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2025-11-12 Finance Committee Agenda Packet - Open Session City of Saint John Finance Committee - Open Session AGENDA Wednesday, November 12, 2025 4:30 pm Meeting Conducted by Electronic Participation Pages 1.Call to Order 2.Approval of Minutes 2.1 Minutes of October 29, 2025 1 - 3 3.Approval of Agenda 4.Disclosures of Conflict of Interest 5.Consent Agenda 6.Business Matters 6.1 2026 General Fund Operating Budget 4 - 44 6.2 2026 Utility Fund Operating Budget 45 - 62 6.3 September 2025 Year to Date and Year End Financial Projections 63 - 103 7.Adjournment Finance Committee Meeting Open Session October 29, 2025 MINUTES – OPEN SESSION FINANCE COMMITTEE MEETING OCTOBER 29, 2025 AT 4:30 PM MEETING CONDUCTED BY ELECTRONIC PARTICIPATION Present: Mayor D. Noade Reardon Councillor G. Sullivan Councillor P. Radwan Councillor G. Stewart Absent: Councillor G. Norton Also Present: Chief Administrative Office B. McGovern Commissioner of Finance and Treasurer K. Fudge General Counsel M. Tompkins Commissioner Growth & Community Services A. Poffenroth Assistant Deputy Chief L. Robichaud Commissioner Human Resources S. Hossack Commissioner Public Works & Transportation M. Hugenholtz Commissioner Utilities & Infrastructure I. Fogan Director Financial Services J. Forgie Director Financial Services C. Lavigne Director External Relations L. Kennedy Director Corporate Performance S. Rackley-Roach Deputy City Clerk A. McLennan 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 August 20, 2025 Moved by Mayor Noade Reardon, seconded by Councillor Radwan: RESOLVED that the minutes of August 20, 2025 be approved. MOTION CARRIED. 3. Approval of Agenda Moved by Mayor Noade Reardon, seconded by Councillor Radwan: RESOLVED that the agenda of October 29, 2025 be approved. MOTION CARRIED. 4. Disclosures of Conflict of Interest No disclosures. 1 Finance Committee Meeting Open Session October 29, 2025 5. Consent Agenda 5.1 2024 Annual Report Moved by Mayor Noade Reardon, seconded by Councillor Radwan: RESOLVED that the 2024 Annual Report be received for information. MOTION CARRIED. 6. Business Matters 6.1 Proposed Winter Management Internal Audit Director Forgie reviewed the submitted report “Internal Audit Winter Management.” A review of the City’s service delivery model for snow control will be undertaken to determine if opportunities exist to optimize winter control service delivery. KMPG has been identified as the consultant who will perform the review which will include subject matter experts in the field of municipal winter operations. Moved by Councillor Radwan, seconded by Mayor Noade Reardon: RESOLVED that the Finance Committee recommends to Council to approve the Winter Management Internal Audit as part of the 2025/2026 Internal Audit Plan. MOTION CARRIED. 6.2 2026 General Fund Operating Budget (Councillor Stewart joined the meeting electronically) Commissioner Fudge reviewed the submitted presentation “2026 General Fund Operating Budget.” Moved by Mayor Noade Reardon, seconded by Councillor Stewart: RESOLVED that the presentation entitled “2026 General Fund Operating Budget” be received for information. MOTION CARRIED. 6.3 2026 Utility Fund Operating Budget Commissioner Fogan reviewed the submitted presentation “2026 Utility Fund Operating Budget.” Moved by Mayor Noade Reardon, seconded by Councillor Stewart: RESOLVED that the presentation entitled “2026 Utility Fund Operating Budget” be received for information and any questions be directed to Staff. MOTION CARRIED. 6.4 2026 General and Utility Fund Capital Budget Commissioner Fogan reviewed the submitted presentation “Revised 2026 Draft General and Utility Fund Capital Budget.” Moved by Councillor Radwan, seconded by Councillor Stewart: RESOLVED that the Finance Committee approve the revised 2026 Draft General and Utility Fund Capital Budgets and send to the next meeting of Common Council for receive and file. MOTION CARRIED. 7. Adjournment Moved by Mayor Noade Reardon, seconded by Councillor Radwan: RESOLVED that the Finance Committee meeting be adjourned. 2 Finance Committee Meeting Open Session October 29, 2025 MOTION CARRIED. The Finance Committee open session meeting held on October 29, 2025, was adjourned at 6:10 p.m. 3 FINANCE COMMITTEE REPORT Report Date November 03, 2025 Meeting Date November 12, 2025 Service Area Strategic Services Chairman Sullivan and Members of Finance Committee SUBJECT: 2026 General Fund Operating Budget OPEN OR CLOSED SESSION This matter is to be discussed in Finance Committee Open Session. AUTHORIZATION Primary Author Commissioner/Dept. Head Chief Administrative Officer Craig Lavigne Kevin Fudge J. Brent McGovern RECOMMENDATION It is recommended that Finance Committee endorse the proposed 2026 General Fund Operating Budget and forward the budget to Common Council for receive and file EXECUTIVE SUMMARY The proposed 2026 General Operating Budget was presented to the Finance Committee on October 29th, 2025. The budget has been produced based on the Council’s strategic priorities, 10-year Strategic Plan, as well as on the principles, policies and targets contained in the City’s Long Term Financial Plan. The proposed 2025 General Operating Budget totals $205,078,040, up 5.5% year over year. The budget includes a property tax rate reduction of 1.5 cents, from $1.55 to $1.535 per $100 of assessed value. If approved by Council, the 2025 property tax rate would be reduced by a total of 25 cents or 14% reduction over the last four years. The budget also incorporates maintaining the tax differential for Commercial and Heavy Industry at 1.7 which aligns with the City’s strategy on tax reform. PREVIOUS RESOLUTION Finance Committee – October 29th, 2025 – “Its recommended Finance Committee receive and file the draft 2026 General Fund Operating Budget and direct any questions to staff” 4 - 2 - STRATEGIC ALIGNMENT The proposed 2026 draft General Fund Operating Budget is aligned with Councils’ priorities, the 10-year Strategic Plan, the City’s financial policies and plans, and strategic operational plans. REPORT The proposed 2026 General Operating Budget was presented to the Finance Committee on October 29th, 2025. The budget has been produced based on the Council’s strategic priorities, 10-year Strategic Plan, as well as on the principles, policies and targets contained in the City’s Long Term Financial Plan. The proposed 2025 General Operating Budget totals $205,078,040, up 5.5% year over year. The budget includes a property tax rate reduction of 1.5 cents, from $1.55 to $1.535 per $100 of assessed value. If approved by Council, the 2025 property tax rate would be reduced by a total of 25 cents or 14% reduction over the last four years. The budget also incorporates maintaining the tax differential for Commercial and Heavy Industry at 1.7 which aligns with the City’s strategy on tax reform. Revenue Property tax assessment has increased based on a growth rate of 1.78 due to the Province freezing assessments. The proposed reduction of the tax rate to $1.535 and increased property tax assessment results in an increase of annual property tax revenue of $852,800 or 0.54% over the previous year. However, the Fiscal Capacity Funding (formerly Unconditional Grant) saw an increase of $4,384,432 or 34.24% increase over prior year. Own source revenue increased by $5,446,244 due to several factors such as increased transfer from reserves, capital funding, housing for all and housing accelerator funding. Below is a summary of all the changes year over year. 5 - 3 - Expenditures Overall expenditure is up year by $10,683,476 or 5.5%. Wages and benefits are within wage escalation with an increase of $4,570,560. There are several temporary staff that are included in the wages and benefits that are offset by various funding sources, such as housing accelerator funding, housing for, growth reserves and capital funding. Other notable increases include.  Housing for All Program - $2.1M  Housing Accelerator Program - $515K  Police Commission - $1.25M  Fire Services - $400K  Parks and Recreation - $1.2M  Bylaw, Inspections, Min Standards - $1.4M Principle and interest payment have decreased by $1.2M, which represents a decrease of $2.5M over the last two budgets. The City has also continued to budget $3M for the future recreation facility. Council Priorities/Strategic Plan/Service Delivery The 2026 operating budget along with the capital budget addresses multiple elements of the 10-year strategic plan, Council Priorities, and addresses service delivery. The following list are highlights from the various service areas which have one time funding and recurring expenditure. 1. 1.5 Cent Tax Rate Reduction a) Proposed Tax Rate Reduction of 1.5 cents a) $1.55 to $1.535 per $100 of assessed value b) Reduction of 25.00 cents in five years – 14% reduction 2. Debt Service Ratio a) Principal & Interest on debt only 6.3% of the General Operating Budget. Property Tax 852,800.00$ Fiscal Capacity Funding 4,384,432.00$ Housing For All 2,090,127.00$ Housing Accelerator 515,669.00$ Reserves 722,000.00$ Funding from Capital 525,343.47$ Interest Income 425,000.00$ Saint John Energy 200,000.00$ 911 Centre 280,000.00$ Bulding Permit 100,000.00$ Other increases 588,105.00$ 10,683,476.47$ 6 - 4 - b) Fiscal Charge reduction of $1.3M from 2025 to 2026 ($14.2m to $12.9m). 3. Parks & Recreation a) $3 Million for Catalytic Multiplex Project (Reserve Fund up to $12 Million) b) Funding Conceptual Design and Plan for St. Peters ballfield c) Ellerdale Street Playground Renewal d) Design & Capital Funding for M. Gerald Teed e) Memorial Field Improvement Plan Funding & Backstop fencing f) Funding for Design & Master Plan at Seaside Park g) Skateboard Park Refurbishment h) New $100K Recreation Fund ($25K per Ward – Policy to be Established) i) Shamrock Park Tennis Court Investigation & Design work j) Tot lot (trees, benches and possibly tot lot at Intersection of Grant Cresent and Daniel Avenue). k) Upgrades to Rainbow Park Playground & surrounding area l) Additional funding for the Cove (Harbour Passage Extention) m) Additional funding for a new Cricket Field n) Contribution (grant) to YMCA Glen Carpenter Center 4. Saint John Energy Benefit a) City Burchill Wind Farm Benefit budgeted at $1.2 million 5. Housing a) Housing Accelerator Fund Investment in 2026 - $3.2 million. b) Housing for All Strategy Investment in 2026 - $2.1 million. 6. Community Improvement a) New position – Community Standards Coordinator – that will increase service levels associated with unsightly premises, zoning, compliance, unsightly buildings and properties. b) New position – Assistant Building Inspector – that will be assigned to substandard units and substandard buildings as well as vacant building files. c) New position – East Side Recreation Coordinator. d) By-law enforcement/Community Enhancement Project extension (3 FTE) for another 2 years. e) New Funding for Community Support – $1 million. f) 4 new sidewalk plows and winter management internal audit will frame resourcing requirements. g) Round about strategy - City Funding for a new roundabout for Loch Lomond Road conditional upon provincial contribution. Sandy Point Road near completion. Ashburn Road/Rothesay Road PMHP funding for design. h) Replacement of two Saint John Transit Buses i) Operating funding for Police Governance Review j) $100K allocated to Communication for Website upgrades k) City Market redesign l) New Funding Officer position added with responsibility to seek additional capital funding opportunities and enhance capital budget reporting for Council. m) New funding added for Medical School Scholarship grant 7 - 5 - The investments being made maintain existing service levels but also support the priorities of council, follow various plans, and address social issues and meeting the targets and principles of the long-term financial plan. Aligning with Long Term Financial Plan The budget follows 4 key financial values set out in the long-term financial plan: Don’t spend more money than you make – 2026 budget is a structurally balanced budget Borrow Wisely – the budget includes principal and interest charges of $12.96M which is a reduction of $1.23M over 2025. Save your money for a rainy day – The budget includes $3.0M in capital reserves to address several Council priorities, avoiding new debt and continuing a culture of “save first” versus “spend first”. Take control of your expenses before they take control of you – the 2026 operating budget follows the City’s wage escalation policy. CONCLUSION In conclusion, the proposed 2026 General Fund Operating Budget continues to advance and surpass the City’s long term strategic financial objectives. This budget advances the City’s strategic financial objectives to increase flexibility, reduce vulnerability, and is sustainable. The budget also balances the financial objectives of the long-term plan while balancing the priorities of Council along with the 10-year strategic plan. SERVICE AND FINANCIAL OUTCOMES See Enclosed 2026 General Fund Operating Budget INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS Name of Service Area/Stakeholder Name of Staff Person Finance Committee, Common Council All Service Areas Senior Leadership Team ATTACHMENTS 1. Appendix A – 2026 General Fund Operating Budget 2. Appendix B – 2026 General Fund Operating Budget Presentation 8 The City of Saint John 2026 General Fund Operating Budget 2026 2025 Budget Approved Budget $$ Revenues Property Taxes 157,817,119                156,964,319             PILT Adjustment ‐                                 23,453                        Fiscal Capacity Funding 17,188,123                   12,803,691                Regional Services Grant 1,223,082                     1,006,997                  Surplus 2nd Year Previous Year 39,097                          272,858                     Transfer from Operating Reserves 1,398,000                     676,000                     Growth & Community Services 9,957,165                     7,216,811                  Public Works & Transportation Services 7,007,828                     6,726,934                  Public Safety Services 2,516,407                     2,208,313                  Utilities & Infrastructure Services 275,000                        340,635                     Strategic Services 6,456,218                     5,154,554                  Saint John Energy Benefits 1,200,000                     1,000,000                  Total Revenues 205,078,040                194,394,563             Expenditures Growth & Community Services 27,402,522                   22,628,358                Public Works & Transportation Services 52,139,033                   49,476,188                Public Safety Services ‐ Fire, EMO and PSCC 34,287,394                   33,675,248                Public Safety Services ‐ Police Commission 31,999,266                   30,751,388                Utilities & Infrastructure Services 5,999,874                     5,453,727                  Strategic Services 10,217,339                   9,072,153                  Corporate Services 9,314,019                     8,424,251                  Other Charges 33,718,593                   34,913,250                Total Expenditures 205,078,040               194,394,563             Surplus (Deficit)‐                                 ‐                              9 City of Saint John by Service 2026 General Fund Operating Budget 2026 2025 Budget Approved Budget $$ Growth & Community Services Salaries 7,712,666                     7,138,317                  Goods & Services 19,689,855                   15,490,041                TOTAL 27,402,522                   22,628,358               Public Works & Transportation Services Salaries 19,773,849                   18,456,763                Goods & Services 32,365,184                   31,019,425                TOTAL 52,139,033                   49,476,188               Public Safety Services ‐ Fire, EMO and PSCC Salaries 27,030,913                   26,733,140                Goods & Services 7,256,481                     6,942,108                  TOTAL 34,287,394                   33,675,248               Public Safety Services ‐ Police Commission Grant 31,999,266                   30,751,388                TOTAL 31,999,266                   30,751,388               Utilities & Infrastructure Services Salaries 3,592,486                     3,253,673                  Goods & Services 2,407,389                     2,200,054                  TOTAL 5,999,874                     5,453,727                 Strategic Services Salaries 5,479,574                     4,704,798                  Goods & Services 4,737,765                     4,367,355                  TOTAL 10,217,339                   9,072,153                 Corporate Services Salaries 6,546,719                     6,059,634                  Goods & Services 2,767,300                     2,364,617                  TOTAL 9,314,019                     8,424,251                 Other Charges Goods & Services 33,718,593                   34,913,250                33,718,593                   34,913,250               TOTAL EXPENDITURES 205,078,040                194,394,563             10 The City of Saint John 2026 General Fund Operating Budget 2026 2025 Budget Approved Budget $$ Revenues Property Taxes 157,817,119                156,964,319             PILT Adjustment ‐                                 23,453                        Fiscal Capacity Funding 17,188,123                   12,803,691                Regional Services Grant 1,223,082                     1,006,997                  Surplus 2nd Year Previous Year 39,097                          272,858                     Transfer from Operating Reserves 1,398,000                     676,000                     Growth & Community Services 9,957,165                     7,216,811                  Public Works & Transportation Services 7,007,828                     6,726,934                  Public Safety Services 2,516,407                     2,208,313                  Utilities & Infrastructure Services 275,000                        340,635                     Strategic Services 6,456,218                     5,154,554                  Saint John Energy Benefits 1,200,000                     1,000,000                  Total Revenues 205,078,040               194,394,563             Expenditures Growth & Community Services Growth & Community Planning Services 1,668,320                     1,680,262                  Development Engineering 397,629                        391,301                     Community Development 525,810                        528,505                     Animal Control 126,903                        120,000                     Dangerous and Vacant Building Program 286,436                        278,451                     Minimum Property Standards 606,319                        506,125                     Heritage Conservation Service 215,097                        207,018                     Other By‐Laws 1,391,435                     297,552                     Permitting & Inspection Services 1,611,441                     1,459,850                  Regional  Economic Development Agency 3,087,500                     3,087,500                  Market Square 2,500,000                     2,500,000                  Saint John Trade & Convention Centre 159,540                        156,543                     Imperial Theatre 346,889                        322,021                     Saint John Aquatic Centre 453,630                        423,225                     Saint John Arts Centre 133,943                        128,549                     TD Station 500,851                        502,796                     Library 594,457                        544,839                     City Market 1,449,361                     1,316,629                  11 The City of Saint John 2026 General Fund Operating Budget 2026 2025 Budget Approved Budget $$ Growth & Community Services (Continued) Arts & Culture Board 70,000                          70,000                        PRO Kids 257,324                        243,677                     Local Immigration Partnership ‐                                 62,831                        Carleton Community Center 195,979                        193,167                     Loch Lomond Community Center ‐                                 45,000                        North End Community Center 195,979                        193,167                     Recreation Programming 1,261,535                     1,222,380                  Neighbourhood Development 261,000                        172,000                     YMCA ‐ Contracted Services 157,898                        155,564                     Boys and Girls Club ‐ Contracted Services 146,344                        144,181                     Unspecified Grants 300,400                        289,000                     Affordable Housing Strategy 205,972                        197,583                     Lifeguards 207,466                        203,400                     Play SJ ‐                                 45,000                        Lord Beaverbrook Rink 185,907                        182,000                     Building Incentive Reserve 350,000                        350,000                     Regional Services Commission 663,670                        396,772                     Housing Accelerator Program 3,291,241                     2,775,572                  Housing For All 2,090,127                      Growth Department 827,120                        720,897                     Saint John Industrial Parks 679,000                        515,000                     Total Growth & Community Development Services 27,402,522                   22,628,358               Public Safety Services ‐ Fire, EMO and PSCC Fire Rescue and Suppression Service 25,563,543                   25,278,938                Fire Training 4,500                             3,000                          Technical Rescue Response 100,410                        47,489                        Hazardous Materials 82,939                          61,417                        Fire Prevention 991,086                        970,571                     Fire Investigation 70,698                          67,743                        Emergency Management Services 260,392                        330,971                     Water Supply and Hydrants 2,600,000                     2,500,000                  Public Safety Communications Centre 3,301,226                     3,205,118                  Street Lighting 1,282,600                     1,210,000                  Total Public Safety Services ‐ Fire, EMO and PSCC 34,287,394                   33,675,248               Public Safety Services ‐ Police Commission Saint John Police Commission Grant 31,999,266                   30,751,388                Total Public Safety Services ‐ Police Commission 31,999,266                   30,751,388               12 The City of Saint John 2026 General Fund Operating Budget 2026 2025 Budget Approved Budget $$ Public Works & Transportation Services Snow Control Streets 6,182,269                     5,509,023                  Street Cleaning 1,783,385                     1,741,677                  Utility Cuts 1,291,767                     1,222,668                  Street Services ‐ Surface Maintenance 8,851,449                     8,608,264                  Snow Control Sidewalk 1,225,913                     1,197,741                  Sidewalk Maintenance 1,109,404                     941,591                     Pedestrian & Traffic Management Service 2,552,334                     2,607,775                  Solid Waste Management 4,008,470                     4,145,894                  Landscape ‐ Parks & Open Spaces 3,723,462                     3,094,030                  Rockwood Park 632,279                        588,050                     Urban Forestry 463,041                        413,439                     Saint John Horticultural Association 80,000                          70,000                        Arena Operation & Maintenance 1,447,058                     1,518,945                  Sportsfield Operation & Maintenance 1,780,793                     1,428,466                  Other Facilities Operation & Maintenance 777,116                        539,239                     Transit Debt 1,373,000                     1,411,000                  Transit Subsidy 7,611,353                     7,405,172                  Fleet Stockroom 371,833                        340,939                     Stormwater 4,236,465                     4,213,369                  Parking Administration 1,010,882                     971,024                     Peel Plaza Parking Garage 246,334                        332,673                     Market Square Parking Garage 299,906                        169,538                     Off Street Parking 1,080,519                     1,005,670                  Total Public Works & Transportation Services 52,139,033                   49,476,188               13 The City of Saint John 2026 General Fund Operating Budget 2026 2025 Budget Approved Budget $$ Utilities & Infrastructure Services Engineering 1,655,775                     1,457,300                  Carpenter Shop 431,012                        404,336                     Facilities Management 2,029,722                     1,763,070                  City Hall Building 1,174,123                     1,089,123                  GIS 470,828                        517,550                     Stockroom 238,413                        222,347                     Total Utilities & Infrastructure Services 5,999,874                     5,453,727                 Strategic Services Finance 1,659,945                     1,402,393                  Assessment 1,909,173                     1,879,282                  Supply Chain Management 468,030                        449,811                     Information Technology 4,524,991                     4,129,729                  Corporate Planning 928,195                        487,609                     Insurance 157,006                        153,328                     Liability Insurance 570,000                        570,000                     Total Strategic Services 10,217,339                   9,072,153                 Corporate Services Chief Administrators Office 713,693                        808,249                     Mayor's Office 186,314                        199,201                     Common Council 648,869                        583,959                     Common Clerk 805,318                        737,800                     Human Resources 3,239,721                     2,801,678                  Legal Department 1,442,787                     1,302,142                  Real Estate 376,638                        325,144                     Customer Service 926,251                        956,699                     Corporate Communications 974,427                        709,379                     Total Corporate Services 9,314,019                     8,424,251                 Other Charges Fiscal Charges 12,956,400                   14,191,000                Landfill Closure 300,000                        300,000                     Special Pension Contributions 10,400,077                   10,222,250                PILT Adjustment 9,388                              ‐                              Transfer to Capital Reserves 3,000,000                     3,000,000                  Other Charges 952,728                        400,000                     Capital from Operating 6,100,000                     6,800,000                  Total Other Charges 33,718,593                   34,913,250               Total Expenditures 205,078,040               194,394,563             Surplus (Deficit)‐                                 ‐                              14 2026 General Fund Operating Budget November 12th, 2025 15 June-July Shape Your Budget September Council Feedback October 29 Finance Committee Receive and File November 12 Finance Committee Recommendation November 17 Council Receive and File December 1 Recommendation to Common Council 2026 Budget Timeline 16 Federal Government •Senior Programs •Poverty Reduction •Employment Programs •Funding Health Care •Foreign Affairs •Family Benefits •Monetary Policy •National Defense •Postal Services 17 Provincial Government •Education •Healthcare •Highways •Income Assistance •Subsidized Housing •Nursing Homes •Social Services •Justice 18 Municipal Government •City Roads •Police and Fire Services •Utilities •Public Transit •Zoning (land use) •Parks & Recreation •Solid Waste 19 20 AGENDA •Section 1 –2026 Shape your Budget Feedback & Council Roundtable Feedback •Section 2 –2026 Operating & Capital Budget Highlights that address feedback •Section 3 –2026 Draft Operating Budget Recommendations 21 Section 1: Summary of Public Engagement and Council Feedback 22 2026 Operating Budget –Public Engagement 23 2026 General Fund Budget Main Themes Common Council Feedback Comms/Website Communications Roads/Sidewalks Housing for All support Tax Rate Reduction By-law Enforcement Cleaner City Parks & Recreation Traffic Calming 24 Section 2: General Fund Capital & Operating Highlights that address feedback 25 2026 Operating & Capital Budget Highlights that address Council Feedback1.1.5 Cent Tax Rate Reduction a)Proposed –$1.55 to $1.535 per $100 b)Reduction of 25.00 cents in five years –14% reduction 2.Debt Service Ratio -6.3%. Debt Management Plan success reducing Fiscal Charges by $1.3M from 2025 to 2026. 