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2010-01-07_Agenda Packet--Dossier de l'ordre du jourCity of Saint John Common Council Meeting Thursday, January 07, 2010 Committee of the Whole Open Session 1. Call to Order 6:00 p.m. Council Chamber 1.1 2010 Operating Budgets Priorities and Positioning 1.2 2010 General Fund Operating Budget Summary 1.3 2010 General Fund Operating Budget and Capital Budget 1.4 City of Saint John 2010 Budget Spreadsheet City of Saint John Seance du conseil communal Le jeudi 7 janvier 2010 Comite plenier (seance publique) 1. Ouverture de la seance 18 h Salle du conseil 1.1 Budgets de fonctionnement de 2010 Priorites et positionnement 1.2 Resume du budget de fonctionnement du fonds d'admini strati on de 2010 1.3 Budget de fonctionnement du fonds d'administration et budget d'immobilisations de 2010 1.4 Tableau de ventilation du budget de 2010 de The City of Saint John 2010 Operating Budgets C) PRIORITIES WATER/WASTEWATER ROADS/SIDEWALKS RECREATION/GREEN SPACE 2 Council Priorities ID FOCUS 2010 TAX RATE STABLE Priorities and Positioning MUNICIPAL PLAN MUNICIPAL PLANNING,. $756,000 FLOODING ROAD MAINTENANCE MUNICIPAL GROWTH S80,000 Asphalt REVENUE GENERATION DRAINAGE (FLOODING) PENSION SOLUTION 14.Prajects TAX RATE RECREATION SERVICE DELIVERY Parks, Staffing, Programs PRIORITITY PENSION REFORM NEIGHBOURHOODS 1/7/2010 Key Drivers o STABLE/DECLINING TAX RATE Multi-year irnpact DEBT LOAD Borrowing affects costs capital projects ECONOMIC DEVELOPMENT Continue to need good growth HUMAN RESOURCES Attract, Retain, Collective Bargaining, Wage Costs PENSION FUNDING Legal Obligation Budget Highlights Tax Rate $1.785 o Gross Expenditures $134,198,000 o Establishment 682 positions o Service Based Budget Transition Service Objectives Performance Indicators Collective Bargaining Locals 771, 61, 18 Pension Reform with one year deferral Act on Council Priorities 3 1/7/2010 Positioning Flexibility Opportunities /Challenges Spending Caps 1% Fire and Police Services Pension Reform -PIB by September Debt Management Multi-year plan Service Based Budget links funding to results Performance Management -results Intergovernmental Relations Economic Development Revenue Generation issues and Uncertainty Collective .Bargaining Pension Reform Process Provincial Funding Support Provincial Election Employee Turnover 4 1/7/2010 Water and Sewerage o Rate frorr $830 to $864 or 4.1% o Gross Budget (operating)- $33,793.000 o Capital Budget- $44,245,000 Other Share $25,6b2,666 Utility Share $18,642,334 Focus Safe, Clean Drinking Water' 6 projects (23,995,000) Revise ACtiOn Plan Infrastructure Program Management Team Cleaning Lining Phase 7 ($1,170,000) Wastewater Treatment (Harbour Clean Up) 6 wastewater lift stations ($22,365,000) Eastern Wastewater Treatment Facility (ongoing consiructionl Sewer Use By Law Separation of combined sewers ($515,000) Rate Affordability 5 1/7/2010 2010 General Fund Operating Budget Summary Framework Priorities and Positioning Focus will be on implementing Council priorities and positioning the City for longer term achievement. Concentration on municipal plan, road maintenance, drainage, recreation services Key Drivers Tax Rate a stable or declining tax rate is the Tong -term objective Wage Costs approx. $69M of the budget is for wage and'benefit costs the size and cost of our workforce must be controlled and it must deployed so•as to achieve maximum results Debt Management we must manage our debt or it 'will manage us the level of capital investment must be both strategic and commensurate with our ability to absorb the related multi -year debt retirement costs Economic Development fostering good growth will contribute to community wealth, additional investment, increased tax base and new employment Human Resources —our services are provided by people, good services require good people we need a highly motivated, energized, productive workforce with strong leadership. The collective bargaining process must result in a tangible contribution to these outcomes. Pension Funding —the City has a legal obligation to fund the pension plan, the current model is not sustainable and reform is necessary Budget Highlights ,4< Tax rate of $1 :385:per $100:assessment }fN rrar Gross budget $134,198,241 (5, >72% increase over 2009) Establishment of 682. permarient positions over 2009) Initiating a, service ba hudgetmodel Service objectives. and performance indicators set for each service LOrganizational restructuring to take place 2010 Funding to initiate comprehen community planning process Collective bargaining to."begin with three locals fire, police, outside Anticipates one year deferral of pension obligations while reforms are established Increased emphasis on asphalt maintenance, storm drainage and snow removal rj l Planning and Development Community Planning Service Municipal Plan with completion of Growth Management Strategy Action Plan to implement recommendations from Ircha Report Assess move to monthly meetings for PAC and HDB Development Policies completed for —Sandy Point Rd., Fairville Blvd. Development Advisory and Approval Service Revamp of Development Incentive Programs Infill, Heritage, Upper Floors Planning Application Fees will be revised to better reflect costs 1 6 1 Leisure Services Neighbourhood Improvement Support and Social Development Service Completion of Recreation Infrastructure, Programming and Facilities Study Increase in number of playground programs Initiate two special recognition events for community partners Expand