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2023-08-18 Finance Committee Agenda Packet - Open SessionCity of Saint John Finance Committee - Open Session AGENDA Thursday, August 24, 2023 1:45 pm Meeting Conducted by Electronic Participation Pages 1. Call to Order 2. Approval of Minutes 2.1 Minutes of June 28, 2023 1 - 3 3. Approval of Agenda 4. Disclosures of Conflict of Interest 5. Consent Agenda 6. Business Matters 6.1 Thermal Interconnect Capital Project Funding Application 4-8 6.2 Disaster Mitigation and Adaptation Funding Application - Lantic Sugar Site 9 - 22 6.3 Fair Taxation Report Update 23 - 45 6.4 Shape your Budget Public Engagement Results 46 - 108 6.5 2024 Draft Operating Budget Presentations 109 - 119 6.5.1 Saint John Fire Department 120 - 128 6.5.2 Growth and Development Services 129 - 141 6.5.3 Saint John Transit Commission 142 - 152 6.5.4 Saint John Water 153 - 160 Adjournment Finance Committee Meeting Open Session June 28, 2023 MINUTES — OPEN SESSION FINANCE COMMITTEE MEETING JUNE 28, 2023 AT 1:15 PM MEETING CONDUCTED THROUGH ELECTRONIC PARTICIPATION Present: Chair, Councillor G. Sullivan Mayor D. Noade Reardon Councillor P. Radwan Councillor G. Norton Councillor D. Hickey Also Present: Chief Administrative Officer B. McGovern Director Financial Services C. Lavigne General Counsel M. Tompkins Commissioner Human Resources. S. Hossack Fire Chief K. Clifford Commissioner Utilities and Infrastructure I. Fogan Director Growth & Community Services A. Poffenroth Commissioner Transportation & Environment M. Hugenholtz Chair Police Commission T. Kelly Police Chief R. Bruce Director Legislative Services / City Clerk J. Taylor Deputy Clerk P. Anglin Administrative Assistant A. MacLean Meetina Called to Order Councillor Sullivan called the Finance Committee open session meeting to order. 2. Approval of Minutes 2.1 Minutes of May 31, 2023 Moved by Mayor Noade Reardon, seconded by Councillor Norton: RESOLVED that the minutes of May 31, 2023, be approved. MOTION CARRIED. 3. Approval of Agenda Moved by Mayor Noade Reardon, seconded by Councillor Radwan: RESOLVED that the agenda of June 28, 2023, be approved. MOTION CARRIED. 4. Disclosures of Conflict of Interest No disclosures. 5. Consent Agenda 6. Business Matters 6.1 Deloitte Audit Results Finance Committee Meeting Open Session June 28, 2023 Referring to the submitted report, The City of Saint John Report to the Finance Committee on the 2022 Audit, Deloitte auditors Stephen Lund, Jeremy Mallais, and Alena Gidney presented the Deloitte audit results. 6.2 Consolidation and Financial Statements Walk Through Referring to the submitted report, 2022 Audited Consolidated Financial Statements, Director Lavigne provided an overview. Moved by Mayor Noade Reardon, seconded by Councillor Hickey: RESOLVED that: • Finance Committee approves the audited 2022 Consolidated Financial Statements • Finance Committee approves the 2022 statement of revenue and expenses of the Saint John Trade & Convention Centre • Finance Committee approves the 2022 City of Saint John Trust Funds financial statements • Finance Committee recommends that Common Council approve the 2022 Consolidated Financial Statements as presented by staff as well as the 2022 TCC statement, and 2022 Trust Funds financial statements. MOTION CARRIED. The meeting paused and convened for an in -camera session to provide an opportunity for discussion between the Council Committee Members and auditors. The open session reconvened at 1:55 p.m. Moved by Mayor Noade Reardon, seconded by Councillor Radwan: RESOLVED that the Finance Committee recommends the 2022 Audit Results be referred to Common Council for adoption. MOTION CARRIED. The Mayor withdrew from the meeting at 2:52 p.m. and re-entered the meeting at 3:06 p.m. 6.3 2024 Draft General Fund Operating Budget Referring to the submitted report 2024 Draft General Fund Operating Budget, CAO B. McGovern, senior staff, and Police Chief R. Bruce presented the service area budgets. Moved by Councillor Radwan, seconded by Councillor Hickey: RESOLVED that the submissions for 2024 Draft General Fund Operating Budget be received for information. MOTION CARRIED. 6.4 2024 Operating Budget - Public Engagement (Shape Your Budget) (Verbal Update) Director Lavigne advised the Shape Your Budget website is live and will have an official launch tomorrow. 7. 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 June 28, 2023, was adjourned at 4:00 pm. Respectfully submitted, Patricia Anglin, Recording Secretary 1 Finance Committee Meeting Open Session June 28, 2023 Qm'mu YDH�o FINANCE COMMITTEE REPORT Report Date August 18, 2023 Meeting Date August 24, 2023 Service Area Finance and Administrative Services Chairman Sullivan and Members of Finance Committee SUBJECT. Thermal interconnect between the Canada Games Aquatic Centre and the Market Square Funding Application. OPEN OR CLOSED SESSION This matter is to be discussed in Finance Committee Open Session. AUTHORIZATION Primary Author Commissioner/Dept. Head Chief Administrative Officer Samir Yammine Ian Fagan J. Brent McGovern RECOMMENDATION It is recommended the Finance Committee Direct staff to apply to the Federation of Canadian Municipalities (FCM) under the Green Municipal Fund (GMF) for Thermal interconnect between the Canada Games Aquatic Centre and the Market Square Project. EXECUTIVE SUMMARY The purpose of the report is to direct staff to apply to the Federation of Canadian Municipalities (FCM) under the Green Municipal Fund (GMF) for Thermal interconnect between the Canada Games Aquatic Centre and the Market Square Project M&C 2023-192 STRATEGIC ALIGNMENT The proposed project is clearly aligned with the following City plans, policies, programs, and practices: City of Saint John Corporate GHG and Energy Action Plan to reduce GHG emissions by 30% by 2025 and achieve carbon neutral by 2040. ➢ City of Saint John Climate Change Action Plan. ll sa ➢ City Council Priorities (2021-2026) Green: "We value the environment" and Perform: "We value the best use of our resources." REPORT Background In the past 2 years, the City of Saint John has been actively working with Hardman Group Limited (HGL), Canada Games Aquatic Center (CGAC) and various consultant teams to help move forward the Thermal interconnect between the Canada Games Aquatic Centre and the Market Square using waste energy surplus (i.e., rejecting heat) from the Market Square. The majority of the energy surplus is available during the majority of the spring/fall months and throughout the summer months. A thermal interconnect would allow the CGAC to use the waste heat from the Market Square energy centre to assist in heating the pool, preheating domestic hot water and in providing building heating. It has been estimated that 6,850 GJ of energy (85% of the total natural gas of the CGAC) of thermal energy could be shared with the CGAC that is otherwise rejected through the Market Square cooling towers. Proposed Project Description and Tendering Process The City in collaboration with the consultant teams, various suppliers, and contractors, HGL and CGAC staff has conducted a detailed energy and financial analysis as well as data collection to finalize the design concept and quantify the financial, economic, and social benefits of the project as well as to provide a class C opinion of probable cost. The proposed project will include the construction of a new distribution loop across Saint Patrick to interconnect the Market Square energy center with the Canada Games aquatic Center (CGAC) boiler plant and facilitate energy transfer through low temperature heating water (see attached drawing). A new pump set would be installed in the Market Square to facilitate the energy transfer through the new underground piping. The new piping would be interconnected with the existing low temperature heating loop serving the Market Square and draw energy from the loop when the loop has been deemed "BTU surplus". A heat pump system will be installed at the CGAC boiler plant to increase the loop temperature and distribute thermal energy to the various loads in the building. The proposed project consists of the following category, each category will be tendered separately to speed up the process due to supply chain issues as well as meet the federal government Low Carbon Economy Fund deadline by 31 March 2024. 5 -3- 1. Supply of mechanical equipment. This category consists of the supply of the following equipment: High Temperature Heat Pump, Heat Exchangers (HX-1,2,3) and eight pumps. The total cost of this category is $450,000 including 5% contingency. Delivery of the pumps and Heat exchangers are 12-14 weeks. However, the delivery of the Heat Pump is 24 weeks, which will need to be tendered separately. The supply of mechanical equipment has been awarded and is on order. 2. Installation of Mechanical Equipment. This category will be tendered separately and will start once the equipment has arrived. The total cost of this category is $456,315 including 15% contingency. Work is underway to complete the tender package. 3. Piping Installation This category consists of constructing a new buried distribution loop across Saint Patrick to interconnect the Market Square energy center with the Canada Games aquatic Center (CGAC) boiler plant and facilitate energy transfer through low temperature heating water. This work is underway to consult with the Public Work, Liberty Utilities, and telecommunications. Schematic drawing and tender package are 90% complete. Work will be completed during the weekend to minimize disruption to the traffic and will take a few days to complete. Total cost is $480,125 including 15% contingency. Financial and Energy Analysis The City has conducted in collaboration with the consultant teams a detailed financial and energy analysis to determine the financial and long-term viability of the project. The project will receive funding from the Low Carbon Economy Fund (40%) and NB Power Energy Efficiency as well as the city is in the process of submitting an application from FCM under the GMF category, to further reduce the city capital investment. X -4- Table 1 provides the financial and energy saving analysis on the project. Please refer to the attachments for more detailed information. Table 1- Thermal interconnect between the CGAC and the Market Square Financial and Energy Savings Analysis Opinion of Probable Cost , Class C Category Cost ( Excluded HST) Icomments Supply of mechanical equipment. $ 450,000 Cost include 5%contingency. Equipment are on order Installation of Mechanical Cost include 15%contingency. Work is underway to complete the tender and Equipment. $ 456,315 drawings Cost include 15% contingency. 90% of the tender package and drawings have Piping Installation/Civil Works $ 480,125 been completed. OH&P, Permits, etc. $ 77,009 Soft Cost $ 231,028 Total $ 1,694,477 Total Cost with HST Rebate $ 1,739,870 Energy Savings Calculations Category Cost Saving/Additional Icomments Operating and Energy costs for the heat pumps and other mechanical Additional Electricity Usage $ (69,861) equipment Natural Gas Saving $ 156,829 Carbon Tax $ 12,156 $70/teCO2 Total Saving $ 99,124 Total Saving with HST Rebate $ 101,779 External Funding/Energy Saving Category I Incentive Icomments Low Carbon Economy Fund (LCEF) $ 695,948 LCEF is 40%of the total eligible cost. Project to be complete by March 31, 2024. NB Power Energy Incentive $ 200,000 Total $ 895,948 City Capital Share $ 843,922 Fund to be charged to the General capital Budget under 20FC06 Simple Payback $ 7.85 Average Life expectancy of the Project is over 25 Years Minimum Possible GMF Grant $ 434,960 City is in the process of submitting an application Total Grant $ 1,330,908 City Budget 20FC06 $ 1,464,000 City Capital Share $ 133,092 Depending on GMF approval Simple Payback with GMF $ 1.31 Average Life expectancy of the Project is over 25 Years Minimum Economic, Social and Environmental Benefits The proposed projects benefits are as follows: ➢ Reduce Annual Operating Costs by over $100,000. ➢ Reduce GHG emissions by 174 tCO2e annually. ➢ Reduce the Market Square HVAC energy cost by $15,000 Annually. ➢ Enable the CGAC to be carbon neutral in the next 5 years. ➢ Reduce dependency on natural gas. ➢ Increase revenue to Saint John Energy by electrifying the heating system and displacing natural gas. ➢ Encourage other adjacent buildings to follow the CGAC proposed project. ➢ Show the city is taking a leadership role in climate change management. ➢ Achieve the City of Saint John Climate Change Action Plan Objectives 7 SIE SERVICE AND FINANCIAL OUTCOMES The total estimated cost to complete the proposed project will be $1,739,870 including the HST Rebate. The proposed estimated cost is a class C and has 5%- 15% contingency including OH&P and soft cost (15%). Cost of this project is funded under the Low Carbon Economy Fund (LCEF), NB Energy Efficiency Program Funding and the City's General Capital Program. The analysis is as follows: Capital Budget: $1,464,000 Project Net Cost: $1,739,870 LCEF: $695,948 NB Power Energy Efficiency: $200,000 Variance (Under Budget): $620,078 Simple Payback: 7.85 Year. The city will be applying for additional funding under the FCM Community Building Retrofit (CBR). The proposed funding if successful will enable the city to receive 25% of the total cost in grant or $434,960. The total city cost share will be reduced to $133,092, if the city was able to secure GMF of $434,960, resulting in 1.3 Year simple payback. IIPIl►jrd:7�1►TL���:I�:�`I�:,�l[��1:7��F�1►�I���rC1�:C�1��7�:�� The City of Saint John Utilities and Infrastructure Services and Supply Chain Management have reviewed the proposed project NA Qh, YDHio FINANCE COMMITTEE REPORT Report Date August 16, 2023 Meeting Date August 24, 2023 Service Area Saint John Water Chairman Sullivan and Members of Finance Committee SUBJECT: Application to Disaster Mitigation and Adaptation Fund OPEN OR CLOSED SESSION This matter is to be discussed in Finance Committee Open Session. AUTHORIZATION Primary Author Commissioner/Dept. Head Chief Administrative Officer Ian Fagan Ian Fagan J. Brent McGovern RECOMMENDATION Direct staff to pursue an application to Disaster Mitigation and Adaptation fund to enable the development of the former Lantic Sugar Site for recreation and possible commercial/recreational development and to add storm water capacity to the Central Peninsula Neighbourhood system. I�:���►j�PI�1►luluGli7 The former Lantic Sugar site is vacant, not suitable for development and not accessible to residents without necessary adaptation measures to deal with storm surges and sea level rise. Raising the site from the current average elevation of 4.85m to 5.5m will enable the City to redevelop the site to include commercial/institutional development and a green area for nonmotorized trail for active transportation and recreation use by the City's residents and visitors. The site is primely located at the southern tip of the central peninsula and adjacent to Tin Can Beach to where Harbour Passage is currently being extended. The project scope also includes an additional storm water outfall as the separation of storm water continues in the central peninsula requiring increased capacity I�: i� I [�1►ley. i�Y�1�►j�L�IJJ N/A 9 sa STRATEGIC ALIGNMENT This initiative aligns with the Council priorities of; GREEN by adapting and mitigating the risk on City infrastructure with climate change, BELONG by improving recreation programming, facilities and infrastructure, and GROW by creating opportunities to attract and grow businesses including development of the waterfront. REPORT The former Lantic Sugar site is a waterfront lot located on the southwest tip of the central peninsula at the end of Charlotte street, adjacent to Sydney Street to the East, Vulcan Street and Lower Cove Terminal to the north and Tin can beach to the east. The map below from the Central Peninsula Secondary Plan shows its location in reference to other significant landmarks in the area. In addition to the landmarks noted, the land to the north of Rainbow Park is the future home of a new K-8 school for the South End. The City is systematically making investments to protect City infrastructure at risk from Climate Change. In addition to investments in the Central Peninsula, the City has and continues to make investments in West, East and North ends of the City. 10 am The map below is taken from The Climate Change Adaptation Plan shows what areas of the Central Peninsula are vulnerable to extreme storm surges due to sea The portion of the site to be raised (in green below) is approximately 3 hectares and lies to the south west of the abandoned CN rail line. The Lantic Site to north of the rail line is significantly higher elevation and not on the vulnerability map. 0.1 Transportation modes to the site as laid out in the Central Peninsula Neighbourhood Plan and supported by MOVESJ includes adjacent access to Harbour Passage on Sydney Street. As indicated, a road diet for Broad Street and bike routes on Broad and Sydney are planned for when renewal of those streets occur. Also reconstruction of Charlotte into "Complete Street" is planned in the next fee years (2024-2026). 