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2020-08-13 Finance Committee Agenda Packet - Open SessionCity of Saint John Finance Committee - Open Session AGENDA Thursday, August 13, 2020 5:00 pm Meeting Conducted by Electronic Participation 1. Call to Order 2. Consent Agenda Pages 2.1 2021 Utility Fund Operating Budget Timelines 1 - 2 3. Business Items 3.1 SJ Energy - Burchill Wind Project 3 - 16 3.2 2021 Draft Budget 17 - 42 3.3 Climate Change Adaptation Plan 43 - 66 3.4 SJ Transit Deficit 67 - 67 IT I FINANCE COMMITTEE REPORT Report Date August 11, 2020 Meeting Date August 13, 2020 Chairman Councillor Merrithew and Members of Finance Committee SUBJECT: 2021 Utility Fund Operating Budget Timelines 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 this report be received and filed. EXECUTIVE SUMMARY The purpose of this report is to provide the Finance Committee with an overview of the proposed 2021 Utility Fund Operating Budget timelines. PREVIOUS RESOLUTION N/A STRATEGIC ALIGNMENT N/A The purpose of this report is to provide the Finance Committee with an overview of the proposed 2021 Utility Operating Budget timelines. The 2021 Utility Fund will be a challenging budget with impacts of COVID 19 on commercial customers likely to still be felt in 2021 and loss of revenue due to a closure of large commercial customer that is planned for January 2021. While revenues will undoubtedly be impacted, the 2021 budget will see a significant reduction in the Utility's expenses particularly as it relates to its workforce and along with other expenditure reductions will aim to balance out the loss of revenues. Through departmental restructuring and significant 1 -2- expense reductions there is a goal to provide some rate stability for ratepayers in these uncertain times. The proposed budget timeline is; • October 21, 2020 - Draft 2021 Utility Fund Budget to Finance Committee for Approval • October 26, 2020 — Draft 2021 Utility Fund Budget to Common Council for Receive and File • November 9, 2020 — 2021 Utility Fund Budget to Common Council for Approval and first and second reading • November 23, 2020 — 2021 Utility Fund Budget to Common Council for third reading SERVICE AND FINANCIAL OUTCOMES N/A INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS N/A ATTACHMENTS N/A 1 sau,[/ohn � jknerg,y int John _)rEn9r_yy V_ COMMITTED TO SAINT JOHN SINCE 1922 JL"R1_WA. As a community -owned energy company, we are proud of our service to Saint John. Our reputation is built on our commitment to the city and our customers. LOW RATES Our rates are the lowest in Atlantic Canada, about a $10M savings for our customers. HIGH RELIABILITY Outage frequency & duration among the lowest in the nation. STRONG SATISFACTION Customer satisfaction among the highest in the country. 4 Saint John Energy has bold aspirations for the years !7RlTJ We are pursuing a strategy of growth to ensure our customers and the City of Saint John continue to reap the benefits of our low rates, our high reliability and our commitment to innovation. Our strategy will grow prosperity and jobs for Saint John. It will propel innovation here and beyond. And it will sustain Saint John Energy into the future. A COMMITMENT TO SUSTAINABILITY We are proud to be the first utility in The Canadian Electricity Association Eastern Canada to receive the bestows the designation in Sustainable Electricity Company recognition of commitment to designation. responsible environmental, social and economic practices, and to the principles of sustainable development. ,intohn Fm y6 Burchill Wind Project: Economics The below illustrates how wind energy can deliver savings to SJE JCO E nub CostComparLan w ', Lrj L _,r� - JResAr 16d B is (Fuu)' 44 IIF� `Al ind COS# a� 6 Source data : NBP 2017 IRP t r , ru.4� �'_ =.:�[: _, .. ,.'r:Y sb' :�.ti ::�{«�::..�, �'.s�:.' b�+x 1-;, �K:x'. u,�Ci.=�.^�::.�. , r: R� brt: -•xi T aau Burchill Wind Project: SJE and Natural Forces The below represents a high-level summary of the relationship between the utility and the wind developer 5air�rJolur 1� mural fr+os rr the traditional electric wind farm ie. turbines and Ownership distribution system to localized electrical interconnect to the wind infrastructure farm Commercial Relationship Operational Responsibility Capital Infrastructure Investment buy the wind energy maintain the distribution system -$15M provide the wind energy maintain the wind farm -$60M Burchill Wind Project: Financial Summary The below represents a high-level financial summary of the Burchill Wind Project Project Size: 10 Turbines: 42 MW SJE Capital Investment: $15.7M Project Commissioning: Q4 2022 r Free Cash Flow beginning in 2023: —$4M L Net Present Value: $68M ICI The financial benefits from the project will be: • Used to protect low rates for customers • Re -invested by the Utility to continue to provide industry leading reliable service • Used to contribute to a CSJ dividend if enabled in legislation by the provincial government Burchill Wind Project: Other Benefits Below is a list of some other benefits associated with the project over its life • —$32M of project expenses staying in the Province • >$11M of taxes and land royalties paid to the municipal and provincial governments • —$168k in property tax per year • +100 jobs during construction and —5 full-time jobs for life of project • —15% of energy from local renewable source • Local ownership