partnership with Pro Kids Maintain commitment to priority neighbourhood grant program Sport and Recreation Facilities Service Enhanced scheduling and maintenance of facilities Gap analysis to be conducted on sport and recreation infrastructure needs Review scheduling guidelines and fee structure.to maximize usage Parks and City Landscape Service Develop partnership agreements for shared green space (Dist. 8) Tree Planting —City reforestation plan with community 'support Trails Master Plan completed for City wide network Park Development Rockwood, Rainbow, Mkt Place West Municipal Operations Increased funding for asphalt and road repairs Purchase of land for snow dump west Increased focus on accessibility'' Additional funding for rental removal equipment Funding for traffic control barriers during flood events Begin contract 'negotiations with;Local 18 Provide additional support for development review tllppurc v ll process Building and Inspection Services Bylaw Service Conduct 1100 enforcement inspections (Dangerous and Unsightly, Minimum Standards) Inspection and Enforcement Service Advocate with PNB for legislative changes to more effectively address derelict buildings Asset Management Service Energy Management initiatives will reduce costs by an additional $250,000 Barrier Free Audits of City owned facilities with necessary improvements Upgrading of existing recreational facilities (capital) Fire Services 2 7 2 Contract negotiations to begin with IAFF Local 771 Absorbed levy for the Presumptive Cancer Legislation Further develop community and industrial partnerships Review of service fees will be undertaken Fire Prevention Service Create more robust capacity in fire inspection to address derelict buildings Technical Rescue Service Extension of internal training programs including confined space rescue Police 3 8 3 Crime Reduction Service Continued implementation of Intelligence Led Policing initiative Maintaining Community Policing programs in four priority neighbourhoods Law Enforcement Service Automatic Vehicle Locators installed in patrol units Use of CCTV for investigative and surveillance purposes Negotiation of new collective agreement with CUPE Local 61 Finance Department Development of a multi -year debt management p Revenue generation initiative to continue Support for Pension Reform process Initiate Tangible Capital Asset Reporting. Implementation of Public Sector Accounting Standards Economic Development Economic Development Service Tourism Implementation of DMO public /private partnership Industrial Parks Capital investments to ensure, available inventory of sites Waterfront Development•- Pugsley Park, Harbour ..passage Enterprise SJ Workforce development program, Strategic Plan gilt;+ fi Administrative Service =t� 1mplerentation of new customer service response system Finalize pension reform model ;Y Initiate coordinated intergovernmental re lations program legislative, finance, pension Develop plan to respond to Access to Information Legislation 2011 New Human Resource policy frarnework to be introduced Roll out new Website Grant Support($) ts;,. 275 Celebrations year Long Hosting Acadian Games June Francophonie Celebration March Neighbourhood.Development Program December 30, 2009 His Worship Mayor Ivan Court and Members of Common Council Your Worship and Councillors, Re: 2010 General Fund Operating Budget and Capital. Introduction uur A municipal budget is meant to be a plan of action expressed in numbers: It defines the commitments and priorities of the elected Council for their cornmwiity; The purpose of this report is to lay out the plan of action inherent the attached budget documentation for 2010 and to highlight some of the issues and challenges facing the community in the months and years ahead. The framework for the 2010 budget is built around Council's stated priorities for the community and a need to strategically position the City for the future. ,The additional emphasis given to specific programs and services and the prioritized capital investments contained in the budget reflect these two objectives. ',Preparation of the budget included consideration of the results of the community survey, the points raised during the ward meetings; the input from the staff survey, and the specific council referrals during the past year Three common themes readily emerge namely; the need for improved roads, solutions to the drainage problems experienced across the community, and a desire for better recreation services. These priorities are addressed in the context of Council's expressed objective of maintaining or reducing the property tax rate during their term of office. Short-term objectives cannot be allowed to compromise the long -term financial position or strategic interests of the City. Positioning for the future requires a multi -year time frame as part of our financial planning and a long -term perspective when considering the merit of individual capital investments. This approach will help to avoid an unsustainable debt burden, prevent tax rate shock and ensure that sufficient flexibility exists in the future to respond to new challenges and take advantage of emerging opportunities. 