never brought in independent experts to help.

Neither city politicians nor Stockie insisted that Ford obtain outside expertise either, even though city politicians never had a clear understanding of how the deal was supposed to work.

The city's lawyer, William White, was on a limited retainer and he wasn't allowed to review the numbers before the deal was brought to city council for approval.

According to testimony at the inquiry, White was assured by Ford the numbers had been checked. But in fact, Ford didn't verify the schedule of payments, saying he trusted Robson.

Justice Sills made several recommendations to prevent that from happening again. Some, but not all of those recommendations are addressed in a new purchasing bylaw and an audit committee that were set up by the previous council months before Sill's report came out.

"The case now is that expenditures of more than $500,000 have to go to the audit committee. The audit committee checks it out. I am a member of the audit committee, as is Coun. Jan d' Ailly, as chairman of the finance committee," says Epp.

"So there are more checks and balances," he adds.

That committee may retain independent advice when it sees fit.

But Sills wanted a bylaw that specifically requires independent financial and legal advice for city council when any financing is under consideration other than traditional debentures.

Sills also wanted a bylaw that requires any financing, other than debentures, to be based on specific documents setting out the complete terms of the financing arrangement.

He also wanted a bylaw that requires staff to retain independent experts for any expenditures above an amount to be fixed by council.

None of these recommendations are covered by the city's audit committee, and Epp readily admits the city is not adopting the recommendations word-for-word.

"I believe we have addressed the spirit of what Mr. Justice Sills recommended," says Epp.

Based on evidence at the judicial inquiry, the financing for RIM Park was a sloppy affair.

There was no written agreement between the city and MFP that clearly stated the interest rate, payment schedule or total amount owing.

Instead, there was a single, confusing note that Robson sent to Ford.

That note, dated May 26, 2000, implied but did not specifically say the interest rate would be around 4.7 per cent.

The inquiry was told a lawyer should have been at the centre of the transaction, ensuring the city protected itself with a paper trail. And while the inquiry's final report didn't recommend the city hire an in-house lawyer, city council will consider doing just that during the 2005 budget talks.

"The council is on record as supporting in principle having an in- house lawyer," says Epp. "We are waiting for a new CAO to come on board before we put those specifics into practise. I would have hoped by now that we would have done it."

As city politicians and staff continue to work on the recommendations they can be sure of one thing: Caskey is following their progress. The veteran lawyer spent 18 months delving into the RIM Park financing scandal, and he takes an owner's interest in the final report's recommendations.

"It was a very lengthy part of my practice, and I know the effort that Justice Sills put into it, it was enormous," says Caskey.

"And I would not like to think that all that effort just simply resulted in a report to sit on some bookshelf," says Caskey.

Like Epp, Caskey is waiting for a new CAO to permanently take over at Waterloo City Hall.

"I do think when the CAO gets in place, and has read and digested the report, I think you will see some action," says Caskey.

THE RECOMMENDATIONS -- A REPORT CARD

1. That the Province of Ontario amend Ontario Regulation 266/02 under the Municipal Act to require a municipality to retain external legal and financial advice where the total of all fixed amounts of payment required under a financing lease over the term and any possible extensions or renewals thereof, exceeds its Annual Repayment Limit or where the annual financial obligation under a financing lease exceeds an amount equal to 20 per cent of the Annual Repayment Limit.

Not implemented. May be considered next month by a committee of municipal and provincial finance bureaucrats.

2. That the Province of Ontario amend Ontario Regulation 266/02 under the Municipal Act to require that before the bylaw authorizing the financing lease is enacted the lessor in the financing lease shall deliver to the lessee an initial disclosure statement containing inter alia, the complete stream of lease payments, the effective rate of interest, the fee or commission payable for services rendered, the term of the lease, and the total amount of moneys to be paid under the financing lease.

Not implemented. May be considered next month by a committee of municipal and provincial finance bureaucrats

.