3.Saint John Energy Benefit –success of Birch hill windmill project sharing benefits of $1.2M. 4.Recreation Investments a)Ellerdale Street Playground Renewal b)Rainbow Park Playground & surrounding area upgrades c)Shamrock Park Tennis Court Rehabilitation d)Design & Master Plan for Seaside Park e)Design & Capital Funding for M. Gerald Teed f)Memorial Park Improvement Plan Funding & Backstop fencing g)Skateboard Park Repair h)Creation of new $100K Recreation Fund ($25K per Ward –Policy to be Established) i)$3 Million for Catalytic Multiplex Project (Brings total Reserve Fund up to $12 Million) j)Tot lot (trees, benches and possibly tot lot at Intersection of Grant Cresent and Daniel Avenue). k)Contribution (grant) to YMCA Glen Carpentar Center l)Design and Plan for St. Peters ballfield 26 2026 Operating & Capital Budget Highlights that address Council Feedback Continued5.Housing for All Support a)New Funding for Community Support –details to following in future Council meeting). b)Housing Accelerator Fund Investment in 2026 -$3.2 million. c)Housing for All Strategy Investment in 2026 -$2.1 million 6.Traffic Calming a)City Funding for a new roundabout for Loch Lomond Road construction pending provincial contribution. Sandy Point Road near completion. Ashburn Road/Rothesay Road PMHP funding for design. 7.Community Improvement a)New position –Community Standards Coordinator –that will increase service levels associated with unsightly premises, zoning, compliance, unsightly buildings and properties. b)New position –Assistant Building Inspector –that will be assigned to substandard units and substandard buildings as well as vacant building files. c)New position –East Side Recreation Coordinator. d)By-law enforcement/Community Enhancement Project extension (3 FTE) for another 2 years. e)4 new sidewalk plows ordered. f)Internal Audit for Winter management will provide recommendation for future service level investment. g)Replacement of two Saint John Transit Buses h)$100K allocated to Communication for Website upgrades i)Medical School Donation j)Funding Officer added with responsibility to seek additional capital funding opportunities and enhance capital budget reporting for Council. 27 Section 3 Draft 2026 Operating Budget Recommendations 28 2026 Tax Base 2026 2025 Change % Residential 6,539,988,900$ 6,389,210,200$ 150,778,700$ 2.36% Non Residential 1,647,639,200$ 1,661,584,900$ 13,945,700-$ -0.84% Heavy Industrial 553,100,000$ 536,946,300$ 16,153,700$ 3.01% Total 8,740,728,100$ 8,587,741,400$ 152,986,700$ 1.78% 2026 2025 Change % Residential 6,539,988,900$ 6,389,210,200$ 150,778,700$ 2.36% Non Residential 2,800,986,640$ 2,824,694,330$ 23,707,690-$ -0.84% Heavy Industrial 940,270,000$ 912,808,710$ 27,461,290$ 3.01% Total 10,281,245,540$ 10,126,713,240$ 154,532,300$ 1.53% Property Tax Rate 1.55 Property Tax Revenue 159,359,306$ 156,964,055$ 2,395,251$ 1.53% Saint John Assessment Base Saint John Tax Base 29 2026 Assessment Base Growth Benchmarks 2.69% 1.78% 3.58% 2.42% 2.99% 2.36% 4.29% 2.88% 0.88% -0.84% 0.99% 0.19% 0.99% 3.01% 0.00%0.00% -2.00% -1.00% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% Provincial Saint John Moncton Fredericton Benchmark Performance Total Residential Non Residential Heavy Industrial 30 2026 Fiscal Capacity Grant $17,188,123 $12,803,691 $13,773,579 $15,321,432 $16,647,118 $17,335,948 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 $20,000,000 Saint John Saint John 2026 2025 2024 2022 2021 2020 31 Proposed 2026 General Operating Budget •2026 General Operating Budget $205,078,040 •Year Over Year budget increase of approx. $10.68M or 5.5% •Year Over Year Property Tax Revenue Increase of $853K or 0.54% (tax burden) •Property Tax Rate of $1.535 per $100 of assessed value •Proposed 1.5 cent reduction in tax rate – $1.55 to $1.535 per $100 •Reduction of 25.00 cents in five years – 14% reduction •Property Tax Multiplier •No change in the 1.7 multiplier for Commercial and Heavy Industrial Classes •Need for more Flexibility in the multiplier •Core Funding & Equalization Grant •Equalization Grant Increased by $4,384,432 from previous year (34.24% increase over prior year) 32 2026 Draft General Fund Operati ng Budget 19 The City of Saint John 2026 General Fund Operating Budget 2026 2025 Budget Approved Budget $$ Revenues Property Taxes 157,817,119 156,964,319 PILT Adjustment - 23,453 Fiscal Capacity Funding 17,188,123 12,803,691 Regional Services Grant 1,223,082 1,006,997 Surplus 2nd Year Previous Year 39,097 272,858 Transfer from Operating Reserves 1,398,000 676,000 Growth & Community Services 9,957,165 7,216,811 Public Works & Transportation Services 7,007,828 6,726,934 Public Safety Services 2,516,407 2,208,313 Utilities & Infrastructure Services 275,000 340,635 Strategic Services 6,456,218 5,154,554 Saint John Energy Benefits 1,200,000 1,000,000 Total Revenues 205,078,040 194,394,563 Expenditures Growth & Community Services 27,402,522 22,628,358 Public Works & Transportation Services 52,139,033 49,476,188 Public Safety Services - Fire, EMO and PSCC 34,287,394 33,675,248 Public Safety Services - Police Commission 31,999,266 30,751,388 Utilities & Infrastructure Services 5,999,874 5,453,727 Strategic Services 10,217,339 9,072,153 Corporate Services 9,314,019 8,424,251 Other Charges 33,718,593 34,913,250 Total Expenditures 205,078,040 194,394,563 Surplus (Deficit)- - 33 $100,388,8 30 64% $42,995,145 27% $14,433,145 9% Residential Class Non Residential Heavy Industrial 2026Property Tax Revenue by Class 34 General Fund Operating Budgets 2016- 2026 General Fund Operating Budget Overview $151.5 $154.0 $156.1 $160.3 $166.7 $157.3 $164.7 $177.3 $187.8 $194.4 $205.1 $130 $140 $150 $160 $170 $180 $190 $200 $210 2016 Budget 2017 Budget 2018 Budget 2019 Budget 2020 Budget 2021 Budget 2022 Budget 2023 Budget 2024 Budget 2025 Budget 2026 Budget $ in Millions Short Term Provincial Assistance Restructu re $47.8M Increas e over 5 years 35 1.785 1.71 1.62 1.58 1.55 1.535 $1.40 $1.45 $1.50 $1.55 $1.60 $1.65 $1.70 $1.75 $1.80 $1.85 2021 2022 2023 2024 2025 2026 Tax Rate Tax Rate Saint John Property Tax Rate 36 $16,650,273 $15,941,014 $15,741,124 $15,685,605 $15,420,430 $14,191,000 $12,956,400 $18,000,000.00 $16,000,000.00 $14,000,000.00 $12,000,000.00 $10,000,000.00 $8,000,000.00 $6,000,000.00 $4,000,000.00 $2,000,000.00 $0.00 2026202020212022202320242025 2020 2021 2022 2023 2024 2025 2026 Fiscal Charges (Principal &Interest) Approximately $10M savings since 2020 37 2026 General Operating Other Revenues 2025 2026 Approved Budget Budget $$ Revenues Growth & Community Services 7,216,811 9,957,165 Public Works & Transportation Services 6,726,934 7,007,828 Public Safety Services 2,208,313 2,516,407 Utilities & Infrastructure Services 340,635 275,000 Strategic Services 5,154,554 6,456,218 Saint John Energy Benefits 1,000,000 1,200,000 Total Revenues 22,647,246 27,412,618 38 2026 General Fund Budget –Other Revenues (significant changes) •Growth & Community Services: •Housing for All Funding $2.09M •Housing Accelerator Funding $432K •Strategic Services: •ERP Recovery from Capital Budget -$600K 39 2026 General Fund Operating Expenses •Expenditures up approximately $10.7M •Wage & Benefits Increase $4.6M •Housing Accelerator Program - $515K •Housing for All Program -$2.1M •Police Commission -$1.25M •Fire Services -$400K •Parks and Recreation -$1.2M •Bylaw, Inspections, Min Standards - $1.4M •Debt Repayment –Reduction of $1.2M40 2026 General Fund Operating Budget Service Area Growth and Community Services $4.8M (21.1%) increase Bylaw, Min Standards, Inspections-$1.36M Housing Accelerator Program - $500K Housing for All Program -$2.09M Public Works and Transportation Services -$2.6M (5.38%) increase Sportsfields/Other facilities - $590K Landscape –Parks & Open Spaces - $629K Transit Operating Subsidy -$200K Snow Control Streets/Sidewalks - $916K Public Safety (Fire, PSCC, EMO) $612K (1.8%) increase Increases due to inflation Public Safety (Police Commission) $1.25M (4.06%) increase 4 New officers and Inflation 41 2026 General Fund Operating Budget Variance Service Area Utilities and Infrastructure -$546K (10.0%) increase General Inflation Additional security cost for City Hall Strategic Services -$1.1M (12.62%) increase Information Technology – Inflation for various software Corporate Planning –ERP Support Finance –Capital Budget Staff Position Corporate Services -$890K (10.56%) increase Inflationary increases Human Resources –Implementing HR Strategy, Safety and increased legal cost Communications –Website Redesign Other Charges -$1.2M (3.42%) reduction Fiscal Charges -$1.23M reduction Pay as you go -$700K pay as you go decrease Other Charges –$550K over prior year 42 Wage Escalation Policy •The CAO shall recommend the wage and benefit budget increase in accordance with the Wage Escalation Policy •The Wage Escalation Policy provides that the wage and benefit budget shall not exceed the lessor of: •The Three-Year Rolling Tax Base Growth Average (5.48%) •(8.65%, 6.26%, 1.53%) •Consumer Price Index + 1% (2.81%) Note: CPI was adjusted upward –April –Sept by .70 to reflect removal Carbon Tax 43 2026 Proposed General Operating Budget Recommendation It is recommended that Finance Committee endorse the proposed 2026 General Operating Budget and direct staff to bring forward the budget to Common Council for Receive and File. 44 FINANCE COMMITTEE REPORT Report Date November 03, 2025 Meeting Date November 12, 2025 Service Area Strategic Services Chairman Sullivan and Members of Finance Committee SUBJECT: 2026 Utility Fund Operating Budget OPEN OR CLOSED SESSION This matter is to be discussed in Finance Committee Open Session. AUTHORIZATION Primary Author Commissioner/Dept. Head Chief Administrative Officer Craig Lavigne/Jodie Forgie Ian Fogan J. Brent McGovern RECOMMENDATION It is recommended that Finance Committee endorse the proposed 2026 Utility Fund Operating Budget and forward the budget to Common Council for receive and file. EXECUTIVE SUMMARY The 2026 Utility Fund Operating Budget will represent the first increase for ratepayers in eight years. The proposed increase of 1.26% results in an increase of $1.50 per month or $18.00 per year for flat-rate customers, bringing the annual flat rate to $1,446. Meter rates will also see the same rate increase of 1.26%. The rate increase remains well below the CPI and does not keep pace with the significant cost increases the Utility has seen over the past several years for supplies, mechanical parts, chemicals and wages and benefits. The Utility’s long term financial plan approved early in 2025 plans for small annual increases over the next 10 years. PREVIOUS RESOLUTION Finance Committee – October 29th, 2025 – “Its recommended Finance Committee receive and file the draft 2026 Utility Fund Operating Budget and direct any questions to staff” 45 - 2 - STRATEGIC ALIGNMENT The proposed 2026 Utility Fund Operating Budget is aligned with Council’s priorities demonstrated through the commitment to address infrastructure risk associated with climate change, focusing on its leak detection program that helps eliminate water waste. REPORT The 2026 Utility Fund Operating Budget will represent the first increase for ratepayers in eight years. The proposed increase of 1.26% results in an increase of $1.50 per month or $18.00 per year for flat-rate customers, bringing the annual flat rate to $1,446. Meter rates will also see the same rate increase of 1.26%. Potable Revenue Overall potable revenue for 2026 is budgeted at $41,491,500 (2025- $41,273,000). Despite the rate increase of 1.26%, overall revenue is projected to remain flat due to less meter consumption than anticipated in 2025. Meter rate revenue from metered customers is largely commercial, manufacturing, malls, schools, restaurants, hotels, and apartment buildings and revenue is anticipated to remain flat due to less consumption that is occurring in 2025. The balance of revenues includes the fire protection levy, storm sewer levy, interest revenue, and prior year surplus which overall remains flat year over year. Potable Expenditures The Utility operating expenditure increased by $41,508 over 2025. To balance the increase in the operational expenses, capital from operating was decreased by $940,583 over prior year to balance the budget. 