11 -4- Proposed Complete Street -- Harbour Passage - - - - Bike Infrastructure ---- Pedestrian Improvements Road Diet Existing Harbour Passage Bike Infrastructure Transit Routes , , , , , , , s From the Central Neighbourhood Secondary Plan we find The South Waterfront Growth Concept drawing which aligns the DMAF application and work as outlined in this report. -- ter•+-- r--.r-+.�..�,•-,.--�.r—�. ��� 12 -5- The Secondary Neighbourhood plan also contains the following policies and procedures as shown below. Policies And Proposals Council Shall: SW-1 Develop the Lantic Sugar Refinery site as a new recreation and entertainment site Proposals: 1. Reposition the existing paved surface to host large temporary events such as concerts and festivals. 2. Promote the Northwest section of the site as an opportunity site for a new commercial or recreation facilities. 3. In collaboration with the Atlantic Coastal Action Program Saint John, naturalize the southern portion of the site and create a new destination Park on the waterfront. 4. Maintain public access to the south waterfront as the site is redeveloped. In renderings prepared for the application, the following were concepts were developed for illustration purposes only. 13 9rM Should the City be successful in its application, consultation would take place prior to any design work beginning. As outlined in the Policies and Procedures of the Secondary Plan, green space is planned for the most southwest portion of the site with a lookout to Partridge Island. The Secondary Plan also includes using the portion of the site to the North of the CN line as a space for concerts and festivals. The work on that portion of the site is not included in this application but the green space included in the application could be planned with use as a temporary concert site in mind. SERVICE AND FINANCIAL OUTCOMES The total cost to transform the site is approximately $10,420,000 with financial contribution reaching $4,168,000 (if successful) from the federal government under the Disaster Mitigation and Adaptation Fund (DMAF). The city contribution will be approximately $6,252,000. The project would be completed/funded over several budget cycles from 2025 to 2030. Approximately $6,200,000 of the overall total is attributed to the cost of the site raising and approximately $4,220,000 is associated with construction of the storm water sewer and outfall. The storm water investment is a necessary investment for the storm water system in the Central Peninsula even without converting the site to a development/green space ready site. The $6,000,000 investment would protect City infrastructure from damage from storm surge and enable development of a prime waterfront property with direct sightlines to Partridge Island and the Bay of Fundy. 14 -7- Site raising/greening Storm Water Infrastructure Sub Total Potential DMAF Funding City Contribution $6,200,000 $4,220,000 $10,420,000 $4,168,000 $6,252,000 Tota 1 $10,420,000 INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS Finance and Growth have been consulted in the development of this report. ATTACHMENTS None 15 r 1-3 kl-A Lantic 9 a it a v, V L Disaster Mitigation Adaptation Fund Y Lantic Sugar Site Location Trinity Royal Heritage Conservation Area 17 Peak_ FIood Water_L.elek_2018 5-73nr DRAFT Zone 12 Current Higt&g High Water Large Tide;FIK LT): 4.6 m CGVD28 HHM,r + 1 m: 5.6 m CGV028 HHWLT t 2 rn; 6,6 m CGV028 (SaxW Gale Ue €vent) 21 DO 1-100 yeiw event: 6.8 m CGV020 Neighbourhoods p HeIgIhk n w(ds Vulnerability to storm surge Proposed 1 1 1 Complete Street - - - - Harbour Passage - - - - Bike infrastructure - - - - • Pedestrian Improvements Road ❑iet Existing Harbour Passage Bike Infrastructure Transit Routes { , r y l 1 • t 1 1 + { 1 { { 1 ! i { ! � 1 ! { ! t � � 1 - { t l , 1 , , 1 1 , 19 Central Peninsula Neighbourhood Secondary Plan Policies And Proposals Council Shall: S-1 Develop the Lantic Sugar Refinery site as a new recreation and entertainment site Pr❑posals: 1. Reposition the existing paved surface to host large temporary events such as concerts and festivals. 2. Promote the Northwest section ❑f the site as an opportunity site for a new commercial or recreation facilities. 3. In collaboration with the Atlantic Coastal Action Program Saint John, naturalize the southern portion of the site and create a new destination Park on the waterfr❑nt. 4. Maintain public access to the south waterfront as the site is redevel❑ped. li 20 Sp New Use 21 Financials Financials Site raising/greening Storm Water Infrastructure Sub Total Potential DMAF Funding City Contribution Total S6,200,000 • Funding and work could spread s4,220,000 over 5 years s10,420,000 .Consideration for future capital s4,168,000 budgets if approved $6,252,000 .Could unlock land for potential s10,420,000 development range of 50M to loom • Future home for music festivals 22 ru� r iA r w : I - - Fair Tax Benchmarking Update August 241"12023 SAINT JOHN 23 Background As part of next steps in the Local Governance Reform (LGR) initiative, a commitment was made to host a Finance Summit in the fall of 2023. The summit will take place on Thursday, September 21, 2023, at the Delta Fredericton Hotel. The summit will bring together financial representatives and elected officials from local governments (two participants per local government), the chairs of the Rural District Advisory Councils, and CEOs of the regional service commissions. The summit will provide a forum to reflect on the financial and taxation challenges and opportunities associated with local governance reform. Participants will also have an opportunity to provide their feedback on possible next steps and to identify new and emerging priorities. 24 Background The City engaged Harry Kitchen to update 4 items contained in the 2017 Report "Municipal Property Tax Issues in the City of Saint John': 1. Should the Province vacate the property tax system 2. Municipal Control over Property Tax Classes and Rates 3. Non -Residential, Commercial, Heavy Industrial Multiplier Benchmarking 4. Any change in assessment practices for Machinery & Equipment across Canada Harry Kitchen co-authored the 2017 Fair Tax report with Enid Slack. Harry Kitchen is one of Canada's leading experts on municipal government finance and taxation. Over the past twenty years, he has completed more than 100 articles, reports, studies, and books on issues relating to local government expenditures, finance and governance in Canada and abroad. In addition, he has served as a consultant or advisor for several municipal and provincial governments in Canada, the federal government, foreign governments in Russia and China, and some private sector institutions. 25 .••,•,�.�,•;.•:�115hould the Province vacate the property System? . 0 0 0 0 0 0 W 0 0 • • • 0*04000 •••• ••••••• &•••• ••� •: •: ••••:•••• •r•� • • • • • • • • • ••~ • •• •� •i •40 •••�•• �•• ••••••••••i • •••• i ► • • • • • • • •• • 04 ►•••••••••••••• 00 ••• 1•0•••••••••• j•••• M• • • • • •100000 •••••~ I~� • • • • i• i• •••••••••• •� �� • • •• • •• �• g• •••••• •• •• • • • • • •• • 00 ••N �• • •• •••• ••••••••••• • '. •� •� •: •� 0 0 ••� �! •••• • a �• • • • . • • •• ••••••• • '. '. •. •• ••• ••••• 01 �� • '. '.'• ••• ••••••• • • 40 �•. •'•••• •® ••• Is there an argument for reducing or eliminating property tax? the provincial "in short, the answer is yes. This response is driven by the types of services provided by provinces versus those provided by municipalities. Provinces, in practice, are responsible for providing a range of services, almost all of which are income redistribution in nature and/or generate significant spillovers, For these services (education is an example), their funding should come from provincial income and sales taxes, not provincial property taxes." "Municipalities, on the other hand, are primarily responsible for services that provide benefits to the local community. By and large, these services are not income redistributional in nature nor do they generate spillovers. Here, the property tax is an ideal tax. Further, eliminating provincial property taxes would reduce the pressure on the municipal property tax and increase transparency and accountability, because municipalities would be responsible for the entire property tax bill. Indeed, it has been suggested that, if provincial governments abandoned the property tax, municipalities would have sufficient revenues to meet expenditure needs and would not have to ask for additional funds and tax tc&ls." Are provinces moving away from provincial property taxes? "Other than Newfoundland and Labrador which does not have a province wide property tax, all other provinces have one. In only three provinces has there been any notable change over the past few years. In Manitoba, the province is in the process of removing all education jundingfrom the property tax. This is being achieved through the use of education tax rebates. In Quebec in 2020, the province moved away from local property tax funding of education to a province wide uniform property tax rate for funding schooling. In New Brunswick, the province in 2023 reduced the provincial property tax rate. " 27 2. Municipal Control over Property Tax Classes and Rote. "How does NB compare to other Provinces with respect to control over Property Tax Rotes?" New Brunswick 3 Tax rate set locally. Non-residential municipal tax rate limit of 1.4 to 1.7 residential rate by Province. Newfoundland 2 Tax rates are set locally. The province places no restrictions on tax rates. Nova Scotia 3 Tax rates are set locally. The province places no restrictions on tax rates. Prince Edward Island 2 Tax rates are set locally. The province places no restrictions on tax rates. Ontario 7 Tax rates set locally with Provincial Upper Limits. Quebec 4 Tax Rates Tax rates are set locally. The province places no restrictions on tax rates. Manitoba 10 Tax rates are set locally. The province places no restrictions on tax rates. Saskatchewan 8 & subs Tax rates are set locally. The province places no restrictions on tax rates. Alberta 4 incl. M&E Tax rates set locally with Provincial Upper Limits. British Columbia 9 Tax rates set locally with Provincial Upper Limits. 3. Benchmarking Tax Ratios Table 3: Municipal Tax Ratios, 2015 and most recent year Commercial Industrial Major/large industrial City 2015 Recent 2015 Recent 2015 Recent Saint John, New Brunswick 1.5 1.7 1.5 1.7 1.5 1.7 Fredericton, New Brunswick 1.5 1.7 1.5 1.7 1.5 1.7 Moncton, New Brunswick 1.5 1.64 1.5 1.64 1.5 1.64 Sydney, Nova Scotia 2.49 2.38 2.49 2.38 2.49 2.38 St. John's, Newfoundland 3.24 3.55 3.23 3.55 3.23 3.55 Strathcona County, Alberta 1.98 2.20 1.98 2.20 1.98 2.20 Regina, Saskatchewan 1.51 1.46 1.51 1.46 1.51 1.46 Prince George, BC 2.05 2.50 3.30 5.08 6.02 9.80 Sarnia, Ontario 1.63 1.63 2.05 2.05 3.00 3.00 Sault Ste. Marie, Ontario 2.16 2.10 2.99 4.52 5.31 8.02 Greater Sudbury, Ontario 2.14 1.91 3.10 3.66 3.52 4.25 29 4. Has there been any change in the taxation of M&E over the past few years? • At one time, every province taxed M&E, but concerns over the cost impact on the manufacturing sector a few decades ago led to many provinces removing or partially removing it from the property tax base. • Property assessment and taxation of M&E depends on the definition of machinery and equipment as recorded in specific regulations and the way in which it is interpreted or negotiated in its application. See Table 4 of report. • Except for some relatively minor adjustments in Alberta, there has been very little change in the assessment and property tax treatment of M&E over the past decade. 30 • Finance Committee receive and File the Report • Finance Committee direct staff to include the Harry Slack Update Fair Tax memo as a supporting document at the Finance Summit in Fredericton on September 21, 2023. • Finance Committee endorse: • Province vacate property tax or provide offer more tax room to municipalities (Harry Slack Report) • Province support expert panel recommendations for equalization • Province remove limits in legislation on property tax multipliers • If removal of barriers is not possible, Province offer more flexible fairness limits (As benchmarked in Harry Slack Report) • Municipalities obtain control setting rates and classes of customers 31 Q--)- SAINT JOHN Update of 2017 Report July 14, 2023 Harry Kitchen This update covers four issues from the 2017 Report on "Municipal Property Tax Issues in the City of Saint John" by Harry Kitchen and Enid Slack. These are: • Province vacating the property tax system; • Municipal Control over Property Tax Classes and Rates; • Non -Residential, Commercial, Heavy Industrial Multiplier Benchmarking; and • Updates with respect to how Machinery and Equipment is assessed across the country or defined. A. Are Provinces Vacating the Provincial Property Tax? This discussion is divided onto two parts. First, is there an argument for reducing or eliminating provincial property taxes? Second, are any provinces moving away from their reliance on provincial property taxes? Is there an argument for reducing or eliminating the provincial property tax? In short, the answer is yes. This response is driven by the types of services provided by provinces versus those provided by municipalities. Provinces, in practice, are responsible for providing a range of services, almost all of which are income redistributional in nature and/or generate significant spillovers,' For these services (education is an example), their funding should come from provincial income and sales taxes, not provincial property taxes.2 Municipalities, on the other hand, are primarily responsible for services that provide benefits to the local community. By and large, these services are not income redistributional in nature nor do they generate spillovers. Here, the property tax is an ideal tax.3 Further, eliminating provincial property taxes would reduce the pressure on the municipal property tax and increase 1 Douglas Auld and Harry Kitchen, Financing Education and Training in Canada, second edition (Toronto: Canadian Tax Foundation, 2006). Z Adam Found and Peter Tomlinson, Hiding in Plain Sight: The Harmful Impact of Provincial Business Property Taxes (Toronto: C.D. Howe Institute, 2012) s Harry Kitchen, Enid Slack and Tomas Hachard, "Property Taxes in Canada: Current Issues and Future Prospects" in MFG Perspectives Series, Number 27, fall 2019, University of Toronto: available at http: //munkschool.utoronto. ca/imfg/resources/ Joan Youngman. A Good Tax. Lincoln Institute of Land Policy, Cambridge, Mass. 2016. 32 transparency and accountability, because municipalities would be responsible for the entire property tax bill. Indeed, it has been suggested that, if provincial governments abandoned the property tax, municipalities would have sufficient revenues to meet expenditure needs and would not have to ask for additional funds and tax tools.4 Are provinces moving away from provincial property taxes? Table 1 lists the provinces with a province wide property tax and whether or not there is a movement to reduce the reliance on this tax. Other than Newfoundland and Labrador which does not have a province wide property tax, all other provinces have one. In only three provinces has there been any notable change over the past few years. In Manitoba, the province is in the process of removing all education funding from the property tax. This is being achieved through the use of education tax rebates. In Quebec in 2020, the province moved away from local property tax funding of education to a province wide uniform property tax rate for funding schooling. In New Brunswick, the province in 2023 reduced the provincial property tax rate. Table 1: Provincial property taxes (sometimes called provincial education taxes) Newfoundland There is no provincial property tax and never has been. & Labrador Prince Edward There is a provincial property tax that has existed for a number of years. Island Nova Scotia There is a provincial property tax that has existed for a number of years. New There is a provincial property tax. Its rate has recently been reduced. Brunswick Quebec Since July 2020, the provincial government has set a uniform province wide property tax rate. Ontario A provincially set property tax rate has been in place for a number of years, The rate is the same for all residential properties across the province. Different rates apply to non- residential property categories. Manitoba There is a provincial property tax rate that is the same for all municipalities, although it is diminishing. In 2021, the province announced that it would deliver provincial property tax 4 Bev Dahlby and Melville McMillan, "What is the role of property and property -related taxes? An assessment of municipal property taxes, land transfer taxes, and tax increment financing," in Enid Slack, Lisa Philipps, Lindsay M. Tedds, and Heather L. Evans (eds.), Funding the Canadian City, pp. 45-73 (Toronto: Canadian Tax Foundation and Institute on Municipal Finance and Governance, 2019). 