2024-11-18 Finance Committee Agenda Packet - Open Session
Finance Committee Meeting
Open Session
October 23, 2024
MINUTES OPEN SESSION FINANCE COMMITTEE MEETING
OCTOBER 23, 2024 AT 4:45 PM
MEETING CONDUCTED BY ELECTRONIC PARTICIPATION
Present: Mayor D. Noade Reardon
Councillor G. Sullivan
Councillor G. Norton
Councillor P. Radwan
Absent: Councillor D. Hickey
Also
Present: Chief Administrative Office B. McGovern
Commissioner of Finance and Treasurer K. Fudge
Fire Chief R. Nichol
Commissioner Human Resources S. Hossack
Commissioner Utilities & Infrastructure I. Fogan
Commissioner Growth & Community Services A. Poffenroth
Director Transit & Fleet I. MacKinnon
Director Financial Services J. Forgie
Director Financial Services C. Lavigne
Intermediate Accountant V. Parikh
Director Corporate Performance S. Rackley-Roach
Director Asset Management S. Yammine
Corporate Asset Manager B. Neal
Director Parking and Parks & Recreation M. Dionne
Director Legislative Services / City Clerk J. Taylor
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 September 18, 2024
Moved by Mayor Noade Reardon, seconded by Councillor Norton:
RESOLVED that the minutes of September 18, 2024 be approved.
MOTION CARRIED.
3. Approval of Agenda
Moved by Mayor Noade Reardon, seconded by Councillor Radwan:
RESOLVED that the agenda of October 23, 2024 be approved.
MOTION CARRIED.
4. Disclosures of Conflict of Interest
No disclosures.
Finance Committee Meeting
Open Session
October 23, 2024
5. Consent Agenda
6. Business Matters
6.1 Memorandum of Understanding Uptown Saint John Inc.
(N. Tissington, Executive Director of Uptown Saint John joined the meeting)
Commissioner Fudge reviewed the submitted report noting that the proposed MOU between the City and
Uptown SJ would form a partnership in order to leverage funding from other levels of government to
improve the uptown area. Uptown SJ is eligible to apply annually for funding through Downtown New
Brunswick for up to $20K for capital projects and $10K
for planning projects. Uptown Saint John is interested in partnering with the City to provide matching
funds for projects identified in accordance with the Memorandum of Understanding.
Moved by Councillor Norton, seconded by Councillor Radwan:
RESOLVED that the Finance Committee recommends Common Council approve and execute the
Memorandum of Understanding between the City of Saint John and Uptown Saint John Inc.
MOTION CARRIED.
(N. Tissington withdrew from the meeting)
6.2 State of the Infrastructure Update
2024 State of the Infrastructure Report
the state of municipal infrastructure, and also estimated long-term capital expenditures needed
to sustainably renew and replace existing infrastructure assets.
Moved by Mayor Noade Reardon, seconded by Councillor Norton:
RESOLVED that the submitted presentation entitled "2024 State of the
for information.
MOTION CARRIED.
6.3 2025 Draft General Fund Operating Budget
Director Lavigne reviewed the submitted presentation entitled "2025 Draft General Fund Operating
Budget.
Moved by Mayor Noade Reardon, seconded by Councillor Radwan:
RESOLVED that the Finance Committee receive and file the presentation and direct any questions to staff.
MOTION CARRIED.
6.4 2025 Draft Utility Fund Operating Budget
Commissioner Fogan reviewed the submitted presentation entitled "Saint John Water 2025 Draft Potable
Operating Budget
Moved by Mayor Noade Reardon, seconded by Councillor Radwan:
RESOLVED that the Finance Committee receive and file the presentation and direct any questions to staff.
MOTION CARRIED.
7. Adjournment
Moved by Councillor Norton, seconded by Mayor Noade Reardon:
RESOLVED that the Finance Committee meeting be adjourned.
MOTION CARRIED.
The Finance Committee open session meeting held on October 23, 2024, was adjourned at 6:00 p.m.
REPORT TO FINANCE COMMITTEE
M&C Number
Report DateNovember 12, 2024
Meeting DateNovember 18, 2024
Chairman Sullivan and Members of Finance Committee
SUBJECT: Amendment to the Wage Escalation Policy FAS-007
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Common Council.
AUTHORIZATION
Primary AuthorChief Financial OfficerChief Admin Officer
Kevin FudgeKevin FudgeJ. Brent McGovern
RECOMMENDATION
It is recommended that:
1.The Finance Committee approve the amended Wage and Benefits
Budget Escalation Policy,and
2.The Finance Committee recommends that Common Council amend the
City of Saint John Wage and Benefits Budget Escalation Policy FAS-007.
EXECUTIVE SUMMARY
The Wage and Benefits Budget Escalation Policy is an important part of a Long-
Term Financial Plan toensure wage and benefit budgets are affordable for
taxpayers.The Policy supportsthe Cityin achieving the performance goals in
Plan.
The amendment to the Policy is being brought forward to add a definition to the
calculation of the Consumer Price Index (CPI) +1 provision of the policyas
described in section 4.1.3.
PREVIOUS RESOLUTION
N/A
- 2 -
STRATEGIC ALIGNMENT
The Wage and Benefits Budget Escalation Policy is aligned with Council Priority
to Perform
REPORT
Long-Term Financial Plan a number of key financial policies
were adopted to put the City on a sustainable path forward. The Wage & Benefits
Budget Escalation Policy embeds a framework to ensure financial policies are
reviewed periodically. The original Wage Escalation Policy was adopted on
September 24, 2019 and included the following objectives:
Objectives of the Wage Escalation Policy:
The City spends within its means;
Wage and benefit budget escalation does not cause a tax rate increase
in order to balance the General Operating Budget;
Wage and benefit budget escalation does not cause a reduction in
service levels in order to balance the General Operating Budget;
Wage and benefit budget escalation does not exceed the
recurring revenue;
Application:
The City Manager shall recommend increases to the wage and benefit
budget in accordance with the Wage and Benefit Escalation Policy;
Recommendations for wage and benefit budget increases shall be
based on a three year rolling average of recurring revenue growth;
Wage and benefit budget increases shall not exceed CPI plus 1% unless
supported by a business case and approved by Common Council.
September year over year to
calculate CPI and approve the Wage and Benefit Escalation Policy rate for each
year. September year over year was used to ensure the most current CPI figure
applied to the calculation.
To avoid uncertainty as well to incorporate a risk management strategy to smooth
the risk of fluctuation in CPI without compromising the use of the most current
figures, staff recommend the following:
1. The Wage Escalation Policy be amended to include the definition of
consumer price index.
2. New Brunswick Consumer Price Index be used in the formula.
- 3 -
3. The average of NB CPI for the months of January September be used in
the formula to smooth risk of fluctuation while still leveraging current year
inflation data.
The Amendment to the calculation of CPI would have had no impact on the 2024
Wage and Benefit Escalation Policy had the recommendations in this report been
used as demonstrated below:
2024 Wage Escalation Policy
JanFebMarAprMayJunJulAugSep
6.50%5.90%4.20%4.30%2.30%2.10%2.90%3.50%4.00%
Average4%
Conclusion
The Wage and Benefits Budget Escalation Policy is needed to ensure revenue
growth is sufficient to fund expense growth, preventing structural deficits. The
amendment to the Wage Escalation Policy will continue to mitigate the risk of the
City falling into future structural deficits while increasing transparency of
calculation within the policy.