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 funded to provide services. These costs along with several other costs are subject to the inflation pressures being felt due to the economic environment. There are several initiatives that will be undertaken in the 2026 budget. There will be continued leak detection and installation of other leak detection technology in the water distribution system which may identify leaks to be repaired to improve water efficiency and maintain a highly reliable water system. There is a plan to start the plan or road map for the implementation of universal metering. 46 - 3 - The budget also includes the rehabilitation of the Rockwood Park water reservoir (tanks) and access road, performance management of five lift stations, and increased focus on improving safety standards. The budget includes $7,186,418 million in pay as you go (capital from operating). This will allow the Utility to complete its 2026 capital program without any borrowing. There has been continued success in obtaining funding for Capital projects as can be seen in the proposed 2026 Capital Utility Budget. The funding will allow the Utility to focus on climate change initiatives, sewer separation, and the renewal of underground infrastructure in coordination with the General Fund. 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 delivering the 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, recovering past debt associated with each system and including 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 see various degrees of change. Some of the increases or decreases are a result of lower or higher consumption estimates, prior year surplus of deficit or higher cost of service. Overall, the consumption rates for each customer are noted below. Customer 2026 Rate 2025 Rate East Industrial Irving Oil 0.2638 0.2530 Irving Paper 0.1064 0.1074 West Industrial Irving Pulp & Paper 0.0933 0.0904 NB Power Coleson Cove 0.3193 0.5143 47 - 4 - CONCLUSION The 2026 Budget represents the first time in eight years ratepayers will see an increase in rates. The Utility has managed to hold the rates for seven years in a row, however that has largely come at the expense of capital reinvestment. The infrastructure deficit in 2024 was well over $360M and requires an annual reinvestment of $40.8M annually to maintain the system. The long-term financial plan sets out a plan for rates, anticipated expense increases and the capital funds available for reinvestment. It will be critical to continue to follow and update the plan as needed to ensure a reliable, affordable and resilient water and wastewater system. SERVICE AND FINANCIAL OUTCOMES See Enclosed 2026 Utility Fund Operating Budget INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS Name of Service Area/Stakeholder Name of Staff Person Finance Committee, Common Council All Service Areas Senior Leadership Team ATTACHMENTS 1. Appendix A – 2026 Utility Fund Operating Budget 2. Appendix B – 2026 Utility Fund Operating Budget Presentation 48 2026 Utility Fund Operating Budget Finance Committee –October 29th, 2025 Small City, Big Heart. 49 Saint John Water 2026 Draft Operating Budget The City of Saint John 2026 Utility Fund Operating Budget 2025 2026 Budget Budget $$ Revenues Flat Rate Accounts 21,883,500 22,102,000 Meter Rate Accounts 19,389,500 19,389,500 Fire Protection Levy 2,500,000 2,600,000 Storm Sewer Levy 1,000,000 1,000,000 Industrial Raw Water Accounts 7,438,122 7,697,445 Other Revenues 1,667,360 1,750,000 Transfer from Reserves 750,000 - Previous Year's Surplus 764,858 1,170,837 Total Revenues 55,393,340 55,709,782 Expenditures Drinking Water Service 25,974,629 25,818,825 Wastewater Service 20,538,918 20,573,229 Industrial Raw Water Service 8,018,383 8,293,316 Infrastructure Management 861,410 1,024,412 Total Expenditures 55,393,340 55,709,782 50 Saint John Water 2026 Draft Operating Budget Revenue 2025 2026 Budget Budget $$ Revenues Flat Rate Accounts 21,883,500 22,102,000 Meter Rate Accounts 19,389,500 19,389,500 Fire Protection Levy 2,500,000 2,600,000 Storm Sewer Levy 1,000,000 1,000,000 Industrial Raw Water Accounts 7,438,122 7,697,445 Other Revenues 1,667,360 1,750,000 Transfer from Reserves 750,000 - Previous Year's Surplus 764,858 1,170,837 Total Revenues 55,393,340 55,709,782 51 Saint John Water 2026 Draft Operating Budget -Revenue •Rate Increase of 1.26% for Residential Customers –First rate increase in 8 years despite inflationary pressures. •Annual Flat rate $1,446, an increase or $1.50 per month or $18 per year. •Same increase of 1.26% for Commercial Potable Customers •Meter Revenue –despite increase in rate, projecting less consumption based on 2025 •Other Revenue –combination of interest, leachate, miscellaneous and recovery from general fund. 52 Saint John Water 2026 Draft Operating Budget Priorities/Key Highlights/Variances •No new debt being proposed for 2026 •Pay as you go is $7,186,418 for 2026 •Significant increase in wastewater operations over prior year due to ongoing maintenance The City of Saint John 2026 Utility Fund Operating Budget 2025 2026 Budget Budget $$ Expenditures Drinking Water Service 25,974,629 25,828,825 Wastewater Service 20,538,919 20,573,229 Infrastructure Management 861,410 1,024,412 Total Expenditures 47,374,958 47,426,466 53 Saint John Water 2026 Draft Operating Budget Priorities/Key Highlights •Water System Master Plan –Investigation and concept design to complete long term water strategy to address residential, commercial and industrial growth throughout the City. •Universal Metering –Complete a detailed plan (i.e. Road map) to execute the installation of metering throughout the City in a phased approach. •Leak detection of East water distribution system, repair identified leaks to minimize water loss and improve water system efficiency and reliability •Unidirectional flushing (UDF) of the West water distribution and parts of the east system not completed in 2025 due to water conservation efforts. UDF is completed to ensure high quality drinking water. •Installation of two additional iHydrants (Clow) in strategic areas to provide early leak detection of critical watermains by analyzing pressure changes. 54 Saint John Water 2026 Draft Operating Budget Priorities/Key Highlights/Variances (continued) •Fire Hydrant Inspection & Painting Program (repaint approx. 25% and inspect approx. 33% of the 2,100 in inventory) •Water reservoir (tanks) Rehabilitation of the Rockwood Park water reservoir and the associated access road. •Wastewater Collection –utilization of trenchless technology programs to complete more sanitary pipe repairs though pipe patching. Reduces the need to excavate pipes, repair and reinstate asphalt. •Environmental Protection staff to complete the “14 Point Verification Procedure” provided by the pump manufacturer for five lift stations. This procedure will identify the current performance of the lift station and identify any necessary repair works. •Safety –Increased efforts to improve standard operating procedures focused on safety with the assistance of the Field Safety Officer and Consultants. 55 2026 Industrial Raw Water Rates Background •Full separation of the potable and industrial water supply was achieved with the completion of the Safe, Clean Drinking Water Project. In 2019 Hemson Consulting Ltd. completed a raw water rate analysis and assist is developing separate raw rates for each customer that are set by Common Council via by-law annually for; •Irving Oil Ltd. & Irving Paper on the East Saint John Industrial Water System •Irving Pulp & Paper and the NB Power Generating Station (Coleson Cove) on the West Saint John Industrial Water System 56 2026 Industrial Raw Water Rates (Background Continued) Since 2020 all industrial raw water customers have been billed the full cost of delivering raw water via by-law rates set by Common Council. •By-law rates are updated annually through Common Council. •Industrial Raw Water By-law rates include the following: •Operational Cost to provide the service, •Contributions to asset replacement/asset management, •Rate stabilization reserves, •New debt associated with the industrial system delivering •the service, and •Previous debt associated with being a member of the water distribution system. 57 2026 Industrial Raw Water Rates -East Industrial System Current 2025 raw water by-law rate $0.2530/m3 Calculated 2026 raw water by-law rate $0.2638/m3 Irving Paper (Flume) Current 2025 raw water by-law rate $0.1074/m3 Calculate 2026 raw water by-law rate $0.1064/m3 58 2026 Industrial Raw Water Rates -West Industrial System Current 2025 raw water by-law rate $0.0904/m3 Calculated 2026 raw water by-law rate $0.0933/m3 NB Power (Coleson Cove Current 2025 raw water by-law rate $0.5143/m3 Calculate 2026 raw water by-law rate $0.3193/m3 59 Saint John Water 2026 Draft Operating Budget Conclusion •The Utility is balancing the need to replace aging infrastructure to support growth with need to replace infrastructure to ensure service levels can be met. •Examining opportunities for revenue increases within existing service areas •Increased rates are not covering the increase costs the Utility has seen over the last 8 years and impacts is felt in Capital investment to offset the increase in operating expenditures. Recommendation •Finance Committee to Receive and File this presentation and direct any questions to Staff 60 The City of Saint John 2026 Utility Fund Operating Budget 2026 2025 Budget Budget Expenditures Drinking Water Service    Watershed Management 693,521            879,878                Water Treatment 9,453,598         9,577,589             Water Pumping & Storage 1,258,777         1,256,360             Transmission & Distribution 5,080,715         4,623,509             Customer Metering 768,130            707,125                Internal Charges 470,000            470,000                Other Charges 595,272            575,142                Debt Servicing 3,265,121         3,410,695             Transfer to Capital Reserves ‐ 180,673                Capital from Operating 4,233,691         4,293,658          Total Drinking Water Service 25,818,825      25,974,629       Wastewater Service    Wastewater Pumping 3,697,100         3,318,003             Wastewater Collection 3,547,518         3,368,216             Wastewater Treatment 6,622,430         6,046,572             Internal Charges 470,000            470,000                   Other Charges 595,272            575,142                   Debt Servicing 2,688,182         2,746,973             Transfer to Capital Reserves ‐ 180,672                  Capital from Operating 2,952,727         3,833,343          Total Wastewater Service 20,573,229      20,538,918       Industrial Water Service       Watershed Management 942,819            894,359                   Water Pumping and Transmission 3,189,164         3,081,035                Customer Metering 279,711            245,421                   Debt Servicing 1,560,169         1,661,162                Transfer to Operating Reserves 730,182            703,469                   Transfer to Capital Reserves 836,677            836,677                   Capital from Operating 754,594            596,260             Total Industrial Water Service 8,293,316         8,018,383          Infrastructure Management      Engineering Services 1,024,412         861,410             Total Expenditures 55,709,782       55,393,340        1DRAFT61 The City of Saint  John 2026 Utility Fund Operating Budget 2026 2025 Budget Budget Revenues   Flat Rate Accounts 22,102,000       21,883,500          Meter Rate Accounts 19,389,500       19,389,500          Industrial Raw Water Accounts 7,697,445         7,438,122            Fire Protection Levy 2,600,000         2,500,000            Storm Sewer Levy 1,000,000         1,000,000            Other Revenues 1,750,000         1,667,360            Transfer from Reserves ‐                     750,000               Previous Year's Surplus 1,170,837         764,858             Total Revenues 55,709,782       55,393,340        Annual Flat Rate ‐ Water and Sewerage $1,446 $1,428 Meter Rates:/Cu.m. Block 1 ‐ First 100 $2.0195 $1.9944   Block 2 ‐ Excess of 100 $1.2860 $1.2700 Consumption based on Bi‐monthly billings NOTE: Sewer Surcharge 80.35% of Water Charge Industrial Raw Water Rate:/Cu. M 2026 2025 East Industrial Irving Oil $0.2638 $0.2530 Irving Paper $0.1064 $0.1074 West Industrial Irving Pulp and Paper $0.0933 $0.0904 NB Power (Coleson Cove) $0.3193 $0.5143 Industrial Raw Water Rate ‐ Bi‐monthly fixed charge East Industrial Irving Oil $47,061 $42,379 Irving Paper $5,775 $14,821 West Industrial Irving Pulp and Paper $69,642 $70,383 NB Power (Coleson Cove)$1,362 $1,425 2DRAFT62 FINANCE COMMITTEE REPORT Report Date November 05, 2025 Meeting Date November 12, 2025 Service Area Utilities and Infrastructure Services Chairman Sullivan and Members of Finance Committee SUBJECT: Saint John Water Reserve Allocation OPEN OR CLOSED SESSION This matter is to be discussed in Finance Committee Open Session. AUTHORIZATION Primary Author Commissioner/Dept. Head Chief Administrative Officer Kendall Mason Ian Fogan J. Brent McGovern RECOMMENDATION It is recommended that: Finance Committee approve the allocation of reserve funding of up to $4 Million from Utility Fund Reserve to the 2025 Utility Fund Operating Budget for emergency expenditures at the Eastern Wastewater Treatment Facility and for Emergency Pumping at the Loch Lomond Drinking Water Supply to ensure continued service to Water Utility Customers. EXECUTIVE SUMMARY The purpose of this report is to recommend that theFinance Committee approve the allocation of reserve funding of up to $4 Million to the 2025 Utility Fund Operating Budget. During the year, three significant service-related emergencies occurred that were not included in the 2025 operating budget and required additional funding to maintain continuous service delivery. In addition, the unanticipated drought conditions negatively impacted revenue projections, further increasing the variance from the approved budget. In June of 2025, Saint John Water experienced several water transmission failures requiring the engagement of external contractors, consultants and the procurement of equipment, valves and large pipes to