1 9 Sound debt management, affordable wage and benefit costs, a new community plan, a focused intergovernmental relations program, a stable and sustainable tax rate and a move to a service -based budgeting approach are elements that will contribute to this objective. Budget in Brief The proposed 2010 General Fund operating budget totals $134,198,240 which represents a $7.2M or 5.72 percent increase over 2009. These program expenditures are funded from property taxes (78%), transfers from the Province of New Brunswick (14.5 and Non -tax revenues from fees, fines, service charges etc. (7.5 It is important to note that as the provincial transfer payments have remained at the same level for several years, the City must of necessity rely more and more on property tax revenues to fund needed services and inflationary cost increases. The proposed budget provides increased resources for contracted asphalt repairs as part of a three year program to increase funding from $2.0M per year to $3 per year and also includes an additional $250,000 for ongoing asphalt maintenance work. The asphalt budgets will 'continue to increase in future years. An amount of $756,500 is included to fund the development of a new community plan for the City. This is a legacy project that will directly influence the character and development of the community for decades to come. The Leisure services budget will increase by almost 5.0 and will allow for additional funding for neighbourhood centres, a new focus on developing green spaces and trails within the City, a larger commitment to the Pro�klds•progra,m and additional staffing for recreation programs. Programs beyond traditional municipal services are important to the overall development of the community and funds haSe therefore been included to; assist the Arts and Culture Board ($80,000) k fund the 225 Original City project ($150,00,0)1 host the 2010 Jeux de l'Acadie,($20,000) ,1m maintain the Neighbourhood Development Program ($150,000) provide assistance to Non- Profit Housing projects ($25,000) support the UNBSJ capital campaign ($200,0000 develop the Loch Lomond Community Centre ($45,000) sustain a number of festivals (Jazz and Blues /Salty Jam $20,000, Festival de la Bale Francaise $5,000,:Fundy Bay Festival $7,500, South End Days $1,000) contribute to Saint John Theater Arts ($10,000) operate the Cherry BrookZoo ($60,000) The municipal tax rate remains at $1.785 per $100 of assessment. The rate suggested in the Provincial Government's so- called accountability mechanism is simply unattainable. Fixed costs for such items as rent for City Hall, common area charges for Market Square, charges for property assessments etc. have increased by over $1.65M alone. Contracted wage increases will absorb an additional $2.OM while pension funding obligations will take up another $563,000. A high level breakdown of the sources and allocation of the new revenues available in 2010 is included in Appendix XX. The number of personnel employed by the City is a key factor in our cost of operations as well as our ability to provide quality services. The Establishment for 2010 is proposed to increase by 2 positions over 2009 from 680 (excluding police) to 682. In one instance a contract position will be converted to a 2 10 full time position at a lesser overall cost to the City and in the other instance a Tong -term casual administrative position is being recognized as a permanent position. The City is also making a transition to a service based budgeting approach during 2010. A service based approach better links the resources and level of effort committed to a particular service with the outcomes actually achieved. Once fully implemented, Council will be able to make better expenditure decisions based on desired service outcomes. The attached budget documents are presented in the traditional departmental format. Detailed service based information including service delivery plans and budget allocations have been prepared for all city services and this new format will be presented to Common Council in early February to allow for a comprehensive review. Council Priorities Common Council has agreed upon a series of expliedt. priorities for the community. Some will require multi -year commitments in the capital budget (Wastewater treatment) and others can be addressed more rapidly in the annual operating budgets (Volunteer recognition). Included within the various departmental and service budgets is provision for a nurnber of. these initiatives:. The 2010 budget is directed at making progress on four .particular priorities anew community plan road resurfacing, improving recreation services and storm wtermanagement: Community plan development of the new community plan is a :key. priority that will have significant implications for the nature, location and pattern of future development.in our community for years to come. This is the first, year of :a two year planning .exercise: that will involve extensive community consultation. The budget, includes $756K in new funding to engage the required expertise, open a store front office, conduct the: required research and undertake the community consultations. A growth strategy for the community and sub -plans for the Sandy Point Road and Fairville Blvd areas will be completed by yearend. Roads Street maintenance has been identified as:an area of concern by the community. Council has adopted a policy goal for improving road conditions based on a target Pavement Condition Index (PCI) of 70. The policy anticipates increased efforts in localized repair, preventative maintenance and major rehabilitation or reconstruction. The budget to purchase asphalt for localized repair (safety) has been increased from $455K to $700K With .a two year goal of reaching $1.OM. The budget for maintenance resurfacing asphalt purchases currently at $2.1M is being increased by $330,000 to $2.43M. This is the first step in a three plan':ta achieve:a" funding goal is $3.1M annually by 2012. Additional funding of is included in the capital budget for major street reconstruction projects. Recreation periods of restraint have meant that the resources committed to recreation and parks programs and facilities have diminished noticeably in the past decade. Council is committed to re- investing in both infrastructure needs and improved programming. In 2010 it is anticipated that Leisure services will complete a community centre master plan to guide future investments, the summer playground programs will be enhanced with particular attention given to the priority neighbourhoods, two special recognition events will be held for our community partners and volunteers, funding for Pro kids will be increased to increase opportunities for youth to participate in activities of their choice, scheduling and maintenance of sport and recreation facilities will be revised, targeted improvements to 3 11 green space including tree planting and initiation of a City wide trail network will begin. The capital budget will also include provision for renovations to the Carleton and North End Community Centre as well as improvements to Rockwood Park and Shamrock Park. Storm Water Management changing weather patterns, aging infrastructure and increased development have each contributed to a series of neighbourhood flooding issues. These floods impair property values, increase insurance claims, destroy personal belongings and impair citizen's quality of life. Council has directed that action be taken to find solutions to these flooding 'hot spots'. Developing effective solutions requires careful analysis to avoid worsening a situation or just moving the problem downstream. The 2010 operating budget provides $3.4M for the ongoing storm water maintenance program across the City and the capital budget provides funding 'for 14 projects in the areas most affected. Departmental Initiatives in addition to meeting their day to day service objectives each departmental budget includes initiatives that will either contribute or accomplish one or more of the full range of Council identified prioriti A brief listing is set out in the attached budget summary (Appendix XX). It is anticipated that a mid year report card will be issued on progress and a similar report outlining achievements at year.etid. Positioning for the Future The policy decisions and administrative actions taken today :can and will impact the future operations of the City. This budget contemplates a number Of specific actiions,that will help to ensure that the City will have the resources to. grow and p'rx sper in the'future. without imposing an undue tax burden on the homeowners and businesses,in our community. i Spending caps the 2010 operational. funding requests from the Fire and Police departments exceeded 44.4 million dollars compared ta$42,2 million in 2009. Arbitrated /negotiated wage increases account for the vast majority of the additional�b'udget request$: The rate of increase is simply unsustainable over the long -term and will compromise our,ability to provide other need services if left unchecked. In fact, the rate of growth in both departments has;far.outstripped the rate of inflation since 2002. New approaches to service delivey.rnust be identified and implemented. The 2010 budget reduces the respective departmental .requests Eby $250,000 or about 1% each for the coming year and calls for spending caps of 1% to be imposed in each of 2011 and 2012. This approach will provide each department with certainty ask, future funding levels and a 12 month window to develop business plans to allow them to operate within these funding levels. Even at these funding levels, fully one third of the 2010 operating budget will be applied to fire and police services. The current rate of attrition /retirement in both areas should preclude the need for layoffs during this period. Given that both the Fire and Police departments will begin new rounds of collective bargaining in 2010 there is a real opportunity for the representatives of Locals 771 and 61 to demonstrate leadership in addressing the financial challenges. 4 12 The cost of supporting the public transit system has also grown considerably in recent years. The 2010 budget provides an additional $994,000 in funding to subsidize operations and support new capital debt retirement. The need for public transit is real and the merit of the program is beyond question, however, the level of service provided must be commensurate with our ability to pay. It is proposed that the level of funding support in 2011 and 2012 also be capped at a 1% annual increase from the 2010 level. This will provide an opportunity for the Transit Commission to carefully evaluate routes, rates etc. during the coming year in order to adjust to the specified funding limits. Pension Reform the City as the plan sponsor has undertaken a structural review of the pension plan with Morneau Sobeco and has begun a consultation process with the beneficiaries of the plan and the Pension Board. The City as the plan sponsor has a legal obligation to make the required plan contributions. The fact remains that the plan is underfunded and the long -term funding requirements of the current plan cannot be met by the City without a substantial tax, hike. The City has benefited from a supplementary contribution of 2 percentof from all employees for the past 3 years. This arrangement concludes in April 