3. That the Province of Ontario amend Ontario Regulation 266/02 under the Municipal Act to require that all negotiations and/or discussions pertaining to the terms of a financing lease be conducted at all times by two senior staff persons on behalf of the municipality involved.

Not implemented. May be considered next month by a committee of municipal and provincial finance bureaucrats.

4. That the City enact a bylaw to require that external independent legal and financial advice be retained to advise Council of the precise nature and risk factors associated with any financing arrangement which the City proposes to enter into except debenture financing entered into with the Regional Municipality of Waterloo.

Not implemented.

5. That the City of Waterloo enact a bylaw requiring that prior to the authorization by Council of any financing arrangement, except debenture financing entered into with the Regional Municipality of Waterloo, it must be based on an executed Letter of Intent, Term Sheet or Commitment Letter setting out the complete terms of the financing arrangement.

Not implemented.

6. That the conflict of interest policy statement be amended. The compensation that is paid to a City employee is intended to remunerate him/her for his/her service to the Corporation. A City employee should not solicit or accept any gift, present, favour, or any form of entertainment, the acceptance of which would place an employee under any obligation or compromise. Any gift, present, favour, or form of entertainment which the employee intends to accept should first be disclosed to his/her department head or the person designated for that purpose or the Mayor, and approval should be obtained in writing.

The maximum value of a gift, present, favour or form of entertainment that a City employee may accept be fixed at $25.00.

Not implemented.

7. That the City implement a policy to ensure that any interpretation of a legal document upon which Council will rely when making a decision, be performed by legal counsel and that the opinion of that party must be obtained in writing.

Will be considered during Waterloo's 2005 budget talks.

8. That a reporting system should be established between the Mayor and the CAO. A monthly meeting should take place to review the status of all ongoing projects within each Core Business Unit.

Mayor and CAO meet each Monday morning to review current initiatives.

9. That when any work, the cost or any portion of which is to be raised after the term for which Council was elected ("Major Project") is being undertaken, the CAO shall prepare a weekly status report and provide it to the Mayor.

Not implemented as recommended, but may be covered by the weekly meeting between the CAO and mayor.

10. That members of Council not be allowed to sit in on meetings of the Senior Management Team or any other staff meetings. Information derived by Members of Council should only be obtained by attendance as a member of a committee or as the designated liaison for a Core Business Unit.

Since the election of a new city council no politicians have sat in on SMT meetings.

11. That prior to entering into any Major Project the bylaws and policies should be reviewed and, if necessary revised to cover the Major Project.

City staff are responsible for reviewing appropriate bylaws and policies.

12. That an opinion as to the proper interpretation of words used in any Act, Regulation or Bylaw be obtained from the City solicitor.

To be considered during the 2005 budget talks.

13. That Council shall require staff to retain legal and financial advice from an outside or independent source for any financing arrangement entered into by the City in excess of an amount to be fixed by Council.

Not implemented.

14. That the City shall create a policy requiring that documentation prepared in connection with the financing of a Major Project be reviewed and signed off on by two senior staff members.

Any purchases worth more than $100,000 must be reviewed by the city lawyer.

15. That procurement and tendering policies be clearly established with respect to financial services to be engaged by the City.

Implemented. In April 2003 the former city council passed a new purchasing bylaw months before the report and recommendations were released by the judicial inquiry.

16. That the delegation of any task by the CAO should be in writing, and should contain inter alia, confirmation that RFP or tender was undertaken, evidence in writing of the retainer of any external professionals retained to assist on the project, and the names of other City employees involved in the work. A weekly status report must be provided to the CAO outlining the status of the work, items remaining outstanding and issues not yet resolved.

Not implemented.

17. All work performed on a Major Project should require two persons to perform a review of the transaction on behalf of the City, to attend all meetings, and to report on a timely basis to the delegator and, where appropriate, to Council.

Not implemented.

