1997-11-01_Minutes
86-685
COMMON COUNCIL
NOVEMBER 1, 1997
At a meeting of the Common Council, held at the City Hall in the City of
Saint John, on Saturday, the first day of November, AD. 1997, at 9:00 o'clock a.m.
present
Shirley McAlary, Mayor
Councillors Arthurs, Ball, Brown, Chase, Fitzpatrick, Gould,
Knibb, Trites and Vincent
- and -
Messrs. 1. Totten, City Manager; J. Nugent, City Solicitor; P.
Woods, Acting Commissioner of Finance; J. C. MacKinnon,
Commissioner of Environment and Development Services; J.
Baird, Manager of Community Planning; S. Lodhi, Manager of
Real Estate & Facility Management; B. Belyea, Budget Officer;
W. Edwards, Building Inspector; D. Crawford, Deputy Building
Inspector; B. Shanks, Assistant By-Law Enforcement Officer;
Mrs. G. Barker, By-Law Enforcement Officer; Mrs. J. Ferrar,
Property Clerk; Mrs. M. Munford, Common Clerk; and Ms. C.
Mosher, Assistant Common Clerk.
MeetinQ Called To Order
Mayor McAlary called the meeting to order; and referred to the first item
on the agenda (copies of which were distributed to Council members in their Council
kits), being the budget presentation by Environment and Development Services.
Environment And Development Services
Mr. MacKinnon, referring to overhead slides of a portion of his
Departmental budget package (copies of which were distributed to Council members at
this meeting), noted the 1997 budgets of $98,993 for Environment, $3,000 for the
Environment Committee, $788,315 for Community Planning, $8,900 for the Planning
Advisory Committee, $23,200 for the Preservation Review Board, $815,486 for Building
& Technical Services, and $1,083,957 for Real Estate & Facility Management, and the
percentage related to personnel costs, as well as inclusion in the remaining 50% of the
Real Estate & Facility Management Goods and Services budget in 1997 of pedway
costs of $275,000 and property taxes of $120,000, the latter amount estimated at
$105,100 in 1998, and also that the 1997 and 1998 budget for Animal Control, which
was on a contract basis, was $125,000 and $100,000, respectively, while the City Hall
building budget was $1,526,350 in 1997 and extended in 1998 to $1,691,411. Mr.
MacKinnon advised that the Preservation Review Board would present its proposed
1998 budget at a later date; and referenced the budget summaries to indicate the 1997
budgets, the exercise to take 90% of those budgets, the 1998 budget extended from
the 1997 budgets reflecting any salary increases along with the cost of goods and
services, and the reductions which the Department would be attempting to attain when
looking at all of the budgets as some of the reductions might be over the entire
Department rather than in just one area.
Mr. Edwards, in addressing the Building & Technical Services' proposed
1998 budget of $838,067, reviewed the by-laws enforced and administered by his
Division and the number and types of inspections carried out; and advised that the City
Manager's guidelines for the 1998 budget to be comprised of 90% of the 1997
Operating Budget would, for Building & Technical Services, represent a cut from the
status quo of approximately $104,00 or 12%, which would equate to a reduction of
positions in the Department. Mr. Edwards put forth the following options for Council's
consideration, in view of the City Manager's agreement that reductions could be
realized through straight-forward cuts in the budget and/or offsetting increases in
revenue:- (1) an increase in the cost of building permit fees from $100 per application
and $7 per thousand for value of work to $100 plus $8 per thousand, resulting in an
estimated increased annual revenue of approximately $45,000; (2) an increased
emphasis by the Plumbing Inspector on backflow prevention and cross-connection
control and that the Water and Sewerage Utility fund this service in the order of
$35,000, approximately one-half the cost of the plumbing inspection service; (3)
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NOVEMBER 1, 1997
eliminate plumbing inspection entirely, the cost of the plumbing service being about
$70,000, which would result in a net savings of approximately $46,000 through the
elimination of this position and in revenue realized by the permitting process of
approximately $24,000; (4) eliminate one administrative position at a total cost saving
of $27,000; (5) eliminate the Minimum Standards Program at a net saving of
approximately $60,000, comprised of one full-time employee, one 1/2 time clerk typist
position and associated vehicle costs; and (6) a reduction in by-law enforcement at a
net savings in the vicinity of $50,000 which would result in the reduction of at least one
position, during which time he explained why options (3), (4), (5) and (6) were not being
recommended. Mr. Edwards suggested that, should it be necessary for Building &
Technical Services to adjust the 1998 Operating Budget to reflect the economic reality,
the Department be permitted to increase the building permit fees and that the Water
and Sewerage Utility be directed to fund 50% of the plumbing component, which would
allow Building & Technical Services to maintain its current level of service and not lay
off any employees.