potential with Community Economic Development Corporation • The Burchill infrastructure investment will support industrial load and future renewable energy development in the Industrial park ie. community solar, storage, etc... Burchill Wind Project: Risk Mitigation The below represents a high-level summary of risk mitigation • Energy Price: Fixed for term (no escalation) • Contract Term: 25 years with option to extend for 5 additional years • Redevelopment following term: SJE has first option at end of term • Construction Performance Security from Developer: $11VI • Liquidated Damages: compensation for any delay beyond Dec 2022 Minimum Guarantee: min Net Annual Output (MWh) achieved, otherwise Performance damages paid by Seller Burchill Wind Project: SJE COVID Considerations The below represents a high-level financial summary related to COVID • Given the uncertainty of the financial impacts of COVID, SJE took prudent steps to explore internal and external options to effectively manage the business. • SJE developed a plan to address up to a 10% reduction of sales volume and customer payment deferrals that would impact receivables by over $3M by the end of July. • SJE reduced operating expenses, and capital spending to address these challenges. • The impact to SJE has been more favorable than what was planned for. Sales volume reductions never reached a 10% reduction and have been improving. At the end of June, sales volume was 2% less than last year and the negative impact to receivables was —50% more favorable than planned for. • COVID has delayed the Burchill project by approximately 12 months. Burchill Wind Project: Timeline The below represents a high-level summary of the Burchill Wind Project progress ' 2003 — 2008 • SJE and UNB collected five years of wind data from the Burchill location • 2017 • SJE licensed the Burchill property from RDC exclusively for further project studies • SJE initiated studies related to the project potential (Deloitte, WSP, Enercon, and Fundy) • 2018 • 95% of SJE customers polled supported SJE pursuing the development of renewable energy • Further studies completed by Hatch and CBCL • 14 wind developers responded to an expression of interest, confirming favorable project economics • 2019 • Twenty-three proposals received in response to the Request for Proposal (RFP) • Project awarded to Maritime based company Natural Forces • NB Power completes feasibility study • Common Council approved the Community Energy Plan which included Burchill's GHG benefits • 2020 • SJE Board approves distributed generation policy that enables Burchill • Natural Forces completes two community open houses in Lorneville • NB Power completes system impact study and facilities study allowing the project to proceed • SJE Board approves borrowing and signing the power purchase agreement with Natural Forces Alternative 274 Main Street Antigonish, NS B2G2C4 August 5, 2020 Common Clerk's Office City Hall PO Box 197L Saint John, NB E2L4L1 To members of Com mon Council, Alternative Resource Energy Authority (AREA), is a partnership between the Towns of Antigonish, Berwick and Mahone Bay. The towns each operate electric utilities and distribute powerto customers within their service areas_ The organization is structured to furtherthe clean technology pursuits of its municipal owners, along with other municipalities in N.S. At the Ellershouse Wind Farm the Alternative Resource Energy Authority (AREA) operates 10 Ener€on W nd turbines near the community of Ellershouse, Nova Scotia_ The maximum output afthe farm is 23.15 MegawattiThe Ellershouse Windfarm supplies 4096afthe annual energy requirements forthe municipal electric utilities of Berwick, Mahone flay and Antgonish and the M eport Electric Light Commission. The total investment in excess of $51 million, was signifca nt, for our Communities of nearly 10 004 residents. The 1Yndfarm has continued to exceed its production expectations and provedto be a very successful projertfnr AREA and its municipal owners_ The success of the Ellersh Ouse Wi ndfaern has allowed usto develop plans for expansion of our renewable energy portfolio to i nclude community solar and eventua Ily energy storage. Saint John Energy`s campertikive procurement approach to purchase wind energy from a third party mitigates investment riskyet will realize many afthe same financial and environmental benefits for your community. Based an our experiences, I would encourage Comman Coun€iI to supportSairtJohn Energy in their efforts to enable renewable energy in your commu nity. Regards, .r Aaron Long Director of Business Services Summemide FIA-ctri€ 94 Wawa Streit Summerside, PEI C1N 1W3 August 5, 2020 Common Clerk's Office City Hall PC i3ox 1971 Salot John, NEI f2L4U To members of Cowmod Council, In 200S. The City of 5ummerside deployed four turbines with 3 nameplate capacity of 12 N1 W, which we contrnue to own and operate to this day. of thE? tataf $29 3 million project cost, Infrastnicture Canada funding provided S12.8 million ar+d the remaining investment of $15,5 million was a signifreant investment (Of Our community of 15,0na people- r am pleased to report that this project has been a very favourable project for our municipality, created permanent 1G001 Ohs and injects 52 mlIlion (net of debt servicing) per year into the community, Based on that projects WCCessr we have expanded our develapmenI efforts