SERVICE AND FINANCIAL OUTCOMES
The Wage and Benefits Budget Escalation Policy is aligned with Council Priorities
and will contribute to the successful implementation of the Long-Term Financial
Plan.
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
Input has been received from CAO, Finance, Human Resources
ATTACHMENTS
Amended Wage and Benefits Budget Escalation Policy FAS-007
Title: Wage and Benefits Budget Escalation Policy
Subject: Wage and Benefit budget increases Category: Finance and Administrative Services
Policy No.: FAS-007 M&C Report No.:
Effective Date: November 25, 2024 Next Review Date:
Area(s) this policy applies to: Cross Corporate Office Responsible for review of this Policy:
Finance and Administrative Services
Related Instruments: Policy Sponsors:
FAS-001 Asset Management Policy Chief Administrative Officer
FAS-002 Investment Management Policy Chief Financial Officer
FAS-003 Reserves Policy
FAS-004 Operating Budget Policy
FAS-005 Capital Budget Policy
FAS-006 Debt Management Policy
Document Pages:
This document consists of 4 pages.
Revision History:
September 24, 2019
Common Clerk's Annotation for Official Record
Date of Passage of Current Framework: _________________________
I certify that this Policy was adopted by Common Council as indicated
above.
________________________ ______________________
Common Clerk Date
Date Created: Common Council Approval Date: Contact:
Finance and Administrative Services
City of Saint John
Wage and Benefits B´£¦¤³ Escalation Policy
(DRAFT)
TABLE OF CONTENTS
1.
2. POLICY STATEMENT ..................................................................................................... . 3
3. DEFINITIONS ................................................................................................................... 3
4. PRINCIPLES AND APPLICATION ..................................................................................... 3
5. ROLES AND RESPONSIBILITIES ....................................................................................... 4
2
City of Saint John
Wage and Benefits B´£¦¤³ Escalation Policy
(DRAFT)
1. PURPOSE AND CONTEXT
1.1. The -term financial plan has put the City on a sustainable path and to
continue to be sustainable, the City must find ways to control costs that have been
escalating faster than its revenue growth.
1.2. To be sustainable, wage increases should not exceed assessment base growth.
1.3. Wage and Benefits Budget Escalation policy provides direction to staff and ensures
that ability to pay is a consideration in future labor contract negotiations.
2. POLICY STATEMENT
2.1. The Wage and Benefits Budget Escalation Policy is established to ensure that the City
is on a sustainable path by aligning expenditure growth with tax base growth.
2.2. The Wage and Benefits Budget Escalation policy objectives are as follows:
The City spends within its means.
Wage and Benefits Budget Escalation does not cause a tax rate increase in
order to balance the General Operating Budget.
Wage and Benefits Escalation does not cause a reduction in service levels in
order to balance the General Operating Budget.
Wage and Benefits Budget Escalation
assessment base growth.
All employee groups are treated equitably.
3. DEFINITIONS
Municipal Assessment Base for Tax Purposes means the total amount of
property values for property tax purposes.
Assessment Base Growth means the percentage increase in the Municipal
Assessment Base on an annual basis.
4. PRINCIPLES AND APPLICATION
4.1 Principles:
4.1.1 Wage and benefit budget increases must be affordable.
4.1.2 Wage and benefit budget increases must not exceed the assessment base
growth.
3
City of Saint John
Wage and Benefits B´£¦¤³ Escalation Policy
(DRAFT)
4.1.3 Notwithstanding clause 4.1.2, wage and benefits budget increases cannot
exceed the average of NB CPI for the months of January to September plus
1% in the prior year of annual budget (Example 2025 Operating Budget
would use January to September 2024 NB CPI for calculation), unless it is
supported by a business case and approved by Common Council.
4.1.4 Bargaining or non-bargaining employees are treated equitably.
4.2 Application:
4.2.1 The City Manager shall recommend increases to wages and benefits budget
in accordance with the Wage and Benefits Escalation Policy.
4.2.2 Recommendations for increase in the wage and benefit budget shall be
based on the previous three-year rolling average of Assessment Base
Growth.
4.2.3 Utilizing a Three-Year Rolling Average is a recommended approach due to
the following factors:
The fluctuation in the assessed value of properties for tax purposes
will be smoothed out by the rolling average.
Historical trend can help predict future growth.
The Three-Year Rolling Average is a reliable source of information
that can be validated.
A compensation model based on the Three-Year Rolling Average is
predictable, affordable and equitable.
Example of a 3-year rolling average of assessment base growth:
2017201820193-Year Rolling Average
0.59%0.39%1.86%0.95%
4.2.4 In any case, the increase in the wage and benefit budget shall not exceed the
average of New Brunswick CPI from January to September plus 1% for the
calendar year unless it is supported by a business case and approved by
Common Council.
Example of calculation of NB CPI plus 1% for the calendar year:
2024 Calendar Year
JanFebMarAprMayJunJulAugSep
6.5%5.9%4.2%4.3%2.3%2.1%2.9%3.5%4.0%
Average4.0%
4
City of Saint John
Wage and Benefits B´£¦¤³ Escalation Policy
(DRAFT)
4.2.5
recommendation may result in a corresponding reduction in the workforce
of those groups.
5. ROLES AND RESPONSIBILTIES
5.1 Council shall:
5.1.1 Approve the Wage and Benefits Budget Escalation Policy.
5.1.2 Direct staff to use the three-year rolling average of the assessment base
growth in future contract negotiations.
5.2 Finance Committee shall:
5.2.1 Recommend the Wage and Benefits Budget Escalation Policy to Common
Council for approval.
5.2.2 Review any changes to the Wage and Benefits Budget Escalation Policy in the
future.
5.3 The Chief Financial Officer:
5.3.1 Review annually to ensure that the total city wage and benefit budget
increases are in compliance with the Wage and Benefits Escalation Policy.
5.3.2 Update the three-year rolling average of the assessment base growth on an
annual basis and make the information available to Human Resources and
all employee groups.
5.3.3 Recommend any changes to the Wage and Benefits Budget Escalation policy
in the future.
