2014 General Fund Operating Budget20 December 2013
His Worship Mel Norton
and Members of Common Council
Your Worship and Councillors:
SUBJECT: 201.4 General. Fund Operating Budget — Revisions
Revisions
Subsequent to the meeting of December 16, 2014 staff' determined that the debt service
costs can be reduced by $132,000. Based on the input from. Council the following
adjustments are recommended for consideration;
That $40,000 be allocated to a Grass Median Maintenance program that focuses on
the upkeep of main thoroughfares in the city. A detailed work plan with identified
service levels would be developed for implementation. Individual property owners
should also be encouraged to keep medians in front of their properties mowed and
clean in order to improve the overall appearance of our community,
*
Given the need to address the enduring levels of poverty in our community that that
the LivingSJ project funding be increased by $7,500 to $15,000 to support the full
development of a Comprehensive Social Strategy for our community;
That the ProKids budget be increased by $4,000 to retain the current 2013 funding
level;
That $80,000 be allocated to the Safer School Zones initiative. Although exactly
what would be done in all three school zones (Bayside, Bayview and. Prince
Charles) will depend on consultation with the schools' Principals, an additional
$80,000 would allow Traffic Services to:
1. Investigate the appropriateness of lowering the speed limit within school
zones of the three schools and recommend to Council, if appropriate, to
implement the lowered speed limits.
2. Install at all three schools two radar speed signs (one in each direction) to
advise motorists if they are speeding in the school zone.
3. Install a pedestrian activated signalized crosswalk with overhead illuminated
signs and flashing amber beacons that meets Transportation Association of
Canada (TAC) guidelines for Bayside and Prince Charles.
Expenditure Control
While it must be recognized that wage increases for public safety occupations will be
awarded in future years and often these wage costs are determined by third party
arbitrators, the City does not have the financial capacity to continue to absorb
09111
unrestrained increases in wage costs. In fact, the largest portion of the Police and Fire
Service budgets are personnel costs.
However, these departments are limited in their ability to manage these costs effectively
(no layoff, arbitrated wage settlements, seniority provisions etc) in the short-term. Any
significant change in staffing models, deployment, overtime etc will require sufficient
advance notice in order to be successfully implemented. Advance notice will provide a
fall year for each affected service area to innovate, adapt and make permanent
adjustments to expenditure/staffing/service levels etc.
Likewise, the City is called upon to fund a number of agencies that fall under the
jurisdiction of the Regional Facilities Commission (Harbour Station, Aquatic Centre,
Imperial Theatre, Arts Centre and Trade and Convention Centre) or the Regional
Services Commission (Crane Mountain). Once these two Commissions determine the
level of funding support, the City is obligated by statute to provide the approved level of
funding to each individual agency.
It is proposed that Council consider a formal policy that would cap expenditures for the
Police Commission, the Fire Service, the Regional Facilities Commission and Regional
Services Commission at 2014 levels for the ensuing one or two years. In some
instances this will be a significant operational challenge if wage increases are
unrealistic. However, adopting such a policy in early January of 2014 will provide each
affected agency a full year to determine how to best plan to absorb the expenditure cap.
Council should also consider similar forward looking expenditure controls for other
City service areas however some caution/flexibility must be exercised in terms of the
expenditure targets so that our strategic priorities can be acted upon.
Staff would be required to prepare a formal policy framework with a multi-year
financial analysis to establish the particulars and determine the anticipated financial
impact. This could be presented to Council in January of 2014.
During the course of 2014 Council should also undertake a review of key departmental
services and service levels (similar to that used for bylaw enforcement), as opposed to
just considering spending levels, and make specific policy decisions on which services
should be kept/eliminated/increased/decreased.
