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2018-09-20 Finance Committee Agenda Packet - Open Session' A City of Saint John Finance Committee - Open Session AGENDA Thursday, September 20, 2018 4:30 pm 8th Floor Boardroom, City Hall 1. Call to Order Pages 1.1 Approval of Minutes - July 24, 2018 1 -3 1.2 Appointment of Auditor for Auditing Services 4 - 6 1.3 July 2018 Year End Forecast 7-35 1.3.1 2—July 2018 SJ Water YE Forecast 36-37 1.4 2019 General Operating Budget 38-64 1.5 2019 Water & Sewerage Utility Operating Budget 65-82 1 Powered 6y: tl & I -Br Finance Committee Meeting Open Session July 24, 2018 The City of saint john MINUTES — OPEN SESSION FINANCE COMMITTEE MEETING J U LY 24, 2018 AT 4:45 PM Stn FLOOR BOARDROOM, CITY HALL Present: Mayor D. Darling Councillor D. Merrithew Councillor G. Sullivan Councillor S. Casey Councillor D. Reardon Councillor G. Norton Also Present: Commissioner of Finance and Treasurer K. Fudge Commissioner Saint John Water B. McGovern Comptroller Finance C. Graham Senior Manager Financial Planning H. Nguyen Director Corporate Performance S. Rackley -Roach Assistant Comptroller Finance and Administrative Services C. Lavigne Deputy Commissioner Building & Inspection Services A. Poffenroth Senior Financial Analyst J. Forgie Fire Chief K. Clifford Deputy Commissioner B. Keenan Administrative Assistant K. Tibbits 1. Meeting Called To Order Moved by Councillor Norton, seconded by Councillor Reardon: RESOLVED that the Finance Committee move into open session. MOTION CARRIED. Councillor Merrithew called the Finance Committee open session meeting to order. 2. Approval of Minutes 2.1 Aoproval of Minutes—June 13, 2018 Moved by Councillor Norton, seconded by Mayor Darling: RESOLVED that the minutes of June 13, 2018, be approved. 3. Consent Agenda 3.1 Audit RFP Update Moved by Councillor Reardon, seconded by Mayor Darling: 1 Finance Committee Meeting Open Session July 24, 2018 RESOLVED that the submitted report entitled "City of Saint John Audit Services", be received for information. MOTION CARRIED. 4. Business Items 4.1 Continuous Improvement Program Update Ms. Rackley -Roach provided an update on the Continuous Improvement Program including a discussion on program outcomes, selection process for projects, and program results in terms of cumulative hard savings and productivity savings as a result of the continuous improvement initiatives. (Councillor Sullivan entered the meeting) Moved by Mayor Darling, seconded by Councillor Reardon: RESOLVED that the submitted report entitled "Continuous Improvement Program Update", be received for information. IL IQIIQL[SL1ilk] ilk] II19a 4.2 2019 General and Utility Capital Budgets Mr. Fudge reviewed the draft 2019 General Capital Budget. The budget reflects Council's strategic priorities and adheres to the capital budget policy, representing an $18M investment in the community. It caps the City's portion to $12M in order to achieve its debt management goals. Long-term planning, a culture shift from a heavy reliance on debt financing, to saving money for future capital needs, continues to be a focus. Through asset management best practices, the capital budget investments are evidence based and supports Council's strategic plans. Mr. McGovern reviewed the draft 2019 Utility Capital Budget. The budget is focused on addressing urgent operational issues while balancing Council's priorities. There is significant rate pressure due to the Safe Clean Drinking Water project and Harbour Clean Up. The budget seeks to leverage approximately $3M in funding from other levels of government. The focus is to keep expenditures as low as possible, while paying down the debt. Going forward, the objective is a strategic capital budget to renew infrastructure, lower operating costs, and leverage funding opportunities. In response to a question, Mr. McGovern stated that 2019 is expected to be the last year of significant increases. There has been an increase of $72 annually the past several years to prevent rate shock and provide an opportunity to establish a reserve fund to reduce borrowing costs. There continues to be a large infrastructure deficit and replacement of water and sewer mains will be necessary in the coming years. As the debt from the SCDW project is decreased, spending in infrastructure will be required, while trying to keep rates as low as possible. Moved by Councillor Reardon, seconded by Councillor Sullivan: RESOLVED that the Finance Committee submit the draft 2019 General and Utility Capital Budgets to Common Council for the July 30th meeting for receive and file. MOTION CARRIED. Adjournment Moved by Councillor Reardon, seconded by Councillor Sullivan: RESOLVED that the open session meeting of the Finance Committee be adjourned. 2 Finance Committee Meeting Open Session July 24, 2018 MOTION CARRIED. The Finance Committee open session meeting held on July 24, 2018 was adjourned at 6:20 p.m. 9 FINANCE COMMITTEE REPORT Report Date September 11, 2018 Meeting Date September 20, 2018 Chairman Councillor Merrithew and Members of Finance Committee SUBJECT: Appointment of Auditor for Auditing Services OPEN OR CLOSED SESSION This matter is to be discussed in open session of Finance Committee. Primary Author Commissioner/Dept. HeadCity Manager Jodie Forgie/Hilary Nguyen Kevin Fudge Neil Jacobsen RECOMMENDATION It is recommended that Deloitte LLP be appointed auditors for the City of Saint John, The Saint John Trust Funds, Saint John Parking Commission, Saint John Transit Commission, Develop Saint John, Saint John Free Public Library, Saint John Aquatic Centre Commission and Saint John Trade and Convention Centre for the next 4 years with a 2 year renewal option at the City's discretion. EXECUTIVE SUMMARY During the Finance Committee meeting on April 17, 2018 the following instructions were provided: • Finance Committee instructs the Commissioner of Finance & Administrative Services to work with the City's controlled entities (ABCs) to explore the opportunity to issue one Request for Proposal (RFP) for all audit services; and • Finance department works with the ABCs to determine if they are interested in joining the City in procuring audit services and whether they have any outstanding commitment with other accounting firms. After the Finance Committee meeting, Finance approached the ABCs to determine interest in working together and what outstanding commitments were present with other accounting firms. It was identified that 11 entities would participate and a combined RFP was prepared and issued. 0 IRAN Evaluation process was pursued of submissions received and a recommendation has been determined for Audit Services of the City and the controlled entities. It was further identified through this process cost savings on audit services of approximately $17,000 per year or $102,000 over a 6 year period. PREVIOUS RESOLUTION RESOLVED that the firm of Deloitte & Touche LLP be appointed auditors for the City of Saint John General Fund, the City of Saint John Water & Sewerage Utility, the Saint John Parking Commission, and the City of Saint John Reserve and Trust Funds for a four year period commencing with the year 2012 with the option for two one year extensions STRATEGIC ALIGNMENT This report aligns with being fiscally responsible by performing the renewal of the auditing services and leveraged an opportunity by combining with other related entities to obtain an efficient audit process both economically and operationally. REPORT In 2012 Deloitte LLP was appointed auditors for the City of Saint John General Fund, the City of Saint John Water & Sewerage Utility, the Saint John Parking Commission, and the City of Saint John Reserve and Trust Funds for a four year period plus two year extension commencing with the year 2012 and expiring at the end of the 2017 audit year. The City determined that it would be beneficial from a cost perspective to issue a joint request for proposal for audit services with the controlled entities and recommended to the Finance Committee that the opportunity be pursued. Upon approval by the Finance Committee, the City discussed with all the controlled entities and determined which would be interested in joining the City on a joint proposal for audit services. On August 17, 2018, the City issued a