2021-07-22 Finance Committee Agenda Packet - Open Session
City of Saint John Finance Committee
Terms of Reference
1. MANDATE
CommonCouncil has established a Finance Committee and has given the Committee the
administrative powers and duties set out herein. The mandate of the Finance Committee
includes review of financial reporting, audit, accounting systems, internal controls budget
development, forecasting, fiscal management, resource allocation, open data, information
management and continuous improvement for purposes of making recommendations.
Ћ͵ MEMBERSHIP
a. The Finance Committee shall consist of a total of 5voting members of Council,
one of which is the Mayor;
b. The Chair and the Finance Committee shall be selected by the Nominating
Committee;
ĭ͵ Where a member of the Finance Committee fails to attend three consecutive meetings
of the Finance Committee without approval of the Committee, the member can be
struck from the Committee membership and replaced by an appointment of Council;
d. In the event that any member ceases to be a member of the Finance Committee before
the expiration of their term, Council may appoint another person to be a member for
the un-expired portion of the term;
e. In all other respects, the rules of procedure for the Committee shall be governed by the
and
f. The Chairperson will act as a liaison between the Committee and City Council.
Ќ͵ MEETINGS
a. The Finance Committee shall meet monthly and/or as required at the call of the
Committee Chair;
b. Finance Committee meetings will be open to the public in accordance with the
requirements of Section 68 of the Local Governance Act. The public may be
excluded only in the circumstances identified therein;
c. Meetings shall be set for 1 to 2 hours in duration, but can extend beyond 2 hours at
the discretion of the Committee;
d.All decisions of the Committee shall be in the form of resolutions duly passed by a
majority of its members present. The Committee shall strive to reach consensus on
issues, and shall forward recommendations in the form of Finance Committee
resolutions to the Council;
e. Quorumfor any meeting will be at least fifty (50) percent of the number of members
of the Committee;
f. Finance Committee meetings shall be attended by the City Manager, the Chief
Financial Officer and as required a representative from the External Auditors. In the
event of the inability to attend, a person designated by him or
her for that purpose shall do so;
g. The Chief Financial Officer or the City Manager may have other employees attend with
them provided the Committee consents; and
h. The External Auditors shall have free and confidential access to the Finance
Committee.
4. ADMINISTRATIVE POWER AND DUTIES
It will be the work of the Committee toreview the financial information respecting the City's
activities, monitor the audit process, make budget recommendations to Common Council,
monitor continuous improvement initiatives, and assess the existence and adequacy of
systems of corporate control and management of business risk.As a consequence of
performing that work the Committee will report in writing to Council and/or provide written
policy recommendations to Council with respect to:
a. The independence, professional qualifications and audit scope and approach used by
auditors;
b. The planned activity and results of the external audit;
c. Assessment of business risk and internal controls;
d. The results of the annual financial audit and recommendation of approval of the
financial statements;
e. The planned activities and results of the internal audit services and recommendation of
approval of the internal audit plan;
Ņ͵ The General Operating and Capital Budgets;
g. The Utility Operating and Capital Budgets;
h. Property Tax Rates and Utility rates;
i. Proposals for tendering for External Audit services;
j. Long Term Financial Plans;
k. Continuous Improvement initiatives; and
l. Other matters as the Committee believes are relevant to the financial management of
the City's affairs or as referred to them by Common Council.
5. REPORTING
a. The Finance Committee will be provided with secretarial support by the Common
Clerk's Office;
b. The Common Clerk will ensure that as soon as practicable after each meeting, minutes
of that meeting including the names and titles of all persons present and a record of all
decisions reached, are prepared and distributed to all Members; and
c. The Committee Chair shall report to Common Council at least annually on the activities
of the Committee and a copy of the minutes of each meeting of the Committee will be
made available to members of Common Council.
Finance Committee Meeting
Open Session
April 28, 2021
MINUTES OPEN SESSION FINANCE COMMITTEE MEETING
APRIL 28, 2021 AT 5:15 PM
MEETING CONDUCTED BY ELECTRONIC PARTICIPATION
Present: Mayor D. Darling
Councillor D. Merrithew
Councillor G. Norton
Councillor D. Reardon
Councillor G. Sullivan
Also
Present: Commissioner of Finance and Treasurer K. Fudge
Manager Human Resources S. Hossack
Commissioner Transportation & Environment M. Hugenholtz
Commissioner Saint John Water B. McGovern
Commissioner Growth & Community Services J. Hamilton
Manager Workforce Effectiveness L. Robichaud
Senior Financial Manager C. Lavigne
Senior Financial Manager D. Arbour
Senior Financial Manager T. Fawcett
Director of Strategic Affairs I. Fogan
Fire Chief K. Clifford
Municipal Engineer M. Baker
Fire Chief K. Clifford
Energy Manager S. Yammine
Administrative Assistant K. Tibbits
1. Meeting Called To Order
Councillor Merrithew called the Finance Committee open session meeting to order.
1.1 Approval of Minutes March 31, 2021
Moved by Councillor Sullivan, seconded by Councillor Norton:
RESOLVED that the minutes of March 31, 2021 be approved.
MOTION CARRIED.
1.2 Finance Committee A Term in Review
Key comments include:
Changed audit can active and engaged committee involved in the
creation of the long-term financial plan and a suite of policies including the wage
escalation policy and debt management policy; policies in place to promote good financial
governance.
