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2019-09-18 Finance Committee Minutes - Open SessionFinance Committee Meeting Open Session September 18, 2019 MINUTES — OPEN SESSION FINANCE COMMITTEE MEETING SEPTEMBER 18, 2019 AT 5:30 PM 8t" FLOOR COMMON COUNCIL CHAMBER (LUDLOW ROOM), CITY HALL Present: Mayor D. Darling Councillor D. Merrithew Councillor S. Casey Councillor D. Reardon Absent: Councillor G. Norton Councillor G. Sullivan Also Present: City Manager J. Collin Commissioner of Finance and Treasurer K. Fudge Comptroller Finance C. Graham City Solicitor J. Nugent Commissioner Saint John Water B. McGovern Commissioner Transportation & Environment Services M. Hugenholtz Deputy Commissioner Building & Inspection Services A. Poffenroth Director Corporate Performance S. Rackley -Roach Assistant Comptroller Finance and Administrative Services C. Lavigne Deputy Commissioner Administrative Services I. Fogan Senior Financial Manager J. Forgie Senior Financial Manager C. Lavigne Senior Financial Manager D. Arbour Fire Chief K. Clifford Administrative Assistant K. Tibbits 1. Meetiniz Called To Order Councillor Merrithew called the Finance Committee open session meeting to order. 1.1 Approval of Minutes — July 18, 2019 Moved by Mayor Darling, seconded by Councillor Reardon: RESOLVED that the minutes of July 18, 2019 be deferred to the next meeting. LTA IQ1[47►[4L1:k]k]1if91 1.2 2019-2023 Gas Tax Fund Capital Investment Plan Mr. Fudge stated that this five year agreement includes approximately $29M of capital investment. There are provisions in the agreement that allow the City to update or modify the capital investment plan subject to approval by the province. Moved by Mayor Darling, seconded by Councillor Reardon: Finance Committee Meeting Open Session September 18, 2019 RESOLVED that the Finance Committee approve the 2019-2023 Capital Investment Plan for the Gas Tax Fund Administrative Agreement and submit to Common Council for approval; and further that the report be received for information. LTA [4110417►[4L1:k]k]11191 1.3 Year -End Forecast Mr. Fudge noted that year-end results should be interpreted cautiously, adding that the assumption used is that forecasted results will trend in the same direction and are based on the best available information to date. Ms. Forgie reviewed the year to date forecast for the General Operating Fund. A $2.3M surplus is being projected at year-end which means that the City will require less financial assistance from the province. Mr. Lavigne reviewed the Saint John Water year-end forecast. Overall, a net year-end surplus of approximately $168K is being projected. Moved by Councillor Reardon, seconded by Councillor Casey: RESOLVED that the Year -End Forecast as at July 2019, be received for information. MOTION CARRIED. 1.4 2020 General Operating Budget Mr. Fudge stated that the 2020 General Operating Budget is a status quo budget and will be amended accordingly as the City continues its deliberations with respect to restructuring and sustainability initiatives. The budget incorporates Sustaining Saint John Three -Part Plan initiatives that the City feels are achievable. Mr. Lavigne reviewed the first draft of the 2020 General Fund Operating Budget. The budget includes several assumptions, including: • Assumes 1.5% tax base growth; • Assumes the unconditional grant remains the same; • Based on the above assumptions, the budget assumes that 20% less in provincial funding will be required than what is prescribed in the Funding Agreement. The budget assumes $8M in provincial funding, down from a $10.4M funding commitment. Moved by Mayor Darling, seconded by Councillor Reardon: RESOLVED that the draft 2020 General Operating Budget, be received for information. MOTION CARRIED. Adjournment Moved by Councillor Reardon, seconded by Mayor Darling: RESOLVED that the open session meeting of the Finance Committee be adjourned. MOTION CARRIED. The Finance Committee open session meeting held on September 18, 2019 was adjourned at 6:20 p.m. 2