5
November 18, 2024
Finance Committee
2025 Draft General Fund Operating Budget
The City of Saint John
2025 General Fund Operating Budget
20252024
BudgetBudget
$$
Revenues
Property Taxes 156,964,319 150,579,477
PILT Adjustment 23,453 -
Equalization & Unconditional Grant 12,803,691 13,773,579
Regional Services Grant 1,006,997 1,009,640
Surplus 2nd Year Previous Year 272,858 2,335,841
Transfer from Operating Reserves 621,000 1,330,000
Growth & Community Services 7,201,811 4,505,063
Public Works & Transportation Services 6,683,079 6,378,970
Public Safety Services 2,708,313 1,992,113
Utilities & Infrastructure Services 340,635 316,000
Strategic Services 4,739,857 4,380,000
Saint John Energy Benefits 1,000,000 1,200,000
Total Revenues 1 94,366,011 1 87,800,682
Expenditures
Growth & Community Services 22,588,866 19,451,789
Public Works & Transportation Services 49,476,188 47,707,866
Public Safety Services - Fire, EMO and PSCC 33,675,248 32,507,008
Public Safety Services - Police Commission 30,751,388 29,537,474
Utilities & Infrastructure Services 5,453,727 5,106,674
Strategic Services 9,048,739 8,610,102
Corporate Services 8,490,014 8,295,166
Other Charges 34,881,842 36,584,604
Total Expenditures 1 94,366,011 1 87,800,682
Surplus (Deficit) - -
City of Saint John by Service
2025 General Fund Operating Budget
20252024
BudgetBudget
$$
Growth & Community Services
Salaries 7,138,317 6,207,974
Goods & Services 15,450,548 13,243,814
TOTAL 22,588,866 1 9,451,789
Public Works & Transportation Services
Salaries 18,454,916 17,780,854
Goods & Services 31,021,272 29,927,012
TOTAL 49,476,188 4 7,707,866
Public Safety Services - Fire, EMO and PSCC
Salaries 26,733,140 25,686,798
Goods & Services 6,942,108 6,820,210
TOTAL 3 3,675,248 3 2,507,008
Public Safety Services - Police Commission
Grant 30,751,388 29,537,474
TOTAL 3 0,751,388 2 9,537,474
Utilities & Infrastructure Services
Salaries 3,253,673 3,184,021
Goods & Services 2,200,054 1,922,653
TOTAL 5 ,453,727 5 ,106,674
Strategic Services
Salaries 4,704,798 4,353,217
Goods & Services 4,343,941 4,256,885
TOTAL 9 ,048,739 8 ,610,102
Corporate Services
Salaries 6,125,397 5,740,434
Goods & Services 2,364,617 2,554,732
TOTAL 8 ,490,014 8 ,295,166
Other Charges
Goods & Services 34,881,842 36,584,604
3 4,881,842 3 6,584,604
TOTAL EXPENDITURES 1 94,366,011 1 87,800,682
The City of Saint John
2025 General Fund Operating Budget
20252024
BudgetBudget
$$
Revenues
Property Taxes 156,964,319 150,579,477
PILT Adjustment 23,453 -
Equalization & Unconditional Grant 12,803,691 13,773,579
Regional Services Grant 1,006,997 1,009,640
Surplus 2nd Year Previous Year 272,858 2,335,841
Transfer from Operating Reserves 621,000 1,330,000
Growth & Community Services 7,201,811 4,505,063
Public Works & Transportation Services 6,683,079 6,378,970
Public Safety Services 2,708,313 1,992,113
Utilities & Infrastructure Services 340,635 316,000
Strategic Services 4,739,857 4,380,000
Saint John Energy Benefits 1,000,000 1,200,000
Total Revenues 1 94,366,011 1 87,800,682
Expenditures
Growth & Community Services
Growth & Community Planning Services 1,680,262 1,826,081
Development Engineering 391,301 369,657
Community Development 528,505 783,064
Animal Control 120,000 109,250
Dangerous and Vacant Building Program 278,451 468,954
Minimum Property Standards 506,125 492,521
Heritage Conservation Service 207,018 202,480
Other By-Laws 297,552 297,303
Permitting & Inspection Services 1,459,850 1,412,306
Regional Economic Development Agency 3,087,500 3,087,500
Market Square 2,500,000 2,250,000
Saint John Trade & Convention Centre 156,543 317,066
Imperial Theatre 322,021 308,048
Saint John Aquatic Centre 423,225 421,418
Saint John Arts Centre 128,549 195,223
TD Station 502,796 491,949
Library 544,839 489,909
City Market 1,316,629 1,188,449
The City of Saint John
2025 General Fund Operating Budget
2025
2024
BudgetBudget
$$
Growth & Community Services (Continued)
Arts & Culture Board 70,000 70,000
PRO Kids 243,677 175,057
Local Immigration Partnership 62,831 93,785
Carleton Community Center 193,167 190,700
Loch Lomond Community Center 45,000 45,000
North End Community Center 193,167 190,313
Recreation Programming 1,222,380 720,239
Neighbourhood Development 172,000 172,000
YMCA - Contracted Services 155,564 157,560
Boys and Girls Club - Contracted Services 144,181 145,887
Unspecified Grants 234,000 284,000
Affordable Housing Strategy 197,583 217,660
Lifeguards 233,908 199,410
Play SJ 45,000 45,000
Lord Beaverbrook Rink 182,000 167,764
Building Incentive Reserve 350,000 350,000
Regional Services Commission 396,772 343,299
Community Services Reserve - 558,266
Housing Accelerator Program 2,775,572 -
Growth Department 720,897 614,671
Saint John Industrial Parks 500,000 -
Total Growth & Community Development Services 2 2,588,866 1 9,451,789
Public Safety Services - Fire, EMO and PSCC
Fire Rescue and Suppression Service 25,278,938 24,270,386
Fire Training 3,000 10,437
Technical Rescue Response 47,489 52,119
Hazardous Materials 61,417 74,774
Fire Prevention 970,571 930,494
Fire Investigation 67,743 68,548
Emergency Management Services 330,971 356,233
Water Supply and Hydrants 2,500,000 2,500,000
Public Safety Communications Centre 3,205,118 3,184,017
Street Lighting 1,210,000 1,060,000
Total Public Safety Services - Fire, EMO and PSCC 3 3,675,248 32,507,008
Public Safety Services - Police Commission
Saint John Police Commission Grant 30,751,388 29,537,474
Total Public Safety Services - Police Commission 3 0,751,388 29,537,474
The City of Saint John
2025 General Fund Operating Budget
2025
2024
BudgetBudget
$$
Public Works & Transportation Services
Snow Control Streets 5,568,926 5,592,712
Street Cleaning 1,741,677 1,641,956
Utility Cuts 1,227,668 1,506,716
Street Services - Surface Maintenance 8,608,264 8,445,799
Snow Control Sidewalk 1,202,021 1,158,927
Sidewalk Maintenance 945,091 913,129
Pedestrian & Traffic Management Service 2,607,775 2,555,863
Solid Waste Management 4,152,894 4,082,708
Landscape - Parks & Open Spaces 3,005,608 2,182,304
Rockwood Park 498,628 527,829
Urban Forestry 413,439 414,439
Saint John Horticultural Association 70,000 60,000
Arena Operation & Maintenance 1,518,945 1,501,504
Sportsfield Operation & Maintenance 1,428,466 1,294,245
Other Facilities Operation & Maintenance 539,239 461,845
Transit Debt 1,411,000 1,609,000
Transit Subsidy 7,405,172 6,651,541
Fleet Stockroom 340,939 363,333
Stormwater 4,311,530 4,049,981
Parking Administration 971,024 953,960
Peel Plaza Parking Garage 332,673 405,697
Market Square Parking Garage 169,538 154,283
Off Street Parking 1,005,670 1,180,095
Total Public Works & Transportation Services 4 9,476,188 4 7,707,866
The City of Saint John 0
2025 General Fund Operating Budget Budget
20252024
BudgetBudget
$$
Utilities & Infrastructure Services
Engineering 1,457,300 1,388,105
Carpenter Shop 404,336 400,977
Facilities Management 1,763,070 1,633,135
City Hall Building 1,089,123 1,021,696
GIS 517,550 442,364
Stockroom 222,347 220,396
Total Utilities & Infrastructure Services 5 ,453,727 5 ,106,674
Strategic Services
Finance 1,402,393 1,413,726
Assessment 1,855,868 1,837,897
Supply Chain Management 449,811 446,624
