General Issues Committee (Budget)

That the agenda for the January 30, 2024 General Issues Committee (Budget) meeting, be approved, as amended. Result: MOTION,

That the minutes of the January 25, 2024 and January 26, 2024 General Issues Committee (Budget) meetings, be approved. Result: MOTION,

WHEREAS, Council is in the midst of the 2024 Budget Review; WHEREAS, Council has referred a business case for Litter Management Service Enhancements to the 2024 Budget listed in the Budget as item 39 of the Council Referred Items; WHEREAS, in Report PW23076, respecting Litter Management Service Enhancements a survey was completed and the findings concluded that 62% of respondents answered that litter within the city is a big problem and also citied that the downtown and Business Improvement Areas (BIAs) would benefit from enhanced litter cleanup services; WHEREAS, the total recommended ask in the report PW23076 an annualized operating budget of $2,073,600 and 27.96 full-time equivalent employees (FTE), a capital budget of $2,245,000, and operating impacts from capital beginning in 2025 of $307,000; and WHEREAS, Council has been charged to find savings in the 2024 Budget while aligning to the Council Strategic Priorities of Safe and Thriving Neighborhoods and Economic Sustainability. THEREFORE, BE IT RESOLVED: That staff be directed to report back to General Issues Committee (Budget) with the details of the new Alternative 3 to Report PW23076, Litter Management Service Enhancements with cost implications to the 2024 Budget on February 15, 2024, in order to prioritize downtown enhancements, expanded street sweeping in BIAs, broadened litter collection in parks and trails and the ability to promote and support volunteer cleanup programs. Result: MOTION,

WHEREAS, in 2011 Council voted 8-7 to approve a motion tabled by Ward 12 Councillor Lloyd Ferguson and Ward 11 Councillor Brenda Johnson that the budget submitted by the Hamilton Police Services Board of a $130,752,220 increase or 4.97% “be referred back to the Police Services Board requesting further review and consideration of their budget”; WHEREAS, in 2024, the Hamilton Police Services Board has put forward a total budget increase of $19,826,637 or 10.24% for a total budget of $213M; WHEREAS Mayoral Directive MDI-2023-02, released on August 31, 2023, states that the City of Hamilton must “reduce the burden on residential property taxes” and all budget asks are reviewed prior to submission “to ensure that redundancies and efficiencies have been identified and addressed and that program lines are assessed for ongoing public benefit before continued funding is recommended”; WHEREAS further deliberation by the Hamilton Police Services Board toward this directive may result in finding further redundancies and efficiencies; WHEREAS the City recognizes its fiduciary obligation to fund any mandatory capital costs as outlined in the Police Services Act 4(3).; and General Issues Committee (Budget) January 30, 2024 Minutes 24-001(f) Page 8 of 24 WHEREAS, on January 26, 2024, the General Issues Budget (Committee) approved a motion from Ward 15 Councillor Ted McMeekin and Ward 11 Councillor Mark Tadeson that, “Hamilton City Council go on record to embrace a municipally generated tax c

Staff be directed to review the Hamilton Apartment Rental Program inclusive of the Tenant Support Program, Safe Apartment By-Law, and Renovation License & Relocation By-Law programs and report back on any opportunities for 2024 Tax Levy savings from the coordinated and staggered implementation of the program. Result: MOTION,

WHEREAS, On June 14, 2023, at the General Issues Committee (GIC) meeting, Hamilton Health Sciences Corporation and St. Joseph’s Healthcare Hamilton provided an overview of major hospital redevelopment projects to seek support to work with City staff to explore local share funding options. WHEREAS, on November 15, 2023 staff presented Report FCS23108, Hospital Capital Contribution to the General Issues Committee that directed staff to report back to the General Issues Committee with recommendations on financing options for the City’s local share contribution in Q1 of 2024; WHEREAS, The Ontario Government provides funding for hospital capital projects under the Health Infrastructure Renewal Fund, Major Capital Projects Program and project planning WHEREAS, the Ontario government funds 90% of eligible hospital construction project costs and 100% of eligible planning, design, financing and transaction costs. The balance of the construction project costs, hospital furniture/ equipment and non-shareable costs including constructing a parking facility or renovating or constructing a gift or coffee shop which are revenue producing are the financial responsibility of the hospital funded under the Local Share Plan WHEREAS, the local share is estimated at $363.6 M for HHSC and $265.0 M for SJHH. General Issues Committee (Budget) January 30, 2024 Minutes 24-001(f) Page 10 of 24 WHEREAS, expected contributions from the hospital foundations of between 25% and 28% of the local share, there

