2005-11-28_Minutes--Procès-verbal
November 28, 2005
149-2005
Minutes of the Portion of the Committee of the Whole Meeting Open to the Public
Monday, November 28,2005,500 p.m.
8th Floor Boardroom, City Hall
Present:
Mayor Norm McFarlane,
Deputy Mayor Hooton, and Councillors Chang, Chase, Court, Ferguson,
McGuire, Tait, and Titus
- and -
1. Totten, City Manager; J. Nugent, City Solicitor; A. Beckett, Commissioner of
Finance and Corporate Services; J. Baird, Commissioner of Planning and
Development; 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.
2. Discussion of Confidential Matters
On motion of Deputy Mayor Hooton
Seconded by Councillor McGuire
RESOLVED that the public be excluded from the meeting for the
duration of the discussion on the following matter(s): Contract Negotiations 10.2(4)(b).
Question being taken, the motion was carried.
3. 2006 Operating Budget - A Preliminary Look
Referring to his submitted report, The City Manager provided background on the 2005
budget and a preliminary look at the 2006 and 2007 budgets allowing for Departmental
requirements. He presented the highlights of the 2006 budget projecting a tax rate of
1.827 per hundred dollars of assessment not addressing the pension deficit, and $1.907
based on meeting the obligations to the City's Pension Fund; an estimated tax base
increase of 5%; increases in revenues resulting from the expanded 911 call taking area
and an additional $200,000. related to Harbour Passage maintenance and $70,000. for
Hazmat Services.
The City Manager presented expenditures for the submitted preliminary 2006 budget to
include $500,000. for Vision 2015; $100,000. additional for legal services; additional
personnel requirements in Corporate Services, Planning and Development Services,
Police and Fire Services, and Building & Technical Services; an additional $200,000. in
fuel costs in Municipal Operations; additional funds required related to Arts and Culture,
Environment and Communications. He also outlined proposed costs associated with
negotiated settlements with unions and an adjustment to the management pay scales as
well as the need to fund the pension deficit.
November 28, 2005
150-2005
Mr. Beckett responded to questions and Council members provided input to the
submitted document to include the following:
Not supportive of an increase in the tax rate
Plan of establishment should be assessed according to the Organizational
Review before adding positions
Supportive of additional police for community patrol
Need for a priority session before making final decision
Need to explore more revenue generating initiatives
Emphasis on maintaining existing roads and infrastructure before building new
Not supportive of any budget that does not deal with the pension issue
Need to know the past and present efficiencies of the pension plan
After the pension issue, the communication strategy is critical
On motion of Councillor McGuire
Seconded by Councillor Farren
RESOLVED that the Mayor telephone provincial officials to ask for
the tax base figure.
Question being taken, the motion was carried.
On motion of Councillor Chase
Seconded by Deputy Mayor Hooton
RESOLVED that an open meeting of Council be scheduled to lift
from the table and discuss the City Manager's report providing options regarding the
Pension Plan deficit.
Question being taken, the motion was carried.
On motion of Councillor Tait
Seconded by Councillor McGuire
RESOLVED that at the next open meeting of Council the City
Solicitor do a complete presentation on the response from Rust D'Eye, the lawyer that
Council engaged to explain the responsibility of the City versus the Pension Board with
regard to the City's Pension Fund including the report containing the questions to be
asked of the lawyer.
Question being taken, the motion was carried.
Councillor Ferguson proposed an amendment to the motion which was not seconded to
include the governance role and not the administrative role of Council.
On motion of Councillor Titus
Seconded by Councillor McGuire
RESOLVED that that the budget discussions, be tabled until the
City Manager's report on options regarding the Pension Plan deficit is presented.
Question being taken, the motion was carried.
November 28, 2005
151-2005
4. 2006 Capital Budget - A Preliminary Look
Referring to his submitted report, The City Manager provided a preliminary list of Capital
projects for 2006 reflecting the requirements as presented by Departments, without a
cutting exercise by the City Manager or senior staff. He advised that the list totals
$27,810,500., $19,375,500. of which would be financed by way of a debenture issue and
that a debenture issue of $19,375,500. is $7,375,500. more than the City's long term
financial model had anticipated. He added that for every $3 million borrowed in excess
of the $12 million on a one time basis, the municipal tax rate would have to increase by
one cent per hundred dollars of assessment and continue until the debt is repaid in full.
Councillor Titus read a letter he prepared for the December 5, 2005 agenda proposing
that the allocation of the gas tax transfers follow criteria which would best serve the
strategic interests of the City.
On motion of Councillor Titus
Seconded by Councillor Tait
RESOLVED that the City Manager be requested to develop
criteria and priorities, consistent with the program objectives, to guide the allocation of
the gas tax transfers that would best serve the strategic interests of the City of Saint
John.
Question being taken, the motion was carried.
On motion of Councillor Court
Seconded by Councillor Tait
RESOLVED that the Mayor send letters to the presidents of the
Cities of NB Association, the Francophone Municipalities Association of NB, and the
Union of Municipalities of NB thanking them for their work to realize a gas tax deal for
municipalities for their successful efforts.
Question being taken, the motion was carried.
Councillor Ferguson suggested that the capital budget document cross reference
recommendations made by the Recreational Facilities Committee.
Councillor Court offered that it is his understanding that the City will receive 2 payments
for the gas tax.
The City Manager advised that a copy of the agreement has been requested.
On motion of Councillor Tait
Seconded by Councillor Ferguson
RESOLVED that the City Manager bring back a report listing
capital items representing $12 million expenditures plus the $1.7 million revenue from
the gas tax.
Question being taken, the motion was carried.
November 28, 2005
152-2005
5. Teach-In - Water Rates
The Teach-in on water rates was postponed to a later meeting and the meeting
adjourned at 9:05 p.m.
The Teach-In on Water Rates to be brought forward to the next Committee of the Whole
meeting.
Common Clerk
Record Pursuant to Section 10.2(4)
The meeting of the Committee of the Whole of Common Council held on November 28,
2005 was closed to the public pursuant to Section 10.2(4) of the Municipalities Act
during the Committee's discussion of the following matter(s): Contract Negotiations
10.2(4)(b).
Common Clerk