2024-12-04 Finance Committee Agenda Packet - Open Session
Finance Committee Meeting
Open Session
November 18, 2024
MINUTES OPEN SESSION FINANCE COMMITTEE MEETING
NOVEMBER 18, 2024 AT 4:45 PM
MEETING CONDUCTED BY ELECTRONIC PARTICIPATION
Present: Mayor D. Noade Reardon
Councillor G. Sullivan
Councillor G. Norton
Councillor P. Radwan
Councillor G. Stewart
Also
Present: Chief Administrative Office B. McGovern
Commissioner of Finance and Treasurer K. Fudge
Fire Chief R. Nichol
Solicitor J. Boucher
Commissioner Human Resources S. Hossack
Commissioner Utilities & Infrastructure I. Fogan
Commissioner Growth & Community Services A. Poffenroth
Commissioner Public Works & Transportation M. Hugenholtz
Director Financial Services J. Forgie
Director Financial Services C. Lavigne
Intermediate Accountant V. Parikh
Director Legislative Services / City Clerk J. Taylor
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 October 23, 2024
Moved by Mayor Noade Reardon, seconded by Councillor Radwan:
RESOLVED that the minutes of October 23, 2024 be approved.
MOTION CARRIED.
3. Approval of Agenda
Moved by Mayor Noade Reardon, seconded by Councillor Radwan:
RESOLVED that the agenda of November 18, 2024 be approved.
MOTION CARRIED.
4. Disclosures of Conflict of Interest
No disclosures.
5. Consent Agenda
5.1 Amendment to the Wage Escalation Policy FAS-007 (Recommendation in Report)
Finance Committee Meeting
Open Session
November 18, 2024
Moved by Mayor Noade Reardon, seconded by Councillor Stewart:
RESOLVED that the Finance Committee:
1. Approve the amended Wage and Benefits Budget Escalation Policy; and
2. Recommend that Common Council amend the City of Saint John Wage and Benefits Budget
Escalation Policy FAS-007.
MOTION CARRIED.
6. Business Matters
6.1 2025 Draft General Operating Fund Budget
and discussed Tax Base Growth and Community Funding Grant, Fair Tax and Multiplier, Council feedback,
and the operating budget recommendations for 2025 which includes a 3 cents reduction to the tax rate.
Moved by Mayor Noade Reardon, seconded by Councillor Stewart:
RESOLVED that the Finance Committee endorse the proposed 2025 General Operating Budget and direct
staff to bring forward the budget to Common Council for receive and file.
MOTION CARRIED with Councillor Radwan voting nay stating that a 3 cents reduction to the tax rate is still
a burden on taxpayers and is not competitive enough to encourage development, adding that she would
like to see the impact on the budget by reducing the rate by an additional 2 cents (5 cents in total).
6.2 2025 Saint John Water Operating Budget
noting
that it is the seventh consecutive year with no rate increase for ratepayers. The budget also includes
rates for the Industrial Raw Water customers. Rate stabilization has been achieved despite the
Utility experiencing stagnate revenues and increasing costs.
Moved by Mayor Noade Reardon, seconded by Councillor Radwan:
RESOLVED that the Finance Committee approve the proposed 2025 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.
6.3 Long Term Financial Plan Saint John Water
Moved by Mayor Noade Reardon, seconded by Councillor Stewart:
RESOLVED that Item 6.3 Long Term Financial Plan Saint John Water be tabled to the next Finance
Committee meeting.
MOTION CARRIED.
7. Information Items
7.1 Service Based Budget Template Police
Submitted for information only.
8. Adjournment
Moved by Mayor Noade Reardon, seconded by Councillor Stewart:
RESOLVED that the Finance Committee meeting be adjourned.
MOTION CARRIED.
The Finance Committee open session meeting held on November 18, 2024, was adjourned at 6:05 p.m.
-
.
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residential
. The study
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ohn Water Long
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Saint
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Ten Year
’s
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Pathway to Net Zero
, rate structure and affordability
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4
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Strategic Plan
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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
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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
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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
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rather
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starting
,
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ratepayers
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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
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4
$45
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never to fu
006)
202
-
.
