2010-12-13_Minutes--Procès-verbalPresent:
Mayor Court,
and
1.1 2011 General Fund Operating Budget Summary
1.2 2011 General Fund Operating Budget and Capital Budget
1
Committee of the Whole Open Session
December 13, 2010
Minutes of the Portion of the Committee of the Whole Meeting Open to the Public
Monday, December 13, 2010, 5:00 p.m.
8 th Floor Boardroom City Hall
Deputy Mayor Chase and Councillors Court, Farren, Higgins, McGuire, Mott, Snook,
Sullivan and Titus.
P. Woods, City Manager; J. Nugent, City Solicitor; G. Yeomans, Commissioner of
Finance; C. Graham, Comptroller; P. Groody, Commissioner of Municipal Operations; K.
Forrest, Commissioner of Planning and Development; B. Morrison, Commissioner of
Leisure Services; B. Edwards, Commissioner of Building and Inspection Services; E.
Gormley, Common Clerk and J. Taylor, Assistant Common Clerk
Mr. Woods explained that under the City Government Act, the City Manager, working in
conjunction with the Commissioner of Finance, is required to prepare the City's budgets. He
noted that there are a total of four budgets for Council to consider: 1) general fund operating; 2)
general fund capital; 3) Saint John water operating budget; 4) Saint John water capital budget.
He further noted that the final stage of the budget process involves Council setting a tax rate
and a water rate for the City of Saint John.
Referring to the submitted 2011 general fund operating and capital budget documents, the City
Manager stated that the specific numbers appearing in the report have not been adjusted or
edited, adding that he will revise the budgets after receiving direction from Council.
Responding to a question, Mr. Woods stated that the deadline for the City to submit its budget
to the Province is December 31, 2010, noting that the Province provides a degree of latitude
with respect to the submission date.
The Commissioner of Finance provided an overview of the submitted budget report, noting that
the general fund operating budget is expected to increase from $134,203,729 to $146,394,190 if
the City is not successful in securing pension plan regulatory relief and legislative reforms from
the Province.
Mr. Yeomans explained that it is anticipated that the city will have $14, 281,414 in fiscal charges
in the year 2011, which he noted translates into a debt service -ratio of 9.76 He explained that
by the year 2013 the fiscal charges are projected at $20,315,290, or a debt service -ratio of 13
noting that the Province recommends a ratio of below 15
2
Committee of the Whole Open Session
December 13, 2010
Responding to a question regarding solid waste collection, Mr. Groody stated that his
department will be submitting a report to Council in the near future with recommended changes
to the solid waste collection program which would result in cost savings.
Mr. Woods stated as a result of the feedback given by Council members, he understands
Council's direction with respect to the proposed 2011 operating budget to be as follows: a
commitment to a 1% cap for the police and fire departments; explore the issue of future
subsidies; examine the assessment process; further details on the City's revenue; examine the
overall overhead administration costs; examine the city's economic development package;
explore earmarking capital money from the operating budget.
Referring to the submitted City of Saint John General Fund report, Mr. Woods explained that
absent the approximate $9,000,000.00 in unfunded pension liability that is owed by the City, the
budget could be balanced. He stated that if the City fails to make payments for the outstanding
funds owed to the pension plan, the Superintendant of Pensions, the Labour and Employment
Board or local government will require the City to pay. He added that the City has sought
regulatory and legislative relief from the Minister of Justice which would decrease the amount
owing to roughly $2,000,000.00.
Mr. Woods outlined the submitted 2011 general capital fund report and he responded to
questions from Council.
Council members directed the City Manager to schedule budget presentations for the Police
and Fire departments, the Transit Commission, and the Commissioner of Planning with respect
to the budget implications of Plan SJ.
Deputy Mayor Chase and Councillor Sullivan moved and seconded a motion for Council to
place a 1% cap on the operating budget for the Police and Fire departments, and the Transit
Commission. The question was not called on the motion as it was noted by Council members
that Council already adopted a resolution earlier in the year which capped the said departmental
budgets to a 1% increase for 2011 and 2012.
Council directed the Common Clerk to schedule a Committee of the Whole open session
meeting for December 18th from 8:OOam 10:OOam to discuss the capital and operating
budgets for Saint John Water.
The Mayor declared the meeting adjourned at 6:45 p.m.
Common Clerk