2018-12-06 Finance Committee Agenda Packet - Open SessionCity of Saint John
Finance Committee - Open Session
AGENDA
Thursday, December 6, 2018
5:15 pm
8th Floor Boardroom, City Hall
1. Call to Order
Pages
1.1 Approval of Minutes - October 17, 2018 1 -6
1.2 Coast Guard Administration Building 7-11
1.3 2018 Year End Forecast and Reserve Recommendation
1.4 Transit Reserve
12-30
31-32
1.5 2019 General Operating Budget 33-42
rIN.
m
MINUTES — OPEN SESSION FINANCE COMMITTEE MEETING
OCTOBER 17, 2018 AT 4:30 PM
Stn FLOOR BOARDROOM, CITY HALL
Present: Mayor D. Darling
Councillor D. Merrithew
Councillor G. Sullivan
Councillor S. Casey
Councillor D. Reardon
Absent: Councillor G. Norton
Also
Present: Acting City Manager N. Jacobsen
Commissioner of Finance and Treasurer K. Fudge
Commissioner Saint John Water B. McGovern
Comptroller Finance C. Graham
Senior Manager Financial Planning H. Nguyen
Commissioner Transportation & Environment Services M. Hugenholtz
City Solicitor J. Nugent
Deputy Commissioner Growth & Community Development P. Ouellette
Deputy Commissioner Building Inspection A. Poffenroth
Deputy Commissioner Administrative Services I. Fogan
Assistant Comptroller Finance and Administrative Services C. Lavigne
Commissioner Growth and Community Development J. Hamilton
Senior Financial Analyst J. Forgie
Fire Chief K. Clifford
Police Chief B. Connell
Police Director HR &Finance M. Corscadden
Senior Financial Analyst J. Forgie
CEO Transit & Parking Commissions I. MacKinnon
Common Clerk J. Taylor
Administrative Assistant K. Tibbits
1. Meetiniz Called To Order
Councillor Merrithew called the Finance Committee open session meeting to order.
1.1 ADDroval of Minutes — September 20. 2018
Moved by Councillor Reardon, seconded by Councillor Casey:
RESOLVED that the minutes of September 20, 2018, be approved.
LTA [0000114L1ilk]ilk] Iif91
completion of the SCDW project, the first full year of service for the Loch Lomond water
treatment facility, and two new wastewater treatment facilities. The water rate for 2019 is
$1428, an increase of 4.39%, and less than initially planned. ($60 per year, rather than the
planned $72 per year increase) The focus remains on expenditure reductions, paying down
debt to lower operating costs, and leveraging federal and provincial funding when possible.
(Councillor Sullivan entered the meeting)
Moved by Councillor Reardon, seconded by Mayor Darling:
RESOLVED that the Finance Committee approve the 2019 Utility Fund Operating Budget and
submit to Common Council for the October 22nd meeting for receive and file; and that the 2019
budget submission be received for information.
LTA [0000114L1:k]k]11191
1.3 2019 General Fund Operating Budget
Mr. Fudge stated that departments will comment on their respective areas in terms of service
levels and planned projects for 2019. There were a few minor changes from the first draft of
the operating budget, as follows:
• Request for IT website design of $120K
• Reduction in the Growth & Community Development revenue line of $117K
• Funding for the Acadian Games was not included for $19K
• Request for temporary position for Asset Management program/GIS $22K
• Adjustment to Regional Services Commission budget $3K
• To offset, the Landfill Closure liability and Pay as You Go budgets were reduced
1.4 2019 Service Based Budizet — Growth & Community Development Services
Ms. Hamilton reviewed the 2019 Service Based budget submission for Growth and Community
Development Services. The department has transitioned from a traditional regulatory role to a
role of facilitator of growth on behalf of the City. There have been changes to its scope
including a new mandate for population growth, coordination of economic development,
enhanced service delivery to support growth outcomes and delivery of the City's arts and
culture service. It is essentially a status quo budget with a small increase of 1.36% which
includes contractual wage increases, the City's contribution to the Acadian Games, and an
increase in the City's Regional Facilities contribution. The revenue projection for 2019 is also
status quo.
Moved by Councillor Reardon, seconded by Councillor Sullivan:
RESOLVED that the 2019 service based budget submission for Growth and Community
Development Services, be received for information.
MOTION CARRIED.
1.5 2019 Service Based Budget — Fire Rescue & Suppression Services / SJEMO Services
Chief Clifford reviewed the 2019 budget submission for Fire and SJEMO. One of the challenges
is providing a service comparable to those of other communities, given Saint John's diversified
hazard profile and size, with continually rising costs. Due to an erosion of services, there have
been times when resources were not available, an average of 42 to 50 times per year. There is
need for a better revenue model and methods to establish sustainable revenue solutions
through response and training revenue, partnerships with academia and the private sector, and
f r,r -F; -- --; ,I - ,--^-^-+ ...;+[, r)^;_+ 1 ^-F-F^r+r
-O -O -1 -O - I -1 -O -O -/
they continue to try to find ways to purchase capital assets through the operating budget when
possible, to lessen the burden on the capital budget.
Moved by Mayor Darling, seconded by Councillor Reardon:
RESOLVED that the 2019 service based budget submission for Fire Rescue and Suppression
Services and SJEMO Services, be received for information.
MOTION CARRIED.
1.6 2019 Operating Budget — Saint John Police Force and Public Safety Communication
Centre (PSCC)
Mr. Corscadden stated that the SJPF budget request for 2019 is less than a 1% increase over
2018 and includes a 2.5% wage increase for police officers and 2.25% wage increase for 486
members. By year end the Police Force will be reduced by 9 FTEs, achieved through attrition.
Since 2006 the total establishment including civilians has been reduced by 24 positions, which is
a 12% reduction overall. 2019 will be a right -sizing year for the SJPF, while still achieving service
levels. Revenue projection for 2019 is approximately $456K. Possible revenue sources include
secondments, international peacekeeping missions, and establishing community partnerships.
The SJPF will try to reduce costs by reducing overtime expenses, creating synergies with the City
through continuous improvement iniativies, and working with IT and Fleet to reduce computer
and maintenance costs where feasible.
A risk to the proposed budget is additional training costs, equipment needs and court costs to
address the recently enacted cannabis legislation. The Traffic Enforcement Unit may have to be
augmented due to the legalization of cannabis and enforcement concerns. There is some
money allocated from the federal and provincial government for training, but it does not cover
the costs of back -filling of officers to attend training sessions.
Chief Connell noted that the force has to move away from non-core services and right -size the
organization, to be sustainable. They continue to work with partners to move towards a
regionalization of some services.
Moved by Councillor Reardon, seconded by Councillor Casey:
RESOLVED that the 2019 Operating Budget submission for the Saint John Police Force, be
received for information.
MOTION CARRIED.
Mr. Corscadden reviewed the 2019 Operating Budget for the Public Safety Communications
Centre (PSCC). The budget request is an increase of 2.53% over the previous year. Wages and
benefits is the bulk of the budget at 90.4%. The PSSC generates significant revenue,
approximately 41% of their operating costs, through partnerships with other police services,
and will continue to look for other revenue opportunities. There are risks to the budget
including a possible reduction of centres by the provincial government and equipment
requirements to address text messaging and social media requests for service. Retaining
qualified staff also poses some challenges.