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(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
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a
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P
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a
i
c
n
203
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i
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4
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r
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n
o
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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
December 4th, 2024
Finance Committee
General Fund and Utility Fund
Results and Year End Projections
October 31, 2024, Unaudited Financial
The City of Saint John
2024 General Fund Operating Budget
October 2024
2024YTD YTD YTD 20242024
BudgetBudgetActualVarianceYE ForecastVariance
$$$$$$
Revenues
Property Taxes 150,579,477 125,482,899 125,482,899 - 150,579,477 -
Equalization & Unconditional Grant 13,773,579 11,477,981 11,477,981 - 13,773,579 -
Surplus 2nd Previous Year 2,335,841 1,946,530 1,946,530 - 2,335,841 -
Transfer from Operating Reserves 1,330,000 - - - 642,258 (687,742)
Growth & Community Services 4,505,063 3,808,663 4,586,478 777,815 5,814,210 1,309,146
Public Works & Transportation Services 6,378,970 5,315,660 5,725,977 410,317 7,497,888 1,118,918
Public Safety Services 1,992,113 1,556,195 2,153,000 596,805 2,505,723 513,611
Utilities & Infrastructure Services 316,000 240,560 175,611 (64,949) 218,417 (97,584)
Strategic Services 4,380,000 3,643,730 7,019,379 3,375,649 7,791,263 3,411,263
Saint John Energy Rebates 1,200,000 - - - 1,200,000 -
Regional Serivces Commission 1,009,640 841,360 841,360 - 1,009,640 -
Total Revenues 1 87,800,682 1 54,313,578 1 59,409,215 5 ,095,637 1 93,368,296 5 ,567,613
Expenditures
Growth & Community Services 19,451,789 16,760,775 15,416,806 1,343,969 19,378,254 73,534
Public Works & Transportation Services 45,457,077 37,340,383 38,724,327 (1,383,944) 47,411,638 (1,954,561)
Public Safety Services 62,044,481 51,368,509 47,403,633 3,964,876 60,486,903 1,557,578
Utilities & Infrastructure Services 7,357,463 6,262,305 6,044,105 218,200 7,326,917 30,546
Strategic Services 8,610,102 7,734,996 6,661,656 1,073,340 7,861,857 748,245
Corporate Services 8,295,166 6,999,802 6,995,392 4,410 8,325,190 (30,023)
Other Charges 36,584,604 26,425,646 27,652,270 (1,226,624) 41,474,931 (4,890,327)
Total Expenditures 1 87,800,682 1 52,892,416 1 48,898,190 3 ,994,226 1 92,265,690 ( 4,465,007)
Surplus (Deficit) - 1,421,162 1 0,511,025 9 ,089,862 1,102,606 1 ,102,606
1
City of Saint John Service Areas
2024 Salaries and Goods & Services
October 2024
2024YTD YTD YTD 20242024
BudgetBudgetActualVarianceYE ForecastVariance
$$$$$$
Growth & Community Services
Salaries 6,207,974 5,289,869 5,124,741 165,128 6,054,685 153,289
Goods & Services 13,243,814 11,470,906 10,292,066 1,178,840 13,323,569 (79,755)
TOTAL 19,451,789 1 6,760,775 15,416,806 1 ,343,969 1 9,378,254 7 3,534
-
Public Works & Transportation Services -
Salaries 17,490,504 14,802,545 14,684,736 117,809 17,471,833 18,671
Goods & Services 27,966,573 22,537,838 24,039,591 (1,501,753) 29,939,805 (1,973,232)
TOTAL 45,457,077 37,340,383 38,724,327 ( 1,383,944) 47,411,638 ( 1,954,561)
-
Public Safety Services -
Salaries 50,274,346 41,582,844 38,853,863 2,728,981 49,341,658 932,687
Goods & Services 11,770,135 9,785,665 8,549,770 1,235,895 11,145,245 624,890
TOTAL 62,044,481 5 1,368,509 47,403,633 3 ,964,876 6 0,486,903 1 ,557,578
-
Utilities & Infrastructure Services -
Salaries 3,842,743 3,250,282 3,135,891 114,391 3,691,084 151,659
Goods & Services 3,514,720 3,012,023 2,908,214 103,809 3,635,832 (121,112)
TOTAL 7 ,357,463 6,262,305 6 ,044,105 2 18,200 7,326,917 3 0,546
-
Strategic Services -
Salaries 4,353,217 3,682,698 3,290,061 392,637 4,018,782 334,435
Goods & Services 4,256,885 4,052,298 3,371,595 680,703 3,843,075 413,810
TOTAL 8 ,610,102 7,734,996 6 ,661,656 1 ,073,340 7,861,857 748,245
Corporate Services
Salaries 5,740,434 4,857,630 4,732,156 125,474 5,596,229 144,205
Goods & Services 2,554,732 2,142,172 2,263,236 (121,064) 2,728,961 (174,229)