Respectfully submitted,
34atrick Woods, CGA
CITY MANAGER
231
City of Saint John
Summary of Committed Funds
Based on
2014 Annual Budget
Wages & Benefits
Fiscal charges
Debenture Interest
Debenture Principal
Transit Funding
Debenture Interest
Debenture Principal
Operating subsidy
Pension payments
LTD Payments
Police Commission
DMO Funding
Fleet usage
Fleet fuel
Regional facilities
Harbour Station
Aquatic Centre
Trade & C C,
Imperial Theatre
Arts Centre
49,435,731
4,645,626
10,268,667
0
623,921
1,267,000
4,977,070
6,867,991
Percentage
of Budget
33.422%
50,603,312
3.141% 4,758,790
6,942% 9,228,000
10.083% 13,986,790
0.422% 502,752
0.857% 1,223,000
3.365% 5,292,928
4.644% 7,018,680
20/12/2013
Percentage
of Budget
34.014%
3.199%
6.203%
0.338%
0.822%
3.558%
10,020,080
6.774%
9,970,080
6.702%
1,780,743
1.204%
1,672,243
1.124%
22,777,842
15.399%
23,743,517
15.960%
845,000
0.571 %
925,000
0.622%
4,133,023
2.794%
4,321,843
2.905%
1,182,437
0.799%
1,245,869
0.837%
384,390
194,617
536,576
337,039
74,822
1,527,444
0,260%
451,618
0.304%
0.132%
322,070
0.216%
0.363%
534,367
0.359%
0.228%
339,322
0.228%
0.051%
85,171
0.057%
1.034%
1,732,548
1.165%
232 Page 1 of 2
City of Saint John
Summary of Committed Funds
Based on
2014 Annual Budget
Market Square Common Area
City Hall Building
Liability Insurance
Asessment Fee
Water Supply Fire Hydrants
City Market
Library
Contracted services recereation
Boys & Girls Club
YMCA -FGCC/MCC
North End Community Centre
Regional Economic Development
Industrial Parks
SJ Development Corp &
Waterfront Development
Street Lighting
Sum of other operating costs
2013
Budget
2,273,352
1,979,795
596,700
1,285,071
2,270,000
937,265
456,230
Percentage
of Budget
1.537%
1.338%
0.403%
0,869%
1,535%
0.634%
0.308%
2014
Budget
2,306,226
1,716,511
615,500
1,278,852
2,340,000
941,307
458,130
20/12/2013
Percentage
of Budget
1.550%®
1.154%
0.414%
0,860%
1.573%
0.633%
0.308%
124,236
0.084%
126,100
0.085%
166,703
0,113%
169,097
0.114%0
30,000
0,020%
158,194
0.106%
475,000
0.321%
475,000
0.319%
300,000
0.203%
300,000
0,202%
280,000
0.189%
300,000
0.202%®
1,075,350
0.727%
1,096,857
0.737%
125,734,286
85,005%
85.703%
127,501,656
22,180,172
14.995%
21,270,524
14.297%
147,914,458
100.000%
148,772,180
100.000%
233 Page 2 of 2
Clay of Saint ,john
2013:
2014
2014 (Budget Summary
Approved
Proposed
MZZMEMEMAZZENEENNEMENNEM
Community Planning & Development Service
1,586,837
1,633,309
Development Engineering
361,523
397,531
Geographic Information Systems
311,563
322,225
Heritage Conservation
300,994
308,023
Permitting & Inspection Service
993,679
994,678
By -Law (Enforcement Service
953,885
992,369
Dangerous and Vacant Bundling Program
476,692
420,660
Minimum Property Standards Program
237,671
295,077
Other By -Laws
156,779
193,889
Animal Control
82,743
82,743
Tourism Service
845,000
925,000
Destination Marking Organization
845,000
925,000
Economic Development Service
2,333,231
2,402,292
Regional Economic development (Enterprise) ,
475,000
475,000
Saint John Trade and Convention Center
536,576
534:,367
Harbour Station
384,390
451,618
City Market
937,265
941,307
Urban Development Service
2,553,352
2,606,226
Sant John Development Corporation
1160,000
175,000
Waterfront Development Corporation
120,000
105,000
Waterfront Development -Property Tax
20,000
Market Square - Common Area
2,273,352.