Mr. Totten clarified the budget process to date to the effect that no
decisions with respect to reductions and such have been made and that the various
departmental budgets were being presented in response to the City Manager's
guidelines, and he would be coming back to Council with a recommended budget.
Mr. Baird commented on the structure of and services and programs
provided by Community Planning, and made the observation that, as the 1997 budget
of $788,315 was divided between personnel costs of 88.5% and goods and services of
11.5% and as a negotiated increase to personnel cost would increase that portion of
the budget in 1998, the total budget request would increase to $808,969 even with no
increase in goods and services, thus the suggested guideline of 90% of the 1997
budget would require reductions of nearly $100,000. Mr. Baird noted the state of
uncertainty in view of the Province's announcement that planning would be delivered
on a regional basis through a district planning commission, the structure for which has
not been clearly defined; and made his budget presentation on three direct options or
scenarios as follows, including the impact of each:- (1) existinQ mandate - if the role
and mandate of Community remained as it was today, personnel and services must be
cut to meet the guidelines and the elements could include the reduction of one
professional - $57,600, a reduction in goods and services of $12,250, and an increase
in fees of $30,000; (2) fee for service - it is suggested that fees in the area of $100,000
could be achieved, although very little discussion has occurred to date on this option;
(3) district planninQ commission - if this were implemented, it would be anticipated that
there would be little if any dollar saving as, in the model, the City would be paying 76%
of the shared cost, as well as 100% of the cost of service which would remain. Mr.
Baird noted the Planning Advisory Committee's 1997 budget of $8,900, as well as that
of the Preservation Review Board for 1997 of $23,200.
The Mayor suggested that, as the presentations were behind schedule,
Council should hear from some of the outside groups at this time and have Real Estate
& Facility Management make its presentation as the first after the recess.
Aitken Bicentennial
Exhibition Centre (ABEC)
Mr. David Case, Chairman; and Mrs. Carolyn Cole, Executive Director, of
the Aitken Bicentennial Exhibition Centre (ABEC), were in attendance at the meeting to
present the 1998 Operating Budget proposal (copies of which were distributed to
Council members at this meeting). Mr. Case advised of ABEC's recent success in
obtaining an almost $30,000 grant from Science Culture Canada to help refurbish the
ScienceScape Gallery, and ABEC was confident that, as it continued with this
refurbishment, it would achieve continued success in attracting people to the Centre.
Mr. Case, referring to the 1998 budget from the City of $220,000, made the observation
that, as there was no discretionary spending in ABEC's budget which consists
essentially of insurance, regular maintenance and salaries, a reduction would mean
reducing staff and probably reducing open hours.
Mrs. Cole highlighted both the adult and children's programs offered by
ABEC over the last three years, ABEC having a permanent gallery referred to as
ScienceScape and five temporary galleries which are constantly changing; and noted
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NOVEMBER 1, 1997
Mr. Case's observation that a decrease in funding would result in a problem keeping up
with the programming as staffing probably would be one of the first cuts that would
have to be made as nothing in the budget was really adjustable.
In response to Councillor Knibb's observation that, in view of a
forthcoming regional facilities commission, the budget was to remain at the 1997 level,
Mr. Woods advised that, based on discussions in this regard and given that the
legislation would not be in place by year-end, the four municipalities agreed that the
funding commitment to the five facilities that would fall under the regional facilities
umbrella would be capped at the 1997 amount; however, one of the issues that would
arise would be property tax so that, if there were large credits because of the change in
non-profit or charitable facilities, they would not become windfalls to the respective
commissions.
The Boys & Girls Club
Of Saint John Inc.
Mr. Gregory Zed, 2nd Vice-President, and Ms. Deborah (Debbie) A
Cooper, Executive Director of The Boys & Girls Club Of Saint John Inc., were present
at the meeting with regard to the Club's 1998 budget proposal (copies of which were
distributed to Council members at this meeting), along with a pamphlet on the Club and
its Fall Youth Program). Mr. Zed introduced the Club and its mission statement and
core values; and noted that, as the Club was one of a national organization and linked
with the Boys & Girls Clubs of New Brunswick, a pro-rated share of dues collected
would go to the Provincial body which, in turn, would pay into the national body. Mr.