TOTAL 8 ,295,166 6,999,802 6 ,995,392 4 ,410 8,325,190 (30,023)
- -
Other Charges - -
Goods & Services 36,584,604 26,425,646 27,652,270 (1,226,624) 41,474,931 (4,890,327)
36,584,604 2 6,425,646 27,652,270 ( 1,226,624) 4 1,474,931 ( 4,890,327)
TOTAL EXPENDITURES 1 87,800,682 1 52,892,416 1 48,898,190 3 ,994,226 1 92,265,690 ( 4,465,007)
2
The City of Saint John
2024 General Fund Operating Budget
October 2024
2024YTD YTD YTD 20242024
BudgetBudgetActualVarianceYE ForecastVariance
$$$$$$
Revenues
Property Taxes 150,579,477 125,482,899 125,482,899 - 150,579,477 -
Equalization & Unconditional Grant 13,773,579 11,477,981 11,477,981 - 13,773,579 -
Surplus 2nd Previous Year 2,335,841 1,946,530 1,946,530 - 2,335,841 -
Transfer from Operating Reserves 1,330,000 - - - 642,258 (687,742)
Growth & Community Services 4,505,063 3,808,663 4,586,478 777,815 5,814,210 1,309,146
Public Works & Transportation Services 6,378,970 5,315,660 5,725,977 410,317 7,497,888 1,118,918
Public Safety Services 1,992,113 1,556,195 2,153,000 596,805 2,505,723 513,611
Utilities & Infrastructure Services 316,000 240,560 175,611 (64,949) 218,417 (97,584)
Strategic Services 4,380,000 3,643,730 7,019,379 3,375,649 7,791,263 3,411,263
Saint John Energy Rebates 1,200,000 - - - 1,200,000 -
Regional Serivces Commission 1,009,640 841,360 841,360 - 1,009,640 -
Total Revenues 1 87,800,682 1 54,313,578 1 59,409,215 5 ,095,637 1 93,368,296 5 ,567,613
Expenditures
Growth & Community Services
Growth & Community Planning Services 1,826,081 1,502,121 1,208,856 293,266 1,641,508 184,573
Development Services 240,600 213,045 - 213,045 - 240,600
Development Engineering 369,657 311,071 301,061 10,010 366,334 3,323
Community Development 783,064 666,891 600,960 65,931 731,672 51,392
Animal Control 109,250 91,040 86,688 4,352 86,688 22,562
Dangerous and Vacant Building Program 468,954 434,923 151,759 283,164 195,788 273,165
Minimum Property Standards 492,521 416,201 413,620 2,581 435,343 57,178
Heritage Conservation Service 202,480 131,073 143,345 (12,272) 193,848 8,632
Cultural Affairs 139,453 121,749 106,455 15,294 106,879 32,574
Other By-Laws 297,303 250,014 184,057 65,957 274,227 23,076
Permitting & Inspection Services 1,412,306 1,192,368 1,179,425 12,943 1,400,557 11,749
Regional Economic Development Agency 3,087,500 2,473,952 1,695,746 778,206 3,465,041 (377,541)
Market Square 2,250,000 1,875,000 2,425,956 (550,956) 2,500,000 (250,000)
Saint John Trade & Convention Centre 317,066 279,666 34,553 245,113 279,666 37,400
Imperial Theatre 308,048 308,048 308,048 - 308,048 -
Saint John Aquatic Centre 421,418 421,418 487,664 (66,246) 421,418 -
Saint John Arts Centre 195,223 195,223 195,220 3 195,223 -
TD Station 491,949 491,949 582,556 (90,607) 491,949 -
Library 489,909 408,476 410,964 (2,488) 492,397 (2,488)
City Market 1,188,449 993,502 1,057,258 (63,756) 1,302,983 (114,534)
Arts & Culture Board 70,000 35,000 25,691 9,309 70,000 -
Public Art Maintenance & Repair 16,000 16,000 - 16,000 - 16,000
Remembrance Day 3,500 - - - 9,000 (5,500)
New Year/Canada Day Celebrations 50,000 25,000 45,556 (20,556) 67,290 (17,290)
PRO Kids 175,057 146,628 100,665 45,963 130,045 45,012
Succeed & Stay 165,118 136,333 71,338 64,995 125,171 39,947
Local Immigration Partnership 93,785 79,383 85,343 (5,960) 104,752 (10,968)
Carleton Community Center 190,700 190,700 190,313 388 190,313 388
Loch Lomond Community Center 45,000 45,000 45,000 - 45,000 -
North End Community Center 190,313 190,313 190,313 - 190,313 -
Recreation Programming 720,239 655,470 586,727 68,743 654,207 66,032
Neighbourhood Development 172,000 172,000 150,000 22,000 150,000 22,000
YMCA - Contracted Services 157,560 157,560 103,820 53,740 153,265 4,295
3
The City of Saint John
2024 General Fund Operating Budget
October 2024
2024YTD YTD YTD 20242024
BudgetBudgetActualVarianceYE ForecastVariance
$$$$$$
Growth & Community Services (continued)
Boys and Girls Club - Contracted Services 145,887 145,887 191,495 (45,608) 142,050 3,837
Unspecified Grants 284,000 284,000 279,000 5,000 289,000 (5,000)
Affordable Housing Strategy 217,660 182,530 127,019 55,511 157,554 60,106
Housing Accelerator Fund - - 323,979 (323,979) 566,977 (566,977)