WHEREAS, Council recognizes affordability concerns in the community given the recent periods of high inflation and rising interest rates; WHEREAS, the Mayor directed staff through MDI-2023-02 to reduce the burden on residential property taxes by prioritizing the utilization of debt and emergency reserves while responsibly maintaining the City’s credit rating; General Issues Committee (Budget) January 30, 2024 Minutes 24-001(f) Page 11 of 24 WHEREAS, the proposed 2024 Tax Budget reflects a total Development Charge exemptions expense of $62 million, a year- over-year increase of 300% WHEREAS, the proposed 2024 Tax Budget recommends a three- year phase-in strategy for unfunded discretionary development charges exemptions provided under the City’s Development Charges Bylaw with funding from the Unallocated Capital Levy Reserve of $9.57M; WHEREAS, the proposed 2024 Tax Budget recommends the continuation of an eight-year phase-in strategy that leverages $6.50M annually between 2023 to 2030 to cover the shortfall in historical discretionary Tax Supported DC exemptions incurred from 2013 to 2020; THEREFORE, BE IT RESOLVED: (a) That staff be directed to review the phase-in strategy for discretionary development charge exemptions over a longer timeline that is sustainable while reducing the tax impact in 2024 and report back to General Issues Committee (Budget) with a recommended adjustment prior to the conclusion of the 2024 budget process; and (b) That staff continue the annual proce

WHEREAS, the 2024 Capital Budget Waste Management Fleet Acquisition Project Number 5120051501 contemplates replacing nine 2018 model year waste handling units (packers) at a net levy impact of $1.195M; WHEREAS, this purchase will replace current diesel powertrain units with compressed natural gas (CNG) powertrain units as per previous Council direction; WHEREAS, moving from diesel to CNG powered units will require additional investment in CNG fueling stations, which is included in the budget request; WHEREAS, there are no commercially viable zero carbon powertrain options currently available in the vocational truck market; WHEREAS, new commercially viable low or no-carbon powertrain options including hydrogen, hybrid and battery electric options are expected to come to market within the next three years; WHEREAS, new diesel engine powertrain systems offer substantial emissions reductions over their older model year counterparts due to changes in regulatory frameworks; WHEREAS, the City of Hamilton views CNG be a transitional fuel source until commercially viable zero-emission options become available; WHEREAS, 16 additional diesel units are scheduled to begin a replacement process in 2027. THEREFORE, BE IT RESOLVED: That staff be directed to report back to the General Issues Committee (Budget) with the cost implications to the 2024 Budget on February 15, 2024, of replacing the current block of nine diesel waste packer units in a like-for-like manner and the removal of the add

That the General Issues Committee recess until 12:45 pm. Result: MOTION,

That the consideration of Report FCS24002, as Amended, respecting 2024 Tax Supported Budget and Financing Plan, be deferred to the February 15, 2024 General Issues Committee (Budget) meeting: (a) That the proposed 2024 tax supported budget and financing plan be approved, inclusive of: (i) The net tax levy of $727.1M, representing an increase over 2023 of $63.2 M, for City Departments, as detailed in Appendix “A” to Report FCS24002 and inclusive of Business Cases and Council Referred Items outlined in Appendix “C” to Report FCS24002; (ii) The Capital Levy of $162.3 M, representing an increase over 2023 of $20.8 M; (iii) The Area Rating Special Capital Re-Investment Levy of $13.4 M, representing no change over 2023; (iv) The net tax levy of $267.3 M, representing an increase over 2023 of $16.5 M, for external Boards and Agencies inclusive of proposed service level adjustments as outlined in Appendix “G” to Report FCS24002; (v) The introduction of a Special Hospital Redevelopment Levy of $12.0 M, representing an average residential tax increase of 1.0%; (v) One-time financing of $72.3 M to support the Housing Sustainability and Investment Roadmap as outlined in Appendix “E” to Report FCS24002; (vi) One-time financing of $24.1 M to phase-in statutory and discretionary development charge exemptions permitted under the Development Charges Act, 1997 and the City of Hamilton’s Development Charges Bylaw as outlined in Appendix “E” to Report FCS24002; (vii) One-time financing of $18.4