to include 5Jgmficant investments into our current S65 miffl4n solar and storage project. Saint Jahn Energy's competitive procurement approach to purchase wind energy from a third party Mitigates investment risk yet will realize many of the same financl l and errvironmental benefits for your community Based oa our erpeiiemces, r would encourage Common Council to support Saint Jahn Energy in their efforts to enable renewable energy in your community, Regards, Gerald Glroux, PEng, &Sc Acting OIractor of M un le ipal Services 15 It is recommended that: 1. The Finance Committee endorse the Burchill Wind project; 2. The Finance Committee recommend Common Council approve the debenture application respecting Saint John Energy projects; 3. The Finance Committee recommend Common Council direct staff to enter into a debt repayment agreement with Saint John Energy to repay the City for any principal and interest payments on debentures associated with Saint John Energy projects in addition to an administration fee; 4. The Finance Committee recommend Common Council direct staff of the City of Saint John and Saint John Energy to bring forth a Dividend Agreement that reflects the flow of dividends from the growth agenda; 5. The Finance Committee recommend Common Council direct the City Manager to request the Province of New Brunswick to make necessary legislative changes to allow the City of Saint John to obtain a dividend from Saint John Energy. 16 The City of Saint John Operating Fund by Service Area December 31, 2021 2021 2020 Budget Budget Revenues Property Taxes 127,730,619 125,842,974 PILT Adjustment - 1,185 Equalization & Unconditional Grant 17,204,756 17,204,756 Financial Assistance - 9,293,235 Surplus 2nd Previous Year - - Growth & Community Development Services 3,768,545 4,968,607 Transportation & Environment Services 3,773,749 4,094,853 Public Safety Services 2,451,188 1,975,300 Utilities & Infrastructure 332,039 192,514 Finance & Adminstrative Services 2,786,000 3,135,000 Total Revenues 158,046,896 166,708,424 Expenditures Growth & Community Development Services 15,483,648 17,874,246 Transportation & Environment Services 38,587,208 41,887,339 Public Safety Services 54,635,169 57,425,302 Utilities & Infrastructure 5,625,504 4,019,478 Finance & Administrative Services 10,054,765 10,336,783 City Manager 3,224,617 3,245,058 Other Charges 30,435,985 31,920,218 Total Expenditures 158,046,896 166,708,424 Surplus (Deficit) - - 17 1 The City of Saint John Operating Fund by Service Area December 31, 2021 2021 2020 Budget Budget Revenues Property Taxes 127,730,619 125,842,974 PILT Adjustment - 1,185 Equalization & Unconditional Grant 17,204,756 17,204,756 Financial Assistance - 9,293,235 Growth & Community Development Services 3,768,545 4,968,607 Transportation & Environment Services 3,773,749 4,094,853 Public Safety Services 2,451,188 1,975,300 Utilities & Infrastructure 332,039 192,514 Finance & Adminstrative Services 2,786,000 3,135,000 Total Revenues 158,046,896 166,708,424 Expenditures Growth & Community Development Services Growth & Community Planning Services 1,612,509 1,716,242 Development Services 102,884 121,345 Development Engineering 362,645 625,296 Community Development 473,101 259,186 Animal Control 91,244 91,244 Dangerous and Vacant Building Program 472,032 501,524 Minimum Property Standards 297,895 285,085 Heritage Conservation Service 195,630 194,358 Cultural Affairs 126,031 124,110 Other By -Laws 425,278 413,596 Permitting & Inspection Services 1,040,806 1,061,368 Regional Economic Development - 475,000 Destination Marketing (Tourism) - 2,018,608 Develop Saint John - 838,727 Regional Economic Development Agency 2,175,000 Market Square 2,250,000 2,488,248 Saint John Trade & Convention Centre 572,270 586,193 Imperial Theatre 344,165 367,285 Saint John Aquatic Centre 400,000 625,821 Saint John Arts Centre 152,920 139,471 TD Station 564,810 602,519 Library 472,892 497,892 City Market 1,022,824 1,012,480 Arts & Culture Board 70,000 70,000 Public Art Maintenance & Repair 16,000 16,000 Remembrance Day 1,500 1,500 18 2 The City of Saint John Operating Fund by Service Area December 31, 2021 2021 2020 Budget Budget Growth & Community Development Services (Continued) New Year/Canada Day Celebrations 15,000 15,000 Acadian Games - 19,750 PRO Kids 19,163 124,940 Succeed & Stay 205,863 200,343 Local Immigration Partnership 89,863 Carleton Community Center 182,700 190,211 Loch Lomond Community Center 45,000 45,000 North End Community Center 169,589 167,083 Recreation Programming 544,953 663,842 Neighbourhood Development 152,000 152,000 YMCA-FGCC/MCC - Contracted Services 137,661 135,627 Boys and Girls Club - Contracted Services 139,950 137,882 Unspecified Grants 184,000 184,000 Lifeguards 181,000 181,000 Play SJ 15,000 15,000 Lord Beaverbrook Rink 159,470 159,470 Growth Reserve - 350,000 Total Growth & Community Development Services 15,483,648 17,874,246 Public Safety Services Fire Rescue and Suppression Service 22,124,187 23,776,029 Fire Training 1,000 1,359 Medical First Responders - 17,830 Technical Rescue Response 46,256 75,850 Hazardous Materials 72,626 103,312 Fire Prevention 856,920 866,034 Fire Investigation 61,647 70,931 Emergency Management Services 341,535 336,152 Water Supply and Hydrants 2,500,000 2,500,000 Public Safety Communications Center 2,577,754 2,583,013 Street Lighting 959,982 999,159 Police Adminstration 1,893,381 