18. That the City implement a policy requiring two people be assigned to any Major Project that the City is investigating. This will ensure that the potential transaction is subject to "two sets of eyes" and will also provide training for the more junior member of the team.

Not implemented as recommended, but when major projects go before the audit committee for a review more than one senior bureaucrat should have studied the file. City lawyer must also review projects worth more than $100,000.

19. That the City enact a bylaw to prescribe the duties of the office of the Chief Financial Officer.

Not implemented. But draft bylaws have been prepared, and will be adopted by council once a new CAO is hired.

20. That a reporting system be established requiring parties who have had tasks delegated to them to provide a monthly written status report to the delegator.

Not implemented. A city report says: "Expecting the provision of monthly written reports on all delegated tasks is unreasonable."

21. That the Province of Ontario amend the Municipal Act to provide that off balance sheet reporting of municipal obligations on financial statements be forbidden. They are, by nature, misleading and no definitive positive purpose is achieved from such a method of reporting on financial obligations of a municipality.

Not implemented.

22. That the City implement a policy that requires all City employees to utilize a system that brings forward dates when events are to occur.

Not implemented, as city staff are not sure what this recommendation means.

23. That the designation of ''solicitor'' be dropped from the title Clerk/Solicitor, and that ''City Clerk'' be utilized.

Implemented.

24. That instructions for the engagement of the City solicitor for a Major Project be in writing and that they be from the CAO.

Not implemented.

25. That the City institute a policy requiring the City solicitor to keep the CAO advised of all matters upon which he has been retained to act, including the obligation to provide the CAO with a copy of any report which he provides for services rendered at the City.

Not implemented. A city report says: "The city solicitor has approximately 100 files opened at any one time, many of which may be for routine matters such as reviewing subdivision agreements or drafting simple legal documents. It would be impractical to assume the CAO could be advised of all matters in which the solicitor has been required to act."

26. That the engagement letter entered into between the City and its auditors be amended, to place a positive obligation on the auditors to provide the City with comments in writing when a matter comes to its attention which has not been directly referred to it, but which pertains to the business of the City.

Implemented.

27. That the marketing and management of RIM Park and all its components be placed under the supervision of experts, having direct access and reporting requirements to Council.

Not implemented. Consultants wrote a strategic marketing plan for the park and that is currently under study. A full report on the consultant's recommendations is expected by month's end.

28. That user fees established for the various facilities at RIM Park shall incorporate a premium for non-residents of Waterloo or a discount in favour of residents of Waterloo.

Not implemented.

29. That a single assessment be established for one year only to create a fund which when invested properly will provide the City with money to cover the additional $32 million payable over 30 years. The fund shall be impressed with a trust so that future councils will have at least a moral obligation to use that fund only for its defined purpose.

Not implemented as recommended. But city council took the funds out of Waterloo North Hydro to create the fund. That money hasn't been invested yet.

30. That no further capital projects be undertaken by the City until this RIM Park extraordinary cost has been accommodated one way or another.

Not implemented. But while capital projects have been approved city politicians have nearly finished setting up the fund to accommodate the extraordinary costs.

31. That the City retain ownership of Grey Silo, subject to the other observations and recommendations I have made.

May be addressed in a report later this month that deals with the recommendations from a strategic marketing plan that was developed by consultants.

(c) 2006 The Record (Waterloo Region). All rights reserved.

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Waterloo aiming for tax increase of 6%

Kitchener Waterloo Record

Byline: JEFF OUTHIT RECORD STAFF

Edition: Final

Section: LOCAL

Memo: Ran with "BUDGET WORKSHOPS" which has been appended to the end of this story Oct 5th 2005

After struggling to pay off RIM Park debts, Waterloo councillors are pledging to bring their next city tax hike below double digits.

"We've stopped the bleeding and we're moving forward," Coun. Jan d' Ailly said yesterday in unveiling plans for public budget reviews this month. City taxes rose 10.4 per cent in Waterloo this year, the biggest increase by far among area governments.

