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2018-04-17 Finance Committee Minutes - Open SessionFinance Committee Meeting Open Session April 17, 2018 MINUTES — OPEN SESSION FINANCE COMMITTEE MEETING APRIL 17, 2018 AT 4:30 PM 8t" FLOOR BOARDROOM, CITY HALL Present: Mayor D. Darling Councillor D. Merrithew Councillor G. Sullivan Councillor S. Casey Absent: Councillor G. Norton Councillor D. Reardon Also Present: City Manager J. Trail Deputy City Manager N. Jacobsen Commissioner of Finance and Treasurer K. Fudge Comptroller Finance C. Graham Senior Manager Financial Planning H. Nguyen Commissioner Transportation & Environment Services M. Hugenholtz Deputy Commissioner Administrative Services I. Fogan Manager Materials Management C. Calvin Administrative Fire Office J. Hennessey Assistant Comptroller Finance and Administrative Services C. Lavigne Deputy Commissioner, Engineer B. Keenan Director Corporate Performance S. Rackley -Roach Commissioner Saint John Water B. McGovern Administrative Assistant K. Tibbits 1. Meeting Called To Order Councillor Merrithew called the Finance Committee open session meeting to order. 1.1 Approval of Minutes — March 13, 2018 Moved by Mayor Darling, seconded by Councillor Sullivan: RESOLVED that the minutes of March 13, 2018, be approved. MOTION CARRIED. Moved by Mayor Darling, seconded by Councillor Sullivan: RESOLVED that the agenda for the Finance Committee meeting of April 17, 2018 be approved. MOTION CARRIED. 2. Consent Agenda 2.1 Banking Resolution Finance Committee Meeting Open Session April 17, 2018 Moved by Councillor Sullivan, seconded by Mayor Darling: RESOLVED that the Finance Committee endorse the following resolutions to be submitted to Common Council for adoption at its next meeting: 1. The banking business of the City of Saint John, or any part thereof, may be transacted with the Bank of Nova Scotia. 2. That any two of the: Commissioner of Finance Comptroller Assistant Comptroller Senior Manager Financial Planning, Reporting and Analysis Senior Financial & Economic Analyst be and are hereby authorized on behalf of the City: (a) To borrow money from time to time and in accordance with existing and applicable council resolution(s) in that regard, by way of direct advances by Promissory Notes, Overdraft, or Standby Letters of Credit/Letters of Guarantee; (b) To oversee banking business to include, without limitation, the operation of the City's accounts; the making, signing, drawing, accepting, endorsing, negotiating, lodging, depositing or transferring of any cheques, promissory notes, drafts, acceptances, bills of exchange and orders for the payment of money; the approval of any administrative arrangement relating to any such banking business and defining the rights and power of the parties thereto; and the authorizing of any officer of such institution to do any act or thing on the City's behalf to facilitate such banking business; and (c) To delegate certain transactions which fall under a dollar threshold to designated positions in an administrative internal policy. 3. That any one of the: Commissioner of Finance Comptroller Assistant Comptroller Senior Manager Financial Planning, Reporting and Analysis Senior Financial & Economic Analyst be and are hereby authorized on behalf of the City: (a) To negotiate with or transfer to the Bank of Nova Scotia for deposit or discount with or collection by the Bank (but for the credit of the City's accounts only) cheques, promissory notes, bills of exchange, drafts, orders for the payment of money and other instruments, whether negotiable or not, purporting to be signed or endorsed on behalf of the City by any one of them or having the name of the City impressed thereon by rubber stamp or other devise without any signature; (b) To arrange, settle, balance and certify all books and accounts between the City of Saint John and the Bank and to receive all paid cheques and other vouchers, unpaid and unaccepted bills of exchange and other negotiable instruments and to sign the Bank's form of settlement of balances and release; and (c) To delegate any authority conferred on such person by sub -paragraphs (a) and (b) of this paragraph by any other employee of the City, by notice in writing filed with the Bank. 4. That all agreements, documents and instruments signed, drawn, accepted, endorsed or executed as aforesaid shall be valid and binding on the City. Finance Committee Meeting Open Session April 17, 2018 5. That this resolution shall, from the time Common Council approves, supersede any previous resolutions and instructions respecting the transaction of banking business between the City and Bank of Nova Scotia. MOTION CARRIED. 