2022-08-24 Finance Committee Minutes - Open SessionFinance Committee Meeting
Open Session
August 241h, 2022
MINUTES —OPEN SESSION FINANCE COMMITTEE MEETING
August 24, 2022, AT 2:30 PM
MEETING CONDUCTED BY ELECTRONIC PARTICIPATION
Present: Mayor D. Noade Reardon
Chair: Councillor G. Sullivan
Councillor P. Radwan
Councillor D. Hickey
Regrets: Councillor G. Norton
Also
Present: City Manager J. Collin
Commissioner of Finance and Treasurer K. Fudge
Director Financial Services J. Forgie
Director Financial Services C. Lavigne
Intermediate Accountant Viral Parikh
Commissioner Growth and Community Development J. Hamilton
Commissioner Transportation & Environment M. Hugenholtz
Commissioner Saint John Water B. McGovern
Deputy Fire Chief M. Carr
Director HR K. Shannon
City Clerk J. Taylor
Deputy Clerk P. Anglin (Recording Secretary)
Administrative Officer R. Evans
1. Meeting Called to Order
Councillor Sullivan called the Finance Committee open session meeting to order.
2. Approval of Minutes
2.1 Minutes of July 15, 2022
Moved by Councillor Radwan, seconded by Mayor Noade Reardon:
RESOLVED that the minutes of July 15, 2022, be approved.
MOTION CARRIED.
3. Approval of Agenda
Moved by Radwan, seconded by Mayor Noade Reardon:
RESOLVED that the agenda of August 24th, 2022, be approved.
MOTION CARRIED.
Finance Committee Meeting
Open Session
August 241h, 2022
4. Disclosures of Conflict of Interest
No disclosures.
5. Consent Agenda
5.1 Pre-Aooroval of Bilateral and DMAF Funded 2023 Capital Program Proiects
Moved by Councill Radwan, seconded by Mayor Noade Reardon:
RESOLVED that Members of the Finance Committee:
• Endorse the pre -approval of the proposed 2023 Capital projects noted in Appendix A & B attached to
the Finance Committee Report dated August 19, 2022 and titled Pre -approval of Bilateral and DMAF
Funded 2023 Capital Program Projects, and
• Recommend the pre -approval of the proposed 2023 Capital projects at the next meeting of Council
as noted in Appendix A & B attached to the Finance Committee Report dated August 19, 2022, and
titled Pre -approval of Bilateral and DMAF Funded 2023 Capital Program Projects.
MOTION CARRIED.
6. Business Matters
6.1 2022 SOTI Report
Commissioner McGovern introduced the 2022 SOTI report that provides the Finance Committee with the
current state of the city's infrastructure as well as the required future investments needed to maintain
the existing infrastructure for the five (5) service areas:
• Saint John Water (part of Utilities & Infrastructure)
• Transportation & Public Works Services
• Fire & Emergency Management Services
• Growth & Community Services
• Strategic & Corporate Services
The City's first SOTI report was introduced in 2016 and a subsequent SOTI report was presented in 2018.
Manager S. Yammine and M. Benson a Partner with DCA Consulting highlighted replacement values and
measures to improve assets without replacement. The Long -Term Capital forecast was provided to
maintain the assets over 20 years.
Moved by Mayor Noade Reardon, seconded by Councillor Radwan:
RESOLVED that the submitted presentation 2022 SOTI Report be received for information.
MOTION CARRIED.
6.2 Capital Budget Policy Updates
Referring to the submitted report, CFO Fudge stated the 2022 SOTI Report presents an improvement in
the City's infrastructure deficit, and it is recommended that the Capital Budget Policy be updated to
change the split between Capital Renewal and New Capital from the current 85%/15% to 80%/20%. This
will also be updated in the City's revised Long Term Financial Plan.
Moved by Mayor Noade Reardon, seconded by Councillor Radwan:
RESOLVED that the Finance Committee recommend that Common Council approve the amended policy
FAS-005 Capital Budget Policy as presented.
MOTION CARRIED.
6.3 2023/2024 Draft General Fund and Utility Fund Capital Budgets
Referring to the submitted report Commissioner Fudge introduced the proposed 202312024 draft
General Fund and Utility Fund Capital Budgets. The proposed 2023 and 2024 capital budget for the
General Fund is $65,821,895 with City Share being $29,570,647 and other share being $36,251,248.
The proposed 2023 and 2024 capital budgets for the Utility Fund is $28,222,277 with the Utility's
Share being $9,908,556 and other share of $18,313,721.
Finance Committee Meeting
Open Session
August 241h, 2022
These budgets have significant approved funding from both Federal and Provincial levels of
government along with several funding applications submitted for additional funding.
The City's share of the 2023 and 2024 proposed
from capital from operating ($5.3M in 2023
($17,970,647 over 2023 and 2024).
Draft General Fund Capital budget will be funded
ind $6.3M) with the balanced being borrowed
The Utility Budget will be funded with $9,908,556from the operating budget and $18,313,721 coming
froma combination of reserves and funding from other sources.
The projects selected for the capital program borrowing have a useful life of approximately 15 years
or more.
Moved by Councillor Hickey, seconded by Councillor Radwan:
RESOLVED that the Finance Committee receive and file the 2023 and 2024 Draft General Fund and Utility
Fund Capital Budgets as presented.
MOTION CARRIED.
6.6 YTD Results
Referring to the submitted presentation entitled July 31, 2022, Unaudited Financial Results General Fund
and Utility Fund Director C. Lavigne summarized:
• the service areas are continuing to address inflationary pressures throughout 2022 and are
confident the risk will mitigate for the balance of the fiscal year.
• Staffing shortages and recruitment challenges will likely continue for the balance of the year.
• The City also faced a challenging Winter season thus far in 2022 as evident in the year-to-date
results and will be closely monitored as the City moves into winter season.
Moved by Councillor Radwan, seconded by Councillor Hickey:
RESOLVED the Finance Committee receive and file the report as presented.
MOTION CARRIED.
7. 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 August 24, 2022, was adjourned at 4:06 pm.
Respectfully submitted,
Patricia Anglin, Recording Secretary