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2019-07-18 Finance Committee Agenda Packet - Open Session MINUTES OPEN SESSION FINANCE COMMITTEE MEETING MAY 29, 2019 AT 4:50 PM th 8 FLOOR COMMON COUNCIL CHAMBER (LUDLOW ROOM), CITY HALL Present: Mayor D. Darling Councillor D. Merrithew Councillor G. Sullivan Councillor S. Casey Councillor D. Reardon Councillor G. Norton Also Present: Deputy City Manager N. Jacobsen Commissioner of Finance and Treasurer K. Fudge Commissioner Growth & Community Development J. Hamilton Comptroller Finance C. Graham Senior Manager Financial Planning H. Nguyen Commissioner Saint John Water B. McGovern Assistant Comptroller Finance and Administrative Services C. Lavigne Deputy Commissioner Administrative Services I. Fogan Commissioner Transportation & Environment Services M. Hugenholtz Operations Manager Finance & Administrative Services K. Loughery Senior Financial Analyst J. Forgie Administrative Fire Officer J. Hennessy Administrative Assistant K. Tibbits 1. Meeting Called To Order Councillor Merrithew called the Finance Committee open session meeting to order. Moved by Councillor Norton, seconded by Councillor Sullivan: RESOLVED that the agenda of May 29, 2019 be approved with the addition of Item 4.5 Canada Games Aquatic Centre - Reallocation of 2019 Capital Funding. 2. Approval of Minutes 2.1 Minutes of March 13, 2019 Moved by Councillor Reardon, seconded by Councillor Norton: RESOLVED that the minutes of March 13, 2019, be approved. MOTION CARRIED. 3. Consent Agenda 3.1 2019 General Operating Fund Year End Projection That the report entitled 2019 General Operating Fund Year End Projection be received for information. 3.2 2019 Saint John Water Year End Projection That the report entitled 2019 Saint John Water Year End Projection be received for information. 3.3 Safe Clean Drinking Water Project (SCDWP) Reserve Fund That the Finance Committee submit the report to the June 3, 2019 meeting of Common Council with a recommendation to withdraw the Safe Clean Drinking Water Project (SCDWP) Reserve funding in preparation for the upcoming substantial completion payment to Port City Water Partners which is planned to occur in approximately the next few weeks. Moved by Councillor Reardon, seconded by Mayor Darling: RESOLVED that each of the consent agenda items be adopted. MOTION CARRIED. 4. Business Items 4.1 2018 Consolidated Financial Statements and Trust Fund Financial Statements Mr. Lund and Mr. Mallais, Deloitte, reviewed the 2018 audited consolidated financial statements, trust fund financial statements, and the special purpose audit for the Trade and Convention Centre and expressed a clean audit opinion. Responding to a question regarding fraud risk, committee members confirmed that they are not aware of any known instances of fraud. Ms. Nguyen reviewed the 2018 Consolidated Financial Statements. The City continues its effort to control debt. The General Fund debt balance has been reduced by $5.5M and investment in capital reserves has been increased to reduce the amount of borrowing required. To mitigate future financial risks, the City is developing a 10-year financial plan to be completed in 2019. Moved by Councillor Sullivan, seconded by Councillor Norton: RESOLVED that the Finance Committee recommend that Common Council approve the City of Saint John Consolidated Financial Statements, the Trust Fund Statements of the City of Saint John, and the Trade and Convention Centre Financial Statements for the fiscal year ended December 31, 2018. MOTION CARRIED. 4.2 2018 State of the Infrastructure Report Mr. H. Arisz, RV Anderson and Mr. S. Yammine, Asset Manager reviewed the submitted report The report is asset management plan and encourages and supports evidence based decision making. Mr. Yammine stated that the report identifies the capital investment required to maintain the current level of services. It provides evidence based data to identify the amount of investment required, where it is required, when the asset needs to be replaced, risk to the organization and community if not replaced, impact to the level of service, and document is a tool to be used in the preparation of the capital budget. quality is still not perfect and results should be interpreted cautiously data completeness is considered to be very high while data accuracy is considered to be moderate. The current asset inventory is $2.7B with a $435M infrastructure deficit and $579M of replacement costs required over the next 10 years. The City is underfunding its infrastructure assets by a 43% funding ratio. There are $97.3overall infrastructure score is a B- which is considered . Infrastructure requires attention and corrective action. Moved by Councillor Sullivan, seconded by Mayor Darling: RESOLVED that the 2018 State of the Infrastructure report be received for information. MOTION CARRIED. 4.3 2020-2021 General and Utility Capital Budgets Mr. Fudge stated that the 2020-2021 General and Utility Capital Budget is the first draft multi- year capital budget and is evidence based, using the asset management plan, capital budget policies and priorities of Council in its preparation. Mr. Lavigne noted that the capital budget focuses heavily on assets that are at the highest risk of failure and beyond its useful life, with a majority of asset replacement having a letter grade -year capital budget for 2020-2021 is slightly under $42M with the at approximately $20M over two years. Projects focus on climate change, supporting growth, and the infrastructure deficit. Mr. McGovern presented the 2020-2021 Utility Fund Capital Budget which is approximately $26M over two years. The infrastructure deficit for the utility is approximately $300M. Staff attempts to leverage s by seeking funding from other levels of government whenever possible. The focus is on reducing debt accumulated as a result of Harbour Clean-Up and the SCDWP. The budget invests into infrastructure renewal which is necessary given the high infrastructure deficit. In response to a question, Ms. Hamilton stated that the capital budget process has been a collaborative approach with consideration given to the growth perspective. It is recognized that capital budget dollars must be used strategically to drive the growth agenda. Investments have been set around key projects to leverage growth in the community. (Councillor Sullivan withdrew from the meeting) Moved by Councillor Reardon, seconded by Councillor Norton: RESOLVED that the 2020-2021 General and Utility Capital Budgets be received for information. MOTION CARRIED. 4.4 Greening Our Fleet Policy Mr. Loughery noted that the Greening Our Fleet Policy will help the city reduce its greenhouse gas emissions and contribute towards the long term goal of becoming carbon neutral. The policy includes all of the Cimotorized equipment and addresses such areas as engine warm up periods, reduction of idling times, and taking the most direct and safe route. There will be situations in which conditions are not conducive for the implementation of the policy such as the performance of equipment maintenance, extreme weather conditions, mechanical problems, and emergency situations. Audits will be conducted periodically to ensure compliance to the policy. RESOLVED that the Finance Committee recommends that Common Council approve the submitted City of Saint John Greening Our Fleet Policy Statement FAS-010. MOTION CARRIED. 4.5 Canada Games Aquatic Centre Reallocation of 2019 Capital Funding Mr. Fudge explained that a request was received from the Canada Games Aquatic Centre to reallocate some of the 2019 capital budget. The CGAC received some funding from the federal government and are requesting reallocation of funds for projects directed towards reducing energy and water consumption. Based on the capital budget policy, it is within authority to allow a surplus to be reallocated to another use. In response to comments regarding the re-allocation of funding when money has been successfully leveraged elsewhere, Mr. Fudge stated that there are criteria in the capital budget policy that the money must be put towards infrastructure deficit or be conducive to growth. In this instance the business case supports reduced energy consumption. Moved by Mayor Darling, seconded by Councillor Reardon: RESOLVED that the Finance Committee recommend that Common Council approve reallocating $28,000 capital funding to the Canada Games Aquatic Centre from the accessibility lift project to two projects, motion detection lighting and flow monitors. MOTION CARRIED. Adjournment Moved by Mayor Darling, seconded by Councillor Reardon: RESOLVED that the open session meeting of the Finance Committee be adjourned. MOTION CARRIED. The Finance Committee open session meeting held on March 13, 2019 was adjourned at 6:05 p.m. FINANCE COMMITTEE REPORT Report Date July 15, 2019 Meeting Date July 18, 2019 Chairman Councillor Merrithew and Members of Finance Committee SUBJECT: Public Consultation Budget Simulator Results OPEN OR CLOSED SESSION This matter is to be discussed in open session of Finance Committee. AUTHORIZATION Primary Author Commissioner/Dept. Head City Manager Jodie Forgie/Nancy Kevin Fudge John Collin Moar/Stephanie Rackley-Roach RECOMMENDATION It is recommended that this report be received and filed. EXECUTIVE SUMMARY The purpose of this report is to provide the Finance Committee a summary of the results from the Public Consultation that was performed using a Budget Simulator. PREVIOUS RESOLUTION N/A STRATEGIC ALIGNMENT This report aligns with being fiscally responsible and providing valued service delivery by identifying themes for potential service level adjustments that will be used as one method to inform the ten year long term financial plan. - 2 - REPORT Background On March 25, 2019, the City of Saint John launched the Budget Simulator, which was open to the public for 3 weeks. The goals of the Budget Simulator were to provide the City with themes for the ten year Long Term Financial Plan. The and the future difficult budget decisions that have to be made, along with the potential impacts. The public could participate in providing themes to the City to inform the Long Term Financial Plan by using the budget simulator to provide feedback or comments on service delivery, property taxes, revenue generation, and community facilities. Summary of Results The results from this process are not recognized to be statistically valid; however, a sufficient number of responses allow for themes to be analyzed and understood. The goal of this public engagement was to receive over 400 responses. In total, 553 responses were received. Therefore it is can be assumed that the data provides sufficient information for this purpose. Upon discussions with the service provider of the Budget Simulator, the amount of responses received was acceptable and was considered to be a positive uptake in level of participation. Of the submitted budgets, 195 participants (35%) balanced their budgets, meaning they found sufficient increase in revenue through property taxes and changes in service levels to eliminate the deficit. 358 participants were not able to balance the budget. Based on average results from participants, the total amount of cost reductions and revenue increases was $3.9 million, almost 57% less than the gap of $9 million ($5 million gap). Although the City is required by legislation from the Province of New Brunswick to balance the budget and cannot operate in deficit, due to the difficulty of the exercise, it was not a requirement for participants to balance their budgets. Qualitative Comments The Budget Simulator provided an opportunity for respondents to give comments and many participants provided feedback. Specifically participants were requested to provide feedback around potential revenue generation opportunities and the community facilities. - 3 - Revenue Generation There were 189 comments received in relation to revenue generation. Many people indicated that implementing tolls to enter the City, sharing services with other municipalities, higher tax rates for heavy industry and non-resident user fees may be areas to consider for revenue generation. Community Facilities There were 106 comments received in relation to community facilities. Generally respondents acknowledged the importance of these facilities to life in the City. Many respondents indicated there should be alternative funding models and some indicated the closure of facilities. Summary of Themes Participants recognized that there is not one single solution to address the There were varied opinions on tax rate changes. The information on tax changes is summarized as follows: o 50% of participants either chose to maintain the tax rate or decrease the tax rate 32% of participants did not change the tax rate 18% of participants chose to reduce the tax rate o 50% of participants chose to increase the tax rate Participants would tolerate a reduction in service levels, budget reductions varied from 1.5% to 19% depending on the service: o Budget cuts were across all service areas; o Average percentage budget reductions were higher for Economic Development, Transit Services, Recreation Programming and Sports Facilities and One Stop Development Shop /Property Compliance Programs; o Average percentage budget reductions were lower for Road Maintenance and Snow Control Streets and Sidewalks. o In terms of dollar allocations, the highest average budget reductions were in Police Services, Fire Rescue and Suppression Services and EMO, Economic Development, and Transit Services. Many comments referenced revenue generation from fees, tolls and taxes generated by non-residents, neighbouring municipalities and/or heavy industry. - 4 - the General Comments section. Demographic Information Participants were invited to respond to demographic questions when they submitted their budget to enable the project team to understand who participated, what their relationship was with the City. It is important to note that there was almost equal participation across all wards. Verification of Results In order to review data for any duplication of responses or trending that may have occurred due to inappropriate activity, a review of raw data was performed to identify if there were any instances of unusual activity. It was crucial to maintain and respect the privacy of individuals while performing procedures to perform quality review of information. Through this process all results appeared to be valid. Conclusion The staff considers the Public Consultation Budget Simulator to have achieved its outlined goals as stated. Given the level of response rate there is the ability to gather themes required. The amount of public engagement received along with informative sessions provided assisted in receiving many comments along with an understanding on the financial challenges the City faces in balancing the budget. SERVICE AND FINANCIAL OUTCOMES N/A INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS This work was performed in collaboration with all service areas and significant support from Information Technology and Communications. The core project team comprised Continuous Improvement and the Finance Department. ATTACHMENTS Appendix 1 Powerpoint presentation for Finance Committee Appendix 2- Results report of the Public Consultation Budget Simulator .ǒķŭĻƷ {źƒǒƌğƷƚƩ tǒĬƌźĭ /ƚƓƭǒƌƷğƷźƚƓ wĻƭǒƌƷƭ Update to Finance Committee July 18, 2019 0 {ğźƓƷ WƚŷƓͲ ǞŷğƷ ğƩĻ ǤƚǒƩ ƦƌğƓƭ ŅƚƩ ЋЉЋЊͪ A report of the Long Term Financial Plan Public Consultation Results Submitted to the City of Saint John Finance Committee July 18, 2019 Contents Introduction ................................................................................................................................................. 1 Public Consultation Response ................................................................................................................ 1 About the Budget Simulator ................................................................................................................... 2 Summary of Quantitative Responses ......................................................................................................... 3 Addressing the Budget Shortfall ............................................................................................................ 3 Summary of Qualitative Comments ........................................................................................................... 5 Revenue Generation ................................................................................................................................ 5 Community Facilities .............................................................................................................................. 5 Demographics .............................................................................................................................................. 7 Communications .......................................................................................................................................... 8 Quality Control ............................................................................................................................................ 9 Summary of Themes ................................................................................................................................. 10 Appendix A: Service Area Detailed Results ......................................................................................... 11 Appendix B: Revenue Generation Information Provided in the Budget Simulator ......................... 11 Appendix C: Community Facility Information Provided in the Budget Simulator ........................... 11 Appendix D: Demographic Results ...................................................................................................... 11 Appendix E: Procedures for Data Quality Control .............................................................................. 11 Appendix F: Examples of building awareness in General Comments ............................................... 11 Long Term Financial Plan Consultation Results 1 Introduction ¬¸ ¢®¬¬¤­³² § µ¤ ¡¤¤­ §¤«¯¥´«ȁ ) «®µ¤ ³§¨² #¨³¸  ­£ ) §®¯¤ ¶¤ ¦¤³ ¨³ ¥¨¦´±¤£ ®´³ȁ Participant The City of Saint John completed a public consultation process to collect input into the development of the CiThe Budget Simulator, an interactive, online, participatory budgeting tool, was used to collect feedback from the public. The consultation tool was open to the public between March 25 and April 11, 2019. The goal of the public consultation process was to provide the City with an understanding of how citizens would address a $9 Million budget shortfall. This includes understanding where citizens would like to invest their tax dollars and how to generate revenue. To assist participants in providing informed feedback, information was provided to them through text and video about the current services delivered by the City inclusive of current service levels. Participants were asked how much they would invest in public-facing service delivery. Service impacts were provided on what an increase or decrease in funding would mean to them in terms of the type and amount of service they would receive. The data collected was analyzed to identify themes for investing in public service and opportunities for the City to generate revenue. These themes will be considered as one input into the development of a long term financial plan for the City of Saint John. 0´¡«¨¢ #®­²´«³ ³¨®­ 2¤²¯®­²¤ Response to the public consultation process was very good. The goal was to receive over 400 responses. For a population the size of Saint John, 400 responses represented approximately a ninety-five (95) percent confidence level in the input in a statically valid process. In total, 553 responses were received over a three (3) week period. While the results from this process are not statistically valid, the number of responses received allowed for meaningful analysis. Of the submitted budgets, 195 participants (35%) balanced their budgets, meaning they found sufficient increase in revenue through property taxes and changes in service levels to eliminate the deficit. There were 358 participants that were not able to balance the budget. Although the City is required by legislation from the Province of New Brunswick to balance the budget, due to the difficulty of the exercise, it was not a requirement for participants to balance their budgets. Long Term Financial Plan Consultation Results 2 !