2020-07-23 Finance Committee Minutes - Open SessionFinance Committee Meeting
Open Session
July 23, 2020
MINUTES — OPEN SESSION FINANCE COMMITTEE MEETING
JULY 23, 2020 AT 4:30 PM
MEETING CONDUCTED BY ELECTRONIC PARTICIPATION
Present: Mayor D. Darling
Councilor D. Merrithew
Councilor S. Casey
Councilor D. Reardon
Councilor G. Sullivan
Absent: Councilor G. Norton
Also
Present: City Manager J. Collin
Commissioner of Finance and Treasurer K. Fudge
City Solicitor J. Nugent
Fire Chief K. Clifford
Commissioner Saint John Water B. McGovern
Deputy Commissioner Building & Inspection Services A. Poffenroth
Deputy Commissioner Transportation & Environment J. Hussey
Deputy Commissioner Saint John Water K. Mason
Senior Financial Manager D. Arbour
Senior Financial Manager C. Lavigne
General Manager Saint John Transit M. Dionne
Director Corporate Performance S. Rackley-Roach
Manager Integrated Customer Service R. VanWart
Administrative Officer R. Evans
Administrative Assistant K. Tibbits
1. Meetiniz Called To Order
Councillor Merrithew called the Finance Committee open session meeting to order.
2. Approval of Minutes
2.1 Minutes of May 14, 2020
Moved by Councillor Casey, seconded by Mayor Darling:
RESOLVED that the minutes of May 14, 2020 be approved.
MOTION CARRIED.
3. Consent Agenda
3.1 Shared Services — Service Agreement between the City of Saint John and Police
Commission
Moved by Councillor Sullivan, seconded by Councillor Casey:
Finance Committee Meeting
Open Session
July 23, 2020
RESOLVED that the submitted report entitled Service Legal Agreement — Saint John Board of
Police Commissioners, be received for information.
MOTION CARRIED.
3.2 2021 General Fund Operating Budget Timelines
Moved by Councillor Sullivan, seconded by Councillor Casey:
RESOLVED that the submitted report entitled 2021 General Fund Operating Budget Timelines, be
received for information.
MOTION CARRIED.
4. Business Items
4.1 2019 Consolidated Financial Statements
(Mr. J. Mallais and Mr. S. Lund joined the meeting electronically)
Mr. Fudge stated that a clean audit opinion has been provided by the auditor with respect to the
City's 2019 consolidated audited financial statements, 2019 trust fund statements and the 2019
Trade & Convention Centre statements. The City's financial position continues to improve due
to sound financial management practices and strong fiscal governance.
Mr. Lund and Mr. Mallais reviewed the 2019 audited statements, confirming that the City's
financial statements are accurate and in accordance with accounting standards and legislative
requirements.
Ms. Arbour provided a staff presentation on the 2019 Consolidated Financial Statements.
Moved by Mayor Darling, seconded by Councillor Sullivan:
RESOLVED that the Finance committee:
• Approves the audited 2019 Consolidated Financial Statements;
• Approves the 2019 statement of revenue and expenses of the Saint John Trade &
Convention Centre;
• Approves the 2019 City of Saint John Trust Funds financial statements; and,
• Recommends that Common Council approve the 2019 Consolidated Financial Statements
as presented by staff as well as the TCC statement and Trust Fund financial statement.
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(Mr. Mallais and Mr. Lund withdrew from the meeting)
4.2 2020 General Fund Forecast
Ms. Arbour reviewed the presentation "General Fund COVID-19 Financial Impact Update"
regarding the year-end forecast and the impact of COVID-19. Estimates indicate that revenues
will be reduced by approximately $4.5M compared to the 2020 budget. The City will mitigate
this $4.5M revenue loss with a series of cost saving initiatives. The biggest savings to the budget
is in wages and benefits; expect to save $2.1M over the budgeted amounts. Results continue to
be monitored closely and adjustments will be made to the mitigation plan if required. It is being
recommended that the cost mitigation strategy be adjusted to reduce an additional $505K deficit
projected by the Transit Commission.
