2010-12-18_Minutes--Procès-verbalMinutes of the Portion of the Committee of the Whole Meeting Open to the Public
Saturday, December 18, 2010 at 8:00 a.m.
Council Chamber, City Hall
Present:
Mayor Court,
and
1
Committee of the Whole Open Session
December 18, 2010
Deputy Mayor Chase and Councillors Court, Farren, Higgins, McGuire, Mott, Sullivan
and Titus.
P. Woods, City Manager; J. Nugent, City Solicitor; G. Yeomans, Commissioner of Finance; P.
Groody, Commissioner of Municipal Operations; E. Gormley, Common Clerk and J. Taylor,
Assistant Common Clerk
1.1 Proposed 2011 Operating and Capital Budgets Saint John Water (Water and
Sewerage Utility Fund)
Referring to a submitted report, the City Manager commented on the proposed 2011 operating
and capital budgets for the Water and Sewerage Utility Fund. He explained that the utility's
budget is funded by the water and sewage ratepayers, noting that the city budget is a separate
entity which is funded by property tax dollars.
Responding to a question, Mr. Woods stated that the General Fund cannot be used towards the
Water and Sewerage Utility Fund.
In response to a query, the City Solicitor explained that the fundamental premise for the
operation of the Water and Sewerage Utility is stated in Municipalities Act, advising that it is a
user -pay system whereby the users of the utility must pay for the utility. He stated that therefore
only water and sewerage utility capital projects can be financed through the water and
sewerage utility budget.
The Commissioner of Municipal Operations was asked how lower income citizens could afford
the proposed rate increases, to which he responded that the solution must be found not only
within the utility, but through such things as the city's general fund or the social service agencies
of the province. He noted that the city's finance department currently arranges payment plans
to accommodate citizens who cannot pay the entire utility bill.
The Commissioner of Finance stated that the proposed increases in water and sewer rates are
primarily as a result of the harbour clean -up project, noting that the city's share in this project
was approximately $30,000,000. Mr. Yeomans explained that the water and utility funds will
continue to increase as the city proceeds with the upgrades to its drinking water system,
advising that the Safe, Clean, Drinking Water Project currently receives funding amounts of
33.3% from each of the three levels of Government. He advised that the municipality requires a
greater contribution from both the provincial and federal government in order to maintain
affordable water utility rates.
2
Committee of the Whole Open Session
December 18, 2010
Responding to a question, Mr. Yeomans estimated that approximately 10% of the overall cost of
the project would be affordable for the water and utility fund.
Deputy Mayor Chase stated that he cannot support the proposed budget due to its financial
model.
Deputy Mayor Chase proposed a motion which did not receive a seconder for the
Commissioner of Finance to submit a revised water and utility budget which includes a
reduction in capital funds from the operating budget.
On motion of Councillor Higgins
Seconded by Councillor Titus
RESOLVED that Committee of the Whole direct the Common Clerk to
forward the following proposed resolution to Council's December 20 2010 agenda:
1) RESOLVED that the estimated revenue for the Water and Sewerage Utility for the
year 2011 in the amount of $35,475,310 be adopted (Appendix "A
2) RESOLVED that the estimate of expenses for the Water and Sewerage Utility for
the year 2011 in the amount of $35,475,310 be approved (Appendix "B
3) RESOLVED that the By -Law entitled A By -Law to Amend a By -Law Respecting Water
Sewerage (Appendix "C be given first and second reading; and
4) RESOLVED that the Capital Budget for 2011 in the amount of $33,770,000, as set
out in the submitted 2011 schedule of projects, be approved.
nay.
Question being taken, the motion was carried with Deputy Mayor Chase voting
The Mayor declared the meeting adjourned at 10:20 a.m.
Common Clerk