2020-01-22 Finance Committee Minutes - Open SessionFinance Committee Meeting
Open Session
January 22, 2020
MINUTES — OPEN SESSION FINANCE COMMITTEE MEETING
JANUARY 22, 2020 AT 4:30 PM
8t" FLOOR COMMON COUNCIL CHAMBER (LUDLOW ROOM), CITY HALL
Present: Mayor D. Darling
Councillor D. Merrithew
Councillor S. Casey
Councillor D. Reardon
Councillor G. Sullivan
Councillor G. Norton
Also
Present: City Manager J. Collin
Commissioner of Finance and Treasurer K. Fudge
Comptroller Finance C. Graham
City Solicitor J. Nugent
Fire Chief K. Clifford
Commissioner Transportation & Environment Services M. Hugenholtz
Senior Financial Manager C. Lavigne
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 — December 3. 2019
Moved by Councillor Reardon, seconded by Councillor Norton:
RESOLVED that the minutes of December 3, 2019 be approved.
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(Mayor Darling entered the meeting)
1.2 Emergency Response Simulation Project
Chief Clifford reviewed the submitted presentation entitled, "Emergency Planning Preparedness
& Response Simulation Theatre Project."
Mr. Collin commented on some of the benefits of the simulation project, including increased
revenue and training potential, and also having the ability to practice and validate emergency
plans without deploying response forces, saving money in the long-term.
Moved by Councillor Reardon, seconded by Mayor Darling:
RESOLVED that as recommended by the City Manager in the submitted report entitled
"Emergency Response Simulation Theatre Project" the Finance Committee recommends that
Common Council:
Finance Committee Meeting
Open Session
January 22, 2020
• Approves the proposed renovations to the soon to be vacated Fire Prevention Division
located in the second level office space next to the Saint John Emergency Operations
Centre (EOC) for the purpose of establishing an emergency planning, preparation,
response and testing simulation theatre;
• Award a contract as presented by ADMS simulation (Attachment C) for the purpose of
providing the City of Saint John with simulation equipment that will support the
development of a comprehensive emergency planning, preparation, response and testing
simulation theatre;
• Approves the adjustment to the 2020 Capital Budget for the purchase of the Emergency
Planning, Preparedness, Response Testing Simulation Project based on the
appropriateness of the submitted business case for a total of $571,385;
• Approves the local acquisition of the furniture, monitors and other related electronic
equipment necessary for the simulation theatre from the CAER contribution received
from Canaport LNG.
MOTION CARRIED.
1.3 Agreement with NB Power — Backup Fire Protection Service
Chief Clifford reviewed the submitted presentation entitled, "NB Power Agreement Backup Fire
Response to PLNGS." This ten-year agreement encompasses emergency response and training.
Rates are adjusted based on CPI and current salary for the duration of the agreement and
significantly increases the annual contribution from NB Power. The City was prepared to step
away from the relationship in place since 1982 if a better value arrangement could not be met.
Moved by Mayor Darling, seconded by Councillor Reardon:
RESOLVED that as recommended by the City Manager in the submitted report entitled,
"Agreement with NB Power for Back-up Fire Protection Services and Response Training at the
Point Lepreau Generating Station", the Finance Committee recommends that Common Council
authorizes the Mayor and Common Clerk to execute the submitted 10-year agreement for
Backup Fire Protection and Response Training between the City of Saint John Fire Department
and NB Power Corporation, Point Lepreau Generating Station.
MOTION CARRIED.
1.4 Reauest to RDC to Share Cost of Seawall
Mr. Lavigne stated that the request of the Finance Committee is to endorse a letter be sent to
the RDC requesting the province contribute to the cost of the seawall refurbishment project. The
City secured funding for the $8.1M project through the Disaster Mitigation and Adaptation Fund
with the Federal Government. The Federal Government's contribution is 40% or $3.24M; the
City's share is $4.86M and has been budgeted as part of the 2020 and 2021 capital budget. The
letter is asking RDC to contribute 30% of the overall cost of the project, or $2.43M. The province
stands to gain considerable property tax revenue and therefore considered a reasonable ask of
the province.
The project will proceed, even if the City does not obtain the requested cost -sharing
arrangement.
Moved by Councillor Reardon, seconded by Councillor Sullivan:
RESOLVED that as recommended by the City Manager in the submitted report entitled, "Fundy
Quay Seawall — Provincial Cost Sharing Request", the Finance Committee recommends that
Common Council direct the Mayor to sign the submitted letter to the Province of New Brunswick,
requesting 50/50 cost sharing for the remaining Municipal portion of infrastructure costs for the
refurbishment and raising of the Fundy Quay Seawall.
MOTION CARRIED.
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Finance Committee Meeting
Open Session
January 22, 2020
1.5 Understanding Consolidated Financial Statements
Mr. Fudge reviewed the submitted presentation entitled, "Consolidated Financial Statements —
Debunking the Myth" and clarified the interpretation of the consolidated financial statements
and some of the numbers contained within. The City is projecting a $10M structural deficit for
2021 in the operating budget. Balancing the operating budget is a legislative requirement.
Interpreting the structural deficit in the operating budget is very different than interpreting the
results of the consolidated statements and should not be analyzed in isolation.
Moved by Councillor Norton, seconded by Councillor Sullivan:
RESOLVED that the presentation entitled, "Consolidated Financial Statements — Debunking the
Myth", be received for information.
MOTION CARRIED.
1.6 2020 General ODeratiniz Budizet Resolution
Referring to the submitted report, Mr. Fudge stated that the province requires a revised
resolution related to the 2020 General Operating Budget, due to the treatment of LNG revenue.
There is no impact to the overall budget and is an adjustment between two revenue line items.
Moved by Councillor Norton, seconded by Councillor Sullivan:
RESOLVED that as recommended by the City Manager in the submitted report entitled, "2020
General Fund Operating Budget", the Finance Committee endorse the following revised
resolutions for the 2020 General Fund Operating Budget and submit to Common Council for
approval:
1. That the sum of $166,708,424 be the total Operating Budget of the City of Saint John for
2020;
2. That the sum of $125,842,974 be the Warrant of the City of Saint John for 2020;
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 2020 budget.
MOTION CARRIED.
Adjournment
Moved by Councillor Reardon, seconded by Councillor Norton:
RESOLVED that the open session meeting of the Finance Committee be adjourned.
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The Finance Committee open session meeting held on January 22, 2020 was adjourned at 5:30
p.m.
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