2,023,778 Criminal Investigations 4,264,066 4,645,588 Police Commission 112,052 162,052 Automotive Equipment 1,059,833 1,000,500 Support Services 1,949,931 1,920,869 Dentention 174,000 174,000 Police Operations 14,695,871 15,212,146 Stations and Buildings 944,128 956,700 Total Public Safety Services 54,635,169 57,425,302 19 3 The City of Saint John Operating Fund by Service Area December 31, 2021 2021 2020 Budget Budget Transportation & Environment Services Snow Control Streets 5,311,773 5,700,022 Street Cleaning 1,629,701 1,556,365 Utility Cuts 710,263 727,403 Street Services - Surface Maintenance 8,533,140 7,122,040 Snow Control Sidewalk 917,182 1,101,593 Sidewalk Maintenance 587,428 793,399 Pedestrian & Traffic Management Service 1,986,389 2,241,753 Stormwater Management - 3,643,330 Solid Waste Management 3,760,663 3,781,035 Regional Services Commission 20,000 20,000 Landscape - Parks & Open Spaces 2,047,995 2,310,698 Rockwood Park 407,788 571,447 Urban Forestry 313,445 313,565 M ispec - 5,000 Saint John Horticultural Association 40,000 40,000 Arena Operation & Maintenance 1,168,546 1,568,144 Sportsfield Operation & Maintenance 1,195,592 1,393,873 Other Facilities Operation & Maintenance 406,222 449,103 Parking Administration 581,470 616,756 Transit Debt 1,961,195 2,037,026 Transit Subsidy 5,044,787 5,894,787 Fleet Stockroom 272,284 Stormwater Rural 1,691,345 - Total Transportation & Environment Services 38,587,208 41,887,339 Utilities & Infrastructure Engineering 914,136 572,934 Carpenter Shop 324,231 324,236 Facilities Management 1,408,663 1,476,376 Police Headquarters - - City Hall Building 1,039,587 1,225,211 GIS 376,224 420,721 Stockroom 269,413 - Stormwater Urban 1,293,250 - Total Utilities & Infrastructure 5,625,504 4,019,478 20 4 The City of Saint John Operating Fund by Service Area December 31, 2021 2021 2020 Budget Budget Finance & Administrative Services Finance 1,176,140 1,640,459 Assessment 1,388,221 1,367,705 Supply Chain Management 407,376 1,207,895 Human Resources 1,826,083 1,565,654 Information Technology 3,073,774 2,966,799 Corporate Planning 311,448 503,224 Corporate Communications 573,001 573,547 Insurance 118,280 171,500 Liability Insurance 340,000 340,000 Customer Service 840,442 - Total Finance & Administrative Services 10,054,765 10,336,783 City Manager City Manager's Office 779,825 800,584 Mayor's Office 216,333 218,130 Common Council 519,902 549,067 Common Clerk 594,499 605,438 Legal Department 936,521 795,948 Real Estate 177,537 275,891 Total City Manager 3,224,617 3,245,058 Other Charges Fiscal Charges 15,941,014 16,650,273 Deficit 2nd Previous Year 214,971 119,915 Landfill Closure 300,000 300,000 Special Pension Contributions 8,875,000 9,575,000 Long -Term Disability 550,000 661,572 Restructuring - 2,040,000 Transfer to Capital Reserves 650,000 - Transfer to Operating Reserves 905,000 550,000 Other Charges - 23,458 Capital from Operating 3,000,000 2,000,000 Total Other Charges 30,435,985 31,920,218 Total Expenditures 158,046,896 166,708,424 Surplus (Deficit) - - 21 5 1r 1' gg R I City of Saint John 2021 Draft General Operating Budget August 13, 2020 SAINT JOHN 22 • August 13: First Draft General Operating Budget to Finance Committee for receive and file • August 17: Draft General Operating Budget to Common Council for receive and file • August 31: Draft General Operating Budget to Common Council for Approval 23 Q--)- SAINT JOHN • Property Tax Revenue assumes 1.5% increase over 2020 • Assumes Unconditional Grant remains the same as 2020 • 2021 Budget includes no short term Provincial Financial Assistance; • Structural deficit has been eliminated $6.OM reduction in work force cost Approx. $4.OM of reduction addressed though Sustainability Initiative approved by Council throughout 2019 and 2020 • COVID 19 will continue to have an impact on the City's finances and budget and includes a transfer to an operating reserve to ensure financial flexibility around the uncertainty of COV I D 19. 24 ram-_ SAINT JOHN The 2021 General Fund Operating budget was prepared based on the principles, policies and financial targets in the long term financial plan. Financial targets met in 2021 budget • Eliminate deficit of $10 million in 2021 • Maintain reserves at a minimum of $2 million at all times A/ • Keep annual wage escalation in line with tax base growth 40/ • Address the infrastructure deficit and reduce debt by increasing Pay -as -you -Go investment Y 25 Q--)- SAINT JOHN • 2021 Draft Operating Budget includes $3.OM for pay as you go. ($2.OM in 2020) • Continue to put more money into pay as you go for roads. (Note: This is not an increase in road investments, only reducing amount needed be borrowed) 6.00 5.00 . 