However, this increase affected only a small part of property taxes.

The average Waterloo homeowner pays $2,446 in property taxes on a house assessed at $184,000. This includes $724 in city taxes.

The bulk of property taxes are for regional services and education.

Waterloo council is now poised to begin its 2005 budget deliberations at a starting increase of 10.5 per cent.

However, council has vowed to trim this increase to 6.4 per cent or below, pending public input.

"We're looking at making choices," d' Ailly said.

Inflation is currently at 1.5 per cent and was 2.7 per cent in 2003.

d' Ailly said expansion pressures are helping to drive up city taxes. These include proposed expansions to fire services, legal staff and libraries.

Council is also hoping to replenish drained reserve funds.

This year, Waterloo council increased city taxes in part to pay for a sizeable operating deficit at its RIM Park recreation complex.

But the biggest financial hit of RIM Park -- $33 million in unexpected financing costs -- has not had an impact on property taxes.

Residents will pay this additional cost on their electricity bills instead.

Drawing on rate hikes since 2001, council is putting $14.1 million from Waterloo North Hydro into a fund that will build interest and retire the outstanding debt.

(c) 2006 The Record (Waterloo Region). All rights reserved.

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Approach municipal reform with open mind

Kitchener Waterloo Record

Byline: JAN D' AILLY

Edition: Final

Section: OPINION

Column: SECOND OPINION Oct 17th 2005

Ever since Kitchener council introduced a motion and a challenge to the other municipalities to initiate reform of the local governing structure, I have been asked, as a councillor for the City of Waterloo, where I stand on this issue and my opinion on how Waterloo should respond.

We should keep in mind that the system we have now is not fundamentally broken. From an economic growth perspective, this region is one of the fastest growing regions in the country, and with the many festivals, cultural, sporting and recreational, educational choices and vibrant communities, this region has a lot to offer its citizens.

As a region, we have a common transit system, common police and ambulance, common health and social services and common low-income housing policies, just to name a few.

We have a regional smart growth strategy that identifies, manages and plans current and future land use in the townships and municipalities from a regional perspective.

We have a directly elected regional council to deal with regional matters and a locally elected council to deal with the local matters.

Many things are done right. Can we do more or better? Of course we can. Is wholesale municipal reform the answer? I am not so sure it is.

Of course, there is always some room for improvement. However, before embarking on a reform bus, we need to understand the scope of the problems.

We need to create a list of the issues that are not getting addressed and we need to understand why they are not getting addressed.

Are these systemic problems, issues of vision, issues of effective co-operation or petty politics? Many challenges can be dealt with through simple co-operation: Give a little, take a little.

Others may require a devolution or centralization of authority, such as water/wastewater management or land development.

Once we understand the scope and magnitude of these issues, then we can consider the best way to approach them.

I completely agree we must continually examine ways to respond better and more cost effectively to the needs of our citizens.

So, taking the time to look at issues, gather the facts and look at a range of options or solutions is always necessary.

However, this review should be done without pre-judging the solution. To assume that some form of a single-tier government is the right answer is putting the cart before the horse.

If Kitchener is serious about looking at a better way of doing things, it would have been preferable, for me anyway, if there were an invitation to investigate a range of issues that need to be resolved, instead of providing me with a solution to a problem that I'm not convinced we have.

In summary, we should always look at better and more cost- effective ways of providing municipal and regional services.

Let's get the specific issues that need to be resolved on the table first, understand the priorities, and then look at the possible solutions.

Tonight, I intend to present a notice of motion at Waterloo council to deal with this issue.

Jan d' Ailly is the Ward 1 councillor in Waterloo. Second opinion articles reflect the views of Record readers on a variety of subjects.

(c) 2006 The Record (Waterloo Region). All rights reserved.