¡®´³ ³§¤ "´£¦¤³ 3¨¬´« ³®± The Budget Simulator tool was selected to support the public consultation process given its functionality and quality control features for data analysis. This tool allowed the City to generate public feedback on both operating costs and revenue. The Budget Simulator also allowed the City to generate additional content to inform participants on the type and amount of service they currently receive for their investment (i.e., tax dollars) through text, graphics, and video. In order to understand who is participating in the consultation process, this tool provided the ability to collect demographic information. The Budget Simulator allows participants to use a slider feature to decide whether they would increase or decrease a budget for a particular service. With any changes made to service budgets, the user was provided the consequence or impact on service levels to their selection. This slide feature provides participants with an opportunity to reflect on their choices and make changes. An example of the Figure 1: Budget Simulator tool example Budget Simulator is provided in Figure 1. The Budget Simulator sought feedback on fifteen (15) different services delivered by the City outlined in Table 1. Participants were also given an opportunity to provide input on property tax and other revenue sources as well as feedback on community facilities. Table 1: Items included in the Budget Simulator Slider Grouping Slider Categories Property Taxes Property Taxes Revenue Revenue Generation Public Safety Services Police Services Fire Rescue and Suppression Services and EMO Transportation Services Snow Control Streets and Sidewalks Roadway Maintenance Sidewalk Maintenance Pedestrian and Traffic Management Services Environmental Services Solid Waste Management Stormwater Management Parks and City Landscape Services Growth and Community Community Planning Development One Stop Development Shop and Property Compliance Programs Growth Economic Development Growth Outcomes (includes Economic Development Saint John, Develop Saint John, Discover Saint John, Growth Reserve Fund and Population Growth) Transit Transit Services Recreations Programming Recreation Programming/PRO Kids and Neighbourhood/Community/Hockey Grants Sports and Recreation Facilities Other Community Facilities Other Community Facilities Long Term Financial Plan Consultation Results 3 Summary of Quantitative Responses ¨³ ¶ ² ¨­³¤±¤²³¨­¦ ³® ²¤¤ §®¶ ³§¤ ²«¨£¤±²  ¥¥¤¢³¤£ ¤µ¤±¸³§¨­¦ ¤«²¤ȁ 4§¤±¤ ®¥ ¢®´±²¤ ¢®´«£ ¡¤ ¬ ­¸ ¬®±¤ ²«¨£¤±² ¨­   ¬®±¤ Participant !££±¤²²¨­¦ ³§¤ "´£¦¤³ 3§®±³¥ «« Based on the options provided to participants in the Budget Simulator tool to balance the budget, on average participants are willing to accept a decrease in current service levels. The amount of decrease varies based on the service area, with reductions ranging from 1.5% to 19% in respective budget allocations. In summary, budget reductions were identified across all service areas as outlined in Table 2. More specifically: Average percentage budget reductions were higher for Economic Development, Transit Services, Recreation Programming, Sports Facilities and One Stop Development Shop /Property Compliance Programs; and Average percentage budget reductions were lower for Road Maintenance and Snow Control Streets and Sidewalks. In terms of dollar allocations, the highest average budget reductions were in Police Services, Fire Rescue and Suppression Services and EMO, Economic Development, and Transit Services. Participants in the budget simulator indicated that they would accept a slight increase in property tax rates; the average increase of property tax rates was close to a one-cent increase. The participant results on property taxes are described in Table 3. Summarized responses with renters and non-residents removed were as follows: 50% of participants either chose to maintain the tax rate or decrease the tax rate o 32% of participants did not change the tax rate o 18% of participants chose to reduce the tax rate 50% of participants chose to increase the tax rate When including renters and non-residents, slightly more participant chose to increase the tax rate. On average, participants were able to reduce the budget shortfall by $3.9 Million (43% of $9 million goal). These results are inclusive of both cost reductions and increases in revenue. Average service area results are shown in Table 2. The impact of a decrease in funding for each service is outlined in Appendix A as determined by the average change in funding submitted by participants. Long Term Financial Plan Consultation Results 4 Table 2: Average Change in Operating Costs and Revenue by Service Average % Projected Average Increase/ Service Submitted 2021 Budget Decrease in Budget Change Public Safety Services Police Services $27,804,299 -4.48% -$1,245,633 Fire Rescue and Suppression Service and EMO $26,550,521 -3.33% -$884,132 Transportation Services Snow Control Streets and Sidewalks $7,398,882 -2.73% -$201,989 Roadway Maintenance $7,052,442 -1.47% -$103,671 Sidewalk Maintenance $846,321 -3.41% -$28,860 Pedestrian & Traffic Management Service $2,505,962 -4.25% -$106,503 Environmental Services Solid Waste Management $4,007,889 -3.98% -$159,514 Stormwater Management $4,028,715 -3.16% -$127,307 Parks & City Landscape $3,523,599 -3.67% -$129,316 Growth and Community Development Growth and Community Planning $1,962,108 -4.36% -$85,548 One Stop Development Shop / Property Compliance Programs $3,032,453 -5.84% -$177,095 Growth and Community Development- Economic Development Growth Outcomes (includes Economic Development Greater $2,943,504 -18.94% -$557,500 Saint John, Develop SJ, Discover Saint John, Growth Reserve Fund and Population Growth) Transit Services Transit Services $5,976,781 -7.88% -$470,970 Recreation Programming Recreation Programming, Support/Pro-Kids and $2,485,336 -6.10% -$151,605 Neighborhood/Community Hockey Grants Sports & Recreation Facilities $3,712,575 -5.21% -$193,425 Property Tax Property Tax $124,995,178 0.53% $662,474 Change in Budget -$3,960,595 Projected 2021 Shortfall $9,000,000 Remaining Deficit $5,039,405 Table 3: Property tax responses % Respondents Change in Taxes # Respondents % Respondents (Renters and Non-Residents Removed ) + 3 Cents 174 32% 28% + 2 Cents 60 11% 11% + 1 Cent 62 11% 10% No Change 161 29% 32% - 1 Cent 41 7% 8% - 2 Cents 18 3% 4% - 3 Cents 37 7% 7% Long Term Financial Plan Consultation Results 5 3´¬¬ ±¸ ®¥ 1´ «¨³ ³¨µ¤ #®¬¬¤­³² -to-long-³¤±¬ ¨­µ¤²³¬¤­³ ¨­ «¨µ ¡¨«¨³¸  ­£  ³³± ¢³¨µ¤­¤²² ¥®± ¨¬¬¨¦± ³¨®­Ǿ  ³ ³§¤ ¤·¯¤­²¤ ®¥ ²§®±³-³¤±¬ ¡ « ­¢¨­¦ - a «®³ ®¥ ¢¨³¨¤² ¦¤³ ¢ ´¦§³ ¨­ £®¶­¶ ±£ ²¯¨± «² ³§±®´¦§ ²§®±³ ²¨¦§³¤£ ¡´£¦¤³ Participant The Budget Simulator provided an opportunity for respondents to give comments and many participants provided feedback. Participants were permitted to provide feedback around potential revenue generation opportunities and the community facilities (i.e., Aquatic Centre, Harbour Station, Trade & Convention Centre). 2¤µ¤­´¤ '¤­¤± ³¨®­ One hundred and eighty nine (189) comments received in relation to Revenue Generation from participants. The question asked of the participants in the Budget Simulator is included in Appendix B. Many participants indicated that implementing tolls to enter the City, sharing services with other municipalities, higher tax rates for heavy industry and non-resident user fees may be areas to consider for revenue generation. Table 4 provides some of the comments received related to these topics. Table 4: Examples of Revenue Generation comments Revenue Generation Comments Note: Comments may have been edited for space. Comments are presented in the order in which they were entered into the simulator. Fees should be increased for non-residents who use City facilities. Monthly parking rates should be tiered with non-residents paying a premium, commuting residents paying a lower rate and a reduce rate for residential parkers (i.e. If you need monthly parking and live in the City core, you should get a better rate) With the other revenue generators, once again the city is relying on residents (not industry). Industry needs to pay its fair share. The City is going to spend approx. $7m on road maintenance this year alone and the users who are destroying the roads are industry - heavy trucks, etc. The problem with the low rate to industry has to be faced by the city - not passed along again to residents and small businesses. More than enough comparisons with other cities have come out showing how the city is favourable to large industry at the expense of residents and small business. Tolls coming into the city from GB and the Valley. Residents of SJ should have an electronic pass issued. I believe that you should include any community within a 50 km radius as the greater Saint John area and collect there property that Saint John has to offer. This will help with making the city bigger and better for all. #®¬¬´­¨³¸ & ¢¨«¨³¨¤² One hundred six (106) respondents commented on community facilities. The question asked of the participants in the Budget Simulator is included in Appendix C. Respondents generally acknowledged the importance of these facilities to life in the City. Many respondents indicated that there should be alternative funding models and some indicated the closure of facilities. By far, the most frequent comments were related to higher contributions from users outside the City, either in the form of higher Long Term Financial Plan Consultation Results 6 contributions from communities, a change in the funding formula, user fees, or contributions to capital. Examples of comments received related to these topics are provided in Table 5. Table 5: Examples of Community Facilities comments Community Facilities Comments Note: Comments may have been edited for space. Comments are presented in the order in which they were entered into the simulator. It sickens me to see the amount Saint John residents foot for regional facilities. It is completely unfair of saint john to be paying that significant of a portion of aquatic centre fees. The provincial funding to saint john and regional taxation has to balance this out if the outlying regions refuse to do so willingly. This formula needs to be revisited to be more equitable between communities. Also the City should not be responsible for all capital costs I think that if people really want something then they should have to go about getting it themselves. For example paying for the use of church for an event of some sort, and making the people pay for it at cost as well! We believe that the contribution to these centers should be reduced and they should be self-sustaining, improving the quality of their services and increasing the events and courses offered. community to underwrite capital assets for the wealthier outlying regions. Fees should be charged for all Facilities so that those who actually use them will share the cost. If I go to Harbour Station for an event a 1-not complain over a 1-2 dollar increase for use. The regional facilities commission needs a redesign. More oversight, more financial contributors (LSDs). Community facilities provide so much for Saint John residents who otherwise may not be able to afford or access other positive than meets the eye, and are integral parts of ensuring some equity of access and wellness for people. Long Term Financial Plan Consultation Results 7 Demographics add ±¤µ¤­´¤ ¥±®¬ ³ · ±¤¥®±¬ ¨­¨³¨ ³¨µ¤²Ǿ ¨³ ¨²   ¦®®£ ¤­¦ ¦¤¬¤­³ ³®®« ¥®± ¢¨³¨¹¤­²  ­£ Participant Participants were invited to respond to demographic questions when they submitted their budget. This information allows for analysis on who participated and what their relationship was with the City. Participants were asked: 1. Are you an employee of the City of Saint John? 2. What ward do you live in? 3. Do you own or rent? 4. What is your age? 5. Do you have children living with you who are under the age of 18? 6. What is your first language? It is important to note there was almost equal participation across all wards (Figure 2). Demographic responses are included in Appendix D. Figure 2: Participant location across the Saint John Long Term Financial Plan Consultation Results 8 Communications !«²® ³§¤ ¨­¥®±¬ ³¨®­ ®­ ®´± Participant Public communications launched with three videos being released prior to the start of the public consultation period. The consultation process was launched publically at the March 25 meeting of Common Council and was supported by a communications campaign. The campaign included media interviews, open houses for those who needed assistance or did not have computer access, a landing page on www.saintjohn.ca and email, and social media campaigns. Table 6 outlines all of the communications efforts to support a successful public consultatTerm Financial Plan. Short videos were developed and shared through the public consultation landing page and embedded in the Budget Simulator tool to provide information on the services participants were asked to provide feedback on about their respective service area. In total, 32 videos were produced (16 English and 16 French). All other content in the simulator was also produced in English and French. The project team created content that considered reading levels and allowed for participation from the Deaf and Hard of Hearing Community. Because of the nature of the project, informing employees was vital. Open houses and an internal website were made available to employees two weeks before launch. Table 6: Summary of Communications Activities Item Result Engagements (shares, clicks, likes, comments) Total engagements (FB +Twitter): 4,339 (as of April 2, 2019) Unique social media video campaigns via Communications 6 Total YouTube Video views 2,812 Media articles 3 Visits to the Budget Simulator Landing Page on .saintjohn.ca 2,295 Email notifications sent through system 9,161 (does not include CSJ employees) Print materials 40 posters 200 contact cards distributed Open Houses Meetings (including ASL) 5 (total attendance 26) Sports organizations contacted via email 70 Community organizations contacted via email 20 plus in person visits Outreach to businesses and post-secondary Institutions Employees Open Houses 11 (250+ attendance) Emails through project inbox 3 Long Term Financial Plan Consultation Results 9 1´ «¨³¸ #®­³±®« All data submitted by participants was hosted and maintained by the Budget Simulator vendor. A review of raw data was performed to identify if there were any instances of unusual activity (e.g., duplicates, multiple submissions by same participant) that may have occurred due to inappropriate activity in participating in the public consultation process. Maintaining and respecting the privacy of those participating in the process, as required by legislation, was achieved while performing quality review procedures of the data. The most relevant data used in the quality control analysis was internal protocol (IP) addresses. The vendor provided the City with a reference number for each IP address. This information was used to identify numbers and patterns within each response. The procedures used to review the data for quality control and results are presented in Appendix D. The results of the analysis indicated no inappropriate activity. Long Term Financial Plan Consultation Results 10 3´¬¬ ±¸ ®¥ 4§¤¬¤² ®µ¤±²¯¤­£  ±¤ ¢´³² ³§ ³   ¢¨³¸ ¢ ­ § ±£«¸ ¬ ª¤ ¶¨³§®´³ ¢®¬¯±®¬¨²¨­¦ ³§¤ °´ «¨³¸ ®¥ «¨¥¤ ¶¨³§¨­ ³§ ³ ¢¨³¸ȁ )³ ¨²  «²® ¤·³±¤¬¤«¸ Participant From the information collected through the public consultation using the Budget Simulator, the following Long Term Financial Plan. challenges. There were varied opinions on tax rate changes. The information on tax changes is summarized as follows: 50% of participants either chose to maintain the tax rate or decrease the tax rate 32% of participants did not change the tax rate 18% of participants chose to reduce the tax rate 50% of participants chose to increase the tax rate Participants would tolerate a reduction in service levels, budget reductions varied from 1.5% to 19% depending on the service: Budget cuts were across all service areas; Average percentage budget reductions were higher for Economic Development, Transit Services, Recreation Programming and Sports Facilities and One Stop Development Shop /Property Compliance Programs; Average percentage budget reductions were lower for Road Maintenance and Snow Control Streets and Sidewalks. In terms of dollar allocations, the highest average budget reductions were in Police Services, Fire Rescue and Suppression Services and EMO, Economic Development, and Transit Services. Many comments referenced revenue generation through fees, tolls and taxes generated by non- residents, neighbouring municipalities and/or heavy industry. Comments section. A sample of these comments can be found in Appendix F. Long Term Financial Plan Consultation Results 11 !¯¯¤­£¨· !Ȁ Service Area Detailed Results Average Change 0´¡«¨¢ 3 ¥¤³¸ 3¤±µ¨¢¤² Police Services The Saint John Police Force delivers five core services: Crime Prevention, Victim Services, Emergency Response, Law Enforcement, and Public Order. While all are fully integrated and are required by legislation, regulations, or standards, it is Crime Prevention that protects the public from harm and impacts the demand for the other four core services. On occasions when crime does occur, Emergency Response, Law Enforcement, Victim Services, and Public Order respond to limit harm. 2021 Operating Budget Estimate $27,804,299. Percent Reduction The average calculation of percentage reduction to the current service level based on Table 1 is 4.48%, which is approximately $1.2 million reduction in costs per year. Impact Operational impact on service delivery which may reduce services currently being offered. Priority will be given to Emergency Response 911. Other key services may not be adequately met; Crime Prevention, Law Enforcement, Public Order, Victim Services and Training. Fire Rescue and Suppression Service and EMO Fire Rescue and Suppression Services respond to emergencies at homes, businesses, industries, and property throughout the city. The goal is to save lives, minimize damage to property and the environment, have citizens return to their homes as soon as possible, and ensure that businesses and industries get back into operation quickly. Incidents may involve fire, water, ice, motor vehicle accidents, structural collapse, confined spaces, slope rescue, high angle, hazardous materials, and medical calls. The fire department has goals for response times. In the Primary Development Area (PDA), the area with the greatest range and mix of compatible land uses within the City, the goal is five minutes and 30 seconds or less, 90% of the time. The fire service meets this goal 83% of the time. The goal outside of the PDA is 12 minutes and 30 seconds or less, 90% of time. The fire service meets this goal 84% of the time. 2021 Operating Budget Estimate $26,550,521 Percent Reduction The average calculation of percentage reduction to the current service level based on Table 1 is 3.33%, which is approximately $884,132 reduction in costs per year. Impact May result in the closure of 1 fire station and a reduction in response to industry. Primary focus will be on public safety in communities around industrial incidents. Response time to residences could increase by 2 to 6 minutes, depending on location. This could increase probability that building fires spread past available fire units. Possibility of an increase in the number of times where no fire response unit would be available to respond due to simultaneous emergencies. Long Term Financial Plan Consultation Results 12 Transportation Services Snow Control Streets and Sidewalks Functional streets and sidewalks allow people, vehicles, and goods to move more safely through the extremes of winter snow and ice storms. Snow and ice are cleared, and abrasive materials are applied to City streets and sidewalks to improve conditions for the travelling public. Roads and sidewalks are cleared based on a four- Management Plan. The service level objective is to clear snow and ice from all of the City's roads (1,500 lane km) and 61% of the City's sidewalks (244 km of the 400 km). 