2005-12-17_Minutes--Procès-verbal
December 17,2005
156-2005
Minutes of the Portion of the Committee of the Whole Meeting Open to the Public
Saturday, December 17,2005,7:00 a.m.
Council Chamber - City Hall
Present:
Mayor McFarlane,
and Deputy Mayor Hooton, Councillors Chase, Court, Ferguson, McGuire, Tait,
Titus and White
- and -
1. Totten, City Manager; J. Nugent, City Solicitor; A. Beckett, Commissioner of
Finance and Corporate Services; G Yeomans, Comptroller; P. Groody,
Commissioner of Municipal Operations; P. Woods, Deputy City Manager and
Common Clerk, and E. Gormley, Assistant Common Clerk
1. MeetinQ Called To Order
The Mayor called the Committee of the Whole meeting to order.
Councillor Titus requested the Common Clerk to read the submitted Order addressed to
Mayor McFarlane from the Superintendent of Pensions dated December 16, 2005. The
Clerk read the order which requires the City to pay all special payments due in respect of
the actuarial loss identified in the "Actuarial Valuation" as at December 31, 2003 to
present, and to continue to make special payments necessary to amortize the actuarial
loss identified in the Valuation report in accordance with the Pension Benefits Act and
the General Regulation - Pension Benefits Act (the Regulations) as they come due.
On motion of Councillor Titus
Seconded by Deputy Mayor Hooton
RESOLVED that the item, City of Saint John Pension Fund
previously tabled, be lifted from the table.
Question being taken, the motion was carried.
Referring to his submitted reports, Options to Fund the Pension Deficit, dated March 18,
2005, and Pension Deficit/2006 Operating Budget (A Second Draft) dated December 16,
2005, the City Manager reviewed the options presented, noted that Council has already
proceeded with some of his suggestions contained in the report, and made the
recommendation found in the resolution below. He also explained a proposal, which is
elaborated upon in his report, from Provincial officials that would see the City of Saint
John asking the Provincial Government to repeal the City of Saint John Pension Act and
agree to replace it with a City of Saint John By-law Respecting Pensions.
December 17,2005
157 -2005
Mr. Totten advised that the City is three years in arrears on the pension deficit, and must
begin to make payments. He suggested that Council consider borrowing $12.3 million to
fund the shortfall in the pension plan.
Councillor Ferguson distributed copies of newspaper articles dealing with disability
claims from City employees, and stated that he believes that Council should seek third
party expert advice to examine this issue.
The City Manager advised Council that the Pension Board has received third party
advice on this matter.
During discussions on the above, Councillor Court raised a point of order stating that
only the pension issue should be discussed and not the budget, on which the Mayor
ruled that discussion on the budget only as it related to the pension issue is permitted.
On motion of Councillor White
Seconded by Councillor McGuire
RESOLVED that Council request the Mayor, with the assistance of
the City Manager and/or Commissioner of Finance, engage the Actuary, Morneau
Sobeco, to prepare an independent professional report complete with recommendations
as to the steps Council must take to:
a) ensure that its actions are consistent with the legislative requirements
b) minimize the effects of the Going Concern Deficit on the taxpayers of this community
c) should there be a conflict between (a) and (b) to propose any necessary changes to
plan
d) propose changes to the Plan that will reduce or possibly eliminate the risks of future
deficiencies in the Plan being borne by the taxpayers of this Community, and
that they provide advice, regarding the proposal made by the Province and referenced in
the City Manager's report, Pension Deficit/2006 Operating Budget (A Second Draft),
dated December 16, 2005.
Councillor Farren stated that he would prefer to engage an independent outside actuary
as opposed to using Morneau Sobeco.
Councillor Chase proposed an amendment to the motion to seek another actuary to
prepare a report as described in the motion above, which was seconded by Councillor
Farren. Councillor Titus raised a point of order noting that the amendment is contrary to
the motion, and the Mayor ruled in favour of the point of order.
Question being taken, the motion was carried, with Councillors Court, Chase, Farren and
Ferguson voting nay.
December 17,2005
158-2005
On motion of Councillor Tait
Seconded by Councillor Chase
RESOLVED that Council request assistance from the province if
possible to borrow $12.3 million to fund the shortfall in the Pension Plan for the years
2004, 2005, and 2006, and if not with the help of the province, then borrow on its own,
with the repayments being part of the operating budget.
Question being taken, the motion was carried, with Councillor Ferguson voting nay.
Adjournment
The meeting adjourned at 10:23 a.m.
Common Clerk