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City targets 4.07% tax hike

Kitchener Waterloo Record

Byline: PHILIP JALSEVAC RECORD STAFF

Edition: Final

Section: LOCAL Nov 23rd 2005

Waterloo is on track to keep the 2006 property tax increase to 4.07 per cent.

City treasurer Bob Mavin said staff devised an operating budget that meets that goal because "council made it very clear they would not go higher than that increase." It's down a few notches from the 2005 tax increase of 6.42 per cent.

If approved, taxes on an average home with an assessed value of $183,000 would increase by $31. On a home assessed at $250,000, the increase comes to $42.

Although there could be some minor fluctuations, Mavin said the city's share of the tax bill is typically 30 per cent, with the region eating up 48 per cent and the school boards 22 per cent.

For 2006, the city is looking at an operating budget of just over $112 million. Projected revenue is about $69.3 million, which leaves $42.8 million to be raised through property taxes, an increase of $1.7 million over this year's property taxes.

An increase of about $1.7 million in staffing costs comes to roughly the same amount and, like last year, is the largest increase among budget items.

It's offset by a growth in revenue but "by itself, that would be equal to a 4.12 per cent tax increase," Mavin said.

Among other major increases, staff are proposing adding $374,000 to reserve funds, particularly the capital reserve. That's intended "to avoid borrowing in the future," Mavin said. "By doing that, we avoid interest costs."

In addition to the $374,000, the staff report calls for allocating $254,000 to a special reserve fund to help phase in the operating costs of a fire station planned to open in 2008 on the east side of the city with 20 new firefighters

.

Other increases are $163,000 to cover rising hydro, gas and fuel costs and $200,000 for operating the Waterloo public library.

The expenditures are partly offset by $1.9 million in increased revenue.

That will come from assessment growth pegged at $1.1 million and $800,000 from other sources.

There's a wide variety of those but the largest by far is $720,000 in dividends from Waterloo North Hydro, in which the city holds a majority ownership of 73 per cent.

The city has also redeemed notes in the utility to create a $15- million investment fund to help cover the financing costs of RIM Park.

The cost for 2006 is pegged at nearly $4.6 million, of which about $3.1 million will be raised through property taxes with the remaining $1.47 million covered by the investment fund.

Servicing the debt, however, does not result in a tax increase, said Coun. Jan d' Ailly, chairman of finance. That occurred in 2004 to provide a base level of funding, he said. And the amount coming out of property taxes should remain relatively constant, hovering around the $3 million mark annually.

The debt won't be paid off until 2031.

"It's like a mortgage payment," d' Ailly said. "It's built into our budget and you learn to live with it."

Meanwhile, an early estimate of capital budget spending puts the figure at $37 million.

"Council is determining its priorities and the capital budget is still in the final stages of development," Mavin said. "It's a work in progress."

Council is planning to deal with approval of both capital and operating budgets at a special meeting Dec. 10.

(c) 2006 The Record (Waterloo Region). All rights reserved.

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City looks past RIM Park fiasco

Kitchener Waterloo Record

Byline: BRIAN WHITWHAM RECORD STAFF

Edition: Final

Section: LOCAL Feb 21 2006

Waterloo's chief administrator unveiled the city's vision last night in a report aimed at moving away from the RIM Park affair that rocked city hall five years ago.

Simon Farbrother presented the sweeping report to council, calling for changes to the structure and culture of the city's administration. It's the first organizational review undertaken since the RIM Park fiasco came to light in 2001. The affair left the city paying $33 million more than expected for the building of the municipal park. "I think this is a chance for us as an organization to say it's time to move on," Farbrother said. "The vast majority of employees were not part of that."

The review was developed over six months at a cost of $100,000.

Council unanimously adopted the the report's 75 recommendations that Farbrother said will make the administration's structure more effective.

The changes largely amount to an internal reshuffling, but Coun. Jan d' Ailly said this is exactly what's needed. "We have evolution here and not revolution."