Moved by Councillor Reardon, seconded by Councillor Casey:
RESOLVED that the 2019 Operating Budget submission for the Public Safety Communications
Centre, be received for information.
MOTION CARRIED.
Mr. Hugenholtz reviewed the 2019 operating budget for Transportation and Environment
Services. The proposed budget is an increase of 2.36% over 2018; projected revenue is
approximately $2.2M. Staff is continuing efforts on a cost-sharing arrangement for arena
rentals. There may be a different rate structure in place for the 2019-2020 season which would
impact recovery amounts. Mr. Hugenholtz commented on the service areas included under the
TES umbrella and key initiatives planned for 2019. Efforts continue to fund reoccurring, annual
expenditures such as road resurfacing through the operating budget, rather than funding
through the capital budget. For the most part, this is a status quo budget for 2019.
Moved by Mayor Darling, seconded by Councillor Reardon:
RESOLVED that the 2019 Service Based Budget submission for Transportation and Environment
Services, be received for information.
MOTION CARRIED.
(Councillor Reardon withdrew from the meeting)
1.8 Transit and Parking Commission
Mr. MacKinnon reviewed the submitted report and the proposed budget for transit and parking
for 2019. The 2019 subsidy request for transit is $5.78M and represents an increase of 2.66%
over 2018. Conservative revenue estimates for 2019 is $4.57K, most of which comes from
ridership but revenue through charters has also increased in 2018.
Other notable highlights include:
• Risks to the budget include decreased revenue from student ridership as the purchase
of bus passes by the school board may decline/unknown
• The budget increase includes contractual obligations for wage rate increases
• The collective agreement for transit ends in 2019; this will impact the 2020 budget
• The handibus service is undergoing collective bargaining and could increase the subsidy
provided
• Diesel fuel costs have increased substantially over the past year
• Lesser producing routes will be reduced, and routes added back into the Primary
Intensification Area
Commenting on the parking budget, the conservative revenue projection for 2019 is $1.837M
for on street parking revenue. Expenses are comparable to the 2018 budget.
Moved by Councillor Sullivan, seconded by Councillor Casey:
RESOLVED that the 2019 Operating Budget submission for the Transit and Parking Commission,
be received for information.
MOTION CARRIED.
(Mr. MacKinnon withdrew from the meeting)
1.9 2019 Service Based Budget — Finance & Administrative Services
Mr. Fudge reviewed the 2019 operating budget for the Finance and Administrative Service area.
The budget is down from 2018 by 5.89%. Wages and benefits are 1.94% higher; the biggest
change is related to the Goods and Services budget. Mr. Fudge commented on the revenue
streams which represent approximately $3.7M in the 2019 budget.
universal metering review, seek new opportunities for federal and provincial funding to help
fund capital assets, and continuous improvement initiatives. Significant projects are also
planned for the administrative services area, Fleet, Real Estate and Risk Management, including
assessing opportunities within administrative services to pool resources across service areas.
Moved by Mayor Darling, seconded by Councillor Casey:
RESOLVED that the 2019 Service Based Budget submission for Finance and Administrative
Services, be received for information.
1.10 2019 Service Based Budget — Corporate Services
Mr. Jacobsen commented on the 2019 operating budget for the City Manager's office including
Communications, Human Resources, Information Technology/GIS, Strategy, Performance
Management and Continuous Improvement. The primary drivers of the City Manager's budget
are the policies and priorities of Common Council. Over the past decade the number of full
time resources in these service areas have declined by 6 FTEs, which is a common theme heard
from all service areas. The 2019 recommended budget is an increase of 3.4% from 2018, and
over half of that includes a renewal of the City's website. Corporate Services does not typically
generate revenue but try to identify shared sources and cost recovery models to help offset
expenditures. A 32% increase in revenues is budgeted for 2019.
Mr. Taylor reviewed the 2019 operating budgets for the Common Clerk's office, Mayor and
Common Council and the Regional Services Commission. The 2019 budget request is less than
the 2011 spend for the Common Clerk, Mayor and Council budgets. The request is a 3.4%
increase from the 2018 budget, primarily attributable to wages and benefits and a slight
increase in goods and services.
Mr. Nugent reviewed the 2019 operating budget for the Legal Department. There is a $55K
increase in the proposed 2019 budget largely related to staffing.
Moved by Mayor Darling, seconded by Councillor Sullivan:
RESOLVED that the 2019 Service Based Budget submission for Corporate Services, be received
for information.
LTA [0000114YA001if91
Mr. Fudge stated that this is a difficult budget to recommend because it is a budget that the
City cannot afford over the long term under the current business model. Long-term sustainable
solutions are needed. Considerations include:
• Heavy reliance on funding/short term special assistance from the provincial
government. The 2019 budget has $8.9M of provincial funding, or $0.13 on the tax rate.
• The unconditional grant is $16M; total of approximately $26M of revenue from other
sources
• Period of stagnant growth; expenditures rising faster than growth; not sustainable
• Continue to work on population growth and growth investments but challenging when
the tax rate is higher than neighbouring communities; difficult to compete
• Water rates are increasing
• Limited options in terms of revenue generation
• Focus on debt reduction but still 400% higher than Fredericton; almost 100% higher
than Moncton
layoff clause for police members hired prior to 2011; outside workforce minimum
number of 278; inside unionized workforce has a no contracting out clause
• Sustainable solutions are needed; window of 6 to 9 months to find a solution and
implement recommendations
Moved by Mayor Darling, seconded by Councillor Casey:
RESOLVED that the Finance Committee bring forward the 2019 General Operating Budget to
Common Council for consideration and a receive and file.
MOTION CARRIED.
Adjournment
Moved by Councillor Sullivan, seconded by Councillor Reardon:
RESOLVED that the open session meeting of the Finance Committee be adjourned.
MOTION CARRIED.
The Finance Committee open session meeting held on October 17, 2018 was adjourned at 8:20
p.m.
FINANCE COMMITTEE REPORT
Report Date November 29, 2018
Meeting Date December 06, 2018
Chairman David Merrithew and members of the Finance Committee
SUBJECT: Coast Guard Administration Building
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Finance Committee.
AUTHORIZATION
Primary Author
I Commissioner/Dept. HeadLJ
Acting City Manager
Craig Lavigne/Jeff Cyr
I Kevin Fudge/lan Fagan
I Neil Jacobsen
RECOMMENDATION
Recommend that Finance Committee;
• Recommend to Council to approve the transfer of $500,000 of the
projected 2018 General Operating Fund surplus to the General Operating
Reserve Fund to partially fund demolition work in 2019;
• Recommend that Common Council allocate $500,000 approved in the
2018 Capital Budget for Growth to fund demolition work in 2019;
• Refer to the Growth Committee to approve the use of the 2018 Growth
Capital Budget envelope for Growth to fund demolition in 2019;
• Direct staff to negotiate a Memo of Understanding with the Saint John
Parking Commission for the management and operation of the parking
lot at the former Coast Guard Site;
• Direct staff to proceed with application to PAC to obtain a temporary
parking lot and comply with conditions set out by PAC;
• Direct City pro -rata portion of proceeds from parking revenue be used to
replenish the General Operating Reserve Fund used to pay for
demolition;
EXECUTIVE SUMMARY
The Coast Guard Administration building is now vacant and the City must
determine the best use for the property. The current plan for the Coast Guard
site includes a new museum and the expectation is this investment will be the
rA
-2 -
catalyst for the complete redevelopment of the Coast Guard Site. DevelopSJ
engaged Real Estate Consultants Turner Drake & Partners (Turner Drake) to
evaluate the market value of the administration building and site and to provide
a letter of opinion on use of the site. In addition to the Turner Drake letter, staff
performed an analysis on other options for the building. The recommendation is
to demolish the building and prepare the site for sale.