Lifeguards 199,410 199,410 207,957 (8,547) 207,957 (8,547)
Play SJ 45,000 45,000 21,888 23,112 30,000 15,000
Lord Beaverbrook Rink 167,764 141,934 144,897 (2,963) 170,737 (2,973)
Building Incentive Reserve 350,000 233,332 691,756 (458,424) 691,756 (341,756)
Regional Services Commission 343,299 343,299 259,859 83,440 343,299 -
Community Improvement Reserve 558,266 558,266 - 558,266 - 558,266
Total Growth & Community Development Se 1 9,451,789 16,760,775 1 5,416,806 1 ,343,969 19,378,254 73,534
Public Safety Services
Fire Rescue and Suppression Service 24,270,386 20,491,648 20,118,395 373,253 23,984,060 286,327
Fire Training 10,437 8,670 - 8,670 - 10,437
Technical Rescue Response 52,119 43,826 34,410 9,416 42,041 10,079
Hazardous Materials 74,774 62,726 54,487 8,239 66,508 8,266
Fire Prevention 930,494 786,668 695,019 91,649 842,478 88,016
Fire Investigation 68,548 57,920 51,935 5,985 64,658 3,890
Emergency Management Services 356,233 300,536 184,199 116,337 219,904 136,329
Water Supply and Hydrants 2,500,000 2,083,330 2,083,330 - 2,500,000 -
Public Safety Communications Centre 3,184,017 2,687,140 2,285,493 401,647 3,004,680 179,337
Street Lighting 1,060,000 883,330 896,940 (13,610) 1,100,000 (40,000)
Saint John Board of Police Commissioners 29,537,473 23,962,715 20,999,426 2,963,289 28,662,574 874,899
Total Public Safety Services 62,044,481 51,368,509 4 7,403,633 3 ,964,876 6 0,486,903 1 ,557,578
Public Works & Transportation Services
Snow Control Streets 5,592,712 4,709,928 4,233,983 475,945 5,547,097 45,615
Street Cleaning 1,641,956 1,379,264 2,193,959 (814,695) 1,944,128 (302,172)
Utility Cuts 1,506,716 1,263,926 1,118,017 145,909 1,241,952 264,764
Street Services - Surface Maintenance 8,445,799 7,068,210 7,695,372 (627,162) 8,519,210 (73,411)
Snow Control Sidewalk 1,158,927 975,457 786,726 188,731 1,144,412 14,514
Sidewalk Maintenance 913,129 770,993 498,176 272,817 946,074 (32,945)
Pedestrian & Traffic Management Service 2,555,863 2,151,453 2,341,918 (190,465) 3,193,727 (637,864)
Solid Waste Management 4,082,708 3,425,350 3,348,000 77,350 4,041,275 41,434
Landscape - Parks & Open Spaces 2,182,304 1,841,553 2,185,191 (343,638) 2,444,745 (262,441)
Rockwood Park 527,829 453,741 556,279 (102,538) 613,427 (85,598)
Urban Forestry 414,439 348,704 289,093 59,611 334,288 80,152
Saint John Horticultural Association 60,000 60,000 60,000 - 60,000
-
Arena Operation & Maintenance 1,501,504 1,265,382 1,222,828 42,554 1,539,376 (37,871)
Sportsfield Operation & Maintenance 1,294,245 1,094,017 1,286,955 (192,938) 1,442,573 (148,328)
Other Facilities Operation & Maintenance 461,845 391,570 325,232 66,338 413,715 48,130
Transit Debt 1,609,000 450,209 450,209 - 1,609,000 -
Transit Subsidy 6,651,541 5,547,682 5,543,165 4,517 7,201,541 (550,000)
Fleet Operations 16,645 52,720 706,157 (653,437) 122,871 (106,226)
4
The City of Saint John
2024 General Fund Operating Budget
October 2024
2024YTD YTD YTD 20242024
BudgetBudgetActualVarianceYE ForecastVariance
$$$$$$
Public Works & Transportation Services (continued)
Fleet Stockroom 346,688 293,120 286,412 6,708 354,760 (8,072)
Stormwater Rural 1,799,192 1,519,402 1,691,275 (171,873) 2,240,450 (441,258)
Parking Administration 953,960 799,111 723,953 75,158 954,594 (634)
Peel Plaza Parking Garage 405,697 370,996 281,929 89,067 317,765 87,932
Market Square Parking Garage 154,283 128,567 162,228 (33,661) 197,088 (42,804)
Off Street Parking 1,180,095 979,028 737,273 241,755 987,571 192,524
Total Public Works & Transportation Service 4 5,457,077 37,340,383 38,724,327 ( 1,383,944) 47,411,638 ( 1,954,561)
Utilities & Infrastructure Services
Engineering 1,388,105 1,175,292 1,055,601 119,691 1,310,754 77,352
Carpenter Shop 400,977 342,714 268,092 74,622 322,682 78,295
Facilities Management 1,633,135 1,375,660 1,129,803 245,857 1,602,415 30,720
City Hall Building 1,021,696 851,910 1,013,364 (161,454) 1,203,936 (182,240)
Police Headquarters - 74,470 166,310 (91,840) (10,000) 10,000
GIS 442,364 372,496 289,687 82,809 431,332 11,032
Stockroom 220,396 185,806 181,721 4,085 214,731 5,665
Stormwater Urban 2,250,789 1,883,957 1,939,526 (55,569) 2,251,066 (277)