That the financial impact of Provincial policies and downloaded expenses be included as an individual line item on the 2024 City of Hamilton property tax bills and accompanying property tax information package. Result: MOTION,

WHEREAS, the Transportation network refer to the roads distribution network that facilitates the safe, accessible, and efficient movement of people, goods, and services across the City. It encompasses road pavement, active transportation, traffic assets, as well as the engineered structures including bridges, major culverts, and retaining walls, etc. within the transportation network; WHEREAS, Public Works Department is entrusted with delivering the capital program, as it relates to roads construction, rehabilitation and reconstruction projects and programs for the City of Hamilton's approximate 6,500 lane- kilometers of road network; WHEREAS, Public Works Department is assigned the responsibility of formulating capital investment plans for the Transportation network, encompassing long-, medium-, and short-term strategies, and delineating the costs associated with executing capital rehabilitation and reconstruction projects and programs; THEREFORE, BE IT RESOLVED: (a) That the General Managers of Public Works and Finance & Corporate Services, be directed to report back to the General Issues Committee by the second quarter of 2024 following the: (i) examination of the entire capital planning procedure in creating capital program pertaining to the Transportation network, independent of department or division responsible for executing the capital works; (ii) examination of the historic Transportations network capital funding levels, adjusted for inflation, compared to the 2024 c

WHEREAS, the City has and continues to engage consultants to complete work when specific expertise is required; WHEREAS, a review of the use of consultants would provide Council with the frequency as well as a listing of the expertise the City requires on an ongoing basis; and WHEREAS, providing staff with training opportunities to acquire the specific expertise would result in the potential for long term cost savings by having the work currently completed by consultants, completed by staff. THEREFORE, BE IT RESOLVED: (a) That staff be directed to review and report back to the General Issues Committee with an interim report by the second quarter of 2024 respecting the projects the City has engaged consultants to frequently complete and any upcoming projects; and General Issues Committee (Budget) January 30, 2024 Minutes 24-001(f) Page 20 of 24 (b) That staff be directed to evaluate the potential of long term cost savings by reviewing the list of projects, the expertise that was/is required and make recommendations for having this work completed by City staff by: (i) Offering training opportunities; (ii) Offering inter-departmental opportunities for staff with expertise; (iii) Hiring staff with the expertise required; and (iv) Include a review of the labour market and competitiveness of the City’s ability to bring the expertise in house. Result: MOTION,

WHEREAS, the City of Hamilton phased out the preparation of Traffic Control Plans as per Ontario Traffic Manual (OTM) Book 7 by Qualified Persons, implementation of the temporary road closure with associated Roads and Traffic Plans in 2012 due to emergency response requirements, safety and liability risks, road maintenance priorities throughout the City, and staffing shortages due to the volume of events; WHEREAS, the Special Events Advisory Team (SEAT), led by Healthy and Safe Communities (H&SC) is a cross-departmental team that is comprised of City of Hamilton staff from 15 municipal divisions to facilitate and support public events taking place on City property and, in some cases, events on private property that have a significant impact on City services; General Issues Committee (Budget) January 30, 2024 Minutes 24-001(f) Page 21 of 24 WHEREAS, SEAT ensures that these events have all the necessary permits, permissions, and insurance so that events are safe for organizers, participants, the corporation, and citizens; WHEREAS, in 2023, there were 170 major events and 250 community-level events, with a yearly average of approximately 400 events each year; WHEREAS, event organizers are responsible for paying for various City-issued permits and licences, providing the City with proof of insurance from a 3rd party insurer, are responsible for the preparation of Traffic Control Plans as per OTM Book 7 to support all events that require a temporary closure, plus the implementatio

That the Rules of Order be waived to allow for the introduction of a motion respecting Final Global Budget Number. Result: Motion

WHEREAS the 2024 tax levy increase as of the end of deliberations on January 30 stands at 6.9%; THEREFORE, BE IT RESOLVED: That the City Manager be directed to report back by February 15, 2024 at the General Issues Committee (Budget) meeting (if not earlier), indicating how the final global budget number can be reduced to 4% maximum and providing the benefits/challenges of this direction. Result: MOTION,

That there being no further business, the General Issues Committee (Budget) be adjourned at 2:52 p.m. Result: MOTION,