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Finance Committee Meeting
Open Session
April 28, 2021
Polices will be amended and created as required; new committee should continue to
monitor all polices.
Significant improvement to the over this term.
There has been a positive progression over the years including an alignment with best
practice policies, long-term financial goals and a report card.
In 2016, there was discussion of rotating members between the Growth Committee and
the Finance Committee continuity is important and recommends that the Committee
composition remain the same over the entire term.
Public is more aware of the financial targets, challenges and opportunities that exist and
have been made aware of key financial policies; public engagement and strategic
communications are important.
Committee has strengthened strategies, objectives and metrics; focused and transparent.
Hopeful that the next committee continues with and supports the progress that has
occurred.
Fiscal health has been embedded into our priorities, long-term strategies have been
developed, and our long-term thinking has improved - policies, continuous improvement,
opportunities identified from the Ernst & Young review, paid debt down by 20%, capital
from operating, reserve funds, tax rate reduction in place.
Built confidence in the community, region and province.
Moved by Councillor Sullivan, seconded by Councillor Reardon:
RESOLVED that item 1.2 Finance Committee A Term in Review, be received for information.
MOTION CARRIED.
1.3 Asset Management Policy Amendment
(Mr. M. Benson of RV Anderson and Mr. S. Yammine joined the meeting electronically)
Mr. McGovern stated
deficit through the various policies under the Asset Management program. The asset
management program is maturing and therefore it is necessary to review and update the policies
to allow for infrastructure investments to improve quality of life, decommission assets, and
establish criteria to prioritize capital investments. In conjunction with the Climate Change
Adaptation Plan, it is necessary to establish procedures to evaluate climate change risks.
Strategy and Capital Budget Policy
Moved by Mayor Darling, seconded by Councillor Reardon:
RESOLVED that the Finance Committee endorse the following:
considerations as a single Asset Management (AM) principle.
Update the Asset Management Strategy to include the following:
Define asset management strategies to maintain a defined Level of Service.
Develop Capital Budget workflows, procedures, and prioritization criteria/approach.
MOTION CARRIED.
1.4 Long-Term Financial Plan Financial Health Scorecard
Mr. Fudge commented on the accomplishments undertaken by the Finance Committee including
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Finance Committee Meeting
Open Session
April 28, 2021
embedding that plan into policy to guide decision making into the future. The financial health
scorecard demonstrates a picture of discipline, sustainability, and vision while demonstrating
measures and results.
Long-Term Financial Plan Financial
Health Scorecard against the
goals set in the Long-Term Financial Plan. Overall, the City is on track with the 2030 plan, however
adjustments will be required to reflect new information and experience. Principles, polices and
targets will remain largely the same, but forecasts will be updated every year based upon such
things as new council priorities, strategic plan
measure how the City is doing in comparison to the Long-Term Financial Plan and provide a
concrete meas
Moved by Councillor Sullivan, seconded by Mayor Darling:
RESOLVED that the Finance Committee amend the Capital Budget Policy for 2022 to reflect
change in capital renewal ratio in General Fund to 85/15; adopt a new Financial Health Scorecard
for 2022; and that the 2021 budget health scorecard be received for information.
MOTION CARRIED.
1.5 Utility and General Fund 2021 Capital Programs Revision II
Mr. Baker reviewed the submitted presentation on revision II of the 2021 Utility and General
Fund Capital programs including an update on the COVID-19 Resilience Infrastructure Fund and
the status of the Community Development Fund. The goal is to ensure that the City leverages all
available money under both funds. There is no cost increase to the City, but it provides for
additional funding from these programs from other levels of government.
Moved by Councillor Reardon, seconded by Councillor Sullivan:
RESOLVED that the Finance Committee:
Approve revision II of the 2021 Water and Sewerage Utility Fund Capital Budget in the
amount of $12,608,934 (gross) with contributions from other sources of $6,362,934
yielding a net capital budget in the amount of $6,246,000 to be funded by pay as you go
(net) as set in Appendix A;
Approve revision II of the 2021 General Fund Capital Budget in the amount of $45,309,783
(gross) with contributions from other sources of $29, 442,183, yielding a net Capital
budget in the amount of $15,867,600 to be funded by debt issue (net) as set in Appendix
B; and
The Finance Committee recommend approval of the Utility and General Fund Capital
Budgets at the next meeting of Common Council.
MOTION CARRIED.
Adjournment
Moved by Councillor Reardon, seconded by Councillor Norton:
RESOLVED that the Finance Committee meeting be adjourned.
MOTION CARRIED.
The Finance Committee open session meeting held on April 28, 2021 was adjourned at 6:50
p.m.
3
Finance Committee Orientation Best in Class
Financial Management
July 22, 2021
History of Finance Committee
Mandate of the Finance Committee prior
to 2015 had a limited mandate:
A few meetings a year to oversee
financial reporting, internal controls,
external audit and accounting
systems.
Common Council made Fiscal
Responsibility a strategic priority in 2016.
Common Council expanded the mandate
in 2016 to include budget development,
continuous improvement, fiscal
management (policy), long term planning
and resource allocation.