2010. The 2010 budget includes an additional $563,000 to offset the return to normal contribution levels of 8.5% of salary. Based on the best current information it is estimated that the City's contribution to the pension plan would have to increase by another $1041M•in 2010 in orderto fund the going concern deficit under the current plan provisions. The 2010 budget is 'predicated on obtaining a one year deferral for this supplementary funding while the reforrn;process•is underway: The pension funding mechanism is complex and involves not only funding levels but also: a series of long -term actuarial assumptions, investment policies, provincial' arid federal statutory requirements and benefit levels. The outcome of these discussions is uncertain at the.tnoment. Sifnply put it would be premature to force a contribution of such a large sum to the:plan, based 'on the current.plan provisions, when the reform process should actually result in a substantially smallei amount being 'paid into the fund. The ability to se one year deferral is critical to tli'e overall 2010 budget process. The alternative is an approximate 18 cent tax hike or.a.$10 -i1 million .reduction in services. Neither option is realistic and the severity of both consequences underscores the need for definitive action in reforming the pension plan. That Said the outcome ofthe pension reform discussions cannot be left to proceed indefinitely. In order for a deferral request to b'.given serious consideration by the regulatory authorities, it will be necessary to tablea reform package with the Provincial legislature this fall. Both the pension reform process and securing the needed deferral will require the active political support of the local MLAs. Debt Management the proposed budget includes $13.15 million in annual payments to retire the City's debt obligations. The current level of debt is well within established guidelines however the current level of capital expenditure is such that it could drive these costs up significantly in future years. Money spent on debt is not available for programs and services. The 2010 plan includes the development of a revised multi -year debt management policy to determine our borrowing capacity in the next decade. This in turn will establish our ability to make needed capital investments. The demand for investments will always outstrip our ability to pay and it will be necessary to prioritize these expenditures in order to provide the greatest value to the community. 5 13 Service Based Budget Our citizens and ratepayer have repeatedly expressed their desire to have municipal services delivered in a more effective and efficient manner. The City has adopted an Accountability Framework that aims to create a strong focus on results. It will establish clear outcomes for all services and focus on continuous improvement and measuring and reporting on actual results. Service based budgeting is an essential component to the development and implementation of an effective accountability framework. It is an integrated annual performance plan and annual budget that shows the relationship between funding levels and expected results on a service by service basis. Performance Management inherent throughout the various program budgets is a commitment to introduce a corporate wide performance assessment system. From a human resource perspective, performance reviews will be instituted for all managers and employees during the course of 2010. From an operational perspective performance objectives and targetswill be set for the key service areas and a measurement and reporting system implemented. The purpose is twofold; first to identify gaps or needed improvements in order to address them on a timely basis, second to ensure that the services we offer and the individual efforts of our employees are aligned with the City's strategic goals, objectives and priorities. Reorganization in order for the City, as a public .service organization, to function efficiently and effectively we need to have a clear sense of common 'purpose, be properly structured and well organized and be adequately resourced with the right people with the right skill sets. The City has in the last two years developed a vision statement, established long -term goals and priorities and Common Council has since identified a series of specific actionsthat are to be undertaken as part of its mandate. What must be done is clear. How we are organized in order to achieve these priorities and meet our service objectives must be revisited. A number of actions are planned for the coming year to better position the City to become a high •performance.'organizatiion with a commitment to service excellence. The budget impact in 2010 will be insignificant however the way we do business will change as roles, responsibilities and reporting relationships are adjusted. Intergovernmental Relations the 'City is in many ways. not the master of its own destiny. The City derives. its. legislative authority from the Province, is dependent on the Province for annual funding support, Must accommodate new policing or work place standards set by the Province and must adjust its capital spending priorities to align with ever changing federal /provincial infrastructure initiatives to highlight but a few areas where the relationship with the Province is critical. The City will be proactive in its approach to ensure that the needs and interests of the City of Saint John are well communicated and adequately addressed by the other levels of