2,306,226
Industrial Parks Development Service
300,000
300,000
Saintfohn Industrial Parks
300,000
800,000
Neighbourhood Improvement
705,692
724,131
Community Development Service Gronts 666,765 895,630
20/12/2013
M
City of Saint John 2013 2014
2014 Budget Summary Approved Proposed
Recreation, Parks & Cultural Programming 1,513,071 1,526,103
Arts & Culture Grants & Other Funding 560,861 590,993
Total Growth & Development Services 13,986,453 14,618,509
Fire Services
20,123,989
21,225,986
Fire Rescue and Suppression
18,906,109
19,943,462
Medical First Responder
86,000
81,500
Hazardous Materials Emergency Response
120,767
127,530
Technical Rescue Response
62,947
57,794
Fire Prevention
927,111
941,030
Fire lnvestigatcon
21,055
74,670
Water Supply and Hydrants
2,270,000
2,340,000
Emergency Management Service
325,421
262,671
Police Services
25,269,695
26,236,696
Police Operations
20,935,007
21,890,682
Poke Headquarters
1,160,980
1,185,980
Crosswalk Guards
183,855
183,855
Detention
498,000
483,000
Public Safety Communications Centre (PSCC)
2,491,853
2,493,179
Street Lighting
1,075,350
1,096,857
Total Public Safety Services
49,064,455
51,162,211
235
2 of 4
20/12/2013
City of Saint John 2013 2014
2014 Budget Summary Approved Proposed
Roadway Maintenance Service
14,861,415
13,157,996
Snow Control Streets
5,000,889
4,943,304
Street Cleaning
1,749,414
1,884,624
Street Services (Surface Maintenance)
8,111,112
6,330,068
Sidewalk Maintenance Service
1,560,490
1,492,555
Snow Control Sidewalk
893,257
902,200
Sidewalk Maintenance
667,233
590,356
Pedestrian & Traffic Management Service
1,684,800
2,079,052
Storm water Management
3,366,348
3,163,916
Solid Waste Management
3,568,529
3,545,746
Engineering
541,451
494,762
Parks & City Landscape
2,729,268
2,926,065
Parks Maintenance
2,237,921
2,469,319
Lifeguards
147,720
117,720
Urban Forestry
259,627
269,026
Mispec
45,000
30,000
Saint John Horticultural Association
40,000
40,000
Sports & Recreation Facilities Service
3,659,644
3,806,075
Arena Operation & Maintenance
1,442,420
1,507,139
Sports field Operation & Maintenance
1,325,655
1,222,834
Other Facility Operation & Maintenance
362,130
410,210
Minor Hockey Subsidy
165,000
169,000
Aquatic Clubs
15,822
15822
Lord Beaverbrook Rink
154,000
159,000
Aquatic Centre
194,617
322,070
Parking Service
560,379
560,379
Transit Service
6,867,991
6,886,723
Total Environment &Transportation Services
39,400,315
38,113,269
Financial Management Service
3,247,518
3,112,776
Finance
1,962,447
1,833,924
Assessment
1,285,071
1,278,852
Asset Management
6,641,116
6,745192
Purchasing & Materials Management
971,819
1,054,246
Insurance
157,977
270,393
Liability Insurance
608,700
615,5()0
Fleet
1,081,302
1,264,001
Facilities Management
1,031,337
1,087,418
Carpentry Shop
438,876
440,775
City Hall Building
1,979,795
1,716,511
Real Estate
371,310
296,348
Total Finance and Administrative Services
9,888,634
9,857,968
236
3 of 4
20/12/2013
City of Saint John 2013 2014
2014 Budget Summary Approved Proposed
Human Resources
1,428,037
1,515,131
Corporate Planning
499,585
457,945
Intergovernmental Affairs
148,658
1.52,876
Corporate Communications
521,505
527,324
Information Technology
2,087,058
2,136,094
Total Strategic Services
4,1684,843
4,789,370
City Manager
401,268
521,441
Regional Service Commission
42,054
53,226
Legal
703,834
735,720
Common Clerk
735,400
657,023
Mayor & Council
585,785
588,445
Mayor's Office
183,305
185,895
Council
402,480
402,550
Total Legislated Services
2,468,341
2,555,855
e
Fiscal Charges
15,938,984
16,032,675
LTCB Payments
1,780,743
1,672,243
LTD Premiums
681,610
-
Pension
10,020,080
9,970,080
Total Other Charges
28,421,417
27,674,998
Total Budget (Expenditures)
147,914,458 148,772,1.80
237
4of4
REPORT TO COMMON COUNCIL
December 16, 2013
His Worship Mayor Mel Norton
and Members of Common Council
Your Worship and Members of Common Council:
SUBJECT: 2014 General Fund Operating Budget
MRS
The purpose of this report is to submit the 2014 General Fund Operating Budget for Council's
consideration. The annual operating budget conternplates a stable tax rate of $1.785 with gross
expenditures of $148,772,180 an increase of one half of one percent over 2013. The
expenditures will be funded by property tax revenues of $117,667,569, a grant transfer from the
Province of $19,599,548 and various non -tax revenues of $11,374,699.