Finance Committee -Terms of Reference
5 Voting Members, one Chair and Members selected
being the Mayor (3 for by Nominating Committee
Quorum)
Where a member fails to
attend 3 consecutive
Council Procedural Bylawmeetings without approval
of the Committee, the
All decisions in the form of member can be struck from
resolutions duly passed by a the membership and
majority; recommendations replaced by an appointment
of Committee brought of Council
forward to Common Council
Meetings are typically
Chairperson will act as the monthly or as required at
liaison between the the call of the Committee
Committee and City CouncilChair
Strategic Financial Management
1.
Established 10 Year Financial Targets
Tax reduction plan $1.57 by 2030
Debt Reduction Targets 25% by 2030
Operating Budgets Structurally Balanced
Planned funding in reserves to reduce
vulnerability and improve flexibility
Sustainable wage and benefit budgets
Asset Management Plans (prioritize
needs over wants)
Improved budget monitoring
Strengthened Financial Governance
The Sustainability Wheel
GFOA Why Financial Governance is Important
1.Institutionalize good financial management
practices.
2.Clarify and crystallize strategic intent for
financial management to taxpayers.
3.Define boundaries.
4.Promote long-term and strategic thinking.
5.Manage risks to financial health of
organization.
6.Comply with established public
management best practices.
Council Approved Financial Policies
Policy#Policy TitleStatus
FAS-001Asset Management PolicyApproved
FAS-002Investment Management PolicyApproved
FAS-003Operating & Capital Reserves PolicyApproved
FAS-004Operating Budget PolicyApproved
FAS-005Capital Budget PolicyApproved
FAS-006Debt Management PolicyApproved
FAS-007Wage Escalation PolicyApproved
FAS-020Long Term Financial Plan PolicyApproved
FAS-021Budget Monitoring PolicyApproved
FAS-022ABC Reporting PolicyPending
1.Budget Shortfall -Structural Deficit
2018-2021 Budget
$170
$166.70
Provincial
Short-Term
$165$160.30
Assistance
$9.3M
$160
$156.10
$7.1M
$157.30$157.30
$4.7M
$157.40
$155
$153.20
$150
$151.40
$145
$10 Million Restructuring:
-$6M Wages
-$3-4M Operating
$140
2018201920202021
Operating ExpenseReocurring Revenue
Wages and Benefits (Approximately 55% of Budget)
4.50%
4.00%
4.00%
3.75%3.75%
3.50%
3.50%
3.00%
2.97%2.97%2.97%2.97%
2.96%
2.90%
2.75%
2.50%
2.50%2.50%2.50%2.50%2.50%2.50%2.50%2.50%2.50%2.50%
2.25%2.25%2.25%2.25%2.25%
2.00%
2.00%2.00%2.00%
1.860%
1.83%
1.75%
1.53%
1.50%
1.50%
1.36%
1.040%
1.00%
1.00%1.00%
0.590%
0.56%
0.50%
0.390%
0.00%
0.00%0.00%
20142015201620172018201920202021
-0.48%
-0.50%
-1.00%
ManagementCUPE Local 486FireCUPE Local 18SJPAAssessment Base Growth
9
Operating Budget Policy
The Operating Budget Policy (FAS-004)
Compliance is critical to prevent the City from falling back into structural deficits
Policy does not allow the City to balance reoccurring operating expenses with one
time or short-term revenue.
One-time revenues shall be directed away from funding services and directed to one
time uses (pay as you go, reserve funding, debt servicing, capital funding).
Policy calls for decreasing City reliance on sources of revenue outside its control such
as grants from other levels of government
Policy states budget must be affordable (the City can bear the budgeted costs
without incurring financial difficulty or risking other undesirable outcomes)
Service areas should develop cost recovery policies as the basis for setting user fees
Government grants will be pursued for initiatives that are in line with Council
priorities (Long Term Financial Plan, approved budgets, etc..)
Wage Escalation Policy
Take control of your expenses before they take control of you:
Wage Escalation Policy (FAS-007)
Compliance is critical to prevent the City from falling back into structural deficits
To be sustainable, the City must control costs that escalate faster than its revenue
Wage escalation policy ensures the City spends within its means
Wages escalation does not cause a tax rate increase
Wage escalation does not cause a reduction in service levels to balance the budget
(maintains and protects service to the community)
Equitable share in prosperity as tax base grows so does wage escalation
Wage &Benefit budgets shall be based on a three-year rolling average of tax base
growth
Rolling average smooths fluctuations, reliable data that can be validated, is predictable, affordable and equitable
Wage and Benefit budgets shall not exceed CPI plus 1% unless supported by a
business case
2. Significant Debt load
Taxpayer Debt
$ in Millions
$130
$119.1
$117.9
$117.1
$120
$112.1
$103.9
$106.6
$103.7
$110
$102.5
$102.4
$96.6
$100
$93.8
$3.5 million in interest
$90
$79.9
payments represents 7 Cents on
$80
$73.4
the Tax Rate
$70
$58.7
$60
$50
20082009201020112012201320142015201620172018201920202021
Debt Management Policy
Borrow wisely:
The Debt Management Policy (FAS-006)
Best Practice the Government Finance OfficerAssociation strongly
encouragethe development of a formal debt policy
Debt financing is obtained only when necessary and is strategic (in
accordance with the Long-Term Financial Plan Debt Reduction Targets
and Capital Plans)
Long-term debt shall not be used to fund operating or maintenance
costs or used as a tool to balance the operating budget
The Long-term Debt amortization period shall not exceed the life of the
asset it is financing
Debt Management Policy
Debt Limits
Pay As you Go
Funding Capital though Operating
Budget rather than through Debt
payments required on the debt.
