Loading...
2025-05-14 Finance Committee Minutes - Open SessionFinance Committee Meeting Open Session May 14, 2025 MINUTES —OPEN SESSION FINANCE COMMITTEE MEETING MAY 14, 2025 AT 4:30 PM MEETING CONDUCTED BY ELECTRONIC PARTICIPATION Present: Mayor D. Noade Reardon Councillor G. Sullivan Councillor P. Radwan Absent: Councillor G. Norton Councillor G. Stewart Also Present: Chief Administrative Office B. McGovern Commissioner of Finance and Treasurer K. Fudge Fire Chief R. Nichol Commissioner Human Resources S. Hossack Commissioner Growth & Community Services A. Poffenroth Commissioner Public Works & Transportation M. Hugenholtz Commissioner Utilities & Infrastructure I. Fogan Director Financial Services J. Forgie Director Financial Services C. Lavigne Intermediate Accountant V. Parikh Director Engineering M. Baker Director Corporate Performance S. Rackley-Roach 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 March 19, 2025 Moved by Mayor Noade Reardon, seconded by Councillor Radwan: RESOLVED that the minutes of March 19, 2025 be approved. MOTION CARRIED. 3. Approval of Agenda Moved by Mayor Noade Reardon, seconded by Councillor Radwan: RESOLVED that the agenda of May 14, 2025 be approved. MOTION CARRIED. 4. Disclosures of Conflict of Interest No disclosures. 5. Consent Agenda Finance Committee Meeting Open Session May 14, 2025 6. Business Matters 6.1 Common Council Referral — Internal Audit of Snow Maintenance DirectorJ. Forgie stated that this request can be accommodated this fall and that a scope of work, budget, and timelines will be brought back to the Finance Committee at a subsequent meeting. The entire winter management program would be reviewed, possibly resulting in more than one phase of work. Commissioner Hugenholtz commented on the context of the audit, noting that during sustainability efforts in 2020 significant reductions were made to the winter management service. This included the decommissioning of 11 plow trucks and the elimination of 16 positions. No service level adjustments were made at that time. To try to sustain service levels, adjustments were made to routes and shifts but the intent was to experience a few winter cycles to determine if those service levels are sustainable with the current resource levels. This past winter season was especially challenging with significant equipment issues, noting that this could be a focus area of the audit. Moved by Councillor Sullivan, seconded by Councillor Radwan: RESOLVED that the Council request to add an Internal Audit of the City's Winter Management Plan to its list of internal audits, be approved. 6.2 January to March Year -to -Date General and Utilitv Fund Financial Results Director C. Lavigne reviewed the submitted presentation "General and Utility Fund March 31, 2025 Year to Date Financial Results." Overall, the financial results show a surplus, largely attributable to a combination of salaries and benefits due to various vacancies, and within goods and services due to timing issues. There is a very favourable variance in building permits. Transportation services are experiencing some financial pressure due to the challenging winter season and infrastructure failures. Staff will continue to monitor and work to mitigate these over -expenditures. Moved by Mayor Noade Reardon, seconded by Councillor Radwan: RESOLVED that the presentation entitled " General and Utility Fund March 312025, Year to Date Financial Results", be received for information and any questions be directed to staff. MOTION CARRIED. 6.3 2026 Operating Budget — Timeline / Shape your Budget C. Lavigne commented on the timelines and processes regarding the 2026 budget process. Input will be gathered through the City's Shape your Budget platform, town hall meetings, and input from Council members. Moved by Mayor Noade Reardon, seconded by Councillor Radwan: RESOLVED that the submitted presentation "2026 Budget Timelines and Process" be received for information. MOTION CARRIED. 6.4 5 Year Capital Budget Update Commissioner Fogan reviewed the submitted presentation "Five -Year Capital Investment Plan." This multi -year plan will provide a more comprehensive picture of the City's capital planning initiatives compared to an annual capital budget. It also allows for flexibility and opportunity to move project timelines to optimize budget envelopes, ensure alignment with current Council priorities, and to capitalize on potential funding opportunities. The plan will be a five-year rolling plan starting from 2026-2030. An updated plan will be provided annually as part of the Capital budget process. It is important to note that the Five -Year Capital Investment Plan is a guide and not an approved budget, nor set in stone. Moved by Mayor Noade Reardon, seconded by Councillor Radwan: RESOLVED that the submitted presentation "Five Year Capital Investment Plan" be received for information by the Finance Committee; and further that the presentation be referred to Common Council for a receive and file motion in June. Finance Committee Meeting Open Session May 14, 2025 MOTION CARRIED. 6.5 Provincial Update — Property Taxes / Reform Commissioner Fudge reviewed the submitted presentation "Fiscal Reform and Property Tax Freeze Legislation." Two bills have been brought forward in the provincial legislature that will significantly impact the development of the City's 2026 budget. The first is a proposed fiscal reform package, worth approximately $63M in new funding opportunities to municipalities through a modernized equalization fund, a new capital renewal fund, and increased funding in regional services support fund. The level of allocations for Saint John or the Fundy Regional Services Commission is not yet known. Conversely, the province unexpectantly introduced legislation to freeze property assessments in NB for the fiscal year 2026. This freeze could cost municipalities $58M according to the UMNB which almost negates the estimated $63M benefit under the fiscal reform package introduced the same week. There are some exceptions such as new construction and major improvements will be fully assessed, and property sales and corrections/errors will be properly assessed. When a similar freeze occurred in 2018, many municipalities had to increase their property tax, to help offset the difference. Municipal costs will continue to rise regardless of the assessment freeze and is not an effective tool to address affordability issues. Assessment freezes are consequential to municipalities given that 85% of revenue collected is from property tax. Municipalities are not permitted by legislation to budget for deficits, do not have the ability to create new taxes, nor have a diversified revenue stream to mitigate the risk of an assessment freeze. For Saint John, the cost of the assessment freeze is equivalent to 7 cents on the tax rate and could result in lost revenue of $7M. Moved by Mayor Noade Reardon, seconded by Councillor Radwan: RESOLVED that the submitted presentation "Fiscal Reform and Property Tax Freeze Legislation" be received for information. MOTION CARRIED. 7. Adjournment Moved by Councillor Radwan, seconded by Mayor Noade Reardon: RESOLVED that the Finance Committee meeting be adjourned. MOTION CARRIED. The Finance Committee open session meeting held on May 14, 2025, was adjourned at 5:50 p.m.