RFP for audit services for a four year period plus two year extension at the option of the City commencing with the year 2018. The RFP included the following entities: 1. Consolidated Financial Statements of the City of Saint John: o The City of Saint John General Operating Fund o The City of Saint John General Capital and Loan Fund o The City of Saint John Water and Sewerage Utility Operating Fund 5 -3- o The City of Saint John Water and Sewerage Utility Capital and Loan Fund o Saint John Police Commission o Consolidation procedures for all entities controlled by the City 2. The City of Saint John Trust Funds 3. Saint John Parking Commission 4. Saint John Transit Commission 5. Develop Saint John 6. Saint John Free Public Library 7. Saint John Aquatic Centre Commission 8. Saint John Trade and Convention Centre The deadline for submission was September 6th and as a result of the RFP for auditing services, submissions were received from 3 firms as follows: 1. KPMG 2. Ernst & Young 3. Deloitte LLP The evaluation process was undertaken by a team made up of professional staff in finance following the City's standard procurement procedures. The final scoring results from the evaluation process indicated that Deloitte LLP was the highest score and is the lowest bidder. The total cost of the contract, if awarded to the lowest bidder as recommended, will be $786,770 over a 6 year period (excluding HST). It is recommended that Deloitte LLP be approved as auditors for the City and the controlled entities for the term of four years with an option for a two year extension. SERVICE AND FINANCIAL OUTCOMES Total cost savings and more efficient audit process by collaborating audit services with the City and it's controlled entities. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS N/A ATTACHMENTS N/A n The City of Saint John Budget to Projected Variance Report For the Year Ended December 31, 2018 City of Saint John 2017 2018 2018 2018 2018 Approved Year-to-date Year-to-date Annual Year-end 2018 Budget Budget Budget Actual Budget Projection Variance REVENUES Property taxes 120,853,074 70,769,468 72,893,422 121,319,088 123,443,042 2,123,954 Equalization & Unconditional Grant 20,225,932 9,685,201 8,741,505 16,603,206 15,659,510 (943,696) Financial Assistance - 1,239,537 1,239,537 4,717,196 4,717,196 Surplus 2nd previous year 416,472 780,794 780,794 1,338,515 1,338,515 Growth & Community Development Services 2,815,150 1,381,336 1,488,767 2,503,571 2,617,409 113,838 Public Safety Services 2,013,605 1,050,724 1,141,729 1,887,022 1,701,622 (185,400) Transportation & Environment Services 3,884,188 2,089,543 2,278,617 3,982,308 4,172,793 190,485 Finance & Administrative Services 3,678,046 2,144,365 2,257,356 3,654,886 3,938,470 283,584 Corporate Services 135,000 49,574 3,017 85,000 70,899 (14,101) TOTAL REVENUES 154,021,467 89,190,542 90,824,744 156,090,792 157,659,456 1,568,664 EXPENDITURES Growth & Community Development Services 11,176,550 6,895,021 7,248,420 11,230,732 11,185,481 45,251 Public Safety Services 52,636,773 31,446,688 31,467,450 55,385,779 55,522,596 (136,817) Transportation & Environment Services 43,405,710 25,486,327 24,495,404 43,720,502 44,136,317 (415,815) Finance & Administrative Services 9,727,929 6,481,100 6,333,931 9,503,272 9,580,152 (76,880) Corporate Services 7,843,648 4,593,951 4,474,861 7,928,039 7,784,016 144,023 Other Charges 29,230,857 16,156,953 16,553,239 28,322,468 28,626,336 (303,868) TOTAL EXPENDITURES 154,021,467 91,060,040 90,573,305 156,090,792 156,834,898 (744,106) General Fund Surplus (Deficit) (1,869,498) 251,439 - 824,558 824,558 1 7 ON F - �RCC'9S T Objectives: • To review July 2018 results of the General and Utility Operating Funds; • To provide 2018 Year End Projections based on July Results. 2 9 Q -)-- SAINT JOHN Recurring Revenues Property Taxes Unconditional Grant Own Source Revenues Recurring Expenses Structural Deficit Non Recurring Revenues Carry Over Surplus Financial Assistance New Deal Surplus SUMMARY. --A- July Y -T -D Annual __.W % of Annual Year -End Projected Results Budget Budget Projection Variance 72,893,422 121,319,088 60.08% 123,443,042 2,123,954 8,741,505 16,603,206 52.65% 15,659,510 -943,696 7,169,486 12,112,787 59.19% 12,501,193 388,406 88,804,413 150,035,081 59.19% 151,603,745 1,568,664 90,573,305 156,090,792 58.03% 156,834,898 -744,106 -1,768,892 -6,055,711 -5,231,153 780,794 1,239,537 1,338,515 1,239,537 3,477,659 58.33% 100.00% 0.00% 1,338,515 - 1,239,537 - 3,477,659 - 251,439 0 824,558 824,558 • Overall results: Projecting a net year end surplus of $825K or 0.5% of Budget Changes since April Forecasts: • EMO projected a bigger deficit due to flood and other events: $214K • Aquatic Centre projected deficit: $306K — City share • Higher Coast Guard Site demolition costs • Lower debt service charges (projected to borrow less in December) -$256K 3 10 0.5% of Budget SAINT JOHN Revenues Property Taxes Equalization & Unconditional Grant Financial Assistance Surplus 2nd Previous Year Growth & Community Development Services Police & PSCC Fire & EMO Transportation & Environment Services Finance & Administrative Services Corporate Services Total Revenue 2018 July Y -T -D Results Annual Budget % of Annual Budget Year -End Projection Projected Variance 72, 893, 422 121, 319, 088 60.08% 123, 443, 042 2,123, 954 8,741,505 16, 603, 206 52.65% 15, 659, 510 -943,696 1,239,537 4,717,196 26.28% 4,717,196 0 780,794 1,338,515 58.33% 1,338,515 0 1,488,767 2,503,571 59.47% 2,617,409 113,838 1,013,261 1,476,822 68.61% 1,473,503 -3,319 128,468 410,200 31.32% 228,119 -182,081 2,278,617 3,982,308 57.22% 4,172, 793 190,485 2,257,356 3,654,886 61.76% 3,938,470 283,584 3,017 85,000 3.55% 70,899 -J-4101 90,824,744 156,090,792 58.19% 157,659,456 Q_ 1,568,64 Maior Revenue Variances: It • Extra net revenue from LNG: $1.18 Mil 1% of Budget • Building & Plumbing permits: $69K • Fire training: -$187K • Parking: $110K • Short term interest revenue: $350K SAINT JOHN 2018 July Y -T -D Results Annual Budget % of Annual Budget Year -End Projection Projected Variance Expenses Growth & Community Development Services 7,248,420 11,230,732 64.54% 11,185,481 Police & PSCC 15,770,823 28,116,372 56.09% 28,095,611 Fire & EMO 13,727,911 24,026,407 57.14% 24,131,985 Other Public Safety Services 1,968,716 3,243,000 60.71% 3,295,000 Transportation & Environment Services 24,495,404 43,720,502 56.03% 44,136,317 Finance &Administrative Services 6,333,931 9,503,272 66.65% 9,580,152 Corporate Services 4,474,861 7,928,039 56.44% 7,784,016 Other Charges 16,553,239 28,322,468 58.45% 28,626,336 Total Expenditures 90,573,305 156,090,792 58.03% 156,834,898 5 12 45,251 20,761 -105,578 -52,000 -415,815 -76,880 144,023 0.5% of Budget SAINT JOHN Xl 2018 44,376,613 79,383,787 % of 78,459,709 924,078 July Y -T -D Annual Annual Year -End Projected Results Budget Budget Projection Variance Salaries & Benefits 44,376,613 79,383,787 55.90% 78,459,709 924,078 Rentals - Vehicles & Equipment 496,977 820,538 60.57% 662,636 157,902 Salt & Sand 492,076 988,050 49.80% 861,050 127,000 Vehicles 219,375 400,000 54.84% 250,000 150,000 Fuel 853,376 1,487,883 57.36% 1,375,128 112,755 Proffessional Services 398,530 698,635 57.04% 830,193 -131,558 Roads 760,427 615,100 123.63% 1,235,100 -620,000 General Services 536,536 781,300 68.67% 1,323,360 -542,060 Capital from Operating 1,429,985 467,687 305.76% 1,624,851 -1,157,164 Regional Facillities Commission 1,578,932 2,027,020 77.89% 2,333,978 -306,958 Pension Going Concern Payment 5,166,556 9,588,000 53.89% 9,325,000 263,000 Fiscal Charges 9,359,557 16,709,579 56.01% 16,453,381 256,198 Other Expenses 24,904,365 42,123,213 59.12% 42,100,512 22,701 Total Expenditures 90,573,305 156,090,792 58.03% 156,834,898 C -744,106- 13 0.50% of Budget SAINT JOHN PERMITS PLANNING FEES DANGEROUS BUILDINGS EXTERNAL FUNDING MARKET SQUARE ITOTAL REVENUES July 2018 July 2018 YTD 2018 ANNUAL YTD Budget Revenues VARIANCE REVENUES BUDGET 2018 YE FORECAST VARIANCE 482,730 663,727 180,997 PERMITS 822,200 904,787 82,58 56,850 58,009 1,159 PLANNING FEES 93,071 96,200 3,12 120,000 35,611 -84,389 ENFORCEMENT 240,000 273,571 33,57 28,000 16,000 -12,000 EXTERNAL FUNDING 48,000 48,000 693,756 715,420 21,664 MARKET SQUARE 1,300,300 1,294,851 -5,44 1,381,336 1,488,767 107,431 TOTAL REVENUES 