Justified on the grounds of keeping
Debt per Capita:
of debt Limit-$1600; Target -$1175
(thereby preserving future flexibility);
by 2030
Factors which favor pay-go financing
Debt Service Ratio: % of operating
include:
budget that is devoted to servicing
debt.Limit12%; Target9% by
Asset Renewal Projects;
2030
(Aspirational goal Debt only for
new projects)
Total Debt Outstanding as a
Percentage of Operating Budget:
Assets with a useful life that is less
Percentage of operating revenue
than 10 years for example, IT
required to extinguish the Debt. Limit
equipment and road maintenance;
70%; Target 50% by 2030
Situations where market conditions
Additional debt is only permissible
favourthe use of cash rather than
when existing debt is within this
debt (high interest rates).
parameter.
2021 Finance Committee Update
MeasureDirectionLTFP BaseLTFP Stretch2021F Result
Debt per Lower is
$1,427$1,427$1,394
Capitabetter
Debt Service Lower is
10.5%10.5%10.1%
Ratiobetter
Total Debt as
a % of Lower is
60%59%59.9%
Operating better
Budget
Cumulative
Higher is
Debt $5.1M$5.1M$7.4M
better
Reduction
3. Infrastructure Deficit
indicated the City has
infrastructure deficits of
approximately $100M in the
General Fund and $300M in Saint
John Water
Infrastructure Deficit are assets
that are beyond their useful life
that require reinvestment
Sustainable funding required to
address the deficit
Asset Management Policy
Take good care of your property:
Asset Management Policy (FAS-001)
Compliance is critical to reducing Infrastructure Deficit
Improves Customer Service by maintaining clearly defined level of
service and asset condition standards
Improves the transparency and accountability of community
investments
Evaluates risks of asset failure, including the threat of climate change
Maintenance and Lifecycle costs must be considered when making asset
investment decisions
Quality of Life amendment proposed
Capital Budget Policy
Fix the roof before you buy new living room furniture
Capital Budget Policy (FAS-005)
Critical for reducing infrastructure deficit
85% of City funded capital must be Renewal and 15% for New Assets
Prioritizes how capital money is spent mandatory, risk, priority of
Council
Only City owned assets shall be funded in the Capital Budget.
Inter -Governmental capital grants shall only be pursued for the
approved Capital Budget
Capital Budget Surpluses shall be, with Council approval: a) Realized as
savings resulting in reduced debt financing; b) Used to offset deficit in
other approved Capital Budget shortfalls; c) Leveraged to address the
infrastructure deficit approved in long term capital plans
4. No Flexibility in Operating Budget (High Risk)
City had no reserves to
protect itself from
unanticipated weather
events (Ex: 2015 Severe
Snow Events put Saint John
in $3.5M deficit by the end
of July)
Almost the entirety of the
Capital Budget was debt
financed and no
contingency plan
Exposed to risks outside of
NO RAINY DAY FUND
-19)
Very little financial flexibility
to restructure
Reserve Policy
Save your money for a rainy day:
Operating and Capital Reserves Policy (FAS-003)
Policy is critical to mitigate risk and changing mindset from spend (borrow) first
to save first
Ability to fund unforeseen events enables the City to meet other
financial targets (debt, tax rate, infrastructure, etc.)
Policy stipulates Reserve Funding shall be for:
Unforeseen events
Planning for Capital Renewal
Funding Future Liabilities
One-time operating expenditures that are not part of the approved budget
Infrastructure deficit
Investment or Growth Opportunities
Reserves
How are we doing on saving our money for a rainy day?
1.Unexpected Severe Weather -
Winter Weather Reserve
2.Unexpected Infrastructure Failures-
Capital Reserve
3.Covid-19 Risk Safe Restart Reserve
4.Unanticipated Employee Liabilities
Benefit Fluctuation Reserve
5.Restructuring Needs
Restructuring Reserve
6.Growth Opportunities Growth
Reserve
7.Debt Strategy -Vehicle & Computer
Replacement Reserves in place
Budget Monitoring Policy Supports Reserve Policy
Budget Monitoring Policy (FAS-021)
Policy is critical to reserve fund strategy and to drive costs down to support tax
reduction and service delivery
Enhances budget accuracy, flexibility, accountability and cost control by
ensuring budget allocations are managed and adhered to
Integrates budget monitoring practices
Debt Management strategies
In principle, all budget surplus and deficits are non-recurring
Personnel and non-personnel budgets shall be managed separately
Personnelsurpluses and deficits should not subsidize goods and services & vice
versa
Budgetsurplus and deficits shall be analyzed annually to determine if
permanent budget are required
If required, permanent budget adjustments will be applied to the Operating
Reserve until it is fully funded and thereafter applied 50/50 to the Capital
Reserve and debt reduction
5. Commitment to Financial Excellence
Long-Term Financial Plan Policy (FAS-020)
Embeds and institutionalizes financial best practice into the
culture of the organization
Common sustainability
Commoncommitment to long term financial planning
Commoncommitment toadherence tofinancialpolicy
Changes to the Policy require 2/3 vote of the total membership of
Council
in the Financial Health Scorecard to demonstrate accountability to
the public.