Mr. Collin stated that the City has been very cautious with its expenditures and service
restoration initiatives and advised that there is no further ability to restore additional services. A
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Finance Committee Meeting
Open Session
July 23, 2020
balanced budget is currently forecast for year-end but a level of risk remains as it is unknown
how the pandemic will proceed.
Moved by Councillor Sullivan, seconded by Councillor Casey:
RESOLVED that the 2020 General Fund Forecast be received for information.
MOTION CARRIED.
4.3 2020 Transit Forecast
Mr. Fudge commented on the financial impact of COVID-19 on transit services including an initial
suspension of fares (since reinstated), and a limitation of passengers. Because of this loss of
revenue, the Transit Commission immediately reduced its costs through service reductions such
as staff layoffs and reduced fuel consumption. Saint John Transit was provided with an advance
of its July operating subsidy due to cash flow pressures. The City and the Transit Commission
continue to advocate for provincial and federal funding relief for public transit. Their financial
position has improved with respect to expanding the number of riders but financial risk remains
for a deficit in which the City will be required to fund.
Mr. Lavigne reviewed the presentation "Saint John Transit Financial Update." The deficit is
predicted to increase to approximately $500K by the end of the year, due to limitations in
ridership and service levels.
Mr. Dionne stated that rather than eliminating routes, the commission has reduced the
frequency of runs and eliminated Sunday and holiday service. To go beyond this, routes will have
to be eliminated. Fares will be reviewed.
Mr. Collin clarified that the City continues to advocate for financial relief of the transit system.
The impact to transit services due to COVID-19 is well beyond the prediction of a $500K deficit;
the actions of the Transit Commission and the reduction in services of approximately 26%
reduced a portion of what the deficit would have been. The Transit Commission has been
directed to cut the projected $500K deficit in half.
Moved by Councillor Sullivan, seconded by Councillor Casey:
RESOLVED that the Finance Committee:
• Recommends Saint John Transit Commission report back to the Finance Committee at its
next meeting with plan to reduce additional deficit of $505,320 to a maximum of
$250,000 deficit and provide a description of the impacts due to reducing the deficit;
• Direct the City Managerto advise the Board of the Transit Commission that the additional
deficit must be no more than $250,000 regardless of future events that may impact
operations of the Transit Commission; and,
• Direct staff from Finance to report back to the Finance Committee monthly on the
financial results and estimated deficit of the Transit Commission for the balance of 2020.
MOTION CARRIED.
4.4 Customer Service Initiative
Ms. Van Wart reviewed the submitted presentation "Service SJ Integrated Customer Service
Centre Project". Customer service functions within the City are currently decentralized, with
inconsistent approaches. There are many challenges due to lack of structure and lack of
processing tools. The City's new integrated customer service centre will address these issues.
The new Service SJ model will be streamlined with an enhanced approach for all citizen requests.
Launch dates are October 5t" (Phase 1) and December 15t (Phase 2).
(Councillor Sullivan withdrew from the meeting)
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Finance Committee Meeting
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July 23, 2020
Moved by Mayor Darling, seconded by Councillor Casey:
RESOLVED that the Finance Committee endorse the Service SJ model.
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4.5 Strategic Plan
Mr. Fogan provided an update on the City's strategic planning process. Mr. Fogan discussed the
governance model, guiding principles, policy direction and timeline, highlighting the City's
commitment to continuous improvement. The Strategic Plan is a ten-year outlook for the
organization, with annual approvals and adjustments from Council as necessary. It will be
updated as the environment changes.
Moved by Councillor Reardon, seconded by Councillor Casey:
RESOLVED that the Finance Committee endorse the following:
• Proposed governance structure of the Steering Committee;
• Proposed scope of the Steering Committee; and,
• Proposed Project Timeline for completion of the Strategic Plan by May 2021
MOTION CARRIED.
Adjournment
The Finance Committee open session meeting held on July 23, 2020 was adjourned at 6:47 p.m.
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