2 33 rebates over the ensuing few years with the intention of eliminating the provincial property tax. Saskatchewan For a number of years now, the province has set a uniform property tax rate for each property class. Alberta The province sets a property tax rate and has done so for years. British Each year the province sets a residential property tax rate for each school district and a non - Columbia residential property tax rate for each non-residential property class. B. Municipal Control over Property Tax Classes and Rates Table 2 highlights the assessment categories and municipal tax rate structure (provincial property tax rates were high lighted in Table 1) in each province. As for municipal control, the following may be highlighted: • Municipalities have no control over assessment. In every province, property assessment categories are established by the assessment act. Since assessment is a provincial responsibility, it is the province that determines the number of property classifications. In provinces where a number of assessment classes exist, not all of them are used in every municipality. The number will be driven by the types of properties that are located in the municipality. • In some provinces, municipalities are free to set their own property tax rates without provincial restrictions (Newfoundland and Labrador, Prince Edward Island, Nova Scotia, Quebec, Manitoba, and Saskatchewan) whereas in other provinces, the provincial government directly controls or limits tax rates on some property classes. For example; o In New Brunswick, a municipality sets its own property tax rate for residential property and the non-residential (commercial and industrial) municipal tax rate must be 1.4 to 1.7 times the residential rate. o In Ontario, Alberta and British Columbia, there are restrictions (upper limits) on the amount by which non-residential tax rates can exceed the residential rate. 3 34 Table 2: Assessment Categories and Munici al Tax Rate Structure Province Assessment Categories Municipal Tax Rates Newfoundland Two categories: Tax rates are set locally. The province places and Labrador - Residential, no restrictions on tax rates. - Commercial (includes commercial, Uniform rates apply everywhere except for St. industrial and institutional). John's where there may be 2 rates — one for residential and one for commercial. Prince Edward Two categories: Each municipality sets two municipal property Island - Commercial (excludes farm property and taxes - one for commercial assessment and buildings, nurseries and market gardens, another for non-commercial assessment. There and timberland). and are no provincial restrictions on these rates. - non-commercial (residential, institutional, etc.). Nova Scotia Three categories: Two municipal tax rates are set locally — one - Residential, for residential and one for commercial with the - Commercial (everything that is not commercial rate exceeding the residential rate residential or resource), in every municipality. - resource which includes farm properties, There are no provincial restrictions on these forest properties if less than 50,000 acres, rates. community buildings used for commercial fishing boats, and the land of municipal water utilities. New Three categories: Each municipality sets its own local property Brunswick tax rate, but the non-residential municipal tax - Residential rate must be 1.4 to 1.7 times the residential - non-residential which is commercial and municipal tax rate — this is a provincial industrial. - heavy industrial requirement. Quebec Properties are not differentiated except for The general property tax rate is set by local farms, natural gas, electricity, and councils without provincial restrictions. They telecommunications systems. have the opportunity to levy up to 4 tax rates: residential up to 5 dwellings; residential with 6 or more dwellings; non-residential buildings; vacant land using municipal services. Ontario There are seven main property classes: Municipalities are permitted to set different tax - residential/farm, rates (related to the residential rate) for the - multi -residential, different property categories although - commercial, provincially set ranges of fairness limit a - industrial, municipality's flexibility in setting differential - pipelines, rates. By legislation, farm buildings and - farmlands, agricultural land must be taxed at 25 percent - managed forests. of the residential rate as must managed forests. In addition, the province permits Farmhouse and one acre of land are taxed at municipalities to adopt additional classes the residential rate. Municipalities may also including new multi -residential, office choose to apply differential rates to any of the buildings, shopping centers, parking lots, following optional classes; new multi - residential, shopping centres, office towers, 35 large industrial properties, sports facilities parking lots and vacant land, and large and resort condominiums. industrial. Manitoba There are ten property classes: Mill (tax) rates are set by municipal councils. - residential 1 (1-4 units) The province places no restrictions on the rate. - residential 2 (5 or more units) Municipalities are not permitted to apply - residential 3 (owner occupied differential tax rates to different property condominium and co-operative housing) types. Instead, the province sets the - farm percentage of market value that can be - institutional assessed in each property class and the - pipeline - railway municipal single tax rate is levied on the - designated recreational property. derived assessed value. - other Saskatchewan Assessment categories include: Mill (tax) rates are determined locally. No - residential, provincial control. Each municipality sets one - commercial/industrial, rate. Mill rate factors, set by the province, are - agricultural, then applied to this rate for each property - pipelines, class. These mill rate factors create differential - resource production equipment, effective tax rates for the different property - heavy industrial, classes. Municipalities are also permitted to - railway roadway. impose a minimum tax or a base tax (base plus - additional subclasses may be used for mill rate levy) to all property classes. residential and commercial/industrial. Alberta Properties are assigned to one of the Municipal councils have the power to levy following classes: differential tax rates on different property - residential, categories; however, there are some provincial - non-residential (commercial and limitations. For example, a municipality's industrial), highest non-residential tax rate shall not be - farmland, more than five times greater than the - machinery and equipment. municipality's lowest residential tax rate. Municipal councils may also set subclasses Other tax ratio restrictions apply to non - in each class. residential vis-a-vis machinery and equipment. British There are nine classes of assessable property: Municipal property tax (mill) rates are set by Columbia - residential local councils. Variable tax rates are allowed - utilities for the different property classes. The - supportive housing province does, however, restrict the - major industry differential that may be set in these rates by - light industry placing upper limits on the tax ratio (tax rate - business/ other on a property category divided by the - managed forest land. residential rate). - recreational/non-profit property - farmland. 36 C. Non -Residential, Commercial, Heavy Industrial Multiplier Benchmarking The general practice in Canada is to levy higher property tax rates on multi -residential properties (although this is not the case in New Brunswick) and commercial/industrial properties than on residential properties.5 Table 3 illustrates the differential tax rates between residential and non- residential properties in a number of Canadian jurisdictions for 2015 and the most recent year for which data are available. These are the municipalities that were included in the 2017 report and were chosen because of their similarities to Saint John. There are a few points that may be drawn from this cross-country comparison:' • Saint John's tax ratio is almost always lower than the comparator municipalities. • since 2015, some cities have held their tax ratios constant (Sydney, St. John's, Strathcona, Regina) while others have experienced a notable increase (Prince George, Sarnia, Sault Ste. Marie and Greater Sudbury). Table 3: Municipal Tax Ratios, 2015 and most recent year Commercial Industrial Major/large industrial 2015 Recent 2015 Recent 2015 Recent City Saint John, New 1.5 1.7 1.5 1.7 1.5 1.7 Brunswick Fredericton, New 1.5 1.7 1.5 1.7 1.5 1.7 Brunswick Moncton, New 1.5 1.64 1.5 1.64 1.5 1.64 Brunswick Sydney, Nova 2.49 2.38 2.49 2.38 2.49 2.38 Scotia St. John's, 3.24 3.55 3.23 3.55 3.23 3.55 Newfoundland Strathcona County, 1.98 2.20 1.98 2.20 1.98 2.20 Alberta Regina, 1.51 1.46 1.51 1.46 1.51 1.46 Saskatchewan s This may be achieved by levying higher tax rates on some property types or by assessing some property types at a higher percentage of market value. 6 For more detail see the Appendix Table on tax ratios. The Appendix Table shows that, in many provinces, non- residential properties are divided into several sub -classes with different tax rates. 0 37 Prince George, BC 2.05 2.50 3.30 5.08 6.02 9.80 Sarnia, Ontario 1.63 1.63 2.05 2.05 3.00 3.00 Sault Ste. Marie, 2.16 2.10 2.99 4.52 5.31 8.02 Ontario Greater Sudbury, 2.14 1.91 3.10 3.66 3.52 4.25 Ontario Notes: Tax ratios are calculated relative to the residential tax rate. These tax ratios do not include the provincial property tax. For more details, see Appendix Table. Source: Ontario data from 2021 Municipal Financial Returns, Ministry of Municipal Affairs and Housing, Schedule 22A, column I - Municipal and School Board Taxation - General Purpose. Sydney Scotia data calculated from data. novascotia.ca/municipalities/municipal property -tax -rates. St John's - calculated from tax rate data. Regina - calculated from city tax rate data. Strathcona County — from Alberta, Municipal Financial and Statistical Data, Schedule MR(1) residential and MR(2) nonresidential. Prince George — from British Columbia, Municipal Tax Rates and Tax Burden, schedule 702. New Brunswick - from municipal budgets. A Machinery and Equipment (M&E) This discussion is divided onto two parts. First, is there an argument for taxing machinery and equipment? Second, has there been any change in the taxation of M&E over the past few years? Is there an argument for taxing machinery and equipment? For some time, there has been an ongoing discussion as to whether or not excluding one component of the manufacturing sector (M&E) from the property tax base while taxing other components (buildings and land) is the fairest and most effective way to assist the manufacturing sector. A simple example may illustrate the point. Suppose we have two neighbouring industrial properties assessed at $2 million each, but with different assessed proportions of M&E versus land/buildings. In this scenario, the property with the higher percent of M&E pays proportionately less in property taxes compared to the property with the lower percent of M&E (assuming that M&E is tax exempt). It could be argued that this situation is not fair because one property pays less property tax than the other even though each benefit from the same level of public services. Moreover, a policy of exempting taxes on one factor of production creates an incentive for companies, wherever possible, to use more of the non-taxable factor (M&E) and less of the taxable factors 7 (land/buildings), thus distorting their economic decisions and also reducing the local assessment base. On the other hand, if one were to draw an analogy to the property tax treatment of residential properties, personal property (furnishings, appliances, motor vehicles, and so on) is not taxed while furnaces, air conditioners, and plumbing fixtures that are affixed to property and provide services to the property are factored into property values and hence, are taxed. Taxation of these fixtures is similar to the taxation of M& E that provides services to buildings. Excluding personal property may be similar to excluding M & E that does not provide services to the building. Has there been any change in the taxation of M &E over the past few years? At one time, every province taxed M&E, but concerns over the cost impact on the manufacturing sector a few decades ago led to many provinces removing or partially removing it from the property tax base. Property assessment and taxation of M&E depends on the definition of machinery and equipment as recorded in specific regulations and the way in which it is interpreted or negotiated in its application. See Table 4. Except for some relatively minor adjustments in Alberta, there has been very little change in the assessment and property tax treatment of M&E over the past decade. In Alberta, there are two assessment standards: market and regulated. Each faces challenges in its application. A practical difficulty in valuing M&E under `market' standard is that there are few touchstones for comparative purposes. Hence, difficulties arise in testing for accuracy. Where assessments are based on a non -market standard (regulated), as happens in thinly traded markets or where there are less provable allocations of value between land and buildings, similar problems arise. When few touchstones exist, assessment policy (and methodology) tends to directly impact tax policy/burden. This is evident with assessment and taxation of Alberta's linear properties and designated industrial properties (introduced in 2018). Other examples include Ontario's assessment of industrial properties (obsolescence allowances) and BC's regulated major industry, electric power group and linear properties. The lack of market -evidence to serve as a transparent clearing house for the distribution of the tax burden can lead to political hue and cry for increased industrial taxation to reduce taxes on the residential property owner. 0 39 In provinces that tax M&E, some tax it if is deemed to be affixed to real property; others tax it if it provides services to the building, Table 4 highlights the inter provincial treatment of M&E. Table 4: Property Assessment and Taxation of Machinery and Equipment Newfoundland Machinery and equipment is not assessed; however, some items like and Labrador `fermentation tanks' are defined as assessable real property. Prince Only machinery, equipment, and other fixtures that provide services to the Edward buildings are liable for property taxation. Island Nova Scotia Machinery and equipment is not included in the property tax base. New Machinery and equipment providing services to buildings are assessed. All Brunswick machinery, equipment, apparatus and installations other than those for providing services to buildings are exempt from assessment. Quebec Machinery and equipment is not assessed. Ontario All machinery and equipment used for manufacturing, and the foundations upon which they rest are exempt from taxation. However, any item of machinery and equipment affixed to the land that is not used in the manufacturing process, including items such as heating, lighting and cooling systems, are taxable. Manitoba Machinery and equipment is assessed in a small number of properties - this includes oil wells, gas equipment and gas distribution systems. Municipalities may pass a by-law to assess M&E but only 2 of 136 have done so. Furthermore, these two municipalities have identified few property types for assessment (e.g., drywall equipment). Saskatchewan Machinery and equipment is only assessed in the mining, oil and gas industries on equipment used in the extraction of minerals. M&E is not assessed on anything related to processing of raw materials (e.g., oil refinery) Alberta Machinery and equipment (M&E) is assessed for municipal tax purposes but Edmonton and Calgary, for example, do not tax it. Most municipalities, however, do tax M&E. M&E includes components or equipment within commercial and industrial properties where manufacturing or processing occurs. These properties include refineries, chemical plants, pulp and paper plants, upgraders, food processing facilities, grain and fertilizer handling facilities, bakeries and butcher shops. Within these sites, M&E property 0 all includes such things as storage tanks, separators, fuel gas scrubbers, compressors, chemical injectors, metering and analysis equipment, ovens, mixers, grinders, and other equipment and components. Land and buildings are assessed at full market value, whereas, M&E is assessed at 77% of its assessed value. The municipal tax is levied on M&E but the provincial education tax is not levied on M&E. Much effort/stakeholder consultation took place around the Municipal Government Act (MGA Review), concluding in 2018. This led to little change except for the introduction of a category for `designated industrial properties'. British Machinery and equipment is not assessed (eliminated in the late 1980s), but Columbia foundations and structures are assessed. There remains, however, a grey area in defining whether some item is a structure or M&E; for example, a major storage tank becomes a machine when a paddle is added and it may be used as a `blending' tank. Bruce Turner provided assistance in updating and compiling information for this Table. 