2,503,571 2,617,409 /0'0113,83 ■ July 2018 YTD Budget NJ uly 2018 YTD Revenues 800,000 1,400,000 700,000 11200,000 600,000 500,000 1,000,000 400,000 800,000 300,000 600,000 200,000 400,000 100,000 200,000 � � P PRZ `s ■ 2018 BUDGET ■ 2018 YE FORECAST SAINT JOHN 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 SALARIES & GENERAL DEVELOPMENT ABCS BENEFITS EXPENSES GRANTS NJ uly 2018 YTD Budget NJ uly 2018 YTD Expenses 5 July 2018 YTD July 2018 YTD EXPENSES Budget Expenses VARIANCE SALARIES & BENEFITS 2,031,195 1,979,812 51,383 GENERAL EXPENSES 740,039 806,858 -66,819 DEVELOPMENT GRANTS 156,662 83,169 73,493 ABCS 3,967,125 4,378,581 -411,456 TOTAL EXPENSES 6,895,021 7,248,420 -353,399 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 SALARIES & GENERAL DEVELOPMENT ABCS BENEFITS EXPENSES GRANTS NJ uly 2018 YTD Budget NJ uly 2018 YTD Expenses 5 ■ 2018 BUDGET ■ 2018 YE FORECAST 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 SALARIES & GENERAL DEVELOPMENT ABCS BENEFITS EXPENSES GRANTS SAINT JOHN 2018 ANNUAL EXPENSES BUDGET 2018 YE FORECAST VARIANCE SALARIES & BENEFITS 3,509,627 3,419,572 90,05` GENERAL EXPENSES 1,237,701 1,282,505 -44,802 DEVELOPMENT GRANTS 300,000 300,000 ABCs 6,183,404 6,183,404 TOTAL EXPENSES 11,230,732 11,185,481 K0045,251 ■ 2018 BUDGET ■ 2018 YE FORECAST 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 SALARIES & GENERAL DEVELOPMENT ABCS BENEFITS EXPENSES GRANTS SAINT JOHN • Revenue: Revenues are forecasted to be up as a result of continued strong development activity for 2018. • Expenses are projected to be on budget with positive variance. • Overall Results: Projecting net year end surplus of $159,089. 16 SAINT JOHN Saint John Police Force 2018 Revenue Sources Prisoner Lodging Accident Reports Secondments Taxi Licences Other - Clearance Letters Other Revenue - Extra Duty PNB Agreement - Cells Auction Proceeds Aft\ V/ Ah■ M■■ I AM Annual YTD July 30, 2018 Year End I Budget Budget Actual Variance Projection I Variance $ 125,000 $ 62,500 $ 39,975 $ 22,525 $ 70,000 $ 55,000 20,000 11,662 11,560 (102) 20,000 - 80,000 40,000 54,155 14,155 110,000 30,000 40,000 23,331 26,950 3,619 35,000 (5,000) 80,000 46,662 57,566 10,904 90,000 10,000 70,000 40,831 60,254 19,423 85,000 15,000 65,775 32,886 32,844 42 65,775 - - 1,681 1,681 1,681 1,681 $480,775 $257,872 $284,985 $27,113 $477,456 -$3,319 17 SAINT JOHN Wages & Fringe Benefits Goods & Services 12,073,933 12,172,220 -98,287 22,110,625 22,042,735 67,890 2,070,319 1,931,996 138,323 3,578,668 3,633,511 -54,843 Surplus/(Deficit) $14,144,252 $14,104,216 $40,036 $25,689,293 $25,676,246 $13,047 FTEs 175 174 -1 175 174 -1 18 SAINT JOHN Annual Year End Budget Actual Variance Budget Projection Variance 12,073,933 12,172,220 -98,287 22,110,625 22,042,735 67,890 2,070,319 1,931,996 138,323 3,578,668 3,633,511 -54,843 Surplus/(Deficit) $14,144,252 $14,104,216 $40,036 $25,689,293 $25,676,246 $13,047 FTEs 175 174 -1 175 174 -1 18 SAINT JOHN 0 a Ah IL V S Ah Ah Annual YTD July 31, 2018 Year End Budaet Budaet Actual Variance Proiection I Variance Emergency Dispatch 1 $996,047 1 $581,027 $728,276 1 $ 147,249 1 $996,047 $ - 19 SAINT JOHN Wages & Fringe Benefits Goods & Services Surplus/(Deficit) July 2018 1,234,192 117,009 52,619 1,487 Annual Year End 9,948 (2,234) Budget Actual Variance Budget Projection Variance 1,286,811 118,496 1,234,192 117,009 52,619 1,487 2,223,879 203,200 21213,931 205,434 9,948 (2,234) $ 1,405,307 $1,351,201 $54,106 $2,427,079 $2,419,365 $ 7,714 ► ► ► ► ► ► FTEs 28 26 -2 28 28 0 20 SAINT JOHN ■ July 2018 YTD Budget 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 ■ July 2018 YTD Revenues 14 TRAINING PARTNERSHIP MISCELLANEOUS 21 July 2018 YTD July 2018 YTD REVENUES REVENUES Budget Revenues VARIANCE TRAINING 138,250 24,478 -113,772 PARTNERSHIP 71,250 98,375 27,125 MISCELLANEOUS REVENUE 2,331 5,615 3,284 TOTAL REVENUES 211,831 128,468 -83,363 ■ July 2018 YTD Budget 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 ■ July 2018 YTD Revenues 14 TRAINING PARTNERSHIP MISCELLANEOUS 21 AL REVENUES 4 ■ 2018 ANNUAL BUDGET 250,000 200,000 150,000 100,000 50,000 19 - 2018 YE FORECAST TRAINING PARTNERSHIP MISCELLANEOUS REVENUES SAINT JOHN 2018 ANNUAL REVENUES BUDGET 2018 YE FORECAST VARIANCE TRAINING 237,000 50,000 -187,000 PARTNERSHIP 169,200 169,200 0 MISCELLANEOUS REVENUE 4,000 8,919 4,919 AL REVENUES 4 ■ 2018 ANNUAL BUDGET 250,000 200,000 150,000 100,000 50,000 19 - 2018 YE FORECAST TRAINING PARTNERSHIP MISCELLANEOUS REVENUES SAINT JOHN 15 2v 2018 ANNUAL BUDGET 2018 YE FORECAST 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 7 SAINT JOHN July 2018 YTD July 2018 YTD EXPENSES Budget Expenses VARIANCE SALARIES & BENEFITS 12,553,772 12,425,413 128,359 GENERAL SERVICES 588,619 356,213 232,406 OTHER EXPENSES 862,995 946,285 -83,290 TOTAL EXPENSES 14,005,386 13,727,911 277,475 15 2v 2018 ANNUAL BUDGET 2018 YE FORECAST 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 7 SAINT JOHN 2018 ANNUAL EXPENSES BUDGET 2018 YE FORECAST Variance SALARIES & BENEFITS 21,686,672 21,658,841 27,831 GENERAL SERVICES 11009,174 983,170 26,004 OTHER EXPENSES 1,330,561 1,489,974 -159,413 TOTAL EXPENSES 24,026,407 23,951,416 -105,578 15 2v 2018 ANNUAL BUDGET 2018 YE FORECAST 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 7 SAINT JOHN 2018 BUDGET ■ 2018 YE FORECAST 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 � - wk� Q � Q I 23 Ju1y2018YTD 2018 YE REVENUES 2018 BUDGET FORECAST VARIANCE PERMITS & LICENSES - 48,000 48,000 RENTALS & FEES 1,006,758 1,019,000 12,242 PARKING METER BY-LAW 305,000 338,000 33,000 PARKING METERS 1,098,000 1,160,000 62,000 TRAFFIC BY-LAW 368,000 383,000 15,000 COURT FINES 19,000 16,000 CONTRIBUTION FROM OTHERS 250,000 250,000 0 UTILITY CUTS 898,350 898,350 0 OTHER MISC REVENUES/ADVT 37,200 60,443 23,243 TOTALREVENUES 3,982,308 4,172,793 190,485 2018 BUDGET ■ 2018 YE FORECAST 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 � - wk� Q � Q I 23 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 ■ July 2018 YTD Budget ■ July 2018YTD Revenues M Ju1y2018YTD Ju1y2018YTD REVENUES Budget Revenues VARIANCE PERMITS & LICENSES - 48,227 48,227 RENTALS & FEES 535,500 503,086 �QQ• PARKING METER BY-LAW 173,250 209,416 36,166 PARKING METERS 657,000 678,632 21,632 TRAFFIC BY-LAW 214,662 217,975 3,313 COURT FINES 11,081 9,995 CONTRIBUTION FROM OTHERS 142,200 143,276 1,076 UTILITY CUTS 325,000 433,697 108,697 OTHER MISC REVENUES 30,850 34,313 3,463 TOTAL REVENUES 2,089,543 2,278,617 189,074 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 ■ July 2018 YTD Budget ■ July 2018YTD Revenues M P� Q O SAINT JOHN 4�� P� �QQ• �C� QAC, pJ�' ��p� ��? 4� P� Q O SAINT JOHN 17 10,000,000 9,000, 000 8,000, 000 7,000,000 6,000, 000 5,000, 000 4,000, 000 3,000, 000 2,000, 000 1,000, 000 0 <bF 4 I JULY 2018YTD BUDGET ■ JULY 2018YTD EXPENSES 24 SAINT JOHN J U LY 2018 YTD J U LY 2018 YTD EXPENDITURES BUDGET EXPENSES VARIANCE SALARIES & BENEFITS 9,317,868 9,264,159 53,709 GENERALSERVICES 3,393,547 3,157,448 236,099 ROADS 585,000 760,427 (175,427) ASSET PURCHASES 195,200 312,296 (117,096) CONTRACTED SERVICES 544,657 656,046 (111,389) FUEL 708,611 607,367 101,244 ENGINEERING 180,000 114,960 65,040 VEHICLE & EQPT RENTALS 375,520 444,449 (68,929) ASPHALT 900,000 290,152 609,848 PARTS 63,100 28,918 34,182 SALT & SAND 552,900 492,076 60,824 OTHER EXPENSES 3,482,169 3,207,393 274,776 GRANTS 638,200 534,611 103,589 AGENCIES, BOARDS, COMMS 4,549,555 4,625,102 (75,547) TOTAL EXPENDITURES 25,486,327 24,495,4041 990,923 17 10,000,000 9,000, 000 8,000, 000 7,000,000 6,000, 000 5,000, 000 4,000, 000 3,000, 000 2,000, 000 1,000, 000 0 <bF 4 I JULY 2018YTD BUDGET ■ JULY 2018YTD EXPENSES 24 SAINT JOHN 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000, 000 6,000, 000 4,000, 000 2,000, 000 0 ■ 2018 BU DG ET ■ 2018 YE FORECAST OPS° , P 25 4 SAINT JOHN 2018 YE EXPENDITURES 2018 BUDGET FORECAST VARIANCE SALARIES & BENEFITS 16,149,864 15,870,812 279,052 GENERALSERVICES 6,200,891 6,273,453 -72,562 ROADS 615,100 1,235,100 -620,000 ASSET PURCHASES 324,718 478,724 -154,006 CONTRACTED SERVICES 672,157 644,297 27,860 FUEL 1,103,423 977,050 126,373 ENGINEERING 325,000 381,055 -56,055 VEHICLE & EQPT RENTALS 715,878 557,275 158,603 ASPHALT 1,504,250 1,495,000 9,250 PARTS 110,400 66,500 43,900 SALT & SAND 988,050 861,050 127,000 