complete repairs to ensure continuous supply of potable water to customers. During the months of June and July 2025, Saint John Water requested specialty contractors and consultants to perform condition assessments on equipment at the Eastern Wastewater Treatment Facility. As a result of the condition assessments, Saint John Water 63 - 2 - completed mechanical repairs and emergency operational work under the guidance of safety professionals and wastewater treatment experts to ensure the facility met regulatory approvals as defined in the Approval to Operate. The Maritime Provinces has experienced drought conditions in 2025 impacting Municipal water supplies across the region. Saint John has experienced the driest July, August and September period on record. To ensure the supply of water to raw and potable customers is available, Saint John Water engaged a consultant to advance the design of emergency pumping, obtain regulatory approvals and assist with the engagement of contractors and suppliers to carry out construction work and emergency pumping if required. PREVIOUS RESOLUTION N/A STRATEGIC ALIGNMENT This action aligns with the Council priority of Perform by working to minimize the impact of the unexpected costs to rate payers while providing continuous service delivery. REPORT Operational Efforts Above Planned Budgetary Work During 2025 Saint John Water experienced events that required resources that exceeded the planned budgetary operational efforts to provide service with minimal interruptions for customers. The Utility repaired leaks on the transmission main corridor that supplies potable water to citizens on the west side of Saint John and addressed equipment that had failed or required maintenance by specialty contractors at the Eastern Wastewater Treatment Facility. Eastern Wastewater Treatment Facility Eastern Wastewater Treatment Facility (EWWTF) is a 35,000 m3/d conventional activated sludge plant servicing East Saint John. The Eastern Wastewater Treatment Facility was completed and commissioned in 2011. Since 2011 the effluent results have exceeded regulatory compliance limits. Deterioration of Effluent Results in June 2025 lead to increased monitoring of plant performance and operating conditions. By late June early July 2025, it became apparent that several plant unit processes were not functioning as designed and required significant maintenance and/or repair. Below is an aerial view of the Eastern Wastewater Treatment Facility. 64 - 3 - During the months of June and July 2025, SJ Water requested specialty contractors and consultants to perform condition assessments on specific equipment at the Eastern Wastewater Treatment Facility. A consultant was asked to conduct a high-level condition assessment of the entire Eastern Wastewater Treatment Facility early in July 2025. As a result of these condition assessments completed, Saint John Water proceeded with mechanical repairs and emergency operational work under conditions that required external expert advice in safety and wastewater treatment. As a result of the condition assessments discussed above the following high-level issues were identified throughout the facility as summarized in the diagram below. 65 - 4 - The highest priority items during the initial investigation that required mechanical repairs or emergency operational work included:  Primary Clarifiers  Secondary Clarifiers  UV Disinfection. Solids processing operations to facilitate primary clarifier increased the priority level on ventilation/odour control system repair due to safety concerns related to the creation of gases. Saint John Water utilized the following external resources to help with remedial efforts at the Eastern Wastewater Treatment Facility.  CBCL Limited, Multidiscipline team of resources to support operations, provide technical advice, construction, and commissioning work.  AIWUC: DJ Avery, General Manager – Contract Operator from Nova Scotia to provide site support as required to operate the facility as mechanical repairs were being completed.  C&C Safety: Safety advice for working when exposed to H2S gases, confirmed space environments and challenging operational situations. 66 - 5 - In addition, a multidiscipline team of external resources to support operations and safety systems were utilized:Leaf Electrical, Total Fall Protection, Fero, Maritime Environmental, APS, Carmichael Engineering, QM Construction, Evoqua Water Technologies, Irving Equipment, Eastern Trenchless, Veolia Water Technologies, Chart Industries, Fournier Industries, Source Atlantic, Rogers Electric, Maritime Industrial Machinine, Brewster’s Design, Approval and Construction to enable Emergency Pumping of the Loch Lomond Watershed channel restrictions. The Maritime Provinces experienced drought conditions in 2025, impacting Municipal water supplies across the region. Saint John has experienced the driest July, August and September periods on record. To ensure the supply of water to raw and potable customers, Saint John Water engaged support to advance the design of emergency pumping, obtain regulatory approval and assist with the engagement of contractors and suppliers to carry out construction work. 67 - 6 - Large Transmission Main Failures In June of 2025, Saint John Water experienced several large water transmission failures requiring external contractors, consultants and equipment purchases to ensure supply of potable water to West Saint John Communities was maintained from the East side potable water system. 68 - 7 - SERVICE AND FINANCIAL OUTCOMES Replacing the Rotary Press CVH Channels for the Fournier Press aligns with Council’s priorities for PERFORM as the purchase of these channels will allow the City to continue to meet the conditions in the Approval to Operate issued by the New Brunswick Department of Environment and Local Government and provide sustainable municipal infrastructure. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS Name of Service Area/Stakeholder Name of Staff Person Finance Department Jodie Forgie/Craig Lavigne ATTACHMENTS x 69 September 2025 Year to Date and Year End Financial Projections November 12th, 2025 Finance Committee 70 Estimated 2025 Year End Financial Results The purpose of this presentation is to provide the Finance Committee a high-level overview of the estimated year end results for both the General Fund and Utility Fund The financial package includes September year to date results; however, the focus will be on the estimated financial results for year end 71 General Fund Year End Estimated Financial Results The City of Saint John 2025 General Fund Operating Budget September 2025 2025 YTD YTD 2025 2025 Budget Budget Actual YE Forecast YE Variance $$$$$ Revenues Property Taxes 156,964,319 117,723,240 117,723,240 156,964,319 - PILT Adjustment 23,453 23,450 23,450 23,453 - Equalization & Unconditional Grant 12,803,691 9,602,775 9,602,775 12,803,691 - Regional Services Grant 1,006,997 755,244 755,244 1,006,997 - Surplus 2nd Year Previous Year 272,858 204,642 204,642 272,858 - Transfer from Operating Reserves 676,000 506,997 506,997 2,222,000 1,546,000 Growth & Community Services 7,216,811 5,423,428 6,290,807 13,273,986 6,057,176 Public Works & Transportation Services 6,726,934 5,052,579 5,436,197 7,690,919 963,986 Public Safety Services 2,208,313 1,656,216 1,742,221 2,378,160 169,847 Utilities & Infrastructure Services 340,635 257,634 179,298 274,002 (66,633) Strategic Services 5,154,554 3,865,905 4,363,978 6,166,487 1,011,933 Saint John Energy Benefits 1,000,000 - - 1,000,000 - Total Revenues 194,394,563 145,072,110 146,828,850 204,076,872 9,682,308 Expenditures Growth & Community Services 22,628,358 17,383,960 18,628,632 26,556,994 (3,928,636) Public Works & Transportation Services 49,476,188 35,938,367 38,409,984 54,826,501 (5,350,313) Public Safety Services - Fire, EMO and PSCC 33,675,248 25,284,769 22,971,113 33,711,527 (36,280) Public Safety Services - Police Commission 30,751,388 22,719,655 20,615,219 30,284,787 466,602 Utilities & Infrastructure Services 5,453,727 4,161,325 3,710,434 5,506,364 (52,637) Strategic Services 9,072,153 7,529,541 6,748,375 8,271,986 800,167 Corporate Services 8,424,251 6,374,623 5,912,651 8,124,418 299,833 Other Charges 34,913,250 23,333,133 22,913,254 36,208,706 (1,295,456) Total Expenditures 194,394,563 142,725,373 139,909,660 203,491,283 (9,096,720) Surplus (Deficit)- 2,346,737 6,919,190 585,589 585,589 72 •May 2021 Operating Budget •May 2021 Operating Results General Fund Revenue Projections The City of Saint John 2025 General Fund Operating Budget September 2025 2025 YTD YTD 2025 2025 Budget Budget Actual YE Forecast YE Variance $$$$$ Revenues Property Taxes 156,964,319 117,723,240 117,723,240 156,964,319 - PILT Adjustment 23,453 23,450 23,450 23,453 - Equalization & Unconditional Grant 12,803,691 9,602,775 9,602,775 12,803,691 - Regional Services Grant 1,006,997 755,244 755,244 1,006,997 - Surplus 2nd Year Previous Year 272,858 204,642 204,642 272,858 - Transfer from Operating Reserves 676,000 506,997 506,997 2,222,000 1,546,000 Growth & Community Services 7,216,811 5,423,428 6,290,807 13,273,986 6,057,176 Public Works & Transportation Services 6,726,934 5,052,579 5,436,197 7,690,919 963,986 Public Safety Services 2,208,313 1,656,216 1,742,221 2,378,160 169,847 Utilities & Infrastructure Services 340,635 257,634 179,298 274,002 (66,633) Strategic Services 5,154,554 3,865,905 4,363,978 6,166,487 1,011,933 Saint John Energy Benefits 1,000,000 - - 1,000,000 - Total Revenues 194,394,563 145,072,110 146,828,850 204,076,872 9,682,308 73 General Fund Revenue Highlights Estimated Year End Revenue Projections -$9,682,308 Surplus Revenue Surplus Highlights Interest Revenue -$1,000,000 –interest rates higher than expected Permits and Licensing -$2,217,650 –record year for City in building permits issued Housing For All Funding -$1,195,800 –new funding to offset City’s cost of initiative Rapid Housing Initiative -$3,050,000 –funding to offset grants to Kaleidoscope Transfer from Reserves -$1,546,000 –variance due to funds transfer for annual road resurfacing (carried over from prior year) Off street Parking -$361,000 –better than anticipated results Accommodation Levy -$150,000 74 General Fund Year End Estimated Expenditures Financial Results September 2025 Operating Budget September 2025 Operating Results Year to Date Variance Wages and Benefits $50,021,863 $46,582,302 $3,439,561 Good and Services $92,703,510 $93,327,358 ($623,848) Total $142,725,373 $139,909,660 $2,815,713 2025 Operating Budget 2025 Estimated Operating Results Year End Variance Wages and Benefits $66,346,326 $64,721,676 $1,624,650 Good and Services $128,048,237 $138,769,607 ($10,721,370) Total $194,394,563 $203,491,283 ($9,096,720)75 Growth and Community Services Estimated Year End Projections –($3,928,636) unfavorable variance Wages and benefits anticipated to be under budget - $697,427 due to various vacancies and hiring challenges Good and services anticipated to be over budget - ($4,626,063) Variance is misleading Affordable Housing Grants –variance of $3.2M is offset by RHI funding of $3.05M Housing for All variance of $1.2M is offset by same amount of funding to pay for program Funding to Envison variance of $212K is offset by additional accommodation levy Overall sum of all variances after offsets from revenue is minimal for service areas 76 Estimated year end projections -($5,350,313) Deficit Wages and benefits anticipated to have small unfavorable variance of ($19,570) Overall variance in goods of services of ($5,330,743) however significant portion is offset by revenues. Roads Resurfacing –($2,136,894)variance.Due to unforeseen issues during the 2024 season,much of the work was not finished.Staff recommended the unspent budget of $1,650,000 to be transferred to reserves to complete the work next year in 2025 which has occurred Roads Resurfacing –The City is also receiving approximately $400K from the Province for funding towards the program to offset additional cost There is a transfer of $200K from reserves to cover the cost of work being done for the new Recreation Centre that will offset expenses in recreation; Additional revenue of $178K to offset cost of encampment cleanups Utility Cut revenue is expected to be $265K higher to offset the additional cost incurred. Public Works and Transportation Services 77 (Estimated year end projections variance continued)C Normalized variance after offsets is ($2,637,743) Summary of overages 2025 Snow Removal Season Road Salt Cost -$460K Unexpected Equipment Rental -$65K Safety Gear -$50K Various parts cost of equipment -$90K Fleet Renewal Costs -$540K overbudget due to cost of replacement vehicle/equipment much higher than prior vehicles/equipment Encampments Cleanups/Illegal Dumping -$55K Insurance Claims -$100K Pedestrian and Traffic Traffic Counting Software -$65K K Park Rail Crossing -$117K Line Paint inflation increases -$54K Equipment replacement -$95K Public Works and Transportation Services 78 (Estimated year end projections variance continued)Continued Tipping Fees -$200K more than expected Parking -$165K due to costs of parking study, additional contracts and additional equipment. Fleet Parts -$680K due to continued increase in cost. Transits Subsidy $100K increase in subsidy which is a significant improvement over the last two years. Public Works and Transportation Services 79 Public Safety Services Saint John Fire and Emergency Management Services is anticipated to have a combined deficit of ($201,579) Salaries and Benefits are anticipated to have minor surplus of $3,610 Goods and Services overbudget by ($205K) Significant building repairs at various Stations ($82K) Increase in cost of bunker gear ($147K) Fleet Parts due to age of fire fleet and inflation ($97K) Overage partially offset with positive variances in other budget lines 80 Utilities and Infrastructure Services Utilities and Infrastructure –Unfavorable variance of ($52,637) •Wages and Benefits -$312,503 positive variance •Goods and Services –($365,140)anticipated unfavorable variance •Most service areas have small variances due to general inflationary increases •City Hall’s unfavorable variance was due to additional work done in the customer service centre for new security measures 81 Strategic Services Strategic Services anticipated to have a surplus of $800,167 Wages and benefits $426,383 positive variance is due to vacancies, several retirements occurred in 2025. Goods and Services -$373,784 positive variance Finance -due to less professional services utilized in 2025 Information Technology Some license cost were less than expected Timing around various projects and receipts of goods 82 Corporate Services Corporate Service projecting a $299,833 favorable variance Wages and Benefits are under budget by $205,853 Professional Fees less than expected for Chief Administrative Officer Minor overages for Human Resources Real Estate Communications and External Relations 83 Other Charges Other Charges anticipated to have ($1,295,456) variance Transfer to Capital Reserves –($538,456) variance relates to sale of equipment and insurance proceeds transferred to reserves Other expenses related to various litigation matters. 