Information Technology 4,129,729 3,782,930
Corporate Planning 487,609 337,961
Insurance 153,328 215,965
Liability Insurance 570,000 575,000
Total Strategic Services 9 ,048,739 8 ,610,102
Corporate Services
City Manager's Office 808,249 759,584
Mayor's Office 218,638 161,579
Common Council 583,959 593,458
Common Clerk 737,800 742,413
Human Resources 2,801,678 2,379,426
Legal Department 1,302,142 1,150,316
Real Estate 325,144 186,004
Saint John Industrial Parks - 583,501
Customer Service 956,699 993,065
Corporate Communications 567,275 527,882
External Relations 188,430 217,937
Total Corporate Services 8 ,490,014 8 ,295,166
Other Charges
Fiscal Charges 14,190,999 15,420,430
Landfill Closure 300,000 300,000
Special Pension Contributions 10,526,250 10,225,000
Other Misc. Expenses / PILT Adjustment - 48,453
Transfer to Capital Reserves 3,000,000 3,655,721
Transfer to Operating Reserves - 135,000
Capital from Operating 6,864,593 6,800,000
Total Other Charges 3 4,881,842 3 6,584,604
Total Expenditures 1 94,366,011 1 87,800,682
Surplus (Deficit) - -
The City of Saint John
2025 Operating Fund Budget by Object
20252024
Proposed BudgetApproved Budget
$$
Revenues
Property Taxes 156,964,319 150,579,477
PILT Adjustment 23,453 -
Equalization & Unconditional Grant 12,803,691 13,773,579
Regional Services Grant 1,006,997 1,009,640
Saint John Energy Benefits 1,000,000 1,200,000
Surplus 2nd Previous Year 272,858 2,335,841
Permits & Licenses 1,453,254 1,221,914
Rentals & Fees 1,659,585 1,567,998
Inter-fund Charges 1,800,000 1,900,000
Market Square Parking 1,517,250 1,503,000
Meter Violations & Summonses 445,000 445,000
Parking Meters 986,500 887,000
Traffic By-Law 492,800 492,800
Fines 15,000 25,000
Extra Duties 35,000 70,000
Training 70,000 70,000
Contributions from Others 3,379,372 1,002,866
Partnerships 241,255 241,255
Emergency Dispatch 1,400,000 1,246,300
Utility Cuts 1,150,000 955,391
Interest Income 2,100,000 2,000,000
Internal Services 408,825 182,000
Insurance Proceeds 20,000 20,000
Accommodation Levy 1,250,000 1,250,000
Other Miscellaneous Revenues 1,633,075 906,593
Peel Plaza Parking Garage 393,000 366,000
Off Street Parking 1,223,779 1,219,029
Transfer from Operating Reserve 621,000 1,330,000
Total Revenues 194,366,011 187,800,682
Expenditures
Salaries & Benefits
Salaries 51,293,089 48,457,266
Overtime/Other Personnel Costs 1,623,662 1,611,080
Fringe Benefits 13,493,490 12,884,952
Pension 10,526,250 10,225,000
Total Wages and Benefits 76,936,491 73,178,298
The City of Saint John
2025 Operating Fund Budget by Object
20252024
Draft BudgetApproved Budget
$$
Goods & Services
General Services 648,786 252,578
Insurance 1,331,383 1,260,269
Professional Services 2,059,468 2,114,672
Other Purchased Services 2,457,966 2,299,601
Repairs & Maintenance 1,731,783 1,806,666
Other Purchased Goods 1,438,671 1,369,432
Roads 5,280,000 5,263,200
Tipping Fees 1,078,381 1,070,173
Property Taxes 1,157,640 1,428,556
Assessment Charge 1,855,868 1,837,897
Asset Purchases 729,366 645,948
Contracted Services 1,795,632 1,673,370
Postage 96,265 99,965
Inter-Fund Charges 3,597,365 3,547,000
Telephone 505,788 443,467
Radio 177,871 236,402
Building Incentive/Community Improvement Reserve 350,000 908,266
Fuel 3,457,172 3,398,454
Advertising 146,600 206,575
Travel, Conferences & Training 970,471 845,018
Commissionaires 628,000 586,830
Engineering 371,000 366,000
Cleaners & Janitors 212,370 206,120
Solid Waste Collection 189,935 190,435
Licenses & Software 510,480 451,715
Rentals - Buildings, Vehicles & Equipment 4,515,955 4,271,186
Asphalt 990,000 1,034,130
Parts 2,008,101 1,765,751
Apparel 207,980 154,731
Fuel Oil & Gas Oil 318,333 339,836
Salt & Sand 1,021,961 1,039,546
Electricity 835,055 706,304
Office Supplies 99,285 111,833
Operating & Safety Supplies 591,524 583,464
Water 150,650 154,750
Meals 200,141 225,642
The City of Saint John
2025 Operating Fund Budget by Object
20252024
Draft BudgetApproved Budget
$$
Lumber, Paint, Chemicals & Cement 506,726 549,976
Tools & Hardware 90,300 98,334
Memberships 190,653 146,799
Receptions 173,200 123,200
44,678,123 43,814,089
Grants - Agencies, Boards & Commissions
Grants 3,084,000 828,500
Transit Commission 8,816,172 8,260,541
Lord Beaverbrook Rink 182,000 167,764
Saint John Free Public Library 544,839 489,909
Regional Services Commission 396,772 343,299
Regional Facilities Commission 1,533,134 1,733,705
Regional Economic Development Agency 3,087,500 3,087,500
Saint John Police Commission 30,751,388 29,537,474
48,395,805 44,448,692
Fiscal Charges
Interest 2,554,999 2,589,689
Principal Repayment 11,636,000 12,830,741
14,190,999 15,420,430
Other Charges
Howes Lake Landfill 300,000 300,000
Capital from Operating 6,864,593 6,800,000
PILT Adjustment - 48,453
Transfer to Operating Reserves - 135,000
Transfer to Capital Reserves 3,000,000 3,655,721
10,164,593 10,939,174
Total Expenditures 194,366,011 187,800,682
General Fund Surplus (Deficit) - -
FINANCECOMMITTEEREPORT
Report DateNovember 13, 2024
Meeting DateNovember 18, 2024
Chairman CouncillorSullivan andMembers of Finance Committee
SUBJECT: 2025UtilityFund OperatingBudget
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Finance Committee.
AUTHORIZATION
Primary AuthorCommissioner/Dept. Chief Administration
HeadOfficer
Craig Lavigne/Jodie ForgieIan FoganJ. Brent McGovern
RECOMMENDATION
It is recommended that the Finance Committee approvethe proposed 2025Utility
Fund Operating Budget and forward to the next meeting of Common Council for
approval ofthefirst and second reading of Water and Sewerage Bylaw
amendments.
EXECUTIVE SUMMARY
The2025UtilityFund OperatingBudget will represent theseventhyear in a row
that will see no rate increase forratepayers.These ratepayers include both flat
rate customers which will see the annual cost remain the same at $1,428 per year
and metered customerswill see no change in thecost per cubic meterand meter
charges.
The budget also includesrates for the IndustrialRaw Water customers.Rate
stabilization has been achieved for rate payers for the past sevenyears despite
the Utility still experiencing stagnate revenuesandincreasing costs in several
areas.
PREVIOUS RESOLUTION
Finance Committee October 23, 2024Committee receive and file
the Utility Fund Potable Operating B
- 2 -
STRATEGIC ALIGNMENT
The proposed 2025 Utility Fund Operating Budget is aligned with Council
priorities demonstrated though the commitment to address infrastructure risk
associated with climate change, focusing on its leak detection program that helps
eliminate water waste. The Utility continues to find operational efficiencies
through continuous improvement, focusing on ensuring service objectives are
being met and managing the finances of the Utility to achieve rate stabilization for
rate payers.
REPORT
The 2025 Utility Fund Operating Budget will represent the seventh year in a row
that will see no rate increase for ratepayers that use both water and sewer
services. These ratepayers include both flat rate customers who will see the
annual cost remain the same at $1,428 per year and metered customers will see
no change in the cost per cubic meter and meter charges.