OTHER EXPENSES 5,602,344 5,605,616 -3,272 GRANTS 752,121 727,121 25,000 AGENCIES, BOARDS, COMMS 8,656,306 8,963,264 -306,958 TOTAL EXPENDITURES 43,720,5021 44,136,317 -415,815 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000, 000 6,000, 000 4,000, 000 2,000, 000 0 ■ 2018 BU DG ET ■ 2018 YE FORECAST OPS° , P 25 4 SAINT JOHN 1,400,000 July 2018YTD Budget July 2018YTD Revenues 1,200,000 1,000,000 800,000 600,000 400,000 200,000 �5�1 O 19 26 ■ 2018 3U DC ET ■ 2018 YE FORECAST 2,500,000 a 7.8% of Budget 2,000,000 1,500,000 1,000,000 500,000 RENTALS & FEES INTER -FUND INTEREST INCOME INTERNAL OTHER CHARGES SERVICES MISCELLANEOUS REVENUES 10 SAINT JOHN July 2018 YTD July 2018 YTD 2018 YE REVENUES Budget Revenues VARIANCE REVENUES 2018BUDGET FORECAST VARIANCE RENTALS & FEES 588,710 543,381 -45,329 RENTALS & FEES 852,886 804,470 -48,416 INTER -FUND CHARGES 1,166,662 1,166,634 -28 INTER -FUND CHARGES 2,000,000 2,000,000 0 INTEREST INCOME 175,000 341,849 166,849 INTERESTINCOME 300,000 650,000 350,000 INTERNAL SERVICES 131,743 122,670 -9,073 INTERNAL SERVICES 243,000 228,000 -15,000 OTHER MISCELLANEOUS 82,250 82,822 572 OTHER MISCELLANEOUS REVENUES 259,000 256,000 -3,000 TOTAL REVENUES 2,144,365 2,257,356 112,991 TOTAL REVENUES 3,654,886 3,938,470 283,5 1,400,000 July 2018YTD Budget July 2018YTD Revenues 1,200,000 1,000,000 800,000 600,000 400,000 200,000 �5�1 O 19 26 ■ 2018 3U DC ET ■ 2018 YE FORECAST 2,500,000 a 7.8% of Budget 2,000,000 1,500,000 1,000,000 500,000 RENTALS & FEES INTER -FUND INTEREST INCOME INTERNAL OTHER CHARGES SERVICES MISCELLANEOUS REVENUES 10 SAINT JOHN ■ July 2018YTD Budget July 2018 YTD Expenses 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0- L (1,000,000) SALARIES& GE SERVICES OTHER EXPENSES PARTS BENEFITS (2,000,000) {3,000,000} (4,000,000) (5,000,000) 20 EXPENSES July 2018 July 2018 YTD Variance EXPENSES YTD Budget Expenses VARIANCE SALARIES & BENEFITS 4,424,387 4,214,066 210,321 GENERALSERVICES (3,584,553) (3,132,149) (452,404) OTHER EXPENSES 4,764,866 4,425,166 339,700 PARTS 876,400 826,493 49,907 TOTAL EXPENSES 6,481,100 6,333,576 147,524 ■ July 2018YTD Budget July 2018 YTD Expenses 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0- L (1,000,000) SALARIES& GE SERVICES OTHER EXPENSES PARTS BENEFITS (2,000,000) {3,000,000} (4,000,000) (5,000,000) 20 EXPENSES 2018 BUDGET 2018 YE FORECAST Variance SALARIES & BENEFITS 7,667,129 7,531,472 135,657 GENERALSERVICES -6,139,819 -5,742,385 -397,434 OTHER EXPENSES 6,470,962 6,289,065 181,897 PARTS 1,505,000 1,502,000 3,000 TOTAL EXPENSES 9,503,272 9,580,152 -76,88 M 2018 B U DG ET 10,000,000 5,000, 000 6,000, 000 4,000, 000 2,000,000 O -2,0001000 -4,000,000 -6,000,000 -SsOOOsOOO 27 0.8% of Budget m 2015 YE FC)R ECAST OTHER PARTS E3{ PE NSES SAINT JOHN • Revenues: Projecting to be $283K over budget -mainly due to higher interest income. • Expenses: Projecting to be over budget by $77K -mainly due to unbudgeted Coast Guard site preparation costs which is partly offset by savings from vacancies. • Overall Results: Projecting net year end surplus of approximately $2O6K. 21 M Q -)-- SAINT JOHN July 2018 YTD July 2018 YTD 2018 YE REVENUES Budget Revenues VARIANCE PARTNERSHIP 2,912 - -2,912 INTERNAL SERVICES 46,662 3,017 -43,645 TOTAL REVENUES 49,574 3,017 - 46,557 ■ July 2018 YTD Budget 50,000 40,000 30,000 20,000 10,000 ■ July 2018 YTD Revenues PARTNERSHIP INTERNAL SERVICES 22 29 ■ 2018 ANNUAL BUDGET 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 PARTNERSHIP 2018 YE FORECAST INTERNAL SERVICES SAINT JOHN 2018 YE REVENUES 2018 BUDGET FORECAST VARIANCE PARTNERSHIP 5,000 - -5,000 INTERNAL SERVICES 80,000 70,899 -9,101 TOTAL REVENUES 85,000 70,899 - 14,101 ■ 2018 ANNUAL BUDGET 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 PARTNERSHIP 2018 YE FORECAST INTERNAL SERVICES SAINT JOHN July 2018 YTD Budget July 2018 YTD Expenses 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 SALARIES & BENEFITS GOODS & SERVICES AGENCIES, BOARDS & COMMISSIONS EXPENSES July 2018YTD July2018YTD Variance EXPENSES Budget Expenses VARIANCE SALARIES & BENEFITS 3,177,428 3,086,756 90,672 GOODS & SERVICES 1,390,819 1,370,970 19,849 AGENCIES, BOARDS & COMMISSIONS 25,704 17,135 8,569 TOTAL EXPENDITURES 4,593,951 4,474,861 119,090 July 2018 YTD Budget July 2018 YTD Expenses 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 SALARIES & BENEFITS GOODS & SERVICES AGENCIES, BOARDS & COMMISSIONS EXPENSES 2018 BUDGET 2018YEFORECAST Variance SALARIES & BENEFITS 5,501,893 5,522,346 -20,453 GOODS & SERVICES 2,391,811 2,227,401 164,476 AGENCIES, BOARDS & COMMISSIONS 34,269 34,269 0 TOTAL EXPENSES 7,928,039 7,784,016 144,023 23 30 6,000,000 0 2018 ANNUAL BUDGET 2018 YE FORECAST 5,000,000 j - 4,000,000 3,000,000 2,000,000 1,000,000 0 SALARIES & BENEFITS GOODS & SERVICES AGENCIES, BOARDS & COMMISSIONS SAINT JOHN • Revenues: Projecting to be under budget by approximately $141000 Budgeted NEB Working Group activities were suspended in 2018 as a result of the Energy East pipeline project not moving forward. Bell Loyalty payments are lower than planned as a result of lower contract costs. • Expenses: Projecting to be under budget by approximately $144,000 Delays infilling vacant positions and planned special projects (i.e., technology renewal). • Overall Results: Projecting a net year end surplus of approximately $130,000 on a $7.93 million budget (1.6/). 31 SAINT JOHN a" 32 SAINT JOHN ,Ong. jhjlkll.� OF \0 ■ July 2018 YTD Budget ■ July 2018 YTD Revenues 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 J Z 0-r July 2018 YTD July 2018 YTD REVENUES Budget Revenues VARIANCE FLAT RATE 10,871,000 10,828,757 (42,243) METER REVENUE 9,783,000 10,543,073 760,073 FIRE PROTECTION/STORM SEWER 1,924,993 1,924,993 0 PREVIOUS YEARS 1,217,000 1,217,000 0 SURPLUS 709,912 709,912 0 OTHER MISCELLANEOUS 1,977,000 2,121,000 144,000 REVENUES 1,142,479 1,304,581 162,102 TOTAL REVENUES 47,804,000 48,836,323 1,032,323 TOTAL REVENUES 24,431,384 25,311,316 879,932 ■ July 2018 YTD Budget ■ July 2018 YTD Revenues 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 J Z 0-r 25,000,000 20,000,000 15, 000, 000 10, 000, 000 5,000,000 2018 BUDGET ■ 2018 YE FORECAST SAINT JOHN 2018 YE REVENUES 2018 BUDGET FORECAST VARIANCE FLAT RATE 21,742,000 21,624,000 (118,000) METER REVENUE 19,568,000 20,574,323 1,006,323 FIRE PROTECTION/STORM SEWER 3,300,000 3,300,000 0 PREVIOUS YEARS SURPLUS 1,217,000 1,217,000 0 OTHER MISCELLANEOUS REVENUES 1,977,000 2,121,000 144,000 TOTAL REVENUES 47,804,000 48,836,323 1,032,323 25,000,000 20,000,000 15, 000, 000 10, 000, 000 5,000,000 2018 BUDGET ■ 2018 YE FORECAST SAINT JOHN SENSES INKING WATER NDUSTRIAL WATER ASTEWATER NFRASTRUCTURE MGMT. 669,740 296,900 )THER CHARGES 8,863,128 8,743,935 FOTAL EXPENDITURES 22,004,975 22,032,691 July 2018 July 2018 YTD YTD Budget Expenses 5,377,543 6,071,080 641,276 573,643 6,453,288 6,347,132 NFRASTRUCTURE MGMT. 669,740 296,900 )THER CHARGES 8,863,128 8,743,935 FOTAL EXPENDITURES 22,004,975 22,032,691 ■ July 2018 YTD Budget July 2018 YTD Expenses 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 4- <) PO�0 O 25,000,000 -2018 ANNUAL BUDGET 20,000,000 15,000,000 10,000,000 5,000,000 0 It --w 2018 YE FORECAST SAINT JOHN 2018 ANNUAL 2018 YE VARIANCE EXPENSES BUDGET FORECAST Variance (693,537) DRINKING WATER 10,483,000 11,182,585 (699,585) 67,633 INDUSTRIAL WATER 1,696,000 1,601,076 94,924 106,156 WASTEWATER 11,268,000 10,949,066 318,934 INFRASTRUCTURE MGMT. 1,201,000 1,186,369 14,631 372,840 119,193 OTHER CHARGES 23,156,000 22,870,461 285,539 (27,715) TOTAL EXPENDITURES 47,804,000 47,789,557 14,443 ■ July 2018 YTD Budget July 2018 YTD Expenses 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 4- <) PO�0 O 25,000,000 -2018 ANNUAL BUDGET 20,000,000 15,000,000 10,000,000 5,000,000 0 It --w 2018 YE FORECAST SAINT JOHN Water and Sewer Budget to Projected Variance Report City of Saint John 2017 2018 2018 2018 2018 Approved Year-to-date Year-to-date Annual Year-end 2018 Budget Budget Budget Actual Budget Projection Variance REVENUES 9,512,000 5,377,543 6,071,080 10,483,000 11,182,585 (699,585) Flat Rate 20,687,000 10,871,000 10,828,757 21,742,000 21,624,000 (118,000) Meter Revenue 14,219,850 7,758,000 7,520,735 15,518,000 15,042,858 (475,142) Industrial Meter Revenue 5,243,150 2,025,000 3,022,338 