4.00 33.4 .00 2.00 1.00 2013 2014 Budget Budget Pay as you go for roads in millions 3.12 1.77 1.35 1.37 2015 2016 Budget Budget 2017 Budget 26 5.10 -Z 3.37 2.37 2018 2019 2020 Budget Budget Budget 2021 Budget Q--)- SAINT JOHN 170.00 I 165.00 160.00 155.00 150.00 145.00 140.00 135.00 - General Fund Operating Budgets 2013-2021 147.90 148.77 2013 2014 Budget Budget $ in Millions 154.02 151.52 151.14 156.09 166.71 160.26 158.05 2015 2016 2017 2018 2019 2020 2021 Budget Budget Budget Budget Budget Budget Budget 27 r� SAINT JOHN 2021 Draft 2020 Approved Budget Budget Recurring Revenues Property Taxes 127,730,619 125,842,974 Unconditional Grant 17,204,756 17,204,756 Own Source Revenues 13,1 1 1,521 14,367,459 158,046,896 157,415,189 Recurring Expenses Wages & Benefits 86,167,181 92,197,000 Goods & Services 38,016,021 37,572,518 ABCs and Grants 12,852,709 15,255,260 Principle & Interest 15,941,014 16,650,273 Pay as you Go 3,000,000 2,000,000 Transfer to Reserves 1,555,000 550,000 Other (Landfill, Restructuring 300,000 2,363,458 157,831,925 166,588,509 Structural Deficit 214,971-9,173,320 Non Recurring Items Carry Over Surplus/Deficit-214,971-119,915 Financial Assistance New Deal 0 9,293,235 f SAINT JOHN Reducing Cost 2 R 6 r1- Surplus (Deficit) 0 0 SAINT JOHN Following resolution passed by Council on May 4th "RESOLVED that Common Council adopt the following: 1. Approve the implementation of the Sustainability Plan and all elements as presented to address the projected deficit of $10 Million through workforce adjustments (60%), revenue generation, service changes, and continuous improvement efforts in 2021 and 2022" 29 Q--)- SAINT JOHN Management and Professional Staff Local 486 (Inside Workers) Police Local 18 (Outside Workers) Fire TOTAL Transit $840k $680k $1175k $960k $1360k $5015k $912k In place and reductions ongoing. Complete by 1 Oct. Pay freeze for 2021 and 2022 and reduction of 5.5 positions $826k In place and reductions ongoing. Complete by 1 Oct. Reduction of 8 FTEs $1300k Collective bargaining has failed. Binding arbitration required. Results will drive detail on workforce reductions. - Letter to Commission prepared. $1290k Tentative agreement, if approved, will achieve this savings, and significantly more in 2022 and beyond. $1875k Preliminary staff recommendation developed. Will now consult with Union leadership. Final staff recommendation in two weeks (at next Council meeting). $6203k Must be higher than $6000k since some of the savings will in (+ $100k below) in Water Operating Fund (not part of $10 million challenge) Portion of 50% of $850k Transit's mandate was to reduce by $750k and large part was to be $750k =$425k workforce reduction. Increase to $850k and request that majority be 30workforce reductions. Letter to Transit prepared. The $100k additional would go towards $6000k in workforce adjustments Management and Professional Staff Loca 1486 (Inside Workers) Police Local 18 (Outside Workers) Fire $826k $1300k $1290k $1875k TOTAL $6203k (+ $100k Transit Exceeded target. $768k $(58K) One position left to be eliminated. Contract ends in December 2021 and next collective agreement will further address staffing. $700k $(600K) Operating budget target of 1.3M met for 2021. $2371k $1081k Exceeded target $1913k $38K Met target A= =a $6791K Must be higher than $6000k since some of the savings will in in Water Operating Fund (not part of $10 million Portion of 50% of $850k Transit's mandate was to reduce by $750k and large part was to be $750k =$425k workforce reduction. Increase to $850k and request that majority be 31 workforce reductions. Letter to Transit prepared. The $100k additional would go towards $6000k in workforce adjustments Workforce adjustment target met. General Fund reduced by $6.03M • Does not include Transit or Utility Fund (Utility expected to see over $1.OM in workforce adjustments as part of it 2021 Operating Budget) 2021 2020 Salaries & Benefits Salaries 58,750,424 62/595/315 Overtime 11877,180 2/022/345 Other Personnel Costs 409,864 4011765 Finge Benefits 15,7041713 16/941/003 Pension 81875,000 9/575/000 Long -Term Disability 550,000 6611572 Total Salaries & Benefits 861167,181 92/197/000 32 Q--)- SAINT JOHN Balance of deficit through revenue generation, service changes, and continuous improvement efforts in 2021 and 2022. Rightsizing Rec Facilities- Rainbow Park Ice Rightsizing Rec Facilities- Lawn Bowling Arena Closure Winter Street Maintenance Asphalt Overlay Program Suspension of Growth Reserve (2021 & 2022) Freeze Goods & Services Budget Envelope Casual Workforce Reduction (Parks & Rec) Casual Workforce Reduction (Works) Counsil Budget Reduction Third Party Contracted Services- Electrical Cell Phone Optimization Sports Field Linig Reduce Police Fleet Maintenance Reduce Police Headquarters Operating Medical Call Response Criteria Translation Greening the Fleet Library- West Branch Reduce Employee Training Related Costs Contracted Services Cost Recovery for City Support at Events Fleet Optimization Other Contract Service- SJE Lights Transit Redesign Operating Cost Reduction 10,000 10,000 Operating Cost Reduction 10,000 10,000 Operating Cost Reduction 155,000 155,000 Operating Cost Reduction 130,000 130,000 Operating Cost Reduction 200,000 200,000 Operating Cost Reduction 350,000 350,000 Operating Cost Reduction 200,000 200,000 Operating Cost Reduction 100,000 108,000 Operating Cost Reduction 51,000 51,000 Operating Cost Reduction 25,000 25,000 Operating Cost Reduction 30,000 30,000 Operating Cost Reduction 50,000 50,000 Operating Cost Reduction 10,000 10,000 Operating Cost Reduction 50,000 50,000 Operating Cost Reduction 75,000 75,000 Operating Cost Reduction 10,000 10,000 Operating Cost Reduction 23,000 23,000 Operating Cost Reduction 50,000 50,000 Operating Cost Reduction 30,000 30,000 Operating Cost Reduction 50,000 50,000 Operating Cost Reduction 172,000 172,000 Operating Cost Reduction 10,000 10,000 Operating Cost Reduction 300,000 450,000 Operating Cost Reduction 58,000 58,000 Operating Cost Reduction QQ 850,000 850,000 Total Operating Cost ReductionV 2,999,000 3,157,000 2021 Operating Cost