government. Economic Development the. City invests heavily in a range of economic development initiatives. Operating funds for Enterprise Saint John, the Trade and Convention Centre, the new Destination Marketing Organization, the Waterfront Development Committee, the Regional Facilities Committee, and Saint John Industrial Parks are all part of this commitment. Enterprise Saint John is committed to developing a new multi -year strategic plan. A new municipal plan will also contribute a comprehensive policy framework to support 'good' development practices. Other City departments also have a direct responsibility to facilitate economic development activity through sound policy development and active support of various development initiatives. The City will develop a more coordinated and responsive approach to support major development projects by working with and through the various agencies already in place. 6 14 Revenue Generation the City depends on property taxes as its one key source of revenue and a transfer payment from the Province as its second most important source. The limited range of revenue sources and the fact that we are vulnerable to changes in provincial policies or funding allotments makes the need for identifying and generating alternative sources of revenue a priority. A Council committee is working with the Commissioner of Finance to develop viable alternatives. This is a longer term initiative that may result in the need for changes in provincial legislation and /or forward thinking policy decisions on the part of Council. The need for new, reliable revenue sources also underscores the importance of generating new investment in the community in order to generate new wealth. Citizens and City Hall The City operates to provide services to its citizens. Citizens should have .a good understanding of what is being done, why it is being done and how miich it is costing them. They must also have an opportunity to interact with their elected representatives and the people 'who administer and deliver the various services they rely upon. It is equally important that the leadership.in the organization be aware of and fully understands the needs and priorities of the community. A number of initiatives that will provide opportunities for better communication between the citizens and city hall are planned for the coming year. Community Survey the City will again conducts formal Citizen Survey at mid -year to help determine needs and priorities and to assist in assessing how well our services respond to community expectations. Ward Meetings meetings in each of the four wards will be scheduled for April /May to permit citizens to raise their ideas /issues /concerns directly with their ward councilors. Senior staff will be available at these meetings to respond, to immediate concerns and to take note of the various matters that are brought forward Enhanced External Communication the City now has 'a fully staffed communication unit in place. Much of the effort of this unit to date has centered on staffing, developing internal practices and procedures and providing tactical communications support to various services and events. In the coming year a greater emphasis will be placed direct to citizen /stakeholder communication. This will involve the introduction of at least three direct mailings to Citizens /Ratepayers to provide greater details on the City's Programs and Services and stronger strategic messaging on the role that the City plays in moving our community forward: New Website more and more citizens and businesses are relying on the internet as not only a source of information but also a means of transacting business. The City will be completely revamping its website to make it more informative, more interactive, more functional and more user friendly. The new website should be online by June of 2010. Customer Service the feedback we receive from citizens clearly underscores the need to improve our ability to respond to their inquiries and requests for service. This is not simply a matter of improving the way we answer telephone calls. Our Citizens want to see results from their requests. The challenge is that the City has multiple departments, operates from multiple locations, and offers dozens of programs 7 15 and services making the tracking of frontline service delivery an ongoing challenge. A new customer service model will be introduced in 2010 that will ensure that requests for service are easily directed to the area of our organization where responsibility for action resides and are responded to in a timely manner. Issues and Uncertainty The City operates in a dynamic political, social and economic environment. As much as plans and priorities can be laid out at the beginning of a year, rapidly changing events beyond the control of the community and just as likely new opportunities will arise that may necessitate changes in direction. Some of the more significant issues on the horizon that Council should be aware are set out below. Collective Bargaining the City will begin the collective bargaining process with three locals (CUPE Local 61, CUPE Local 18, IAFF 771) that together represent approximately 600 employees. The results of these negotiations will impact our cost structure, our ability to provide quality services, our effectiveness and our efficiency as an organization. Finding a healthy balance that balances the best interests of the community with the economic interests of the respective employee groups will be .a challenge. Pension Reform as noted earlier in this report the need for Meaningful pension reform is absolutely essential. What form that takes is not as'iniportant as that it eliminate the financial burden on the plan sponsor ie the City. This is a complex issue and there are a multitude of parties that are or will be involved in the reform process (employees, retirees, pension Board, Council, MLAs, actuaries, provincial officials) and their obligations and interests are not the same. Concrete action is required and success will depend largely on determined leadership, cooperation and compromise. 