Zed addressed the Club's 1998 request to the City for an amount of $91,500 from the
City of Saint John, the same as requested since 1988 and which was received from
1988 through 1993 with the City's donation having decreased in 1994 to $85,000 and
further decreased to $81,500 in 1995 and 1996; and advised that a 10% reduction
would require a cut in staff and programming, and that the evening start dates in
September would be put back, as well as of the effect this would have on the children
who attend the Club.
Ms. Cooper, in noting the Club's current membership of approximately
1,500 members, apprised Council of the current Youth Programs offered and of the
attendance Monday through Thursday and on Friday nights.
Aquatic Centre
Messrs. Leo Maloney, Chairman of the Saint John Aquatic Centre
Commission, and Daryl Steeves, General Manager of the Canada Games Aquatic
Centre, addressed Council on the 1998 budget proposal of the Canada Games Aquatic
Centre (copies of which were distributed to Council members at this meeting), with Mr.
Maloney commenting on the Centre having reached, a full year before the target date
set, two major goals, one being to bring the operating cost to the City on line with the
Consumer Price Index relative to the Centre's first year of operation (1985) so as to
ensure that the Aquatic Centre has not increased the cost of services to the City of
Saint John, and the other being to increase the per cent of operating cost paid by the
users to 65%, and advised Council of the steps taken to reach those goals. Mr.
Maloney outlined the financial pressures facing the Aquatic Centre in 1997-98 because
of the application of the HST to memberships, on-going problems with the HV AC
systems, increased competition, and an aging physical plant; and, referring to an
overhead slide, reviewed the financial comparisons from 1985-1987.
Mr. Steeves outlined the programs offered by the Aquatic Centre, as well
as the 1998 budget request of $544,200, and the request for a continuation of the sport
club subsidies in an amount of $12,945 for the cost of pool time, noting that the Aquatic
Centre was expected to qualify for a tax reduction in 1998 of 90% of its property tax of
$62,000 which would create a savings of $55,800 reducing its overall request to
$544,200.
Following a recess at 12:50 o'clock p.m., the meeting reconvened at
1 :30 o'clock p.m.
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Real Estate & Facility ManaQement
Mr. Lodhi outlined the organizational structure and operations of Real
Estate & Facility Management, the latter including real estate, facilities, industrial parks,
the Municipal Energy Efficiency Program, City Hall/pedway system, and special
projects; and, through an overhead slide presentation, provided an overview of the
budgets related to the 1998 proposed operating budget of $1,101,227 and the
proposed 1998 budget with a 10% reduction from 1997 of $975,561 representing a net
reduction of $125,666; the proposed 1998 budget for the City Hall building of
$1,691,411, representing a net increase of $165,061 from 1997; the 1998 Revenue
Budget of $300,000, representing a net increase during 1998 of $120,000; and the
Facility Maintenance Budget in that Real Estate & Facility Management provides
maintenance service to other civic departments for which the departments pay the cost.
Mr. Lodhi advised that, in order to achieve a 10% cutback from the 1997 budget level,
major savings could only be achieved by a reduction of approximately $108,400, and
apprised Council of the following required action and the consequences of (1) reducing
one management position (Ice Plan Superintendent) and contracting out services, for a
saving of $53,000; (2) cutting back on pedway operations at a projected saving of
$55,000; (3) adjusting the administration, goods and services budget; and (4)
generating new revenues and new initiatives in the amount of $120,800. Mr.
MacKinnon, referring to overhead slides, summarized the 1998 budget reductions and
options/impacts relevant to Economic and Development Services.
In response to a question as to whether or not revenue enhancements
were being given credit as part of the budget reduction process, Mr. Totten advised that
he indicated that he would entertain from the departments an initiative aimed at
increasing revenue, although whether or not that would be an appropriate balance or
be taken into consideration in the final analysis of departmental budgets, that would
remain to be seen as it may be necessary for him to request further expenditure
reductions to a department that had identified equal expenditure reductions and
revenue increases.
Free Public Librarv
Mr. Nicholas Barfoot, Chair of the Finance Committee of the Saint John
Free Public Library, introduced Messrs. Henry Meinhardt, a member of the Board, and
Ian Wilson, City Librarian; and, in presenting the 1998 Operating Budget Proposal for
the Saint John Free Public Library (copies of which were distributed to Council
members at this meeting), made the observation that, in the context of the New
Brunswick Public Libraries Act, it was the Board's responsibility each year to submit to
Council an operational budget which it believed would adequately supply, equip and
maintain public library facilities in the City. Mr. Barfoot advised that the Board's
proposal requested a total increase of $6,543 from the 1997 grant of $295,082, which
would almost exactly match additional tax payments with HST applied to base rental
costs, utilities, telecommunications charges and other categories on which the former
PST was not applied and also that the Board was projecting a 10% ($30,000) reduction
in the operating budget would result in the closure of one of the City Library branches -
the East or West Branch; and requested Council's continuing support.