2021 Operating Budget Estimate $7,398,882 Percent Reduction The average calculation of percentage reduction to the current service level based on Table 1 is 2.73%, which is approximately $202,000 reduction in costs per year. Impact Decrease all response times for clearing snow on streets and sidewalks during and after storms. This could also result in a decrease of 20 km of sidewalk serviced, meaning 56% of sidewalks would be plowed (currently 61%). Sidewalk plowing along rural arterials may be eliminated. Roadway Maintenance The Roadway Maintenance Service provides motorists and cyclists with safer, functional roads and aims to maintain the accessibility of these roads through all seasons. The service uses various methods to improve the safety of road surfaces, extend the life of roadways, and improve the cleanliness of the city. Asphalt activities include patching, crack-sealing, and resurfacing. All roads in the City of Saint John are given a priority from 1 to 4, depending on location, amount of traffic, and how close they are to schools, hospitals, and bus routes. Asphalt and potholes are repaired based on road priority (between 14 and 30 days). The service also repairs or replaces guiderail, retaining walls, and fences that may be unsafe or interrupt service. City crews use equipment to clean curb, sidewalks, and streets. Litter and illegal dumping cleanup is routinely undertaken year-round. 2021 Operating Budget Estimate $7,052,442 Percent Reduction The average calculation of percentage reduction to the current service level based on Table 1 is 1.47%, which is approximately $104,000 reduction in costs per year. Impact Decrease roadway maintenance by reducing pothole repairs and doing approximately 10 lane km less of asphalt overlay work. The reduced asphalt program will affect rural arterials and neighbourhoods. Some roads will not be repaired for an extended time. Decrease litter and illegal dumping cleanup efforts. Long Term Financial Plan Consultation Results 13 Sidewalk Maintenance This service strives to improve pedestrian safety by reducing trip hazards on sidewalks and improving accessibility. This is done through maintenance and installing accessibility ramps. This service also maintains green spaces around sidewalks and walkways. Trip hazards with gaps of 25 mm or greater in high pedestrian traffic areas are repaired within 10 months of receiving the request. Trip Hazards with gaps of 25 mm or greater in low pedestrian traffic areas are repaired within 18 months of receiving request. 2021 Operating Budget Estimate $846,321 Percent Reduction The average calculation of percentage reduction to the current service level based on Table 1 is 3.41%, which is approximately $28,900 reduction in costs per year. Impact Decrease the number of repairs or replacements of sidewalk sections that reduce the risk of trip hazards. Install fewer access ramps to sidewalks. Traffic and Pedestrian Management The service is responsible for the safe and efficient movement of pedestrians, cyclists, and motorists on our streets and sidewalks. This is done by maintaining 130 traffic and pedestrian signals, as well as 14,000 street and traffic signs. Employees also paint 400 km of traffic lines and close to 3,200 symbols, crosswalks, and stop bars on our streets each year. On average, 24 projects are completed each year to improve safety for pedestrians and motorists. The service also responds to community requests to improve traffic safety, where possible. 2021 Operating Budget Estimate $2,505,962 Percent Reduction The average calculation of percentage reduction to the current service level based on Table 1 is 4.25%, which is approximately $106,500 reduction in costs per year. Impact Decrease the number of projects that focus on Safer School Zones, traffic calming, and pedestrian signals. Complete 1 less replacement of old traffic lights. Environmental Services Solid Waste Management Effective solid waste management is critical for public health and livable neighbourhoods. This service provides effective and efficient collection and disposal of garbage, compost, and bulky items for 23,000 residential households, spread out over 45 routes across the City. The service supports community waste diversion programs that contribute to a healthy environment. Bi-weekly service is provided throughout the year, with the exception of Christmas Day and extreme weather events. Some areas in the City receive garbage and compost collection once a week. All residential garbage and compost on a route is picked up within an eight (8) hour shift, 95% of the time. Residential properties can request bulky item pick-up (three items, two times a year). 2021 Operating Budget Estimate $4,007,889 Percent Reduction The average calculation of percentage reduction to the current service level based on Table 1 is 3.98%, which is approximately $159,500 reduction in costs per year. Impact Eliminate special bulky item pick-up service. Eliminate garbage collection on statutory holidays, causing delays on next-day routes. Long Term Financial Plan Consultation Results 14 Stormwater Management The service strives to control stormwater and avoid damage caused by flooding. This service maintains storm drains, pipes, ditches, and retaining ponds to drain water away from public and private property safely and efficiently. Stormwater pipes and catch basins are inspected, cleaned, and/or fixed as needed on a 7-year cycle. Approximately 70% of Critical or Emergency service requests (hazards to people or property, and catastrophic events causing interruptions to services) are completed within a construction year. Projects are completed annually to address local drainage problems that directly impact public safety, and both public and private property. 2021 Operating Budget Estimate $4,028,715 Percent Reduction The average calculation of percentage reduction to the current service level based on Table 1 is 3.16%, which is approximately $127,300 reduction in costs per year. Impact Decrease the frequency that stormwater pipes and catch basins are inspected, cleaned, and/or fixed. Complete 2 less projects (decrease from 8 projects to 6) a year to improve stormwater issues. Decrease the percentage of Critical or Emergency Service requests (pose a risk to the public or service delivery) that are completed (from 70% to 65%) within a construction year. Parks and City Landscape The Parks & City Landscape Service provides our citizens and visitors with parks and green spaces for recreation and leisure activities. This service develops, operates, and maintains community parks, squares, trails, tourist sites, and City right of ways. We also preserve and protect our trees and natural -- PlaySJ -- and work to invest in quality outdoor spaces for generations to come. The service is responsible for keeping some of the ci-- our parks and public spaces in a condition that we can all be proud of and want to use; this involves: Maintaining nine district and regional parks where citizens can swim, relax, splash, picnic, hike, and play re and Queen Square to a heritage standard Preserving 2,200 acres of natural park space available for use year-round Maintaining 56 km of trails, including Harbour Passage Maintaining over 100 acres of sports fields Planting 118,000 bulbs and flowers each year to highlight the beauty of our city Maintaining winter lights and tourist sites Supporting programs in Rockwood Park Supporting over 300 community events each year 2021 Operating Budget Estimate $3,523,599 Percent Reduction The average calculation of percentage reduction to the current service level based on Table 1 is 3.67%, which is approximately $129,300 reduction in costs per year. Impact Eliminate City programming offered in our parks. Eliminate support for our partners who offer programming in our parks and who hold community events. Long Term Financial Plan Consultation Results 15 Growth and Community Development Community Planning Growth and Community Planning works with community stakeholders to implement the City's municipal area to achieve the community's vision for smart growth. On average, the service facilitates 70 applications annually for major development projects, which translates into new tax base revenue for the City. The Community Planning team works with economic development partners to maximize efforts to grow the City's population, tax base, and employment. This service area of the City also delivers programs to support improved quality of life and drives density to the urban core through neighbourhood planning, urban development incentive programs, and delivery of arts and culture programming and grants. 2021 Operating Budget Estimate $1,962,108 Percent Reduction The average calculation of percentage reduction to the current service level based on Table 1 is 4.36%, which is approximately $85,500 reduction in costs per year. Impact 50% reduction in the financial support for urban development programs that target efforts to encourage private sector investment and increase the tax base. One Stop Development Shop and Compliance Programs The One Stop Development shop provides customer focused service for clients seeking approvals for small to large building construction projects, for work involving municipal infrastructure, or renovation to designated heritage properties. This service is also responsible for ensuring compliance with the City's property related by-laws to uphold public safety and community standards. Building permits are processed within target turnaround times: 5, 10, and 20 days. The service maintains targets to resolve property related enforcement cases. The program specific target for resolution of dangerous building cases, aimed at reducing public safety risks and encouraging reinvestment in these properties, is on average 75 cases per year. The program specific target for resolution of community standards cases, which focus on unsightly properties in the City, is 50 cases per year. 2021 Operating Budget Estimate $3,032,453 Percent Reduction The average calculation of percentage reduction to the current service level based on Table 1 is 5.84%, which is approximately $177,000 reduction in costs per year. Impact Decrease in financial support to heritage property owners. Increase in response times for non-essential property related by-law enforcement and a reduction in the number of resolved cases, negatively impacting the enjoyment and aesthetics of neighbourhoods. The Dangerous and Vacant Buildings program would be reduced, with a decreased number of resolved cases overall, including high-priority cases, resulting in increased safety risks and less reinvestment in urban neighbourhoods. Long Term Financial Plan Consultation Results 16 Growth Outcomes (Economic Development) The City of Saint John is making strategic investment into growing our City and our Roadmap for Smart Growth prioritizes three focus areas: population growth, employment growth, and tax base growth. The City helps drive local economic development with an internal focus on population growth, and strategic growth funding, as well as annual financial contributions to three external agencies. Develop Saint John received $821,002 in 2018, and is mandated with the pursuit of tax base growth. The to deliver new employment growth targets for the Saint John community. Both agencies receive communications annually from Common Council detailing expectations of the municipal investment into the organizations. In addition, Growth Outcomes includes an investment of $100,000 into population growth as well as annual investment of $350,000 into strategic growth funding. With growth and investment into Discover Saint John was $1,033,495, which leverages additional funding from the Saint John Hotel Association and support destination marketing and the tourism in Saint John. Discover Saint tourism experiences to high potential markets. 2021 Operating Budget Estimate $2,943,504 Percent Reduction The average calculation of percentage reduction to the current service level based on Table 1 is 18.94%, which is approximately $557,500 reduction in costs per year Impact Elimination of strategic growth funding, and in turn negatively impacting the growth. Reduction to Develop Saint John, reducing capacity to achieve tax base growth targets. Reduction to Economic Development Greater Saint John, reducing capacity to achieve employment growth targets. Reduction towards Discover Saint John, reducing capacity to market the City and provide support to the attraction of visitors and major events. It should be noted that any reduction in municipal funding to external economic agencies may result in corresponding funding reductions to their other partner organizations. 4± ­²¨³ 3¤±µ¨¢¤² Saint John Transit is the largest public transit system in New Brunswick in terms of mileage and passengers. The service delivers 96,232 hours of service to over 25 routes with a fleet of 50 buses. The service provides about 2,000,000 passenger with trips per year. Saint John Transit subsidizes Handi-Bus to ensure that residents with mobility challenges have access to transportation. Transit buses are also available for private charter. Saint John Transit is governed by a commission that is dedicated to high standards of customer service through innovative programs and commitment to the community. Saint John Transit is also a key player Long Term Financial Plan Consultation Results 17 2021 Operating Budget Estimate $5,976,781 Percent Reduction The average calculation of percentage reduction to the current service level based on Table 1 is 7.88%, which is approximately $471,000 reduction in costs per year. Impact Cancel service to outlying areas and holiday service. Reduce service in the Martinon and Loch Lomond area. Reduce night service in some priority neighbourhoods and feeder lines, such as Crescent Valley and South End. 2¤¢±¤ ³¨®­ Services Recreation and Programming Support The Recreation Programming Service provides recreation and sport opportunities for citizens to stay active, enjoy leisure time, and connect with others. Using innovative leadership, the goal is to deliver services that promote community well-being, quality of life, and a healthy, vibrant, positive, and strong community. This service includes managing third-party recreation program delivery, playground programming, community events planning and support, and maintaining and facilitating partnerships with various community and special interest groups. This service coordinates the community and neighbourhood development grant programs to reduce poverty and create more recreation opportunities. The service also operates the P.R.O. Kids organization that places children in recreation, arts, and culture activities that would not otherwise have an opportunity to participate. 2021 Operating Budget Estimate $2,485,336 Percent Reduction The average calculation of percentage reduction to the current service level based on Table 1 is 6.10%, which is approximately $151,600 reduction in costs per year. Reduce community centre Impact the summer playground program. Reduce Community Grants by 10%. Sports and Recreation Facilities The Sports and Recreation Facilities Service gives citizens access to both indoor and outdoor sports and recreation facilities. Employees maintain sport fields, arenas, parks, and playgrounds. Through this service area, sports organizations and other groups can book various facilities for their use. The service also supports special community events. 2021 Operating Budget Estimate $3,712,575 Percent Reduction The average calculation of percentage reduction to the current service level based on Table 1 is 5.21%, which is approximately $193,000 reduction in costs per year. Impact Close 1 of the 4 arenas operated by the City. Long Term Financial Plan Consultation Results 18 0±®¯¤±³¸ 4 ·¤² Along with adjusting service level costs, respondents had the opportunity to increase or decrease property taxes. By decreasing taxes, a decrease to service levels would be required. By increasing taxes, service levels could be increased. 2021 Operating Budget Estimate $124,995,178 Percent Reduction The average calculation of percentage increase is 0.53%. Impact $662,500 #§ ­¦¤ ¨­ "´£¦¤³ Based on the average results from participants, the total amount of cost reductions and increases in revenue would create $3.9 million in savings. The estimated gap is $9 million, therefore an additional $5 million would be required in order to eliminate the deficit. Change in budget -$3,960,595 Required to cover shortfall $9,000,000 Remaining Deficit $5,039,405 Long Term Financial Plan Consultation Results 19 !¯¯¤­£¨· "Ȁ Revenue Generation Information Provided in the Budget Simulator Within the budget simulator the following information was provided to participants to provide their feedback. As a City we are always looking for innovative ways to cut costs and support the services we provide to our residents. Some of the services we currently provide are charged a fee in order to assist in covering a portion of the costs. Where the fee does not fully cover the cost of service, it is subsidized by the property tax revenues. We want to hear from you! Where do you think fees could be increased? Where do you believe fees could be charged for the service provided? Below are some examples: approximately 42% of the operating costs. Sports Field User Fees: these are fees for the usage of our fields throughout the City. Currently the fees cover approximately 11% of the operating costs. Non Residential Fees for use of Arenas and Sports Fields: many people travel into the city to use the arenas and sports fields and do not pay taxes to contribute to the facilities. Potential recovery of costs could be made by charging additional fees for non-residents of the City. The City is constantly trying to create new ways of covering our service costs so that there is less burden on the property tax revenue. Some options that are currently used by other cities are listed below. Pay as you throw fees: residents could be provided with garbage tags. Any amount used over the bag limit would be charged at a fee for service. Public space booking fees: fees could be charged for events that have revenue/commercial value that are held in our parks and public spaces. Please provide information in the comment box for services that you think should be charged a fee or where you think increases in fees should be made. We would love to hear of innovative ways you feel the City could generate more revenue. Long Term Financial Plan Consultation Results 20 !