The revenues available to the City for service delivery have remained essentially unchanged
from the previous year while inflationary and contracted costs will increase. In practical terms,
this requires a thoughtful and balanced approach to allocating the available resources to those
areas most beneficial to the community.
The budget continues to respond to the community priorities (roads, recreation, development)
established by Council at the outset of their mandate and recently confirmed during a strategic
planning session. There is also a deliberate focus on strategic initiatives that will have a lasting
and positive impact on the community in future years (PlanSJ, PlaySJ, ZoneSJ, True Growth
2.0).
Stable Tax Rate
Council has expressed an ongoing interest in implementing a sustainable reduction in the
property tax rate. A one-time reduction in the property assessments for two mills, located in the
City has had a negative impact on our property tax revenues and precludes a tax rate reduction in
the current year. The assessment reductions for the mills, while significant, are not part of longer
term downward trend in the City's tax base. There remains considerable optimism that planned
developments will yield real growth in the tax base over the next few years. Given the one time
nature of the assessment base decline, this budget seeks to avoid an adverse impact on priority
services without implementing a tax rate increase.
MCI;]
2014 Operating Budget 1211312013
Transportation — Road, Curb and Sidewalk Improvements
Improved road, curb and sidewalk infrastructure benefits the entire community. The City has
achieved tangible progress during 2013 and a similar level of service will continue for the
coming year. Total funding provided between the operating and capital budgets for expenditures
for road maintenance, repair and reconstruction is set at a combined $6.7M and curb and
sidewalk maintenance, repair and reconstruction will be at a combined $1.25M for 2014 .
It is projected that this level of expenditure will result in im Pro 6vements to 76.5 lane km of roads
and move the City even closer to achieving the PCI goal of"71.5 while replacing up to 11 kms of
asphalt curb and Skins of asphalt sidewalk with concrete.'
Transportation Strategic Plan
A comprehensive and fully integrated transporta
efficient movement of people and goods in our c
House Interchange, growth in our Industrial Pat
East Saint John and the potential for major new ii
the need for an up to date Transportation,Strategi,
road network to ensure that it readily insets �;bm
years. Funding has been included in the 2014.buc,
Plan. The balance will be provided for in the 2015
Economic Development Initiatives
The 2014
sustainab,flity of our comm -u
commissions, our citiz&hs;
government in an effort,
implementation of True Gro
($475,000) leadership role in
As well, the budget dljpc�
ongoing efforts to initia''t',",
general improvements on
area.
19
plan is an essential, tool for the safe and
tunity. The constrwtion of the Cine -Mile
he extensive commercial development in
rial activity in our community all point to
in to guide the future development of our
ity and business needs for the next 15-20
o initiate the development of the Strategic
het,
A's commitment to renewed economic prosperity and an
is development , in order to contribute to the long-term
The City will continue to partner with its agencies, boards,
,orate and community organizations, and other levels of
ichieve Council's priorities and support the successful
2.0. Funding is provided to support Enterprise Saint John's
nplementation of the True Growth strategy.
NO to continue the Saint John Waterfront Development's
;,velopment of the fortner Coast Guard site and to continue
Passage. Both projects support revitalization of the uptown
Tourism activity has immediate direct and indirect economic benefits to our community and our
region. The budget allocation for Saint John's destination marketing organization, operating as
Discover Saint John, will increase by $80,000 as per the terms of the contract to pursue active
promotion of the City as a tourist destination.