Key changes include:

Turning the 10-member senior management team into an eight- member corporate team including the chief administrative officer, five general managers, the chief financial and chief human resources officers.

Eliminating the titles of "team leader" and "organizational leader" and using titles that reflect the responsibility.

Restructuring the recreation and leisure services department to include customer service, community development, cemeteries and Grey Silo.

Hiring a new general manager to oversee a redefined corporate services department.

Expanding the communications department to include the director, a new communications specialist and a marketing specialist.

Implementation will be costly, with $315,000 needed for operating costs between now and July.

Another $205,000 will be needed between July and next February. Farbrother said the money has already been approved within the current operating budget.

Farbrother said the document should be seen as a starting point.

"This is about putting the building blocks in place for this organization to be successful over time."

(c) 2006 The Record (Waterloo Region). All rights reserved.

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Waterloo moves on project without mention of money

Kitchener Waterloo Record

Byline: PHILIP JALSEVAC RECORD STAFF

Edition: Final

Section: LOCAL July 12 2006

Some Waterloo councillors believe it was a mistake not to attach a price tag to the motion they approved Monday to establish a library, YMCA and sports fields at the University of Waterloo.

"That should have been in the staff report, and I'm not sure why it wasn't," Coun. Gary Kieswetter said yesterday. "That stuff should be made public." The initial measures council was being asked to approve could cost $300,000 to $500,000, chief administrative officer Simon Farbrother said in an interview.

But he made no mention of that in his public presentation to council.

Nor was there anything in the staff report about the expenses, which pertain to hiring an architect, conducting an environmental assessment and processing a zoning amendment.

Kieswetter said councillors were aware of a rough estimate through their private meetings. But no one mentioned the potential cost at Monday's meeting.

The public was informed only of the big picture and overall cost of the $29-million project and other figures such as the $6 million the Y is expected to contribute and the $9 million the city will spend on servicing UW property.

The preliminary costs may be small in the grand scheme of things, but "certainly, we should have been explicit that we were committing $300,000 to $500,000," Coun. Jan d' Ailly said.

Mayor Herb Epp agreed the information "probably should have been included" in the staff report.

"I don't know why it was left out," he said. "It was probably an oversight.

"The last thing we need is for people to say 'you are trying to hide things from us' . . . the public has every right to know this information."

All three men agreed that staff still have to come back to council for final approval of the expenditures on a case-by-case basis.

Epp said that council has only given approval in principle to the project.

"Everything will be happening in stages and, at any particular time, it's possible that the plug could be pulled on the project."

He hopes that won't happen but said "in reality, we haven't approved the whole thing."

Council voted 4-2 to proceed with the project. Mark Whaley, who favoured a deferral, joined d' Ailly in voting against the staff recommendation.

"There are still too many unanswered questions about this proposal," said Whaley. "The timing is highly imprudent in my mind."

Likewise, d' Ailly raised a long list of questions. "Let's make sure we understand the implications."

But Coun. Jim Bolger argued that councillors have had enough "passionate" debate about the proposal.

"We've studied this to death."

Coun. Ian McLean didn't think the city was rushing things. The final decision is months away, he said.

Staff will also be reporting back to council on an alternative site for a joint facility for the library and Y.

Farbrother told council the city received an unsolicited proposal from a landowner but staff have yet to assess it.

Some councillors said in interviews that Trillium Estates recently offered a site of about three hectares (7.8 acres) on Columbia Street next to a fire station near Fischer-Hallman Road.

The site has some drawbacks, including a berm and large hydro tower. But some councillors feel it's at least worth investigating.

"It's not the most suitable site but it's suitable enough to be looked at seriously," Kieswetter said.

d' Ailly said he believes the land could be purchased for about $2.5 million.

But Epp said the site would not include land for sports fields offered by UW. "The land at the university is superior. It's a much better piece of land."

(c) 2006 The Record (Waterloo Region). All rights reserved.

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