¯¯¤­£¨· #Ȁ Community Facility Information Provided in the Budget Simulator Within the fixed costs portion of the budget there are contributions made by the City to facilities that are owned but not operated by the City. We want you to have your say on the value they bring you and the benefit you believe they have on our citizens. A listing of the facilities is noted below with the approved dollar contributions for 2019. These services provide access to recreation, sport and cultural opportunities that allow our citizens to stay active, enjoy life in their leisure time, and connect with other members of the community. These services promote community well-being and enhance the quality of life of citizens to produce a healthy, vibrant, positive and strong community. The diversity of services included in this area is designed to meet the recreation, culture and leisure needs of our citizens. Please tell us how important these services are for you and how you would like to see funds contributed. Do you use the facilities often? Do you believe we should be investing more or less in the facilities? What value do they bring to our community? Please comment on the next page. Operating costs for the facilities: The facilities listed below are owned by the City but Provincial Legislation (Regional Facilities Commission Act) provides that operating costs will be shared on a regional basis between Saint John, Grand Bay- Westfield, Quispamsis, and Rothesay. Costs are shared based on the tax base of each community. Below you will find a breakdown of shared costs along with 2019 approved budget amounts. Capital costs for the facilities: The Provincial Legislation does not include sharing of capital costs of the facilities. Capital costs are investments that will bring benefits over many years, such as a Roof Replacement. Capital costs are paid for entirely by the City of Saint John. These capital investments ensure the facilities are kept in good condition. Over the last 5 years, the City has invested approximately $5 million dollars in these facilities. Further significant investments are required in the coming years in order to keep the facilities in good condition. In Accordance with Provincial Legislation (New Brunswick Public Libraries Act) Cities that have public libraries are required to fund the operating costs; in Saint John the City funds the operation of 3 branches located in the City. The budget for Saint John Free Public Library is approximately $500,000 per year. Long Term Financial Plan Consultation Results 21 !¯¯¤­£¨· $Ȁ Demographic Results Q1: Are you an employee of the City of Saint John? Q2: What ward do you live in? Approximately 69.3% of respondents identified what ward they lived in while 19.5% indicated the ward as unknown 13% 14% and 11.2% indicated that they were non-residents. The number of participants across all wards was similar with Ward 4 having the highest participation. The location of the wards is as follows: Ward 1- West Saint John 99 (17.9%) Ward 2- North End Saint John 100 (18.1%) Ward 3 -South Central Saint John 78 (14.1%) 73% Ward 4- East Saint John 106 (19.2%) EmployeeNot an EmployeeNo Indication Q4: What is your age? Q3: Do you own or rent? A significant percentage of individuals who completed the The majority of the participants (61%) who participated budget simulator submissions were in the age bracket of own their property. 25-44 with 43% in this age bracket, with the next nearest completed submissions falling within the age bracket of 18%45-64 at 26%. 21% 250 236 200 144 150 100 100 33 32 50 5 3 0 61% RentOwnDid Not Answer Q5: Do you have children under the age 18? Q6: What is your first language? Almost half of the participants indicated they did not have The majority of participants indicated their first language children under the age of 18. was English. A French budget simulator was also provided but there were no responses within the French translated simulator. 17% 20%31% English 1% French 3% Other 49% No Response 78% YesNoNo Response Long Term Financial Plan Consultation Results 23 !¯¯¤­£¨· %Ȁ Procedures for Data Quality Control Review Procedure 1 IP ID (Code not Number of times Identify IP address codes that were used in more than two instances. actual IP address)used 174 Results of Procedure 1: 104 259 There were 9 instances where an IP address was used in more than 363 two responses. Table on the right shows the IP ID used more than 2 593 times 634 1276 2874 3394 Review Procedure 2 Review results for all IP codes that were used more than two instances identified in the table above. This provides 69% of coverage for any IP codes used more than once (as it does not consider codes used twice). Characteristics reviewed were as follows: (1) Review demographic information for similarities (specifically postal codes) (2) Review time of entry for entries that are within 10 minutes of one another (3) Review allocations with similarities (see further details in procedure 3) Results of Procedure 2: Based on procedures performed there were no characteristics identified that appeared to be unusual. Review Procedure 3 Review all responses (total of 553 responses) to identify if any had total expenditures that are the same, meaning the allocations to the budget were the exact same. Results of Procedure 3: Based on procedures performed, there were a total of nine responses that were reviewed in detail and are listed in the table below. Long Term Financial Plan Consultation Results 24 Review Procedure 4 Determined that two results, which provided the same allocation, is reasonable. Reviewed items highlighted in grey in detail as there were 5 instances where the exact same overall expenditure and revenue was provided. Characteristics reviewed were as follows: (1) Review demographic information for similarities (specifically postal codes) (2) Review time of entry for entries that are within 10 minutes of one another (3) Review allocations with similarities Results of Procedure 4: Findings were that in the 5 instances, all service areas were decreased to the maximum with the exception of public safety services which were kept at the same level (ie: public safety services was not increased or decreased). The timing of the responses and demographics were not the same. Performed an additional procedure as noted in Procedure 5 to identify what impact the responses would have if they remain in or are removed of the total results. Review Procedure 5 To determine if by including the 5 results that are the same would impact the overall results. Removed the 5 results from the data and recalculated the overall increases/decreases per service area. Refer to the table below for the adjustment and review. Results of Procedure 5: After the results were normalized it was determined that the overall impact was minimal with the largest being 0.27% with the majority below 0.15%. Results of this process are shown in the table on the right. Long Term Financial Plan Consultation Results 25 !¯¯¤­£¨· &Ȁ Examples of building awareness in General Comments Comments (Please note: some comments have been edited for space.) As a new resident, I see opportunity where many long term residents see negativity. And people here don't seem to travel as much so they don't realize how fortunate they are compared to many other cities. It's time people realize that they MUST participate and live in this city if it is to survive. I believe that Saint John has the potential to become a model city in Canada we have inherited so many of the building blocks of quality cities seen only in Boston, New York, Halifax and Montreal. There are many positive and marketable aspects to the city (short commute times, incredible park land, a growing arts community, an uptown development renaissance, friendly and community minded area etc.). We need to actively promote everything positive and minimize negative (we are so focused on the worst case financial scenario that we shout it from the mountains). Increase and improve the marketing of the city internationally, in this way tourism is attracted which moves the local economy and promotes the city. Promote the internationalization of the city in all citizens and businessmen of the city, to attract people and businesses and export services and products to new markets. We need to brag up our amazing parks, beaches, trails, etc more. There is so much to do here. Such a healthy and fun lifestyle to be had here. The people are amazing and so is the landscape. I hope this input will be of some value and that we will find our way to financial sustainability without compromising the quality city and city life required to attract and retain talent and encourage growth. I believe one of the principal challenges is image and that we need to immediately focus on that issue (not locally but regionally and nationally). Long Term Financial Plan Consultation Results 26 FINANCE COMMITTEE REPORT Report Date July 12, 2019 Meeting Date July 18, 2019 His Worship Mayor Darling and Members of Common Council SUBJECT: Proposed Phase 1 Municipal Tax Reform OPEN OR CLOSED SESSION This matter is to be discussed in open session of the Finance Committee. AUTHORIZATION Primary Author Commissioner/Dept. Head City Manager Neil Jacobsen John Collin John Collin Kevin Fudge RECOMMENDATION The Finance Committee recommends to Common Council that they formally adopt the proposed Phase 1 Municipal Tax Reform as per Attachment B, and further request to the Province of New Brunswick that it be added as a component of Sustaining Saint John A Three-Part Plan. EXECUTIVE SUMMARY The proposed Phase 1 Municipal Tax Reform provides a mechanism to allow the Provincial portion of the heavy industrial property taxes currently collected within the City of Saint John (approximately $9 million) to remain in the City as a reflection of the unique impact that large industry has on the City. Phase 1 would be an interim step in the much broader (comprehensive) review of municipal taxation as committed to by the Province of New Brunswick in the recently released Sustaining Saint John A Three-Part Plan. Phase 1 is current financial challenges. Heavy industry located in Saint John currently pays approx. $12 million in property tax to the City on an annual basis, while the Province retains approximately $9 million. - 2 - PREVIOUS RESOLUTION Thursday, July 11, 2019, Open Session of Council Moved by Councillor Reardon, seconded by Deputy Mayor McAlary: RESOLVED that the matter Sustaining Saint John A Three Part Plan be tabled for 30 days to facilitate further negotiation with the Province. MOTION TIED, with Deputy Mayor McAlary and Councillors Reardon, Hickey, ncillors MacKenzie, Merrithew, The Mayor cast the deciding vote in favour. MOTION CARRIED. STRATEGIC ALIGNMENT The proposed Phase 1 - Municipal Tax Reform directly supports, contributes to and enables DƩƚǞƷŷ ğƓķ tƩƚƭƦĻƩźƷǤ źĬƩğƓƷͲ {ğŅĻ /źƷǤ ğƌǒĻķ {ĻƩǝźĭĻ 5ĻƌźǝĻƩǤ CźƭĭğƌƌǤ wĻƭƦƚƓƭźĬƌĻ REPORT Large industry is an essential southern New economy and creates thousands of local and regional direct and indirect high paying jobs. The Saint John region generates between 20 to 25% of the P , largely attributable to the presence of heavy industry. The Province derives hundreds of millions of revenue on an annual basis from these industries through Provincial Sales Tax, Fuel Tax, Utility Tax and Personal and Corporate Income Tax. One of the 20 Action Items in the Sustaining Saint John A Three-Part Plan released by the Province on July 10 is Facilitating Growth through Collaboration, which clearly articulates the ŷĻ ƦƩźǝğƷĻ ƭĻĭƷƚƩͲ źƓĭƌǒķźƓŭ źƓķǒƭƷƩǤͲ źƭ ƷŷĻ ĻƓŭźƓĻ ƷŷğƷ ƒğƉĻƭ ƷŷĻ {ğźƓƷ WƚŷƓ ĻĭƚƓƚƒǤ ƒƚǝĻ While Saint John is extremely proud of its industrial character and highly skilled industrial workforce, as well as the on-going contributions of our major local industries to our local community, the City bares a particularly high proportion of - 3 - concentration of heavy industrial activities. The City and its residents are responsible for providing core municipal infrastructure and services to these industries, including protective services, and must contend with issues such as 7-24 industrial activity, road wear and deterioration, environmental impacts, repeated public safety events and impacts, and the land use and property valuation issues associated with multiple residential neighbourhoods co-existing adjacent to heavy industry. highest concentration of heavy industry, including the largest oil refinery in ng terminal and regasification plant, a pulp and paper mill, two paper processing facilities, multiple power generation plants and associated electricity transmission infrastructure, two major natural gas pipelines, an active international deep water Port, a crude oil marine receiving terminal, a refined petroleum products export terminal, a crude oil rail receiving facility, two major rail carriers and rail yards (east and west), and multiple smaller industrial operations located in three major industrial parks and within the Port of Saint John. The City is also in close proximity to a nuclear power plant, with emergency response capabilities provided by the City of Saint John. The proposed Phase 1 Municipal Tax Reform provides a mechanism to allow the Provincial portion of the heavy industrial property taxes currently collected within the City of Saint John (approximately $9 million) to remain in the City as a reflection of the unique impact that large industry has on the City. Phase 1 would be an interim step in the much broader (comprehensive) review of municipal taxation as committed to by the Province of New Brunswick in the recently released Sustaining Saint John A Three-Part Plan. Phase 1 is reflective current financial challenges. Heavy industry located in Saint John currently pays approx. $12 million in property tax to the City on an annual basis, while the Province retains approximately $9 million. SERVICE AND FINANCIAL OUTCOMES Immediately addresses a clear inequity with respect to the distribution of municipal industrial tax revenue within the Province of New Brunswick. Effectively allocates large industrial tax revenue to the local level in Saint John, where the impacts of heavy industry are directly felt. - 4 - Reflects a truly unique community situation Saint John is home to huge contributor to the Provincial economy, GDP and exports. There are very few municipalities in New Brunswick that have a comparably high concentration of industry none have the economic impact that Saint John is home to. Does not create any immediate new taxes or a new or incremental tax burden for large industry. Contributes i Alleviates the Province from future special funding requirements associated with the City of Saint John effective 2020, including year three of the existing Provides an immediate sustainability solution as the City implements a series of sustainability and restructuring Action Items, as well as other strategic recommendations from the Municipal Sustainability Working Group with the Province. A reallocation of $9 million in property tax revenue is transformational for the City of Saint John, but represents less than 1 tenth of 1 percent of projected Provincial revenues in 2019-2020 ($9.85 Billion). Can be positioned as a first (albeit critically important) step with respect to municipal tax reform and a comprehensive review of the municipal tax system by the Province of New Brunswick. Does not require new tax assessment capabilities or resources from the Province. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS The Proposed Phase 1 Municipal Tax Reform was prepared by the City ATTACHMENTS Attachment A: Supporting Slide Deck Attachment B: Proposed Phase 1 Municipal Tax Reform tŷğƭĻ Њ wĻŅƚƩƒ aǒƓźĭźƦğƌ IĻğǝǤ LƓķǒƭƷƩǤ tƩƚƦĻƩƷǤ ğǣ Њ tŷğƭĻ 5źƭĭǒƭƭźƚƓ wĻŅƚƩƒ vǒĻƭƷźƚƓƭ IĻğǝǤ LƓķǒƭƷƩǤ tƩƚƦĻƩƷǤ ğǣ aǒƓźĭźƦğƌ City of Saint John Municipal Heavy Industry Property Tax Reform Background: A foundational component of the GNB City of Saint John Sustainability Working Group has been the recognition of the unique impact and burden that heavy industry has on the City of Saint John. LNG receiving terminal and regasification plant, a pulp and paper mill, two paper processing facilities, multiple power generation plants and associated electricity transmission infrastructure, two major natural gas pipelines, an active international deep water Port, a crude oil marine receiving terminal, a refined petroleum products export terminal, a crude oil rail receiving facility, two major rail carriers and rail yards (east and west), and multiple smaller industrial operations located in three major industrial parks and within the Port of Saint John. The City is also in close proximity to a nuclear power plant, with emergency response capabilities provided by the City of Saint John. truck traffic on a daily basis. Wear caused to the roadway by heavy trucks are proven to be significantly more than an average passenger vehicle. Depending on the weight of the vehicle, heavy truck to car impact on roads ratio can as high as 1,000 to 1. As an industrial city, the City is also exposed to a much higher risk of industrial accidents that require access to trained first responders and significant municipal public safety resources, as evident by the two major industrial EMO activations in 2018 (pipeline incident and a major explosion at the oil refinery). The co-location of heavy industry and residential neighbourhoods is also creating generational land use conflicts, resulting in serious population growth and investment attraction challenges. Specific examples of the impact and challenge of hosting heavy industry adjacent to residential neighbourhoods include the Atlantic Industrial Metal (AIM) facility located on the Port of Saint John, the butane pipeline leak in East Saint John and on-going heavy industrial activity in West Saint John, including resulting truck traffic and localized environmental impacts. Page 1 Diagram 1: \[ğƩŭĻ LƓķǒƭƷƩźğƌ CƚƚƷƦƩźƓƷ {ğźƓƷ WƚŷƓͲ b. Municipal Heavy Industry Property Tax Reform: 100% of the property tax collected from large industry in Saint John stays within the City of Saint John as a reflection of the unique impact that large industry has on the City and the delivery of core municipal and public safety services. This is an interim step in a much broader (comprehensive) review of municipal taxation issues by the Province of New Brunswick. The Province recognizes that Saint John is unique in the amount of industry located and operating within the City, and does not benefit at an equal level with the Province with respect to the full spectrum of direct and indirect taxes generated by large industry, including utility tax, corporate tax, consumption tax (HST), and income tax collected from their employees. In addition, the City currently only benefits from a portion of property taxes on heavy industry: 2019). This includes both light and heavy industry. Industry accounts for approximately heavy industry, 8% light industry). Heavy industry located in Saint John pays approx. $12 million in property tax to the City on an annual basis. Heavy industry located in Saint John pays approx. $9 million in property tax to the Province on an annual basis. Page 2 Advantages of Approach: Immediately addresses a clear inequity with respect to the distribution of municipal industrial tax revenue within the Province of New