4,050,000 5,531,468 1,481,468 Surplus 2nd previous year 1,164,000 709,912 709,912 1,217,000 1,217,000 - Fire Protection 2,300,000 1,341,662 1,341,662 2,300,000 2,300,000 Storm Sewer 965,000 583,331 583,331 1,000,000 1,000,000 280,539 Other Revenues 671,000 1,142,479 1,304,581 1,977,000 2,121,000 144,000 TOTAL REVENUES 45,250,000 24,431,384 25,311,316 47,804,000 48,836,326 1,032,326 EXPENDITURES Drinking Water Watershed Management 229,000 130,442 125,280 211,000 201,151 9,849 Water Treatment 2,455,000 1,390,601 1,651,715 3,122,000 3,811,823 (689,823) Water Pumping & Storage 1,086,000 695,454 716,036 1,166,000 1,278,554 (112,554) Transmission & Distribution 4,992,000 2,754,011 3,166,729 5,281,000 5,202,617 78,383 Customer Metering 750,000 407,035 411,320 703,000 688,440 14,560 22,325,000 8,863,128 8,743,935 23,156,000 22,870,461 285,539 TOTAL EXPENDITURES 45,250,000 22,004,975 22,032,690 47,804,000 47,789,557 14,443 1 36 9,512,000 5,377,543 6,071,080 10,483,000 11,182,585 (699,585) Industrial Water Ile,Y Watershed Management 467,000 4172,448 169,826 524,000 511,733 12,267 Water Pumping & Transmission 942,000 419,524 362,584 1,051,000 1,002,813 48,187 Customer Metering 110,000 49,304 41,233 121,000 86,530 34,470 22,325,000 8,863,128 8,743,935 23,156,000 22,870,461 285,539 TOTAL EXPENDITURES 45,250,000 22,004,975 22,032,690 47,804,000 47,789,557 14,443 1 36 1,519,000 641,276 573,643 1,696,000 1,601,076 94,924 Wastewater Wastewater Pumping 3,005,000 1,607,515 1,777,941 2,859,000 2,812,305 46,695 Wastewater Collection 3,192,000 1,878,817 1,745,263 3,440,000 3,231,411 208,589 WasteWater Treatment 4,367,000 2,966,956 2,823,928 4,969,000 4,905,350 63,650 22,325,000 8,863,128 8,743,935 23,156,000 22,870,461 285,539 TOTAL EXPENDITURES 45,250,000 22,004,975 22,032,690 47,804,000 47,789,557 14,443 1 36 10,564,000 6,453,288 6,347,132 11,268,000 10,949,066 318,934 Infrastructure Management Municipal Engineering 1,330,000 669,740 296,900 1,201,000 1,186,369 14,631 1,330,000 669,740 296,900 1,201,000 1,186,369 14,631 Other Charges Other Internal Charges 750,000 522,074 441,281 895,000 895,000 Debt Servicing 7,458,000 3,873,230 3,875,660 10,102,000 9,821,461 280,539 Capital from Operating 12,725,000 3,660,500 3,660,500 10,775,000 10,775,000 Post Employment Benefits 1,392,000 807,324 766,494 1,384,000 1,379,000 5,000 22,325,000 8,863,128 8,743,935 23,156,000 22,870,461 285,539 TOTAL EXPENDITURES 45,250,000 22,004,975 22,032,690 47,804,000 47,789,557 14,443 1 36 Water and Sewer Budget to Projected Variance Report City of Saint John 2017 2018 2018 2018 2018 Approved Year-to-date Year-to-date Annual Year-end 2018 Budget Budget Budget Actual Budget Projection Variance SURPLUS/(DEFICIT) 2,426,409 3,278,626 - 1,046,769 1,046,769 2 37 The City of Saint John 2019 GENERAL OPERATING BUDGET City of Saint John 2019 Budget 2018 2019 Approved Proposed Budget Budget REVENUES 350,000 475,000 Property taxes 121,319,088 121,925,686 Financial Assistance 4,717,196 8,912,315 Equalization & Unconditional Grant 16,603,206 16,603,206 Surplus 2nd previous year 1,338,515 86,557 Growth & Community Development Services 2,503,571 2,624,734 Public Safety Services 1,887,022 1,695,896 Transportation & Environment Services 3,982,308 4,060,970 Finance & Administrative Services 3,654,886 3,743,000 Corporate Services 85,000 112,000 TOTAL REVENUES 156,090,792 159,764,364 EXPENDITURES Growth & Community Development Services 350,000 475,000 Growth & Community Planning Services 821,002 821,002 Growth & Community Planning Services 1,730,540 1,783,598 One Stop Development Shop Services Heritage Conservation 181,551 190,562 Permitting & Inpection Service & By -Law Compliance 2,142,814 2,142,898 Infrastructure Development 525,393 539,315 Economic Development Service Economic development agencies Growth Reserve Fund Regional Economic Development (Enterprise) Develop Saint John Destination Marketing Organization 4,580,298 4,656,373 350,000 350,000 475,000 475,000 821,002 821,002 1,033,495 1,033,495 2,679,497 2,679,497 Saint John Trade and Convention Centre 638,899 625,570 Harbour Station 483,513 588,525 Urban Development Service Market Square - Common Area Arts & Culture Cultural Affairs Imperial Theatre IN 3,801,909 3,893,592 2,195,207 2,195,207 117,030 108,030 355,850 360,205 1 The City of Saint John 2019 GENERAL OPERATING BUDGET City of Saint John 2019 Budget 2018 2019 Approved Proposed Budget Budget Saint John Arts Centre 83,938 84,125 Arts & Culture Board 70,000 70,000 Public Art - Maintenance and Repair 10,000 10,000 Remembrance Day Ceremonies 1,500 1,500 New Year/Canada Day Celebrations 15,000 15,000 653,318 648,860 Total Growth & Community Development Services 11,230,732 11,394,032 Public Safety Services Fire Rescue and Suppression Service 23,718,678 24,516,722 Water Supply and Hydrants 2,300,000 2,600,000 Emergency Management Service 307,729 332,918 Police Services 25,689,293 25,934,896 Public Safety Communications 2,427,079 2,488,542 Street Lighting 943,000 971,000 Total Public Safety Service 55,385,779 56,844,078 Transportation & Environment Service Roadway Maintenance Service Snow Control Streets 5,720,664 5,771,964 Street Cleaning 1,333,980 1,666,615 Utility Cuts 748,350 738,162 Street Services - Surface Maintenance 5,276,171 6,111,427 13,079,165 14,288,168 Sidewalk Maintenance Service Snow Control Sidewalk 1,218,951 1,100,482 Sidewalk Maintenance 790,995 703,316 39 2,009,946 1,803,798 Pedestrian & Traffic Management Service 2,348,975 2,287,375 Stormwater Management 3,785,485 3,566,967 Solid Waste Management 3,764,178 3,717,973 Engineering 533,278 551,949 Parks & City Landscape Parks Maintenance 2,780,807 2,762,749 Lifeguards 170,000 173,400 Urban Forestry 306,691 308,207 Mispec 5,000 5,000 2 39 The City of Saint John 2019 GENERAL OPERATING BUDGET City of Saint John 2019 Budget 2018 2019 Approved Proposed Budget Budget Saint John Horticultural Association 40,000 40,000 3,302,498 3,289,356 Sports & Recreation Facilities Service Arena Operation and Maintenance 1,567,165 1,658,448 Sportsfield Operation and Maintenance 1,319,091 1,426,408 Other Facility Operation and Maintenance 434,602 436,383 Minor Hockey Subsidy 173,000 173,000 Lord Beaverbrook Rink 159,382 159,382 Aquatic Centre 464,820 541,837 4,118,060 4,395,458 Neighbourhood Improvement Community Development 518,408 452,152 Neighbourhood Development 152,000 152,000 Loch Lomond Community Centre 45,000 45,000 PRO Kids 121,183 121,908 836,591 771,060 Community Development Service Grants Community Grant Program 179,721 179,721 Library 488,150 497,000 667,871 676,721 Recreation, Parks and Cultural Programming Recreation Programming 674,401 651,852 Contracted Service - Boys and Girls Club 133,838 135,844 Contracted Service - YMCA-FGCC/MCC 162,751 133,623 Contracted Service - North End Community Centre 160,568 164,614 PlaySJ Recreation Programming Grant 15,000 15,000 1,146,558 1,100,933 Parking Service (Administration Support) 583,943 617,188 Transit Service 7,543,954 7,977,405 Total Transportation & Environment Service 43,720,502 45,044,351 Finance and Administrative Services Financial Management Service Finance 1,746,323 1,731,950 Assessment 1,318,538 1,325,150 C .A The City of Saint John 2019 GENERAL OPERATING BUDGET City of Saint John 2019 Budget 2018 2019 Approved Proposed Budget Budget 3,064,861 3,057,100 Asset Management 649,203 676,163 Purchasing & Materials Management 1,115,837 1,109,526 Insurance Service 149,458 201,264 Liability Insurance 304,000 304,000 Facilities Management 1,323,653 1,433,564 City Market 1,084,324 989,928 Carpenter Shop 351,431 354,813 City Hall Building 1,892,991 1,225,384 Real Estate 216,717 267,688 6,438,411 5,886,167 Total Finance and Administrative Services 9,503,272 8,943,267 Corporate Services 649,203 676,163 City Manager 692,386 678,792 Legal Department 746,406 801,057 Common Clerk 569,921 581,685 Human Resources 1,463,712 1,516,207 Strategy, Continuous Improvement & Performance Reporting 592,568 606,164 Corporate Communications 438,613 444,504 Information Technology 2,273,965 2,387,097 Geographic Information Systems 466,996 358,001 Regional Services Commission 34,269 34,269 Mayor & Council - 300,000 Mayor's Office 176,000 194,911 Council 473,203 481,252 4 41 649,203 676,163 Total Corporate Services 7,928,039 8,083,939 Other Charges Fiscal