84 Saint John Water Saint John Water 2025 Water & Sewerage Operating Budget SEPTEMBER 2025 2025 YTD YTD YE YE Budget Budget Actual Forecast Variance $$$$$ Revenues Flat Rate Accounts 21,883,500 21,883,500 21,841,553 21,813,000 (70,500) Meter Rate Accounts 19,389,500 12,926,332 12,196,966 18,361,328 (1,028,172) Industrial Raw Water Accounts 7,438,122 4,958,748 3,279,676 7,327,075 (111,047) Fire Protection Levy 2,500,000 1,874,997 1,874,997 2,500,000 - Storm Sewer Levy 1,000,000 749,997 708,750 945,000 (55,000) Other Revenues 1,667,360 1,200,502 1,590,528 1,866,637 199,277 Previous Year's Surplus 764,858 573,642 573,642 764,858 - Transfer from Reserve 750,000 - - 750,000 Total Revenues 55,393,340 44,167,718 42,066,113 54,327,898 (1,065,442) Expenditures Drinking Water Service 25,974,629 18,478,214 18,611,423 26,127,654 (153,025) Wastewater Service 20,538,918 14,943,467 16,598,625 23,895,552 (3,356,634) Infrastructure Management 861,410 646,174 741,074 837,012 24,398 Industrial Water Service 8,018,383 4,772,865 3,486,858 8,128,066 (109,683) Total Expenditures 55,393,340 38,840,720 39,437,980 58,988,284 (3,594,944) Surplus (Deficit)- 5,326,998 2,628,132 (4,660,386) (4,660,386) 85 Saint John Water Revenue Saint John Water 2025 Water & Sewerage Operating Budget SEPTEMBER 2025 2025 YTD YTD YE YE Budget Budget Actual Forecast Variance $$$$$ Revenues Flat Rate Accounts 21,883,500 21,883,500 21,841,553 21,813,000 (70,500) Meter Rate Accounts 19,389,500 12,926,332 12,196,966 18,361,328 (1,028,172) Industrial Raw Water Accounts 7,438,122 4,958,748 3,279,676 7,327,075 (111,047) Fire Protection Levy 2,500,000 1,874,997 1,874,997 2,500,000 - Storm Sewer Levy 1,000,000 749,997 708,750 945,000 (55,000) Other Revenues 1,667,360 1,200,502 1,590,528 1,866,637 199,277 Previous Year's Surplus 764,858 573,642 573,642 764,858 - Transfer from Reserve 750,000 - - 750,000 Total Revenues 55,393,340 44,167,718 42,066,113 54,327,898 (1,065,442) 86 Revenue anticipating overall unfavorable variance of ($1,065,422) Meter revenue –($1,028,172) unfavorable variance Largest driver is an industrial customer that saw potable water stopped for a period, then decreased due to drought, resulting in expected loss of $600K in revenues Balance of decrease is less consumption across commercial customers Industrial revenue –($111,047) unfavorable variance This only impact industrial uses, not potable ratepayers Other revenue -$199,277 positive variance Interest Revenue –increase due to interest rates not declining as anticipated Saint John Water Revenue 87 Saint John Water Expenditure Saint John Water 2025 Water & Sewerage Operating Budget SEPTEMBER 2025 2025 YTD YTD YE YE Budget Budget Actual Forecast Variance $$$$$ Expenditures Drinking Water Service 25,974,629 18,478,214 18,611,423 26,127,654 (153,025) Wastewater Service 20,538,918 14,943,467 16,598,625 23,895,552 (3,356,634) Infrastructure Management 861,410 646,174 741,074 837,012 24,398 Industrial Water Service 8,018,383 4,772,865 3,486,858 8,128,066 (109,683) Total Expenditures 55,393,340 38,840,720 39,437,980 58,988,284 (3,594,944) 88 •May 2021 Operating Budget•May 2021 Operating Results •September 2025 Operating Budget•September2025 Operating Results•Year to Date Variance •September 2025 Operating Budget•September2025 Operating Results•Year to Date Variance Saint John Water Expenditures September 2025 Operating Budget September 2025 Operating Results Year to Date Variance Wages and Benefits $7,606,359 $7,822,232 ($215,873) Good and Services $31,234,361 $31,615,748 ($381,387) Total $38,840,720 $39,437,980 ($597,260) Year End Operating Budget Year End Operating Results Projected Year End Variance Wages and Benefits $10,141,858 $10,439,054 ($297,196) Goods and Services $45,251,482 $48,549,230 ($3,297,748) Total $55,393,340 $58,988,284 ($3,594,944)89 Variance Analysis 2025 Year End Projection –($3,594,634)unfavorable variance Saint John Water experienced 3 major events that were outside normal operating expenses June 2025 –several water transmission failures occurred requiring external contractors, consultants, procurement of equipment, valves and large pipes to complete repairs. June-July 2025 –A specialty contractor was engaged to perform a condition assessment on the equipment and the Eastern Wastewater Treatement facility. This assessment resulted in immediate repairs and operational work that was completed under the guidance of safety professionals and wastewater treatment experts to ensure the facility met regulatory requirements and approvals Saint John Water Expenditures 90 “Variance Analysis continued” Saint John Water experienced drought conditions that were the driest conditions on record for the period of July to September. To ensure supply of potable and raw water, a consultant was engaged to advance the design of emergency pumping, obtain regulatory approvals and assist with the engagement of contractors and suppliers to carry out construction work and emergency pumping if required. These major issues not only impacted the goods and service budget lines but had a significant impact on staffing and additional overtime required for each situation. Staff have included a detailed report for Finance Committee that has detailed information, pictures, work required, resources required for the various events. Saint John Water Expenditures 91 Conclusion General fund received funding from several sources thatwereusedtooffsetcostassociatedwithvariousprograms such as Housing Accelerator Funding,Housing for All Strategy and accessing reserves for road resurfacing notdonein2025. The City has had a record year for building permits and willhaveaverypositiveimpactontaxassessmentinfuture years. There were several challenges in Public Works,due to factors outside of their control.Winter weather,cost ofequipmentandparts,paint and other items. However,collectively the General fund is projected to be in a positive position and depending on how early winterimpactstheCity,Staff will continue to be diligent in managing their budgets. Utility Fund has had a very challenging year.The budget does not allow for much variance in expenditures and thatwasevidentthisyear.Staff will continue to pull back on spending where it can for balance of the year. Staff will be recommending transferring up to $4M from Utility Reserves to cover the cost of these unforeseenevents.Final transfers amounts from reserves will bebroughttoFinanceCommitteeforapprovalinearly December.92 Utility Fund Reserves Current Balance Utility Fund Opening Balance ($) Transfers to ($)Interest ($) Withdrawals from ($) Ending Balance ($) Operating Reserve 4,852,605 - - 4,750,000 102,605 Fleet Reserve 3,896,884 - - - 3,896,884 Infrastructure Reserve 374,890 - - - 374,890 Potable Capital Reserves 13,805,617 - - - 13,805,617 22,929,995 - - - 18,179,995 Note: $750,000 transfer was inlcuded in 2025 budget for Lancaster Lagoon Assuming additional $4M transferred from reserves to fund deficit 93 Recommendation “Recommend the Finance Committee approve the transfer of up to $4.0 million from Utility Fund reserves to offset the significant deficit projected for 2025” “Recommend the Finance Committee receive and file this presentation and direct any questions to staff” 94 The City of Saint John 2025 General Fund Operating Budget September 2025 2025 YTD YTD 2025 2025 Budget Budget Actual YE Forecast YE Variance $$$$$ Revenues Property Taxes 156,964,319            117,723,240         117,723,240         156,964,319           ‐                       PILT Adjustment 23,453                      23,450                   23,450                   23,453                     ‐                       Equalization & Unconditional Grant 12,803,691               9,602,775              9,602,775              12,803,691             ‐                       Regional Services Grant 1,006,997                 755,244                 755,244                 1,006,997               ‐                       Surplus 2nd Year Previous Year 272,858                    204,642                 204,642                 272,858                  ‐                       Transfer from Operating Reserves 676,000                    506,997                 506,997                 2,222,000              1,546,000           Growth & Community Services 7,216,811                 5,423,428              6,290,807              13,273,986            6,057,176           Public Works & Transportation Services 6,726,934                 5,052,579              5,436,197              7,690,919              963,986              Public Safety Services 2,208,313                 1,656,216              1,742,221              2,378,160              169,847              Utilities & Infrastructure Services 340,635                    257,634                 179,298                 274,002                 (66,633)               Strategic Services 5,154,554                 3,865,905              4,363,978              6,166,487              1,011,933           Saint John Energy Benefits 1,000,000                  ‐                          ‐                         1,000,000               ‐                       Total Revenues 194,394,563            145,072,110         146,828,850         204,076,872         9,682,308          Expenditures Growth & Community Services 22,628,358               17,383,960           18,628,632           26,556,994            (3,928,636)          Public Works & Transportation Services 49,476,188               35,938,367           38,409,984           54,826,501            (5,350,313)          Public Safety Services ‐ Fire, EMO and PSCC 33,675,248               25,284,769           22,971,113           33,711,527            (36,280)               Public Safety Services ‐ Police Commission 30,751,388               22,719,655           20,615,219           30,284,787            466,602              Utilities & Infrastructure Services 5,453,727                 4,161,325              3,710,434              5,506,364              (52,637)               Strategic Services 9,072,153                 7,529,541              6,748,375              8,271,986              800,167              Corporate Services 8,424,251                 6,374,623              5,912,651              8,124,418              299,833              Other Charges 34,913,250               23,333,133           22,913,254           36,208,706            (1,295,456)          Total Expenditures 194,394,563            142,725,373         139,909,660         203,491,283         (9,096,720) Surplus (Deficit)‐                            2,346,737             6,919,190             585,589                 585,589              95 City of Saint John by Service 2025 General Fund Operating Budget September 2025 2025 YTD YTD 2025 2025 Budget Budget Actual YE Forecast YE Variance $$$$$ Growth & Community Services Salaries 7,138,317                 5,484,538              5,010,296              6,440,890              697,427              Goods & Services 15,490,041               11,899,422           13,618,335           20,116,104            (4,626,063)          TOTAL 22,628,358              17,383,960           18,628,632           26,556,994           (3,928,636)         Public Works & Transportation Services Salaries 18,456,763               14,003,850           14,186,287           18,476,333            (19,570)               Goods & Services 31,019,425               21,934,517           24,223,693           36,350,168            (5,330,743)          TOTAL 49,476,188              35,938,367           38,409,984           54,826,501           (5,350,313)         Public Safety Services ‐ Fire, EMO and PSCC Salaries 26,733,140               20,019,906           17,693,287           26,731,087            2,053                  Goods & Services 6,942,108                 5,264,863              5,277,825              6,980,441              (38,333)               TOTAL 33,675,248              25,284,769           22,971,113           33,711,527           (36,280)              Public Safety Services ‐ Police Commission Grant 30,751,388               22,719,655           20,615,219           30,284,787            466,602              TOTAL 30,751,388              22,719,655           20,615,219           30,284,787           466,602              Utilities & Infrastructure Services Salaries 3,253,673                 2,440,272              2,145,896              2,941,170              312,503              Goods & Services 2,200,054                 1,721,053              1,564,537              2,565,194              (365,140)             TOTAL 5,453,727                4,161,325             3,710,434             5,506,364              (52,637)              Strategic Services Salaries 4,704,798                 3,528,603              3,194,804              4,278,414              426,383              Goods & Services 4,367,355                 4,000,938              3,553,571              3,993,571              