10 41 APPENDIX TABLE - TAX RATIOS For Ontario: Data from the 2022 Financial Information Returns - Schedule 22 - Municipal and School Board Taxation - General Purpose. Sarnia Sault Ste. Greater Sudbury Marie 2015 2021 2015 2021 2015 2021 Property Tax Rate Class Description Tax Tax Tax Tax Tax Tax Ratio Ratio Ratio Ratio Ratio Ratio Residential Full Occupied 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 Multi -Residential Full Occupied 2.4000 2.0000 1.2943 1.0820 2.1845 1.9650 Farmland Full Occupied 0.2500 0.2260 0.2500 0.2500 0.2500 0.2000 Managed Forest Full Occupied 0.2500 0.2500 0.2500 0.2500 0.2500 0.2500 Commercial Full Occupied 1.6271 1.6271 2.1603 2.1005 2.1397 1.9120 Commercial Full Occupied, 1.6271 1.6271 2.1603 2.1005 2.1397 1.9120 Shared PIL Commercial Excess Land 1.6271 1.6271 2.1603 2.1005 2.1397 1.9120 Commercial Vacant Land 1.0912 1.0912 2.1603 2.1005 2.1397 1.9120 Parking Lot Full Occupied 1.0912 1.0912 1.5972 1.5530 2.1397 1.9120 Office Building Full Occupied 1.5358 1.5358 3.1552 2.9201 2.1397 1.9120 Shopping Centre Full Occupied 2.0835 2.0835 2.2933 2.2298 2.1397 1.9120 Industrial Full Occupied 2.0476 2.0476 2.9900 4.5177 3.1038 3.6604 Industrial Full Occupied, 2.0476 2.0476 2.9900 4.5177 3.1038 3.6604 Shared PIL Industrial Excess Land 2.0476 2.0476 2.9900 4.5177 3.1038 3.6604 Industrial Vacant Land 2.0476 2.0476 2.9900 4.5177 3.1038 3.6604 Large Industrial Full Occupied 3.0035 3.0035 5.3102 8.0235 3.5180 4.2489 Large Industrial Excess Land 3.0035 3.0035 5.3102 8.0235 3.5180 4.2489 Pipeline Full Occupied 1.3424 1.3424 2.0056 2.0939 2.1715 2.1795 Industrial, Full Occupied 2.0476 2.0476 2.9900 4.5177 3.1038 3.6604 NConstr. Large Ind., Full Occupied N.A. 3.0035 N.A. N.A. 3.5180 4.2489 NConstr. Large Ind., Excess Land N.A. 3.0035 N.A. N.A. 3.5180 4.2489 NConstr. Commercial, Full Occupied 1.6271 1.6271 2.1603 2.1005 2.1397 1.9120 NConstr. Commercial, Excess Land 1.6271 1.6271 2.1603 2.1005 2.1397 1.9120 NConstr. Office Build., Full Occupied 1.5358 1.5358 3.1552 2.9201 2.1397 1.9120 NConstr. 11 :A Tax Ratios in Municipalities with two Property tax rates Commercial/Industrial Tax Ratio New 2015 2023 Saint John, New Brunswick 1.5 1.4 - 1.7 Frederictorn, New Brunswick 1.5 1.4 - 1.7 Moncton, New Brunswick 1.5 1.4 - 1.7 Sydney, Nova Scotia 2.4912 2.3826 St, John's, Newfoundland 3.2346 3.5479 Strathcona County, Alberta 1.9842 2.1956 Tax Ratios for Regina 2015 2022 Multi Unit residential 1.0000 1.0000 Commercial/Industrial 1.5123 1.4583 Golf Courses 0.9827 0.8919 Agriculture --- 0.9437 Railways --- 1.4583 Pipeline --- 1.4583 Resource --- 1.4583 Tax Ratios for Prince George 2015 2022 Commercial 2.0509 2.5000 Major Industry 6.0228 9.8033 Light industry 3.2980 5.0773 Utilities 5.1272 6.9472 Farm 0.6631 1.0201 Managed Forest 1.0000 1.0000 Recreational non-profit 1.0000 1.0000 Supportive Housing 1.0000 1.0000 12 43 Brunswick Date : June 14, 2023 / Le 14 juin 2023 Memo Note Local Government and Local Governance Reform / Gouvernements locaux et de la Reforme de la gouvernance locale P.O. Box/C.P. 6000 Fredericton, NB E313 5H1 Tel / Tel. (506) 453-3256 To/best.: Local Government Administrators / Administrateurs des gouvernements locaux Rural District Advisory Council Chairs / Presidents ou presidentes des conseils consultatifs des districts ruraux Regional Service Commission CEOs / Premiers dirigeants des Commissions de services regionaux Copy/Copie: Municipal Associations / Associations municipales From/Exp.: Jennifer Wilkins, Assistant Deputy Minister, Local Government and Local Governance Reform and Corporate Services and Community Funding / Sous- ministre adjointe, Gouvernements locaux et de la Reforme de la gouvernance locale et Services generaux et financement communautaire Subject/Objet: Save the Date: Finance Summit — September 21, 2023 Reservez la date : Sommet des finances — le 21 septembre 2023 As part of next steps in the Local Governance Reform (LGR) initiative, a commitment was made to host a Finance Summit in the fall of 2023. The summit will take place on Thursday, September 21, 2023, at the Delta Fredericton Hotel. The summit will bring together financial representatives and elected officials from local governments (two participants per local government), the chairs of the Rural District Advisory Councils, and CEOs of the regional service commissions. The summit will provide a forum to reflect on the financial and taxation challenges and opportunities associated with local governance reform. Participants will also have an opportunity to provide their feedback on possible next steps and to identify new and emerging priorities. En vue des prochaines etapes de ('initiative de reforme de la gouvernance locale, 1'engagement avait ete pris de tenir un sommet des finances a I'automne de 2023. Ce sommet aura lieu le jeudi 21 septembre 2023 a I'hotel Delta Fredericton. Le sommet reunira des representants financiers et des elus des gouvernements locaux (deux participants par gouvernement local, les presidents des conseils consultatifs de district rural et des chefs de la direction des commissions de services regionaux. Le sommet constituera un forum de reflexion sur les defis financiers et fiscaux et les opportunites associes a la reforme de la gouvernance locale. Les participants auront aussi ('occasion de faire part de leurs commentaires sur les prochaines etapes possibles et de determiner les nouvelles priorites. /2 44 June 14, 2023 / le 14 juin 2023 Page 2 We have secured a limited number of rooms at the Delta for Wednesday, September 20, at a rate of $175 per night. These are available on a first -come, first -served basis. Reservations can be made by calling 1-888-236-2427 and referring to group code LOC, or by booking online at Book Your Group / Marriott International. More information on the registration process and a detailed agenda will follow in the coming weeks. Nous avons reserve un nombre limite de chambres a I'hotel Delta pour le mercredi 20 septembre, au tarif de 175 $ la nuit. C'est le principe du premier arrive, premier servi. Les reservations peuvent titre faites en composant le 1-888-236-2427 et en utilisant le code de groupe LOC, ou en reservant en ligne a Reservez votre arouse / Marriott International De plus amples renseignements sur le processus d'inscription et un ordre du jour detaille suivront au cours des prochaines semaines. We thank you for your continued collaboration Nous vous remercions de votre collaboration on this important initiative. soutenue a cette importante initiative. Sincerely, Cordialement, (Original signed by / Original signe par) Jennifer Wilkins Assistant Deputy Minister, Local Government and Local Governance Reform and Corporate Services and Community Funding / Sous-ministre adjointe, Gouvernements locaux et de la Reforme de la gouvernance locale et Services generaux et financement communautaire 45 " o r�T..., -- _ Mwwwl 2024 Operating Budget— Public Engagement Results Finance Committee —August 24t"12023 SAINT JOHN 2024 Operating Budget Public Engagement Purpose of the presentation is to provide an overview the results from "Shape your Budget" engagement Overall survey results for 84 participants. • Online survey resulted in 67 participants • Paper copy of survey completed by 2 Participants (Results added into online survey results) • Three public engagement sessions facilitated by Chapman Group • Business Community — 39 invitations sent — 6 participated • Community Organizations — 55 invitations sent — 9 participated ;va\0 k. • Public Engagement - 6 registered —1 participated and 1 reporter participated without registration. �Iy 47 \i r -0,00 g M / I 1 1� 00 54 0 2024 Operating Budget Public Engagement • Overall results for online participation is consistent to other "Shape your City" public engagements • Summertime is often a more challenging time to do public engagement • Results would not be representative of the total population. However, can provide some interesting information to consider as the budget process continues. • Survey results from "Shape your Budget" and Chapman Group included as appendices. 00 • ,, Public Engagement Public Engagement 400 372 375 353 350 325 300 275 250 225 200 175 150 125 100 74 84 75 53 50 25 ■ 0 Charlotte Street City Market Strategic Community Energy Custome r Service Shape Your Budget Reimagination Project Plan Action Plan Survey Survey ■ Responses 49 2024 Operating Budget Public Engagement Questions Included 1. What are your top 5 spending priorities for the 2024 Budget? 2. What are your lowest 5 spending priorities for the 2024 Budget? 3. If the City exceeded tax base growth targets for 2024 and therefore had the option to reduce the property tax rate or increase services, what would be your preference? 4. The 10-year strategic plan has been developed to build upon the City's vision and mission to establish an overarching strategic direction that will guide operational planning and budgeting. What would be your top 5 priorities? 5. Overall, how would you rate the City in terms of the programs, services and value for your tax dollars? 6. Please select on the following age ranges. 7. Have you moved to Saint John within the past 5 years? 8. Do you operate a business in Saint John? 50 2024 Operating Budget Public Engagement Questions Included 9. What best describes your household? 10. What is your current housing situation? 11. What is your postal code? 12. The City of Saint John strives to be and values a welcoming City that pulsates with diversity. Please check any of the following categories that apply. 13. Do you have any suggestions on how the City of Saint John could generate revenue, reduce operational spending or find efficiencies. 51 Diversity - 54 respondents 25 40% 37% 35% 20 20 30% 28% 30% 16 15 25% 0 15 CL a� 460 19% 19% 20% L v 10 10 10 15% P 0 13% 13% 15% 8 2 7 7 10% 5 5% 0% Senior Person with LGBTQIA2S+ Neu rodive rgent Youth (18-29) Indigenous Racial ized person Recent immigrant disabilities (past 10 years) Diversity Total No.of responses -928—Total %of total responses 40 35 30 CA C O 25 a CA L_ 460 20 L 15 10 5 40% 19 Household - 84 respondents One person Two person Three person Four person Five or more persons No. of person Total No,of responses 53-Total % of total responses Prefer not to answer 45% 40°l 35% 30°l 25% 20% 70 65 60 55 50 � 45 rr, 40 rr, a� L 35 L _C2 30 E Z�- 25 20 15 10 5 I c)ved tc> Saint Jc>hn Within Past 5 years - S4 respondents .f 01 — S 0% 75% 7 0"1 65% 6 Q"1 55% 5 Q"1 45% 4 Q"1 35% 3 Q"1 25% 2 Q"1 15% 10% 5l Ol No Yes Prefe r not to answer Total No.of responses 54 Total '�,. of total responses SAINT JOHN Operate Business in Saint John - 83 respondents 75 84' 70 65 60 55 50 fA [U 45 CL a) 40 L ar L 35 E 30 z PA~ 20 15 10 5 85% 80°f 75% 70% 65% 60% 55% 50% 45% 4O% 35% 30% 25% 20% 15% 10% 5% 0% 0% No Yes Pirefe r not to answer c m, Total No. of responses55 Total Y.oftotal responses SAINT JOHN 50 55 50 40 0 cL 35 a) L 4-- 30 L a) 25 20 z 15 10 5 Current Housing Situation - 84 respondents Own Re nt Ot h} e r Prefer not to answer 70% 55% 60% 55 50% 45% 40% 35 30% 25% 20% 15% 100 5 0 � Total No,of responses 5@-Total % of total responses Top 5 Spending Priorities for 2024 Budget - 84 respondents 60 65% 61% 55 6090 51 50 55% 55% 46 45 50% 45% 40 N 38% 389. 40% 0 35 36% rL L 32 32 30 32% 35% L 30 27 30% 29% 309/. m 25 25 24 2595 25% Z 21 21 21% 21% 25% 20 18 18 18% 20% 13% 13% 15 15 14% 15% 12 10 11 11 10% 6% 5 5 5% 090 101 ?�e \�4a eon eoz QNo yec� �eaL� \oQc�. o�a� 5e�� �eccg yew. ie`�� ia�cc a43; ca�� L`eco a�ecc � o� os� \tea e�z �qQ \tee a `ie ca `o@' ac Laao cka ao oases �a� teams `�o <<a �� \`a e`a Qo ��� o\er Qoaa atec ocofi P`��a ��aaao �Ji. a��o c ham mar a e e otaa �s Service Areas Total No.of responses 576—Total %of total responses SAINT JOHN Lowest 5 Spending Priorities for 2024 Budget - 83 respondents 45 s0% 46 % 45 Y. 40 4390 45% i37 35 7 40% 35% 34% 34% 33% 3590 30 29 28 28 27 28% 30% a 27% C- 25 CD 23 L p 22 2% 25% i 20 19% 18 18 % 20% Z 16 17% 15 is 14 16% 14% 13 1s% 12 2% 10 10% 10 10% s - s s% a% ¢�� .t`4" �` Ji¢ \r� e�� \`QS ��p� .��� ��r$ e� �c¢�' �� 2��y �•�, 4 \`�ao \�e5 <6 R$3 a�<29 a�Q� eImp� �0� .. , 5 �\c. oJ� 4e5 ¢ati .iia ��c �a PGA` oho �¢r oa ce' � CPF Sao 0 aca Ga Service Areas 58 �Total No.of responses --O—Total%aftotal responses Top 5 Priorities from 10 year Strategic Plan - 84 respondents 60 63% 65% 55 53 56% 609'0 50 55% 47 45 509/0 43% � q0 409` 45% 39% 0 36 409/0 a 35 34 33 m 35% 6 30 30%. 29% 30% s 25 25 24 25% 24% 24% 24% 23% 25% z 20 21 20 20 20 19 17% 15% 20% 15 14 159'0 13 10 109'0 5 5% - 0% �taa erg \oZ` O a�\� r.Q `pt` a> dye \01% a(�` Les � ai ar a` h �� tay �aN ��a Jam` tea` du �s IN z t gyti `QF 4-1 y-90 ,10 a �s� � c ra ar s5 a`z ra\` ok � wear o� `OAS `ate ��� a�\a a 0< e ��o r oy�a`tc ha�a\r Q ry\ araa �tO�� e a� \\ cs`.� �� tGe �r� r¢ Gra \r�eyc Rio pet \��i 10 Year Strategic Plan Priorities 59 � Total No.of responses Total % of total responses 55 50 45 40 In a) 35 0 30 L 25 M E 20 15 10 5 Reduce Tax Rate v s Increase Service Levels - 84 respondents � Total No.of responses Total % of total responses 52% 44 Increase service level based on top 5 priorities 43% 36 Re du ce p ro p e rty tax rate Priorities 60 4 �X F 590 Prefe r not to answer 55% 5 00l 45% 40% 35% 3 00l 25% 2 0"'ZG 15% 10% 5% O% SAINT JOHN 45 46 % 40 35 rn 3 0 a) CL 25 20 E z 15 10 5 Value For Tax Dollars - 84 respondents Fairly good Fairly poor Very poor Don't know Ranking � Total No.of responses 61Total % of total responses Very good 5 0°f 45% 4 0°f 359a 3 0°f 25f 2 0°f 15% 10°l 5% 0% 51 Respondents had the opportunity to provide comments and feedback. All responses are including the Shape your Budget report. � 38 responses were provided with a � variety of ideas, opinions and suggestions for the City. There were no consistent themes among the answers however plenty of interesting comments. Feedback from the group session were focused on discussing potential actions for the top priorities. There were a few outliers based on the overall combined results and the top five priorities. Active Transportation was the 2nd top priority I ersus the middle of the combined results for both • • top 5 and lowest 5 spending priorities. Community programming was identified as the 3rd ssi on s top priority in combined results versus falling in the top 5 in the lowest spending priorities. These outliers would be the result of sessions with various groups versus individual priorities in the online responses. Other item discussed that were included in the report were discussions around economic development and include various comment. 2024 Operating Budget Public Engagement Conclusion • The results of the survey is for information purposes only. • The results presented would not be statistically valid. • Public engagement is considered best practice for creating an open and transparent process around the budgeting process. Recommendation • " Finance Committee receive and file this presentation and attached documents" 0 41, $gy�ti yv g� Og �`� y vg�cy��•roC'' g v ��ti ti ��� p'l' c,,g`V vrp � 4 1 y S -Ooi , �3, � 4 h- o• � ry�� y � ��, pyR, osv � is �� h�0 �� ��•��� �� R v0 egg � � 1,3 � ����;�'hp`t' � ,�vM �°'��; �n`�goyfl°j �� � � �g� gg tiro• ���� `Z1gp �co`4 SC1141 h hti�O qg ^, �h R v�fo g��aF LwQ'^g hg� p 1�3 ��' h�� q tiOg n h� o 1,b Off'� N nti9 �h ha o�° ti �1D3 n� g. �y~~ti� tiM � cgg O R�g�g 14hg� ti1b�Zb `L�ti'1,��,` �' �cb ,�1,� o 10 tid ��. g� g� ti� nti h�� ti gam• ��g �g CO � v00co ^ti• �n�� y`b 4 rO�A�� h �� ��°~� ti ����� �h�pti� {o, h `L' v' na Cb �S,�� � ti�Lr����l'oh ,`�ry gh�a��� `1r��h��hpP` .4•O� _a t� M ._ R _ erg 4Y 4. "� _ Shape Your Budget: 2024 SURVEY RESPONSE REPORT 20 June 2023 - 19 July 2023 PROJECT NAME: Shape Your Budget BANG THE TABLE .�� engagementHQ. Shape Your Budget: 2024 : Survey Report for 20 June 2023 to 19 July 2023 Page 1 of 22 Shape Your Budget: 2024 : Survey Report for 20 June 2023 to 19 July 2023 01 What are your top 5 spending priorities for the 2024 Budget? 45 39 38 40 35 31 30 24 25 19 9 26 Question options JI Roads and sidewalks • Snow plowing • Parks and recreation facilities • Recreation programming • Affordable housing advocacy • Police services • Fire services • Climate action • Active transportation (cycling, walking, trails, etc.) • Arts and culture • Garbage and recycling • Economic development • Transit services • By-law services and enforcement • Community programming • Stormwater management • Traffic management Optional question (67 response(s), 0 skipped) Question type: Checkbox Question Page 2 of 22 67 Shape Your Budget: 2024 : Survey Report for 20 June 2023 to 19 July 2023 02 What are your lowest 5 spending priorities for the 2024 Budget? 