Reduction $3,157,000 Cost Reductions and Continuous improvement will continue for 2022 and beyond r� SAINT JOHN Balance of deficit through revenue generation, service changes, and continuous improvement efforts in 2021 and 2022. Permit and Development Approval Fee Increases Revenue 80,000 80,000 Permit and Development Approval New Fees Revenue 13,000 13,000 Fire Fees for Service Revenue 30,000 21,000 Fire Fees for Emergency Response Revenue 90,000 90,000 Recreation Subsidization Revenue 260,000 260,000 Monthly Parking Increase Revenue 100,000 100,000 Non -Resident Differential Parking Fee Revenue 100,000 100,000 Adelaide Street Revenue 25,500 25,500 Fire Training Academy Revenue 23,000 23,000 Building Demolition In -Sourcing Revenue 36,000 55,000 Fire Training Phase 2 Revenue 77,000 77,000 Fire Insurance Recovery (Fire Marque) Revenue 50,000 50,000 Total Revenue 884,500 894,500 2021 Revenue Increase $894,500 Other Revenue opportunities to continue for 2022 and beyond. ram__ SAINT JOHN 34 • Capital Budget Policy & LTFP: Increase funding for roads in the Operating Budget instead of borrowing $1,730,000; (2020 - $1,000,000); • Capital Budget Policy & LTFP: Increase pay-as-you-go to gradually reduce debt $3,000,000; (2020 - $2,000,000) • Asset Management, Capital Reserve Policy & LTFP: Contribute to capital reserve to address infrastructure deficit $650,000;(2020 - $550,000) • Operating Reserve Policy & LTFP: Maintain a minimum reserve of $2M, creating more flexibility and less vulnerability. Budget included additional transfer to operating reserve of $905,000. This will allow the City to be able to continue to deal with potential fall out of COVID and other one time emergency issues that may arise in the future 35 Q__) SAINT JOHN 180.00 160.00 140.00 120.00 100.00 80.00 60.00 40.00 Increase 1.5% 127.73 125.84 20.00 Property Taxes 2021 Budget ■ 2020 Budget $ in Millions 17.20 17.20 Unconditional Grant Decrease 100% 9.29 Financial Assistance Decrease 0.9% 13.11 14.37 Own Sourced Revenues 166.71 158.05 � Total Revenues ram__ SAINT JOHN 36 100.00 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 Decrease 6.54% It 92.20 86.17 38.02 37.57 Wages & Benefits Goods & Services 2021 Budget ■ 2020 Budget $ In Millions Decrease 4.26% Decrease 15.75% * 5.26 15.9416.65 12.85 ABCs and Grants Principle & Interest 3.002.00 1.56 0.55 0.30 2.36 Pay as you Go Transfer to Reserves Other (Landfill, Restructuring) 37 SAINT JOHN Other important budget highlights; • New Strategic Plan • New Regional Economic Development Agency • New Integrated Customer Service Centre • New Corporate Realignment • New City Hall project completed • New Common Council • Local 18 contract — first contract negotiated to include Wage Escalation Policy • Management and Professional Group — 0% wage increases for 2021 & 2022 38 Q--)- SAINT JOHN 2021 Draft Operating Budget Summary Guided by the Principles of the Long Term Financial Plan the City is now moving towards • Long Term Sustainability— Maintaining reserve fund balances, debt management • Increased Flexibility - Balance structural deficit in 2021, reduction of debt principle and interest • Reduced Vulnerability —Eliminated provincial transfers • Accountability —Budget monitoring policy Future Council and Staff have a plan, the policies and financial goals, to continue down the path of financial success for the Citizens of Saint John 39 Q-) SAINT JOHN 2021 Draft General Fund Budget • Historical Financial Reset • Structural Deficit Eliminated • No short term Provincial funding • Earliest approval of an operating budget • Long term financial plan alignment • Reduced principle and interest • Significant reduction of reliance on debt (pay as you go, reserves) • Financial flexibility, resiliency (operating reserves) 40 ram-_ SAINT JOHN • Property Tax Revenue assumes 1.5% increase over 2020 • Assumes Unconditional Grant remains the same as 2020 • Staff recommend that the Finance approve the 2021 Draft General Fund Budget as presented and submit to the next meeting of Common Council for receive and file. 41 Q--)- SAINT JOHN 2 42 1 f� SAINT JOHN COUNCIL REPORT M&C No. 2020-XXX Report Date August 13, 2020 Meeting Date August 13, 2020 Service Area Finance and Administrative Services His Worship Mayor Don Darling and Members of Common Council SUBJECT: City of Saint John Climate Change Adaptation Plan Presentation OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. Head City Manager Samir Yammine Kevin Fudge I John Collin RECOMMENDATION It is recommended that Finance Committee approve the following : 1. Adopt the climate change adaptation plan as presented by Acap saint John 2. Develop a climate change committee to oversee implementation of the climate change adaptation plan 3. Incorporate the Climate Change Adaptation Plan into the next iteration of the Municipal Plan or during the next comprehensive review EXECUTIVE SUMMARY The purpose of this report is to have Atlantic Coastal Action Program (ACAP) present the City of Saint John Climate Change Adaptation Plan to the Finance Committee and make recommendation to Council to adopt the Plan. PREVIOUS RESOLUTION In May 6, 2019, Common Council (M&C 2019-107) approved the City of Saint John Climate Change Action Plan. REPORT In collaboration with the City of Saint John, and through support from New Brunswick's Climate Change Secretariat, ACAP Saint John has developed a Climate Change