MINUTES

Of a Meeting of the Council of the City of Kenora

-
City Hall Council Chambers
Members Present:
  • Councillor R. Bernie, 
  • Councillor L. Koch, 
  • Councillor B. Manson, 
  • Councillor L. Moncrief, 
  • and Councillor G. Chaze 
Members Absent:
  • Mayor A. Poirier 
  • and Councillor K. Van Belleghem 

Deputy Mayor Manson called the meeting to order at 9:00 a.m.

Councillor Chaze read the City's Land Acknowledgement. 

Any Members of Council to declare any Pecuniary Interest and the General Nature Thereof pertaining to any items as follows:

On today's agenda or from a previous meeting;

From a meeting at which a Member was not in Attendance

There were none declared. 

Director of Finance, Ryan Marsh provided an overview of the 2025 operating budget summary. 

The draft summary is of November 2, 2024 and was in the draft form of $4,359,070 or 14.05%.

November 26th decisions include: Fees & Charges of $169,546 in increased revenue, GM of IT new position $161,306, fire vehicle replacement program of $77,581, animal shelter grant of $3,000 and the biggest change to our draft budget from November 2 is the OPP police rebate of $1,721,378 reducing the percentage by 5.55%. The required increase is $2,710,033 or 8.73%. 

We have been able to reduce policing costs over the past 3 years of over $2.8M that was not placed on the taxpayers as increased costs. In 2023 with a policing bill of $6,437,146 the province provided one time funding support to offset this high policing bill in the amount of $511,417. In 2024 with the continued increases to our OPP bill at $6,960,519 the province provided additional one-time financial assistance in the amount of $532,475. We have now received our 2025 OPP bill which has increased $2.358 M or 36.7% and come in at $8,786,451.

We are anticipating hearing from the KDSB and the Kenora District Homes from the Aged early in the new year. We have seen a reduction in policing costs of over $2.8M and there are still issues with the formula which we will continue to advocate for changes to the formula which is a little more reflective of the challenges we face in the north.

Administration will bring a full analysis back to Council with the total policing costs and rebates at a later date. In summary they are providing a 3.75% reduction of total 2023 reconciled amount, a 44% reduction on overtime , a 10% reduction of 2025 invoice amount. the City of Kenora's policing bill is $7,65,074M for 2025. Rebates in policing have included:

2023 - $511,417

2024 - $532,475

2025 - $1,721,378M

As we prepared for this difficult budget, Senior Leadership explored new revenue generating ideas for Council to consider. This report discusses the feasibility or possibilities to explore the operation of Anicinabe Park campground. Anicinabe Park campground has been operated by a maintenance and operating agreement not a lease, and the most current agreement ran from January 2019 to October 31st 2023 with a one year extension to October 31, 2024. Presently there is no agreement on the table and it provides and opportune time to consider a revenue option. 

Some of the key objectives of an in-house operation is to realize the revenues ourselves directly. This campground is a high use area and draws numerous visitors to the City and we want to ensure our in-house staff are trained and can deliver good customer service for the visitors to the park. 

The City already has staff and equipment that we can utilize to provide this service. 

The finances on occupancy rates are based on historical numbers and operating expenditures we are confident on how much it will cost to operate this facility. The technology utilized is our system that we already use in Recreation which has the capability to process these reservations, our own point of sale system which has been seamless since the bookings opened December 1st. 

There is an opportunity for programming for youth in the park and other opportunities that would enhance the activity in the park. This contemplates the current activities, but tourism and recreation is excited to enhance the space and the opportunities are endless to activate the space. 

Summer student staffing has been very successful the past two summers and we had more students than we had opportunities. These types of opportunities for students which involve outdoor work in the tourism area is attractive for students.  

Year one will be neutral - projects a $75,000 start up if we stayed exactly the same, but in future years the $75,000 comes back on line. 

On June 25, 2024, due to a fire, the Anicinabe Park Concession Building was declared a total loss.

The appraised structure was described as follows:
- Section 1 – Single story restaurant area with a reinforced concrete full basement, approximately 1,160 SF of gross floor area, 8-foot storey heights
- Section 2 – Pavilion with concrete pile construction type, timber framed open vault ceiling, approximately 1,016 SF of gross floor area with 8-foot eave heights

The appraisal was based on a structure with the original construction dimensions and design as the pre-existing building, using like, kind and quality materials, and labour rates as of October 2024.

Based on the information and documentation received and reviewed to date, the value for replacement was assessed at $694,559.00.