PREVIOUS RESOLUTION
None
STRATEGIC ALIGNMENT
Common Council has adopted an ambitious new direction to achieve new
population, employment and tax base growth for the community, which are
embedded in Council Priorities 2016-2020, the Roadmap for Smart Growth, the
Population Growth Framework and soon to be completed Neighborhood Plan for
the Central Peninsula. All these strategies are premised on the City's ability to
enhance density in the City's primary development areas and to invite catalytic
projects that will cause spin-off investment and growth.
REPORT
A letter of opinion was received from Turner Drake to understand the potential
market value of the site which includes both land and the Coast Guard
Administration building. The report values the property with a cleared site,
building demolished, site remediation and seawall upgrades at $3.5 million
market value.
The report intentionally did not assign a market value for the existing building, as
it was determined that a private redevelopment scenario was financially
infeasible given that the redevelopment of the building could not absorb the
costs of the required infrastructure improvements (seawall & soil remediation)
and would not generate enough tax base to provide a return on investment for
government to undertake the infrastructure improvements.
In addition to the information received from Turner Drake, City staff performed a
scenario analysis on other potential options for the site. Two additional scenarios
staff analyzed were to keep the building vacant until a seller could be found or
reinvest capital into the building to be able to lease out space until a seller could
be found.
E:3
-3 -
Scenario: 1 Reinvestment in building and lease/sell site
Costs: Upfront Capital (does not include annual maintenance)
1- Building Envelop - Roof and windows: $600,000
2- Building Mechanical and HVAC Systems: $1,500,000
3- Building Electrical System: $500,000
4- Other such as plumbing and elevator: $300,000
Total: $2,900,000
The figures do not include potential aesthetic improvements that may be needed
to be able to market the building to potential tenants.
It was quickly determined that this is not a feasible option for the City. The
investment in the site is significant and without a known market or potential
buyer/lessor of the site, the return on investment cannot be reasonably
determined. There is no guarantee on attracting businesses to lease the space
considering Saint John has a high commercial vacancy rate.
In addition, a refurbished building could potentially limit the market for potential
developers of the site. Recovery of the investment costs into the building would
be very difficult to obtain without a special purchaser which could take a
significant amount of time to find.
Scenario: 2 Maintain Building in current condition and lease/sell site
Staff analyzed the feasibility of maintaining the building in its current state until
a buyer can be identified. The annual costs for the building was estimated to be
greater than $150K per year and would include property taxes, snow plowing,
heating, and security. Under this scenario the City could be paying the annual
costs for an unlimited period as it is unknown how quickly the building could be
sold.
These annual costs would be a sunk cost for the City and there is limited chance
of recovery of this money through the sale of the property. Also, according to
Turner and Drake, selling the building "as is" would not be economically feasible
due to the significant infrastructure challenges facing the property.
Scenario 3: Demolition of the Coast Guard Building
Under the letter of opinion provided by Turner and Drake, the demolition of the
Coast Guard Building could cost upward to approximately $1.0 million but the
potential market value is estimated to be $3.5 million with seawall
refurbishment, and site remediation. The demolition of the building will have a
transformational impact on not only the former Coast Guard Site, but for the
-4 -
entire Uptown and Waterfront area. The building is awkwardly positioned on
the property, limiting its long term development potential. It is estimated that
the full build -out of the site as a high density, mixed use project could generate
up to $150 Million in New tax base. The demolition of the current building is
required to leverage this investment. When considering the potential parking
revenue and cost avoidance to maintain the building, there is a positive business
case for demolition. The cost of demolition is estimated to be approximately
$1.0 million and there would be a reduction of annual expenses of $150K and
annual new parking revenue of $100K. This results in a payback period of 4 years
to recover the demolition investment.
Recommendation
Staff is recommending the Coast Guard administration building be torn down at
an approximate cost of $1.0 million dollars. This scenario along with site
remediation and seawall upgrades would make this site quite marketable to a
regional or national investor according to Turner Drake.
The City through discussions with Saint John Parking Commission have
determined that annual parking revenues based on the vacant building space
could bring in an additional $100K per year. The parking revenue assumption is
conditional on PAC temporary approval to operate a parking lot and some
beautification may be required as a temporary measure until site development.
The financial assumptions built in for tear down of the building, regardless of
whether the Museum is developed or not, make this recommendation the best
financial scenario with the least amount of risk for the City moving forward until
a purchaser is found.
Staff is recommending that Finance Committee support the funding strategy of
transferring $500K of the projected 2018 General Operating Fund surplus into a
Reserve to pay a portion of the demolition cost in 2019. Also, staff is
recommending that the balance of the demolition be funded from the $500K
Neighborhood plan capital budget approved in the 2018 General Fund Capital
budget after engagement with the neighborhood action committee.
Lastly it is recommended all City net revenue generated from parking at the
entire Coast Guard site be directed back into a reserve to replenish funds used
for demolition cost and future cost associated with the site.
SERVICE AND FINANCIAL OUTCOMES
The Central Peninsula Neighbourhood Plan focuses significant attention on the
development potential of the Coast Guard site. Located at the doorstep of the
City's Uptown, it is positioned for large scale, catalytic development which will
propel the area into a stronger and increasingly exciting urban environment. The
ito]
-5 -
siting of the New Brunswick Museum is the first step in the creation of a more
dynamic and inviting public space along the City's waterfront. Concept plans for
the area detail a mixed-use, pedestrian friendly gateway into the City's Uptown
Waterfront with the Coast Guard site central to bridging the gap between the
active Market Slip and the Port's Marco Polo Terminal. Preparing the site for
redevelopment is strategic to leveraging private investment in an area
considered to be vital to the success of the Neighbourhood Plan and, more
importantly the growth of the City's centre.
The cost of demolition is estimated to be approximately $1.0 million and there
would be a reduction of annual expenses of $150K and annual new parking
revenue of $100K.
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
Input was received from Develop SJ, Saint John Parking Commission, Growth and
Development, Finance and Administration services and all areas are in full
support of the recommendation to demolish building.
ATTACHMENTS
I Ist attachments rchted to report.
11
FINANCE COMMITTEE REPORT
Report Date November 26, 2018
Meeting Date December 06, 2018
Chairman David Merrithew and members of the Finance Committee
SUBJECT: RESERVE FUND
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Finance Committee.
AUTHORIZATION
Primary Author
Commissioner/Dept. HeadL4
City Manager
Hilary Nguyen
Kevin Fudge
m
I Neil Jacobsen
RECOMMENDATION
Staff recommend that Finance Committee recommend to Common Council to
approve the transfer of:
• $400,000 to an Operating Reserve to cover the potential increase in
WorkSafeNB premiums;
• $400,000 to the General Capital Reserve to fund infrastructure deficit;
• $500,000 to an Operating Reserve to fund the demolition of the Coast
Guard Administration Building in 2019;
• $100,000, which is the amount needed to complete the Market Slip
Dredging to an Operating Reserve to be used in 2019;
• $1 Mil which is the projected surplus in the Utility Operating Fund to the
SCDW project reserve fund;
• Any fluctuation in the value of the City's employee benefit programs due
to actuarial gains to an Operating Reserve annually in order to fund
future losses;
• Approve the "Reserve Schedule A" included in this report.
