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2024-12-04 Finance Committee Minutes - Open Session Finance Committee Meeting Open Session December 4, 2024 MINUTES – OPEN SESSION FINANCE COMMITTEE MEETING DECEMBER 4, 2024 AT 4:30 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 Deputy Fire Chief E. Moyer General Counsel M. Tompkins Commissioner Human Resources S. Hossack Commissioner Growth & Community Services A. Poffenroth Commissioner Public Works & Transportation M. Hugenholtz Manager Analytics, Risk Management & Support, Fire L. Robichaud Director Saint John Water K. Mason 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 November 18, 2024 Moved by Mayor Noade Reardon, seconded by Councillor Stewart: RESOLVED that the minutes of November 18, 2024 be approved. MOTION CARRIED. 3. Approval of Agenda Moved by Mayor Noade Reardon, seconded by Councillor Stewart: RESOLVED that the agenda of December 4, 2024 be approved with the addition of Item 6.0 Heavy Industrial Assessment (Verbal Update). MOTION CARRIED. 4. Disclosures of Conflict of Interest No disclosures. 5. Consent Agenda 6. Business Matters Finance Committee Meeting Open Session December 4, 2024 6.0 Heavy Industrial Assessments (Verbal Update) Commissioner Fudge stated that he wanted to correct some information related to the assessment base information on heavy industrial properties reported at a previous meeting. At that time, an estimated $9.9M was provided as the amount that would be transferred from the province if fiscal reform were to occur. Subsequent to that meeting, a more detailed review was conducted and it was ascertained that a number of properties are exempt from paying provincial property taxes. Taking this information into account, a revised estimate for the taxes collected by the province on heavy industrial properties is approximately $7M rather than the $9.9M reported previously. Moved by Mayor Noade Reardon, seconded by Councillor Radwan: RESOLVED that the Heavy Industrial Assessment verbal update be received for information. MOTION CARRIED. 6.1 Saint John Water Long Term Financial Plan Director Mason and A. Mirabella, Hemson Consulting, reviewed the submitted report “Saint John Water Long Term Financial Plan.” Moved by Mayor Noade Reardon, seconded by Councillor Norton: RESOLVED that the Finance Committee receive and file the Utility’s Long Term Financial Plan. MOTION CARRIED. 6.2 October Unaudited Financial Results and Year End Projections General Fund and Utility Fund Director Lavigne provided a high-level overview of the estimated year-end results for the General Fund and the Utility Fund. Moved by Mayor Noade Reardon, seconded by Councillor Stewart: RESOLVED that the Finance Committee endorse the staff recommendation of the reserve transfers to both General Fund and Utility Fund; and that this presentation be received for information and any questions be directed to staff. MOTION CARRIED. 6.3 2024 Reserve Director Lavigne stated that 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. In addition to the Reserve Policy, the City must comply with the Provincial Reserve Fund Regulation which states that the establishment, funding, and withdrawal of Reserve funds can only be done through resolutions of Council. Moved by Mayor Noade Reardon, seconded by Councillor Stewart: RESOLVED that the Finance Committee approve the transfers to and from the following reserves and forward a copy of the report to Common Council for approval: General Operating Reserves  $816,000 from the General Operating Fund to the General Operating Reserve  $1,134,758 from the General Operating Reserve to the General Operating Fund  $250,000 from the General Capital Reserve to the General Operating Reserve General Capital Reserves  $12,662,936 from the General Operating Fund to General Capital Reserve  $6,543,838 from the General Capital Reserve to the General Capital Fund  $250,000 from the General Capital Reserve to General Operating Reserve Utility Operating Reserves  $1,118,631 from the Utility Operating Fund to the Utility Operating Reserve (Industrial Rate Stabilization) Finance Committee Meeting Open Session December 4, 2024  $1,637,894 from the Utility Operating Reserve to the Utility Operating Fund Utility Capital Reserves  $3,124,400 from the Utility Operating Fund to the Utility Fund Capital Reserve MOTION CARRIED. 7. Information Items 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 December 4, 2024, was adjourned at 5:35 p.m.