Charges 16,709,579 16,917,646 Long Term Disability 1,022,300 845,692 Pension 9,588,000 9,574,000 PILT Adjustment 804 - Capital from Operating 467,687 617,359 Infrastructure Deficit - 500,000 Landfill Closure - 500,000 Restructuring Plan - 300,000 4 41 The City of Saint John 2019 GENERAL OPERATING BUDGET City of Saint John 2019 Budget 2018 Approved Budget 2019 Proposed Budget Others 534,098 200,000 Total Other Charges 28,322,468 29,454,697 TOTAL EXPENDITURES 156,090,792 159,764,364 42 to 40;FPOPOI, 0 0i00000 woo City of Saint John 2019 General Operating Budget 43 September 2018 SAINT JOHN Long Term Financial Plan Initiatives Target Deliverables Public Engagement Q1/ • Obtain community feedback respecting expectations and 2019 prioritization of service delivery through the Citizen Survey and online web based tool 10 Year Financial Plan Q2/ • Prepare a 10 -Year Operating and Capital Plan 2019 Financial Policies Q2/ • Council approved financial policies that will strengthen the 2019 governance respecting fiscal responsibility and influence decision making during the budget planning process; Financial Health Report Q4/ • Annual Report Card on Financial Health (Sustainability, Card 2019 Flexibility, Vulnerability) 44 SAINT JOHN Progress on Financial Policy Development Policy Title gohim� . FAS -001 Asset Management Approved FAS -002 Investment Management Approved FAS -003 Reserves Approved FAS -004 Operating Budget Approved FAS -005 Capital Budget Approved FAS -006 Debt Management Budget Q2/2019 FAS -007 Long Term Financial Plan Q2/2019 3 45 SAINT JOHN General Operating Budget Timeline • Sept 20: First Draft General Operating Budget to Finance Committee • October 11: Budget Presentation by Service Areas • October 25: Second Draft General Operating Budget to Finance Committee November 5: Draft General Operating Budget to Council for receive and file November 22: Third Draft General Operating Budget to Finance Committee (if required) Dec 6: Final Draft Budget to Finance Committee Dec 17: Final Draft Budget to Council for Approval 46 SAINT JOHN • Temporary financial assistance from the Province (New Deal) which will end in 2021; • 2019 amount committed under the New Deal: $8.9 Mil; • The City has been working collaboratively with the Province to solve the City's structural deficit problem; • Restriction under the Provincial Agreement: Minimize impacts on frontline service levels until such time as a solution is implemented • 2019 Budget is prepared assuming current service levels are maintained. 47 GO - SAINT JOHN Assumptions % Increase Assessment base growth 0.50% Own source revenues 1.00% Wages & Benefits 2.50% CPI 2.00% Recurring Expenses 2018 Approved 2019 Draft Wages & Benefits Budget Budget 2020 Forecast 2021 Forecast 2022 Forecast Recurring Revenues 10,610,300 10,419,692 10,518,350 10,724,684 10,952,151 Property Taxes 121,319,088 121,925,686 122,535,314 123,147,991 123,763,731 Unconditional Grant 16,603,206 16,603,206 16,603,206 16,603,206 16,603,206 Own Source Revenues 12,112,787 12,236,600 12,358,966 12,482,556 12,607,381 150,035,081 150,765,492 151,497,486 152,233,753 152,974,318 Recurring Expenses Wages & Benefits 79,383,787 80,988,046 83,012,747 85,088,066 87,215,267 Pension & LTD 10,610,300 10,419,692 10,518,350 10,724,684 10,952,151 Goods & Services 35,197,742 35,985,185 36,704,889 37,438,986 38,187,766 ABCs and Grants 13,720,893 14,336,436 14,623,165 14,915,628 15,213,941 Fiscal Charges 17,178,070 18,035,005 17,062,034 17,366,439 17,434,538 156,090,792 159,764,364 161,921,185 165,533,803 169, 003,663 Structural Deficit -6,055,711 -8,998,872 -10,423,699 -13,300,050 -16,029,344 Non Recurring Items Carry Over Surplus 1,338,515 86,557 Financial Assistance 1,239,537 New Deal 3,477,659 8,912,315 10,423,699 Surplus (Deficit) 0 0 0 -13,300,050 -16,029,344 48 r� SAINT JOHN Recurring Revenues Recurring Expenses In $ Millions 175.00 170.00 165.00 159.76 160.00 156.09 Gap Gap 155.00 5.97 4% 150.00 150.04 150.77 145.00 140.00 2018 Approved Budget 2019 Draft Budget 2020 Forecast 2021 Forecast 169.00 Gap 10.5% 152.97 2022 Forecast SAINT JOHN Saint John has unique challenges... $100,000 $80,000 $3,035 or 5.8% of $60,000 Income $40,000 $20,000 $52,132 $0 + City residents pay an unequitable tax burden $2,176 or 2.1% of Income $2,074 or 2.3% of $2,329 or 2.7% of Income Income Saint John Quispamsis Rothesay Grand Bay -Westfield ■ Median Household Income ■ Average Home - 170K - Taxes 50 rr SAINT JOHN • For 2019 Budget, It is recommended that Tax Rate be kept at 1.785 per $100 of assessment. • Saint John has maintained the same tax rate for 11 consecutive years despite slow growth during the last few years 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% -2.00% Saint John Tax Base Growth Rate (%) 2009 2010 2011 2012 2013 2014 2015 2016 2017 -0.48% 0.39% 2018 SAINT JOHN • Long Term Debt is still high — almost double 2006 amount however Debt Balance has been improving since 2014 ($119 Mil). • Goal: Bring Debt down to a more sustainable level GENERAL FUND DEBENTURE BALANCE 140,000,000 120,000,000 100,000,000 80,000,000 2006: $54,788,800 60,000,000 40,000,000 20,000,000 2014: $119,133,000 2017: $112,055,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 52 Projected 2018: $106,551,000 2015 2016 2017 2018 Projected SAINT JOHN General Fund Capital Investment Profile for Core and High Value Assets $250 $200 $150 $100 $50 $0 Infrastructure Deficit = $192,577,540 Infrastructure Deficit Examples: - Road Network: $63 Mil - Arenas: $13.5 Mil - Sports, Swimming, Recreational facilities: $12.2 - Harbour Station: $5 Mil - Fire Facilities: $4.8 Mil - Storm mains: $22.3 Mil Sustainable Funding Requirement = $35,993,215 per year 41 Time Period 53 Rating C D D+ to B- D+ D C+ fes' SAINT JOHN 140.00 Increase 0.5% 120.00 100.00 80.00 60.00 40.00 20.00 ■ 2018 Budget — 2019 Proposed In $ Millions Property Taxes Unconditional Financial Surplus -2nd Own Sourced Grant Assistance previous year Revenues 54 fes' SAINT JOHN 60.00 50.00 40.00 30.00 20.00 10.00 Increase 1.45 11.23 11.39 Growth & Community Development Increase 2.63% 56.84 SS_�9 2019 Budget in $ Millions Increase 3.03% 43.72 45.04 Public Safety Transportation Decrease 5.89 9.50 8.94 ■ Finance & Administration 2018 Budget 2019 Budget 55 Increase 1.97% 7.93 8.08 0 Corporate Services Increase 4.00 28.32 29.45 Others fes' SAINT JOHN 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 2.02 Increase 79.38 80.99 Salaries & Benefits 2019 Budget in $ Millions 2.24% Increase 35.20 35.99 4.49 1.8% Increase Decrease 13.72 14.34 10.61 10.42 10 Pension & LTD Goods & Services ABCs and Grants ■ 2018 Budget 2019 Budget 56 4.99 Increase 17.18 18.04 Fiscal Charges rr SAINT JOHN City Employees 2018 Establishment Changes 2019 Establishment Management/Professional Staff 88 88 Non -Union 6 6 Inside Workers 112 -1 111 Outside Workers 280 -2 278 Firefighters 144 144 Total - City of Saint John 630 -3 627 Saint John Police Commission Management/Professional Staff 15 1 16 Inside Workers 44 1 45 Police Association 144 144 Total - Saint John Police Commission 203 2 205 Total 833 -1 832 57 rr SAINT JOHN • Capital Budget policy: Increase funding for roads in the Operating Budget instead of borrowing ($600,000); • Capital Budget policy: Increase pay-as-you-go to gradually reduce debt ($150,000); • Asset Management &Capital Reserve Policies: Contribute to capital reserve to address infrastructure deficit ($500,000); • Operating Reserve Policy: Put money aside for future restructuring plan if sustainable solutions to the City's structural deficit problem are not achieved before 2020 ($300,000). 