Adaptation Plan for the City. The work on the plan started in 2018 with the aim to have the plan completed in March 2020. However, due to 43 -2- COVID-19 ACAP were not able to present the plan to the Finance Committee and Council The Plan consist of the following: - Identify gaps in legislation and planning in order to take action toward new policy measures; - Assess risks and vulnerabilities including infrastructure, residents & businesses, natural environments, coastlines, and vulnerable populations; - Create and maintain resources with information on adaptation; - Engage and educate the community, and; - Recommend Adaptation actions to increase resiliency. Project findings will be included in revised editions of the Municipal Plan and will influence the future growth and development of City neighborhoods and neighborhood dialogue. STRATEGIC ALIGNMENT The plan is part of the City of Saint John Climate change Action Plan and is clearly aligned with Plan SJ and Asset Management Policy SERVICE AND FINANCIAL OUTCOMES The cost to develop the Climate Change Adaptation Plan was fully covered by the Province of New Brunswick Environmental Trust Fund. The total cost to develop the plan is estimated to be $100,000 over two years. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS Staffs from Saint John Water, Transportation & Environmental, Finance and Administrative, EMO and Growth and Community Development Services were part of the steering committee and have been involved from the start in the development of the plan. ATTACHMENTS PowerPoint Presentation El P L 0 ri F, -yam` � -stir 3AN ' ' y `� _ ��G�4' T� — — � _� �` _. :-- � -- •may-. __r_�-Y� _ —�•. - _�_1 r � � H - — _ t7 ;;Mao 09 yam' �� —� - � _ L�E _ � __ _ a .: rt - -- _�-yam=- - ��'_ t - _ —_ -� - - _ - #r_-.• - - _�� SINCE 1992, ACAP SAINT JOHN HAS BECOME KNOWN FOR PARTNERING AND WORKING WITH THE COMMUNITY TO HELP PROVIDE SOLUTIONS TO EXISTING AND PENDING ENVIRONMENTAL CHALLENGES. ACAP SAINT JOHN ENVISIONS A RESTORATIVE COMMUNITY THAT EMBRACES THE INTER -DEPENDENCE OF THE UNIQUE SOCIAL, ECONOMIC AND ENVIRONMENTAL CHARACTERISTICS OF THIS BEAUTIFUL REGION. •� !�+ � ._lam•,' •ti� ��• �'r. •ry. ,:�.-x fir. •' +� .•'t,•� �-''�� 'i?�'' ��; 0 cAINT Jv C� IV qp- aill-ombi low-, ilk, 7 Y4� L. a 16 1 'WT Jill. Vol 4�1p� all , Ilk 4L j Z14 'A. 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' `-� . � # - �' � _ � „*` 4. .�_ c 41 oil :�_.: 1r*tip. _.• _ �r w'� =r rR .. �-� a - ". *'ti 'ai r �+�'i- ^ l .' _ - mp r - + .. 1 + ti+l + {�,� � �' - I �� 410 IL Ah �' "' �, J� = dirt' ' ' i rt, } i ..♦ * # - - 't`%*•F* �f-' a,41111 '--� 'A ■__ -� - .. - . - 111 Al a kill,# + t +«kh till f; A IF& &q 1 / 44 k r ! 53 Risk Rating High Medium - High Climatic Change Sea Level Rise Increased Precipitation Increased storm severity Impact Statement -Increased loss of land due to flooding and coastal erosion -Increased risk of habitat loss due to coastal squeeze -Higher spring freshet flooding due to increased precipitation -Isolation, accessibility, and mental health challenges due to flooding -Flooding due to storm surge Vulnerabili Ranking 5 1 d Akm 1 d r 1�i ijr r or y r ■fl�. �' I r r `� {�•• IL - f _ r 1 _ 1 ■ r Imo■ ■ r •r m ■ 1 i7 • 1 , 1 r`- mr e. % OF dr r qL_ il— AV j + al r dF f 1 ■ r. , 1 L �4 qd of le a 149 I r �' 1 r ♦• d -6 of Ctrm I'S S U-E: INL�AND F L0"OCYD1 G DUE T II r _ ` � f ti 2 • i• 1 f arRAINFALL Imo' �• -�6� ' *F dI J� 3 '1 L L 1 r+ 1 1� 1 d dl r - •r ALF - 7 d A•dr -116A+ TJ r r' r tArw ■ 1p `r r� ■ d 1 1 i . h + i • * 3 L R � d- JL ■ F 1� y EASE r 1r • r * ' .r f y f ■ ■ i WET AREAS MAPPING HAS BEEN COMPLETED TO A.DENTIFY THE EXTENT OF INLAND FLOODING [USING riI: FLOOD LEVELS FROM 2018 EVENT TO DETERMINE rr A' �A J 1 i~ NO FLOOD SPRING FRESHET RISKS] FI• r • • � J � * i f 1� _ FL -{ APPROX _ r*+ *,• -w a,WAIA ,r FLOODING A. �_.w__ - _ J• ' ■1 ; AL A. r lir ■ ' + dk J■r r Lpr T r • •�T a. ■ * �. ! ti TY , r r 1r 21. ir r. •- f 1 f. • 1f+ "�-� '~ as � � d f MIL d C .� I■ i f - r r lir r 1 - • 1 1 1 11 d• _ .'1 J r 1 A- A. J 1 ■ 1 1 L T ■ y i 11 �� . 677 PROPERTIES AFFECTED BY 2018 -* Mr ; ..4■ WITH A COMBINED ASSESSED PROPERTY d, 71+`� VfALU—OzFrAPPRO.XIM 290)200)&0 ME r - - y ■ ' •dy J •+ +1 f J• L - + J r '' �.• y ■1 T ' L, f J� -�_ k F9 -5 _ M 'Lr _ A,- � �-L J _•• J T ti ■ ' r Yd T + y r + .9 qr �y • { dl op J* ' T ! ■ r 7 X. rf r - r + i f . i r� �1! J j 1 ti - ! ■ r 1 ! r r f 4 _ ; IF WP4 wo %� %w, - - 'M IN L . 1 M1 1 "d ' - 1 - f WL ■ - 9 .*lr F I� t f i 5 � E � � r CLIMATE ISSUE: RISING SEA LEVELS USING PROVINCE OF NEW BRUNSWICK'S DRAFT COASTAL FLOOD HAZARD MAP HELP TO DETERMINE LOCAL IMPACTS APPROX. 