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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. LTA IQ1[47►[GL1:k]k]1if91 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. LTA IQ1[47►[GL1all allIN91 (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.