Brunswick. Effectively allocates large industrial tax revenue to the local level in Saint John, where the impacts of heavy industry are directly felt. Reflects a truly unique community situation highest concentration of heavy industry, which is also a huge contributor to the Provincial economy, GDP and exports. There are very few municipalities in New Brunswick that have a comparably high concentration of industry none have the economic impact that Saint John is home to. Does not create any immediate new taxes or a new or incremental tax burden for large industry. Contributes in a significant way to structural deficit. Alleviates the Province from future special funding requirements associated with the City of Saint John effective 2020, including year three of the existing funding agreement (up to $10.4M in 2020). Provides an immediate sustainability solution as the City implements a series of sustainability and restructuring Action Items, as well as other strategic recommendations from the Municipal Sustainability Working Group with the Province. A reallocation of $8 million in property tax revenue is transformational for the City of Saint John, but represents less than 1 tenth of 1 percent of projected Provincial revenues in 2019-2020 ($9.85 Billion). Can be positioned as a first (albeit critically important) step with respect to municipal tax reform and a comprehensive review of the municipal tax system by the Province of New Brunswick. Does not require new tax assessment capabilities or resources from the Province. SUMMARY COMMUNITY IMPACT STATEMENT ŷĻ {ğźƓƷ WƚŷƓ wĻŭźƚƓ ŭĻƓĻƩğƷĻƭ ğƦƦƩƚǣźƒğƷĻƌǤ ЋЉ Ʒƚ ƦƩƚķǒĭƷ Ͳ ƌğƩŭĻƌǤ ğƷƷƩźĬǒƷğĬƌĻ Ʒƚ ƷŷĻ ƦƩĻƭĻƓĭĻ ƚŅ ƌğƩŭĻ źƓķǒƭƷƩǤ͵ ŷĻ tƩƚǝźƓĭĻ ķĻƩźǝĻƭ ŷǒƓķƩĻķƭ ƚŅ ƒźƌƌźƚƓƭ ƚŅ ƩĻǝĻƓǒĻ ƚƓ ğƓ ğƓƓǒğƌ Ĭğƭźƭ ŅƩƚƒ ƷŷĻƭĻ źƓķǒƭƷƩźĻƭ ƷŷƩƚǒŭŷ tƩƚǝźƓĭźğƌ {ğƌĻƭ ğǣͲ CǒĻƌ ğǣͲ …ƷźƌźƷǤ ğǣ ğƓķ tĻƩƭƚƓğƌ ğƓķ /ƚƩƦƚƩğƷĻ LƓĭƚƒĻ ğǣ͵ Page 3 {ğźƓƷ WƚŷƓ ĬğƩĻƭ ğ ƦğƩƷźĭǒƌğƩƌǤ ŷźŭŷ ƦƩƚƦƚƩƷźƚƓ ƚŅ ƷŷĻ ĭƚƭƷƭ ğƓķ źƒƦğĭƷƭ ğƭ ƷŷĻ ŷƚƭƷ ĭƚƒƒǒƓźƷǤ ŷĻ /źƷǤ ğƓķ źƷƭ ƩĻƭźķĻƓƷƭ ğƩĻ ƩĻƭƦƚƓƭźĬƌĻ ŅƚƩ ƦƩƚǝźķźƓŭ ĭƚƩĻ ƒǒƓźĭźƦğƌ źƓŅƩğƭƷƩǒĭƷǒƩĻ ğƓķ ƭĻƩǝźĭĻƭ Ʒƚ ƷŷĻƭĻ źƓķǒƭƷƩźĻƭͲ źƓĭƌǒķźƓŭ ƦƩƚƷĻĭƷźǝĻ ƭĻƩǝźĭĻƭͲ ğƓķ ƒǒƭƷ ĭƚƓƷĻƓķ ǞźƷŷ źƭƭǒĻƭ ƭǒĭŷ ğƭ АΏЋЍ źƓķǒƭƷƩźğƌ ğĭƷźǝźƷǤͲ Ʃƚğķ ǞĻğƩ ğƓķ ķĻƷĻƩźƚƩğƷźƚƓͲ ĻƓǝźƩƚƓƒĻƓƷğƌ źƒƦğĭƷƭͲ 9ah ğĭƷźǝğƷźƚƓƭ ğƓķ ƩĻƌğƷĻķ ĭƚƒƒǒƓźƷǤ źƒƦğĭƷƭͲ ğƓķ ƷŷĻ ƌğƓķ ǒƭĻ ğƓķ ƦƩƚƦĻƩƷǤ ǝğƌǒğƷźƚƓ źƭƭǒĻƭ ğƭƭƚĭźğƷĻķ ǞźƷŷ ƒǒƌƷźƦƌĻ ƩĻƭźķĻƓƷźğƌ ƓĻźŭŷĬƚǒƩŷƚƚķƭ ĭƚΏĻǣźƭƷźƓŭ ğķƆğĭĻƓƷ Ʒƚ ŷĻğǝǤ źƓķǒƭƷƩǤ͵ ŷĻ ƦƩƚƦƚƭĻķ tŷğƭĻ Њ aǒƓźĭźƦğƌ ğǣ wĻŅƚƩƒ ƦƩƚǝźķĻƭ ğ ƒĻĭŷğƓźƭƒ Ʒƚ ğƌƌƚǞ ƷŷĻ tƩƚǝźƓĭźğƌ ƦƚƩƷźƚƓ ƚŅ ƷŷĻ ŷĻğǝǤ źƓķǒƭƷƩźğƌ ƦƩƚƦĻƩƷǤ ƷğǣĻƭ ĭǒƩƩĻƓƷƌǤ ĭƚƌƌĻĭƷĻķ ǞźƷŷźƓ ƷŷĻ /źƷǤ ƚŅ {ğźƓƷ WƚŷƓ ΛğƦƦƩƚǣźƒğƷĻƌǤ υВ ƒźƌƌźƚƓΜ Ʒƚ ƩĻƒğźƓ źƓ ƷŷĻ /źƷǤ ğƭ ğ ƩĻŅƌĻĭƷźƚƓ ƚŅ ƷŷĻ ǒƓźƨǒĻ źƒƦğĭƷ ƷŷğƷ ƌğƩŭĻ źƓķǒƭƷƩǤ ŷğƭ ƚƓ ƷŷĻ /źƷǤ͵ Page 4 FINANCE COMMITTEE REPORT Report Date July 09, 2019 Meeting Date July 18, 2019 Chairman Councillor Merrithew and Members of Finance Committee SUBJECT: 2020 and 2021 Proposed Draft General Fund Capital Budgets OPEN OR CLOSED SESSION This matter is to be discussed in open session of the Finance Committee. AUTHORIZATION Primary Author Commissioner/Dept. Head City Manager Craig Lavigne Kevin Fudge/Cathy Graham John Collin RECOMMENDATION It is recommended that Finance Committee approve the 2020 and 2021 Proposed Draft General Fund Capital Budget and submit to Common Council for th the July 29 meeting for receive and file. EXECUTIVE SUMMARY Staff presented to the Finance Committee the Proposed Draft General Fund th Capital Budget at the May 29 meeting for receive and file. The following are the summary of changes since the previous meeting. The majority changes relate to a potential new source of Capital funding for the District Energy Project and Deep Municipal Energy Retrofit Project. Also changes were made to ensure Financial Principles, Debt Management and the draft Long Term Capital plan are aligned. - 2 - 2020 Proposed General Fund Capital Budget Summary of Changes Market Place Playground-$100,000.00 Air Handling Units - Phase 1 - Municipal Operations Building$75,000.00 Fundy Quay - Seawall Refurbishment-$1,362,500.00 Canada Games Aquatic Centre (Windows/Exterior)-$350,000.00 Deep Municipal Energy Retrofit $1,101,667.00 District Energy Phase 1 - Market Square$2,440,000.00 Asphalt Renewal$1,175,000.00 2020 - Total Summary of Changes $2,979,167.00 2021 Proposed General Fund Capital Budget Summary of Changes Air Handling Units - Phase 1 - Municipal Operations Building$75,000.00 Carleton Community Centre -Foundation-$25,000.00 Fundy Quay - Seawall Refurbishment$1,362,500.00 Canada Games Aquatic Centre (Windows/Exterior)-$300,000.00 Deep Municipal Energy Retrofit $1,048,333.00 District Energy Phase 1 - Market Square$2,440,000.00 Asphalt Renewal$1,045,151.00 2021 - Total Summary of Changes$5,645,984.00 infrastructure deficit, environmental factors, safety and growth opportunities. The proposed list of individual projects concentrates on addressing multiple priorities. These budgets keep the emphasis on affordability and reducing borrowing to $11 million in 2020 and $10.5 million in 2021. The recently approved Debt Management policy will ensure debt continues to decrease as it has in the last several years with a balance of $119.3 million end of 2014 and estimated to be $102.4 million by the end of 2019. PREVIOUS RESOLUTION May 25, 2019 Finance Committee Meeting - It is recommended that Finance Committee reflect upon the attached document and make any and all inquiries and recommendations to staff; and receive and file this report. STRATEGIC ALIGNMENT The proposed 2020 and 2021 proposed draft General Fund Capital Budgets are aligned with , Capital Budget Policy, Asset Management Plan, - 3 - Central Peninsula Neighborhood Plan, Play SJ, Move SJ, Plan SJ with a focus on growth. REPORT The 2020 and 2021 proposed draft General Fund Capital Budgets align with priorities to support investment in creating a Vibrant, Safe City, offering Valued Service Delivery, Growth and Prosperity and being Fiscally Responsible. The budgets align with the Capital Budget Policy and the Asset Management Policy. The 2020 and 2021 proposed draft General Fund Capital Budgets total $50,621,551 over the 2 years with $29,131,401 to be funded from other funding sources, pay as you go, operating and capital reserves and the remainder $21,490,150 to be funded by debt issue. The budget has funding from federal gas tax fund, federal disaster mitigation adaptation fund, proposed bi-lateral (federal and provincial) funding and other green funding. Over half of the overall budget is coming from other sources. Bi-lateral funding expressions of interest are currently being received by the Province and the first round deadline for submission was June 28, 2019. If the City is not successful in obtaining, staff will come back to Finance Committee with a recommendation to reallocate City funds. 2020 and 2021 PROPOSED CAPITAL BUDGET HIGHLIGHTS The capital budget decision making was guided by the Capital Budget Policy, along with the Asset Management Plan. These documents assist in addressing the infrastructure deficit, while factoring in the needs replace existing assets with the need for new assets. It is aligned with Council Priorities and various City of Saint John plans, with Plan SJ being the overarching plan. Other factors in the decision making revolved around environmental consideration such as mitigation and reduction of greenhouse gas and focusing on growth areas. Capital Budget Policy guided staff in prioritizing the capital budgets based on the following criteria: 1. Mandatory 2. Risk 3. Priority of Council 4. Positive Financial Impact 5. Discretionary The capital budget is investing heavily in asset renewal in order to address the large infrastructure deficit identified in the State of the Infrastructure Report as part of the Asset Management Plan. - 4 - State of the Infrastructure (SOTI) Report The General Fund infrastructure deficit was $121.4 million with an estimated replacement cost of $1.29 billion for those assets. The largest portion of the deficit identified relates to Transportation and Environment. The majority of projects being recommended as part of the capital budget have an letter grade, as measured in the SOTI report, meaning the asset is at high risk of failure and near or beyond its useful life. Focus on Tax Base Growth Fundy Quay The City was awarded a significant amount of funding from the Federal government through the Disaster Mitigation Adaption Fund (DMAF). This funding will split the almost $8.175 million dollar seawall refurbishment between the City ($4.905 million) and Federal Government ($3.27 million) over two years. This project is considered one the largest transformational projects the City is pursuing. The goal is to encourage development and create significant tax base growth opportunities for the City. The seawall project also involves raising the height of the wall. This will be key to future development. It will ensure development can happen on the site and deal with climate change events. Other strategic investments involve a storm project in Millidgeville for $1.0 million that will allow more storm water capacity which will enable more growth in that area of the City. Another area of focus will be a number of major street reconstruction and beautification projects along the St. James Street corridor. This area is a key part of the Central Peninsula Neighborhood Plan to encourage growth and these projects will invest $1.925 million in the St. James Street area. Balancing Infrastructure Replacement with Climate Change The proposed budget includes over $8.9 million in sewer separation projects. Much of this infrastructure due for involve complete street reconstruction. Sewer separation is a key component in dealing with climate change and the extreme weather events that occur with climate change. The budget also includes $7.78 million for replacement of infrastructure that is beyond its useful life with assets that will reduce our carbon footprint. The City has applied for funding for the District Energy Project and Deep Municipal Energy retrofit project and is confident that the City will be successful in receiving funding. These assets being replaced involve various energy efficiency projects, new exterior heat pump replacements at Harbour station, and HVAC upgrades at - 5 - City Market pedway. As well under the District Energy Project, Market Square, major upgrades that will occur with or without funding. Infrastructure Deficit The multi-year budget focuses on some assets that are past their useful life, assets at high risk of failure and assets that are considered extreme risk of failure. This would include new roo of $200K, exterior and foundation work at Carleton Community Centre for $325K, replacing the roof at St. Patrick Street Pedway for $30K and replacing part of the roof at City Market for $700K. The annual street rehabilitation program that includes curbs and sidewalks will see a two year investment of $10.1 million dollars. This program has been a focus of Council for several years. The SOTI report and excellent grade mark shows that the reinvestment in roads has been a successful asset renewal program. There are limited resources being put into arenas until a comprehensive arena strategy is completed. However, there is a need to replace chillers at the Charles Gorman and Peter Murray Arena for a total cost of $200K. As well, the LBR requires replacement of its main electrical service for $100K and ice plant compressor for $75K. The Trade and Convention Centre requires several pieces of equipment replaced that are beyond its useful life and could have safety issues and impact business if the assets fail. Over 2020 and 2021, $261K will be allocated to replace flooring, banquet equipment, refrigeration, kitchen equipment, point of sale system and LED lighting upgrades. Harbour Station will be replacing a Zamboni for $115K to ensure two reliable as required by the Quebec Major Junior Hockey League. equipment over two years as part of its annual equipment replacement program and this money is all funded from internal reserves. The department will be leading the project to replace its 20 year old enterprise reporting system for $3.0 million over two years. This will be a transformational project for all service areas in the City and will require a significant amount of planning, testing and resource requirements to make it successful. This will be a major first step to enable the City to offer more technology based solutions for citizens. Parking commission is continuing to move forward with replacing its aging parking machines with more up to date pay by plate machines and will invest - 6 - $226K over the next two years. Saint John Transit is focused on replacing several bus shelters that are deemed to be safety concerns for a total of $50K. Fleet will budget $4.13 million over two years to replace vehicles and equipment that are past useful lives and with high operating cost. These funds will come from the vehicle reserve. Council will receive a detailed list of vehicles and equipment to approve as the replacement list is compiled. New Capital Investments/Service Enhancements The proposed 2020 and 2021 has a total of $1.014 million for new capital. The last payment towards the Exhibition Field House will be made for $564K in 2020. Also, Harbour Station must upgrade its dasher board and glass system at a cost of $450K to meet requirements of the Quebec Major Junior Hockey League. CONCLUSION Planned capital expenditures total $50,621,551 over the 2 years with $29,131,401 to be funded from other funding sources, pay as you go, operating and capital reserves and the remainder $21,490,150 to be funded by debt issue. The annual funding from other government programs, along with Council fiscal restraint, has helped reduce projected borrowing costs while still investing in needed infrastructure improvements. This multi-year budget is the first step in the long term capital plan which will guide decision making to ensure strategic reinvestments are being made, at the right time, that infrastructure deficit in being addressed, fiscal responsibility is being maintained, while ensuring the City continues to invest in assets to encourage growth. SERVICE AND FINANCIAL OUTCOMES The 2020 and 2021 Proposed Draft General Fund Capital budget will be funded from capital from operating with the balanced being borrowed. The projects chosen for the capital program borrowing have a useful life of approximately 15 years or more. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS Input has been received from all Service Areas, the ABCs, and Senior Leadership Team. ATTACHMENTS Exhibit 1 2020 and 2021 Proposed Draft General Fund Capital Budget Exhibit 2 Alternative 2020 and 2021 Proposed Draft General Fund Capital Budget ƭ ķ Ʒ Ɠ Ļ ǒ ŭ C ķ Ǥ ǒ Ʒ ź . ƌ ź ƌ Ʒ ğ Ʒ … ź Ή Ʀ July 18, 2019 ķ ğ Ɠ / ǒ Finance Committee Ʒ C Ņ ƌ ğ Ʃ ğ Ʃ 5 Ļ Њ Ɠ Ћ Ļ Љ D Ћ Ώ Љ Ћ Љ Ћ SHARE BUDGET - CITY $ 25,650 $ 25,650 $ 58,050 $ 40,500 $ 71,550 $ 225,000 $ 129,600 SHARE BUDGET - OTHER $ 350,400 $ 156,950 $ 109,500 $ 100,000 $ 193,450 $ 1,000,000 $ 1,000,000 $ 69,350 $ 69,350 (Subject to (Subject to (Subject to (Subject to Bilateral (Subject to Bilateral (Subject to Bilateral Funding)Funding)Funding) DESCRIPTION Page 1 Bilateral Funding)Bilateral Funding)Bilateral Funding) overflows - Gas Tax Funding Sewer Separation - Gas Tax Funding Broadview Ave. - (W&S) - Charlotte Street to Street - Sewer Separation Street - Sewer Separation Germain Street - Sewer Separation East Intersection- Sewer Separation Shamrock Park Sewer Renewal - Gas Tax Funding Carmarthen Street - Sewer Separation St. James Street - (W&S) - Prince William Street to Millidgeville - Storm separation and elimination of Germain Street- (W&S) - St. James Street to Lower Celebration Street- (W&S) - Stanley Street to end - Cove Loop - Sewer Separation inflow and infiltration to reduce or eliminate sewer Wentworth Street - (W&S) - Elliot Row to King Street Princess Street - (W&S) - Wentworth Street to Crown Waterloo Street - (W&S) - Haymarket Square to Castle Market Place Playground - Safety Surface Replacement 2020 - Proposed Draft General Fund Capital Budget DEPARTMENT Transportation & Transportation & Transportation & Transportation & Transportation & Transportation & Transportation & Transportation & Transportation & Transportation & Environment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment Services StormStormStormStormStormStormStormStormStorm CATEGORY Parks & Public Spaces SHARE BUDGET - CITY $ 1,645,000 $ 56,700 $ 48,600 $ 45,900 $ 300,000 $ 218,700 $ 128,250 SHARE BUDGET - OTHER $ 591,300 $ 153,300 $ 131,400 $ 346,750 $ 124,100 $ 200,000 $ 1,980,000 $ 1,500,000 Subject to (Subject to (Subject to Bilateral (Subject to Bilateral (Subject to Bilateral Funding)Funding)Funding) DESCRIPTION Page 2 Bilateral Funding)Bilateral Funding) Engineering Investigations and Design Street Reconstruction - Gas Tax Funding Renewal Annual Program - Pay as you go Renewal Annual Program - Gas Tax Funding Asphalt Roadway Resurfacing, Curb & Sidewalk Asphalt Roadway Resurfacing, Curb & Sidewalk St. James Street - (W&S) - Prince William Street to Germain Street- (W&S) - St. James Street to Lower Celebration Street- (W&S) - Stanley Street to end - Street - Street Reconstruction Germain Street - Street Reconstruction (Street - Street Reconstruction East Intersection- Street Reconstruction Wentworth Street - (W&S) - Elliot Row to King Street Princess Street - (W&S) - Wentworth Street to Crown Waterloo Street - (W&S) - Haymarket Square to Castle Cove Loop - Street Reconstruction 2020 - Proposed Draft General Fund Capital Budget DEPARTMENT Transportation & Transportation & Transportation & Transportation & Transportation & Transportation & Transportation & Transportation & Transportation & Environment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment Services CATEGORY TransportationTransportationTransportationTransportationTransportationTransportationTransportationTransportationTransportation SHARE BUDGET - CITY $ 1,635,000 $ 1,464,000 $ 75,000 $ 75,000 $ 25,000 $ 60,000 $ 128,250 $ 300,000 $ 700,000 $ 150,000 $ 575,000 $ 175,000 $ 100,000 $ 115,000 SHARE BUDGET - OTHER $ 346,750 $ 606,667 $ 976,000 $ 1,090,000 (Subject to Building Funding) DESCRIPTION Replace Truck Page 3 Replace Zamboni Bilateral Funding) Chiller Replacement Heat Pump Replacement Ice Plant - Replace Compressor Market Slip Sea Wall Protection Coating Carleton Community Centre - Exterior Work Broadview Ave. - (W&S) - Charlotte Street to Courtney Bay Causeway - Replace Guide Rails Saint John City Market Roof Upper and Lower Air Handling Units - Phase 1 - Municipal Operations *Deep Municipal Energy Retrofit (Subject to Federal *District Energy Phase 1 (Subject to Federal Funding) Fundy Quay - Seawall Refurbishment - Funding DMAF Carmarthen Street -Street Reconstruction 2020 - Proposed Draft General Fund Capital Budget ManagementManagementManagementManagementManagement DEPARTMENT Transportation & Transportation & Asset and Energy Asset and Energy Asset and Energy Asset and Energy Asset and Energy Transportation & Transportation & Transportation & Regional FacilitiesRegional FacilitiesRegional Facilities Environment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment Services Growth and Development Centre CATEGORY Fundy Quay Market Square TransportationTransportation Harbour StationHarbour StationHarbour Station Lord Beaverbrook Municipal BuildingsMunicipal BuildingsMunicipal Buildings Peter Murray Arena Carleton Community Saint John City Market SHARE BUDGET - CITY $ 5,000 $ 1,500,000 $ 50,000 $ 25,000 $ 76,000 $ 30,000 $ 40,000 $ 564,400 $ 113,000 $ 564,400 $ 