EXECUTIVE SUMMARY
The Reserve Policy was approved by Common Council on December 11, 2017.
The purpose of the Reserve Policy is to address longer term funding strategies to
minimize debt servicing costs, address the infrastructure deficit, and mitigate the
effect of unanticipated events. Permitted uses of reserves according to the
Reserve Policy are:
1 Major unanticipated/unforeseen events;
2 Major Capital renewal;
3 Future Liabilities;
12
-2-
4 One time operating expenses which are greater than $100,000 and are
not part of the recurring operating budget;
5 Infrastructure deficit; and
6 Investment in growth opportunities.
In addition to the Reserve Policy, the City has to comply with the Provincial
Reserve Fund Regulation which prescribes that the establishment, funding and
withdrawal of Reserve funds can only be done through resolutions of Common
Council before the end of each calendar year.
In alignment with the City's Reserve Policy, this report includes
recommendations to transfer:
• $400K to an Operating Reserve for WorkSafeNB premiums increase;
• $400K to the General Capital Reserve to fund Infrastructure deficit;
• $500K to an Operating Reserve to fund the demolition of the Coast Guard
Administration Building in 2019;
• $100K to an Operating Reserve for the completion of the Market Slip
Dredging in 2019;
• $1 Mil to the SCDW project Capital Reserve;
• Any fluctuation in the value of the City's employee benefit programs due
to actuarial gains to an Operating Reserve annually in order to fund
future losses.
To comply with the Provincial Legislation, Staff recommend that Common
Council approve the total amounts of contribution to and withdrawal from the
Reserves as detailed in the Schedule A included in this report.
PREVIOUS RESOLUTION
Chc k here to enter any previous r de a nt resoktionz.
STRATEGIC ALIGNMENT
This report aligns with Council Priorities.
REPORT
The Reserve Policy was approved by Common Council on December 11, 2017.
The purpose of the Reserve Policy is to address longer term funding strategies to
minimize debt servicing costs, address the infrastructure deficit, and mitigate the
effect of unanticipated events. Permitted uses of reserves according to the
Reserve Policy are:
1 Major unanticipated/unforeseen events;
13
-3-
2 Major Capital renewal;
3 Future Liabilities;
4 One time operating expenses which are greater than $100,000 and are
not part of the recurring operating budget;
5 Infrastructure deficit; and
6 Investment in growth opportunities.
In addition to the Reserve Policy, the City has to comply with the Provincial
Reserve Fund Regulation which prescribes that the establishment, funding and
withdrawal of Reserve funds can only be done through resolutions of Common
Council before the end of each calendar year.
Currently, the City has the following reserves:
• Operating Reserves:
1. General Operating Reserve
2. Growth Reserve
• Capital Reserves:
1. General Capital Reserve
2. Fleet Reserve —General Fund
3. Fleet Reserve — W&S Utility Fund
4. Computer Reserve
5. Utility Capital Reserve for Safe, Clean, Drinking Water Project
6. Utility Infrastructure Reserve.
The reserves have been managed in accordance with the Reserve Policy. During
the year, withdrawals from the reserves were approved by Council in advance on
a case by case basis and the reserves have been used for their intended
purposes.
Reserve for Workers' Compensation:
In November, WorkSafeNB announced that the Workers' Compensation rate will
go up and the increase is likely to be significant. The impact on the City's budget
can be as high as $1 Mil. It is difficult for the City to absorb the full cost in one
year, therefore, Staff recommend that the City transfer $400K from the City's
contingency budget to an Operating Reserve to fund future increases in Workers
Compensation premiums.
Reserve for Infrastructure deficit:
Based on the City's 2016 State of the Infrastructure Report (SOTI) prepared by
R.V Anderson in August 2017, the infrastructure deficit for the General Fund was
estimated at $219.4 Mil. Although the estimate was done at a high level, it
reflects the magnitude of infrastructure backlog due to insufficient capital
funding over many years. Staff recommend that $400K from the 2018 projected
14
-4 -
surplus be transferred to the General Capital Reserve to fund Infrastructure
deficit.
Reserve for Market Slip Dredging
The City budgeted $142K for the Market Slip Dredging in 2018. The project is
underway, however, will not be completed before the end of the year. Staff
recommend that $100K be transferred to an Operating Reserve to pay for the
outstanding portion of the project in 2019.
Reserve for Fluctuations in Employee Benefit Programs due to Actuarial Gains
or Losses:
Pursuant to the Public Sector Accounting Standards, the City is required to have
actuarial valuations done for the City's benefit programs such as Heart & Lung,
Retirement Pay or disability pensions at the end of each year to determine the
value of the City's liabilities associated with the employee benefit programs. The
actuarial valuations have been done by a Professional Firm called "Aon". As a
result of the actuarial valuations, the value of the City's liabilities related to the
employee benefit programs can fluctuate due to various factors among which is
the discount rate. If the discount rate goes up, the value of the liabilities will go
down and vice versa. The accounting entries to record these fluctuations can
cause significant negative or positive impacts to the City's budget. For example,
the impact of the benefit true -up entries was a $1.5 Mil charge to the City's
budget in 2014. For 2018, staff was advised that it is likely that the discount rate
at December 31, 2018 would go up 0.40% compared to 2017 which may result in
a positive impact on the City's budget of $600K -$800K. Given the actuarial gains
or losses are unrealized and the fluctuation in discount rates is beyond control of
the City, Staff recommend that going forward all actuarial gains be put in an
Operating Reserve to offset future actuarial losses.
Saint John Water proiected surplus:
Saint John Water has prepared a year end projection based on actual results at
October 31, 2018 and estimated revenue and expenditures for the remaining
two months. The Utility is currently estimating a surplus of $1,138,257 (2.38%)
variance for the year. Meter revenue continues to have the largest variance
along with interest revenue which is due to higher interest rates than budgeted
for. Drinking water has the largest variance and is mainly due to earlier than
anticipated startup of the Eastside Water Treatment plant.
Due to the outstanding financial risk of the Safe Clean Drinking Water project;
staff recommend that $1 Mil of the operating surplus be transferred to the
SCDW reserve fund.
15
-5 -
The following schedule summarizes the amounts of contribution made to and
withdrawal from each reserve account and the projected balance of each
account at the end of the year. It is important to note that the numbers in the
schedule below include estimates for November and December transactions and
an assumption that Council approves the above reserve recommendations.
Therefore, the final numbers can be different from the estimates.