373,784              TOTAL 9,072,153                7,529,541             6,748,375             8,271,986              800,167              Corporate Services Salaries 6,059,634                 4,544,694              4,351,729              5,853,781              205,853              Goods & Services 2,364,617                 1,829,929              1,560,923              2,270,637              93,980                TOTAL 8,424,251                6,374,623             5,912,651             8,124,418              299,833              Other Charges Goods & Services 34,913,250               23,333,133           22,913,254           36,208,706            (1,295,456)          34,913,250              23,333,133           22,913,254           36,208,706           (1,295,456)         TOTAL EXPENDITURES 194,394,563            142,725,373         139,909,660         203,491,283         (9,096,720)         96 The City of Saint John 2025 General Fund Operating Budget September 2025 2025 YTD YTD 2025 2025 Budget Budget Actual YE Forecast YE Variance $$$$$ Revenues Property Taxes 156,964,319            117,723,240         117,723,240         156,964,319           ‐                       PILT Adjustment 23,453                      23,450                   23,450                   23,453                     ‐                       Equalization & Unconditional Grant 12,803,691               9,602,775              9,602,775              12,803,691             ‐                       Regional Services Grant 1,006,997                 755,244                 755,244                 1,006,997               ‐                       Surplus 2nd Year Previous Year 272,858                    204,642                 204,642                 272,858                  ‐                       Transfer from Operating Reserves 676,000                    506,997                 506,997                 2,222,000              1,546,000           Growth & Community Services 7,216,811                 5,423,428              6,290,807              13,273,986            6,057,176           Public Works & Transportation Services 6,726,934                 5,052,579              5,436,197              7,690,919              963,986              Public Safety Services 2,208,313                 1,656,216              1,742,221              2,378,160              169,847              Utilities & Infrastructure Services 340,635                    257,634                 179,298                 274,002                 (66,633)               Strategic Services 5,154,554                 3,865,905              4,363,978              6,166,487              1,011,933           Saint John Energy Benefits 1,000,000                  ‐                          ‐                         1,000,000               ‐                       Total Revenues 194,394,563            145,072,110         146,828,850         204,076,872         9,682,308          Expenditures Growth & Community Services Growth & Community Planning Services 1,680,262                 1,220,119              1,254,184              1,863,777              (183,514)             Development Engineering 391,301                    290,555                 274,621                 359,380                 31,921                Community Development 539,823                    404,240                 308,453                 471,128                 68,695                Animal Control 120,000                    90,000                   82,907                   110,543                 9,457                  Dangerous and Vacant Building Program 278,451                    246,249                 147,136                 196,290                 82,162                Minimum Property Standards 506,125                    379,530                 266,045                 340,409                 165,716              Heritage Conservation Service 207,018                    107,097                 134,053                 196,294                 10,724                Other By‐Laws 297,552                    239,063                 203,424                 250,916                 46,636                Permitting & Inspection Services 1,459,850                 1,082,201              1,161,876              1,590,005              (130,154)             Regional  Economic Development Agency 3,087,500                 2,288,637              1,639,109              3,300,000              (212,500)             Market Square 2,500,000                 1,874,997              2,010,416              2,600,000              (100,000)             Saint John Trade & Convention Centre 156,543                    117,405                 105,548                 156,543                  ‐                       Imperial Theatre 322,021                    241,515                 234,015                 322,021                  ‐                       Saint John Aquatic Centre 423,225                    317,418                 310,945                 423,225                  ‐                       Saint John Arts Centre 128,549                    96,411                   93,418                   128,549                  ‐                       TD Station 502,796                    377,097                 485,284                 502,796                  ‐                       Library 544,839                    409,615                 409,615                 544,840                  ‐                       City Market 1,316,629                 978,623                 1,108,657              1,499,028              (182,399)             Arts & Culture Board 70,000                      52,497                   20,130                   65,000                    5,000                  PRO Kids 243,677                    176,444                 157,427                 199,623                 44,054                Local Immigration Partnership 62,831                      62,831                   68,968                   68,968                    (6,137)                 Carleton Community Center 193,167                    193,167                 193,167                 193,167                  ‐                       Loch Lomond Community Center 45,000                      45,000                    ‐                          ‐                          45,000                North End Community Center 193,167                    193,167                 193,167                 193,167                  ‐                       Recreation Programming 1,222,380                 934,845                 862,046                 1,153,697              68,683                Neighbourhood Development 172,000                    172,000                 150,000                 150,000                 22,000                YMCA ‐ Contracted Services 155,564                    155,564                 155,564                 155,564                  ‐                       Boys and Girls Club ‐ Contracted Services 144,181                    144,181                 144,181                 144,181                  ‐                       Unspecified Grants 289,000                    289,000                 214,180                 284,500                 4,500                  Affordable Housing Strategy 197,583                    147,400                 3,137,564              3,426,779              (3,229,196)          Lifeguards 203,400                    203,398                  ‐                         203,398                 2                          Play SJ 45,000                      45,000                    ‐                          ‐                          45,000                Lord Beaverbrook Rink 182,000                    143,253                 131,684                 170,444                 11,556                97 The City of Saint John 2025 General Fund Operating Budget September 2025 2025 YTD YTD 2025 2025 Budget Budget Actual YE Forecast YE Variance $$$$$ Growth & Community Services (Continued) Building Incentive Reserve 350,000                    174,999                 269,987                 350,000                  ‐                       Regional Services Commission 396,772                    396,772                 243,649                 396,772                  ‐                       Housing Accelerator Program 2,775,572                 2,181,863              869,218                 2,155,959              619,612              Housing for All ‐                             ‐                         692,396                 1,195,800              (1,195,800)          Growth Department 709,579                    525,572                 509,365                 679,231                 30,347                Saint John Industrial Parks 515,000                    386,235                 386,235                 515,000                  ‐                       Total Growth & Community Development Serv 22,628,358              17,383,960           18,628,632           26,556,994           (3,928,635) Public Safety Services ‐ Fire, EMO and PSCC Fire Rescue and Suppression Service 25,278,938               18,966,934           17,061,902           25,444,046            (165,108)             Fire Training 3,000                        2,232                     2,686                     2,686                      314                      Technical Rescue Response 47,489                      46,842                   77,007                   92,968                    (45,479)               Hazardous Materials 61,417                      57,825                   47,298                   75,763                    (14,346)               Fire Prevention 970,571                    728,262                 630,369                 962,869                 7,702                  Fire Investigation 67,743                      50,817                   22,980                   64,257                    3,486                  Emergency Management Services 330,971                    248,289                 156,791                 319,120                 11,851                Water Supply and Hydrants 2,500,000                 1,874,997              1,874,997              2,500,000               ‐                       Public Safety Communications Centre 3,205,118                 2,363,580              2,237,833              3,071,463              133,655              Street Lighting 1,210,000                 907,497                 843,356                 1,153,356              56,644                Total Public Safety ‐ Fire, EMO and PSCC 33,675,248              25,284,769           22,971,113           33,711,527           (36,280) Public Safety Services ‐ Police Commission Saint John Police Commission Grant 30,751,388               22,719,655           20,615,219           30,284,787            466,602              Total ‐ Saint Police Commission Grant 30,751,388              22,719,655           20,615,219           30,284,787           466,602              98 The City of Saint John 2025 General Fund Operating Budget September 2025 2025 YTD YTD 2025 2025 Budget Budget Actual YE Forecast YE Variance $$$$$ Public Works & Transportation Services Snow Control Streets 5,509,023                 3,288,349              5,019,517              6,362,300              (853,277)             Street Cleaning 1,741,677                 1,460,960              1,784,364              2,436,960              (695,284)             Utility Cuts 1,222,668                 916,932                 1,141,378              1,455,290              (232,622)             Street Services ‐ Surface Maintenance 8,608,264                 6,465,974              5,901,580              10,745,158            (2,136,894)          Snow Control Sidewalk 1,197,741                 874,153                 921,815                 1,242,032              (44,291)               Sidewalk Maintenance 941,591                    629,065                 576,978                 724,082                 217,509              Pedestrian & Traffic Management Service 2,607,775                 2,196,730              2,165,930              2,991,611              (383,836)             Solid Waste Management 4,145,894                 3,116,131              2,845,332              4,025,647              120,247              Landscape ‐ Parks & Open Spaces 3,094,030                 2,330,304              2,973,490              3,536,828              (442,798)             Rockwood Park 588,050                    456,818                 334,643                 395,159                 192,891              Urban Forestry 413,439                    310,368                 318,744                 392,562                 20,877                Saint John Horticultural Association 70,000                      70,000                   70,000                    ‐                          70,000                Arena Operation & Maintenance 1,518,945                 1,054,114              1,115,417              1,602,558              (83,614)               Sportsfield Operation & Maintenance 1,428,466                 1,032,512              1,150,441              1,478,857              (50,391)               Other Facilities Operation & Maintenance 539,239                    420,068                 292,502                 399,399                 139,840              Transit Debt 1,411,000                 376,797                 376,797                 1,411,000               ‐                       Transit Subsidy 7,405,172                 5,553,885              5,553,885              7,455,172              (50,000)               Fleet Fuel ‐                             ‐                         1,865                      ‐                           ‐                       Fleet Stockroom 340,939                    268,514                 677,059                 1,019,521              (678,582)             Stormwater 4,213,369                 3,461,495              3,346,040              4,423,204              (209,835)             Parking Administration 971,024                    752,396                 882,309                 1,148,720              (177,696)             Peel Plaza Parking Garage 332,673                    269,651                 224,780                 286,825                 45,849                Market Square Parking Garage 169,538                    124,363                 203,602                 276,835                 (107,297)             Off Street Parking 1,005,670                 508,788                 531,514                 1,016,781              (11,111)               Total Public Works & Transportation 49,476,188              35,938,367           38,409,984           54,826,501           (5,350,313)         99 The City of Saint John 2025 General Fund Operating Budget September 2025 2025 YTD YTD 2025 2025 Budget Budget Actual YE Forecast YE Variance $$$$$ Utilities & Infrastructure Services Engineering 1,457,300                 1,100,117              909,336                 1,300,825              156,475              Carpenter Shop 404,336                    303,934                 278,810                 378,538                 25,798                Facilities Management 1,763,070                 1,334,452              1,127,748              1,762,009              1,061                  City Hall Building 1,089,123                 925,323                 939,729                 1,103,375              (14,252)               GIS 517,550                    330,789                 317,994                 765,340                 (247,790)             Stockroom 222,347                    166,710                 136,816                 196,277                 26,070                Total Utilities & Infrastructure Services 5,453,727                4,161,325             3,710,434             5,506,364              (52,637)              Strategic Services Finance 1,402,393                 1,055,553              849,996                 1,198,606              203,788              Assessment 1,879,282                 1,879,282              1,879,282              1,879,282               ‐                       Supply Chain Management 449,811                    337,311                 328,870                 437,909                 11,903                Information Technology 4,129,729                 3,203,710              2,716,332              3,635,476              494,253              Corporate Planning 487,609                    368,737                 312,387                 405,794                 81,815                Insurance 153,328                    114,948                 103,834                 157,244                 (3,916)                 Liability Insurance 570,000                    570,000                 557,675                 557,675                 12,325                Total Strategic Services 9,072,153                7,529,541             6,748,375             8,271,986              800,167              Corporate Services Chief Administrators Office 808,249                    606,123                 416,886                 630,904                 177,345              Mayor's Office 199,201                    149,414                 127,600                 176,274                 22,927                Common Council 583,959                    437,971                 420,135                 576,592                 7,367                  Common Clerk 737,800                    553,293                 484,165                 676,951                 60,849                Human Resources 2,801,678                 2,106,201              2,115,634              2,827,436              (25,758)               Legal Department 1,302,142                 976,536                 791,986                 1,210,737              91,405                Real Estate 325,144                    252,545                 295,627                 352,582                 (27,438)               Customer Service 956,699                    760,598                 725,321                 923,336                 33,363                Corporate Communications 520,949                    390,633                 393,892                 550,097                 (29,148)               External Relations 188,430                    141,309                 141,404                 199,509                 (11,079)               Total Corporate Services 8,424,251                6,374,623             5,912,651             8,124,418              299,833              Other Charges Fiscal Charges 14,191,000               7,791,456              7,784,546              14,098,000            93,000                Landfill Closure 300,000                    225,000                 225,000                 300,000                  ‐                       Special Pension Contributions 10,622,250               7,966,683              7,014,958              10,072,250            550,000              Other Misc. Expenses / PILT Adjustment ‐                             ‐                          ‐                         1,400,000              (1,400,000)          Transfer to Capital Reserves 3,000,000                 2,250,000              2,788,756              3,538,456              (538,456)             Capital from Operating 6,800,000                 5,099,994              5,099,994              6,800,000               ‐                       Total Other Charges 34,913,250              23,333,133           22,913,254           36,208,706           (1,295,456)         Total Expenditures 194,394,563            142,725,373         139,909,660         203,491,283         (9,096,720)         Surplus (Deficit)‐                            2,346,737             6,919,190             585,589                 585,589              100 Saint John Water 2025 Water & Sewerage Operating Budget SEPTEMBER 2025 2025 YTD    YTD    YE YE Budget Budget Actual Forecast Variance $$$$$ Revenues Flat Rate Accounts 21,883,500      21,883,500      21,841,553       21,813,000       (70,500)             Meter Rate Accounts 19,389,500      12,926,332      12,196,966       18,361,328       (1,028,172)       Industrial Raw Water Accounts 7,438,122        4,958,748        3,279,676         7,327,075         (111,047)           Fire Protection Levy 2,500,000        1,874,997        1,874,997         2,500,000          ‐                     Storm Sewer Levy 1,000,000        749,997            708,750             945,000             (55,000)             Other Revenues 1,667,360        1,200,502        1,590,528         1,866,637         199,277            Previous Year's Surplus 764,858            573,642            573,642             764,858              ‐                     Transfer from Reserve 750,000             ‐                      ‐                      750,000              Total Revenues 55,393,340      44,167,718      42,066,113       54,327,898       (1,065,442)       Expenditures Drinking Water Service 25,974,629      18,478,214      18,611,423       26,127,654       (153,025)           Wastewater Service 20,538,918      14,943,467      16,598,625       23,895,552       (3,356,634)       Infrastructure Management 861,410            646,174            741,074             837,012             24,398              Industrial Water Service 8,018,383        4,772,865        3,486,858         8,128,066         (109,683)           Administration ‐                      ‐                      ‐                       ‐                     Total Expenditures 55,393,340      38,840,720      39,437,980       58,988,284       (3,594,944)       Surplus (Deficit)‐                     5,326,998        2,628,132         (4,660,386)        (4,660,386)       1101 Saint John Water 2025 Water & Sewerage Operating Budget Salaries and Goods & Services SEPTEMBER 2025 Drinking Water Service Wages and Benefits 3,835,962        2,876,952        3,342,821         4,080,235         (244,273)           Goods & Services 22,138,667      15,601,262      15,268,602       22,047,419       91,248              Total 25,974,629      18,478,214      18,611,423      26,127,654      (153,025)          Wastewater Service Wages and Benefits 4,448,415        3,336,288        3,376,726         4,504,105         (55,690)             Goods & Services 16,090,503      11,607,179      13,221,899       19,391,447       (3,300,944)       Total 20,538,918      14,943,467      16,598,625      23,895,552      (3,356,634)       Infrastructure Management Wages and Benefits 614,431            460,821            592,966             603,447             10,984              Goods & Services 246,979            185,353            148,107             233,565             13,414              Total 861,410           646,174           741,074            837,012            24,398              Industrial Water Service Wages and Benefits 1,243,050        932,298            509,719             1,251,267         (8,217)               Goods & Services 6,775,333        3,840,567        2,977,140         6,876,799         (101,466)           Total 8,018,383        4,772,865        3,486,858         8,128,066         (109,683)          TOTAL EXPENDITURES 55,393,340      38,840,720      39,437,980      58,988,284      (3,594,944)       2102 2025 Water & Sewerage Operating Budget SEPTEMBER 2025 2025 YTD    YTD    YE YE Budget Budget Actual Forecast Variance Revenues Flat Rate Accounts 21,883,500      21,883,500      21,841,553       21,813,000       (70,500)             Meter Rate Accounts 19,389,500      12,926,332      12,196,966       18,361,328       (1,028,172)       Industrial Raw Water Accounts 7,438,122        4,958,748        3,279,676         7,327,075         (111,047)           Fire Protection Levy 2,500,000        1,874,997        1,874,997         2,500,000          ‐                     Storm Sewer Levy 1,000,000        749,997            708,750             945,000             (55,000)             Other Revenues 1,667,360        1,200,502        1,590,528         1,866,637         199,277            Previous Year's Surplus 764,858            573,642            573,642             764,858              ‐                     Transfer from Reserves 750,000             ‐                      ‐                      750,000              ‐                     Total Revenues 55,393,340      44,167,718      42,066,113       54,327,898       (1,065,442)       Expenditures Drinking Water Service Watershed Management 879,877            660,996            564,382             863,198             16,679              Water Treatment 9,577,589        7,200,131        6,488,030         9,255,973         321,616            Water Pumping & Storage 1,256,362        980,000            972,163             1,302,242         (45,880)             Transmission & Distribution 4,623,509        3,475,436        4,058,696         4,978,766         (355,257)           Customer Metering 707,124            530,954            763,043             896,582             (189,458)           Internal Charges 470,000            305,622            449,520             551,398             (81,398)             Other Charges 575,142            431,352            478,293             575,142              ‐                     Debt Servicing 3,410,695        1,537,983        1,526,421         3,410,695          ‐                     Transfer to Capital Reserve 180,673            135,504            90,642                ‐                      180,673            Capital from Operating 4,293,658        3,220,236        3,220,236         4,293,658          ‐                     Total Drinking Water Service 25,974,629      18,478,214      18,611,423       26,127,654       (153,025)           Wastewater Service Wasterwater Pumping 3,318,002        2,515,083        2,796,162         3,668,649         (350,647)           Wastewater Collection 3,368,215        2,535,494        2,207,421         2,923,104         445,111            Wastewater Treatment 6,166,572        4,681,586        6,476,927         9,798,342         (3,631,770)       Internal Charges 470,000            305,622            214,980             470,000              ‐                     Other Charges 575,142            431,352            478,293             575,142              ‐                     Debt Servicing 2,746,973        1,553,821        1,549,197         2,746,973          ‐                     Transfer to Capital Reserve 180,672            135,504            90,642                ‐                      180,672            Capital from Operating 3,713,342        2,785,005        2,785,005         3,713,342          ‐                     Total Wastewater Services 20,538,918      14,943,467      16,598,625       23,895,552       (3,356,634)       Infrastructure Management Engineering Services 861,410            646,174            741,074             837,012             24,398              Total Infrastructure Management 861,410            646,174            741,074            837,012            24,398              Industrial Water Service Watershed Management 894,359            670,988            381,009             1,051,642         (157,283)           Water Pumping & Transmission 3,081,035        2,315,589        1,438,608         3,008,829         72,206              Customer Metering 245,421            183,991            64,946               270,027             (24,606)             Debt Servicing 1,661,162         ‐                      ‐                      1,661,162          ‐                     Transfer to Capital Reserves 836,677            627,507            627,507             836,677              ‐                     Transfer to Operating Reserve 703,469            527,598            527,598             703,469              ‐                     Capital from Operating 596,260            447,192            447,192             596,260              ‐                     Total Industrial Water Service 8,018,383        4,772,865        3,486,858         8,128,066         (109,683)           Total Expenditures 55,393,340      38,840,720      39,437,980       58,988,284       (3,594,944)       Surplus (Deficit)‐                     5,326,998        2,628,132         (4,660,386)        (4,660,386)       3103