10,999,800 $ 10,435,400 SHARE BUDGET - OTHER $ 835,000 $ - $ 2,065,000 $ 13,995,267 $ 13,995,267 Road) DESCRIPTION Page 4 Security Cameras Ovens, Hot Boxes Fleet Replacement Program LED Lighting in Various Areas replacement, energy efficiency Replacement of 17 Parking Meters Exhibition Field House Year 3 of 3 year Fire Panel Replacement, Pump shut off valves Multiple Bus Shelters (Waterloo, Mystery Lake, Replace Various Kitchen Equipment - Convection Update POS systems - current system out of service Mountainview, Duke St. West, Anglin Dr, Boars Head IT Infrastructure Replacement/Upgrades/ERP System 2020 - Proposed Draft General Fund Capital Budget Services 2020 New Capital Investment 2020 Capital Asset Replacement DEPARTMENT Transportation & Transportation & Regional FacilitiesRegional FacilitiesRegional FacilitiesRegional FacilitiesRegional Facilities Corporate Services Environment ServicesEnvironment Services Total 2020 General Fund Capital Budget Finance and Administration Fleet CentreCentreCentreCentreCentre CATEGORY Saint John Transit Saint John Parking Trade and Convention Trade and Convention Trade and Convention Trade and Convention Canada Games Aquatic Information Technology SHARE BUDGET - CITY $ 64,800 $ 40,500 $ 85,050 $ 48,600 $ 35,100 $ 33,750 $ 150,000 $ 102,600 $ 340,000 SHARE BUDGET - OTHER $ 175,200 $ 277,400 $ 109,500 $ 229,950 $ 131,400 $ 94,900 $ 91,250 (Subject to Bilateral (Subject to Bilateral (Subject to Bilateral (Subject to Bilateral (Subject to Bilateral Funding) Funding)Funding)Funding)Funding) (Subject to Bilateral Funding)(Subject to Bilateral Funding) DESCRIPTION Page 1 - Sewer Separation Clock Replacement Street - Sewer Separation Street - Sewer Separation Sewer Separation Sewer Separation Brittain Street - (W&S) - Pitt Street to Wentworth Peters Street - (W&S) - Waterloo Street to Coburg Cove Loop - Sewer Separation Charlotte Street - (W&S) - St. James Street to Lover Mecklenburg Street - (W&S) - Wentworth Street to St. James Street - (W&S) - Germain Street to Sydney Garden Street - (W&S) - Coburg Street to City Road - Shamrock Score Clock/Field Work & Memorial Score Crown Street - Sewer Separation Pitt Street - (W&S) - St. James Street to Broad Street - Rodney Street - (W&S) - Market Place to Watson Street Street- Sewer Separation 2021 - Proposed Draft General Fund Capital Budget DEPARTMENT Transportation & Transportation & Transportation & Transportation & Transportation & Transportation & Transportation & Transportation & Transportation & Environment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment Services StormStormStormStormStormStormStormStorm CATEGORY Parks & Public Spaces SHARE BUDGET - CITY $ 1,100,000 $ 75,600 $ 72,900 $ 300,000 $ 117,450 $ 132,300 $ 124,200 $ 108,000 SHARE BUDGET - OTHER $ 317,550 $ 204,400 $ 357,700 $ 335,800 $ 292,000 $ 197,100 $ 2,395,151 $ 1,500,000 (Subject to (Subject to Bilateral (Subject to Bilateral (Subject to Bilateral (Subject to Bilateral Funding)(Subject to Bilateral Funding) Funding)Funding)Funding) DESCRIPTION Page 2 Bilateral Funding) Engineering Investigations and Design Renewal Annual Program - Pay As You Go Renewal Annual Program - Gas Tax Funding Asphalt Roadway Resurfacing, Curb & Sidewalk Asphalt Roadway Resurfacing, Curb & Sidewalk Crown Street - Street Reconstruction Peters Street - (W&S) - Waterloo Street to Coburg Street - Street Reconstruction Street - Street Reconstruction Charlotte Street - (W&S) - St. James Street to Lover Mecklenburg Street - (W&S) - Wentworth Street to St. James Street - (W&S) - Germain Street to Sydney Garden Street - (W&S) - Coburg Street to City Road - Street Reconstruction Street Reconstruction Pitt Street - (W&S) - St. James Street to Broad Street - Cove Loop - Street Reconstruction 2021 - Proposed Draft General Fund Capital Budget DEPARTMENT Transportation & Transportation & Transportation & Transportation & Transportation & Transportation & Transportation & Transportation & Transportation & Environment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment Services CATEGORY TransportationTransportationTransportationTransportationTransportationTransportationTransportationTransportationTransportation SHARE BUDGET - CITY $ 1,635,000 $ 1,464,000 $ 67,500 $ 30,000 $ 30,000 $ 75,000 $ 550,000 $ 360,000 $ 575,000 $ 200,000 SHARE BUDGET - OTHER $ 182,500 $ 553,333 $ 976,000 $ 1,635,000 $ 2,180,000 (Subject to Bilateral Building Funding) Funding) DESCRIPTION Page 3 - Sewer Separation City Market Pedway HVAC Upgrade Firestations # 5,7,8 - Roof Replacement St. Patrick Street Pedway - Roof Replacement Brittain Street - (W&S) - Pitt Street to Wentworth additional services for approximately $220,000 to Street- Street Reconstruction move overhead high voltage lines to underground Air Handling Units - Phase 2 - Municipal Operations Charlotte Street - Trinity Church to Princess Street - Street Reconstruction. Saint John Energy to provide *Deep Municipal Energy Retrofit (Subject to Federal Fundy Quay - Seawall Refurbishment - Pay as you go *District Energy Phase 1 (Subject to Federal Funding) Fundy Quay - Seawall Refurbishment - Funding DMAF Rodney Street - (W&S) - Market Place to Watson Street 2021 - Proposed Draft General Fund Capital Budget ManagementManagementManagementManagementManagementManagementManagementManagement DEPARTMENT Transportation & Transportation & Transportation & Asset and Energy Asset and Energy Asset and Energy Asset and Energy Asset and Energy Asset and Energy Asset and Energy Asset and Energy Environment ServicesEnvironment ServicesEnvironment Services CATEGORY Fundy QuayFundy Quay Market Square TransportationTransportationTransportation Municipal BuildingsMunicipal BuildingsMunicipal BuildingsMunicipal BuildingsMunicipal Buildings 450,000 450,000 SHARE BUDGET - CITY $ $ $ 1,500,000 $ 50,000 $ 80,000 $ 30,000 $ 15,000 $ 10,000 $ 125,000 $ 100,000 $ 100,000 $ 113,000 $ 10,040,350 SHARE BUDGET - OTHER $ 835,000 $ - $ 2,065,000 $ 15,136,134 DESCRIPTION Walkin Fridge) Page 4 Security Upgrades Fleet Replacement Chiller Replacement Heat Pump Replacement Bus Shelter - Market Square Foundation - Water proofing Dasher Board and Glass System Main Electrical Service Upgrade Replacement of 17 Parking Meters Replace Flooring and Staging Equipment Replace Equipment (Banquet Equipment & Tables, IT Infrastructure Replacement/Upgrades/ERP System 2021 - Proposed Draft General Fund Capital Budget Services 2021 New Capital Investment DEPARTMENT Transportation & Transportation & Transportation & Transportation & Transportation & Regional FacilitiesRegional FacilitiesRegional FacilitiesRegional FacilitiesRegional Facilities Corporate Services Environment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment Services Total 2021 General Fund Capital Budget Finance and Administration Fleet CentreCentreCentreCentre CATEGORY Harbour StationHarbour Station Saint John Transit Lord Beaverbrook Saint John Parking Carleton Community Trade and Convention Trade and Convention Trade and Convention Charles Gorman Arena Information Technology SHARE 10,490,350 BUDGET - CITY $ SHARE BUDGET - OTHER $ 15,136,134 DESCRIPTION Page 5 2021 - Proposed Draft General Fund Capital Budget DEPARTMENT Total 2021 General Fund Capital Budget CATEGORY SHARE BUDGET - CITY $ 25,650 $ 25,650 $ 58,050 $ 40,500 $ 71,550 $ 225,000 $ 129,600 SHARE BUDGET - OTHER $ 350,400 $ 156,950 $ 109,500 $ 100,000 $ 193,450 $ 1,000,000 $ 1,000,000 $ 69,350 $ 69,350 (Subject to (Subject to (Subject to (Subject to Bilateral (Subject to Bilateral (Subject to Bilateral Funding)Funding)Funding) DESCRIPTION Page 1 Bilateral Funding)Bilateral Funding)Bilateral Funding) overflows - Gas Tax Funding Sewer Separation - Gas Tax Funding Broadview Ave. - (W&S) - Charlotte Street to Street - Sewer Separation Street - Sewer Separation Germain Street - Sewer Separation East Intersection- Sewer Separation Shamrock Park Sewer Renewal - Gas Tax Funding Carmarthen Street - Sewer Separation St. James Street - (W&S) - Prince William Street to Millidgeville - Storm separation and elimination of Germain Street- (W&S) - St. James Street to Lower Celebration Street- (W&S) - Stanley Street to end - Cove Loop - Sewer Separation inflow and infiltration to reduce or eliminate sewer Wentworth Street - (W&S) - Elliot Row to King Street Princess Street - (W&S) - Wentworth Street to Crown Waterloo Street - (W&S) - Haymarket Square to Castle Market Place Playground - Safety Surface Replacement DEPARTMENT Transportation & Transportation & Transportation & Transportation & Transportation & Transportation & Transportation & Transportation & Transportation & Transportation & Environment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment Services Exhibit 2 - 2020 Proposed Draft General Fund Capital Budget (Maintain Infrastructure Deficit) StormStormStormStormStormStormStormStormStorm CATEGORY Parks & Public Spaces SHARE BUDGET - CITY $ 1,645,000 $ 56,700 $ 48,600 $ 45,900 $ 300,000 $ 218,700 $ 128,250 SHARE BUDGET - OTHER $ 591,300 $ 153,300 $ 131,400 $ 346,750 $ 124,100 $ 200,000 $ 1,480,000 $ 1,500,000 Subject to (Subject to (Subject to Bilateral (Subject to Bilateral (Subject to Bilateral Funding)Funding)Funding) DESCRIPTION Page 2 Bilateral Funding)Bilateral Funding) Engineering Investigations and Design Street Reconstruction - Gas Tax Funding Renewal Annual Program - Pay as you go Renewal Annual Program - Gas Tax Funding Asphalt Roadway Resurfacing, Curb & Sidewalk Asphalt Roadway Resurfacing, Curb & Sidewalk St. James Street - (W&S) - Prince William Street to Germain Street- (W&S) - St. James Street to Lower Celebration Street- (W&S) - Stanley Street to end - Street - Street Reconstruction Germain Street - Street Reconstruction (Street - Street Reconstruction East Intersection- Street Reconstruction Wentworth Street - (W&S) - Elliot Row to King Street Princess Street - (W&S) - Wentworth Street to Crown Waterloo Street - (W&S) - Haymarket Square to Castle Cove Loop - Street Reconstruction DEPARTMENT Transportation & Transportation & Transportation & Transportation & Transportation & Transportation & Transportation & Transportation & Transportation & Environment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment Services Exhibit 2 - 2020 Proposed Draft General Fund Capital Budget (Maintain Infrastructure Deficit) CATEGORY TransportationTransportationTransportationTransportationTransportationTransportationTransportationTransportationTransportation SHARE BUDGET - CITY $ 1,635,000 $ 1,464,000 $ 75,000 $ 75,000 $ 25,000 $ 60,000 $ 128,250 $ 300,000 $ 700,000 $ 150,000 $ 575,000 $ 175,000 $ 100,000 $ 115,000 SHARE BUDGET - OTHER $ 346,750 $ 606,667 $ 976,000 $ 1,090,000 (Subject to Building Funding) DESCRIPTION Replace Truck Page 3 Replace Zamboni Bilateral Funding) Chiller Replacement Heat Pump Replacement Ice Plant - Replace Compressor Market Slip Sea Wall Protection Coating Carleton Community Centre - Exterior Work Broadview Ave. - (W&S) - Charlotte Street to Courtney Bay Causeway - Replace Guide Rails Saint John City Market Roof Upper and Lower Air Handling Units - Phase 1 - Municipal Operations *Deep Municipal Energy Retrofit (Subject to Federal *District Energy Phase 1 (Subject to Federal Funding) Fundy Quay - Seawall Refurbishment - Funding DMAF Carmarthen Street -Street Reconstruction ManagementManagementManagementManagementManagement DEPARTMENT Transportation & Transportation & Asset and Energy Asset and Energy Asset and Energy Asset and Energy Asset and Energy Transportation & Transportation & Transportation & Regional FacilitiesRegional FacilitiesRegional Facilities Environment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment Services Growth and Development Exhibit 2 - 2020 Proposed Draft General Fund Capital Budget (Maintain Infrastructure Deficit) Centre CATEGORY Fundy Quay Market Square TransportationTransportation Harbour StationHarbour StationHarbour Station Lord Beaverbrook Municipal BuildingsMunicipal BuildingsMunicipal Buildings Peter Murray Arena Carleton Community Saint John City Market SHARE BUDGET - CITY $ 5,000 $ 1,500,000 $ 50,000 $ 25,000 $ 76,000 $ 30,000 $ 40,000 $ 564,400 $ 113,000 $ 564,400 $ 10,999,800 $ 10,435,400 SHARE BUDGET - OTHER $ 835,000 $ - $ 2,065,000 $ 13,495,267 $ 13,495,267 Road) DESCRIPTION Page 4 Security Cameras Ovens, Hot Boxes Fleet Replacement Program LED Lighting in Various Areas replacement, energy efficiency Replacement of 17 Parking Meters Exhibition Field House Year 3 of 3 year Fire Panel Replacement, Pump shut off valves Multiple Bus Shelters (Waterloo, Mystery Lake, Replace Various Kitchen Equipment - Convection Update POS systems - current system out of service Mountainview, Duke St. West, Anglin Dr, Boars Head IT Infrastructure Replacement/Upgrades/ERP System Services 2020 New Capital Investment 2020 Capital Asset Replacement DEPARTMENT Transportation & Transportation & Regional FacilitiesRegional FacilitiesRegional FacilitiesRegional FacilitiesRegional Facilities Corporate Services Environment ServicesEnvironment Services Total 2020 General Fund Capital Budget Finance and Administration Exhibit 2 - 2020 Proposed Draft General Fund Capital Budget (Maintain Infrastructure Deficit) Fleet CentreCentreCentreCentreCentre CATEGORY Saint John Transit Saint John Parking Trade and Convention Trade and Convention Trade and Convention Trade and Convention Canada Games Aquatic Information Technology SHARE BUDGET - CITY $ 64,800 $ 40,500 $ 85,050 $ 48,600 $ 35,100 $ 33,750 $ 150,000 $ 102,600 $ 340,000 SHARE BUDGET - OTHER $ 175,200 $ 277,400 $ 109,500 $ 229,950 $ 131,400 $ 94,900 $ 91,250 (Subject to Bilateral (Subject to Bilateral (Subject to Bilateral (Subject to Bilateral (Subject to Bilateral Funding) Funding)Funding)Funding)Funding) (Subject to Bilateral Funding)(Subject to Bilateral Funding) DESCRIPTION Page 1 - Sewer Separation Clock Replacement Street - Sewer Separation Street - Sewer Separation Sewer Separation Sewer Separation Brittain Street - (W&S) - Pitt Street to Wentworth Peters Street - (W&S) - Waterloo Street to Coburg Cove Loop - Sewer Separation Charlotte Street - (W&S) - St. James Street to Lover Mecklenburg Street - (W&S) - Wentworth Street to St. James Street - (W&S) - Germain Street to Sydney Garden Street - (W&S) - Coburg Street to City Road - Shamrock Score Clock/Field Work & Memorial Score Crown Street - Sewer Separation Pitt Street - (W&S) - St. James Street to Broad Street - Rodney Street - (W&S) - Market Place to Watson Street Street- Sewer Separation DEPARTMENT Transportation & Transportation & Transportation & Transportation & Transportation & Transportation & Transportation & Transportation & Transportation & Environment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment Services Exhibit 2 - 2021 Proposed Draft General Fund Capital Budget (Maintain Infrastructure Deficit) StormStormStormStormStormStormStormStorm CATEGORY Parks & Public Spaces SHARE BUDGET - CITY $ 1,100,000 $ 75,600 $ 72,900 $ 300,000 $ 117,450 $ 132,300 $ 124,200 $ 108,000 SHARE BUDGET - OTHER $ 317,550 $ 204,400 $ 357,700 $ 335,800 $ 292,000 $ 197,100 $ 2,895,151 $ 1,500,000 (Subject to (Subject to Bilateral (Subject to Bilateral (Subject to Bilateral (Subject to Bilateral Funding)(Subject to Bilateral Funding) Funding)Funding)Funding) DESCRIPTION Page 2 Bilateral Funding) Engineering Investigations and Design Renewal Annual Program - Pay As You Go Renewal Annual Program - Gas Tax Funding Asphalt Roadway Resurfacing, Curb & Sidewalk Asphalt Roadway Resurfacing, Curb & Sidewalk Crown Street - Street Reconstruction Peters Street - (W&S) - Waterloo Street to Coburg Street - Street Reconstruction Street - Street Reconstruction Charlotte Street - (W&S) - St. James Street to Lover Mecklenburg Street - (W&S) - Wentworth Street to St. James Street - (W&S) - Germain Street to Sydney Garden Street - (W&S) - Coburg Street to City Road - Street Reconstruction Street Reconstruction Pitt Street - (W&S) - St. James Street to Broad Street - Cove Loop - Street Reconstruction DEPARTMENT Transportation & Transportation & Transportation & Transportation & Transportation & Transportation & Transportation & Transportation & Transportation & Environment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment Services Exhibit 2 - 2021 Proposed Draft General Fund Capital Budget (Maintain Infrastructure Deficit) CATEGORY TransportationTransportationTransportationTransportationTransportationTransportationTransportationTransportationTransportation SHARE BUDGET - CITY $ 1,635,000 $ 1,464,000 $ 67,500 $ 30,000 $ 30,000 $ 75,000 $ 550,000 $ 360,000 $ 575,000 $ 200,000 SHARE BUDGET - OTHER $ 182,500 $ 135,000 $ 553,333 $ 976,000 $ 1,180,000 (Subject to Bilateral Building Funding) Funding) DESCRIPTION Page 3 - Sewer Separation City Market Pedway HVAC Upgrade Firestations # 5,7,8 - Roof Replacement St. Patrick Street Pedway - Roof Replacement Brittain Street - (W&S) - Pitt Street to Wentworth additional services for approximately $220,000 to Street- Street Reconstruction move overhead high voltage lines to underground Air Handling Units - Phase 2 - Municipal Operations Charlotte Street - Trinity Church to Princess Street - Street Reconstruction. Saint John Energy to provide *Deep Municipal Energy Retrofit (Subject to Federal Fundy Quay - Seawall Refurbishment - Pay As You Go*District Energy Phase 1 (Subject to Federal Funding) Fundy Quay - Seawall Refurbishment - Funding DMAF Rodney Street - (W&S) - Market Place to Watson Street ManagementManagementManagementManagementManagementManagementManagementManagement DEPARTMENT Transportation & Transportation & Transportation & Asset and Energy Asset and Energy Asset and Energy Asset and Energy Asset and Energy Asset and Energy Asset and Energy Asset and Energy Environment ServicesEnvironment ServicesEnvironment Services Exhibit 2 - 2021 Proposed Draft General Fund Capital Budget (Maintain Infrastructure Deficit) CATEGORY Fundy QuayFundy Quay Market Square TransportationTransportationTransportation Municipal BuildingsMunicipal BuildingsMunicipal BuildingsMunicipal BuildingsMunicipal Buildings 450,000 450,000 SHARE BUDGET - CITY $ $ $ 1,500,000 $ 50,000 $ 80,000 $ 30,000 $ 15,000 $ 10,000 $ 125,000 $ 100,000 $ 100,000 $ 113,000 $ 10,040,350 SHARE BUDGET - OTHER $ 835,000 $ - $ 2,065,000 $ 13,136,134 DESCRIPTION Walkin Fridge) Page 4 Security Upgrades Fleet Replacement Chiller Replacement Heat Pump Replacement Bus Shelter - Market Square Foundation - Water proofing Dasher Board and Glass System Main Electrical Service Upgrade Replacement of 17 Parking Meters Replace Flooring and Staging Equipment Replace Equipment (Banquet Equipment & Tables, IT Infrastructure Replacement/Upgrades/ERP System Services 2021 New Capital Investment DEPARTMENT Transportation & Transportation & Transportation & Transportation & Transportation & Regional FacilitiesRegional FacilitiesRegional FacilitiesRegional FacilitiesRegional Facilities Corporate Services Environment ServicesEnvironment ServicesEnvironment ServicesEnvironment ServicesEnvironment Services Total 2021 General Fund Capital Budget Finance and Administration Exhibit 2 - 2021 Proposed Draft General Fund Capital Budget (Maintain Infrastructure Deficit) Fleet CentreCentreCentreCentre CATEGORY Harbour StationHarbour Station Saint John Transit Lord Beaverbrook Saint John Parking Carleton Community Trade and Convention Trade and Convention Trade and Convention Charles Gorman Arena Information Technology SHARE 10,490,350 BUDGET - CITY $ SHARE BUDGET - OTHER $ 13,136,134 DESCRIPTION Page 5 DEPARTMENT Total 2021 General Fund Capital Budget Exhibit 2 - 2021 Proposed Draft General Fund Capital Budget (Maintain Infrastructure Deficit) CATEGORY FINANCE COMMITTEE REPORT Report Date July 09, 2019 