The deductible on this property loss claim is $25,000.00.  In our previous reports to Council when we have an insurance claim, Council has three different options to consider:

1. Rebuild a facility to the assessed value – resulting in facility of a similar size and structure.
2. Receive the insurance settlement and use the funds to build/acquire a new structure that may be above or below the assigned value.
3. Receive the insurance settlement and defer any decision to rebuild.

As this was an unanticipated loss, the insurance settlement would be received as revenue of $694,559.00 in 2024. At the discretion of Council, these funds can be committed in the 2025 budget to undertake the following:
1. Rebuild the facility at Anicinabe Park
2. Purchase a modular building to be placed on slab or piles, of a similar size for lesser value, estimated at approximately $200,000 - $225,000. Providing the remaining amount to be used to offset future operation and maintenance of the park. This type of concept allows us to move the facility, or build the facility and is not a set structural facility and provides different flexibility at a more affordable option. 
3. Received the funds to be used at Council’s discretion.

Is there an opportunity to determine other options for the park, and Council should consider what they would like to see in the park. 

Discussion: Council questioned if there was a mobile structure that could be considered to add to the park. The model being considered does not factor in concession revenue if we offered it as an internal operation or we tendered that portion out. Basic registration and check in can be considered in a very small site, but if we wanted concession or canteen services we would require a larger structure. The design and the long term planning for the permanent structure would come back to Council at a later date. 

Council would like additional time to consider the direction and this item will return at a later date. 

 

This report provides three options for Council to consider. 

We are now out of past practice and these salary ranges have been held at zero for 2023 and 2024. 

Option #1 – At the actual annual percentage adjustment as bargained by the City
of Kenora and its bargaining units.
Options #2 – 1.5% increase
Option #3 - 0%, or any other percentage Council desires

In terms of the economic adjustments to the Management Pay Grid may be authorized by Council through budget approval in accordance with HR-3-1 Salary Administration Policy. Factors to be considered when any adjustment is to be made to the Management Pay Grid shall include:
-Ability of the Municipality to pay based on approved budget guidelines.
-Wage and benefit package approved by Council for City employees covered by CUPE, IBEW, and KPFFA Collective Agreements.

The step increase is approximately 2% on a nine step grid. The CAO and the SLT are on five step grids. There was no additional steps added for professional managerial and the Director grid was reduced. We have a group that has been frozen as a result of the compensation review and have experienced zero all the way through. 

The 1.5% would add .38% to the net tax levy.  

Consensus of Council is to move forward with 1.5%. 

This is the hard work and this is why we are here. It is up to Council to decide what we want to do with the budget. Think about what you would like to see come out of this budget. Coming and saying no or won't support the budget you need to have solutions and be ready to dig in and have some kind of solution. Not interested in pushing this and it makes it harder in the new year. 

We don't see any further positive surprises coming. Once we get into 2025 it becomes harder to reduce the budget in various areas. We lose flexibility in what things could be reduced or cut. 

There have been moderate to low increases for decades and now we are trying to play catch up. Without finding services to cut, no one is coming up with solutions to present. This is reality and this is what it costs to run the municipality these days. We have a city to run and we can't have a deficit and further agencies we also have no control over so we have nothing else that can change to move this budget forward. 

It was questioned if we can use anything from the Prosperity Trust Fund to offset costs. Director Ryan Marsh could provide a report in January for consideration. Council would like to see the NWHU, KDSB and Pinecrest numbers before finalizing. 

Consensus to bring the operating budget forward to the December 10th Committee of the Whole meeting for consideration. 

Discussion: We have two reports remaining for direction from Council.  The first report is the operating model at Anicinabe Park, in-house operation or tendering out the maintenance and operation of the park.  The second report pertains to the insurance loss of the building at Anicinabe Park of $664,959. You can receive the insurance settlement and choose to build, defer or use the funds at Council's discretion. Council would like us to move ahead with operating the park ourselves, and take some of the insurance funds to apply to the start up costs. We would like to not make any decisions of rebuilding at this time, and what the options are for operating. 

With those changes we sit at 8.87 % and we will bring it forward to the December 10, 2024 Committee of the Whole meeting.

  • Moved by:G. Chaze
    Seconded by:L. Koch

    That pursuant to Section 239 of the Municipal Act, 2001, as amended, authorization for Council to move into a Closed Session at 10:45 a.m. to discuss items pertaining to the following:-

    - Security of the Property of the Municipality (1 matter-land relations)

     

     

    CARRIED

Council returned to open session at 11:23 a.m. with the following reports:

  • Legal matter information

Meeting adjourned at 11:24 a.m.

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