Reserve Schedule A
Reserves
Opening Balance ($) Contribution to ($)
Withdrawal from ($) Ending Balance ($)
General Operating Reserve
3,123,777
1,057,732
4,181,509
Benefit Fluctuation Reserve
600,000
600,000
Growth Reserve
183,000
350,000
49,980
483,020
General Capital Reserve
1,100,000
420,330
1,520,330
Fleet Reserve - General Fund
1,255,650
2,655,298
1,249,132
2,661,816
Fleet Reserve - Utility Fund
915,377
510,519
97,359
1,328,537
Computer Reserve
1,151,092
1,029,530
631,390
1,549,232
SCDW Utility Capital Reserve
12,357,232
6,569,887
18,927,119
Utility Infrastructure Reserve
313,905
5,801
319,707
Total
20,400,033
13,199,097
2,027,861
31,571,269
Due to the timing of vehicle deliveries and cash flow, fleet reserve balances at
year end are higher than projected. However, the fleet reserve balances will go
down once vehicles are delivered and payments are made. The SCDW Utility
Capital Reserve will be used up next year once the project is substantially
completed. The General Capital Reserve will be used for the City Hall renovation
and fit -up as approved by Council in the 2019 Capital Budget. The General
Operating Reserve will be used to pay for the Coast Guard site Administration
building demolition and the Market Slip dredging. As a result, the City's total
reserve balance is projected to be significantly lower at the end of 2019.
SERVICE AND FINANCIAL OUTCOMES
This report is aligned with Common Council's approved Reserve Policy.
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
Input has been received from other service areas.
ATTACHMENTS
I Ist attachments rchted to report.
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
Equalization & Unconditional Grant
Financial Assistance
Surplus 2nd previous year
Growth & Community Development Services
Public Safety Services
Transportation & Environment Services
Finance & Administrative Services
Corporate Services
120,853,074 101,099,240 103,223,194
20, 225, 932 13, 836, 004 12, 892, 308
- 2,978,367 2,989,537
416,472 1,115,420 1,115,420
2,815,150 2,162,681 2,376,760
2,013,605 1,578,119 1,729,520
3,884,188 3,141,590 3,103,135
3,678,046 2,973,856 3,141,952
135,000 70,820 12,833
121,319,088
123,443,042
2,123,954
16,603,206
15,659,510
(943,696)
4,717,196
4,717,196
11,176,550
1,338,515
1,338,515
11,230,732
2,503,571
2,792,464
288,893
1,887,022
1,832,935
(54,087)
3,982,308
4,132,797
150,489
3,654,886
4,832,344
1,177,458
85,000
74,716
(10,284)
TOTAL REVENUES 154,021,467 128,956,097 130,584,659 156,090,792 158,823,519 2,732,727
EXPENDITURES
Growth & Community Development Services
11,176,550
9,691,762
9,750,155
11,230,732
11,331,347
(100,615)
Public Safety Services
52,636 773
45,420,785
44,955,137
55,385,779
55,836,777
(450,998)
Transportation & Environment Services
43,405,710
36,205,725
35,729,758
43,720,502
43,598,806
121,696
Finance & Administrative Services
9,727,929
8,263,406
7,804,857
9,503,272
9,808,730
(305,458)
Corporate Services
7,843,648
6,658,720
6,071,001
7,928,039
7,782,518
145,521
Other Charges
29,230,857
19,088,066
19,341,063
28,322,468
30,301,336
(1,978,868)
TOTAL EXPENDITURES 154,021,467 125,328,464 123,651,971 156,090,792 158,659,514 (2,568,722)
General Fund Surplus (Deficit) 3,627,633 6,932,688 - 164,005 164,005
1
17
14b
W
R
m �t Ln O
r1 r1 O O
Lr1 Lr1 O O
N Ln lC O
00 lD ri O
00 Il ri r1
Ln Ln
r -I r -I
0 0
lD N
lD N
M Ol
00 I-
N N
cr) cr)
O O
dl dl
O O
Ln Ln
r1 r1
Ol r1
Ln r -
I -R rn
tt r1
00 Ln
Lri
O M
M N
r -I r -I
co
co
N
M
cn
TE,
N
N
> ii
O O
N LL
41 W
OC }
O O
O
G1
a _�
U
U .r
O
Z
H (p U
N Q
y 3
Q LL N
X41
W i i
� N
41 N
L r
•O O
CL f�
LA �
L E
E
0
+�+ W
U L
W
•0 i
i �
00 w
li�O
N
LocD�ti
O O V N
M N I
Loa
M
N ' ti
N O (D 00
� LO O
O L N 00
M 0 LO ti
� LO O co
V O O ti
M LO M N
N LO
� r
0 0 0 0
00 LO O O
O Qo LO M
LO r- LO qe
00 I� 00 00
CO (D I- T-
00 O 00 00
O N I- O
O M N LO
O CO)
M (q O
(D N O
N LO
� r
� 00 O N
O O O O
M N 1t
M N � m
N 000 M -e
M N O co
O N
� r
N U)
d �
N
� � N
d U ry
M C
L
i 0
i (D C/)
Q O
o
a_ D 0
•�
r
L
N
0
�
>
on
N
d
U)
0
dQ
p-M
co
r
'i
W
m
v
(n U)
L
v
L Q
>
_
M
VI
Lo
Q
U)ZULTLZ
0
Cl)
elfO
M
le
t
O
LO
LiLO(
O
oil
M
N
�
tLO
00
L6
(Yj
L
r
0
0
0
0
N
M
O
M
C')
M
O
O
1-
00
O
LO
N
LO
�
O
O
Cl
LO
ti
LO
O
LO
00
O
I�
O
LO
CY)
N
V
M
co
M
r
O
N
r
O
I�
O
00
M00
LO
O
CY)ti
T
CO
Ir
L
(3
O
LO
N
Cl)
Ln
N
cfl
ap
N
ti
M
M
N
a)
N
T"
(6
•�
L
N
0
�
>
N
d
U)
0
dQ
p-M
CL
r
'i
W
(n U)
L
v
L Q
>
_
M
VI
Q
U)ZULTLZ
Cl)
M
Ln m o o m Ln m m
N 00 Ln
N Ln 00 r�
c -I N ri r -i ri ri
N ri
N O 110 Ln It Ln O I- It 110
O Ln Ln � � 110 � M
M m r� 00 N Ln I- N N It
:I- Ln . -I M m O N M M I-
�
M Ln c I N ri -ze
N ri
ri
0 0 0 0 0 0 0 0 0 0
W Ln W M M 110 m N r� O
O l0 M M Ol O I� Ol Ol c-!
Ln n m m It ri n n Ln Ln
00 �o w m O Ln r- w ri
00 110 110 Ln r -I N O o0 l0 O
00 O m ri r� N O O 00 O
O N c -I Ln Ln 00 N M 00 O
Ln
O .r -I M O r- O� 00 LLnn w
M l0 I� M Ln ` It 01 l0
c -I l0 - c -I N c -I M M
N ri
c -I
It o m�� Ln Ln m m LNn m
c -I M Ln -:: P, -:t O ri m 00
M N m Ln l0 N r- r c I N
N m 00 c -I I- m M O -:t ri
N 00 C c -I M � N ri ri
M N N ri N ri M M
O ri
0
lC
tD
ni
co
N
Q1
lC
Ln
cn
Ln
lC
N
�
m
�
N
M
�
N
O
cn
OC
Ln
N
O
0
lC
tD
ni
co
N
Q1
lC
Ln
cn
Ln
lC
1
kn
iz
�sr
O
ca
U
El
Y
O
N
O
1.0N
U
fB
L
N
`^
O
N
0)
U
N
4.1
U
L
+J
c>
C:
cu
O
V)
CU
cu
C7
C
a
N
U
'>
H
0
F)
cu
v'
�,
V
Ov
M
co
Q)
O
O
�v
N
a
t/?