Good governance is at the heart of any successful
business. It is essential forany organization to achieve
its objectives and drive improvement.
Conclusion
Financial Results 2020
nd
Finance Committee July 22, 2021
Introduction
•2020 was not a normal year
•Cyber Attack
•Restructuring
•COVID-19
•General Fund results
•Utility Fund results
•What is the consolidation?
•Agencies, Boards & Commissions
•Consolidated results
2020 General Fund Highlights
Revenues -$3.6M vs Budget
+$2.1M vs
Budget
+0.04M vs Budget
Covid Losses in
parking & fees
offset by Safe
Restart Funding
from PNB &
-$1.0M vs
Insurance proceeds
-$4.7M vs
Budget for Cyber Attack
Budget
2020 General Fund Highlights
Expenditures -$2.6M vs Budget
+0.9M vs
Budget
-$2.4M vs
Budget
-$0.04M vs
Budget
-$1.1M vs
Budget
2020 General Fund Highlights
Total Net Deficit $991,456
Savings
2020 Utility Fund Highlights
Total Net Surplus$969,036
Revenues on
Budget!
-$2.1M vs
Budget
Extra
$1.2M
-$0.08M
transferred
vs Budget
to reserves
due to Safe
Restart
funds
Applicable Legislation
New Brunswick Local Governance Act
•Section 8(2) –The City cannot own or operate a
corporation for the purposes of making a profit
•Section 99(2) and 99(3) –Every year, the City
must provide an estimate of how much it will
cost to operate and how much it will raise in
revenue. If there is an projected difference
between the two estimates, the City must
provide the sources by which the difference is to
be raised. In essence, the City must balance its
operating budget
•Section 117(4) –The Water & Sewer fund must
produce an annually balanced budget by
charging its users for the service or utility it
provides.
Applicable Legislation
Public Sector Accounting Standards
•Issued by the Public Sector Accounting Board of
Canada of Chartered Professional Accountants Canada
(CPA)
•To serve the public interest by strengthening
accountability in the public sector through developing,
recommending and gaining acceptance of accounting
and financial report standards of good practice¹
•PSAS are an extension of Generally Accepted
Accounting Principles (GAAP) as defined by CPA
Canada
•Requires the consolidation of all Saint John entities to
present one set of financial statements for public use
¹Paragraph .01 CPA Canada Public Sector Accounting Handbook
Entities of Consolidation
Mayor & Council
Separate Legal Entities
controlled by Board of
Directors
General FundsW&S Funds
Canada Games
SJ Transit
Audited by
Aquatic Centre
Deloitte
Audited by
Police
Deloitte
Commission
SJ Parking
TD Station
Audited by
Audited by
Develop SJ
Board of Commissioners appointed
Deloitte
Deloitte
Audited by
by Mayor & Council
Deloitte
Trade & CC
LBR
Public Library
Audited by
Audited by
Saint John Energy
Deloitte
Deloitte
Consolidated Financial Statements
•Deloitte has completed the audit of the Consolidated City of
Saint John financial statements, as at December 31, 2020
•Audit opinion of the financial statements is clean: the
financial statements present fairly, in all material respects, the
financial position of the City in accordance to Canadian public
sector account standards (“PSAS”)
Method of Accounting
•The consolidation is a very complex process that takes the
General Fund numbers:
•adds in all the other Funds & ABCs
•Changes the accounting and presentation of the
numbers
•Eliminates the duplication (ie. Revenue that is an
expense in another entity)
•Financial Statement terms are different
•The City’s requirement of a balanced budget is NOT
based on these financial statements
Major Accounting Differences
General Fund FinancialsConsolidated Financials
•Capital Costs are •The total cost of capital
expensed when asset are expensed over
incurredtime (amortization)
•Principal Repayments •Principal Repayments
are expenseddo not hit the
VS.
statement of operations
•Funding relating to
capital assets offset the •Funding relating to
expenditurecapital assets is
included in revenue
when it is received
2020 Statement of Operations
City of Saint John Consolidated
2020 $2019 $
Annual Operating Surplus (Deficit) 2,732,909 (8,580,305)
Government Transfers for Capital Assets 33,701,015 66,720,509
Other Contributed Assets for Capital - 2,202,801
Annual Surplus 36,433,924 60,343,005
2020 Statement of Financial Position Highlights
•Total Net debt has decreased by $49.1 Million
•Net debt is a key performance indicator of a Municipality’s
overall financial health. The higher the level of Net Debt the
more future revenues will be needed to fund past transactions
and events.
•New long-term debt was $32M which includes the $25M SJE
loan for a net to City LTD of $7M compared to $8.8M in 2019
Net Debt Trend
Safe Clean Drinking
Water Project
Recommendation
It is recommended that:
•Finance Committee approves the audited 2020 Consolidated
Financial Statements
•Finance Committee approves the 2020 statement of revenue
and expenses of the Saint John Trade & Convention Centre
•Finance Committee approves the 2020 City of Saint John Trust
Funds financial statements
•Finance Committee approves the 2020 Develop Saint John
financial statements
•Finance Committee recommends that Common Council
approve the 2020 Consolidated Financial Statements as
presented by staff as well as the TCC statement and Trust
Funds financial statement
Financial statements oftatements oftatements of
Develop Saint JohnDevelop Saint JohnDevelop Saint JohnInc.Inc.Inc.
