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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