FAS-020 - Long-Term Financial Plan Policy_2019
Title: Long-Term Financial Plan Policy
Subject: Long-Term Financial Plan Policy Category: Finance and Administrative Services
Policy No.: FAS-020 M&C Report No.: 2019-356
Effective Date: 2019-12-16 Next Review Date:
Area(s) this policy applies to: Cross Corporate Office Responsible for review of this Policy:
Finance and Administrative Services
Related Instruments: Policy Sponsors:
FAS-001 Asset Management Policy Commissioner of Finance and Administrative Services
FAS-002 Investment Management Policy
FAS-003 Reserves Policy
FAS-004 Operating Budget Policy
FAS-005 Capital Budget Policy
FAS-006 Debt Management Policy
FAS-007 Wage Escalation Policy
FAS-021 Budget Monitoring Policy
Document Pages:
This document consists of 5 pages.
Revision History:
Common Clerk's Annotation for Official Record
Date of Passage of Current Framework:2019-12-16
I certify that this Policy was adopted by Common Council as indicated
above.
_____________ ___2020-01-06_____
Common Clerk Date
Date Created: Common Council Approval Date: Contact:
2019-12-16 Finance and Administrative Services
City of Saint John
LONG-TERM FINANCIAL PLAN POLICY
TABLE OF CONTENTS
1. PURPOSE AND CONTEXT…………………………………………………………………………………………….3
2. POLICY STATEMENT.................................................................................................. . 3
3. PRINCIPLES AND POLICIES .......................................................................................... 4
4. ROLES AND RESPONSIBILITIES .................................................................................... 4
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City of Saint John
LONG-TERM FINANCIAL PLAN POLICY
1. PURPOSE AND CONTEXT
This policy establishes key objectives with respect to financial governance and
demonstrates the following:
a) Common Council’s commitment to the Long-Term Financial Plan;
b) Common Council’s commitment to adherence to best practice financial
policies;
c) Common Council’s commitment to accountability to the taxpayer;
d) Common Council’s commitment to the efficient use of resources and strategic
use of taxpayer funds; and
e) Common Council’s commitment to meeting long-term financial goals to put the
City on a sustainable path.
2. POLICY STATEMENT
2.1 The City of Saint John shall have a long-term financial plan;
2.2 Common Council shall have fiscal responsibility as a strategic priority;
2.3 Common Council shall be committed to ensuring there is strong financial
management rooted in financial best practices;
2.4 The Finance Committee will maintain long-term financial planning as their primary
goal;
2.5 The City’s long-term financial plan will put the City on a sustainable path going
forward;
2.6 The long-term financial plan shall be anchored by strong corporate governance
and the development of financial policies;
2.7 The City’s commitment to fiscal responsibility shall be be monitored through a
Financial Health Scorecard with targets that will be regularly measured and
reported to demonstrate accountability to the public.
3. PRINCIPLES AND POLICIES
3.1 Principles:
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City of Saint John
LONG-TERM FINANCIAL PLAN POLICY
3.1.1 Maintain Financial Sustainability: The City of Saint John’s ability to provide
and maintain planned service levels and infrastructure assets without
unplanned increases in rates or disruptive cuts to services;
3.1.2 Minimize Financial Vulnerability: The degree to which the City of Saint
John is dependent on external funding sources that it cannot control; it is
the level of risk that could impact the ability to meet existing financial
obligations and commitments, including the delivery of services;
3.1.3 Maximize financial Flexibility: The City of Saint John’s ability to change
either debt levels or taxes to meet financial obligations and ensure
intergenerational equity.
3.2 Policy:
3.2.1 The Long-Term Financial plan shall adhere to the various targets set out in
the Council approved financial policies;
3.2.2 The Finance Committee will review the Long-Term Financial Plan on an
annual basis to:
a) Update forecasted numbers to actual results
b) Update assumptions in the plan that require change based on the
current fiscal environment;
c) Review the Financial Health scorecard to track the City’s progress
compared to the plan for accountability;
3.2.3 Other than changes recommended by the Commissioner of Finance to
update a best practice, any change to any of the following financial policies
require a 2/3 vote of the total membership of Common Council (8 votes):
a) FAS-001 Asset Management Policy;
b) FAS-002 Investment Management Policy;
c) FAS-003 Reserves Policy;
d) FAS-004 Operating Budget Policy;
e) FAS-005 Capital Budget Policy;
f) FAS-006 Debt Management Policy;
g) FAS-007 Wage Escalation Policy;
h) FAS-020 Long-Term Financial Plan Policy;
i) FAS-021 Budget Monitoring Policy
4. ROLES AND RESPONSIBILTIES
4.1 Council shall:
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City of Saint John
LONG-TERM FINANCIAL PLAN POLICY
4.1.1 Approve the Long-Term Financial Plan Policy;
4.1.2 Any changes to the Policy shall require a 2/3 vote of the total membership
of Common Council (8 votes).
4.2 Finance Committee shall:
4.2.1 Recommend the Long-Term Financial Plan Policy to Common Council for
approval;
4.2.2 Review any changes to the Long-Term Financial Plan Policy in the future.
4.3 The Finance Commissioner shall:
4.3.1 Update the plan to reflect annual actual results and recommend
appropriate changes to assumptions and forecasts;
4.3.2 Recommend any changes to the Long-Term Financial Plan policy in the
future.
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