Potable Revenue
Overall potable revenue for 2025 is budgeted at $41,273,000 (2024- $37,982,057).
The Utility has experienced a reduction in flat rate accounts over the past several
years with an additional reduction of approximately 257 customers specifically
moving from flat rate to one meter account in January 2025 due to a transitioning
of a mobile park home accounts.
Meter rate revenue is from metered customers and are largely commercial,
manufacturing, malls, schools, restaurants, hotels, and apartment buildings.
Meter revenues are anticipated to be $19,389,500 for 2025 (2024- $15,732,057)
which is an increase of 23.25% and is a result of a general increase in consumption
and an industrial customer will be supplied significant amounts of potable water
over the next 5 years.
Other revenue increase largely attributed to interest revenues due to higher
interest rates, this increase is considered nonrecurring and will be offset by
increase in Capital from Operating for 2025.
Potable Expenditures
The Utility operating expenditures increased by $3,407,241 over 2024 vs an
increase in 2024 of $1,311,713 over 2023.
The Utility still has a large amount of expenses that cannot be reduced further to
provide water and sewer services. Costs such as annual payments for the water
treatment plant capital and operating, cost of operating water and wastewater
pump stations, sewer treatment plants, debt payments, electricity, property
taxes, chemicals and insurance are just some examples of areas that need to be
- 3 -
funded to provide services. These costs alone are subject to the inflation pressures
being felt due to the economic environment.
Debt charges have decreased by approximately $600,000 due to debt retirement
and no borrowing has occurred since 2017. There are several initiatives that will
continue into 2025 year such as leak detection of entire East water distribution
system, unidirectional flushing of the West water distribution system and
increased funding in the trenchless technology programs.
Industrial Raw Water
The Utility budget also includes the expenditures and revenues for the four
customers who receive raw untreated water. The bylaw rates include.
Operational cost to provide the service,
Contributions to asset replacement/asset management,
Rate stabilization reserves,
New debt associated with the industrial system deliveringthe service,
Previous debt associated with being a member of the water
distribution system.
In summary, the City set the rates to cover all operating costs associated with
providing raw water to each customer, recover past debt associated with each
system and include a charge for future asset replacement. There is also a charge
to some customers to cover the cost of assets currently being replaced, along with
funding to a rate stabilization reserve for each customer.
Rates for each of the four customers are seeing various degrees of increases and
decreases. Some of the increases are a result of lower consumption estimates or
higher cost of service.
Overall, the consumption rates for each customer as note below.
Customer 2025 Rate 2024 Rate
East Industrial Irving Oil 0.2530 0.2974
Irving Paper 0.1074 0.0947
West Irving Pulp & Paper 0.0904 0.0835
Industrial
NB Power Coleson Cove 0.5143 0.9526
Conclusion
In addition, the budget includes an increase of $2.5 million in pay as you go (capital
from operating). The total Utility Fund Capital Budget had minor changes
proposed and will have a total of approximately $8.3 million from the operating
budget and $5.7 million coming from other sources.
- 4 -
The seventh straight rate freeze for 2025 is a positive note for potable ratepayers
particularly with the current economic environment and inflationary pressures.
The Utility has continued to focus on cost reductions, continuous improvement,
finding efficiencies, and process improvements in 2023 and 2024, as well as debt
management, leveraging of funds from other levels of Government and pay as you
go (no borrowing) for all capital expenditures. The Utility will continue on these
initiatives in 2025 to be as cost effective and efficient as possible.
The Utility will continue to focus on the various cost control initiatives. However,
a major issue the Utility cannot control is its revenue base. As positive growth
continues in the City, the Utility often bears a large cost for infrastructure related
to growth, but will see very little revenue in comparison to the tax assessment the
City receives. In addition holding rates is equivalent to a rate decrease when
accounting for increases in expenses. The long term financial plan will incorporate
the increase in infrastructure deficit based on draft 2024 SOTI report and will
discuss potential rate increases and use of borrowing in future years.
SERVICE AND FINANCIAL OUTCOMES
See enclosed 2025 Utility Fund Operating Budget
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
ATTACHMENTS
Appendix A 2025 Saint John Water Operating Budget
Appendix B 2025 Utility Fund Operating Budget Presentation
straight
th
for flat rate customers or
2025 Potable Utility Recap
bƚ ƦƩƚƦƚƭĻķ źƓĭƩĻğƭĻ metered customers2025 Flat Rate $1,428 per year (7year)Meter Revenue increase year over year of Saint John Water will be supplying large industrial customer significant
amount of potable water for approximately the next 5 Additional increase due to a Mobile Home Park transitioning from Flat Rate to Meter Customer (Approx 257 customer accounts moved
from
| 1
Rates
Water
4
Meeting
202
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approve the proposed 2025 Utility Fund
2025 Utility Fund Budget Recommendation
Operating Budget and forward to the next meeting of Common Council for approval and first and second reading of the Water
The City of Saint John
2025 Utility Fund Operating Budget
20252024
BudgetBudget
$$
Expenditures
Drinking Water Service
Watershed Management879,878 676,221
Water Treatment 9,577,589 9,122,364
Water Pumping & Storage 1,256,360 1,244,612
Transmission & Distribution 4,623,509 4,491,783
Customer Metering707,125 712,794
Internal Charges470,000 465,000
Other Charges575,142 562,486
Debt Servicing 3,410,695 3,676,774
Transfer to Capital Reserves180,673 -
Capital from Operating 4,293,658 1,715,622
Total Drinking Water Service25,974,62922,667,655
Wastewater Service
Wastewater Pumping 3,318,003 3,314,762
Wastewater Collection 3,368,216 3,110,344
Wastewater Treatment 6,046,572 6,225,206
Internal Charges470,000 465,000
Other Charges575,142 562,486
Debt Servicing 2,746,973 2,959,598
Transfer to Capital Reserves180,672 -
Capital from Operating 3,833,343 3,825,134
Total Wastewater Service20,538,91820,462,530
Industrial Water Service
Watershed Management 894,359 695,930
Water Pumping and Transmission 3,081,035 2,869,275
Customer Metering 245,421 269,460
Debt Servicing 1,661,162 1,796,522
Transfer to Operating Reserves 703,469 1,118,631
Transfer to Capital Reserves 836,677 836,677
Capital from Operating 596,260 635,210
Total Industrial Water Service 8,018,383 8,221,705
Infrastructure Management
Engineering Services 861,410 837,531
Total Expenditures55,393,34052,189,421
1
The City of Saint John
202 Utility Fund Operating Budget
20252024
BudgetBudget
$$
Revenues
Flat Rate Accounts21,883,50022,250,000
Meter Rate Accounts19,389,50015,732,057
Industrial Raw Water Accounts 7,438,122 7,819,412
Fire Protection Levy 2,500,000 2,500,000
Storm Sewer Levy 1,000,000 945,000
Other Revenues 1,667,360 1,455,581
Transfer from Reserves 750,000 750,000
Previous Year's Surplus 764,858 737,371
Total Revenues55,393,34052,189,421
Annual Flat Rate - Water and Sewerage $1,428$1,428
Meter Rates:/Cu.m.
