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2021-10-28 Finance Committee Minutes - Open SessionFinance Committee Meeting Open Session October 28, 2021 MINUTES — OPEN SESSION FINANCE COMMITTEE MEETING OCTOBER 28, 2021 AT 4:45 PM MEETING CONDUCTED THROUGH ELECTRONIC PARTICIPATION Present: Mayor D. Noade Reardon Councillor G. Sullivan Councillor P. Radwan Councillor G. Norton Councillor D. Hickey Also Present: City Manager J. Collin City Solicitor M. Tompkins Commissioner of Finance and Treasurer K. Fudge Commissioner Human Resources S. Hossack Commissioner Transportation & Environment M. Hugenholtz Commissioner Saint John Water B. McGovern Commissioner Growth & Community Services J. Hamilton Senior Financial Manager J. Forgie Senior Financial Manager C. Lavigne Senior Financial Manager D. Arbour Senior Accountant T. Fawcett Director Corporate Performance S. Rackley-Roach Energy Manager S. Yammine City Clerk J. Taylor Director Parking M. Dionne Fire Chief K. Clifford Administrative Officer R. Evans Mayor's Strategic Advisor B. Dryer Administrative Assistant K. Tibbits 1. Meeting Called to Order Councillor Sullivan called the Finance Committee open session meeting to order. Moved by Councillor Radwan, seconded by Mayor Noade Reardon: RESOLVED that the agenda of October 28, 2021 be approved. -knA IIQILKe1e ::1" 2. Approval of Minutes — September 28, 2021 1 Finance Committee Meeting Open Session October 28, 2021 Moved by Councillor Radwan, seconded by Mayor Noade Reardon: RESOLVED that the minutes of September 28, 2021 be approved. MOTION CARRIED. 3. Consent Agenda 3.1 2021 Year-to-date results for Saint John Police Force and the Public Saf Communications Center (Recommendation: Receive for Information) Moved by Councillor Hickey, seconded by Mayor Noade Reardon: RESOLVED that the submitted 2021 year-to-date results for the Saint John Police Force and the Public Safety Communications Center be received for information. MOTION CARRIED. 4. Business Matters 4.1 2022 General Fund Operating Budget Mr. Fudge presented the first draft of the 2022 General Fund operating budget. The budget was developed based on the policies and targets contained in the long-term financial plan and focuses investment on Council's priorities of Grow, Green, Move, Belong and Perform. The budget returns tax base growth to the taxpayer by lowering the city's tax rate by 7.5 cents. The increase of 6.24% in the tax base assessment is being treated as a one-time event until a pattern reveals itself. Moved by Mayor Noade Reardon, seconded by Councillor Hickey: RESOLVED that the Finance Committee reflect upon the proposed 2022 General Fund Operating Budget, make all inquiries to staff and receive and file the report. ►161116P►[aye ::1" (Mayor Noade Reardon withdrew from the meeting) 4.2 2022 Utility Fund Operating Budget Mr. McGovern presented the draft 2022 Utility Fund Operating Budget for the potable water and industrial water systems. There is no proposed increase for flat rate customers or metered customers. The utility continues to face pressure due to declining revenue. The 2022 flat rate will remain at $1428 per year for the fourth straight year. Industrial Raw Water customers will see various levels of increases. The Utility continues to focus on cost reductions, continuous improvement, finding efficiencies, process improvements, debt management, leveraging of funds from other levels of Government and pay as you go for all capital expenditures. There continues to be a steady decline in flat rate accounts and meter consumption. Without sustained growth in the revenue base, rate stabilization on an annual basis will be difficult to maintain. Moved by Councillor Radwan, seconded by Councillor Hickey: RESOLVED that the Finance Committee reflect upon the proposed 2022 Utility Fund Operating Budget as submitted and ask questions of staff until such time as staff returns to Finance Committee at its next meeting, and that the report be received for information. :1" 4.3 2022 Capital BUdRet Recommendation 2 Finance Committee Meeting Open Session October 28, 2021 Mr. Lavigne stated that the general fund and utility fund capital budgets total approximately $43M, noting that the City will only borrow approximately $9M. Two minor changes have been made to the original version of the general fund budget. • Replacement of security/alarm system in the City Market at a cost of approximately $95K • Cost of approximately $80K to the Trade & Convention Centre to finish the LED lighting project and swipe card system No changes were made to the utility fund budget. Moved by Councillor Hickey, seconded by Councillor Norton: RESOLVED that the Finance Committee approve the 2022 Draft General Fund Capital Budget and forward to Common Council for a receive and file. MOTION CARRIED with Councillor Radwan voting nay, stating that she wants to review the master plan for Rockwood Park prior to approval. Moved by Councillor Norton, seconded by Councillor Hickey: RESOLVED that the Finance Committee approve the 2022 Draft Utility Fund Capital Budget and forward to Common Council for a receive and file. MOTION CARRIED. 4.4 2021 Internal Audit Plan Ms. Forgie reviewed the submitted presentation "Internal Audit", noting that the proposed performance audit project is with respect to health and dental benefits, to determine if the City is providing the most effective benefits at the most efficient cost to employees and to the City. Moved by Councillor Hickey, seconded by Councillor Norton: RESOLVED that the Finance Committee recommends that Common Council approve the Internal Audit Plan. MOTION CARRIED. Adjournment Moved by Councillor Hickey, seconded by Councillor Norton: RESOLVED that the Finance Committee meeting be adjourned. MOTION CARRIED. The Finance Committee open session meeting held on October 28, 2021, was adjourned at 6:45 p.m. 3