58 GO— SAINT JOHN 5.00 4.00 3.00 2.00 1.00 Investment in Roads from The General Operating Fund (in $ Millions) 3.45 Goal: Increase funding for Roads from the General Operating Fund to reduce borrowing 3.12 2.37 1.77 1.35 1.37 2013 Budget 2014 Budget 2015 Budget 2016 Budget 2017 Budget 2018 Budget 2019 Proposed 59 rr SAINT JOHN Example: Property Assessment $170,000, Tax rate: $1.785 per $100 of assessment Property Tax: $3,035 Growth & Community Development $88 Economic Development Agencies " Arts & Culture 4T i �M ir NEW �' Development yI V&IPT�' Roads, Sidewalks $360 and Snow control $51 Storm Water $68 �. Management $12 $65 Fire & Safety Services $540 1 �. .. Police Services &PSCC $540 Solid Waste collection Parks & Public Spaces W 41 Sports & Recreation 18 60 Community -, Development & Recreation ,y 4V. Transit & _,. Parking i 7 -- Asset Management General Government Debt Service & Special Pension $519 SAINT JOHN 3.00 2.50 2.00 1.50 1.00 0.50 F—Goal: Continue to make Strategic Investment in Growing the City Investment in Growth - Econonic Development Agencies (in $ Millions) 2.50 2.02 2015 Budget 2016 Budget 2017 Budget 61 2018 Budget 2019 Proposed SAINT JOHN • According to Public Sector Accounting Standards related to Landfill Closure, a liability for closure and post -closure care must be recognized in a government's financial statements as the landfill site's capacity is used; • Howe 's Lake Landfill was closed for use prior to 1982. The site is approximately 23 hectares and partially (1/3) closed; • Requirement to completely close the site (remaining 2/3); • High level estimate fora 5 year closure plan: $7.8 Mil; • Staff recommendation: Put $500K toward Landfill Closure in 2019. 62 GO— SAINT JOHN • 2019 budget addresses Council's priorities: • Invest in Growth & Community Development: Budget increase of 1.45%; • Invest in Safe City: Budget for Pubic Safety Services goes up by 2.63% • Invest in Municipal Infrastructure (Asset Management): $500K for funding Infrastructure Deficit; • Be fiscally responsible: Increase pay as you go to reduce debt ($150K) and Increase funding for Roads from the Operating Budget instead of borrowing ($600K) • The City continues to work with the Province to find solutions to the City's structural deficit problem. However, the City is also preparing for the worst case scenario by saving money for a restructuring plan if sustainable solutions are not reached by 2020. • The City continues to work on a 10 -Year Financial Plan which will be presented to Council in the near future. The Plan will set targets for Debt, Reserve and Pay -As -You -Go capital and determine evidence based metrics to measure the City's financial health. 63 GO- SAINT JOHN 2 64 2 SAINT JOHN f FINANCE COMMITTEE REPORT Report Date September 14, 2018 Meeting Date September 20, 2018 Chairman Councillor Merrithew and Members of Finance Committee SUBJECT: 2019 Utility Fund Operating Budget OPEN OR CLOSED SESSION This matter is to be discussed in open session of Finance Committee. AUTHORIZATION Primary Author Commissioner/Dept. HeadCity Manager Craig Lavigne Brent McGovern I Neil Jacobson 1;7x��1ulu7�►�I �7_� ��[�1P1 It is recommended that Finance Committee reflect upon the attached document and make any and all inquiries and recommendations to staff; and receive and file this report. EXECUTIVE SUMMARY The 2019 Utility Fund Operating Budget reflects the completion of the largest municipal infrastructure project in the history of the Province of New Brunswick, the Safe Clean Drinking Water Project (SCDWP). The proposed 2019 budget holds a service level similar to the service level in the 2018 budget as detailed in the attached high level Service Based Budget Report. 2019 will represent the first full year for the Loch Lomond Drinking Water Treatment Facility (LLDWTF). The flat rate being recommended for 2019 is $1,428 which is an increase of 4.39% ($60 per year or $5 per month) over 2018. This rate is less than what has been predicted and forecasted over the last five years. The rate had been planned to increase to $1,440 per year (an additional $72 per year or 5.26%) by 2019. The ability to keep the rates lower is as a result of the numerous expenditure reductions that have been implemented as well as revenue 65 -2 - PREVIOUS RESOLUTION N/A STRATEGIC ALIGNMENT The proposed 2019 Utility Fund Operating Budget is aligned with Council's priorities in taking a strategic approach to financial management of the Utility by continuing to contribute capital funding from operating, finding other revenue sources, improving the allocation of costs among ratepayers and continuing to find efficiencies and savings through continuous improvement initiatives. REPORT The proposed 2019 Utility Fund Operating Budget will be the last budget brought forward using the existing rate structure. Staff have been balancing the significantly increased workload associated with the SCDWP (and over the last few months in particular they have been focused on the successful commissioning of the new LLDWTF), managing a large capital program that is separate and apart from the SCDWP which has deadlines associated with funding from other levels of government, while at the same time working with consultants on east and west industrial rate analyses, potable water rate structure and a universal metering analysis. Considerable work has been completed on new potable and industrial rate structure reports as well as in undertaking an analysis and report on universal metering. The rate reports and universal metering reports are expected to be finalized in early 2019 once the analyses are completed. These reports will be presented to the Finance Committee and Council once they are completed which is expected to occur in the next six months. This will give Councillors the ability to make informed decisions and give staff proper time to allow the creation of communications plans to inform rate payers of the changes that will come out of these reports and the new rate structures. The outcomes from these reports will lay the foundation for the Utilities long term financial plan. The 2019 Utility budget is a total of $48,286,000 and represents an increase of $482,000 (1.01%) over 2018 budget ($47,804,000). Saint John Water is continuing to focus on reducing expenditures, paying down debt, while bringing forward prudent, strategic capital budgets that seek to renew infrastructure, lower operating cost while striving to leverage funding from other levels of government for every capital dollar invested. am Expenditures There are budgeted increases in expenditures for 2019 that the Utility has little control over, items such as; wage increases tied to collective agreements, workers compensation rates, electricity increases, the commissioning of 3 new wastewater lift stations, the commissioning of 2 new wastewater treatment facilities (Mora Heights and Greenwood) to meet regulatory obligations, the ongoing maintenance of approximately 75 combined sewer overflows that were constructed as part of regulatory obligations, asphalt costs associated with utility cuts and debt associated with the SCDW project. However, there have been significant cost reductions and savings that have contributed to a lower than expected rate increase. The early borrowing of the $45M substantial completion payment will save rate payers approximately $3.5M. The capital reserve fund for the SCDW project will save rate payers approximately $9.75M and forgo the burden of additional debt payments. Staffing positions have been eliminated in 2018 resulting in savings of approximately $183,000 in 2019. As well as ongoing savings of $46,000 due to changes in the way public notices are communicated and ongoing savings of $50,000 in electricity reductions due to a continuous improvement project. Overall expenditures are increasing by 1.01% with the largest change in water treatment. This service area is budgeted to be $10.035M and the increase is due to the annual service and operating payments associated with the treatment plant and west side well fields. Capital from operating has the largest decrease due to a very lean capital budget and funds no longer being set aside for the SCDW reserve. Revenue Flat rate and meter rates will increase by approximately 4.39% with the flat rate being $1,428 per year. Saint John Water continues to look for other sources of revenue to help offset rate increases. Finance Committee recommended and Council adopted; new lease agreements (Bell and Eastlink) resulting in $35,875 per year in new revenue which is for a 20 year period and indexed. Changes to water and sewerage bylaw will allow the Utility to recover approximately $86,500 more by ensuring all properties that have access to water and sewerage service pay for that access even if the building is unoccupied and by amending cost associated with meter testing. Other services such as live water main tapping for other municipalities or on private water systems which was recently approved will result in recurring annual revenues of approximately $10,000. 