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2021-11-24 Finance Committee Minutes - Open SessionFinance Committee Meeting Open Session November 24, 2021 MINUTES — OPEN SESSION FINANCE COMMITTEE MEETING NOVEMBER 24, 2021 AT 4:30 PM MEETING CONDUCTED THROUGH ELECTRONIC PARTICIPATION Present: Mayor D. Noade Reardon Councillor G. Sullivan Councillor P. Radwan Councillor D. Hickey Absent: Councillor G. Norton Also Present: City Manager J. Collin City Solicitor M. Tompkins Commissioner of Finance and Treasurer K. Fudge 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 Director Engineering M. Baker Director Corporate Performance S. Rackley-Roach City Clerk J. Taylor Fire Chief K. Clifford Administrative Officer R. Evans Administrative Assistant K. Tibbits 1. Meeting Called to Order Councillor Sullivan called the Finance Committee open session meeting to order. Moved by Councillor Harris, seconded by Mayor Noade Reardon: RESOLVED that the agenda of November 24, 2021 be approved. MOTION CARRIED. 2. Approval of Minutes — October 28, 2021 Moved by Mayor Noade Reardon, seconded by Councillor Radwan: RESOLVED that the minutes of October 28, 2021 be approved. 1 Finance Committee Meeting Open Session November 24, 2021 MOTION CARRIED. 3. Consent Agenda 3.1 2022 Saint John Police Force and Public Safety Communications Centre Operating Budget (Recommendation: Receive for Information) Moved by Mayor Noade Reardon, seconded by Councillor Hickey: RESOLVED that the submitted 2022 Saint John Police Force and Public Safety Communications Centre Operating Budget be received for information. MOTION CARRIED. 4. Business Matters 4.1 2022 Proposed General Fund ODeratiniz Budget Mr. Fudge recommended that the Finance Committee endorse the proposed 2022 General Operating Budget which would set the tax rate at $1.71 per 100 dollars of assessment, the lowest tax rate in over 24 years. The proposed budget complies with the City's long-term financial plans and polices including the wage escalation policy. Key highlights include: • The City's ownership in Saint John Energy will produce financial benefits derived from a green agenda and supports the city in lowering its tax rate • The budget includes focused investments driven by council's priorities • The only change to the budget is an adjustment for investment in Dominion Park • An additional resource to fund a casual position to support municipal reforms is included Moved by Councillor Radwan, seconded by Councillor Hickey: RESOLVED that as recommended by the City Manager in the submitted report "2022 Proposed General Fund Operating Budget" the Finance Committee approve the draft 2022 General Operating Budget and it be brought forward to Common Council with the recommendation to receive and file at the November 29th meeting. 11LAIIQI[eIL[aL : "Ilk 11 4.2 2022 Utility Fund Operating Budget Mr. McGovern reviewed the proposed 2022 Utility Fund Operating Budget. Key highlights include: • No increase for flat -rate or metered customers for potable water and wastewater users • The 2022 rate will remain the same for the fourth consecutive year • Focus remains on cost reductions to enable rate stabilization • The utility is experiencing declining revenue • Debt reduction continues to be a priority; no new debt included in this budget • No wage increases • Capital from operating has increased by approximately $370K for the 2022 utility capital budget • Bylaw rates for industrial users are aligned with industry best practices and operating costs are being fully recovered • The industrial rate adjustments remain as presented on October 28ti 2 Finance Committee Meeting Open Session November 24, 2021 Moved by Councillor Radwan, seconded by Mayor Noade Reardon: RESOLVED that as recommended by the City Manager in the submitted report "2022 Utility Fund Operating Budget" the Finance Committee approve the 2022 Utility Fund Operating Budget and forward to Common Council for approval. MOTION CARRIED. 4.3 Canada Communitv Building Fund Aaaroval Mr. McGovern stated that a revision to the 2019-2023 capital investment plan is proposed including a one-time 2020-2021 top up allocation and a minor revision to the 2022 capital general fund budget. Mr. Baker stated that a draft of the revised capital investment plan was submitted to the province for comment and included all quality -of -life projects under consideration. The province indicated that the green branding and beautification project did not meet the CCPF funding requirements. As a result, a change to the quality -of -life projects is required. The extension of Harbour Passage was deemed acceptable. Through the application process, it was determined that the City is entitled to an additional $63,724 of CCBF funding. Moved by Mayor Noade Reardon, seconded by Councillor Radwan: RESOLVED that as recommended by the City Manager in the submitted report "Revised 2019- 2023 Canada Community - Building Fund (Formally the Gas Tax Fund) Capital Investment Plan & General Fund Capital Program — Revision I, the Finance Committee: Approves the revised 2019 — 2023 Capital Investment Plan for the Canada Community - Building Fund (Formally called the Gas Tax Fund) Administrative Agreement as set in Exhibit 1 and submit it to the next Common Council meeting for approval; and, Approves Revision I of the 2022 General Fund Capital Budget in the amount of $29,540,279 (gross) with contributions from other sources $16,720,876 yielding a net Capital budget in the amount of $12,819,403 as set in Exhibit 2 and submit it to the next Common Council meeting for approval. LTA I41104I►[4L1ilk] k]11191 4.4 Year End Forecast General Operating and Utility Operating Budgets Mr. Fudge commented on the year-end forecast as of September 30' for the general operating and utility operating funds; both are performing well and compliant with the city's long-term policies. The general operating budget is forecasting a surplus of less than 1% of the overall approved budget. Mr. Lavigne reviewed the submitted presentation and each service area provided an update on their year-to-date forecasts and results. The overall year end projection for the General Fund is a $1,397,032 surplus. These figures are subject to change and factors such as potential snow falls, infrastructure failure and public safety events can impact the results. Mr. McGovern reviewed the year-end forecast for the utility operating budget which is projecting an overall surplus of $1,411,838 for 2021. The recommendation is to approve the transfer of $750,000 of the surplus to a Capital Reserve for future capital projects. The recommendation aligns with the approved Budget Monitoring Policy and will help to stabilize rates in the future as inflationary pressures on the costs of goods and services continues. Moved by Councillor Hickey, seconded by Mayor Noade Reardon: RESOLVED that as recommended by the City Manager in the submitted report "September 2021 Financial Results and Projections", the Finance Committee approves the transfer of $750,000 Finance Committee Meeting Open Session November 24, 2021 from the Utility Fund surplus to the Utility Fund Capital Reserve for 2021; and that the report be received for information. MOTION CARRIED. Adjournment Moved by Councillor Hickey, seconded by Councillor Radwan: RESOLVED that the Finance Committee meeting be adjourned. MOTION CARRIED. The Finance Committee open session meeting held on November 24, 2021, was adjourned at 5:55 p.m.