Total Utilities & Infrastructure Services 7,357,463 6 ,262,305 6,044,105 2 18,200 7 ,326,917 3 0,546
Strategic Services
Finance 1,413,726 1,272,658 973,277 299,381 1,148,371 265,355
Assessment 1,837,897 1,767,493 1,767,493 - 1,767,493 70,404
Supply Chain Management 446,624 377,272 349,517 27,755 414,859 31,765
Information Technology 3,782,930 3,275,451 2,713,209 562,242 3,497,192 285,738
Corporate Planning 337,961 285,112 203,524 81,588 362,963 (25,002)
Insurance 215,965 182,010 110,076 71,934 126,419 89,546
Liability Insurance 575,000 575,000 544,561 30,439 544,561 30,439
Total Strategic Services 8,610,102 7 ,734,996 6,661,656 1 ,073,340 7 ,861,857 7 48,245
Corporate Services
City Manager's Office 759,584 637,734 782,881 (145,147) 895,494 (135,910)
Mayor's Office 161,579 135,914 137,280 (1,366) 179,612 (18,033)
Common Council 593,458 499,616 463,229 36,387 561,825 31,633
Common Clerk 742,413 627,178 603,754 23,424 720,605 21,808
Human Resources 2,379,426 2,005,870 1,994,226 11,644 2,425,348 (45,922)
Legal Department 1,150,316 970,136 1,240,633 (270,497) 1,439,492 (289,175)
Real Estate 186,004 162,616 160,431 2,185 182,352 3,652
Saint John Industrial Parks 558,501 474,998 326,832 148,166 354,754 203,747
Barge Terminal 25,000 20,820 2,304 18,516 2,304 22,696
Customer Service 993,065 837,092 770,457 66,635 920,084 72,981
Corporate Communications 527,882 444,190 364,249 79,941 447,982 79,901
External Relations 217,937 183,638 149,117 34,521 195,339 22,598
Total Corporate Services 8 ,295,166 6,999,802 6 ,995,392 4 ,410 8,325,190 (30,023)
Other Charges
Fiscal Charges 15,420,429 8,788,856 8,806,170 (17,314) 15,398,016 22,413
Landfill Closure 300,000 250,000 250,000 - 300,000 -
Special Pension Contributions 10,225,000 8,520,830 8,812,972 (292,142) 10,225,000 -
Transfer to Capital Reserves 3,655,721 3,046,430 3,728,016 (681,586) 7,655,819 (4,000,098)
Payment in Lieu of Taxes (PILT) Adjustments 48,454 40,370 48,453 (8,083) 48,454
-
5
The City of Saint John
2024 General Fund Operating Budget
October 2024
2024YTD YTD YTD 20242024
BudgetBudgetActualVarianceYE ForecastVariance
$$$$$$
Other Charges (continued)
Capital from Operating 6,800,000 5,666,660 6,006,660 (340,000) 6,800,000 -
Operating Reserves 135,000 112,500 - 112,500 1,047,642 (912,642)
Total Other Charges 36,584,604 2 6,425,646 27,652,270 ( 1,226,624) 4 1,474,931 ( 4,890,327)
Total Expenditures 1 87,800,682 1 52,892,416 1 48,898,190 3 ,994,226 1 92,265,690 ( 4,465,007)
Surplus (Deficit)
- 1,421,162 1 0,511,025 9 ,089,863 1,102,606 1,102,606
6
Saint John Water
2024 Water & Sewerage Operating Budget
October 2024
2024YTD YTD YTDYEYE
BudgetBudgetActualVarianceForecastVariance
$$$$$$
Revenues
Flat Rate Accounts 22,250,000 22,250,000 22,188,775 (61,225) 22,160,000 (90,000)
Meter Rate Accounts 15,732,057 10,488,436 12,069,905 1,581,469 18,316,140 2,584,083
Industrial Raw Water Accounts 7,819,412 5,212,900 6,565,195 1,352,295 7,865,195 45,783
Fire Protection Levy 2,500,000 2,083,330 2,083,330 - 2,500,000 -
Storm Sewer Levy 945,000 787,500 787,500 - 945,000 -
Other Revenues 1,455,581 1,162,660 1,970,115 807,455 3,637,992 2,182,411
Previous Year's Surplus 737,371 614,770 614,770 - 737,371 -
Transfer from Reserve 750,000 - - - 1,637,804 887,804
Total Revenues 52,189,421 42,599,596 46,279,590 3,679,994 57,799,502 5,610,081
Expenditures
Drinking Water Service 22,667,655 18,927,396 19,290,065 (362,669) 25,585,578 (2,917,923)
Wastewater Service 20,462,531 16,231,482 15,920,590 310,892 21,068,054 (605,523)
Infrastructure Management 837,530 705,555 629,397 76,158 754,969 82,561
Industrial Water Service 8,221,705 5,373,359 5,635,009 (261,650) 10,186,316 (1,964,611)
Total Expenditures 52,189,421 41,237,792 41,475,062 (237,270) 57,594,917 (5,405,496)
Surplus (Deficit) - 1,361,804 4,804,528 3,442,724 204,585 204,585
Saint John Water
2024 Water & Sewerage Operating Budget
Salaries and Goods & Services
October 2024
DrinkingWaterService
Wages and Benefits 3,682,609 3,117,137 3,572,876 (455,739) 4,079,569 (396,960)
Goods & Services 18,985,046 15,810,259 15,717,190 93,069 21,506,009 (2,520,963)
Total22,667,65518,927,39619,290,065 (362,669)25,585,578(2,917,923)