Page 21
M1.91
2014 Operating Budget 12/13/2013
Convention participants generate business for hotels, restaurants, taxis, bars and retail shops. The
2014 budget also allocates $534,000 towards the operating costs of the Trade and Convention
Centre and an additional $450,000 is set aside in the capital budget to support the second phase
of facility improvements needed to remain competitive in the convention market.
The City has considerable existing infrastructure that gives it a strategic advantage in its ability
to attract major sporting and entertainment events. The Inside Connection, the Trade and
Convention Centre, a full Olympic swimming pool, Harbour Station, the Canada Games Stadium
and a range of other venues are readily available. hosting major events bring broad based
economic spin-offs in the form of new jobs and new investment to the hospitality and
transportation sectors in our region.
In order to realize these benefits it is essential that
approach to developing this market. It is proposed 't)
partnership with the Hotel industry to begin art agI
major events for the community. It is also propose
increments in each of the next two years in partnersh
full benefits of this initiative,.
Our industrial parks offer a cost effective ar
medium sized businesses as well as heavy
development ready sites is a key business attr
$300,000 in operating funds to support co
McAllister Industrial Parks bye ,,aint John ind
1 City adopt a forward looking strategic
an additional $50,000 be contributed to a.
;ssive and coord
that this amount
with the private
I program to secure
creased by $25,000
r so as to realize the
.veni;ent location for a range of small and
.stry in our region. The availability of
and expansion tool. The budget provides
d development of the Spruce Lake and
Parks
The City will also continue to advance the establishment of a One-stop Sloop approach to
facilitating local development.opportunities. Three service areas (planning, building inspection,
infi•astructure) have novo been 'com'bined aPd a dedicated staff tearn assigned to support this
initiative, An active consultation process,,is currently underway with the development
community to identify process improvements that can streamline and improve predictability of
the development approval process.
Finally, the City will be working with our economic development partners in 2014 to create a
capital assessment tool that will help prioritize strategic economic development investments
within our community, All three levels of government and the private sector are currently
operating in an environment bf fiscal constraint, and it is critical that new economic development
investments and initiatives be assessed using an objective merit -based evaluation system that
focuses on our community's current priorities and greatest needs. The outcomes from this
process will better support a coordinated community approach with respect to the pursuit of
required external funds for priority economic development projects or initiatives.
Recreation Facility Improvements
Council identified the need for strategic neighbourhood projects and investment in our recreation
facilities as a priority. Phase 2 of the full re -development of the flick Nicole Community
Page 3I
Kz11l
2014 Operating Budget 1211312013
Centre in the North End will be completed in 2014 with increased funding to be provided to
support a community based partnership with. One Change. This is a significant transition as a
neighbourhood community group takes a leadership role in the operation of a community centre.
The City will also be partnering with the private sector to develop an artificial turf field at
Shamrock Park. The availability of an artificial turf will not only expand the number of
competitive uses for the field but will also lengthen the season available for the use of the field..
This will open new recreational and sport opportunities for the entire community.
Recreation PlaySJ
Council identified the need for a strategic recreation pian that would allow for the delivery of
quality recreation programs, facilities and services. PtaySJ has, now been adopted as the policy
foundation for our recreation services and implementation will begirt in 2014..
The budget provides for the following initiatives as part of the PlayS l implementation;
• Implementation of a new staffing model in Growth and Community Development
Service to support transition Broin a direct recreation program delivery to a community
development/partnership approach,
• A new community special event called `Passport to Parks" to showcase and increase
citizen awareness about and activity in the City's signature parks such as Rockwood
Park, Dominion Park and Little River reservoir:
W implementation:. of a Ci
adopt a park programs t+
ae City Nark with pr
-up T'railor that can
ieighbourh000 ,tat or
will permit scii it I
unity pride, and cs
Design of a fro
coordination wit
YMCA to avoid
PlanSJ
vide campaign to promote community based clean-up and
rte opportunities for citizens to become actively involved in
r neighboarhoads. To support these efforts, it is proposed
Lte sector partners to acquire a fully equipped Community
made available to community groups interested in cleaning
iprving a local park or playground. A properly equipped
g, effective use of volunteer resources, create a sense of
that a sustainable program can be mounted.
n service delivery model in the Crescent Valley area in
missioning of the Somerset Centre and construction of a new
of effort.