Y
O
v
pO
>_
'
00
Y
>-
,
M
r -I
1
�
L
00
41
fB
i
U
O
u
S
c
N
>
N
a
X
L
c
cB
o
�
N
Lu
U
N
Z
c
•O
'-
a1
aJ
CO
�
E
c
.!-n
L
U
O
'E
N
i
H
O
Q
U
N
p
-
Q
N
47
i
a7
4J
o_
co
v
>41
Q1
�
N
=
06
w
O
v
('0Q)
i
NU
7
a-.+
06
Q
U
>
j
fB
Q
3:
'U
G7
0
p-
N
.-
c
o
+�+
O
L
Ln
a
LL
1
kn
iz
�sr
O
ca
U
El
J LL d N d LL
r
N
Y
O
O
1.0N
fB
L
O
U
N
L
L
t1A
O
F)
O
Ln
�,
M
O
O
N
t/?
Y
O
cn
00
Y
t/?
M
r -I
�
L
00
fB
i
U
=3
S
>
N
c
•�
X
L
cB
OC
�
N
a--+
U
U
Z
J LL d N d LL
r
N
4j
o G7
N Mo
fC m
m
4-
0
0)
G7 U
O
CL
mr_
O O
W �
O O
} a
00
0 �
N �
Q
O m
0
fC
3 dA
i
r 3
Q m
y
Ln c -I 00 c -I MLn
m. -I O I- N N 00 Q1 LO
O O cI � O M cI l0
r1
Ln O N 0 m Ln N 1.00
l.0 00 00 O 110 -' Ln 00
C� N 1 c -I Lf1 L6 00
0 It c -I 0 chi h'•
r� N Ln O l0 O 00 l0 R*
't,tM O O M -i M'I
M L(1 N O 00 L(1 M Ln
c -I M 00 Ln 00 00 N g Q1
M r- 110 m m O 00 O Ln
M O N -:* L(1 00 r- M LD
.�-I w N M m m r- O
ro o6
Ln
0 0 0 0 0 0 0 0 0
N � -j -j N M 00 CT LV
00 M 00 l.0 r,� c I LQ N N
110 CT N �t -i N 110 00
00 r" 00 00 00 00 r- l0
N Nr� O N N m 00 N
M r- O O O r- M l0 cn
r- M It O Ln N O S
O l0 l0 M O M 00 N G
M c -I N -:t N O N N
N -i O N � Ln m M cn
0
ONO N M r6 Cl ONO` LD
Ln
r -I
Ln 00 Ln �t00 � c -I MT -4
Ln O N0 Ln Ln O l0
rl r-'tt O r- CO O O
O m � Ol 0 r- -:t
m w
Ln � N O Ln
M 00 00 O M LD
01 N amt N M r-�, l0 amt fY1
N
U
O
W
i
O
O
Q4
O
a
O
i
C
C
Ln
N
U
Q
O
+J
C:
QJ
>E
V)
N
N
Ln
L
N
i
C
0
N
.>
N
Y
•1.+
O
N
Ln
+J
120
tA
r14
Q)
Lu
4-1
V
0
i
QJ
YO
_
=3
t/?
lfl
�:�
U_
M
a
U
O
U
U
cn
U
p
0
N
w
N
O
W
N
o_
N
OC
N
t
Q
<
co
Ntaoa,
o
C
.Q
G61 7
H
O
oZS
w
a
O
N
+O
m
U
Lu
a
O
4J
Q)0o
U
O_
N
U
O
fB
>
Q
O
i
N
L
a-.+
fB
C
a-.+
++
LL
C7
a
LL
O
H
ii
U
0
H
fB
L
O
O
O
O
O
IZIU
Y
N
Y
O
0
r14
Q)
00
Ln
0
YO
_
=3
t/?
lfl
(N
M
U
bD
i/ i
::3
C
N
N
OC
N
c -I
c -I
+L•+
—
L
Ln
O
�C:
L
6aj
N
fB
>
a+
0
++
>
N
Q
fB
L
Y
_O
ate+
fB
L
Q
00
>
00
N
c
++
D
z
0
N
(Dt/?
N
E
N
v
fB
00
O
0
N
O
U
N
E
L
N
O
cB
U
"
C
U
cY-I0
c -I
cn
a +
0
N
0
Lli
N
N
O
N
U
t/?
O
y/}
E
O
cB
U
Q
>
.O
O6
O
O
N
•N
N
C1A
O
O
Q
Q
O
`}
OIInn
L
N
O
L
V
>
V
Q
0ate-+
N
4L
4L
L4--
N
m
C:
C:cn
u
N
?:
wU
U
U
OC
H
i L
JO Lfi
4--)
Q)
Q)
m
Q)
Q)
O
Q
E
w
O
Q)
O un
�--� Q)
Z5
4--j • -
U n
M
H I
0 0 0 0 0 0
C o C C C C
0 0 0 0 0 0
o Un 0 0
ri rl
r
>
ca
�
i
4O
GJ
-
O
N
I=
N
E
N
O
a
IT
.2
a"'
bD
ca
'L
.—
m
O
�A
U
C6
_3
�
a -J
-0m
N
`�
N
},
C6
O
•f6
Lu
j
Q)
Q)
>
�
O
N N
E
N
DC
O
=
>
a--+
cn
'�
a)
O
O
4-1
+-+
-0
O
>:
i
U
O
CO=
+_+
�
W
C6
a -J
4—
a -J
U
a..,
UateJ
O
N
O
U
-0
ate--+
-0
CO
. C6
O
'-
N
a
U
Q)
Q)
UO
Q)
nC
I
w
19
Nil
I
LLJ
Nil
I
N
U
C
fp
.M
>
>
C
,
.0
L.
O
N O
M
lD
00
r-j
0
0
O
r-
N
M
M
O
ri
W
i
fp
'i
>
}'
W
.�
0
a
i
�
N
I-
O
r�
O O
O
O
rr-I
0
O
Cl)
N
N
N
N
M
•
rl
N
0000
O
O
O
H
Cl)
N
O
O
O
N
W
00
N
a
U
O
N
r-i
lD
N
Ln
lD
lD
O
O
I�
M
I-
r-i
N
r-I
lD
r-i
N
N
r-I
o0
rl
LL
H
0
0 0
0
0
0
W
O
O
O
O
O
O
N
�
00
Co
O
O
r-
r-i
I-
I,
^
m
I,
r-I
Ln
Ol
M
M
N
m
00
00
r-I
O
N
W
Lu
Z)
w
LU
c/)
(/ )
>
W
p
a
N
O
Lu
Ln
jLU
Z
W
>
LLIO
(z
Lu
Q
Q
Ji
L
LU
Lu
>
=
LU
2
z
O
U
O
a
w
4=
LL
N
w
c}
O
W
a
z
J
w
cn
O
W
D
Z
Lu>
H
N
m
In
H
m
m
a
0
C
Ln
M
M
M
C
.
6
00
'�
4-1
rn
m
oNo
>
'o
�
a
75
o
o
o
1,
U
,O
O
O
ONO
W
r
'i.�
m
O
i
a
m
LLJ
V)
U
m
m
o0
W
rl
rl
O
rl
N
00
N
O
r -I
H
N
LL
0
0
0
0
0
W0
0
0
0
0
0
0
0
0
0
0
0
cy&00
rl
0-
w
m
0
O
m
co
Oo
N
V-1
N
H
CC
HW
N
Q
�
W
W
N
U
W
a
V)
W
Z
U
W
Ln
z
LU
J
W
z
(~
pQ[
=
a
Woz�zo0
m
O
V)
FINANCE COMMITTEE REPORT
M&C No. -
Report Date November 19, 2018
Meeting Date December 06, 2018
Service Area Finance and Administrative Services
Chairman Councillor Merrithew and Members of the Finance Committee
SUBJECT: Transit Building Fund Reserve
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of the Finance Committee.