WastewaterService
Wages and Benefits 4,501,594 3,809,036 3,603,537 205,499 4,340,830 160,764
Goods & Services 15,960,937 12,422,446 12,317,053 105,393 16,727,223 (766,286)
Total20,462,53116,231,48215,920,590 310,89221,068,054(605,523)
InfrastructureManagement
Wages and Benefits 591,394 500,408 466,440 33,968 548,628 42,766
Goods & Services 246,136 205,147 162,956 42,191 206,341 39,795
Total837,530705,555629,397 76,158754,96982,561
IndustrialWaterService
Wages and Benefits 1,193,679 1,010,049 649,020 361,029 932,743 260,936
Goods & Services 7,028,026 4,363,310 4,985,990 (622,680) 9,253,574 (2,225,548)
Total8,221,7055,373,3595,635,009 (261,650)10,186,316(1,964,611)
TOTALEXPENDITURES52,189,42141,237,79241,475,062(237,270)57,594,917(5,405,496)
1
Saint John Water
2022 Water & Sewerage Operating Budget
October 2024
2024YTD YTD YTDYEYE
BudgetBudgetActualVarianceForecastVariance
Revenues
Flat Rate Accounts 22,250,000 22,250,000 22,188,775 (61,225) 22,160,000 (90,000)
Meter Rate Accounts 15,732,057 10,488,436 12,069,905 1,581,469 18,316,140 2,584,083
Industrial Raw Water Accounts 7,819,412 5,212,900 6,565,195 1,352,295 7,865,195 45,783
Fire Protection Levy 2,500,000 2,083,330 2,083,330 - 2,500,000 -
Storm Sewer Levy 945,000 787,500 787,500 - 945,000 -
Other Revenues 1,455,581 1,162,660 1,970,115 807,455 3,637,992 2,182,411
Previous Year's Surplus 737,371 614,770 614,770 - 737,371 -
Transfer from Reserves 750,000 - - 1,637,804 887,804
Total Revenues 52,189,421 42,599,596 46,279,590 3,679,994 57,799,502 5,610,081
Expenditures
Drinking Water Service
Watershed Management 676,222 565,131 666,472 (101,341) 1,222,894 (546,672)
Water Treatment 9,122,364 7,627,095 7,211,410 415,685 8,870,537 251,827
Water Pumping & Storage 1,244,611 1,068,576 1,103,182 (34,606) 1,318,885 (74,274)
Transmission & Distribution 4,491,783 3,769,991 4,184,496 (414,505) 5,494,728 (1,002,945)
Customer Metering 712,793 598,823 710,453 (111,630) 760,146 (47,353)
Internal Charges 465,000 335,410 338,648 (3,238) 465,000 -
Other Charges 562,486 468,730 532,703 (63,973) 562,486 -
Debt Servicing 3,676,774 3,063,960 3,058,551 5,409 3,670,274 6,500
Transfer to Operating Reserve - - - - 5,006 (5,006)
Transfer to Capital Reserve - - 54,471 (54,471) 1,500,000 (1,500,000)
Capital from Operating 1,715,622 1,429,680 1,429,680 - 1,715,622 -
Total Drinking Water Service 22,667,655 18,927,396 19,290,065 (362,669) 25,585,578 (2,917,923)
Wastewater Service
Wasterwater Pumping 3,314,763 2,795,823 3,317,904 (522,081) 4,212,901 (898,138)
Wastewater Collection 3,110,344 2,613,629 2,496,905 116,724 3,350,697 (240,353)
Wastewater Treatment 6,225,206 5,251,056 4,470,836 780,220 5,694,488 530,718
Internal Charges 465,000 335,410 335,410 - 465,000 -
Other Charges 562,486 468,730 532,703 (63,973) 562,486 -
Debt Servicing 2,959,598 1,579,224 1,579,222 - 2,957,348 2,250
Capital from Operating 3,825,134 3,187,610 3,187,610 - 3,825,134 -
Total Wastewater Services 20,462,531 16,231,482 15,920,590 310,890 21,068,054 (605,523)
Infrastructure Management
Engineering Services 837,530 705,555 629,397 76,158 754,969 82,561
Total Infrastructure Managemen 837,530 705,555 629,397 76,158 754,969 82,561
Industrial Water Service
Watershed Management 695,929 582,796 357,924 224,872 556,275 139,654
Water Pumping & Transmission 2,869,275 2,406,345 3,068,683 (662,338) 4,801,344 (1,932,069)
Customer Metering 269,461 225,458 49,643 175,815 136,611 132,850
Debt Servicing 1,796,522 - - - 1,796,522 -
Transfer to Capital Reserves 836,677 697,230 697,230 - 952,856 (116,179)
Transfer to Operating Reserve 1,118,631 932,190 932,190 - 1,307,498 (188,867)
Capital from Operating 635,210 529,340 529,340 - 635,210 -
Total Industrial Water Service 8,221,705 5,373,359 5,635,009 (261,650) 10,186,316 (1,964,611)
Total Expenditures 52,189,421 41,237,792 41,475,062 (237,270) 57,594,917 (5,405,496)
Surplus (Deficit) - 1,361,804 4,804,528 3,442,724 204,585 204,585
2
FINANCECOMMITTEEREPORT
Report DateNovember 27, 2024
Meeting DateDecember 04, 2024
Chairman SullivanandMembers of Finance Committee
SUBJECT: 2024Operating and Capital Reserves
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Finance Committee.
