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2023-11-22 Finance Committee Minutes - Open SessionFinance Committee Meeting Open Session November 22, 2023 MINUTES —OPEN SESSION FINANCE COMMITTEE MEETING NOVEMBER 22, 2023 AT 4:30 PM MEETING CONDUCTED BY ELECTRONIC PARTICIPATION Present: Mayor D. Noade Reardon Councillor G. Sullivan Councillor G. Norton Councillor D. Hickey Councillor P. Radwan Also Present: Chief Administrative Office B. McGovern Commissioner of Finance and Treasurer K. Fudge Acting Commissioner Growth & Community Services A. Poffenroth Fire Chief K. Clifford Commissioner Public Works & Transportation M. Hugenholtz Commissioner Utilities & Infrastructure I. Fogan Senior Manager Human Resources K. Shannon Director Financial Services J. Forgie City Solicitor J. Boucher Director Financial Services C. Lavigne Intermediate Accountant V. Parikh Director Corporate Performance S. Rackley-Roach Director Growth & Community Services D. Dobbelsteyn ERP Project Manager R. VanWart Senior Manager Community Support Services C. Coes Administrative Assistant A. MacLean Administrative Assistant K. Tibbits 1. Meeting Called to Order Councillor Sullivan called the Finance Committee open session meeting to order. 2. Approval of Minutes 2.1 Minutes of November 8, 2023 Moved by Mayor Noade Reardon, seconded by Councillor Radwan: RESOLVED that the minutes of November 8, 2023 be approved. MOTION CARRIED. 3. Approval of Agenda Moved by Mayor Noade Reardon, seconded by Councillor Norton: RESOLVED that the agenda of November 22, 2023 be approved. MOTION CARRIED. 4. Disclosures of Conflict of Interest Finance Committee Meeting Open Session November 22, 2023 No disclosures. 5. Consent Agenda 6. Business Matters 6.1 Enterprise Resource Management Ms. VanWart reviewed the submitted presentation "Enterprise Resource Planning System" and provided an overview of the project in terms of ERP Goals, the project leadership and project team as well as the project timeline, next steps, and project implementation. Moved by Mayor Noade Reardon, seconded by Councillor Radwan: RESOLVED that the submitted presentation entitled "Enterprise Resource Planning System" be received for information. MOTION CARRIED. 6.2 2024 Proposed General Fund Operating Budget Mr. Fudge noted that the proposed 2024 General Operating Budget was first presented to the Finance Committee on November 8t". The Committee was asked for feedback with respect to an increase to the Heritage Fund grant, and/or any additional feedback. It is recommended that this proposed budget be forwarded to the next meeting of Common Council for a receive and file. Moved by Mayor Noade Reardon, seconded by Councillor Hickey: RESOLVED that as recommended in the submitted report "2024 Proposed General Fund Operating Budget" the Finance Committee approve the proposed 2024 General Fund Operating Budget and forward it to the next meeting of Common Council for receive and file and endorse the following: RESOLVED: 1. That the sum of $187,800,682 be the total Operating Budget of the City of Saint John for 2024. 2. That the sum of $150,579,477 be the Warrant of the City of Saint John for 2023. 3. That the tax rate for the City of Saint John be set at $1.58. 4. That the City of Saint John set the property tax rate for Heavy Industrial Class at 1.7 times the residential rate. 5. That the City of Saint John set the property tax rate for Non -Residential Class at 1.7 times the residential rate. 6. That Management Professional Group receive a wage increase of 3.5% for 2024. MOTION CARRIED. 6.3 2024 Utility Fund Operating Budget Mr. Fogan reviewed the submitted presentation entitled "2024 Utility Fund Operating Budget". It represents the sixth consecutive year with no rate increases for ratepayers, which include both flat rate customers, which will see the annual cost remain at $1,428 per year, and metered customers who will not see changes in the cost per cubic meter and meter charges. The budget also includes rates for the Industrial Raw Water customers. Rate stabilization has been achieved for rate payers for the past six years despite the Utility experiencing stagnate revenues and increasing costs. Moved by Mayor Noade Reardon, seconded by Councillor Hickey: RESOLVED that the Finance Committee approve the proposed 2024 Utility Fund Operating Budget and forward to the next meeting of Common Council for approval of the first and second reading of Water and Sewerage Bylaw amendments. MOTION CARRIED. 6.4 2023 Fall Debenture Issue Mr. Fudge noted that the purpose of this report is to seek Finance Committee and Council approval to issue internal debentures to borrow funds for General Capital projects approved by Council and for the Utility fund that has an existing debenture that matured and requires refinancing. Finance Committee Meeting Open Session November 22, 2023 Staff are seeking to issue these debentures internally by using the City's own reserve funds, rather than the traditional route of borrowing through the New Brunswick Municipal Finance Corporation. The City will be able to redirect the interest paid on debentures directly back to itself. The estimated savings for both Utility and General Fund will amount to approximately $1.672M over the term of the debentures, along with additional savings for the General Fund, by borrowing over 10 years rather than the traditional 15-year term. Moved by Mayor Noade Reardon, seconded by Councillor Radwan: RESOLVED that the Finance Committee endorse the following recommendations and forward a copy of this report to Common Council for approval: RESOLVED that occasion having arisen in the public interest for the following Public Civic Works and needed Civic Improvements that the City of Saint John proposes issue of the following debentures to be dated on or after December 12, 2023: GENERAL FUND —10 years Transportation $ 750,000 Recreation and Culture $5,250,000 TOTAL $ 6,000,000 UTILITY FUND — 5 years Refinance Debenture AZ-12 2008 $875,000 MOTION CARRIED. 7. Adjournment Moved by Mayor Noade Reardon, seconded by Councillor Hickey: RESOLVED that the Finance Committee meeting be adjourned. MOTION CARRIED. The Finance Committee open session meeting held on November 22, 2023, was adjourned at 5:45 pm.