40 35 30 25 10 12 12 35 14 25 26 27 Question options JI Roads and sidewalks • Snow plowing • Parks and recreation facilities • Recreation programming • Affordable housing advocacy • Police services • Fire services • Climate action • Active transportation (cycling, walking, trails, etc.) • Arts and culture • Garbage and recycling • Economic development • Transit services • By-law services and enforcement • Community programming • Stormwater management • Traffic management Optional question (66 response(s), I skipped) Question type: Checkbox Question Page 3 of 22 Shape Your Budget: 2024 : Survey Report for 20 June 2023 to 19 July 2023 Q3 If the City exceeded tax base growth targets for 2024 and therefore had the option to reduce the property tax rate or incre... 40 32 30 20 10 35 Question options w Reduce property tax rate Increase service levels based on your top 5 services chosen in previous question Optional question (67 response(s), 0 skipped) Question type: Checkbox Question Page 4 of 22 Shape Your Budget: 2024 : Survey Report for 20 June 2023 to 19 July 2023 04 The 10-year strategic plan has been developed to build upon the City's vision and mission to establish an overarching strat... 50 45 40 35 30 26 21 18 20 14 14 10 28 28 20 18 17 11 Question options Foster new partnerships to ensure Saint John remains an arts and culture destination Work towards achieving the recommendations of PlaySJ with a proportional share increase of 5% to current parks and recreation budgets Establish and implement a plan to address the social needs of the community that supports inclusion, diversity, equity and quality of life Provide increased opportunities to engage a more diverse population for civic pride, participation, beautification, and community partnerships Grow our property tax base by 3% annually, including at least 1 % of new build assessment Grow our population to 85,000 from the current population of 70,000 Champion for fair regional cost sharing and property tax reform that recognizes the City's contributions to the region and province Protect our environment 0 Deliver excellence in serving our customers to defined service levels Build and invest in transit and active transportation to increase overall sustainable transportation usage to 20% 10 Deliver sustainable public safety programs that meet the needs of a growing and diverse community 10 Deliver excellence in financial stewardship Strengthen the competitiveness of the water utility in comparison to municipalities with similar service and infrastructure 10 Focus on continuously improving as a high-performance public service organization Optional question (67 response(s), 0 skipped) Question type: Checkbox Question Page 5 of 22 70 Shape Your Budget: 2024 : Survey Report for 20 June 2023 to 19 July 2023 05 Overall, how would you rate the City in terms of the programs, services and value for your tax dollars? 26 30 22 20 13 Question options Fairly good value for your tax dollars 0 Fairly poor value for your tax dollars 0 Very poor value for your tax dollars Don't know 0 Very good value for your tax dollars Optional question (67 response(s), 0 skipped) Question type: Checkbox Question Page 6 of 22 71 Shape Your Budget: 2024 : Survey Report for 20 June 2023 to 19 July 2023 Q6 Please select from the following age ranges 26 24 23 22 20 18 17 16 14 12 10 10 8 7 7 6 4 2 3 Question options 20-29 30-39 40-49 50-59 60-69 70-79 0-19 80 + 0 Prefer not to answer Optional question (67 response(s), 0 skipped) Question type: Checkbox Question Page 7 of 22 72 Shape Your Budget: 2024 : Survey Report for 20 June 2023 to 19 July 2023 Q7 Have you moved to Saint John within the past 5 years? 60 40 17 20 Question options Yes No Prefer not to answer Optional question (67 response(s), 0 skipped) Question type: Checkbox Question 49 08 Do you operate a business in Saint John? 60 40 20 10 Question options Yes No Prefer not to answer Optional question (66 response(s), 1 skipped) Question type: Checkbox Question 56 1 Page 8 of 22 73 Shape Your Budget: 2024 : Survey Report for 20 June 2023 to 19 July 2023 Q9 What best describes your household? 30 26 20 12 16 10 W 5 1-0 2 Question options One person Two person Three person Four person 10 Five or more persons Prefer not to answer Optional question (67 response(s), 0 skipped) Question type: Checkbox Question 010 What is your current housing situation? 60 40 21 20 1 45 Question options 40 Rent 0 Own f Prefer not to answer Other (please specify) Optional question (67 response(s), 0 skipped) Question type: Checkbox Question 1 Page 9 of 22 74 Shape Your Budget: 2024 : Survey Report for 20 June 2023 to 19 July 2023 011 What is your postal code? E2L 1 C6 E2M7V9 E212n8 E2J 3E6 E2L3R5 E2J3K8 E2K 1 E5 E2M1B8 E2L 3S5 E2J OA8 e211 s8 E2K 3L9 E2K 2x2 Page 10 of 22 75 Shape Your Budget: 2024 : Survey Report for 20 June 2023 to 19 July 2023 E2P1E3 e2m 4m2 E2L2Z2 E2L2E E2K4x7 E2K 3131 e211 s2 E2M 4J8 E2M4Y9 E2L2V8 e211 m 1 E2L 1 S2 E2L2V8 E2K2T8 Page 11 of 22 76 Shape Your Budget: 2024 : Survey Report for 20 June 2023 to 19 July 2023 E211 n8 E2mOe3 E2M OE3 E2K2T7 E2J3E6 E2n1g9 E2M1Y2 E3B2S2 E2M4C3 E2L1 G4 E2j3j8 E2M1R6 E2M1R6 Page 12 of 22 77 Shape Your Budget: 2024 : Survey Report for 20 June 2023 to 19 July 2023 E2KOC3 e2m6a6 E211 g6 E211 g9 E2K 4a5 E2JOH8 E2E 5T7 E2L2C1 E2k4a7 E2JOE4 E2K 4R1 E2M 3139 E2L 1 K8 E2L OC4 Page 13 of 22 Shape Your Budget: 2024 : Survey Report for 20 June 2023 to 19 July 2023 E2k 3w8 E2M5R3 E2N 4K8 e2m 4s2 E2J5C7 E2J 1 R2 E2M 51-16 - add sewage services to Ocean Westway E2K 5S8 e2m4a9 E2J2C3 Optional question (64 response(s), 3 skipped) Question type: Single Line Question Page 14 of 22 79 Shape Your Budget: 2024 : Survey Report for 20 June 2023 to 19 July 2023 Q12 The City of Saint John strives to be and values a welcoming city that pulsates with diversity. Please check any of the foil... 20 15 14 13 15 9 7 7 10 6 4 5 Question options Indigenous (meaning the original peoples of North America and their descendants) Racialized person (as defined by Statistics Canada) Person with disabilities (as defined in Canada's Federal Disability Reference Guide) Neurodivergent Youth (meaning between the ages of 18-29) LGBTQIA2S+ 0 Senior Recent immigrant (past 10 years) Optional question (37 response(s), 30 skipped) Question type: Checkbox Question 013 Do you have any suggestions on how the City of Saint John could generate revenue, reduce operational spending, or find efficiencies? Allow for greater building density across the Primary Development Area to promote more tax revenue and population growth + cheaper active transit options with more transit ridership N/A I would love to be able to participate in a round table or efficiency exercise with decision makers to give input from a lifelong Saint John resident and tax payer, ie community member input. First, we have to stop giving deals to Irving's. They are contributing to the destruction of the earth in many ways. They poison animals and humans - giving us cancer, lung diseases and more. They spray known toxic chemicals over swaths of our province, poisoning, disabling, and killing us. Then, we let them keep ALL of their profits, Page 15 of 22 Shape Your Budget: 2024 : Survey Report for 20 June 2023 to 19 July 2023 while over 180 people are HOMELL86 in our tair city. Fair no more. Stop the corporate corruption. Stop being swindled. Stop paying swindlers and conmen because they're friends with counsel. Stop begging people to move here while there are no affordable livable places for the people here already. Remember the 180+ homeless? I was priced out of the neighbourhood where I've lived for a decade. My rent doubled, thanks to someone begged into exploiting us. Save oodles on police spending by diverting most of their budget to social services and housing. For God's sake we need to immediately destigmatise addictions services, and make them BROADLY available - walking distance in all neighbourhoods. People work much better when they're not disabled or dead, so perhaps bringing back masks - at least during peak season - will prevent countless infections, downtimes, disabilities and deaths. At least than $1/mask, that seems like a bargain. Hope that helps. How much does snow removal cost per storm? Defund the police, introduce green energy public transport. A more transparent police budget The city could consider enforcing their bylaws, I hear that can generate revenue. The deer situation is out of control with people deliberately attracting them and dumping food all over their yards (literally multiple times a day in my neighborhood) - attracting not just deer, but every variety of pest and all the diseases they and their parasites carry. You didn't ask for any other kind of suggestions, but as my pleas to bylaw enforcement and to the city fall on deaf ears, I have to say it again. Someone needs to consider the serious rat problem, and the public health problems that are bound to ensue. Tick populations are increasing as are tick -borne diseases because of rising winter temperatures. Avian flu is also on the rise all over the continent, and people with six bird feeders in their yards are making the situation worse. There is constantly garbage strewn everywhere, probably because of pests getting into people's garbage which is only picked up every other week. Improving garbage collection, educating people about why feeding wild animals is bad for the animals and for people, and enforcing both the deer feeding bylaw AND the putrescible waste bylaw would go a long way to protecting people from ticks, tick -borne disease, parasites found in wild animal waste (worms for example - whose eggs make soil unsafe for gardening - a food security issue), avian flu, and other diseases carried by these Page 16 of 22 Shape Your Budget: 2024 : Survey Report for 20 June 2023 to 19 July 2023 animals that people are deliberately attracting. Bringing the other municipalities served by Saint John into the tax fold must be pursued aggressively. Enlist the support of the people of Saint John. You have it. It's your greatest offence and your best defence. Time to make Rothesay and Quispiamis part of Saint John. They should not separate communities. People work here. Use the community resources here. Then pay taxes in what is basically a suburb. Ridiculous. instead of planting and digging up multiple different plants in city beds throughout the year, increase in rewilding them with local wildflowers that grow back annually. better for environment, biodiversity, still looks nice, saves money. focus less on beautification overall and more on liveability. no more fireworks shows!!!!! defund the police and expand transit- instead of cutting back routes, add more, increase services, and reduce/abolish fees to increase ridership. figure out the environmental costs of cruise ships and levy that from them in full. transit going directly to lily lake pavilion with discounted activity rental for transit riders, transit going to locations like irving nature park, rock wood golf, outdoor stuff etc. increase parking fees uptown and offer shuttles from mcallister mall/lancaster/concrete jungles out of the inner city. increase bike lanes and rent out bikes to encourage people to bike in the city who haven't tried! make recycling available to everyone even if this loses you money it's ridiculous that i can't recycle be my landlord chooses not to provide service. business owners should be required to recycle too or charge them fines. charge irving for every square foot of prime uptown property they are wasting on parking lots. housing. we need more public housing. DEFUND THE POLICE There is nothing to do in St. John for youth and young adults, I am a 25-year-old woman on the only thing that caters to somebody my age are bars. I don't drink, and I find a lot of my generation doesn't either. Maybe start catering to our generation, be more like Halifax. Implement programs where owners/ employees are responsible for the care of the public/ municipal areas that directly abut their businesses/ properties. Example- sweeping, picking up garbage on the portion of sidewalk/ street directly in front of their business/ store. I have seen this in Europe, and the places where this is done are Page 17 of 22 Shape Your Budget: 2024 : Survey Report for 20 June 2023 to 19 July 2023 Much cleaner and prettier. We need to address the industry tax base, we need to model other cities and work towards reducing tax burden so people can move here and not the valley! Tax Irving properly Tax Irving Businesses more and individual households less Too much red tape for building anything. Taxes too high Transit not functional for residents - car centric city - Review and Reduce the number of managers. The city is extremely top heavy with managers sitting around most days. Have big corporations pay more taxes encourage and assist small businesses Hold the builders accountable for the pit on top of King St. Either force them to start development or sell to someone else who can. It's an eye sore and a waste of prime real estate. The city market, businesses in the area and uptown as a whole would benefit from added foot traffic that new infrastructure would bring up there. It's a shame it's been this long without any work done. Tax the rich Properly tax large corporations. No handouts to JDI or irving oil. Fair tax assessments. Higher price on parking uptown to encourage alternative transportation (but those modes need to exist). have a ,manager that makes people work correctly and not lean on a Page 18 of 22 Shape Your Budget: 2024 : Survey Report for 20 June 2023 to 19 July 2023 rake which others do nothing. I live on a gravel road, have to beg and borrow to get snow plowed correctly and graded properly and in a timely fashion more than once every 6 months Toll bridge Create a stronger economic infrastructure and help reduce household taxes to allow patrons to support the community in other ways. Create business incentives to fill empty buildings (such as Brunswick square), Utilize ports income to community growth, utilize tourism income for community growth. Creating a city people love encourages them to financially support various projects. Get a new concil We need a very high vacant property tax rate that will apply to non - owner occupied/commercial spaces to deter these types of vacancies. In particular, in Brunswick Square. We also need the city to be able to respond more quickly to derelict homes - the tax sale process should be sped up so that these properties can be re -sold and used for housing rather than sitting empty and/or decaying further. The city should also consider requesting a deposit from developers to cover the time and cost of the city supporting them through re -zoning etc to deter speculative developers. The developer would receive their deposit back pending completion of their project within the agreed upon time. I consider stalled developments and vacant properties to be the most pressing non-social issues uptown, and to encourage growth in the core of the city we need to get a handle on these issues. You could generate revenue by charging folks that are illegally overnight RV camping for multiple days at Mispec Beach by re- directing them with appropriate signage and bylaw enforcement to legal and serviced camping lots within Saint John like Rockwood Park. Tax the large industries making record profits while polluting our environment, meddling in government, and contributing to poor public health Page 19 of 22 Shape Your Budget: 2024 : Survey Report for 20 June 2023 to 19 July 2023 Economic Development Initiatives: Encourage and support local businesses by implementing initiatives that attract new investments, promote entrepreneurship, and foster economic growth. This can include providing incentives for businesses to establish themselves in Saint John, streamlining the business registration process, and offering assistance programs for startups. Tourism Promotion: Develop and implement effective tourism campaigns to attract visitors to Saint John. Focus on highlighting the city's unique attractions, historical sites, natural beauty, and cultural events. Collaborate with local businesses to create tour packages and promote the city as a desirable tourist destination. Public -Private Partnerships (PPPs): Explore opportunities for public -private partnerships to fund and manage infrastructure projects or public services. This approach can help reduce costs for the city while leveraging private sector expertise and resources. Examples include partnering with private companies for the development of recreational facilities, parking structures, or public transportation systems. Efficient Resource Management: Conduct a comprehensive review of city operations to identify areas where resources can be better utilized. This may involve optimizing staffing levels, implementing energy -saving measures, adopting sustainable practices, and leveraging technology for improved efficiency in service delivery and administration. Asset Monetization: Identify underutilized city -owned assets that can be monetized. This can include selling surplus properties, leasing city -owned land to businesses, or exploring joint ventures for the development of real estate projects. The generated revenue can be reinvested in priority areas or used to reduce debt. User Fees and Charges: Evaluate and adjust user fees and charges for city services to ensure they cover the cost -of -service provision. This can include fees for recreational facilities, parking, permits, and licensing. Regularly review and update these fees to reflect the cost -of -service delivery and market rates. Grants and Sponsorships: Actively seek out grants and sponsorships from government agencies, private organizations, and foundations. These funds can be used to support specific projects or initiatives, reducing the burden on the city's budget. Collaborative Service Delivery: Explore opportunities for regional collaboration and shared services with neighboring municipalities. By pooling resources and sharing costs, Saint John can achieve economies of scale and reduce operational spending. This can include joint procurement, shared emergency services, or collaborative infrastructure projects. Digital Transformation: Embrace digital technologies to streamline operations and improve citizen services. Implement online platforms for services such as permits, licensing, and bill payments. Digitize internal processes and data management to reduce paperwork, increase efficiency, and enhance decision -making capabilities. Public - Private Sponsorships: Seek partnerships with private businesses for sponsoring city events, public spaces, or facilities. In exchange for sponsorship, businesses can receive advertising opportunities and Page 20 of 22 Shape Your Budget: 2024 : Survey Report for 20 June 2023 to 19 July 2023 brand exposure, while e city gains additional revenue to support its operations. It's important to note that these suggestions should be evaluated in the context of Saint John's specific circumstances and priorities. A comprehensive analysis of the city's financial situation and consultation with relevant stakeholders will help identify the most suitable strategies for revenue generation, cost reduction, and operational efficiency. Two suggestions: 1) drinking water on the west side is very hard and causing damage to appliances, fixtures and pipes. Pre-treatment of water before it reaches customers should be a priority. 