AUTHORIZATION
Primary AuthorCommissioner/Dept. Chief Administration
HeadOfficer
Craig LavigneKevin FudgeJ. Brent McGovern
RECOMMENDATION
It is recommended that members of the Finance Committeeapprove the transfers
to and from the following reserves and forward a copy of the report to Common
Council for approval.
General Operating Reserves
$816,000fromthe General Operating Fund to the General Operating
Reserve
$1,134,758from the General Operating Reserve to the General Operating
Fund
$250,000 from the General Capital Reserve to the General Operating
Reserve
General Capital Reserves
$12,662,936from the General Operating Fund to General Capital Reserve
$6,543,838from the General CapitalReserve to the General Capital Fund
$250,000 from the General Capital Reserveto General Operating Reserve
Utility Operating Reserves
$1,118,631from the Utility Operating Fund to the Utility Operating
Reserve(Industrial Rate Stabilization)
$1,637,894from the Utility Operating Reserve to the Utility Operating
Fund
- 2 -
Utility Capital Reserves
$3,124,400 from the Utility Operating Fund to the Utility Fund Capital
Reserve
EXECUTIVE SUMMARY
The Reserve Policy was approved by Common Council on December 11, 2017. The
purpose of the Reserve Policy is to address longer term funding strategies to
minimize debt servicing costs, address the infrastructure deficit, and mitigate the
effects of unanticipated events. Permitted uses of reserves according to the
Reserve Policy are:
1. Major unanticipated/unforeseen events.
2. Major Capital renewal.
3. Future Liabilities.
4. One-time operating expenses which are greater than $100,000 and are not
part of the recurring operating budget.
5. Infrastructure deficit; and
6. Investment in growth opportunities.
In addition to the Reserve Policy, the City must comply with the Provincial Reserve
Fund Regulation which prescribes that the establishment, funding, and
withdrawal of Reserve funds which can only be done through resolutions of
Common Council before the end of each calendar year.
To comply with the Provincial Legislation, Staff recommend that Common Council
approve the recommendation in this report for contribution to and withdrawal
from the Reserves. Many of the recommendations have been approved by
Council (Exhibit A) and the purpose is to finalize the actuals transfers to and from
the various reserves.
PREVIOUS RESOLUTIONS
See Exhibit A
STRATEGIC ALIGNMENT
approved Reserve Policy.
REPORT
BACKGROUND
The City must comply with the Provincial Reserve Fund Regulation which
prescribes that the establishment, funding, and withdrawals of Reserve funds can
only be done through resolutions of Common Council before the end of each
calendar year.
- 3 -
General Fund
The General Operating Reserve balance for the end of 2024 will be $8,388,570.
The maximum amount that can be held in this reserve is regulated by Provincial
regulations. Municipalities can have a balance of no more than 5% of previous
dget which would be $8,864,375 for Saint John.
General Operating Reserve has funding to mitigate the risks and support various
initiatives such as;
Winter storm mitigation
Benefit fluctuations due to actuarial reviews
Various growth-related initiatives
Transfers to the Operating Reserve includes funding of $181,000 from Growth and
Community Development services operating budget for development incentives
and urban development incentives to fund commitments already made. There is
also $135,000 transferred into the Operating Reserve as part of the 2024 budget
and an additional $250,000 transferred from the Strategic Land Reserve to fund
Industrial Parks initiatives and $500,000 to fund future development incentives.
There will also be $412,624 transferred into the Operating Reserve for interest
earned on funds held in the reserve which is a Provincial requirement.
The transfers out of the Growth and Operating Reserves for 2024 is $1,134,758.
The transfers out include the agreement with SJ Sea Dogs ($17,500), Sophia
Recovery ($50,000), Powwow Event ($50,000), Bylaw Enforcement and
enhancement project ($147,258), funding for Industrial Parks ($250,000) and
funding for the study of raising the Courtney Bay Causeway ($280,000). These
transfers were also approved previously by Common Council.