P1anSJ is a foundational strategy that establishes a clear direction for long-term positive growth
and development in Saint John. With the adoption of our new Municipal Plan, the City will focus
on implementation of these policies through the development of a new Subdivision Bylaw and.
Zoning Bylaw to modernize our development framework and promote quality development that
'age 41
My
2014 Operating Budget 1211312013
aligns with the directions of P1anSJ. Integrated development support will be provided for major
projects such as the redevelopment of the Coast Guard site.
It is anticipated that a new Zoning Bylaw will be available by mid -year 2014 with a new
Subdivision Bylaw in place by the end of 2014. These bylaws will not only simplify the
approval process but also provide greater certainty and clarity to the development community
when planning their projects.
Mork will also begin in scoping the neighbourhood planning program to support delivery of the
first neighbourhood plan in 2015. The department will continue, to support implementation of
key Strategic flans identified in PlaiiSJ including the True Growth 2.0 Economic Strategy,
PlaySJ and the Transportation :Master Plan.
Public Safety Initiatives
A safe community is an essential element in the future prosperity of our community. The existing
industrial nature of the City combined with the potential for a number of other energy related
developments necessitates that City fire forces be properly equipped and trained in order to
respond to emergency incidents in a timely, efficient and effective manner. The loss of
commercial or industrial properties can have a real economic impact on our community
including a reduction in our tax base and the lass of employment.
The fire service will move forward with the establishment of a Fire "Training Campus in
partnership with a number of local industrial partners_ This training facility will better ensure an
effective and efficient response by our firefighters and industry first responders and reduce the
risk of loss in our community. Fire Service revenue has grown from $160,000 in 2010 to a
sustained revenue stream of $370,000 to $4110,400 in 2014 as a result of extending the
Furthermore, training revenue is expected to continue to increase in 2015 and beyond as industry
and other emergency response services identify the new fire training campus as a centre for
attaining and .maintaining emergency response competence. These cost recoveries reduce the net
cost of fire sen -ice in the cooimunity, improve fire response readiness and provide a cost-
effective training alternative to industry.
A new Fire Service B '-,aw: will be before Council in January/February. In addition, as a
follow up to the Core Servit,e Review results, we will be introducing a Fire Service Policy
document that will include a "Standard of Response" policy which identifies service expectations
across the various types of emergencies within and outside the Primary Development Area.
Our FNIO service will also be conducting a number of field/table top exercises during 2014 to
ensure that a coordinated and effective community response can be mounted in the event of a
major emergency situation. Part year funding has been provided for a permanent EMO
coordinator position and efforts will be made to secure supplementary funding to cover the cost
of this position.
Page 5
KZAK
2014 Operating budget 1211.3 20113
It is essential that the people who consider Saint John as a place to live, work or invest know
they can do so in a safe and secure environment. The Saint John Police Force will continue to
apply its intelligence led policing initiative in order to not only solve crime but as a highly
efficient tool for crime prevention. The total budget allocation of $23,743,517 includes the cost
of cross walk guards and building_ occupancy. The City will also allocate $2,493,179 to the cost
of operating the PSCC (911 service).
The SJPF will be commencing the 2014-20117 Strategic Planning process, which will include a
survey (Ipsos Reid), consultation with citizens, internal and eternal stakeholder engagement and
consideration of Police Board priorities. The Strategic „direction may include but not limited to:
Cameras (C.C.T.V. Crime Prevention/Reduction), Citizens Online Crime reporting, Leadership
Dev., and other initiatives and/or priorities c m -m- ensurate with budget expectations and
alignment.
The department will also generate approximately $91 Ok in revenue from the sale of services and
temporary officer assignments to offset operating,' costs. The cost of providing crossing guards
($1701) will be transferred to our Municipal Operations department during 2014 to be better
recognized as a traffic control measure
Public Transit
The City will contribute $5,`160,078 to support the operation of Saint John 'Transit which
represents an increase of $183k over 2013 as well as an additional $1,858,602 in debt payments
during the corning year, The capital budget will also provide for the purchase of 2 new buses
which will help to maintain the quality of service'and reduce maintenance expenses.