AUTHORIZATION
Primary Author
Commissioner/Dept. Head
Acting City Manager
Ian MacKinnon
Ian MacKinnon
Kevin Fudge
Neil Jacobsen
RECOMMENDATION
It's recommended the Finance Committee submit the following report to Common Council to
authorize the transfer of $100,000 into the Transit Building Reserve Fund as a result of the
estimated 2018 year end operating surplus.
EXECUTIVE SUMMARY
The purpose of this report is to provide the Finance Committee with the City Transit 2018 year-
end projections as of October 31St, 2018 and subsequent recommendation.
PREVIOUS RESOLUTION
N/A
STRATEGIC ALIGNMENT
This report aligns with the City's asset management plan and Councils priority of being fiscally
responsible.
REPORT
It should be noted the following projections are based on best estimates as at October 31, 2018.
While there are no significant events that have come to the attention of the Transit management
team to require modification of these estimates, actual year-end results may differ depending on
ridership revenue as well as other unexpected events.
31
-2 -
Based on the October year to date results and projections, the Transit operating position is
presently projected to be in a surplus position at year-end of approximately $130,000. The overall
cost of operations is trending toward a surplus of approximately $130,000 which includes:
Transportation, Maintenance, Building, Administration and Revenue.
Council approved in 2017 the establishment of a Transit Building Reserve Fund. The Transit building
is close to 11 years of age and there are no major projects pending or identified, however, funding a
building reserve is extremely important in order to have money set aside cover major capital
replacements in the future.
It's recommended the Finance Committee submit the following report to Common Council with a
recommendation to authorize the transfer of $100,000 of operating surplus to the Transit
Building Reserve Fund.
SERVICE AND FINANCIAL OUTCOMES
N/A
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
Input has been received from all relevant Service Areas
0
FINANCE COMMITTEE REPORT
M&C No.
i/ fOLM(t OfSh,1 ej)0iW
Report Date
December 04, 2018
Meeting Date
December 06, 2018
Service Area
Finance and
Administrative Services
Chairman David Merrithew and members of the Finance Committee
SUBJECT: 2019 General Operating Budget
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Finance Committee.
AUTHORIZATION
Primary Author
Commissioner/Dept. HeadL4
City Manager
Hilary Nguyen
Kevin Fudge
m
I Neil Jacobsen
RECOMMENDATION
It is recommended that the Finance Committee submit the following report to
Common Council for approval.
RESOVED that as recommended by the Finance Committee at its December 6t"
meeting:
1. That the sum of $160,257,783 be the total Operating Budget of the City
of Saint John for 2019;
2. That the sum of $123,577,054 be the Warrant of the City of Saint John for
2019;
3. That the tax rate for the City of Saint John be $1.785;
4. That Common Council orders and directs the levying by the Minister of
Environment and Local Government of said amount on real property
liable to taxation under the Assessment Act within the Municipality of
Saint John;
5. That Common Council authorizes the Commissioner of Finance and
Administrative Services to disburse, at a time acceptable to him, to the
named Commissions, Agencies and Committees, the approved funds as
contained in the 2019 budget.
6. That Common Council approves the 2019 Establishment of Permanent
Positions at 627;
7. That Common Council approves $350,000 to the Growth Reserve Fund to
support the City's growth initiatives;
8. That Common Council approve $500,000 to the Capital Reserve Fund to
fund infrastructure deficit;
9. That Common Council approve $300,000 to the Operating Reserve Fund
to support a Restructuring Plan.
091
-2 -
EXECUTIVE SUMMARY
The first draft 2019 General Operating Budget was submitted to Council for
Receive and File on November 5t", 2018. On November 28t", the Province
released the property assessment and unconditional grant information. The
Finance Committee met on December 6t", 2018 to review the revised General
Operating Budget which totaled $160,257,783 or $610,419 more than the first
Draft Budget. The Committee recommended that the revised Budget as
presented be sent to Common Council for approval.
PREVIOUS RESOLUTION
N/A
REPORT
On November 28t", the Province released the property assessment and
unconditional grant information. The City's overall tax base has increased by
1.86%, or $2,257,966. Comparing to other peer cities including Fredericton and
Moncton and the surrounding communities, Saint John's growth is the second
lowest. The following graph illustrates the tax base growth comparison.
2019 Tax Base Growth
The City's Unconditional and Equalization grant has gone up 4.52% or $750,138.
With the increase of assessment base of 1.86% and Unconditional & Equalization
Grant of 4.52%, the City property tax and unconditional grant revenue combined
totals $3,008,104, however, this extra revenue will be offset by a reduction in
the 2019 Short Term Provincial Financial Assistance. According to the Funding
Agreement signed between the City and the Province of NB, the financial
assistance in 2019 ($8,912,315) is calculated based on the assumptions that the
City's tax base growth is 1% and the Unconditional Grant remains unchanged.
011
-3 -
Applying these assumptions, the Provincial Financial Assistance should be
reduced by $1,794,913.
In November, WorkSafeNB announced that the Workers' Compensation rate
would go up and the increase is likely to be significant. At this time, the City has
not been advised of the new rate. The revised Budget includes a 0.5% increase in
the fringe benefit percentage to cover the potential increase in Workers
Compensation premiums.
The following table compares the revised Budget to the previous Budget which
was submitted to Council on November 5th
The additional revenues totaling $610,419 have been allocated to the followings:
Final Budget
First Draft
Difference
Property Taxes
123,577,054
121,925,686
1,651,368
Unconditional Grant
17,353,344
16,603,206
750,138
Financial Assistance
7,117,402
8,912,315
-1,794,913
PILT
3,826
3,826
Surplus 2nd previous year
86,557
86,557
Own Source Revenues
12,119,600
12,119,600
Revenues
160,257,783
159,647,364
610,419
Growth & Development
11,415,903
11,413,782
2,121
Public safety
57,061,724
56,844,078
217,646
Transportation
45,108,730
45,044,351
64,379
Finance & Admin
8,985,886
8,943,267
42,619
Corporate Services
8,318,049
8,228,844
89,205
Other Charges
29,367,491
29,173,042
194,449
Expenses
160,257,783
159,647,364
610,419
The additional revenues totaling $610,419 have been allocated to the followings:
The 2019 Proposed General Operating Budget allocates funds to Council's
strategic priorities. The budget maintains the same tax rate ($1.785) for the 11th
consecutive years.
W
Budget Allocation
Fringe Benefit Increase (Workers' Comp.)
343,307
Police's Budget Adjustment
40,000
Market Square Common Area Costs
-12,214
Capital from Operating
194,449
Mayor's & Council's salary adjustments
44,877
Total
610,419
The 2019 Proposed General Operating Budget allocates funds to Council's
strategic priorities. The budget maintains the same tax rate ($1.785) for the 11th
consecutive years.
W
-4 -
STRATEGIC ALIGNMENT
The 2019 Proposed General Operating Budget aligns with Council's Priorities.