Block 1 - First 100$1.9944$1.9944
Block 2 - Excess of 100$1.2700$1.2700
NOTE: Sewer Surcharge 80.35% of Water Charge
IndustrialRawWaterRate:/Cu.M20252024
East Industrial
Irving Oil$0.2530$0.2974
Irving Paper$0.1074$0.0947
West Industrial
Irving Pulp and Paper$0.0904$0.0835
NB Power (Coleson Cove)$0.5143$0.9526
IndustrialRawWaterRate-Bi-monthlyfixedcharge
East Industrial
Irving Oil$42,379$36,488
Irving Paper$14,821$9,346
West Industrial
Irving Pulp and Paper$70,383$67,023
NB Power (Coleson Cove)$1,425$1,687
2
-
.
4
.
residential
. The study
s
Asset
see
, the
the feasibility study
ohn Water Long
J
is
during the
Financial Plan
based charge
Saint
-
.
, the
4
Ten Year
’s
203
Pathway to Net Zero
, rate structure and affordability
:
s
-
etering. This project would
4
m
Strategic Plan
ActSJ
year
202
including:-
major transformational action
,
niversal
10
u
and Common Council’s Priorities. The Plan also uses
to
aligns with
cost component
from a flat rate to consumption
by the City of Saint John
for links to Associated City Plans
ut
B
Policy
moving
the move
Large infrastructure deficitRate affordability and billing structureSize and geography of the system
Financial modelling for the plan was conducted by Hemson Consulting.
1.2.3.
It should be noted that aregardingcustomers would also addressSeveral challenges or obstacles have been considered development of this plan Alignment with other City Plans In addition
to the City’s Term Financial PlanManagement policies as set o See Appendix Note:
.
s
all
–
for
”
tility
u
Common Council
potable (drinking)
,
for the next ten years. It
for
| TEN YEAR FINANCIAL PLAN
ustainable
s
“Strengthen the
universal metering
“
is a living document created
:
activities
Utility
he
regarding
t
year Strategic Plan
-
for
10
”
’s
sets out the following actions:
capital budget to support strategic infrastructure
lots.
.
s
d
meet the present and future economic, social needs of today’s
City of Saint John
he Utility’s financial and operating
includes a discussion and analysis of the financial environment,
t
Structure theinvestmentSeek external funding for future utility infrastructure investmentUndertake a feasibility study residential customers.Seek legislative changes to implement a water
service levy on vacant and service
and defines financial strategies and targets
year Strategic Plan
,
SAINT JOHN WATER
-
Saint John Water Long Term Financial Plan10
s part of the
About this Plan The to guide meaning it will ratepayers without compromising the ability of future generations to meet their own needs.This planidentifies challenges and opportunities,
details financial principles and policieswater and wastewater services.Financial Principles The City of Saint John Finance Committee has adopted four financial principles to guide the
plan: long term sustainability, increased flexibility, reduced vulnerability, and environmental responsibility.Common Council’s Goals for the Plan Aidentified the following objective
will ensure that Saint John Water operates as a competitiveness of the water utility in comparison to municipalities with similar service and infrastructure.The
-
he debt
7
has
its
associated with
However, t
s
.
3
the operating budget is
and the balance for longbeen additional funding
in the overall sewerage
,
also
due to cost
lines
4
through
.
)
focus on debt reduction
millionvery little reduction in
ly $6 million per lane kilometer.
203
the
e
tility with approximately 19,100
. There has -
u
4
for the year ending 202
and support efforts to drive fiscal
,
Project. There has been a focus on debt
achieving
annually
of combined sewer
202
of government over the last several years, but even
million
m
s
k
75
million
he Utility is
2
t
eficit.
large infrastructure deficit being funded strictly from the
d
69,243,001
$
timated to be approximat
the
a key growth centre for the City
with no additional borrowing since 2017
(
,
combined terra cotta sewers dating back to 1872 in the Central
he Utility’s debt was over $107
from other level
t
ing
that funding
Safe Clean Drinking Water
nfrastructure
The City has some of the oldest wastewater infrastructure in the country, includPeninsulaThe City of Saint John has a critical need to upgrade wastewater infrastructure in order to improve
environmental performance, increase wastewater and storm capacitysustainability and tax base growth. With approximately system, renewal of this system to optimize environmental performance
and growth opportunities would not be feasible without funding assistance from the federal and provincial governments. The cost of replacing combined sewers is es 4. Long Term Debt
In 2017 the reductionterm debt is balance is a significant burden for a customers.The challenge with the high debt and resulted inoperating budget. The capital being funded approximately
$5.securedwith i
,
into
it is
in order
,
assets is
The City’s
(
current funding
the urban core
re sustainable
million per year,
however
in
. An infrastructure ;
5
per year versus $21
available.
With$1
-
in Saint John has an
eport
r
eport was prepared in
infrastructure deficit
| TEN YEAR FINANCIAL PLAN
As Canada’s first
Saint John Water
condition
. money
se areas mo
thousand
s
o
building
(SOTI)
Fair
million
to
deficit will not improve.
value of
at
which target density
was the SOTI r
$370
,
apartment
repairs, and the
Very Good
assets
unit
-
he Infrastructure
its
and
t replacement
83
poor to very poor condition.
f
annual investments in infrastructure.
o
in
are
million of funding per year is required to achieve
million per year, th
million gap in achieving sustainable funding.
assets are in
development.
%
5
Utility’s
estimated 5
35
1
-
the City can handle any new growth in residential units.
for
$2
2024 State
-
10
.
2024
75% of
that
in new water and sewerage revenue. This also doesn’t take
,
the City’s growth objectives
the millions of dollars in infrastructure that the Utility needs
SAINT JOHN WATER
The
billion
)
.
extensive evaluation of
Large Infrastructure Deficit
.
4.01
Without additional large commercial customers, particularly those that use water in manufacturing, any amount of new revenue generated is small compared to the thousandaccountto ensure
3 Infrastructure is the facilities, equipment and systems needed to collect, store treat and deliver water and wastewater serviceincorporated city, the City of Saint John has a legacy
of aging infrastructure. A strategic approach is needed to optimize City assets, improve environmental performance and drive growth. Outdated infrastructure is a barrier to realizing
and priority suburban growth areas to make thand attractive Saint John Water is currently facing a based on the $Generallyestimated that 11available of $Approximately $
For example, a newly built estimated annual property tax revenue of $230deficit is essentially the difference between the funding required for replacement, maintenance first 2019sustainability.
Compared to the current funding of $10there is a $20
.
a
8
annual basis
-
and increased costs
water consumption.
4
regardless of the amount of water
their
203
-
including maintenance, electricity and
4
,
is the same
202
billed according to
are
residential customers have their water meters read every
-
non
rate structure, the total bill
Flat Rate Billing
.
6 Currently, residential customers with fewer than three dwelling units in Saint John are charged for water and sewer services on a flat rate basis. Under flat consumed in each unit.
Flat rate water bills are sent on a semiIn contrast, two months and Flat rate billing often results in excess water useassociated with water treatmentchemicals.
)
.
of
and
,
5
km²
.
.4 km
no dams
etering
of
5
m
130.7
it is critical
(
,
niversal
u
orcemain, 7
Fredericton has 3
size and cost
Fredericton
Fredericton has
of f
.
| TEN YEAR FINANCIAL PLAN
while
limited funding
The Utility is endeavouring to
,
ed by two treatment plants
.
wastewater treatment plants.
and
.
, 50.4 km
the size of
sewer
stations
cost and environmental
than the infrastructure in those other
and is serv
funding
sewer
that of Fredericton and Monctontorm
s
difference means the
Saint John is geographically a much larger city
is double of
such
large volume
) address
.
2
anitary
to
That
.
)
of s
without
325.2 km
km²
dams and one treatment plant
315.96 km
(
wastewater pumping
and
significantly larger.