Exoenditutre Control
The increased cost of liability insurance premiums and insurance claims are expensive
requirements for the City of Saint John. 'T`he market for municipal insurance is very narrow given
the many inherent risks and rirtewal costs are expected to increase significantly. Council has
recently adopted a new risk management policy. Implementation of this policy will assist in
reducing claims in future, years ,,and will bring with it corporate wide attention to loss prevention
and control. It is anticipated that the program costs will be recovered within the first year of
implementation.
The City has taken over responsibility for LTD benefits from the former pension board with
annual payments of approximately $1.67M. An independent case review will be conducted
during 2014 to assess continued eligibility for benefits.
In 2013, the City paid $1.74M in property taxes to the Province of NB. Staff will undertake a
detailed review of the 2014 provincial property assessments to ensure the values are fair and
Page 61
K►z191
2014 Operoting Budget
12113/2013
equitable. As well, a planned bi-annual citizen survey while beneficial is not essential and has
been eliminated from the budget for the coming year.
In addition, the annual corporate budget for overtime costs has been reduced by $XXX,000
following a $500,000 reduction in 2013. While over -time costs can be managed to a point, it
must also be recognized that situations may arise that necessitate a service response..
Debt Management
The City will allocate $14,873,000 towards annual principle and interest payments. This
represents a projected debt ratio of approximately 10 percent for 2014. The debt ratio is well
within accepted standards and the City will continue to manage its borrowing costs so as not to
be over -exposed to the anticipated interest rate increases in fature years. New borrowing for
capital expenditures will be commensurate with our long-term debt ca.pacity.
Community Support
The need for policies and programs that support the creati(
and accessible opportunities to engage in arts, culture and
Council's priorities. The table below sets out some of th+
neighbourhoods and cultural and recreational activities for
i livable community with diverse
.tion opportunities is identified in
investments in activities, events,
)ming year;
Agency
Zou Fund in
2014 Funding
Pro Kids
$11 O,416
$106,632
Library
456,230
458,130
Imperial Theatre
337,039
339,322
Arts Centre
74,822
85,171
Arts & Culture Bard
35,000
35,000
Fundy grange Festival
5,000
5,000
Festival de la Bale
4,000
4,000
Sculpture'Symposium
n/a
7,500
Jazz and Blues Festival --- Salty lam
20,000
20,000
SJ Theatre Arts
10,000
10,000
Pavilion Cup
2,500
2,500
Cherry Brook Zoo
60,035
60,000
Aquatic Centre
194,617
322,070
Harbour ,Station
384,390
451,618
New rear/Canada Day
15,000
15,000
City Market
937,265
941,307
Lord Beaverbrook Rink
154,000
159,000
LivingSJ
n/a
7,500
Given the challenging financial position of the City it was not possible to respond favourably to
the many funding requests submitted to the City this year. The extensive demand and limited
resources also pointed to the need for a more formal Grant Distribution Policy for the City of
Page 71
KZAEI
2014 Operating Budget 1 211 312 01 3
Saint John to best ensure that citizen tax dollars are being applied to those programs that yield
the most benefit to the community.
It is proposed that a structured policy be developed during 2014 to be applied in the 2015 budget
year. This approach will sustain current activities and funding levels for existing programs while
still allowing sufficient time for community organizations to adapt to a more formal and rigorous
funding program in the ensuing year. This policy will be inclusive of all community based
operating grants provided by the City and will not only enable improved access but also foster
improved accountability and return on investment for the community as a whole.
The City will continue to fund the Neighbourhood Development Stimulation Grant program
($152,250) which targets community based initiatives in high priority neighbourhoods, builds
local capacity and leverages community funding and volunteer participation to deliver local
services.
The City will also contribute ($1.06,632) to the Pro -Kids program in order to facilitate the
participation of 700 plus disadvantaged youth in healthy recreational, ,sport and cultural
activities. This investment leverages matching private sector sponsorship, with additional
revenue opportunities to be investigated in 2014.