SERVICE AND FINANCIAL OUTCOMES
Frontline service levels have been maintained.
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
Considerable input has been received from all service areas.
ATTACHMENTS
2019 Proposed General Operating Budget
01.1
The City of Saint John
2019 GENERAL OPERATING BUDGET
City of Saint John
2019 Budget
2018
Approved
Budget
2019
Proposed
Budget
REVENUES
4,580,298
4,670,391
Property taxes
121,319,088
123,577,054
PILT Adjustment
-
3,826
Financial Assistance
4,717,196
7,117,402
Equalization & Unconditional Grant
16,603,206
17,353,344
Surplus 2nd previous year
1,338,515
86,557
Growth & Community Development Services
2,503,571
2,507,734
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 156,090,792 160,257,783
EXPENDITURES
Growth & Community Development Services
4,580,298
4,670,391
Growth & Community Planning Services
Growth & Community Planning Services
1,730,540
1,788,905
One Stop Development Shop Services
350,000
350,000
Heritage Conservation
181,551
190,936
Permitting & Inpection Service & By -Law Compliance
2,142,814
2,149,294
Infrastructure Development
525,393
541,256
Urban Development Service
Market Square - Common Area
Arts & Culture
Cultural Affairs
Imperial Theatre
Kul
2,195,207 2,182,993
117,030
355,850
108,347
360,205
1
4,580,298
4,670,391
Economic Development Service
Economic development agencies
Growth Reserve Fund
350,000
350,000
Regional Economic Development (Enterprise)
475,000
475,000
Develop Saint John
821,002
821,002
Destination Marketing Organization
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
3,801,909
3,893,592
Urban Development Service
Market Square - Common Area
Arts & Culture
Cultural Affairs
Imperial Theatre
Kul
2,195,207 2,182,993
117,030
355,850
108,347
360,205
1
The City of Saint John
2019 GENERAL OPERATING BUDGET
City of Saint John
2019 Budget
2018
Approved
Budget
2019
Proposed
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
Acadian Games - 19,750
Remembrance Day Ceremonies 1,500 1,500
New Year/Canada Day Celebrations 15,000 15,000
Total Growth & Community Development Services
653,318
11,230,732
668,927
11,415,903
Public Safety Services
2,348,975
2,292,512
Fire Rescue and Suppression Service
23,718,678
24,601,147
Water Supply and Hydrants
2,300,000
2,600,000
Emergency Management Service
307,729
333,939
Police Services
25,689,293
26,058,539
Public Safety Communications
2,427,079
2,497,099
Street Lighting
943,000
971,000
Total Public Safety Service 55,385,779 57,061,724
Transportation & Environment Service
Roadway Maintenance Service
Snow Control Streets 5,720,664 5,781,383
Street Cleaning 1,333,980 1,670,600
Utility Cuts 748,350 739,079
Street Services - Surface Maintenance 5,276,171 6,122,629
13,079,165 14,313,691
Sidewalk Maintenance Service
Snow Control Sidewalk 1,218,951 1,102,170
Sidewalk Maintenance 790,995 705,582
M-11
2,009,946
1,807,752
Pedestrian & Traffic Management Service
2,348,975
2,292,512
Stormwater Management
3,785,485
3,570,935
Solid Waste Management
3,764,178
3,722,605
Engineering
533,278
553,919
Parks & City Landscape
Parks Maintenance
2,780,807
2,769,755
Lifeguards
170,000
173,400
Urban Forestry
306,691
309,178
2
M-11
The City of Saint John
2019 GENERAL OPERATING BUDGET
City of Saint John
2019 Budget
2018
Approved
Budget
2019
Proposed
Budget
Mispec 5,000 5,000
Saint John Horticultural Association 40,000 40,000
3,302,498 3,297,333
Sports & Recreation Facilities Service
1,102,413
583,943
Arena Operation and Maintenance
1,567,165
1,661,801
Sportsfield Operation and Maintenance
1,319,091
1,429,986
Other Facility Operation and Maintenance
434,602
437,476
Minor Hockey Subsidy
173,000
173,000
Lord Beaverbrook Rink
159,382
159,382
Aquatic Centre
464,820
541,837
4,118,060 4,403,482
Neighbourhood Improvement
1,102,413
583,943
Community Development
518,408
453,028
Neighbourhood Development
152,000
152,000
Loch Lomond Community Centre
45,000
45,000
PRO Kids
121,183
122,371
836,591 772,399
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
1,102,413
583,943
Recreation Programming
674,401
653,332
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
Parking Service (Administration Support)
Transit Service
1,146,558
1,102,413
583,943
617,565
7,543,954
7,977,405
Total Transportation & Environment Service 43,720,502 45,108,732
Finance and Administrative Services
Financial Management Service
Finance
1,746,323 1,748,875
3
The City of Saint John
2019 GENERAL OPERATING BUDGET
City of Saint John
2019 Budget
2018
Approved
Budget
2019
Proposed
Budget
Assessment 1,318,538 1,343,078
3,064,861 3,091,953
Asset Management
649,203
744,508
Purchasing & Materials Management
1,115,837
1,113,424
Insurance Service
149,458
203,081
Liability Insurance
304,000
304,000
Facilities Management
1,323,653
1,436,427
City Market
1,084,324
986,126
Carpenter Shop
351,431
357,107
City Hall Building
1,892,991
1,225,384
Real Estate
216,717
268,384
6.438.411 5.893.933
Total Finance and Administrative Services 9,503,272 8,985,886
Corporate Services
649,203
744,508
City Manager
692,386
680,822
Legal Department
746,406
804,192
Common Clerk
569,921
583,705
Human Resources
1,463,712
1,520,515
Strategy, Continuous Improvement & Performance Reporting
592,568
607,996
Corporate Communications
438,613
445,602
Information Technology
2,273,965
2,512,414
Geographic Information Systems
466,996
380,821
Regional Services Commission
34,269
37,474
Mayor & Council
Mayor's Office
176,000
210,318
Council
473,203
534,190
4
649,203
744,508
Total Corporate Services
7,928,039
8,318,049
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
730,151
Infrastructure Deficit
-
500,000
4
The City of Saint John
2019 GENERAL OPERATING BUDGET
City of Saint John 2018
Approved
2019 Budget Budget
Landfill Closure
Restructuring Plan
2019
Proposed
Budget
Others 534,098 200,000
Total Other Charges 28,322,468 29,367,489
TOTAL EXPENDITURES 156,090,792 160,257,783
5
HI
Resolutions from the Growth Committee regarding Enterprise Saint John's and
the Heritage Development Board's funding requests
Moved by Councillor MacKenzie, seconded by Councillor Armstrong:
RESOLVED that the Growth Committee recommend to the Finance Committee that the
operating contribution to Enterprise Saint John remain at $475,000 with no overall increase to
the City's 2019 Operating Budget; and further, that Enterprise Saint John be advised that the
City may consider further discussion at a later date for additional support, once further details
of the work plan are known.
Moved by Deputy Mayor McAlary, seconded by Councillor Armstrong:
RESOLVED that the Growth Committee recommend to the Finance Committee that the Heritage
Grant budget in the proposed 2019 operating budget remain at $80,000 and that the Heritage
Development Board request to increase the grant budget be considered by the Growth
Committee at a future meeting as a possible draw on the 2019 growth reserve.
:1 PA,