2.2 Citv of Saint John Audit Services Moved by Councillor Sullivan, seconded by Mayor Darling: RESOLVED that: • The 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 for all audit services.- 0 ervices; • 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; • Staff report back to the Finance Committee after receiving responses from the ABCs; and, • Issue a Request for Proposal MOTION CARRIED. 3. Business Matters 3.1 Asset Management Phase 2 Project Update (Mr. S. Yammine, Energy Manager and Mr. H. Arisz of RV Anderson entered the meeting) Referring to the submitted presentation, Mr. Arisz provided an update on Phase 2 of the Asset Management project and discussed next steps in the process. Data collection efforts will take approximately 6 to 12 months and will provide a solid foundation of the City's asset inventory and condition of the assets, providing empirical evidence to support financial decisions. Moved by Councillor Sullivan, seconded by Mayor Darling: RESOLVED that the submitted presentation Asset Management Phase 2 Project Update, be received for information. LTA WI[Q0EWA :k]k]111101 (Mr. Yammine and Mr. Arisz withdrew from the meeting) 3.2 2017 Capital Budget Analysis Referring to the submitted report, Mr. Lavigne commented on the 2017 General and Utility Fund Capital Budgets including a discussion on the projected costs compared to the budget and a cost variance analysis, noting that capital projects often span multiple years. Responding to a question as to when additional capital proposals can be considered, Mr. Trail noted that Council will first have to determine if it wants to engage in additional capital projects, reduce borrowing further, or maintain borrowing at current levels. Mr. Fudge noted that a long-term capital budget policy will be implemented to assist in decision making. Moved by Mayor Darling, seconded by Councillor Sullivan: RESOLVED that the submitted presentation and report regarding the 2017 Capital Budget Analysis, be received for information. Finance Committee Meeting Open Session April 17, 2018 MOTION CARRIED. 3.3 Tri -City Procurement Initiatives (Councillor Casey entered the meeting) Mr. Fogan noted that the cities of Saint John, Fredericton and Moncton often consult with one another on the best way to procure goods and services. The goal is to align services and ultimately obtain better pricing on common items. Referring to the submitted presentation, Ms. Calvin provided an update on the goals and challenges of tri -city procurement including procurement initiatives and savings to date. Moved by Councillor Casey, seconded by Mayor Darling: RESOLVED that the submitted presentation and report entitled Tri -City Procurement Initiatives, be received for information. MOTION CARRIED. 3.4 Public Engagement Ms. Nguyen stated that public engagement is a best practice approach in terms of developing a long-term financial plan and can include a combination of citizen surveys, in-person events and on-line budget simulations. Ms. Rackley -Roach showcased the Budget Allocator and the Budget Simulator tool and commented on the pros and cons of each. Moved by Mayor Darling, seconded by Councillor Sullivan: RESOLVED that the Finance Committee approve proceeding with the Public Engagement Process and that implementation of the Budget Simulator on-line tool be approved. MOTION CARRIED. 3.5 Operating Budget Policy Mr. Fudge reviewed the submitted Operating Budget Policy as one of the suite of financial policies. The purpose of the policies is to strengthen the City's financial sustainability and reduce its vulnerability. Moved by Councillor Sullivan, seconded by Mayor Darling: RESOLVED that the Finance Committee recommends that Common Council approve the Draft City of Saint John Operating Budget Policy FAS -004. MOTION CARRIED. Adjournment Moved by Councillor Sullivan, seconded by Mayor Darling: RESOLVED that the open session meeting of the Finance Committee be adjourned. MOTION CARRIED. The Finance Committee open session meeting held on April 17, 2018 was adjourned at 6:55 p.m.