1,734 PROPERTIES AFFECTED BY SEA LEVEL RISE FLOODING INCLUDING 190 INDUSTRIAL PROPERTIES WITH A COMBINED ASSESSED PROPERTY VALUE OF APPROXIMATELY $1,093,400,000 6m SEA LEVEL RISE FLOODING WILL DIRECTLY IMPACT APPROXIMATELY 32% OF SAINT JOHN'S POPULATION 56 ONS FOR ADAPTATION IN SAINT JOHN =D INTO EIGHT OBJECTIVES: Objective 1 Integrate climate change impacts into community planning Objective 2 Reduce shoreline erosion & promote natural infrastructure Objective 3 Protect natural spaces, local habitats & migration routes Objective 4 Provide public education on how to deal with the impacts of climate change Objective 5 Reduce the impact of climate change on human health Objective 6 Support vulnerable groups to increase adaptive capacity Objective 7 Increase resilience to flooding and sea level rise Objective 8 Increase resilience to extreme weather Iv Climate Change Impacts Addressed: I.E. Increased precipitation, sea level rise, extreme weather Action Benefit to Cost Ratio Lead Completion Target Risk Rating Supporting Department & Initiatives and Partners Policies Adaptation Identifies the availability of funding sources City Short Term: 2021-2023, Determined by Current policies and objectives for the and ancillary benefits of each task. Departments Medium Term: 2023-2025, risk and initiatives that City of Saint John. High: actions have the most resources and potential Long Term: 2026-2031+, vulnerability support the action. available and should be implemented as partnerships Ongoing: refers to an action assessment soon as possible. that is already being (High, Medium Medium: actions should be implemented completed, and should High, Medium, during routine maintenance or reviews, or continue to be implemented. Low) when the urgency of the climate impact increases. Low: actions have an unknown benefit -to - cost ratio and resources to support implementation have not been identified 99 r 00, U �,NN D Tpn AC;T1 OBJECTIVE 1: INTEGRATE CLIMATE CHANGE IMPACTS INTO COMMUNITY PLANNING Action Benefit to Lead Department Completio Risk Supporting Initiatives and Cost Ratio & Partners n Target Rating Policies 2. Set development standards and High ACAP/Growth & Medium High risk ACAP SJ (2016) - Coastal Hazards zoning to restrict development in Community Services term Characterization coastal areas and near flood -prone (Infrastructure N13 Flood Risk Reduction Strategy areas. Account for 1 in 100 year Development)/ (2014) Objective 2, Actions 4, 7 storm/flood events. Develop SJ The City of Saint John Flood Risk Area By-law (2005) Storm Drainage Design Criteria Manual (2016) 59 OBJECTIVE 4: PROVIDE PUBLIC EDUCATION ON HOW TO DEAL WITH THE IMPACTS OF CLIMATE CHANGE Action Benefit to Lead Department Completio Risk Supporting Initiatives and Cost Ratio & Partners n Target Rating Policies 23. Integrate climate impacts into High EMO/ Growth & Short term Medium- SJ Energy Vegetation Management public education for storm Community Service/ high risk Details (online) preparation. Make information Communications/ available on EMO website, during ACAP/ Saint John Emergency Preparedness week and in Energy development permits. OBJECTIVE 7: INCREASE RESILIENCE TO FLOODING AND SEA LEVEL RISE Action Benefit to Lead Department Completio Risk Supporting Initiatives and Cost Ratio & Partners n Target Rating Policies 45. Raise roadway elevations that are High Transportation & Long-term Medium- NBCCAP (2016)- 72 impacted by sea level rise, spring Environment/DTI/ high risk Asset Management Policy freshet and stormwater flooding. NB EMO 4„III I�IIIIIII �I 62 ..1 PLC �Ap SAINT JOHN •- BARRIE' I ` � f a 1 S � I - "dc I - Aff, i A CLIMATE CHANGE ADAPTATION E COMMITTEE) TO PARTICIPATE IN kND ENSURE ACTIONS FROM THE F ARE BEING IMPLEMENTED (OBJEC- IPDATES FROM THE CLIMATE COMI CITY COUNCIL ABOUT PROGRESS TO IMPLEMENTATION AND REVIEV ACTIONS IMF'►-c��►`, . Acboolol/Ap SAINT J H .. -� ,F. sop akPr .a JPP 5 � Fr 12 AW i —Map. ."�. _ Y 'l `4'• F _ +k 5• l +.` L L �lY _ ,5 - l ',J Ate+•~ y Aor 4 low s w -'� - ",4' . {. „ 'ramZVL ir I W.0�t� • �' '�;+� � ..a �{ . - - �' . - � . � �r. � i 'gyp '!'� Y . _ � M' �' �' �#�'4"•. �' _,�` �. r - - - �. { ` ,. -ram .-. •.r- NEXT STEPS 1.ADOPT THE CLIMATE CHANGE ADAPTATION PLAN AS PRESENTED BY ACAP SAINT JOHN 2.DEVELOP A CLIMATE CHANGE COMMITTEE TO OVERSEE IMPLEMENTATION OF THE CLIMATE CHANGE ADAPTATION PLAN 3.INCORPORATE THE CLIMATE CHANGE ADAPTATION PLAN INTO THE NEXT ITERATION OF THE MUNICIPAL PLAN OR DURING THE NEXT COMPREHENSIVE REVIEW ki-r.r — [If's i a FA �1111►IIM�Ii�I ION .' FORMATFOR MOREIN W\N\N.ACA pSj.ORG FACaBOOK-C OMIACAPSJ R TW .,10 H N ON @ACAV - . i I I a a• -- d + • �+ �L- SAINT ]OHN TRANSIT W' August 05th, 2020 Saint John Finance Committee Members, In response to the request to cap the Saint John Transit deficit to $250,000 in 2020 by the Saint John Finance Committee on July 23rd, 2020, the Saint John Transit Commission called a Special Meeting of the Board on July 271h, 2020. After review and assessment, and on the understanding that this request is to create a 'buffer' to mitigate unknown Covid-19 risks that may occur for the remainder of the year, the Board has voted to table any recommendations on this request at this time. The Saint John Transit Operational Audit will be delivered in August, and it would be irresponsible to implement any changes without the informed analysis that this will deliver. The Saint John Transit Commission will review the Audit recommendations and determine what, if any, changes can be implemented in advance of the January 1st implementation date that will ensure we can maintain the long term integrity of the entire Transit system and deliver any additional efficiency beyond the 26% reduction already delivered in response to Covid-19. We respectfully request that the Saint John Transit Commission be allocated time in the September Finance Committee meeting to report on the outcome of the Audit and any actions that could be implemented in the remainder of 2020 to reduce our projected $505,320 deficit. Respectfully Patricia Ellsworth Chairperson, Saint John Transit Commission 55 McDonald Street, Saint John, N.B. E2.1 OC7 * Tel (506) 658-4000 67