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2017-12-06 Finance Committee Minutes - Open SessionFinance Committee Meeting Open Session December 6, 2017 MINUTES — OPEN SESSION FINANCE COMMITTEE MEETING DECEMBER 6, 2017 AT 5:00 PM 8t" FLOOR BOARDROOM, CITY HALL Present: Mayor D. Darling Councillor D. Merrithew Councillor G. Sullivan Councillor G. Norton Councillor S. Casey Absent: Councillor D. Reardon Also Present: City Manager J. Trail Deputy City Manager N. Jacobsen Commissioner of Finance and Treasurer K. Fudge Senior Manager Financial Planning H. Nguyen Deputy Commissioner Finance and Administrative Services I. Fogan Comptroller C. Graham Commissioner of Transportation & Environment Services M. Hugenholtz Assistant Comptroller Finance C. Lavigne Commissioner Growth and Community Development J. Hamilton Fire Chief K. Clifford Deputy Fire Chief J. Armstrong Police Chief J. Bates CEO Saint John Parking & Transit Commissions I. MacKinnon Administrative Assistant K. Tibbits 1. Meeting Called To Order Councillor Merrithew called the Finance Committee open session meeting to order. 1.1.1 Approval of Minutes— November 29, 2017 Moved by Councillor Sullivan, seconded by Councillor Casey: RESOLVED that the minutes of November 29, 2017, be approved. MOTION CARRIED. 1.2 2018 Recommended General ODeratiniz Bud Mr. Fudge reviewed the submitted report entitled, "2018 Recommended General Operating Budget". Various strategies have been discussed in terms of fiscal responsibility such as budgeting past a single budget cycle, asset management and determining the City's infrastructure deficit, the need to manage the City's debt, strategic investments in continuous Finance Committee Meeting Open Session December 6, 2017 improvement and growth, and creation of financial policies including the Asset Management Policy, Investment Policy and Reserve Policy. A three year plan is being introduced to reduce expenditures by $15M through organizational restructure. A $6.1M structural deficit has resulted from an imbalance in reoccurring revenues and reoccurring expenditures. It is recommended that any short term government funding not be used to fund on-going operations to avoid the risk of future increases to the structural deficit. Short term funds are better used to reduce debt, reduce infrastructure deficit, or fund one-time expenditures. It is proposed that any financial assistance received from the province be allocated to a general operating reserve to provide some flexibility to implement work force reductions through an attrition program. This will allow time to plan for service changes, mitigate operational risk and retain employees with less seniority. Mr. Trail stated an attrition plan and an establishment plan will be presented to Council early in 2018 and does not recommend buy out packages or incentive packages to encourage accelerated retirements or reductions in the establishment. Moved by Mayor Darling, seconded by Councillor Sullivan: RESOLVED that the Finance Committee approve the 2018 General Operating Budget as submitted and send the budget to Common Council for approval. MOTION CARRIED. Adjournment Moved by Councillor Sullivan, seconded by Mayor Darling: RESOLVED that the open session meeting of the Finance Committee meeting be adjourned. MOTION CARRIED. The Finance Committee open session meeting held on December 6, 2017 was adjourned at 6:15 p.m.