Meeting Date July 18, 2019 Chairman Councillor Merrithew and Members of Finance Committee SUBJECT: 2020 -2021 Proposed Draft Utility Fund Capital Budget OPEN OR CLOSED SESSION This matter is to be discussed in open session of Finance Committee. AUTHORIZATION Primary Author Commissioner/Dept. Head City Manager Craig Lavigne Brent McGovern John Collin RECOMMENDATION It is recommended that Finance Committee approve the 2020 and 2021 Proposed Draft General Fund Capital Budget and submit to Common Council for th the July 29 meeting for receive and file. EXECUTIVE SUMMARY The Utility is proposing a very limited multi-year capital budget for 2020 - 2021 that focuses on leveraging monies from other levels of government for investments being made by the Utility. Increased debt, limited growth, a large infrastructure deficit and escalating rates are challenges facing the Utility for both the medium and long term. A new rate structure to be completed in 2019, along with the Long Term Financial plan to be completed in 2019 will provide the road map for the Utility to deal with these challenges. PREVIOUS RESOLUTION N/A STRATEGIC ALIGNMENT The proposed 2020 - 2021 Utility Fund Capital Budget is aligned with priorities, Asset Management Plan, and Capital Budget policy. - 2 - REPORT The proposed 2020 - 2021 Draft Utility Capital Budget is a total of $26,215,000. Funding from other sources, (Gas tax, government funding, etc.) is $15,931,500 over two years and Saint J and will be funded from pay as you go. The completion of the Safe Clean Drinking Water project and Harbour Cleanup end of 2017 (2018 - $101 million). The Utility will continue to focus on debt reduction and in order to achieve this Utility will not borrow any money for its 2020-2021 capital program. This significant debt coupled with escalated rates, stagnant growth and pending changes to industrial rate structures will be challenging for the Utility as it tackles the infrastructure deficit. The increased deficit as reported to Council as part of the State of the Infrastructure report is approximately $308,276,480 which represents over 75% The Utility received funding recently as disaster mitigation adaptation fund (DMAF). The Utility will spend approximately $10.2 million over the next 5-6 years raising and rebuilding critical infrastructure that was prone to flooding. The cost will now be spilt $4.084 Federal Share and $6.126 Utility Share. The completion of the rate study in 2019, along with the Asset Management Plan and Long Term Financial asset replacement and how to fund the infrastructure deficit to ensure services are reliably provided to rate payers while balancing the ability to fund more investments in infrastructure renewal. Infrastructure Renewal Water and Sanitary The proposed budget focuses on assets that are well past their useful life, subject to risk of failure and is some cases extreme risk of failure with severe consequences such in the One Mile Life Station. There are several proposed street rebuild projects that are included in the budget and most of these are projects involve the general fund. These projects have assets underground and are at a high risk of failure due to their age and material type. Numerous streets within the draft program have terra cotta sanitary sewers, some of which were installed in 1889 & 1895 and cast iron watermain installed in the early 1900s. The total capital for the Utility on street rebuilds is approximately $7.8 million over two years and some of these street sections include; Wentworth Street, - 3 - Germain Street, Lower Cove Loop, Waterloo Street, Celebration Street, Princess, Peters Street, Brittain Street, Pitt Street, Rodney Street and St. James Street. Many of the street reconstructions are in the prime development areas. St. James Street, Germain Street and Charlotte Street are prime examples of leveraging assets that need to be replaced and aligning with growth. St. James Street for example was listed on the Central Peninsula Neighborhood plan as key corridor and this transformational project will be coordinated between; Transportation, Water and Growth and Development. Another project that benefits both the Utility and helps to grow Saint John is the asset renewal project Lakewood Heights Sanitary System. This project is geared towards asset renewal and environmental protection, while creating capacity on the system for growth initiatives without having to build new infrastructure a best use of assets. The budget also includes phase seventeen and eighteen of watermain cleaning and lining that will continue to extend the life of these assets while minimizing the need for investment by lining as opposed to replacing. There is also structural line of sewer line in both years and this will also extend the life of these assets. There is a major investment being made at the One Mile Lift Station in 2020. The existing lift station is at the end of its life and needs to ensure there is reliability around the collection of wastewater. There is two other wastewater lift stations at Greenhead Road and Beach Crescent that not only need to be rebuilt, these stations will also be raised to ensure they can withstand future flood events and these projects have received funding under the DMAF program. The other major project under the DMAF program in this multiyear budget is the complete upgrade and reconstruction of the Musquash Water Pump Station. This asset will also be rebuilt to ensure flood proofing. The budget also includes a fleet replacement program for any vehicles and equipment past its useful life or with extraordinary operating costs. In previous years the Utility funded its fleet reserve directly to the General fund fleet reserve and all vehicles and equipment were funded from that reserve. These reserves have now been separated to ensure each entity is properly segregating its reserves. The budget only includes one new asset which is a wastewater pumping station at Prospect Street West and this is two ensure all wastewater is properly being directed for treatment at the Lancaster Lagoon treatment plant. - 4 - Conclusion The 2020-2021 budgets is focused on leveraging as much additional funding the Utility can secure along with its smaller capital from operating program. Projects have been chosen are long past their useful life and have a high risk of failure. There are several projects that are asset renewal that are being done to replace or extend the life of the asset but also have a positive impact on growth. The 2020 - 2021 Draft Utility Capital budget will continue to focus on ensuring assets can provide reliable services to all customers, meet all environmental regulations and mitigate against future climate change events. SERVICE AND FINANCIAL OUTCOMES The 2020 - 2021 Utility Fund Capital budget will be funded from the operations (pay as you go) and from other sources of funding. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS Input and coordination was received from Engineering, Senior Leadership Team, Growth and Community Development, Finance, Transportation and Environment. ATTACHMENTS Exhibit 1 - 2020 - 2021 Proposed Draft Utility Capital Budget 23-May-19 THE CITY OF SAINT JOHN SAINT JOHN WATER CAPITAL PROGRAM SUMMARY W & S UTILITY FUND Proposed Program Summary For - 2020 No. ofOtherUtility Category Total ProjectsShareShare Industrial Water Renewal - West1$1,020,000$1,700,000$2,720,000 Infrastructure Renewal - Sanitary13$6,938,450$1,546,550$8,485,000 Infrastructure Renewal - Water13$2,551,200$1,873,800$4,425,000 TOTALS: 27$10,509,650$5,120,350$15,630,000 Summary of Capital Costs (Utility Share) Industrial Water Renewal - West 33.2% Infrastructure Renewal - Water 36.6% Infrastructure Renewal - Sanitary 30.2% Page1 of THE CITY OF SAINT JOHN 23-May-19 SAINT JOHN WATER PROPOSED W & S FUND PROGRAM 2020 MDH: MUNICIPAL DESIGNATED HIGHWAYS PDH: PROVINCIALLY DESIGNATED HIGHWAYS This is a tentative program listing of proposed capital projects. RDH: REGIONALLY DESIGNATED HIGHWAYS w&s: WATER AND SEWER RELATED PROJECTS This list has not been approved by Common Council. G&D: PROJECT IS FOR GROWTH AND DEVELOPMENT Priority assignments are subject to change at any time. *: PROJECTS DEPENDANT ON FUNDING FROM OTHERS Industrial Water Renewal - West OtherUtility ProjectLocationDescription ShareShare * Musquash Water Pump MusquashUpgrade/reconstruction - appropriate pump 1,020,0001,700,000 Stationsizing, electrical upgrades, flood proofing, etc. Including design and construction management services. Phase A. Project to be partially funded under DMAF. $1,020,000$1,700,000 TOTAL: Page2 of THE CITY OF SAINT JOHN 23-May-19 SAINT JOHN WATER PROPOSED W & S FUND PROGRAM 2020 MDH: MUNICIPAL DESIGNATED HIGHWAYS PDH: PROVINCIALLY DESIGNATED HIGHWAYS This is a tentative program listing of proposed capital projects. RDH: REGIONALLY DESIGNATED HIGHWAYS w&s: WATER AND SEWER RELATED PROJECTS This list has not been approved by Common Council. G&D: PROJECT IS FOR GROWTH AND DEVELOPMENT Priority assignments are subject to change at any time. *: PROJECTS DEPENDANT ON FUNDING FROM OTHERS Infrastructure Renewal - Sanitary OtherUtility ProjectLocationDescription ShareShare G&D* Germain StreetSt. James Street to Lower Cove Renew 100 m of 375 mm T.C sanitary sewer 105,85039,150 Loop(with an in service year of 1884), including design and construction management services. Subject to successful funding under Bilateral Funding. G&D* Lower Cove LoopCharlotte Street to Germain Install 150 m of 525 mm sanitary sewer, 248,20091,800 Streetincluding design and construction management services. Subject to successful funding under Bilateral Funding. * One Mile Lift StationRothesay Avenue at Russell New pumping station, new screening channel 5,000,0000 Streetstructure and associated building to replace the existing pumping station that is at the end of asset life to provide for relible collection of wastewater, including design and construction management services. Project to be funded under the G.T.F. Structural liningVarious LocationsStructurally line and point repairs to sanitary 0225,000 sewers, including design and construction management services. * WWPS Lift Station C515 Green Head RoadReconstruct lift station above flood level to 200,000300,000 provide for reliable collection of wastewater, including design and construction management services Project to be partially funded under DMAF. * Douglas AvenueCivic 399 to 425Install approx. 150m of 200mm and 27m of 300,00025,000 150mm sanitary sewer, including land, design, and construction management services. Project to be partially funded under G.T.F. Wastewater PumpingProspect Street West at Walnut Pumping station, land acquisition, and required 0520,000 Streetpiping to direct flows to sewer on Main Street West for treatment at the Lancaster Lagoon, including construction management services. * Wentworth StreetElliott Row through King Street Renew 90 m of 300 mm T.C. sanitary sewer 83,95031,050 East Intersection(Condition Grade of 4 with a year in service of 1867), including construction management services. Subject to successful funding under Bilateral Funding. * Waterloo StreetHaymarket Square to Castle Renew approx. 330m of 300mm and 375mm 299,300110,700 StreetT.C.sanitary sewer ( Condition Grade of 5 with a in service year of 1869), including design and construction management services. Subject to successful funding under Bilateral Funding. Page3 of THE CITY OF SAINT JOHN 23-May-19 SAINT JOHN WATER PROPOSED W & S FUND PROGRAM 2020 MDH: MUNICIPAL DESIGNATED HIGHWAYS PDH: PROVINCIALLY DESIGNATED HIGHWAYS This is a tentative program listing of proposed capital projects. RDH: REGIONALLY DESIGNATED HIGHWAYS w&s: WATER AND SEWER RELATED PROJECTS This list has not been approved by Common Council. G&D: PROJECT IS FOR GROWTH AND DEVELOPMENT Priority assignments are subject to change at any time. *: PROJECTS DEPENDANT ON FUNDING FROM OTHERS Infrastructure Renewal - Sanitary OtherUtility ProjectLocationDescription ShareShare * St. James StreetPrince William Street to Renew 111 m of 250mm and 375 mm T.C. 94,90035,100 Germain Streetsanitary sewer (Condition Grade of 3.5 with an in service year of 1876), including design and construction management services. Subject to successful funding under Bilateral funding. * Celebration StreetStanley Street to endRenew 100 m of 375mm and 450mm T.C. 150,000 sanitary sewer, including design and construction management services. Project to be funded under the G.T.F. * Broadview AvenueCharlotte Street to Carmarthen Renew 275 m of 375 mm T.C. sanitary sewer 237,25087,750 Street(Condition Grade of 4 ), including design and construction management services. Subject to successful funding under Bilateral Funding. * Princess StreetWentworth Street to Crown Renew approx. 250m of 225mm and 300mm 219,00081,000 StreetT.C. sanitary sewer (Condition Grade of 5 with an in service year of 1893), with new 200mm and 300mm sanitary sewer, including design and construction management services. Subject to successful funding under Bilateral Funding. $6,938,450$1,546,550 TOTAL: Page4 of THE CITY OF SAINT JOHN 23-May-19 SAINT JOHN WATER PROPOSED W & S FUND PROGRAM 2020 MDH: MUNICIPAL DESIGNATED HIGHWAYS PDH: PROVINCIALLY DESIGNATED HIGHWAYS This is a tentative program listing of proposed capital projects. RDH: REGIONALLY DESIGNATED HIGHWAYS w&s: WATER AND SEWER RELATED PROJECTS This list has not been approved by Common Council. G&D: PROJECT IS FOR GROWTH AND DEVELOPMENT Priority assignments are subject to change at any time. *: PROJECTS DEPENDANT ON FUNDING FROM OTHERS Infrastructure Renewal - Water OtherUtility ProjectLocationDescription ShareShare * Fleet ReplacementVarious locationsFleet Replacement for Saint John Water. 485,0000 Project to be funded under Fleet Reserve. G&D* Germain StreetSt. James Street to Lower Cove Renew 100 m of 200 mm C.I. watermain 87,60032,400 Loop(1955), including design and construction management services. Subject to successful funding under Bilateral Funding. G&D* Lower Cove LoopCharlotte Street to Germain Install 150 m of 200 mm watermain, including 131,40048,600 Streetdesign and construction management services. Subject to successful funding under Bilateral Funding. Removal of cross- Ocean Westwest / Route 7 Removal of two cross- connections on Potable 0150,000 connections on Potable OverpassWater and Raw Water Transmission mains , Water and Raw Water including construction management services. Transmission mains Engineering Various locationsFunding for engineering investigations and 0250,000 Investigations and Designdesign for various projects under the Water and Sanitary categories. * Wentworth StreetElliott Row through King Street Renew 90 m of 300 mm C.I. watermain (1931), 124,10045,900 East Intersectionincluding construction management services. Subject to successful funding under Bilateral Funding. * Waterloo StreetHaymarket Square to Castle Renew approx. 330m of 300mm C.I. watermain 434,350160,650 Street(1856), including design and construction management services. Subject to successful funding under Bilateral Funding. * St. James StreetPrince William Street to Renew 110 m of 250 mm C.I. watermain 120,45044,550 Germain Street(1876), including design and construction management services. Subject to successful funding under Bilateral funding. Hayes Avenue AreaCivic #289 Gault Road to Civic Install approx. 530m of 200mm watermain on 0950,000 #484 Gault RoadGault Road as well as a PRV to connect the Hayes Avenue system, including construction management services. * Celebration StreetStanley Street to endRenew 100 m of 300mm C.I. watermain, 150,000 including design and construction management services. Project to be funded under the G.T.F. * Broadview AvenueCharlotte Street to Carmarthen Renew 275 m of 150 mm C.I. watermain 219,00081,000 Street(1917), including design and construction management services. Subject to successful funding under Bilateral Funding. Page5 of THE CITY OF SAINT JOHN 23-May-19 SAINT JOHN WATER PROPOSED W & S FUND PROGRAM 2020 MDH: MUNICIPAL DESIGNATED HIGHWAYS PDH: PROVINCIALLY DESIGNATED HIGHWAYS This is a tentative program listing of proposed capital projects. RDH: REGIONALLY DESIGNATED HIGHWAYS w&s: WATER AND SEWER RELATED PROJECTS This list has not been approved by Common Council. G&D: PROJECT IS FOR GROWTH AND DEVELOPMENT Priority assignments are subject to change at any time. *: PROJECTS DEPENDANT ON FUNDING FROM OTHERS Infrastructure Renewal - Water OtherUtility ProjectLocationDescription ShareShare * Princess StreetWentworth Street to Crown Renew approx. 275m of 250mm C.I. (1924) 299,300110,700 Streetwatermain, including design and construction management services. Subject to successful funding under Bilateral Funding. * Watermain Cleaning and Various locationsCleaning and lining of existing unlined C.I. 500,0000 Lining Phase 17watermains to improve pressure, water quality, and fire flows. Project to be funded under G.T.F. $2,551,200$1,873,800 TOTAL: Page6 of 23-May-19 THE CITY OF SAINT JOHN SAINT JOHN WATER CAPITAL PROGRAM SUMMARY W & S UTILITY FUND Proposed Program Summary For - 2021 No. ofOtherUtility Category Total ProjectsShareShare Industrial Water Renewal - West1$1,020,000$1,700,000$2,720,000 Infrastructure Renewal - Sanitary13$2,347,450$2,422,550$4,770,000 Infrastructure Renewal - Water11$2,054,450$1,040,550$3,095,000 TOTALS: 25$5,421,900$5,163,100$10,585,000 Summary of Capital Costs (Utility Share) Infrastructure Renewal - Water Industrial Water Renewal 20.2% - West 32.9% Infrastructure Renewal - Sanitary 46.9% Page1 of THE CITY OF SAINT JOHN 23-May-19 SAINT JOHN WATER PROPOSED W & S FUND PROGRAM 2021 MDH: MUNICIPAL DESIGNATED HIGHWAYS PDH: PROVINCIALLY DESIGNATED HIGHWAYS This is a tentative program listing of proposed capital projects. RDH: REGIONALLY DESIGNATED HIGHWAYS w&s: WATER AND SEWER RELATED PROJECTS This list has not been approved by Common Council. G&D: PROJECT IS FOR GROWTH AND DEVELOPMENT Priority assignments are subject to change at any time. *: PROJECTS DEPENDANT ON FUNDING FROM OTHERS Industrial Water Renewal - West OtherUtility ProjectLocationDescription ShareShare * Musquash Water Pump MusquashUpgrade/reconstruction - appropriate pump 1,020,0001,700,000 Stationsizing, electrical upgrades, flood proofing, etc. Including design and construction management services. Phase B. Project to be partially funded under DMAF. $1,020,000$1,700,000 TOTAL: Page2 of THE CITY OF SAINT JOHN 23-May-19 SAINT JOHN WATER PROPOSED W & S FUND PROGRAM 2021 MDH: MUNICIPAL DESIGNATED HIGHWAYS PDH: PROVINCIALLY DESIGNATED HIGHWAYS This is a tentative program listing of proposed capital projects. RDH: REGIONALLY DESIGNATED HIGHWAYS w&s: WATER AND SEWER RELATED PROJECTS This list has not been approved by Common Council. G&D: PROJECT IS FOR GROWTH AND DEVELOPMENT Priority assignments are subject to change at any time. *: PROJECTS DEPENDANT ON FUNDING FROM OTHERS Infrastructure Renewal - Sanitary OtherUtility ProjectLocationDescription ShareShare G&D* Charlotte StreetSt. James Street to Lower Cove Renew 155 m of 525 mm Concrete sanitary 171,55063,450 Loopsewer (With an in service year of 1965), including design and construction management services. Subject to successful funding under Bilateral Funding. * Garden StreetCoburg Street to City RoadRenew approx. 