December 31, 2020
Independent Auditor’s Report1–2
Statement of financial position3
Statement of operations and accumulated surplusStatement of operations and accumulated surplusStatement of operations and accumulated surplus4
Statement of changes in net Statement of changes in net Statement of changes in net financial financial financial assetsassetsassets5
Statement of cash flowsStatement of cash flowsStatement of cash flows6
Notes to the financial statementsNotes to the financial statementsNotes to the financial statements7–13
Deloitte LLP
Brunswick House
th
44 Chipman Hill, 7Floor
Saint John NB E2L 2A9
Canada
Tel: 506-632-1080
Fax: 506-632-1210
www.deloitte.ca
Independent Auditor’s Report
To the Board of Directors of
Develop Saint John Inc.
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Develop Saint John Inc.We have audited the financial statements of Develop Saint John Inc.We have audited the financial statements of Develop
Saint John Inc.(the “Corporation”), which (the “Corporation”), which (the “Corporation”), which
comprise the statement of financial position as at December 31, 20position as at December 31, 20position as at December 31, 20202020, and the statements of , and the statements of ,
and the statements of
operations and accumulated surplus, change in net assets and cash flow for the year then ended, and operations and accumulated surplus, change in net assets and cash flow for the year
then ended, and operations and accumulated surplus, change in net assets and cash flow for the year then ended, and
notes to the financial statements, including a summary of significant accounting policies (collectively notes to the financial statements, including a summary of significant accounting
policies (collectively notes to the financial statements, including a summary of significant accounting policies (collectively
referred to as the “financial statements”).
In our opinion, the accompanying financial statements present fairly, in all material respects, the In our opinion, the accompanying financial statements present fairly, in all material
respects, the In our opinion, the accompanying financial statements present fairly, in all material respects, the
financial position of the Corporation as at December 31, 20ecember 31, 20ecember 31, 20202020, and the results of its operations, , and the results of its operations, , and the results
of its operations,
changes in its net assets, and its cash flows for the year then ended in accordance with Canadian changes in its net assets, and its cash flows for the year then ended in accordance
with Canadian changes in its net assets, and its cash flows for the year then ended in accordance with Canadian
public sector accounting standards (“PSAS”).public sector accounting standards (“PSAS”).public sector accounting standards (“PSAS”).
Basis for Opinion
We conducted our audit in accordance with We conducted our audit in accordance with We conducted our audit in accordance with Canadian generally accepted auditing standards Canadian
generally accepted auditing standards Canadian generally accepted auditing standards
(“Canadian GAAS”). Our responsibilities under those standards are further described in the (“Canadian GAAS”). Our responsibilities under those standards are further described in the
(“Canadian GAAS”). Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements Responsibilities for the Audit of the Financial Statements Responsibilities for the Audit of the Financial Statements section
of our report. We are independent of
the Corporation in accordance with the ethical requirements that are relevant to our audit of the Corporation in accordance with the ethical requirements that are relevant to our audit
of the Corporation in accordance with the ethical requirements that are relevant to our audit of the
financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance financial statements in Canada, and we have fulfilled our other ethical responsibilities
in accordance financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance
with these requirements. We believe that the audit evidencewith these requirements. We believe that the audit evidencewith these requirements. We believe that the audit evidencewe have
obtained is sufficient and
appropriate to provide a basis for our opinion.appropriate to provide a basis for our opinion.appropriate to provide a basis for our opinion.
Emphasis of matter
We draw your attention to Note 1 of the financial statements, which explains the event that draw your attention to Note 1 of the financial statements, which explains the event that draw
your attention to Note 1 of the financial statements, which explains the event that resulted in
the dissolution of the Corporationorporationorporation. Our opinion i. Our opinion i. Our opinion is not modified in respect to this matter.
Responsibilities of Management and Those Charged with Governance for the
Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with PSAS,and for such internal control as management determines is necessary to
enable the preparation of financial statements that are free from material misstatement, whether due
to fraud or error.
In preparing the financial statements, management is responsiblefor assessing the Corporations
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless management either intends to liquidate the
Corporation or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Corporation’s financial reporting
process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are toobtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with Canadian GAAS will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these financial statements.