2
nfrastructure
141.2
14 dams in its system315.5 km
I
(
13
and Moncton have one wastewater treatment plant each.
ewer
inability to borrow more money
achievable
s
combined sewers
SAINT JOHN WATER
Saint John
the
comparing Saint John to other cities like Fredericton and Moncton
he Utility continue to seek and secure funding from other levels of
he infrastructure in Saint John is significantly larger, older, and much
t
Size of the System
ombined
Due tothat government. Major transformational initiatives such as will not be 5. Whencritics generally focus on ratesand tmore costly to operate and maintain cities. In fact, and
Monctoninfrastructure is Wastewater Treatment Saint John currently has three Fredericton Saint John has 7Moncton has Drinking Water Treatment Saint John hasMoncton has threeand one
water treatment plant. Underground Saint John has cseparateconsiderations.
11
4
203
-
4
202
.
)
s
.
can
will
s
)
first
.
rather
leaks
(
s
starting
,
as it
ratepayers
”
etering
m
helps detect
to cost savings and
water consumption
to meter rates by
ing
lifeline rate
“
niversal
a
lead
| TEN YEAR FINANCIAL PLAN
u
–
on water consumption
water.
d
base
dential customers
a 30% reduction in
. A reduction in water consumption
he Utility to implement changes within it
t
and distribute
is a discounted rate to ensure ratepayer
the same amount regardless of consumption
determine rates for the universal metering
identifies
pay
the implementation of
block
for most resi
etering will allow better distribution of costs
services, regardless of how much they use.
key strategy
to treat
m
Zero
for the implementation of -
s
That means all flat rate billing customers pay the same
promotes responsible water usage,
srate
, as charges will be
the financial challenges being faced by many
cost
of a few municipalities in the country that still uses a flat
first
e
niversal
with
u
, and optimizes water distribution
plan callall ratepayers
etering will also allow
The
(
transformational project will require at least 50% funding from
conservation.
m
ratepayers
is
reduced
Pathway to Net
SAINT JOHN WATER
their basic water needs at a rate that is deemed to be affordable
having :
Utility’s
Universal Metering Saint John is onrate billing structure.amount for their water The per capita by 2040 as a result in
in 2028, with conversion 2031. Thother sources. The move to between than Universal rates to assist The Utility will investigate rate block. meetA study will begin in 2026 to program.Water
metering alsomore quicklyimproved ActSJ
will be
term debt
14
-
to the Utility
The Debt Management
s
5% of the Operating Budget
1
he Utility Fund:
T
rating or maintenance costs. The
4
as it applie
illion
nd ope
203
m
-
4
$45
–
never to fu
006)
202
-
.
–
(FAS
sets out the acceptable conditions for the use of debt in
isely
006)
-
w
The Debt Service Ratio shall not exceed Debt target by 2032
A revised Debt Management Policy
Borrow While it would be great to be able to pay cash for everything, the reality is that at some point or another debt will become a fact of life, especially when it comes to large
ticket items such as houses or cars. Policy (FAS addition to debt limits, targets and capacity. It stipulates that longwill only be issued to finance projects approved in the Capital
Budget and the Capital Investment Plan other key limits and targets are as follows:Key Performance Indicators of Debt Limits of Debt Service Target for the Utility Note:brought forward
in 2025
ustainable
4)
s
00
-
ouncil to help
be directed to
C
(FAS
was established to
| TEN YEAR FINANCIAL PLAN
ake
004)
-
inancial vulnerability. It is
m
It will also ensure that Council’s
expenditure
key financial values:
term financial plan is to have a road map to
-
six
a long
oney than you
m
the ability to meet the present and future economic
ore
ensure that Saint John Water operates as a “
s by applying
m
developing
goal
time revenues should only be used for onetime expenses
The Operating Budget Policy (FAS
-
ese
he Utility are met.
oney will go to funding their minimum payments. That is why it is
t pend
Maintain a structurally balanced budget: Recurring operating expenses should be covered by recurring operating revenuesOperating revenues above required operating and capital reservesOne
a defined set of goals.
s
, meaning it has
SAINT JOHN WATER
”
social needs of today’s ratepayers without compromising the ability of
tility
Policies The purpose of achieveThis road map willufuture generations to meet their own needs.achieve th Don’t If every year a person uses credit cards to pay for things that they need,
but can’t afford, they will dig themselves a financial hole that will be very difficult to get out of. Every year, their debt levels will get higher and a larger portion of their mimportant
to only spend the money you have made, thereby living within your means. strengthen financial sustainability and reduce fsummarized as follows:
andgoals for A number of best practice policies have been adopted by
for
15
urniture
f
will be brought forward
4
Capital Budget Policy will bring
is a policy that enhances accuracy,
021)
-
005)
ed
-
personnel budgets are managed
s
-
203
021)
-
-
(FAS
4
. A revi
policy. The policy enhances fiscal responsibility
202
the
investments with regards to growth projects.
efore you buy new living room
b
Capital Budget Policy (FAS
Utility
oof
r
Improve the transparency and accountability of community investments in the management of the Utility’s assets.Improve the management of the Utility’s exposure to risks of reduced service
deliveryFacilitate the leveraging of partnerships and infrastructure funding from external sources.
005)
-
Budget Monitoring Policy (FAS
Fix the (FAS An updatedCouncil’s consideration in 2025balance to Keep track of your money The accountability, and control by ensuring budget allocations are managed and adhered to according
to and financial flexibility by integrating budget monitoring practices with the Utility’s reserve fund and debt management strategies. The policy ensures personnel and nonseparately,
annual operating revenues and expenditures match forecasts, financial controls to ensure resources are funded and spent in a fiscally prudent manner.
Asset
he Utility remains in
T
was created. This policy
001)
003)
| TEN YEAR FINANCIAL PLAN
-
-
003)
-
the money to cover said
(FAS
(FAS s
ay
d
roperty
n order to ensure
was created. The specific objectives of the
I
ainy
p
r
s
001)
-
The following are stipulations.
me to replace it before the maintenance charges
iabilities
apital renewal
oney for a
l
are of your
c
c
time operating expenses which are greater than $100,000 that
m
-
Major unanticipated eventsMajor Future Oneare not part of the operating budgetInfrastructure deficitInvestment growth opportunities Improve the reliability of customer service by maintaining
clearly defined levels of service by maintain assets in good conditionImprove the decisions related to the management of the Utility’s assets
ood
g
SAINT JOHN WATER
Save your Everyone knows that surprises happen. There will always be unforeseen expenses that will come up and sometimeexpenses will not be available. compliance with the Debt Management
and Operating Budget policies, an Operating and Capital Reserves Policy (FAS allows the Utility to set aside money to use for future operating expenses and capital expenditures. Reserves
are meant to provide for:Take When you own a car, you know that routine maintenance such as changing the oil and rotating the tires will help extend the life of your vehicle as well
as minimize the operating expenses in the long run. Also, once the car gets old, there is an optimal tibecome too high. City assets are very similar and for that reason, an Management
Policy (FAS Asset Management Policy are to:
and
billable 18
inch
15,700
density residential)
-
year Strategic Plan
-
.
are less than 1
ohn 10
J
per year in potable consumption
4
3
from 2024 to 2029
Saint John
of meters
203
-
Industrial, Commercial, Institutional
Growth Scenario
oped using the current state of the Utility 4
l
2.2 million m
currently has approximately
-
pay a flat fixed charge (low
About 65%
378/year
that
202
$
o
users
unit metered accounts are billed based on meter size
based on growth in
industrial customers
-
Household
dditional 2.1
Saint John WaterwaterAn additional 3,300multiAn afrom 25 new residential customers per yearGrowth in line with City of Saint Billable residential fixed connections to increase by 2.14%
or an average of
d two scenarios
Growth Assumptions Over the Planning Period Modeling for the plan was devean Current State of the UtilityConservative Alternate Household Growth Scenario
Year Asset
-
debt considered in the
| TEN YEAR FINANCIAL PLAN
per annum (2024) for 20
and wastewater
)
s 2024 budget and adjusted to account for the
’
5 million
potable
drinking (
I Report = $3
T
Annual debt payments (existing and projected)Only calculationsPension expenses come offline in Q1 2028 Post 2024 is based on a similar level of activity to 2024 plus inflation.SONeeds
for potable system.