2) Brunswick Square has the ability to be the center of Saint John. A strategy should be developed in collaboration with the property owner to revitalize Brunswick Square and make it a tourist attraction. One idea could be a science centre like the Discovery Centre in Halifax or the Johnson Geo Centre I'm St. John's Look to other cities and municipalities to see how things could be more efficient. With years of poor management at the city level, it will take time to build back up. I believe in renovating not in tearing down. I don't have any suggestions on saving money ... but, for public health &amp; safety reasons, I would like to have City of Saint John sewage services extended to Ocean Westway, more sooner than later, especially due to the City's new policy of allowing motels to operate as apartment rentals, when they have septic tanks that were never intended for long term living accommodations. public works with the requirements and ideals of PlanSJ, CPNP, etc. and implement a mandatory "build back better" strategy rather than keep replacing like with like. PlanSJ recognized 10 years ago that the last 50 years have been filled with planning and infrastructure nightmares that set us back as a community. We need to actively and wherever possible and at every instance undo those decisions and replace it with something that will better than it was before. Public works appears not to have an implementation plan for PlanSJ and CPNP requirements and continues to ignore those requirements, even after public feedback sessions advocating for our pre-existing plans. 5. Scrap the municipal specification standards and start all over again with something that actually matches or exceeds the Page 21 of 22 Shape Your Budget: 2024 : Survey Report for 20 June 2023 to 19 July 2023 requirements ot our municipal pans. I hey presently do not align. bee #4 above. 6. Don't just say you want "world class" stuff if you don't mean it. You actually have to have something that nearly no one has or has done. Paris, for example, installed hundreds of kilometers of bike lanes to change the nature of transportation in their city. Bilbao built a Guggenheim Museum to reshape the industrial image of the city. Barcelona invented "super blocks" to give more urban space back to residents as opposed to cars. They all succeeded. An artificial ice surface on the waterfront, while nice, just doesn't cut it as "world class." Excessive taxes. Trim back on public funding for stuff like sports that only a fraction of residents use. It's insane that we have such a tax burden when the general tax population is subsiding the sports programs and allowing services for the poor like busing to suffer. I would love to drill deeper into "public safety" and "public works" budgets. I understand people need an honest wage but feel there is a need to benchmark compared to lower tax burden cities. Do we really need yearly fire inspections of apartments when the only change in the last 10 years has been new carpet and some paint. Maybe every 5 years? Good work on the a -bus trial. Implement a robust performance management plan. Develop and implement a proactive human resource plan and labor relations strategy. Define expectations from Economic Development agencies with more detail, and measure progress with critical metrics leading to community well-being. Invest in a government relations strategy, which includes tool kits and recruitment of citizens, to lobby other levels of government for the changes desired and how citizens will benefit. Focus on the community's overall well-being and benchmark to establish progress against other Atlantic Canada communities. Optional question (38 response(s), 29 skipped) Question type: Essay Question Page 22 of 22 City of Saint John Engagementi�" 3 Budget� THE Cl IAPMAN F- 0 LM kA, V AM A PEOPLE - PURPOSE - STRATEGY W Response Held three public engagements Two public engagements were by invitation — one with a focus on the business community and the other on community organizations One public engagement open to the public Business community — 39 invitations sent — 6 participated Community organizations — 55 invitations sent — 9 participated Public engagement — only one participant plus a media representative 89 2023-o8-i6 0-cr Survey Results 90 0-cr What are your toy 5 spending priorities for the 2024 Budget? Roads and sidewalks Snow Plowing Parks and Recreation Facilities Recreation Programming Affordable Housing Advocacy Police Services Fire Services = Climate Action Active Transportation (cycling, walking, trails, etc.) Arts and Culture Garbage and Recycling Economic Development Transit Services By-law Services and Enforcement Community Programming Stormwater Management Traffic Management 2023-o8-16 7 1 8 2 13 2 7 12 3 6 4 9 91 2 THE CHAPMAN GROUP I CHAPMANGROUPCAN.COM 0 5 What are your lowest 5 spending priorities for the 2024 Budget? Roads and sidewalks Snow Plowing Parks and Recreation Facilities Recreation Programming Affordable Housing Advocacy Police Services Fire Services Climate Action Active Transportation (cycling, walking, trails, etc.) Arts and Culture Garbage and Recycling Economic Development Transit Services Sy -law Services and Enforcement Community Programming Stormwater Management Traffic Management 2023-o8-16 3 6 2 2 4 3 4 2 11 3 10 92 12 THE CHAPMAN GROUP I CHAPMANGROUPCAN.COM 0—(!r If the City exceeded tax base growth targets for 2024 the option to reduce the property tax rate or increase would be your preference? Reduce Property Tax Rate 4 Increase Service levels based on your top 5 9 services chosen in the previous question. * Some participants chose not to answer this question. and therefore had services, what 93 0-cr The 10-year strategic plan has been developed to build upon the City"s vision and 7 mission to establish an overarchingstrategic direction that will guide operational tannin and budgeting. What wound be our to 5 priorities? 9 p planningY p Foster new partnerships to ensure Saint John remains an arts and culture destination. 6 Work towards achieving the recommendations of P1aySJ with a proportional share increase of 5 % to 6 current parks and recreation budgets. Establish and implement a plan to address the social needs of the community that supports inclusion, 12 diversity, equity and quality of life. Provide increased opportunities to engage a more diverse population for civic pride, participation, beautification, and 3 community partnerships. Grow our property tax base by 3 % annually, including at least 1% of new build assessment. 4 Grow our population to 85,000 from current population of 70,000. 7 Champion for fair regional cost sharing and property tax reform that recognizes the City's contributions to 8 the region and province. Protect our environment. 8 Deliver excellence in serving our customers to defined service levels. 1 Build and invest in transit and active transportation to increase overall sustainable transportation usage to 20%. 6 Deliver sustainable public safety programs that meet the needs of a growing and diverse community. 2 Deliver excellence in financial stewardship. 4 Strengthen the competitiveness of the water utility in comparison to municipalities with similar service and infrastructure. 2 Focus on continuously improving as a high-performance public service organization. 2 94 2023-o8-16 THE CHAPMAN GROUP I CHAPMANGROUPCAN.COM Demographics Have you moved to Saint John within the past 5 years? Yes: 1 No: 16 Do you operate a business in Saint John? Yes: 3 No: 14 95 2023-o8-16 THE CHAPMAN GROUP I CHAPMANGROUPCAN.COM 0-0 Demographics What best describes your household. One Person 1 +4 Two Persons 8 Three Persons 1 Four Persons 2 +2 Five or more persons Prefer not to answer 2023-o8-16 What is your current housing situation? Rent 3 Own 3+7+1 Prefer not to answer Other (please specify 2 +1 THE CHAPMAN GROUP I CHAPMANGROUPCAN.COM 10 Demographics The City of Saint John strives to be and values a welcoming city that pulsates with diversity. Please check any of the following categories that apply: Indigenous (meaning the original peoples of North America and their descendants) 1 Racialized Person (as defined by Statistics Canada) 3 Person with Disabilities (as defined in Canada's Federal Disability Reference Guide) 2 Neurodivergent 3 Youth (meaning between the ages of 18-29) 1 LGBTQIA2S+ 2 Senior 5 Recent Immigrant (past to years) 1 97 2023-o8-16 THE CHAPMAN GROUP I CHAPMANGROUPCAN.COM 0-0 Overall, services how and would value you rate the City in terms of the programs, for your tax dollars? 2023-o8-16 Very good value for your tax dollars Fairly good value for your tax dollars 13 Fairly poor value for your tax dollars 3 Very poor value for your tax dollars Don't Know 1 THE CHAPMAN GROUP I CHAPMANGROUPCAN.COM 11 12 Demographics Please select on the following age ranges 0-19 20-29 1 30-39 1 40-49 6 50-59 2 60-69 4 70-79 1 go+ 1 Prefer not to answer 99 2023-08-16 THE CHAPMAN GROUP I CHAPMANGROUPCAN.COM 0-0 Potential Priorities Actions for Top What follows are highlights from our discussion of potential actions for the top priorities identified. 13 100 14 Affordable Housing Affordable housing is identified as a critical issue in the community, especially for low-income families and newcomers. Participants express a strong desire for more affordable housing options and discussed specific actions that could be taken to address this issue. ➢ A multi -faceted approach involving various stakeholders is suggested to tackle the complexity of affordable housing. ➢ They emphasize the need to reduce red tape and streamline the process for creating affordable housing projects. ➢ Newcomers want to build houses in city but find it difficult to get permits — very rigid approach. ➢ Integrated support services for individuals transitioning into affordable housing are seen as crucial. You don't get out of poverty without mental support (need wrap around supports) ➢ Utilize surplus city properties for nonprofit housing starts is recommended action. ➢ Improved access to land for housing development. ➢ There needs to be a balance between community wants and needs. ➢ The central Peninsula area is becoming increasingly challenging to access due to affordability issues and ongoing construction. ➢ Ensure any building is taking families into consideration. Current housing options, such as two -bedroom apartments or lofts, are more suitable for smaller family sizes. ➢ Highlighted importance of preventing the segregation of affordable units and ensuring that they offer comparable quality to market -rate housing. ➢ Many people are choosing to move to the suburbs due to all of these challenges, but transportation becomes a key factor in their decision -making process. ➢ Look at more housing inspections with an audit every 2-3 years. 101 2023-o8-16 THE CHAPMAN GROUP I CHAPMANGROUPCAN.COM 0-(!r 15 Active Transportation (cycling, walking, trails, eta.) .. . . . . . . . ... .. . ➢ Participants emphasized the importance of transportation in connecting economic hubs and retail activities within the city. ➢ Better connections between neighborhoods and transportation options are needed, particularly for people working in one area but living elsewhere. ➢ The lack of a comprehensive transportation system, such as a grid or circular system, makes it difficult for newcomers to understand the city's connectivity. ➢ Concerns are raised about the lack of walkability, especially in downtown and central Peninsula areas. ➢ Challenges such as hilly terrain, inadequate sidewalk maintenance, and the need for better walkable routes are mentioned. ➢ Integrate active transportation, such as cycling trails and pedestrian -friendly infrastructure, is seen as crucial for creating a more accessible and connected city. ➢ There is a strong desire for transportation access to parks; using shuttles is suggested as a possibility. ➢ Connect transportation to the airport is seen as an opportunity to promote Saint John as a commercial city by linking it to the port and airport. ➢ Prioritize bike lanes to encourage active transportation. ➢ Use audio at stops for those who can't read, especially newcomers, is proposed to improve accessibility. ➢ More crosswalks are needed in certain high -traffic areas ➢ Consider bicycle licences to ensure cyclists know the rules of the road 102 2023-08-16 THE CHAPMAN GROUP I CHAPMANGROUPCAN.COM 0-0 16 Community Programing Community programs play a crucial role in enhancing health and well-being, but concerns arise about potential funding cuts and challenges faced by non-profit organizations in accessing consistent funding. Effective communication and collaboration are emphasized as essential to support these programs and ensure their sustained positive impact on the community. ➢ Participants stressed the positive impact of community programs on health and well-being. ➢ Concerns are raised about potential budget cuts to community programs and the need for sustainable funding. Stable funding and long-term service agreements are needed for the sustainability of community programs. ➢ Non-profit organizations face challenges in accessing consistent funding for their programs. ➢ Community policing is emphasized for its role in crime reduction. ➢ Support community centres and organizations providing valuable services to residents is deemed important. ➢ Effective communication and collaboration among different departments, organizations, and stakeholders was emphasized for improved program coordination and avoiding duplication of efforts. ➢ Effective communication with the public to celebrate successes and keep them informed about ongoing projects ➢ In addition to discussing community programming, concerns were also voiced about the lack of public washrooms, prompting a call for solutions like all -in -one locations that address multiple needs, such as bathrooms, laundry, and safe usage sites. ➢ Question that was asked: Has there been an audit of Community Connects program in terms of accessibility. Access to this program is only online and there are a lot of people who don't have access to know how to access web content; seniors being one example. 