As part of an audit in accordance with Canadian GAAS, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an procedures that are appropriate in the circumstances, but not for the purpose of expressing
an procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Corporation’s internal control. opinion on the effectiveness of the Corporation’s internal control. opinion on the effectiveness of the Corporation’s
internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.estimates and related disclosures made by management.estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accConclude on the appropriateness of management’s use of the going concern basis of accConclude on
the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events and, based on the audit evidence obtained, whether a material uncertainty exists related
to events and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Corporation’s ability to continue as a going or conditions that may cast significant doubt on the Corporation’s ability to continue
as a going or conditions that may cast significant doubt on the Corporation’s ability to continue as a going
concern. If we conclude that a material uncertaintyconcern. If we conclude that a material uncertaintyconcern. If we conclude that a material uncertaintyexists, we are required to draw
attention in exists, we are required to draw attention in exists, we are required to draw attention in
our auditor’s report to the related disclosures in the financial statements or, if such disclosures are our auditor’s report to the related disclosures in the financial statements or,
if such disclosures are our auditor’s report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained
up to inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the dateof our auditor’s report. However, future events or conditions may cause the Corporation of our auditor’s report. However, future events or conditions may cause the Corporation
of our auditor’s report. However, future events or conditions may cause the Corporation
to cease to continue as a going concern.to cease to continue as a going concern.to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the Evaluate the overall presentation, structure and content of the financial statements,
including the Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and whether the financial statements represent the underlying transactions and whether the financial
statements represent the underlying transactions and
events in a manner that achieves fair presentation.events in a manner that achieves fair presentation.events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned We communicate with those charged with governance regarding, among other matters, the planned
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and sscope and timing of the audit and sscope and timing of the audit and significant audit findings, including any significant deficiencies in ignificant
audit findings, including any significant deficiencies in ignificant audit findings, including any significant deficiencies in
internal control that we identify during our audit.internal control that we identify during our audit.internal control that we identify during our audit.
Charted Professional Accountants
DATE
Develop Saint John Inc.
Statement of financial position
As at December 31, 2020
2020 2019
Notes
$$
Assets
Financial assets
Cash
Unrestricted
790,620 830,278
12
Restricted
1,000,000 1,000,000
Accounts receivable
Trade
631,844 64,437
Harmonized Sales Tax
23,008 15,117
3
Investments
—497,400
2,445,4722,445,472 2,407,232
Liabilities
444
Accounts payable and accrued liabilities
646,560646,560 509,615
555
Development incentives payable
65,00065,000 65,000
711,560711,560 574,615
Net financial assets
1,733,9121,733,912 1,832,617
Non-financial assets
Prepaid expenses
— 1,595
888
Land held for resale
3,053,011 3,055,574
10
Tangible capital assets
7,479,794 7,690,384
10,532,805 10,747,553
Accumulated surplus and contributionsAccumulated surplus and contributionsAccumulated surplus and contributions
Capital
1,000 1,000
Contributed equity
135,839 135,839
Accumulated surplusAccumulated surplusAccumulated surplus
12,129,877 12,443,331
12,266,716 12,580,170
The accompanying notes are an integral part of the financial statements.The accompanying notes are an integral part of the financial statements.The accompanying notes are an integral
part of the financial statements.
Approved by
_______________________________, Director
_______________________________, Director
Page 3
Develop Saint John Inc.
Statement of operations and accumulated surplus
Year ended December 31, 2020
20202020 2019
BudgetActuals Actuals
$$$
Revenue
Operating grant – City of Saint John
838,727 838,727 820,992
Other revenue
100,000 117,634 139,372
Saint John Industrial Parks
225,000 89,332 587,945
Province of New Brunswick
74,000 65,453 71,491
Government of Canada
180,000 — —
1,417,727 1,111,146 1,619,800
Expenses
Wages and benefits
635,000635,000 604,838604,838 618,132
Saint John Industrial Parks
205,000205,000 185,176185,176 545,887
Business development
130,000130,000 153,440153,440 139,529
Office, admin and IT
98,63098,630 142,878142,878 81,859
Strategic projects
140,000140,000 65,61765,617 162,256
Marketing
80,00080,000 56,008 71,167
Professional development
6,0006,000 6,053 13,299
Affordable neighbourhood
173,000173,000 — 1,017
Expenses before depreciation
1,467,6301,467,630 1,214,010 1,633,146
Depreciation
210,597210,597 210,590 210,591
1,678,2271,678,227 1,424,600 1,843,737
Annual deficit
— (313,454) (223,937)
Accumulated surplus, beginning of yearAccumulated surplus, beginning of yearAccumulated surplus, beginning of year
— 12,443,331 12,667,268
Accumulated surplus, end of yearAccumulated surplus, end of yearAccumulated surplus, end of year
— 12,129,877 12,443,331
The accompanying notes are an integral part of the financial statements.The accompanying notes are an integral part of the financial statements.The accompanying notes are an integral
part of the financial statements.
Page 4
Develop Saint John Inc.
Statement of changes in net financial assets
Year ended December 31, 2020
2020 2019
$$
Annual deficit
(313,454) (223,937)
Amortization of tangible capital assets
210,590 210,591
210,590 210,591
Change in land held for resale
2,564 456,997
Change in prepaid expenses
1,595 24,993
4,159 481,990
(Decrease) increase in net financial assets
(98,705)(98,705) 468,644
Net financial assets, beginning of year
1,832,6171,832,617 1,363,973
Net financial assets, end of year
1,733,9121,733,912 1,832,617
The accompanying notes are an integral part of the financial statements.The accompanying notes are an integral part of the financial statements.The accompanying notes are an integral
part of the financial statements.
Page 5
Develop Saint John Inc.
