2016-11-08 Finance Committee Minutes Open SessionFinance Committee Meeting
Open Session
November 8, 2016
MINUTES - OPEN SESSION FINANCE COMMITTEE MEETING
NOVEMBER 8, 2016 AT 4:30 PM
8t" FLOOR BOARDROOM, CITY HALL
Present: Mayor D. Darling
Councillor D. Merrithew
Councillor D. Reardon
Councillor G. Sullivan
Absent: Councillor G. Norton
Councillor S. Casey
Also
Present: City Manager J. Trail
Deputy City Manager N. Jacobsen
Commissioner of Finance and Treasurer K. Fudge
Comptroller C. Graham
Senior Manager Financial Planning H. Nguyen
Commissioner of Transportation & Environment Services M. Hugenholtz
Commissioner Saint John Water B. McGovern
Commissioner Growth and Community Development J. Hamilton
Fire Chief K. Clifford
Assistant Comptroller Finance C. Lavigne
Administrative Assistant K. Tibbits
1. Meeting Called To Order
Councillor Merrithew called the Finance Committee open session meeting to order.
1.1 Approval of Agenda
Moved by Councillor Reardon, seconded by Mayor Darling:
RESOLVED that the agenda for the open session meeting of the Finance Committee be
approved.
MOTION CARRIED.
1.2 Approval of Minutes
1.2.1 Minutes of October 6. 2016
Moved by Councillor Reardon, seconded by Councillor Sullivan:
RESOLVED that the minutes of October 6, 2016 be approved.
MOTION CARRIED.
1.2.2 Minutes of October 13, 2016
Finance Committee Meeting
Open Session
November 8, 2016
Moved by Councillor Reardon, seconded by Councillor Sullivan:
RESOLVED that the minutes of October 13, 2016 be approved.
1.3 General Capital Budget: Recommend Draft General Capital Budget to Council on
November 14th
Mr. Fudge reviewed the submitted presentation and commented on the 2017 budget process.
The draft capital budget is aligned with Council's priorities - growth and prosperity, creation of
a safe city, value service delivery, and fiscal responsibility. Mr. Fudge asked for feedback with
respect to the draft general capital budget.
Referring to the operating budget, Mr. Fudge stated that adjustments will be required once the
numbers from the province are received as to how the differences will be applied to the
budget. Mr. Fudge noted that the committee has recommended that a portion of any revenue
increase be applied towards the capital budget. Responding to a comment regarding reserves,
Mr. Fudge explained that if Council allocates for a reserve, there needs to be a corresponding
offset/reduction in the operating budget to achieve that outcome.
Mr. Trail commented that the draft budget is conservative and that he expects limited revenue
growth which would be layered into the budget. Council's priorities are intended to cover the
four year mandate and are not necessarily initiatives to be undertaken in 2017.
Discussion ensued with respect to the contingency items in the capital budget. Council will also
be receiving a presentation from the Fundy Region Services Commission and it is expected that
the City will embark on an Arenas Plan study to better understand future anticipated
investment to aging arena infrastructure.
Moved by Councillor Sullivan, seconded by Mayor Darling:
RESOLVED that the Finance Committee approve the 2017 General Fund Capital Budget and
submit to Council for information at the meeting of November 14th and upon completion of
Council's review be recommended for approval at the November 28th meeting.
MOTION CARRIED.
1.3.1 Cedar Point Capital Improvements
Mr. Fudge commented on the referral from Council to consider adding funding for capital
improvements to Cedar Point in the 2017 capital budget. The committee discussed the
concerns from the residents and the proposed solutions. Staff suggested that investment begin
in 2019 as part of the regular infrastructure renewal. The proposal would reinstate the existing
standard and introduce other measures around traffic calming and pedestrian safety, and be
done in a way that respects the input received from the community. There are maintenance
issues that will be addressed in the normal course of business, probably before 2019.
The committee suggested a communications strategy be developed in order to convey
information to the residents of Cedar Point in terms of what can be done.
Moved by Councillor Sullivan, seconded by Mayor Darling:
RESOLVED that the Finance Committee recommend to Common Council that improvements for
the Cedar Point Capital project be referred to the 2019 capital budget; and further that staff
provide a written report to Common Council on November 28th, 2016.