103 2023-o8-16 THE CHAPMAN GROUP I CHAPMANGROUPCAN.COM 0-(!r Roads & Sidewalks The state of roads and sidewalks emerged as a topic of discussion among participants, who emphasized the importance of well -maintained infrastructure for safe and active transportation. Concerns were raised about the poor condition of sidewalks and roads, impacting pedestrian safety and increasing vehicle maintenance costs. Accessibility for pedestrians, including seniors and people with disabilities, was a focal point, and participants highlighted the need for traffic calming measures and addressing the red brick sidewalks. ➢ Participants emphasized the need for better transportation infrastructure, including well -maintained sidewalks and roads to ensure pedestrian and cyclist safety and support active transportation. ➢ Concerns were raised about hilly terrain, inadequate sidewalk maintenance, and the need for improved walkable routes. ➢ The removal of red brick sidewalks was suggested to enhance road safety. ➢ Participants expressed the desire for traffic calming measures in certain areas, including Waterloo Street and within the parks. ➢ Concerns were voiced about the impact of tree -lined roads on parking options despite supporting gentrification. Climate Action Participants acknowledge the critical importance of environmental sustainability and climate action and expressed concern about being behind in waste management and other environmental initiatives. Prioritizing environmental considerations and seeking funding opportunities for eco-friendly projects are highlighted. The participants also emphasized the importance of climate action and its various components, such as reducing greenhouse gas emissions, investing in renewable energy, and promoting active transportation for a more environmentally friendly city. ❖ Participants recognized climate action and active transportation as essential priorities. ❖ The need for infrastructure improvements and policies to encourage walking, biking, and other sustainable modes of transport is emphasized. ❖ Reduce reliance on cars and promoting environmentally friendly practices are seen as beneficial for the city. ❖ Concerns are raised about the challenge of cleaning up encampment sites where people are still living, despite efforts to address encampments. ❖ Make recycling more accessible and easier for people is advocated. ❖ Raise the cost of an extra bag of garbage to $5 from $2; or index it to the number of people living in the house. ❖ Incentivize recycling for apartment dwellers through landlord incentives. ❖ Urban/community gardens are praised as valuable initiatives that contribute to mental health and education. ❖ Participants recommend managing vacant properties by allowing them to grow wild to reduce pesticide use and consider banning pesticides within city limits. ❖ Ensure proper maintenance of trees and extending flower life to reduce maintenance needs are suggested as practical measures for environmental conservation. ❖ The City seems quick to cut things — services can take years to be fully utilized. A one-year pilot is not enough. 105 0-(!r Further Discussion Summary Economic development was also emphasized with discussion centred around attracting investment, supporting businesses, and promoting the city's unique cultural aspects. There was an expressed need for effective branding and marketing strategies to showcase the city's strengths and attract investors. They emphasize the importance of collaboration between different levels of government, local organizations, and entrepreneurs to drive economic growth. ➢ Transportation is viewed as a key factor in economic growth and investment readiness. ➢ Improve traffic management, rail connections, and transportation infrastructure is essential for attracting businesses, increasing the tax base, and creating economic opportunities. ➢ Promote the city's assets, such as rail port to a global audience for economic development purposes ➢ Participants stressed the importance of economic development, empowering organizations and initiatives focused on job creation and attracting investment. Changing the perception of the city, showcasing cultural vibrancy, and leveraging unique selling points are seen as crucial steps to attract businesses and talent. ➢ Collaboration among different stakeholders is highlighted as essential for driving economic growth. ➢ The group recognized the value of inclusivity and diversity in economic development. They discussed the need to support newcomers, provide services for different groups (e.g., international students, temporary foreign workers), and enhance communication in multiple languages to create a welcoming environment for all. 106 0-(!r Airport Accessibility and Commercial Opportunities In the pursuit of economic development, participants recognized the importance of airport accessibility and commercial opportunities. ➢ Limitations and challenges associated with the local airport, such as limited flights, high costs, competition from other airports, and a small terminal, are highlighted. ➢ Improving airport infrastructure and connectivity is seen as beneficial for both business -to - business (B2B) and business -to -consumer (B2C) relationships, fostering economic growth. ➢ To attract investment and generate revenue, participants emphasize the significance of positioning Saint John as a commercial destination and leveraging its port and airport advantages. Last Thoughts ➢ Data modeling and analysis were recognized as valuable tools to improve decision -making regarding transportation, active transportation, and infrastructure development. The participants discussed the significance of utilizing data to understand current and potential users of public transportation, as well as predicting future trends and demographics. Additionally, benchmarking against other cities, like Halifax, was emphasized as an essential means to learn from best practices and implement successful strategies in the pursuit of effective and efficient urban planning. ➢ The discussion also talked about challenges related to branding and perceptions of the city and region, highlighting confusion regarding responsibilities, jurisdictions, and resource allocation among different organizations. Participants emphasized the importance of clarifying roles, improving communication, and establishing a clear brand identity to effectively promote Saint John and overcome these challenges. ➢ Question to consider: Is there anything the City can take off its plate and give to someone else? ➢ Saint John has the reputation of being a closed system when looking for volunteers to sit on committees. As it is with other cities, any volunteer committee should have an open application system, screening process and selection taking place via a selection panel, comprised of Councillors and the Mayor or designate. 108 0-(!r �Al "r, LLLL ART pro, LPN - Now ipol lis9a, ■ 0 00 FA — 2024 General Fund Budget Timeline (Tentative Dates for Finance Committee) ➢October 12th — Finance Committee — Service Based Budget Presentation ➢October 25t" — Finance Committee — Present Draft Operating Budget with actual tax assessment for Receive and File ➢November 8th — Finance Committee — Final Draft Operating Budget for Approval and recommend to Common Council for Receive and File. ➢November 14t" — Common Council — 2024 Operating Budget for Receive and File ➢November 27t" — Common Council — 2024 Operating Budget for Approval. 2 110 6-R. SAINT JOHN 2024 Utility Fund Budget Timeline (Tentative Dates for Finance Committee) ➢October 25t" — Finance Committee — 2024 Operating Budget for Approval and Recommend to Common Council for Receive and File ➢October 30t" — Common Council — 2024 Operating Budget for Receive and File ➢November 14t" — Common Council — 2024 Operating Budget for Approval and First and Second Reading on Bylaw ➢November 27t" — Common Council — Third Reading of Bylaw 3 111 6-R. SAINT JOHN The City of Saint John 2024 Draft General Fund Operating Budget—� 2023 2024 Budget Budget Revenues Property Taxes 142,105,410 146,865,941 PILT Adjustment 64,323 - Equalization & Unconditional Grant 15,321,432 14,821,432 Regional Services Grant 546,630 - Surplus 2nd Year Previous Year 1,753,145 2,335,841 Transfer from Operating Reserves 800,000 - Growth & Community Services 4,327,812 5,396,963 Public Works & Transportation Services 5,599,798 7,164,027 Public Safety Services 1,976,432 1,992,114 Utilities & Infrastructure Services 317,000 316,000 Strategic Services 3,178,518 3,880,000 Corporate Services 285,000 459,000 Saint John Energy Benefits 1,012,000 1,200,000 Total Revenues 177,287,500 184,431,318 Expenditures Growth & Community Services 18,580,740 19,001,178 Public Works & Transportation Services 41,715,344 45,377,584 Public Safety Services 59,633,669 62,065,786 Utilities & Infrastructure Services 6,994,893 7,210,424 Strategic Services 7,917,074 8,330,096 Corporate Services 7,443,378 7,787,822 Other Charges 35,002,402 34,658,429 Total Expenditures 177,287,500 184,431,318 Surplus (Deficit) - - 112 City of Saint John by Service 2024 Draft General Fund Operating Budget Growth & Community Services Salaries Goods & Services TOTAL Public Works & Transportation Services Salaries Goods & Services TOTAL Public Safety Services Salaries Goods & Services TOTAL Utilities & Infrastructure Services Salaries Goods & Services TOTAL Strategic Services Salaries Goods & Services TOTAL Corporate Services Salaries Goods & Services TOTAL Other Charges Goods & Services TOTAL EXPENDITURES 2023 2024 Budget Budget 5,332,525 5,881,902 13, 248, 215 13,119, 276 18, 580, 740 19, 001,178 16, 645, 616 17, 230,405 25,069,728 28,147,179 41,715,344 48,826,474 10, 807,195 45,377,584 50,289,670 11,776,116 59,633,669 62,065,786 3,575,653 3,692,688 3,419,240 3,517,736 6,994,893 7,210,424 4,003,562 4,081,419 3,913,512 4,248,677 7,917,074 5,266,536 2,176, 842 7,443,378 35,002,402 35,002,402 177,287,500 8,330,096 5,478,409 2,309,413 7,787,822 34,658,429 34,658,429 184,431,318 113 The City of Saint John 2024 Draft General Fund Operating Budget 2023 2024 Budget Budget Revenues Property Taxes 142,105,410 146,865,941 PILT Adjustment 64,323 - Equalization & Unconditional Grant 15,321,432 14,821,432 Regional Services Grant 546,630 - Surplus 2nd Year Previous Year 1,753,145 2,335,841 Transfer from Operating Reserves 800,000 - Growth & Community Services 4,327,812 5,396,963 Public Works & Transportation Services 5,599,798 7,164,027 Public Safety Services 1,976,432 1,992,114 Utilities & Infrastructure Services 317,000 316,000 Strategic Services 3,178,518 3,880,000 Corporate Services 285,000 459,000 Saint John Energy Benefits 1,012,000 1,200,000 Total Revenues 177,287,500 184,431,318 Expenditures Growth & Community Services Growth & Community Planning Services 1,791,586 1,821,565 Development Services 220,600 220,600 Development Engineering 350,328 359,899 Community Development 608,695 628,626 Animal Control 109,250 109,250 Dangerous and Vacant Building Program 374,428 466,934 Minimum Property Standards 375,506 467,699 Heritage Conservation Service 203,654 203,259 Cultural Affairs 129,827 133,413 Other By -Laws 356,103 219,560 Permitting & Inspection Services 1,181,614 1,367,093 Regional Economic Development Agency 3,093,000 3,087,500 Market Square 2,250,000 2,250,000 Saint John Trade & Convention Centre 390,186 390,186 Imperial Theatre 295,714 295,714 Saint John Aquatic Centre 521,281 521,281 Saint John Arts Centre 178,408 178,408 TD Station 478,246 492,593 Library 487,597 487,636 City Market 1,144,015 1,178,138 114 The City of Saint John 2024 Draft General Fund Operating Budget 2023 2024 Budget Budget Growth & Community Services (Continued) Arts & Culture Board 70,000 70,000 Public Art Maintenance & Repair 16,000 16,000 Remembrance Day 1,500 3,500 New Year/Canada Day Celebrations 40,000 50,000 PRO Kids 109,693 127,288 Succeed & Stay 92,785 149,812 Local Immigration Partnership 86,424 94,254 Carleton Community Center 190,700 190,700 Loch Lomond Community Center 45,000 45,000 North End Community Center 174,876 190,313 Recreation Programming 666,282 716,443 Neighbourhood Development 170,000 172,000 YMCA - Contracted Services 157,560 157,560 Boys and Girls Club - Contracted Services 145,887 145,887 Unspecified Grants 234,000 234,000 Affordable Housing Strategy 105,719 234,510 Lifeguards 195,500 199,410 Play SJ 45,000 45,000 Lord Beaverbrook Rink 167,393 167,764 Building Incentive Reserve 350,000 350,000 Regional Services Commission 176,383 176,383 Community Services 800,000 586,000 Total Growth & Community Development Services 18,580,740 19,001,178 Public Safety Services Fire Rescue and Suppression Service 23,591,356 24,675,601 Fire Training 1,319 10,437 Technical Rescue Response 46,925 51,956 Hazardous Materials 69,984 74,535 Fire Prevention 908,059 918,407 Fire Investigation 66,123 68,317 Emergency Management Services 360,216 351,900 Water Supply and Hydrants 2,500,000 2,500,000 Public Safety Communications Centre 2,894,857 3,045,168 Street Lighting 1,060,000 1,060,000 Police Administration 1,987,488 2,198,585 Criminal Investigations 4,623,244 4,775,919 Police Commission 116,350 119,379 Automotive Equipment 1,106,149 1,215,641 115 The City of Saint John 2024 Draft General Fund Operating Budget 2023 2024 Budget Budget Public Safety Services (continued) Support Services 1,812,844 2,021,272 Detention 179,975 188,410 Police Operations 17,342,680 17,801,437 Stations and Buildings 966,100 988,820 Total Public Safety Services 59,633,669 62,065,786 Public Works & Transportation Services Snow Control Streets 5,601,737 5,535,587 Street Cleaning 1,605,543 1,632,277 Utility Cuts 919,782 1,516,853 Street Services - Surface Maintenance 7,448,639 8,374,169 Snow Control Sidewalk 1,034,591 1,150,172 Sidewalk Maintenance 712,014 901,088 Pedestrian & Traffic Management Service 2,343,221 2,446,000 Solid Waste Management 3,830,567 4,502,875 Landscape - Parks & Open Spaces 2,095,731 2,104,383 Rockwood Park 405,699 523,780 Urban Forestry 336,497 406,159 Saint John Horticultural Association 50,000 50,000 Arena Operation & Maintenance 1,375,297 1,483,721 Sportsfield Operation & Maintenance 1,228,942 1,272,892 Other Facilities Operation & Maintenance 548,513 583,524 Transit Debt 1,746,105 1,609,000 Transit Subsidy 5,630,640 6,462,619 Fleet Stockroom 354,448 341,455 Stormwater Rural 1,844,465 1,786,072 Parking Administration 942,723 951,286 Peel Plaza Parking Garage 389,616 407,651 Market Square Parking Garage 115,881 156,493 Off Street Parking 1,154,693 1,179,528 Total Public Works & Transportation Services 41,715,344 45,377,584 116 The City of Saint John 2024 Draft General Fund Operating Budget Utilities & Infrastructure Services Engineering 1,252,328 1,306,459 Carpenter Shop 371,482 386,968 Facilities Management 1,579,996 1,600,133 City Hall Building 1,014,205 1,021,696 GIS 413,258 445,442 Stockroom 246,122 217,642 Stormwater Urban 2,117,502 2,232,084 Total Utilities & Infrastructure Services 6,994,893 7,210,424 Strategic Services Finance 1,250,757 1,313,643 Assessment 1,701,756 1,752,809 Supply Chain Management 449,075 430,601 Information Technology 3,511,071 3,765,939 Corporate Planning 316,055 281,815 Insurance 138,360 210,289 Liability Insurance 550,000 575,000 Total Strategic Services 7,917,074 8,330,096 Corporate Services City Manager's Office 779,270 742,984 Mayor's Office 225,837 230,235 Common Council 602,503 635,684 Common Clerk 642,779 722,890 Human Resources 1,942,089 2,114,400 Legal Department 1,136,916 1,169,974 Real Estate 177,086 185,697 Saint John Industrial Parks 170,763 172,136 Barge Terminal 25,000 25,000 Customer Service 999,115 1,054,171 Corporate Communications 516,634 515,928 External Relations 225,386 218,723 Total Corporate Services 7,443,378 7,787,822 Other Charges Fiscal Charges 15,685,605 15,420,429 Landfill Closure 300,000 300,000 Special Pension Contributions 9,460,000 9,503,000 Transfer to Capital Reserves 3,771,797 3,000,000 Transfer to Operating Reserves 135,000 135,000 Capital from Operating 5,650,000 6,300,000 Total Other Charges 35,002,402 34,658,429 Total Expenditures 177,287,500 184,431,318 Surplus (Deficit) - - 117 The City of Saint John 2024 Draft Utility Fund Operating Budget Cam 14k 1 0 2023 2024 Budget Budget Expenditures Drinking Water Service Watershed Management 794,953 670,801 Water Treatment 8,768,620 9,078,376 Water Pumping & Storage 1,230,957 1,264,150 Transmission & Distribution 4,396,550 4,616,767 Customer Metering 720,634 700,303 Internal Charges 510,050 465,000 Other Charges 574,093 562,486 Debt Servicing 3,752,315 3,676,774 Capital from Operating 2,135,500 1,715,622 Total Drinking Water Service 22,883,671 22,750,279 Wastewater Service Wastewater Pumping 3,131,775 3,283,963 Wastewater Collection 3,039,799 3,190,409 Wastewater Treatment 6,054,322 6,104,198 Internal Charges 510,050 465,000 Other Charges 574,093 562,486 Debt Servicing 3,020,324 2,959,598 Capital from Operating 2,732,300 3,825,134 Total Wastewater Service 19,062,663 20,390,787 Infrastructure Management Engineering Services 709,668 777,836 Total Expenditures 42,656,002 43,918,902 118 1 The City of Saint John 2024 Draft Utility Fund Operating Budget 2023 2024 Budget Budget Revenues Flat Rate Accounts 22,250,000 22,250,000 Meter Rate Accounts 15,300,000 15,759,000 Fire Protection Levy 2,500,000 2,500,000 Storm Sewer Levy 925,000 945,000 Other Revenues 943,508 1,409,186 Transfer from Reserves 421,492 750,000 Previous Year's Surplus 316,002 305,716 Total Revenues 