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2017-05-30 Finance Committee Minutes - Open Session Finance Committee Meeting Open Session May 30, 2017 MINUTES - OPEN SESSION FINANCE COMMITTEE MEETING MAY 30, 2017 AT 4:30 PM th 8 FLOOR BOARDROOM, CITY HALL Present: Mayor D. Darling Councillor D. Merrithew Councillor D. Reardon Councillor G. Sullivan Councillor S. Casey Councillor G. Norton Also Present: Commissioner of Finance and Treasurer K. Fudge Deputy Commissioner Finance and Administrative Services I. Fogan Comptroller C. Graham Senior Manager, Financial Planning H. Nguyen Commissioner Saint John Water B. McGovern Commissioner of Transportation & Environment Services M. Hugenholtz Assistant Comptroller Finance C. Lavigne Commissioner Growth & Development Services J. Hamilton Common Clerk J. Taylor Acting Director Corporate Planning/Chief Information Officer S. Rackley-Roach Fire Chief K. Clifford Administrative Officer Fire Dept. J. Hennessy City Solicitor J. Nugent Administrative Assistant K. Tibbits 1. Meeting Called To Order Councillor Merrithew called the Finance Committee open session meeting to order. 1.1 Approval of Minutes – April 11, 2017 Moved by Councillor Reardon, seconded by Councillor Sullivan: RESOLVED that the minutes of April 11, 2017, be approved. MOTION CARRIED. 1.2 March 2017 Year End Forecast Referring to the submitted report, Ms. Nguyen stated that the forecast is based on the best available information, noting that it is a continuous process and that unexpected events can impact the forecast. Mitigation efforts are in place to help offset some of these unexpected factors. At the end of March, there is a small overall variance of approximately $134,000 but essentially on budget. Department heads commented on their budget areas, the variances within the budgets, and responded to questions. Finance Committee Meeting Open Session May 30, 2017 (Mr. Nugent entered the meeting) Mr. Fudge noted that some service areas are at risk for unexpected fluctuations such as weather, noting that there is a $2M reserve that has been established to absorb and mitigate that risk. Commenting on fiscal charges associated with external agencies such as the Police Department, he noted that although operating expenses associated with managing outside facilities incurred by the City are billed back to those areas, fiscal charges are not currently segrated and tracked. Mayor Darling indicated an interest in knowing the total cost of operating the police station. Moved by Councillor Reardon, seconded by Councillor Casey: RESOLVED that item 1.2 March 2017 Year End Forecast, be received for information. MOTION CARRIED. (Mr. Hugenholtz withdrew from the meeting) 1.3 Continuous Improvement Update Ms. Rackley-Roach commented on the submitted presentation entitled, “Continuous Improvement Update” and provided an update on projects including the City Hall space optimization project. The City is currently on track to reach its cumulative cost savings target of $2M by 2018. Continuous improvement projects are designed to eliminate any waste in services delivered by the City. The current focus is on projects that will generate savings in the $25,000 plus range. The Continuous improvement team is also involved in revenue generating projects and have indentified at least two upcoming projects in 2017. Moved by Mayor Darling, seconded by Councillor Reardon: RESOLVED that item 1.3 Continuous Improvement Update, be received for information. MOTION CARRIED. 1.4 Investment Management Policy Guidelines Mr. Fudge suggested that there may be an opportunity to earn more interest on cash holdings that are not immediately required to cover operating expenses. He noted that an investment policy based on best practices of other municipalities is being proposed to guide investment decisions and ensure alignment with Council’s priorities. Referring to the submitted presentation entitled “Investment Policy”, Mr. Lavigne noted that City funds, such as surplus cash and reserve funds not needed for day to day operations, would be invested at a higher rate of return in order to maximize return on investment. The return on these funds currently is less than one percent. The main principles of the investment policy is principle protection, liquidity to meet the demands of the City, and earning a higher investment return in the operating account. Moved by Councillor Norton, seconded by Councillor Sullivan: RESOLVED that the Finance Committee endorse the Investment Policy and bring it forward to the next meeting of Common Council for acceptance. MOTION CARRIED. Adjournment Moved by Councillor Sullivan, seconded by Councillor Reardon: RESOLVED that the Finance Committee open session meeting held on Tuesday, May 30th, 2017 be adjourned. MOTION CARRIED. The Finance Committee meeting held on May 30, 2017 was adjourned at 6:10 p.m.