General Capital Reserves which will have a balance of $32,175,098 at the end of
2024. There are no Provincial limits on Capital Reserve balances. The General
Capital Reserve has funding for the following.
Fleet Reserves
Information Technology
Capital Replacement
Recreation Facility
Strategic Real Estate Reserve
Self insurance Reserve
The 2024 Operating Budget included a transfer of $3,665,721 to the Capital
Reserve with $3,000,000 to be allocated to toward a new multipurpose recreation
facility. Transfer to various fleet reserves, IT reserves, and insurance reserve were
all budgeted for as part of the 2024 Operating budget.
- 4 -
The following transfers to the General Fund Capital Reserve are being
recommended to align with use of one-time funds, timing delays in projects and
carry over of expenses to occur in 2025:
Land Sales to be transferred to Strategic Land Reserve - $681,586
Road Resurfacing Project to be competed in 2025 - $1,650,000
Sale of equipment - $340,000
Fund future Fire Ladder Truck - $1,000,000
Additional contribution to reserve - $1,000,000
The transfer from the Capital Reserve includes $1,518,039 for Capital projects that
were approved with funding from Capital Reserves and $1,500,000 for land
purchase on behalf of Industrial Parks and $250,000 from the land reserve to fund
operating of Industrial Parks which were previously approved by Common Council.
The transfers to and from the Fleet and IT reserves are part of both Operating
budget and Capital budgets. There is also an additional $978,512 in interest that
is transferred across the Capital Reserves and the amount is higher than past
interest due to the current high interest rates.
Utility Fund
Utility Operating Reserve has a maximum limit of $2,609,471 and will have a
balance of $1,964,684 for 2024. The operating reserves includes funds for
Managing risk of unforeseen impacts to potable revenue or expenditures
Industrial Rate Stabilization
The transfer of $1,118,631 into the Operating Reserve was part of the 2024
Industrial Raw Water Operating Budget. Staff are also recommending the transfer
of $1,637,804 from the Industrial Operating Reserve to fund a significant
operating expenditure under the industrial raw water budget that occurred in
2024.
The Utility Capital Reserve will have a balance of $17,035,172 for 2024 and balance
includes reserves for.
Fleet Replacement
Industrial Capital
Potable Capital includes the additional $1,500,000 due to revenue
surplus
The Operating budget included the transfers into the fleet, industrial reserves and
there was also $678,935 in interest transferred into the reserves.
- 5 -
Conclusion
The City has continued to follow its various financial policies and has been able to
build its reserves that were essentially nonexistent a short few years ago. The
Operating Budget Policy ensures that non-recurring revenues do not fund ongoing
services.
SERVICE AND FINANCIAL OUTCOMES
plan, reserve polices, and approved 2024 budget.
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
Input has been received from other services areas
ATTACHMENTS
Exhibit A 2024 Reserve Schedule
1,964,684
($)8,388,570($)
17,035,172
32,175,098
40,563,66818,999,857
Ending Balance Ending Balance
1,134,7586,543,8381,637,804
7,678,5961,637,804
from ($)from ($)
Withdrawals Withdrawals
412,624978,512121,185678,935 800,120
1,391,136
Interest ($)Interest ($)
1,066,0001,118,6313,124,400
4,243,031
12,662,936
13,728,936
Transfers to ($)Transfers to ($)
8,044,7042,362,672
($)($)
25,077,48713,231,836
33,122,19115,594,509
Opening Balance Opening Balance
Exhibit ACity of Saint John 2024 Reserves General Fund Operating ReservesCapital Reserves Utility Fund Operating ReserveCapital Reserves
144,765102,605374,890
($)6,490,4311,898,1396,259,4322,410,3061,113,6432,453,575($)1,862,0803,896,8844,707,7818,055,617
19,793,377
40,563,66818,999,857
Ending Balance Ending Balance
777,258357,500590,201
3,268,0391,512,6081,172,9901,637,804
7,678,5961,637,804
from ($)from ($)
Withdrawals Withdrawals
5,006
76,82536,69318,290
335,799461,074258,388100,825121,531116,179155,402188,867316,376 800,120
1,391,136
Interest ($)Interest ($)
385,000681,000144,765361,567552,830711,702836,677
7,611,0352,476,0011,516,7381,118,6311,576,021
4,243,031
13,728,936
Transfers to ($)Transfers to ($)
97,599
715,383356,599
6,546,8901,497,8145,037,6501,965,7342,369,4142,265,0743,029,7803,682,2376,163,220
($)
14,989,307
33,122,19115,594,509
Opening Balance
City of Saint John 2024 Reserves - DetailedGeneral Fund Operating ReserveGrowth/Development Incentive RCapital ReserveFleet ReserveFire Fleet ReserveInsurance ReservePolice Fleet ReserveComputer
Reserve Utility Fund Operating ReserveIndustrial Rate StabilizationFleet ReserveInfrastructure ReserveIndustrial Capital ReservePotable Capital Reserves