Mr. Wilson advised that, should it be necessary to ease the Library's
budget, the fixed assets area of the budget in the amount of $14,782 would have the
most latitude should Council need to deliberate.
Trade And Convention Centre
Mr. Vijay Kawatra, General Manager of the Saint John Trade and
Convention Centre and the Saint John Hilton; Ted Ashbridge, Manager of the Saint
John Trade and Director Centre; and David MacDonald, Controller for both properties,
were in attendance at the meeting; and Mr. Kawatra, referring to the 1998 budget
proposal for the Trade and Convention Centre, (copies of which were distributed to
Council members at this meeting), the request from the City being $329,502, advised
that, although 1997 has been a good year for the Centre in terms of revenue,
unfortunately due to the cyclical nature of the business, the improvements seen over
the last two years would not be duplicated next year. Mr. Kawatra reviewed the major
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national, regional and Provincial conferences held in 1997 at the Trade and Convention
Centre, as well as the number of overnight conference delegates, in comparison to
both confirmed and tentative conferences in 1998; noted improvements in terms of
lighting, wallpapering and chairs, as well as the competitive market; and explained that,
while he has shown similar revenues for 1998 as in 1997, he did not really know if the
Centre would make that revenue even with a 5% increase in rates.
Mr. Kawatra responded to questions on the need for banquet chairs and
the provision in the budget for employee meals; and, in view of an anticipated regional
facilities commission and relevant to the cost sharing of capital costs for the Centre, Mr.
Woods advised that, as part of the discussions on a regional facilities commission and
given that the Centre is owned by the City and operated by contract with Hilton
Canada, the committee's recommendation was that a management committee be
struck with four representatives from the City and one each from the outlying
municipalities to whom the management of the Hilton who are responsible for the
operation of the Trade and Centre Convention would report and give periodic progress
reports on the level of activity and how they are making out on their budgets and so on,
and they would also be requesting funding support from that organization, including the
management fee of $111,000; and also that, with regard to capital expenditures, one of
the elements in the Provincial model is that a regional facilities commission could, if it
deemed appropriate, approve the sharing of capital expenditures.
Saint John Horticultural Association
Messrs. Eric Teed, President; Wallace MacMurray, Vice-President; Paul
Mills, Treasurer; William Irving, Chairman of the Public Gardens; Jeffrey Spear,
Superintendent; and Mmes. Julie Esselmont, Secretary; and Brenda Farren, Director, of
the Saint John Horticultural Association, were present with regard to the Association's
1998 budget request (copies of which were distributed to Council members at this
meeting, along with a brochure showing the origin, objects, founders, present directors
and various officers of the Association); and Mr. Teed made the observation that, since
1994 when the City's grant was reduced by $24,000, the Association has managed to
live on a $90,000 yearly grant from the City and, to do so, the Association has had to
reduce staff and the number of flower beds in the Garden. Mr. Teed advised of capital
improvements in the form of cold frames to assist in developing plants, as well as of
staffing, and commented on the Rockwood Park Campground, as well as on the
Association's revenue-raising efforts, including the supplying of flowers through the
winter to some of the local florists; and noted the projected general uses for 1997, the
estimated general uses for 1998, and the estimated wages for 1998, as set out in the
budget document,
YMCA - YWCA Of Saint John
Mr. Bob Cote appeared on behalf of the YMCA-YWCA of Saint John to
present the 1998 grant request of $40,000 (copies of which were included in an
information package distributed to the Council members at this meeting), and outlined
the Y's Mission Statement, as well as the programs and services provided and their
impact on the community; and apprised Council of the challenges to the YMCA-YWCA
due to the Provincial Government tax reform and repayment, the loss of the Parrtown
Centre, the aging facilities, and an increased demand for sponsorship and a trend
towards reduced allocations. Mr. Cote advised that, as grants are applied over such a
broad base of programs and services, they would all suffer with a 10% reduction over
the 1997 allocation of $15,000.
Adiournment
The meeting adjourned at 3:55 o'clock p.m.
Common Clerk