1 163;1 #a 17. Provincial Funding Support the City must of necessity rely on funding support for both day to day operations and major projects. The City's ability to pursue certain capital projects will depend heavily on the Provinces ability and willingness to support: various initiatives that are presented. A coordinated approach to seeking funds will be essential'for success. Provincial Election a provincial election is scheduled for the fall of 2010. Regardless of the outcome, new priorities, changing policies,. new initiatives can be expected to result. These changes may present timely opportunities or new challenges for the City before the end of the year. Common Council will have a key role to play in advancing the communities interests as the election process unfolds. Human Resources the City currently employs approximately 800 people (including police). A recent review has indicated that over 125 employees will be eligible to retire within the next three years. On the one hand this presents an enormous challenge in that a range of experience and corporate knowledge will leave the organization. On the other hand, it will offer the City a real opportunity to attract new talent with different skill sets to the organization that will help us to better respond to the needs and issues of the future. A greater emphasis on human resource matters will be a necessity in the future. 8 16 Capital Budget The infrastructure needs of the community have been well documented. Beyond the recurring needs for spending on roads, pipes, vehicles and buildings there are also strategic investments to be considered that could serve to brighten the economic prospects of the community or enhance the overall quality of life for our citizens. The capital submissions for 2010 exceeded 50 million dollars. The reality is that our ability to pay for these projects is limited both by our access to borrowed money and our ability to repay debt without imposing an unduly high tax rate. The proposed 2010 capital budget of $XX,000,000 focuses on projects that address public safety, projects where co- funding is available from other sources, completion of projects currently underway, projects that will yield a positive economic return to the community, projects to resolving drainage issues, projects for road reconstruction and those targeted at upgrading recreational infrastructure. A detailed listing is provided in Appendix XX for Council's consideration. Conclusion The 2010 budget represents a deliberate effort to address Council's identified priorities while acting in a fiscally responsible manner. The budget attempts to balance the need for investments in social, cultural, and development initiatives with the need for quality and reliable recreation, road, fire and police services. A stable tax rate, controlling future expenditure commitments, sound debt management, forward looking land use planning, and supporting good economic development are ingredients in building a positive future for our community. Recommendations It is recommended that Common Council approve the 2010 Operating and Capital budgets for the General Operating Fund and adopt the following resolutions; Tax Rate Budget Capital Establishment Fire Police BIA Respectfully submitted, 9 17 J. Patrick Woods CGA Acting City Manager 10 18 PROPERTY TAX REVENUE UNCONDITIONAL GRANT NON -TAX REVENUE MARKET SQUARE REGIONAL FACILITIES CITY HALL PROPERTY ASSESSMENT INSURANCE PENSION FISCAL CHARGES CITY OF SAINT JOHN 2010 BUDGET TOTAL REVENUE FIXED COSTS TOTAL FIXED COSTS Operational Funds Available DEPARTMENTISERVICE FIRE EMERGENCY MANAGEMENT SERVICE LEISURE SERVICES BUILDING INSPECTIONS AREA PLANNING MUNICIPAL OPERATIONS LEGISLATIVE GENERAL ADMINISTRATIVE (City Manager, Corporate Planning, Communications, Common Clerk, Finance and Legal) CORPORATE SUPPORT (Materials Management, Human Resources, IT and Fleet) CULTURAL AFFAIRS OFFICE WATER SUPPLY HYDRANTS STREET LIGHTING TOTAL DEPARTMENTS ABC'S POLICE PSCC ENTERPRISE SAINT JOHN TRANSIT COMMISSION- Operating Property Tax Issue TRANSIT COMMISSION -Debt SAINT JOHN DEVELOPMENT CORP WATERFRONT DEVELOPMENT SAINT JOHN INDUSTRIAL PARKS LTD DESTINATION MARKETING ARTS AND CULTURE BOARD 2010 2010 2009 BUDGET BUDGET BUDGET Request Adjusted change REDUCTION fr 2009 FROM to 2010 REQUEST Adjusted 98,306,534 104,621,717 104,621,717 0 19,499,823 19,499,823 19,499,823 0 9,133,592 10, 076,701 10, 076, 701 0 126,939,949 134,198,241 134,198,241 0 5.72% 103,654,694 109,253,787 109,207,227 (46.560) 5.36% Budget includes increase in arena fees -will need Council's approval Advertising al arenas not included -Report going to Council on Planning is doing review of fees 1,992,535 1,992,360 1,992,360 0 -0.01% 1,496,045 1,599,014 1,599,014 0 6.88% 1,480,015 1,573,460 1,573,460 0 6.31% 1,101,474 1,172,232 1,172,232 0 6.42% 670,000 737,000 737,000 0 10.00% Estimate 10% increase 4,160,384 4,723,000 4,723,000 0 13.52% Loss of