Based on the Cityeffects of inflation
Full recovery of annual capital needs Contribution to Reserve for future Asset Replacement
Full recovery of operating costs
SAINT JOHN WATER
2.3.
1.
Full Cost Recovery Approach
19
4
203
-
4
202
is3%
7
is
($146
growth
2
2034
-
203
-
.
focuses on
Plan
Utility
he
t
| TEN YEAR FINANCIAL PLAN
General Fund
conservative household
the
ture renewal from 2024
Term Financial
extreme risk assets is 10% ($54 million)
-
to Debt Service
2032 Long
-
023
of funding from other levels of government)
etering implementation to start by 2028etering project assumes 50% funding from other sources
mm
funded by the Utility)
million
that are credible and attainable for
10% of Operating Cost
:
97
% future infrastructure requirements funded by the Utility
7
Additional revenues over expenditure requirements directed to operating and capital reserves and pay as you goInflation of goods and services of 2.30% in 2024, then 2.15% annuallyFlat
rate to remain stable at $1,428 per year until 2026. There will be gradual increases of 1% to 2% per year until new billing structure introducedWage and benefits to align with Infrastructure
deficit to remain stable during term of planUniversal Universal 2millionUnfunded share of remainingUnfunded share of all infrastruc($3
25 new residential customers per year
:
SAINT JOHN WATER
Saint John Water 2
Conservative Household Growth Scenario Assumption Theopportunities The following has been assumed within the
scenario
20
4
been reduced, and
203
-
4
202
rate revenues include: fire protection levy, carryover surplus, etc.
-
Non
| TEN YEAR FINANCIAL PLAN
Growth Scenario
year conservative forecast meets all of the financial targets. Specifically, the budget is balanced, the total debt load has
-
SAINT JOHN WATER
Includes potable water and wastewater. Excludes industrial water.
The 10infrastructure deficit is maintained.
Conservative Household
21
4
203
-
4
202
%
80
63
19.5
2
2034 is
-
% ($
203
City of Saint
-
4
the
| TEN YEAR FINANCIAL PLAN
General Fund
the
rowth in line with
g
to Debt Service
:
etering implementation to start by 2028etering project assumes 50% funding from other sources
mm
million of funding from other levels of government)
10% of Operating Cost
new residential customers per year
% future infrastructure requirements funded by the Utility ($1
308
378Additional revenues over expenditure requirements directed to operating and capital reserves and pay as you goInflation of goods and services of 2.30% in 2024, then 2.15% annuallyFlat
rate to remain stable at $1,428 per year until 2026. There will be gradual increases of 1% to 2% per year until new billing structure is introducedWage and benefits to align with Infrastructure
deficit to remain stable during term of planUniversal Universal 37million funded by the Utility)Unfunded share of remaining extreme risk assets is million)Unfunded share of all infrastructure
renewal from 2024($
year Strategic Plan
-
SAINT JOHN WATER
Alternative Growth Scenario Case Assumption: The following has been assumed withJohn 10
22
4
been reduced, and unfunded
203
-
4
202
rate revenues include: fire protection levy, carryover surplus, etc.
-
Non
| TEN YEAR FINANCIAL PLAN
year alternate forecast in meets all of the financial targets. Specifically, the budget is balanced, the total debt load has
-
SAINT JOHN WATER
Includes potable water and wastewater. Excludes industrial water. The 10
infrastructure deficit declines.
Alternative Growth Scenario Case
27
4
203
-
4
202
Treatment
Facility
Wastewater
Treatment
Facility
City
Millidgeville
The
Length
Manholes
Greenwood
Facility,
Treatment
Sewer
Length
Facility,
Length
Throughout
Combined
Length
&
Basins
Sewer
Treatment
Wastewater
Sewer
Forcemain
Sewers
Stations
TreatmentCatch
Sanitary
II
Lift
SanitaryCombinedStorm
Sanitary
Both
Lancaster
Wastewater
Heights
Manholes
& Type
| TEN YEAR FINANCIAL PLAN
I
Wide
WideWideWide
Description CityCityCityIncludesWastewaterEasternFacility,Morna Description CityStormType
Inventory
ss
km
km
kmkm
32
72
318.3
329.8
854651119473
Statistic 49.975.4 Statistic
Infrastructure
(High(Low
Assets
Length
Assets
FacilitiesFacilities
System
Combined)
Sewer
&
Length
SAINT JOHN WATER
Stations
System
Length
Length
Lift
TreatmentTreatment
Sewer
(Sanitary
Saint John Water
Sewer Storm
Wastewater Forcemain
Manholes
SewersBasins
Primary Asset SanitarySanitaryCombinedManholesWastewaterWastewaterVolume)WastewaterVolume)Primary Asset StormStormCatch
28
plan includes a
, the
n
a
4
l
P
l
a
i
c
n
203
a
n
-
i
F
4
m
r
e
T
-
g
202
n
o
L
n
strong fiscal management.
h
o
J
t
a suite of best practice financial policies, the establishment of
n
i
a
S
f
o
y
t
i
term financial targets, and a financial health scorecard that measures
-
C
e
dopted by Common Council in December 2019
h
T Acomprehensive financial assessment of the City’s challenges and opportunities,longresults and ensures
-
Grow, Green,
ActSJ Pathway to
–
veloped to align with
001) was adopted by
e
-
term.
| TEN YEAR FINANCIAL PLAN
2026
-
term Financial Plan, PlanSJ, and
-
n shall adopt and apply recognized
the climate crisis and its commitment to
were developed through several workshop
term Financial Plan was d
-
er Long
t
zero emissions in the city by 2050.
-
ences the following City plans.
r
SAINT JOHN WATER
Zero, is the City’s response to
-
year Strategic Plan
-
Appendix B: Associated City Plans and Priorities The Saint John Wa This plan serves as a management tool to improve the City’s performance and align with existing plans, including the
LongMoveSJ.ActSJ The City of Saint John's Community Energy Action Plan Nettransition to net City of Saint John Asset Management Policy The City of Saint John Asset Management Policy
(FASCommon Council in 2018. It confirms support for implementing asset management practices to ensure sustainable delivery of services, with the following statement: The City of Saint
Johasset management practices in support of delivering services to its customers reflecting the vision presented in the City' s Municipal Plan, PlanSJ, and related strategic plans.Council
Priorities Saint John Common Council priorities for 2021Belong, Move, and Performsettings using input from an online public survey and guided by several municipal strategic plans including
Plan SJ, Play SJ, Move SJ, and the Longterm Financial Plan.
and refe 10
29
4
203
-
4
202
fter
2034)
-
A
(2024
| TEN YEAR FINANCIAL PLAN
metered Customers
-
Rate for Non
Flat
:
C
SAINT JOHN WATER
Appendix
Universal Metering Program Implementation