67 -4 - The most significant changes in 2019 revenue is the decrease in other revenue which is from less interest being earned due to less cash on hand. It is anticipated the substantial completion payment will be made late 2018 or early 2019 for the SCDWP. As well as the previous year's surplus is down over last year and if the Utility continues to have small or no surpluses, the loss of this non rate revenue will need to be made up through rates. CnnAminn The increase in rate being proposed and forecasted for 2019 is less than the rates forecasted over the past 5 years. The budget being proposed does have risk involved. The LLDWTF has just come online. There is a large variable cost associated with operation and is difficult to predict the actual operating cost due to there being numerous variables. The capital budget which is funded from the operating is very lean, does not address enough of the infrastructure deficit and does not put any funds away for operating and capital reserves. However, the rate studies and universal metering reports that will be brought forward over the next six months will set the rate structure, capital investment plan and long term financial plan for the Utility. SERVICE AND FINANCIAL OUTCOMES See enclosed 2019 Utility Fund Operating Budget INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS N/A ATTACHMENTS Appendix— A— 2019 Saint John Water Expenditure and Revenue Budget APPENDIX "A" 2019 SAINT JOHN WATER EXPENDITURE BUDGET 2018 2019 Approved Proposed Budget Budget Operating Expenditures Drinking Water Watershed Management 211,000 202,000 Water Treatment 3,122,000 10,035,000 Water Pumping & Storage 1,166,000 1,222,000 Transmission & Distribution 5,281,000 4,976,000 Customer Metering 703,000 714,000 Industrial Water Watershed Management 524,000 615,000 Water Pumping & Transmission 1,051,000 1,835,000 Customer Metering 121,000 133,000 Wastewater Wastewater Pumping 2,859,000 3,086,000 Wastewater Collection 3,440,000 3,158,000 WasteWater Treatment 4,969,000 4,810,000 Infrastructure Management Municipal Engineering 1,201,000 820,000 Other Internal Charges 895,000 905,000 Additional Post Employment Benefits 1,384,000 1,322,000 26,927,000 33,833,000 Fiscal Charges Debt servicing 10,102,000 9,753,000 Capital from Operating 10,775,000 4,700,000 Total Fiscal Charges 20,877,000 14,453,000 Total Expenditures 47,804,000 48,286,000 APPENDIX "A" 2019 SAINT JOHN WATER REVENUE BUDGET Revenues Flat rate Accounts Metered Accounts Fire Protection Levy Storm Sewer Levy Other revenues Previous Year's Surplus Total Revenues Flat Rate - Water & Sewerage Meter Rates: Block 1 Block 2 Block 3 2018 Budget 21,742,000 19,568,000 2,300,000 1,000,000 1,977,000 1,217,000 47,804,000 2019 Forecast 22,673,000 20,344,000 2,600,000 940,000 748,000 981,000 48,286,000 1,368 1,428 5.55% 4.40% 1.5445 1.6123 0.9835 1.0267 0.3471 0.3623 NOTE: Sewer Surcharge 122% of Water Charge 70 ON Budget Highlights 2019 • This will be the final operating budget drafted using the existing rate structure. • First full year for Loch Lomond Drinking Water Treatment Facility • Three new wastewater lift stations in service • Two new wastewater treatment facilities in service • Industrial Rate & Potable Rate Studies, Universal Metering analysis underway and to be completed • Continuous improvement & revenue generation remains a focus • Safe Clean Drinking Water Project to be completed • Proposed increase of $60 per year on flat rate 2 72 2019 Proposed Revenue Budget - $48,286,000 2018 2019 Approved Proposed Variance Budget Budget Revenues Flat rate Accounts 21 ,742,000 22,673,000 931,000 Metered Accounts 19,568,000 20,344,000 776,000 Fire Protection Levy 2,300,000 2,600,000 300,000 Storm Sewer Levy 1,000,000 940,000 -60,000 Other revenues 1,977,000 748,000 -1,229,000 Previous Year's Surplus 1,217,000 981,000 -236,000 Total Revenues 47,804,000 48,286,000 482,000 Flat Rate - Water & Sevierage 1,368 1,428 5.55% 4.39% Meter Rates: Block 9 1.5445 1.6123 Block 2 0.9835 1.0267 Block 3 0.3471 0.3623 `NOTE: Projection for 2099 Fiat Rate for duration of project was $9,440 NOTE: Sevier Surcharge 922% of Water Charge 3 73 b2V SAINT JOHN 2019 Revenue Highlights /� ZO/9 met • Flat Rate proposed $1,,428 per year, increase of $60 per year, $5 per month. (Previous rate projection was $1,440 for 2019) • Recurring revenue growth over the past 12 months • Lease agreements with Bell and Eastlink - $35,875 (plus indexing) • Bylaw Changes (shut-off services/meter testing) - $86,500 • Live Watermain tapping - $10,000 • Continue assess Revenue opportunities through 2019 • Significant decrease in Other Revenue due to less interest revenue (Less cash on hand after SCDWP substantial completion payment) • Previous year surplus declining, as this declines the shortfalls will be made up from rates. 4 74 SAINT JOHN 2019 Proposed Expenditure Budget - $48,p286,,000 Operating Expenditures Drinking Water Industrial Water Wasteviater Infrastructure Management Other Internal Charges Additional Post Employment Fiscal Charges Debt servicing Capital from Operating Total Expenditures 5 2018 Approved Budget 10,483,000 1,696,000 11,268,000 1 ,201 ,000 895,000 1,384,000 10,102,000 10,775,000 47,804,000 2019 Proposed Budget 17,149,000 2,583,000 11,054,000 820,000 905,000 1,322,000 9,753,000 4,700,000 48,286,000 Expenditure increase of 1.01% over previous year 75 Variance 6,666,000 887,000 -214,000 -381,000 10,000 -62,000 -349,000 -6,075,000 482,000 SAINT JOHN 2019 Expenditure Highlights • Overall increase in expenditures is 1.01% over 2018. • Continue to focus on continuous improvement, optimizing operations and reducing expenditures • Staff positions eliminated - $183,000 savings Al • Public notification changes - $46,000 savings • Electricity reduction program - $50,000 savings • Largest budget variance is Drinking Water - $6,666,000 can be largely attributed to first full year of LLDWTF. • Decrease in Capital from Operating — ($6,075,000) is due to not funding reserves and reduced 2019 Capital Budget 6 76 SAINT JOHN 2019 Expenditure Highlights (Continued) Wastewater B U E T 3: _ 't- • Three new lift stations online .! • Continuing focus on sanitary collection system video program • Added funding for CSO/SSO cleaning and maintenance • Complete Lancaster Lagoon dredging • Another major milestone for the City of Saint John! Is If Is ! • Two new treatment facilities completed (Mora Heights and Greenwood) N 77 Q -)-- SAINT JOHN 2019 Expenditure Highlights (Continued) Wastewater • City of Saint John will now be 100% in Compliance in treatment of Wastewater • All Collected Wastewater in City will now be treated to regulatory standards!! 100% aU 80% C 60% U U a- 20% 0% Compliance with Wastewater Effluent Quality Standards Period - July 1, 2017 to June 30, 2018 r 1--,' 1. EN Eastern Millidgeville Lancaster Morna Heights Greenwood Wastewater Lagoon Facility SAINT JOHN 2019 Expenditure Highlights (Continued) Drinking Water • First full year of the LLDWTF • Significant risk surrounding the operating cost of LLDWTF • Increased focus in water audits and leak reduction strategies • Increase for use of Orthophosphates will be partially offset by decrease in use of Chlorine consumption • Considerable staff focus still needed on wrapping up the SCDWP Her PIAT CITE .VA I EFS Nr'til-i 1,+ALFfB 1 9 SAINT JOHN Conclusion • This will be the final operating budget drafted using the existing rate structure. • Over the next 6 months, the potable and industrial rate studies and the analysis on universal metering will be presented to Finance Committee/Common Council. • This will ensure completion of the rate analyses, reports and provide time needed to discuss and communicate changes to rate structures as well as to complete , review and consider the universal metering report. • These reports will set the guidelines for the 2020 operating budget, along with the long term financial plan and capital investment plan for the Utility. kft :1 SAINT JOHN Recommendation Recommend the Finance Committee reflect upon the attached document and make any and all inquiries and recommendations to staff; and receive and file this report. 11 M Q -)-- SAINT JOHN Questions? 12 QP -1. SAINT JOHN