42,656,002 43,918,902 Annual Flat Rate - Water and Sewerage Meter Rates:/Cu.m. Block 1 - First 100 Block 2 - Excess of 100 Consumption based on Bi-monthly billings NOTE: Sewer Surcharge 80.35% of Water Charge $1,428 $1.9940 $1.2700 $1,428 $1.9940 $1.2700 119 2 SAINT JO DEPARTN D, & 9 N Saint John Fire Department 2024 Draft Operating Budget Fire Department 2023 Budget $ 2024 Budget $ Variance $ Fire Rescue and Suppression Services Fire Trains n g Technical Rescue Response Hazardous Materials Fire Prevention Fire Investigation 3,591,356 241675j601 11084, 45 11319 10,437 91118 46,925 51,956 5,031 69,984 74,535 4,551 908,059 918,407 10,348 66,123 68,317 21194 121 Saint John Fire Department 2024 Draft Operating Budget Fire Rescue and Suppression Services Fire Training ,59 1,56 11319 24,675,601 10,437 110 4,245 Priorities/Key Highlights/Variances • Fire Service Review input to 15-year strategic Plan to ensure efficacy /value / sustainability. • Personnel cost increase in 2024 related to promotions and progressions • Safety Supplies rapid increase in all cost 122 Saint John Fire Department 2024 Draft Operating Budget Fire Rescue and Suppression Services Fire Training ,59 1156 11319 24,675,601 10,437 Priorities/Key Highlights/Variances -Continued • Continue to build Peer Support: training, support, specialists — PTSD • Camp Courage — Creating career aspirations for underrepresented groups • IFSAC Scholarship /Sponsorship for vulnerable /priority sectors • Training allocations adjusted within Divisions 1,0841245 123 Saint John Fire Department 2024 Draft Operating Budget Technical Rescue Response Hazardous Materials Priorities/Key Highlights/Variances • Technical Rescue — High Angle / Extrication 46,925 51,956 5,031 69,984 74,535 4,551 • High Angle support to Saint John Water valued at 10,000s / plus increase reliability and confidence in stand-by Rescue Team • Specialized extrication training provides competence on complicated entrapments • Hazardous Materials • Provincial Stand -By Response Contract in excess of 100K/yr • Provincial Training Revenue 35K per year last 3 years and into 2024 • Inflation — Primary cause of increase in both budgets 124 Saint John Fire Department 2024 Draft Operating Budget Fire Prevention Fire Investigation 908,059 66,123 918,407 68,317 Priorities/Key Highlights/Variances • Operational personnel to enable deeper and more holistic examination of community • Training allocation adjustment • Newcomer information sessions and orientation 10,348 2,194 125 Saint John Fire Department 2024 Draft Operating Budget Emergency Management Services 360,216 351,900 Priorities/Key Highlights/Variances • Fire Department also manages the Emergency Management Services Utilizing the equivalent of 1.5 managers and .5 administration personnel. • SJEMO 1— 2 FTE's annually over the last 3 decades (8,316) • SJEMO Service — Federal Award for Excellence in EMO service utilizing ICS Emergency Management Model through numerous crisis • Simulation Theatre — Prepare for large scale emergencies • Attrition of senior employee provides lower salary of as junior employee progresses 126 Saint John Fire Department 2024 Draft Operating Budget Proposed Service Enhancements: Performance measures established and reported Diversity Equity and Inclusion • Increase awareness of DEI in service delivery both internal and external • Explore Scholarship Sponsorship Program to attain firefighter certification • Year 2 for Camp Courage 127 Saint John Fire Department 2024 Draft Operating Budget Proposed Service Enhancements: Continued 15-year strategic plan to focus on: • a safer community via enhanced fire prevention role of operational personnel • Assessment of call types /response to ensure appropriate response • Sustainability via adherence to Financial Policies • Defined service levels to be established ALL SUBJECT TO 15-YEAR STRATEGIC PLAN 128 GROWTH AND COMMUNITY SERVICES 2024 Draft Operating Budget Growth and Community Services 2024 Draft Operating Budget Key themes: • Delivering on 10-year strategic plan, catalytic growth initiatives & growth plans • Immigration Strategy, City Market Strategic Plan, Affordable Housing Action Plan, Neighbourhood Planning • Focus on quality of life, social cohesion, and efforts to build more welcoming, inclusive community • Continuous improvement of programs and services • Leveraging external partnerships and funding 130 Growth and Community Services 2024 Draft Operating Budget Growth & Community Planning Services Development Services Development Engineering Permitting & Inspection Services Priorities/Key Highlights • North end Neighbourhood Plan 1,791,586 1,821,565 29,979 220,600 220,600 - 350,328 359,899 9,571 1,181,614 1,367,093 185,479 • North end & Central Peninsula Learning Commons and Community Hub support 131 Growth and Community Services 2024 Draft Operating Budget Minimum Property Standards 375,506 467,699 92,193 Dangerous and Vacant Building Program 374,428 466,934 92,506 Other By -Laws 356,103 219,560 (136,543) Animal Control 109,250 109,250 - Priorities/Key Highlights • Community Enhancement Pilot program 2024 - $171,000 (offset from Community Services Reserve): • Enhanced service levels in Minimum Property Standards & Vacant and Dangerous Buildings programs 132 Growth and Community Services 2024 Draft Operating Budget Heritage Conservation Service Cultural Affairs Arts & Culture Board Public Art Maintenance & Repair Priorities/Key Highlights • Civic Commemoration Policy implementation • NB Museum 203,654 203,259 (395) 129,827 133,413 31586 70,000 70,000 - 16,000 16,000 - • Arts and Culture I Heritage Grants —Status Quo 133 Growth and Community Services 2024 Draft Operating Budget City Market 1,1441015 1,178,138 34,123 Priorities/Key Highlights/Variance • Implementation of the City Market Strategic Plan. • South Market Street • Enhanced Marketing Plan and New Branding for the City Market • Governance • Updated Leasing Procedures 134 Growth and Community Services 2024 Draft Operating Budget Affordable Housing Strategy Succeed & Stay Local Immigration Partnership Community Services Priorities/Key Highlights/Variance 105,719 92,785 86,424 800,000 234,510 149,812 94,254 586,000 128,791 57,027 7,830 (214,000) • Implementation of Affordable Housing Action Plan including pursuit of external funding partnerships and research related to Municipal Housing Entity • Funding to support delivery of the immigration strategy in partnership with Envision and other levels of government • Funding for the community services reserve reflects commitments for community enhancement pilot • Housing Accelerator Fund Application — TBD 135 Growth and Community Services 2024 Draft Operating Budget Carleton Community Center Loch Lomond Community Center North End Community Center Recreation Programming Neighbourhood Development YMCA - Contracted Services Boys and Girls Club - Contracted Service PRO Kids Lifeguards Play SJ 190,700 190,700 - 45,000 45,000 - 174,876 190,313 15,437 666,282 716,443 50,161 170,000 172,000 2,000 157,560 157,560 - 145,887 145,887 - 109,693 127,288 17,595 195,500 199,410 3,910 45,000 45,000 - 136 Growth and Community Services 2024 Draft Operating Budget Recreation (Continued) Priorities/Key Highlights/Variance • Continuation of enhanced recreational programs • Recreation subsidization review • Phase two review of Community centre agreements 137 Growth and Community Services 2024 Draft Operating Budget Building Incentive Reserve Unspecified Grants New Year/Canada Day Celebrations Remembrance Day Priorities/Key Highlights/Variance 350,000 350,000 - 234,000 234,000 - 40,000 50,000 10,000 1,500 3,500 2,000 • Continued funding for the suite of City's grant programs, Urban development incentives and community grants. • Reflects cost escalation to stage City sponsored civic celebrations. 138 Growth and Community Services 2024 Draft Operating Budget Community Development 608,695 628,626 19,931 Priorities/Key Highlights • Onboarding of community inclusion portfolio • Delivery of a Homelessness Strategy in Partnership with the Province and initial work to prepare a Social Plan 139 Growth and Community Services 2024 Draft Operating Budget Regional Economic Development Agency Market Square Saint John Trade & Convention Centre Imperial Theatre Saint John Aquatic Centre Saint John Arts Centre TD Station Library Lord Beaverbrook Rink Regional Services Commission 3,093,000 2,250,000 390,186 295,714 521,281 178,408 478,246 487,597 167,393 176,383 3,087,500 (5,500) 2,250,000 - 390,186 - 295,714 - 521,281 - 178,408 - 492,593 14,347 487,636 39 167,764 371 176,383 - Services are managed through Regional Service Commission & Contractual Agreements 140 Growth and Community Services 2024 Draft Operating Budget Potential Service Enhancements: • Community enhancement program pilot • Continuity of support for delivery of the Succeed and Stay Immigration Strategy • Affordable Housing Support, opportunity to leverage significant funding through the CMHC Housing Accelerator Program • Implementation of the City Market Strategic Plan • Potential Rate adjustments as a result of recreation subsidy review • Grants & Incentives • Addressing Homelessness/ Social Plan &Harm Reduction 141 f•1 e '. SAINT JOHN TRANSIT COMMISSION 2024 Draft Operating Budget SAINT JOHN TRANSIT 142 Background 2020 • A Stantec report / Service review was completed • 103 Recommendations • Pandemic is full swing, Ridership / revenue is low, decreased staff and service hours 2021 & 2022 • Still in Pandemic • Ridership / revenue is low • KV cancelled a Comex route (500 Service Hours) • Increased revenue slightly • Added numerous Technology items to add value to service. • Spare App — On demand • Opti-Bus — Scheduling • Transit Royale - Way finding and Payment integration • Masabi — Electronic Fare Payment Note: 2022 finished with a ($216k) deficit. 143 Current Day • Fleet fit up to Transit tender awarded and project to start early January 2023. • January 2023 Implementing On -demand service West. In July, service is enabled in the North. Intuitively we are saving on fuel costs, however this is to be quantified as a part of the Pilot findings. • Technology - we have acquired aCAD / AVL System. • We will finish the year with 89,500 Service hours. • Projecting a deficit YE finish largely due to over budgeted Revenue and under budgeted Fuel expense. Trending toward a $772K 144 New Cost Model Calculation 2023June 2022 2021 2020 2019 2018 2017 2016 2015 2014 Total Cost of $ 5,046,828 $ 9,932,510 $ 8,015,628 $ 8,869,104 $ 10,826,510 $ 10,569,051 $ 10,105,385 $ 10,293,370 $ 10,004,689 $ 10,473,464 Operations Revenue $ 1,864,460 $ 3,750,946 $ 2,857,092 $ 3,071,541 $ 4,813,284 $ 4,861,008 $ 4,551,288 $ 4,494,426 $ 4,582,170 $ 4,781,539 Revenue as % of Total Operating 36.94% 37.76% 35.64% 34.63% 44.46% 45.99% 45.04% 43.66% 45.80% 45.65% Costs Exiting Enter Pandemic AVG 45% Pandemic Service Hours as 72928 73403 80926 97721 96243 96243 97395 97785 102028 of December 315t Net Cost per (Total Cost of Operations - $ 84.76 $ 70.28 $ 71.64 $ 61.53 $ 59.31 $ 57.71 $ 59.54 $ 55.45 $ 55.79 Service Hour Revenue) Service Hours / Revenue per Revenue / Service Hours $ 51.43 $ 38.92 $ 37.95 $ 49.26 $ 50.51 $ 47.29 $ 46.15 $ 46.86 $ 46.86 Service Hour City Funding $ 6,181,564 $ 5,158,535 $ 5,797,563 $ 6,013,226 $ 5,708,043 $ 5,554,097 $ 5,798,944 $ 5,422,519 $ 5,691,925 Requirement 145 10 Year Strategic Plan ✓Build a reliable, convenient public transit service to increase ridership by 10% over pre -pandemic levels ✓Create along-term strategic plan for Saint John Transit that includes stable, predictable funding levels ✓Migrate buses and City vehicles to low carbon fuel in accordance with the Public Transit and Fleet Low Carbon Migration Strategy ✓Create an Uptown hub system to support the efficient movement of transit buses 146 Zero Emission Transit Fund ✓Zero Emission Transit Funding application for $22,580,000 was approved at Finance Committee March 2021 ✓Application submitted early July 2023 — clarification questions are being asked ✓The application includes 24 zero emission buses - operational cost impact to be determined ✓Application includes an uptown charging facility — operational cost impact to be determined 147 2024 Operating Budget Challenges • We are in process with collective bargaining • Net operational cost implication of Fleet moving into Transit to be rationalized • Fuel costs are erratic and high. • We have added annual Technology costs of $345,,000 —too early to realize service value • Revenue /Ridership has not returned to pre -pandemic levels —while changing positively, rate of change is unpredictable • Assuming success with the ZETF application, operational cost impact is not yet known M. Saint John Transit Commission 2024 Draft Operating Budget Operating Revenues Priorities/Key Highlights/Variances 4,301,961 4,141,483 (160,478) • Revenue projections are more in line with ridership rate of change • Time is needed to mature our technology implementation and unlock full ridership / revenue value • Fare Policy approved at last Transit Commission meeting July 27tn • Continued communications with UNBSJ and NBCCSJ on UPass potential 149 Saint John Transit Commission 2024 Draft Operating Budget Operating Expenditures Priorities/Key Highlights/Variances • Collective Bargaining • Taken a best conservative estimate on Fuel costs 9,932,601 10,604,103 671,502 • Time is needed to mature our technology implementation and unlock full cost benefit / return • Rationalize the financial impact of Fleet occupying a portion of the Transit Facility • The 2024 Operating budget draft has zero additional service hours built in 150 Saint John Transit Commission Draft 2024 Operating Budget Operating Revenues Operating Expenditures im! City Operating Subsidy 4,301,961 9,932,601 5,630,640 41141,483 10,604,103 6,462,620 (160,478) 671,502 831,980 151 Saint John Transit 2024 Draft Operating Budget Questions? 152 illaimlouli I 11 - - } f RLr— IIL .� �. -4 q6L' _a.6jw wc . 1 .• 1 L . f - •� r 1 IL x 1 1 Saint John Water 2024 Draft Operating Budget Flat Rate Accounts Meter Rate Accounts Fire Protection Levy Storm Sewer Levy Other Revenues Prior Year's Surplus Drinking Water Service Wastewater Service Infrastructure Management 22,250,000 15,300,000 2,500,000 925,000 1,365,000 316,002 22,883,671 19,062,663 709,668 22,250,000 15,759,000 2,500,000 945,000 2,159,186 305,716 22,750,279 20,390,787 777,836 459,000 20,000 794,186 (10,286) (133,392) 1,328,124 68,168 i Saint John Water 2024 Draft Operating Budget -Revenue Flat Rate Accounts Meter Rate Accounts Fire Protection Levy Storm Sewer Levy Other Revenues 22,250,000 221250,000 - 15,300,000 2,500,000 925,000 1,365,000 15,75%000 459,000 2,500,000 - 945,000 20,000 2,159,186 794,186 Prior Year's Surplus 316,002 305,716 (10,286) 155 Saint John Water 2024 Draft Operating Budget- Revenue Priorities/Key Highlights/Variances • No Rate Increase for Residential Customers —Annual flat rate to remain at $1,,428 (Rate has been held for 6 consecutive years, despite inflationary pressures) • No Rate Increase for Commercial Potable Customers — Meter Consumption and Fixed Charge will remain same. • Meter Revenue anticipated to continue to increase year over year. • Other Revenue increase largely attributed to interest revenues due to higher interest rates —This increase is considered nonrecurring and will be offset by increase if Capital from Operating for 2024 156 Saint John Water 2024 Draft Operating Budget Drinking Water Service Wastewater Service Infrastructure Management 22,883,671 19,062,663 709,668 Priorities/Key Highlights/Variances • Industrial Water Budget under final development 22,750,279 20,390,787 777,836 (133,392) 1,328,124 157 Saint John Water 2024 Draft Operating Budget Priorities/Key Highlights/Variances (continued) • Leak detection of entire East water distribution system, repair identified leaks to minimize water loss and improve water system efficiency and reliability • Fire Hydrant Inspection & Painting Program (repaint approx. 25% and inspect approx. 33% of the 2,100 in inventory) • Wastewater Collection - Increased funding in the trenchless technology programs to complete more sanitary pipe repairs though pipe patching. Reduces the need to excavate pipes, repair and reinstate asphalt. 158 Leak Saint John Water 2024 Draft Operating Budget Priorities/Key Highlights/Variances (continued) • Water reservoir (tank) inspections and Phase 1 of rehabilitation of water distribution system reservoirs. • Wastewater Treatment Dredging of the Lancaster Lagoon. 159 Saint John Water 2024 Draft Operating Budget Proposed Service Enhancements • Focus for the Utility will be on the infrastructure deficit. • The Utility is balancing the need to replace aging infrastructure to support growth with need to replace infrastructure to ensure service levels can be met. • Examining opportunities for revenue increases within existing service areas • Non -forecasted revenues to be used towards infrastructure • Holding rates is equivalent to a rate decrease when accounting for increases in expenses 160