2021-04-28 Finance Committee Minutes - Open SessionFinance Committee Meeting
Open Session
April 28, 2021
MINUTES — OPEN SESSION FINANCE COMMITTEE MEETING
APRIL 28, 2021 AT 5:15 PM
MEETING CONDUCTED BY ELECTRONIC PARTICIPATION
Present: Mayor D. Darling
Councillor D. Merrithew
Councillor G. Norton
Councillor D. Reardon
Councillor G. Sullivan
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Present: Commissioner of Finance and Treasurer K. Fudge
Manager Human Resources S. Hossack
Commissioner Transportation & Environment M. Hugenholtz
Commissioner Saint John Water B. McGovern
Commissioner Growth & Community Services J. Hamilton
Manager Workforce Effectiveness L. Robichaud
Senior Financial Manager C. Lavigne
Senior Financial Manager D. Arbour
Senior Financial Manager T. Fawcett
Director of Strategic Affairs I. Fogan
Fire Chief K. Clifford
Municipal Engineer M. Baker
Fire Chief K. Clifford
Energy Manager S. Yammine
Administrative Assistant K. Tibbits
1. Meeting Called To Order
Councillor Merrithew called the Finance Committee open session meeting to order.
1.1 Approval of Minutes — March 31, 2021
Moved by Councillor Sullivan, seconded by Councillor Norton:
RESOLVED that the minutes of March 31, 2021 be approved.
MOTION CARRIED.
1.2 Finance Committee —A Term in Review
Key comments include:
• Changed from an "audit committee" to an active and engaged committee involved in the
creation of the long-term financial plan and a suite of policies including the wage
escalation policy and debt management policy; policies in place to promote good financial
governance.
Finance Committee Meeting
Open Session
April 28, 2021
• Polices will be amended and created as required; new committee should continue to
monitor all polices.
• Significant improvement to the City's finances over this term.
• There has been a positive progression over the years including an alignment with best
practice policies, long-term financial goals and a report card.
• In 2016, there was discussion of rotating members between the Growth Committee and
the Finance Committee — continuity is important and recommends that the Committee
composition remain the same over the entire term.
• Public is more aware of the financial targets, challenges and opportunities that exist and
have been made aware of key financial policies; public engagement and strategic
communications are important.
• Committee has strengthened strategies, objectives and metrics; focused and transparent.
• Hopeful that the next committee continues with and supports the progress that has
occurred.
• Fiscal health has been embedded into our priorities, long-term strategies have been
developed, and our long-term thinking has improved - policies, continuous improvement,
opportunities identified from the Ernst & Young review, paid debt down by 20%, capital
from operating, reserve funds, tax rate reduction in place.
• Built confidence in the community, region and province.
Moved by Councillor Sullivan, seconded by Councillor Reardon:
RESOLVED that item 1.2 Finance Committee — A Term in Review, be received for information.
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1.3 Asset Management Policv Amendment
(Mr. M. Benson of RV Anderson and Mr. S. Yammine joined the meeting electronically)
Mr. McGovern stated that good progress has been made in addressing the City's infrastructure
deficit through the various policies under the Asset Management program. The asset
management program is maturing and therefore it is necessary to review and update the policies
to allow for infrastructure investments to improve quality of life, decommission assets, and
establish criteria to prioritize capital investments. In conjunction with the Climate Change
Adaptation Plan, it is necessary to establish procedures to evaluate climate change risks.
Mr. Yammine and Mr. Benson reviewed the submitted presentation entitled, "AM Policy, AM
Strategy and Capital Budget Policy Updates."
Moved by Mayor Darling, seconded by Councillor Reardon:
RESOLVED that the Finance Committee endorse the following:
• Update the Asset Management Policy to Combine "Risk" and "Climate Change"
considerations as a single Asset Management (AM) principle.
• Update the Asset Management Strategy to include the following:
o Add "Supporting References" section.
o Add "Decision Making Approach" section.
o Rename "Strategies" section to "Improvement Initiatives".
• Define asset management strategies to maintain a defined Level of Service.
• Develop Capital Budget workflows, procedures, and prioritization criteria/approach.
MOTION CARRIED.
1.4 Long -Term Financial Plan Financial Health Scorecard
Mr. Fudge commented on the accomplishments undertaken by the Finance Committee including
an overhaul of the City's financial governance, creation of a strategic financial plan, and
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Finance Committee Meeting
Open Session
April 28, 2021
embedding that plan into policy to guide decision making into the future. The financial health
scorecard demonstrates a picture of discipline, sustainability, and vision while demonstrating
measures and results.
Ms. Arbour reviewed the submitted presentation entitled, "Long -Term Financial Plan Financial
Health Scorecard" and commented on how the City's financial situation measures up against the
goals set in the Long -Term Financial Plan. Overall, the City is on track with the 2030 plan, however
adjustments will be required to reflect new information and experience. Principles, polices and
targets will remain largely the same, but forecasts will be updated every year based upon such
things as new council priorities, strategic planning and economic conditions. The "scorecard" will
measure how the City is doing in comparison to the Long -Term Financial Plan and provide a
concrete measure of the City's financial health.
Moved by Councillor Sullivan, seconded by Mayor Darling:
RESOLVED that the Finance Committee amend the Capital Budget Policy for 2022 to reflect
change in capital renewal ratio in General Fund to 85/15; adopt a new Financial Health Scorecard
for 2022; and that the 2021 budget health scorecard be received for information.
MOTION CARRIED.
1.5 Utility and General Fund — 2021 Capital Programs Revision II
Mr. Baker reviewed the submitted presentation on revision II of the 2021 Utility and General
Fund Capital programs including an update on the COVID-19 Resilience Infrastructure Fund and
the status of the Community Development Fund. The goal is to ensure that the City leverages all
available money under both funds. There is no cost increase to the City, but it provides for
additional funding from these programs from other levels of government.
Moved by Councillor Reardon, seconded by Councillor Sullivan:
RESOLVED that the Finance Committee:
• Approve revision II of the 2021 Water and Sewerage Utility Fund Capital Budget in the
amount of $12,608,934 (gross) with contributions from other sources of $6,362,934
yielding a net capital budget in the amount of $6,246,000 to be funded by pay as you go
(net) as set in Appendix A;
• Approve revision II of the 2021 General Fund Capital Budget in the amount of $45,309,783
(gross) with contributions from other sources of $29, 442,183, yielding a net Capital
budget in the amount of $15,867,600 to be funded by debt issue (net) as set in Appendix
B; and
• The Finance Committee recommend approval of the Utility and General Fund Capital
Budgets at the next meeting of Common Council.
MOTION CARRIED.
Adjournment
Moved by Councillor Reardon, seconded by Councillor Norton:
RESOLVED that the Finance Committee meeting be adjourned.
MOTION CARRIED.
The Finance Committee open session meeting held on April 28, 2021 was adjourned at 6:50
p.m.
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