101m of 300mm, and 86m of 156,95058,050 375mm T.C. sanitary sewers (Condition Grade of 3), including design and construction management services. Subject to successful funding under Bilateral Funding. G&D Lakewood Heights East of Hickey Road Pumping Line concrete sewers to eliminate 0720,000 Sanitary SystemStationInflow/Infiltration in the Sanitary sewer system, including construction management services. Rodney StreetMarket Place to Watson StreetRenewal of approx.290m of T.C., Brick, and 0410,000 Concrete saintary sewer (Condition Grade of 3), including design and construction management services. Structural liningVarious LocationsStructurally line and point repairs to sanitary 0225,000 sewers, including design and construction management services. * WWPS Beach Crescent11 Beach CrescentReconstruct lift station above flood level to 340,000510,000 provide for reliable collection of wastewater, including design and construction management services, Phase A. Project to be partially funded under DMAF. * Pitt StreetSt. James Street to Broad StreetRenew 155m of 370mm T.C. sanitary sewer 127,75047,250 (Condition Grade of 4), including design and construction management services. Subject to successful funding under Bilateral Funding. * Mecklenburg StreetWentworth Street to Crown Renew approx. 265m of 600mm concrete with 248,20091,800 Streetnew 600mm sanitary sewer (Condition Grade of 2.5), including design and construction management services. Subject to successful funding under Bilateral Funding. * Combined Sewer South / CentralA strategy prioritizing the separation of 365,000135,000 Separation Reduction combined sanitary and storm sewers for the Strategy - South / CentralSouthend and giving an estimate for budget purposes. One of the deliverables would be maps showing all existing sewers (storm, sanitary and combined) with proposed new sewers for separation. Subject to successful funding under Bilateral Funding Page3 of THE CITY OF SAINT JOHN 23-May-19 SAINT JOHN WATER PROPOSED W & S FUND PROGRAM 2021 MDH: MUNICIPAL DESIGNATED HIGHWAYS PDH: PROVINCIALLY DESIGNATED HIGHWAYS This is a tentative program listing of proposed capital projects. RDH: REGIONALLY DESIGNATED HIGHWAYS w&s: WATER AND SEWER RELATED PROJECTS This list has not been approved by Common Council. G&D: PROJECT IS FOR GROWTH AND DEVELOPMENT Priority assignments are subject to change at any time. *: PROJECTS DEPENDANT ON FUNDING FROM OTHERS Infrastructure Renewal - Sanitary OtherUtility ProjectLocationDescription ShareShare * St. James StreetGermain Street to Sydney StreetRenew 195 m of 300mm and 375 mm T.C. 164,25060,750 sanitary sewer (Condition Grade of 4 with an in service year of 1878), including design and construction management services. Subject to successful funding under Bilateral funding. G&D* Retail Drive AreaRockwood Avenue to Gull StreetRenew 275 m of 450mm sanitary sewer, 500,000 including design and construction management services. Project to be funded under the G.T.F. * Britain StreetPitt Street to Wentworth StreetRenew 145 m of 300 mm T.C sanitary sewer 116,80043,200 (Condition Grade of 4 with a year in service of 1875), including design and construction management services. Subject to successful funding under Bilateral Funding. * Peters StreetWaterloo Street to Coburg StreetRenew approx. 190m of 300mm, and 375mm 156,95058,050 T.C. sanitary sewers (Condition Grade of 2.5 with an in service year of 1889), including design and construction management services. Subject to successful funding under Bilateral Funding. $2,347,450$2,422,550 TOTAL: Page4 of THE CITY OF SAINT JOHN 23-May-19 SAINT JOHN WATER PROPOSED W & S FUND PROGRAM 2021 MDH: MUNICIPAL DESIGNATED HIGHWAYS PDH: PROVINCIALLY DESIGNATED HIGHWAYS This is a tentative program listing of proposed capital projects. RDH: REGIONALLY DESIGNATED HIGHWAYS w&s: WATER AND SEWER RELATED PROJECTS This list has not been approved by Common Council. G&D: PROJECT IS FOR GROWTH AND DEVELOPMENT Priority assignments are subject to change at any time. *: PROJECTS DEPENDANT ON FUNDING FROM OTHERS Infrastructure Renewal - Water OtherUtility ProjectLocationDescription ShareShare G&D* Charlotte StreetSt. James Street to Lower Cove Renew 75 m of 200 mm C.I. watermain (1965), 69,35025,650 Loopincluding design and construction management services. Subject to successful funding under Bilateral Funding. * Fleet ReplacementVarious locationsFleet Replacement for Saint John Water. 485,0000 Project to be funded under Fleet Reserve. * Garden StreetCoburg Street to City RoadRenew approx. 258m of 200mm C.I. 208,05076,950 watermain, including design and construction management services. Subject to successful funding under Bilateral Funding. Rodney StreetMarket Place to Watson StreetRenew approx. 295m of 300mm C.I. 0345,000 watermain, including design and construction management services. Engineering Various locationsFunding for engineering investigations and 0300,000 Investigations and Designdesign for various projects under the Water and Sanitary categories. * Pitt StreetSt. James Street to Broad StreetRenew 155m of 200 mm C.I. watermain with 124,10045,900 200 mm watermain, including design and construction management services. Subject to successful funding under Bilateral Funding. * Mecklenburg StreetWentworth Street to Crown Renew approx. 265m of 200mm C.I. 211,70078,300 Streetwatermain, including design and construction management services. Subject to successful funding under Bilateral Funding. * St. James StreetGermain Street to Sydney StreetRenew 230 m of 200 mm C.I. watermain 182,50067,500 (1878), including design and construction management services. Subject to successful funding under Bilateral funding. * Britain StreetPitt Street to Wentworth StreetRenew 145 m of 200 mm C.I. watermain 116,80043,200 (1934), including design and construction management services. Subject to successful funding under Bilateral Funding. * Peters StreetWaterloo Street to Coburg StreetRenew approx. 190m of 200mm watermain , 156,95058,050 including design and construction management services. Subject to successful funding under Bilateral Funding. * Watermain Cleaning and Various locationsCleaning and lining of existing unlined C.I. 500,0000 Lining Phase 18watermains to improve pressure, water quality, and fire flows. Project to be funded under G.T.F. Page5 of THE CITY OF SAINT JOHN 23-May-19 SAINT JOHN WATER PROPOSED W & S FUND PROGRAM 2021 MDH: MUNICIPAL DESIGNATED HIGHWAYS PDH: PROVINCIALLY DESIGNATED HIGHWAYS This is a tentative program listing of proposed capital projects. RDH: REGIONALLY DESIGNATED HIGHWAYS w&s: WATER AND SEWER RELATED PROJECTS This list has not been approved by Common Council. G&D: PROJECT IS FOR GROWTH AND DEVELOPMENT Priority assignments are subject to change at any time. *: PROJECTS DEPENDANT ON FUNDING FROM OTHERS Infrastructure Renewal - Water OtherUtility ProjectLocationDescription ShareShare $2,054,450$1,040,550 TOTAL: Page6 of July 18, 2019 City of Saint John Lateral Funding Application - Bi Finance Committee 1 Investing In Transformational Change City of Saint John Bi-Lateral Funding Priorities 2020-2026 2 1 a bold strategy for investments in catalytic projects that will transform 1. Fundy Quay Project its core urban neighbourhoods, 200 - 300 New Jobs Created enhance its image and brand, and in New Provincial Tax Revenues reinvestment. $85M-$150M As part of its 10 year capital $1.7M – $3.1M infrastructure action Council priorities related to $8.7 Million annually and over 1 million liters of oil growth, climate change solutions, $430M in energy into the local economy improvements to public and active transportation, and that will build 2. Green Infrastructure a stronger community and improve Development social inclusion. growth 680 new transformative capital projects that residential units on the Central Peninsula $95M will achieve the goals set out above. $1.7M A summary of key projects for the City of Saint John are outlined as follows: reduced operational costs to support the City’s asset management program outlined in the attached documents. Some numbers are preliminary and have full economic impact assessments in progress. 2 3 1. Fundy Quay Project 4 Fundy Quay Project represents the single greatest opportunity for transformational $85 - $150 Million at the Centre of Saint John’s inner harbour, the site boasts the Property Tax Base Growth Saint John, energizing the local economy and improving the 1,850 21,718 Construction Tonnes million visitors to the City each year. Jobs of CO2 200 - 300 New completion of its Central Peninsula Neighbourhood Plan which Reduced Permanent Jobs repositioning and densifying underutilized lands, reversing decades of decline and harnessing the positive momentum expressions of interest to secure a development partner for the private sector partner has been secured. Work is now underway to coordinate future private sector investment with proposed municipal infrastructure investments. Additionally, the City of Saint John was successful in securing funding from the federal urban waterfront. that will support the transformation of the site and the attraction of substantial private sector reinvestment that will provide a positive return on investment for both the City of Saint John Conceptualization of Fundy Quay Redevelopment from the Central Peninsula Neighbourhood Plan. 5 activity alone will result in: $8.7 Million $100M - in Energy $400M in At full build out, it is estimated that the economic impacts of the Savings Tax Revenue 200 - 300 Over 25 $85M-$150M $100M - $400M $430M Energy Years (varies according to potential private sector uses developed) (Economic Savings Impact estimates are preliminary and a full report will be provided at the time of full application) Diverted to Local Economy and promote active mobility in the urban core of Saint John to promote the use of the downtown facilities in all weather. A complimentary component of this project is the development of by promoting sustainable development and clean energy use Climate Change and extreme weather vulnerabilities are top of mind in Coastal Saint John, which experiences some of the Province of New power outages are all realistic climate impacts which have been Brunswick the innovative design of the energy system to withstand power outages, to coastal protection measures to be more resilient to sea level rise, preparing for climate change has been top of mind City of Saint John GNB Saint John Fundy Quay Property Parcels. 6 Fundy Quay Project designed and maintained for contaminated soil over the lifecycle Project 1 Soil Remediation the direct contact exposure pathway to contaminated soils, Funding Stream Green Infrastructure: Objective pollutants human health and the environment, including the adjoining Description Contaminated surface and subsurface soils and groundwater, which present a potential risk to human health and the environment, of some excavated soils, avoidance of time delays associated order to support ongoing site redevelopment. As remediation of all contamination is considered to be both impractical and cost management of contaminated materials. prohibitive, a risk management approach is used in order to achieve A brief overview of the proposed site remediation strategy is described below. Project 2 Funding Stream Green Infrastructure: project phase, will further characterize soil and groundwater that will Objective be uncovered in future excavations as part of site redevelopment and weather events management practices providing environmental protection and will Proposed remediation activities also include the maintenance of direct contact with contaminated materials. Suitable cover will be Above: 1: 100 Year Storm Surge 7 Description during unusually high tides or storm surge events. Storm load. A geotechnical study of the site is currently underway in order be triggered by high winds, low air pressure systems, or by results of this study and updated cost estimates will be presented at the time of the full application. Project 3 Promenade Funding Stream Community, Culture and Recreation coinciding with high astronomical tides. When projecting to Objective indigenous peoples and vulnerable populations vertical extension of the existing sea wall (project funded Description part protection strategy, including: hosting concerts, festivals, vendors and has been a gathering spot for tourists, visitors and citizens. Redevelopment of this highly utilized extending the sea wall height; and public space will add to the value proposition of working and living in the urban core. sewer surcharging. As part of this project, an internal below grade pedway connection 8 Fundy Quay Project infrastructure, connecting the public space and atrium of the new community, cultural, and entertainment uses of with the design of loyalist plaza and will facilitate the interconnection of the proposed district energy system Saint John’s Central Peninsula neighbourhood, but there are very few places where it can be accessed by the public. will provide an opportunity to extend the City’s waterfront improve connections from the waterfront to the rest of the harbor passage trail system, enhancing linkages between will support work to update designs and to enable the Project 4 Funding Stream Objective generation of clean energy Description sustainability and supporting the City’s growth agenda. 9 provide clean, renewable energy for new development on new businesses and developments to a reinvigorated urban waterfront. waste to heat and cool existing and new government and existing muicipal buildings. the City of Saint John Community Climate change action the completion of phase 1 on the district energy system at Phase 1 (Current Proposal) water as its primary energy source to heat and cool Phase 2 (Future) consists of upgrading the energy center to energy at a high temperature to heat existing buildings. Phase 3 (Future) consists of connecting up to six large 10 Fundy Quay Project Phase 4 (Future)reduce air pollution from large industrial facilities, making them more environmentally friendly. potential to be replicated in other Canadian communities energy systems. and has supported municipalities in Atlantic Canada in the lifetime of the project. plan, the City will continue to share their lessons learned could be a model for other communities. technologies through the introduction of innovative technologies to improve energy and the operational Environmental Assessment expense of maintaining individual heating and cooling faciities. Annual maintenance savings are estimated at will not have any negative environmental impact on the developments the cost of mechanical, heating and John’s Newfoundland, which have similar characteristics to the natural environment of Saint John. generators. renewable energy sources to divert energy expenditures not involve wells and discharged sea water returned to to the local economy the harbour will vary minimally and will have no thermal over the lifetime of the project. any approval to operate and given the proposed project location, a coastal Watercourse and Wetland Alteration the use of local and renewable energy sources to heat and cool the integrated buildings. will be achieved by reducing corporate and community 11 2. Green Infrastructure 12 Green Infrastructure Project Unlocks $95M in Connections Tax Base Growth Funding Stream Objective Reduced 680 New and Stormwater; Pumping adapt and withstand climate related impacts, natural Residential disasters and extreme weather events Station Units Costs Description wastewater infrastructure in order to improve environmental performance, increase wastewater some of the oldest wastewater infrastructure in the country, which includes combined terra cotta sewers growth centre for the City. City is nearing completion of its Central Peninsula population and economic growth through repositioning and densifying underutilized lands, reversing decades of decline and harnessing the City for growth, strategic investments are needed in green infrastructure together with streetscape renewal and active transportation improvements. projects that would be implemented to accomplish Right: Vision for South End Revitalization from the Central Peninsula Neighbourhood Plan. 13 the goal of increased wastewater and storm capacity: 7.75km of increase the volume of wastewater directed for Streetscape treatment. Renewal $1.7M in analysis, develop strategies and implement projects to increase capacity to manage and treat wastewater. New Tax Revenue infrastructure to direct any raw sewage discharges 1,225 New analysis. Residents drive a more compact and sustainable development pattern, reducing the City’s carbon footprint and enhancing tax based growth opportunities. more system capacity available for future growth and development. environmental performance. relating to pumping and treating storm water. the end of their asset life. have a positive impact on reducing greenhouse gas chemical use at the wastewater treatment facilities, 14 Green Infrastructure John has a legacy of aging infrastructure and is approach is needed to optimize City assets, improve environmental performance, adapt to climate change infrastructure is a barrier to realizing the City’s growth objectives which targets density to the urban make these areas more sustainable and attractive to reinvestment and to reduce transportation related greenhouse gas emissions. With approximately 100 kilometers of combined sewer in the overall sewerage system, renewal of this system to optimize environmental performance, adapt to climate change Above: Union Street Reconstruction Cross Section. and positionthe City for growth opportunities would Below: Map of Combined Sewer & Potential Development Sites not be feasible without funding assistance from the were placed in a common trench with the watermain combined sewer with a separate sanitary and storm sanitary, storm and water laterals to the buildings will the surface infrastructure (asphalt, curb, sidewalk and of the surface infrastructure to current standards with asphalt roadways, concrete curb and sidewalks. replace the watermain and to reinstate the surface wide, the overall combined sewer separation in the Central Peninsula are beyond the intended service life, with sections of combined terra cotta upgrading green infrastructure in the priority growth 15 areas of Saint John which will yield the highest already developed areas and reducing demand on cross connection analysis in select areas of the City, need for new infrastructure ad making best use of existing assets. Below: Conceptualization of a Re-Imagined Sydney Street Active Transportation Corridor as there is high risk of failure of the aged combined sewer systems and the possible restriction on development in the key growth areas which in most cases date back well over a 100 years with resulting impact and disruption to residential and business customers in the high density areas of the uptown core. Targeting renewal of streetscapes and sewer and enhance capacity to drive the levels of growth, part of the City of Saint John’s Central Peninsula investment would leverage and translate into the following new units and associated tax revenue: annually. will also result in recovery of sewer system capacity which will allow for growth and development in critical areas of the City where growth has slowed due 16 Green Infrastructure units to key suburban growth areas in the near the Tucker Park campus and in the east infrastructure currently under construction. due to localized constraints in the City’s waste water infrastructure system. A strategy is needed to optimize this infrastructure and the system and improve wastewater system capacity. will optimize use of these assets, improve environmental performance and importantly, support growth of the urban core and priority suburban growth areas, making these areas more sustainable and attractive to development. 17 18 City of Saint John http://www.saintjohn.ca City of Saint John 15 Market Square PO Box 1971 Saint John, New Brunswick E2L 4L1 (506) 658-2951