MOTION CARRIED.
1.4 General Operating Budget
1.4.1 Grant Allocation
Finance Committee Meeting
Open Session
November 8, 2016
Mr. Fudge explained that in 2014 Council approved a Community Grants policy and established
a municipal grants program to support community organizations. At that time, Council also
appointed a committee to review and provide recommendations to Council on applications
received through the program.
Moved by Mayor Darling, seconded by Councillor Reardon:
RESOLVED that the Finance Committee recommend to Council to re -appoint a Community
Grants Committee to review grant applications and make recommendations to Council
regarding the allocation of the grant funding envelope.
MOTION CARRIED with Councillor Sullivan voting nay.
1.4.2 Seek Finance Committee's Input regarding Changes to the Budget based on Council's
Priorities
Mr. Fudge suggested that the committee review the submitted document and provide feedback
on any suggested adjustments to the operating budget. A complete discussion will occur at the
November 17th meeting.
Moved by Mayor Darling, seconded by Councillor Reardon:
RESOLVED that the General Operating Budget be received for information.
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1.4.3 Additional Funding to Police for Vehicles
(Deputy Chief G. McCloskey entered the meeting)
In the September 15th draft budget, staff recommended an increase to the police funding
envelope by approximately $550,000 to allow for inflationary and salary increases. The budget
submitted by the police commission essentially aligned with staff's recommendation with the
exception of a $100,000 increase, mostly to do with the funding of vehicles.
Deputy Chief McCloskey indicated that the police department is prepared to agree to staff's
recommendation, adding the concern is that the funding for police vehicles continues to be
deferred.
Moved by Mayor Darling, seconded by Councillor Reardon:
RESOLVED that the Finance Committee recommends that the Police budget remains unchanged
at $24,769,759 or 2.3% increase over 2016, and that the Police Commission resubmits their
detailed budget to match their funding envelope.
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(Deputy Chief G. McCloskey withdrew from the meeting)
1.4.4 Amazeatorium Partnership Proposal
Mr. Fudge stated that the Amazeatorium has requested $10,000 in support for an event at
Harbour Station in April 2017. In lieu of a $10,000 sponsorship, staff recommended several
alternatives that the City could do to support the Amazeatorium event.
Moved by Councillor Reardon, seconded by Councillor Sullivan:
RESOLVED that the Finance Committee recommends that the City of Saint John will offer its
support of the Amazeatorium in the following ways:
Finance Committee Meeting
Open Session
November 8, 2016
1. Host 1 Community Activity Provider booth to promote its Parks and Recreation
programs; P.R.O. Kids and the Playground program;
2. Purchase 1 quarter page ad in the Amazeatorium program to promote the availability of
its P.R.O. Kids program to underprivileged city residents;
3. Highlight the attendance of P.R.O. Kids & the Playground program at the Amazeatorium
through its social media pages; and,
4. Purchase at least 40 tickets to the Amazeatorium which will be distributed to children
living in priority neighbourhoods that would otherwise be unable to afford to attend.
MOTION CARRIED.
1.5 Aging AR Update
Ms. Graham reviewed the submitted report with the committee. The Billing and Collections
department has been diligent in reducing the receivables amount and continue to work with
customers who are in arrears.
Moved by Councillor Reardon, seconded by Councillor Sullivan:
RESOLVED that the report entitled, Water and Sewerage Accounts Receivables — October 2016,
be received for information.
MOTION CARRIED.
Moved by Councillor Sullivan, seconded by Councillor Reardon:
RESOLVED that the Finance Committee recommends Common Council rescind the resolution of
July 20, 2015 regarding the Finance Committee to provide updates to Water and Sewerage
Accounts Receivable to Council on a quarterly basis.
MOTION CARRIED.
Adjournment
Moved by Councillor Sullivan, seconded by Mayor Darling:
RESOLVED that the Finance Committee open session meeting held on Tuesday, November 8,
2016 be adjourned.
MOTION CARRIED.
The Finance Committee meeting held on November 8, 2016 was adjourned at 7:10 p.m.