Approved Budget March 26, 2018COUNCIL REPORT
M&C No.
2018-74
Report Date
March 16, 2018
Meeting Date
March 26, 2018
Service Area
Finance and
Administrative Services
His Worship Mayor Don Darling and Members of Common Council
SUBJECT: 2018 Revised General Operating Budget
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Common Council.
AUTHORIZATION
Primary Author
Commissioner/Dept. HeadCity
Manager
David Merrithew
Hilary Nguyen/Kevin
Fudge
Jeff Trail
RECOMMENDATION
RESOVED that as recommended by the Finance Committee at its March 13th
meeting:
1. That the sum of $156,090,792 be the total Operating Budget of the City
of Saint John for 2018;
2. That Common Council approves the 2018 Establishment of Permanent
Positions at 630;
3. That Common Council approves $350,000 to the Growth Reserve Fund to
support the City's growth initiatives.
EXECUTIVE SUMMARY
The 2018 General Operating Budget was approved by the Common Council on
December 11th, 2017. On February 12th, 2018, Council approved the Provincial
Funding Agreement according to which the Province agreed to provide
additional funding to the City in an amount up to $3,477,659 in 2018. Following
the approval of the Funding Agreement, Staff has worked diligently on a revised
2018 General Operating Budget to ensure that all requirements in the Provincial
Funding Agreement are met. The Finance Committee met on March 13th, 2018 to
review the revised General Operating Budget and recommended that the revised
Budget as presented be sent to Common Council for approval.
PREVIOUS RESOLUTION
-2 -
Common Council approved the 2018 General Operating Budget as
recommended by the City Manager in the report M&C 2017-315 on December
11th, 2017.
REPORT
The 2018 General Operating Budget in the amount of $152,613,133 was
approved by Common Council on December 11th, 2017. In February 2018, the
Province announced a funding agreement for the City of Saint John which was
designed to provide additional funding to the City in an amount up to
$22,800,000 over a 3 -year period starting 2018 to allow the City to deliver on
core frontline services while working collaboratively with the Province on long
term solutions to adderess the City's structural deficit. The Provincial Funding
Agreement was approved by Common Council on February 12th, 2018. Pursuant
to the Agreement, the City will receive up to $3,477,659 in 2018. In order to
reinstate frontline services which had been cut due to budget constraints, a
revised 2018 General Operating Budget was prepared by Staff and submitted to
the Finance Committee for review on March 13th, 2018.
The following table summarizes major adjustments which have been made to
the original 2018 General Operating Budget:
Description
Budget Adjustments
Revenues
Financial Assistance
3,477,659
Total Adjustment to Revenues
3,477,659
Expenses
Growth & Community Development Services
4581885
Fire Rescue and Suppression Service
1,117,913
Emergency Management Service
7,305
Police Services
1,187,000
Transit Service
365,845
Other Transportation & Environment Services
1,328,799
Corporate Services
116,060
Restructuring Cost
:1,2.39,537
Other Compensation Costs
135,389
Total Adjustment to Expenses
3,477,659
All adjustments have been made to minimize impacts on frontline services
including Fire Rescue and Suppression service, Police services, Transit service as
well as Transportation and Environment. The revised budget also focuses on
growth as the Growth Reserve Fund of $350K has been reinstated and $35K has
W711.
been reinstated to the Heritage Grant budget to bring it to a total of $80K.
Additional funding of $21K has also been added to the previously approved
Cultural Affairs' budget to support arts and culture.
The restructuring cost budget was initially set up to support the City's
restructuring effort. However, the restructuring cost budget will not be needed
in 2018 as the City will receive short term provincial funding while working with
the Province to find long term solutions to the City's structural deficit challenges.
Even though the City will not move ahead with its restructuring program in 2018,
wages and benefit escalation is still a major budget concern. Therefore, Staff has
worked diligently and identified positions which could be eliminated during the
budget process. Most positions eliminated were vacant due to retirement or
resignation. As a result, the City's Establishment has been reduced from 641
positions in 2017 to 630 positions in 2018.
Other small adjustments have been made to Corporate Services and other
compensation costs to reflect up to date information or increased support for
frontline services.
STRATEGIC ALIGNMENT
The 2018 Revised 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
2018 Revised General Operating Budget
I RYA
The City of Saint John
GENERAL OPERATING FUND
City of Saint John
2018 Budget
2018 2018
Approved Proposed
Budget Budget
REVENUES
Property taxes
121,319,088
121,319,088
Equalization & Unconditional Grant
16,603,206
16,603,206
Financial Assistance
1,239,537
4,717,196
Surplus 2nd previous year
1,338,515
1,338,515
Growth & Community Development Services
2,503,571
2,503,571
Public Safety Services
1,887,022
1,887,022
Transportation & Environment Services
3,982,308
3,982,308
Finance & Administrative Services
3,654,886
3,654,886
Corporate Services
85,000
85,000
TOTAL REVENUES PY 152,613,133 156,090,792
EXPENDITURES
Growth &Community Development Services 10,118,529 10,577,414
Public Safety Services 53,073,561 55,385,779
Transportation & Environment Services 42,025,858 43,720,502
Finance & Administrative Services 9,503,272 9,503,272
Corporate Services 8,465,297 8,581,357
Other Charges 29,426,616 28,322,468
TOTAL EXPENDITURES 152,613,133 156,090,792
General Fund Surplus (Deficit)
1