The City will continue reinvestment in heritage through the Heritage Incentives Program
($90,000) for heritage properties and arts and cultural investments through annual Art and
Culture Grants ($35,000) program, Financial and in-kind support for the Sculpture
Symposium and completion of the Shards of Time public art installation on the waterfront are
also planned for 2014.
Our City'sinformation and communications systems are required to support our public safety
and core municipal service operations on a year-round, 2417 basis. In 2014.the City will
continue to re -invest savings in voice and data communications costs into new network services
for community centres and public spaces, including an expansion of free WiFi in the
uptown. Expanded Information Technology (IT) services will also include support for the safe,
clean drinking water initiative and the planned introduction of Crowrdsowrcing, Community
Funding and !open Data polities and systems.
The IT Group is also working closely with our Agencies, Boards and Commissions, including
the Saint John Police Force and the Discover Saint John, to identify new outsourcing and
revenue generating opportunities. These opportunities will contribute to the overall.
sustainability of our City's IT infrastructure and systems, with an increasing focus on process
improvement, information and data management and evidence -based decision making.
Strategic Services
�zR
Page 8.1.
2014 Operating Budget 1211352013
The 2014 budget includes plans to launch AdvanceSJ, a new corporate strategic plan for the
City of Saint John. It is an essential management tool designed to ensure every employee
understands and contributes to Council's strategic priorities. As a result, the organization can
collectively focus on achieving these priorities while maintaining the City's core services and
demonstrating the best possible value for our citizens.
Through AdvanceSJ and using existing operating budget allocations, there will be a renewed
focus on our people, processes and public accountability in 2014, including the introduction of
an Annual Report for the City of Saint John, an expansion of the service -based budget
methodology, enhanced customer service strategies, and a commitment to continuous
improvement.
Funding has also been included to meet our con
agreements. Negotiations will begin in 2014 to
workforce. It is essential that tangible progress
and productive workforce.
2014 Establishment
The establishment represents the total
annual operating budgets of both the V
for the City of Saint John is set at 651.5
Conclusion
A commitment to a stable tax rate, c
overall decline in the City's tax base, ne
expenditure for a range of ser dices and
approximately one-half of one perccnt f
The focus of the 2014 Operating B
priorities. Significant investments in roe
both the operating and capital budgets.
)ligations under our various collective
these collective agreements with our
to support a more flexible, responsive
e permanent positions included in the
erieral Fund. The 2014 establishment
an increase in operational costs with an
ul consideration of the types and levels of
Mtal expenditures are projected to increase
year.
is a substantial commitment to fulfilling Council's
-ecreation and economic development are included in
The budget also targets 'key strategic initiatives (PIanSJ, PIaySJ, ZoneSJ, True Growth 2.0) that
will bring long-term berncfits to the community. These investments are supported by
expenditures in arts and eulture, community activities, regional facilities and bre and police
services aimed at creating a safe, livable community.
Recommendation
It is recommended that Common Council approve the 2014 Operating budget for the General
Operating Fund and adopt the following resolutions:
Therefore be it resolved:
Kz1.1
Page
_ 91
20,14 Opera. ting Budget
1211312013
1. That the sura of $148,772,180 be the total operating budget of the City of Saint John for
2014;
2, That the sum of $117,667,569 be the Warrant of the City of Saint John for 2014;
3. That the tax rate for the City of Saint John be $1.7850;
4. That Common Council orders and directs the levying,the Minister of Environment and
Local Government of said amount on real prrxty liable to taxation under the
Assessment Act within the City of Saint John;
5. That Common Council authorize the
Services to disburse, at a time acceptab]
and Committees, the approved funds as c
6. That Common Council a-oDrcvt- the 2014
7. That Common
Scale of 1.25%
Resp
J. Patrick Wog
City Manager
approve a
ry 1 �t, 201
�zIFA
iiraissioner of
hire, to the nam
fined in the 2014.
and Administrative
missions, Agencies,
of Permanent Positions at 651.5
iagement Professional Pay
14.
Page 10