Employee Contributions No deficit funding 12,384,802 13,147,388 13,193,948 46,560 6.53% 23,285,255 24,944,454 24,991,014 46,560 7.33% 20,352,440 21,564,879 21,268,240 (296,639) 4.50% Freeze to 1% in 2011 2012 ($19.29 M is Wages for 2010) 308,936 322,838 320,000 (2,838) 3.58% 6,908,732 7,268,761 7,243,761 (25,000) 4.85% 3,956,188 4,068,226 4,050,000 (18,226) 2.37% 2,209,545 2,926,692 2,920,000 (6,692) 32.15% Includes funding for Municipal Plan Includes extra $330,000 Asphalt $210,000 Storm Sewer Charges 22,296,248 23,509,579 23,690,000 180,421 6.25% other reduction or $150,000 785,113 785,196 785,200 4 0.01% 5,096,345 5,150,468 5,112,300 (38,168) 0.31% $30,000 extra for Legal Services plus reduction to others of 550.000 Increase position and short in 2009 Material Mgml Fleet increase 5,125,497 5,512,228 5,355,950 (156,278) 4.50% plus reductions of $150,000 106,758 111,562 110,000 (1,562) 3.04% 2,250,000 2,300,000 2,300,000 0 2.22% 1,000,000 1,000,000 1,000,000 0 0.00% 70,395,802 74,520,429 74,155,451 (364,978) 5.34% 21,935,041 22,922,689 22,672,700 (249,989) 3.36% Freeze to 1% in 2011 2012 ($18.65 M is Wages for 2010) 2,165,982 2,231,000 2,231,000 0 3.00% 427,319 432,748 432,750 2 1.27% 4,242,921 4,776,050 4,751,050 (25,000) 11.98% Freeze 10 1% in 2011 2012 (300,000) (300,000) 0 Tax Assessment Appeal Necessary 774,529 1,559,439 1,559,439 0 101.34% 175,000 175,000 175,000 0 0.00% 105,000 105,000 105,000 0 0.00% 315,000 322,875 322,875 0 2.50% 1,000,706 1,000,706 1,000,706 0 0.00% Actual Allocation to be determined 80,000 1 §1],000 80,000 0 0.00% 1/6/2010 CITY OF SAINT JOHN 2010 BUDGET PARKING ADMINISTRATION ANIMAL PEST CONTROL TOTAL ABC'S COMMITTED change 2010 2010 REDUCTION fr 2009 2009 BUDGET BUDGET FROM to 2010 BUDGET Request Adjusted REQUEST Adjusted 478,654 527,817 527,817 0 10.2714 143,850 162,693 163,000 307 1131% 31,844,002 33,996,017 33,721,337 (274,680) Arts and Cultural NB ARTS BOARD (PUBLIC ART RESERVE 25,000 25,000 40,000 15,000 60.00% Increase $15,000 for maintenance to Art CULTURAL CAPITAL 75,000 150,000 150,000 0 100.00% IMPERIAL THEATRE CAPITAL CAMPAIGN 25,000 25,000 25,000 0 0.00% NEW YEARS CANADA DAY 15,000 15,000 0 REMEBRANCE DAY CEREMONY 2.000 2.000 Committed -Arts and Cultural 125,000 215,000 232,000 17,000 Social Development LIBRARY 409,190 433,233 433,233 0 5.88% SENIOR CITIZENS CENTER free rent) 31,000 31,000 31,000 0 0.00% HUMAN DEVELOP COUNCIL(rent 8,000) 48,000 48,000 48,000 0 0.00% P.R.U.D.E. free rent) 22,000 22,000 22,000 0 0.00°A NEIGHBOURHOOD DEVELOPMENT 150,000 150,000 150,000 0 0.00% KEY INDUSTRIES 30,000 30,000 30,000 0 0.00% NON PROFIT HOUSING ASSISTANCE PROGRAM 25,000 25,000 25,000 0 0.00% NB HISTORICAL SOCIETY (Loyalist House) 14,000 14,000 0 SAINT JOSEPH HOSPITAL FOUNDATION 25,000 25,000 0 LOCH LOMOND COMMUNITY CENTRE 45,000 45,000 0 UNBSJ CAPITAL CAMPAIGN 200,000 200,000 200,000 0 0.00% Committed Social Development 915,190 1,023,233 1,023,233 0 Sports and Recreation LORD BEAVERBROOK 140,700 145,000 145,000 0 3.06% ACADIAN GAMES 2010 25,000 20,000 20,000 0 20.00% Committed-Sports and Recreation 165,700 165,000 165,000 0 TOTAL COMMITTED 1,205,890 1,403,233 1,420,233 17,000 17.77% OTHER Arts and Cultural SYMPHONY 10,000 5,000 (5,000) VIVO SYMPHONY NB FOUNDATION 25,000 0 (25,000) OPERA NB 6,000 3,000 (3,000) SAINT JOHN THEATRE ARTS 10,000 10,000 10,000 0 0.00% SAINT JOHN THEATRE CAPITAL SETTING THE STAGE 25,000 0 (25,000) LOYALIST FESTIVAL 3,000 0 0 JAZZ AND BLUES /SALTY JAM 15,000 25,000 20,000 (5,000) 33.33% FESTIVAL DE LA BAIE FRANCAIS 5,000 5,000 5,000 0 0.00% OTHERS 60,000 0 MINDCARE NB 10,000 5,000 (5,000) FUNDY BAY FESTIVAL 5 000 7,500 (7,500) PAVILION CUP 2a 5,000 5,000 1!6/201( CITY OF SAINT JOHN 2010 BUDGET change 2010 2010 REDUCTION fr 2009 2009 BUDGET BUDGET FROM to 2010 BUDGET Request Adjusted REQUEST Adjusted NB DAY PARADE 0 0 OLYMPIC TORCH 10,000 0 0 0 CANADA NEW ENGLAND CRUISE SYMPOSIUM 0 0 TWIN CITY MEETINGS 5.500 5,500 Arts and Cultural 103,000 131,000 66,000 (65,000) Social Development SENIOR'S RESOURCE CENTRE 3,000 3,000 WOMEN'S WELLNESS 5,000 2,500 (2,500) SAINT JOHN REGIONAL HOSPITAL FOUNDATION 50,000 0 (50,000) ABILITY ADVISORY COMMITTEE 3,000 3,000 3,000 0 0.00% SEAFARER'S MISSION 1,500 1,500 1,500 0 0.00% YOUTH 1,500 0 0 0 ANIMAL RESCUE LEAGUE 127,000 0 (127,000) HOSPICE 10,000 0 0 0 CRIME STOPPERS 1,500 0 (1,500) THE ST. JOHN REIVER SOCIETY 25,000 5,000 (20,000) YMCA 10,000 0 (10,000) MULTICULTURAL ASSOCIATION OF SAINT JOHN INC 0 0 INTERNATIONAL POLICE ASSOCIATION HOSTING CONFERENCE 2010 10,000 10,000 225 EVENTS 15,000 15,000 INTERNATIONAL FRANCOPHONE DAY FESTIVITIES 2,500 2,500 Social Development 16,000 223,000 42,500 (180,500) Sports and Recreation SAINT JOHN HORTICULURAL 40,000 60,000 40,000 (20,000) 0.00% CHERRY BROOK ZOO 50,000 150,094 60,000 (90,094) 20.00% SOUTH END DAYS 1,000 1,000 BOYS 5 GIRLS CLUB 1,000 1,000 2010 CANADIAN MASTERS CURLING CHAMPIONSHIP 1,500 1,500 0 Sports and Recreation 90,000 211,594 103,500 (108,094) TOTAL OTHER 209,000 565,594 212,000 (353,594) 1.44% ADDITIONAL FUNDING REQUIRED 0 (1,231,485) (301,794) SUMMARY Total Revenue 126,939,949 134,198,241 134,198,241 0 5.72% Fixed Costs 23,285,255 24,944,454 24,991,014 46,560 7.33% Department/Services 70,395,802 74,520,429 74,155,451 (364,978) 5.34% ABC's 31,844,002 33,996,017 33,721,337 (274,680) 5.90% Committed 1,205,890 1,403,233 1,420,233 17,000 17.77% Other 209,000 565,594 212,000 (353,594) 1.44% Total Expenses 126,939,949 135,429,727 134,500,035 (929,692) 5.96% SHORTFALL 0 (1,231,485) (301,794) 21 Refer to DMO 1/6/201(