Statement of cash flows
Year ended December 31, 2020
2020 2019
$$
Operating activities
Annual deficit
(313,454) (223,937)
Items not affecting cash
Amortization of tangible capital assets
210,590 210,591
Non-cash investment (income) loss
— (37,341)
Changes in non-cash working capital items
Accounts receivable – trade
(567,407) 409,596
Accounts receivable – Harmonized Sales Tax
(7,891) 64,901
Accounts payable and accrued liabilities
136,945 190,869
Land held for resale
2,563 456,997
Prepaid expenses
1,5951,595 24,993
(537,059)(537,059) 1,096,669
Investing activity
Liquidation of investments
497,401497,401 —
Net (decrease) increase in cash and
cash equivalents
(39,658) 1,096,669
Cash, beginning of year
1,830,278 733,609
Cash, end of year
1,790,620 1,830,278
The accompanying notes are an integral part of the financial statements.The accompanying notes are an integral part of the financial statements.The accompanying notes are an integral
part of the financial statements.
Page 6
Develop Saint JohnInc.
Notes to the financial statements
Year ended December31, 2020
1.General
On January 1, 2018, as part of a decision made by the City of Saint John (the “City”),
SaintJohn Development Corporation was renamed Develop Saint John Inc. (the “Corporation”)
and the mandate of the Corporation changed. This change involved the resignation of the
former Board members, with the exception of two members, and the appointment of new Board
members. The change also involved the amalgamation of the Corporation with Saint John
Industrial Parks and a reorganization of operating responsibilities between the Corporation and
the City. The new mandate ofthe Corporation is centered on the City’s efforts to promote and
facilitate real estate development and tax base growth.
The Corporation is incorporated by an Act of the Legislature of the Province of New Brunswick
known as an Act to incorporate the Market Square Corporation, S.N.B 1980, c. 58.
At the end of the year, the Corporation transferred all of its assets and liabilities to the City andt the end of the year, the Corporation transferred all of its assets and liabilities
to the City andt the end of the year, the Corporation transferred all of its assets and liabilities to the City and
then it wound up on December 31, 2020. The transfer of net assets and responsibilitiesThe transfer of net assets and responsibilitiesThe transfer of net assets and responsibilities
occurred on December 31, 2020. The net impact of the transfer of assets and liabilities fromThe net impact of the transfer of assets and liabilities fromThe net impact of the transfer
of assets and liabilities from
Develop Saint John Inc. to the City of Saint John is presented as an adjustment to fund balanceDevelop Saint John Inc. to the City of Saint John is presented as an adjustment to fund
balanceDevelop Saint John Inc. to the City of Saint John is presented as an adjustment to fund balance
and accumulated other comprehensive income. The statement of financial position prior to tand accumulated other comprehensive income. The statement of financial position prior to tand
accumulated other comprehensive income. The statement of financial position prior to the
transfer is presented in Schedule 1.
2.Summary of significant accounting policiesummary of significant accounting policiesummary of significant accounting policies
Basis of accounting
These financial statements are prepared by These financial statements are prepared by These financial statements are prepared by managementmanagementmanagementin accordance with Canadian
public
sector accounting standards established by the Canadian Public Sector Accounting Board.sector accounting standards established by the Canadian Public Sector Accounting Board.sector accounting
standards established by the Canadian Public Sector Accounting Board.
Cash
Cash consists of cash in bank and cash on hand.Cash consists of cash in bank and cash on hand.Cash consists of cash in bank and cash on hand.
Investments
Fair value of the investments is Fair value of the investments is Fair value of the investments is determineddetermineddeterminedusing active trading market rates.
Financial instruments
The Corporation’s financial instruments consist of cash, accounts receivable, investments,
accounts payable and accrued liabilities, development incentives payable and other obligations.
Unless otherwise noted, it is management’s opinion that there is no exposure to significant
interest, currency or credit risk arising from these financial instruments. The fair value of these
financial instruments approximates their carrying values, unless otherwise noted.
The carrying value of accounts receivable and accounts payable and accrued liabilities
approximates fair market value due to short-term maturities of these instruments.
Tangible capital assets
Tangible capital assets are recorded at cost which includes all amounts that are directly
attributable to the acquisition, design, construction, development or betterment of an asset.
Cost includes overhead directly attributable and development, as well as interest costs that are
directly attributable to the acquisition or construction of the asset. Overhead costs such as
property taxes paid while asset is under construction will be added to the cost of the asset.
Page 7
Develop Saint JohnInc.
Notes to the financial statements
Year ended December31, 2020
2. Summary of significant accounting policies (continued)
Tangible capital assets(continued)
The cost, less residual value, of the tangible asset is amortized on a straight-line basis over the
estimated useful lives as follows:
LandN/A
Vehicles5 years
Park Improvements25 years
Barge Facility25-50 years
The Corporation has a capitalization threshold of $5,000. In the year of acquisition and disposal, The Corporation has a capitalization threshold of $5,000. In the year of acquisition
and disposal, The Corporation has a capitalization threshold of $5,000. In the year of acquisition and disposal,
one half of the annual amortization is charged. Any item purchased under this threshold is amortization is charged. Any item purchased under this threshold is amortization is charged.
Any item purchased under this threshold is
recorded as an expense in the year during which the item is acquired.recorded as an expense in the year during which the item is acquired.recorded as an expense in the year during which
the item is acquired.
Tangible capital assets are written down when conditions indicate that they no longer contribute Tangible capital assets are written down when conditions indicate that they no longer
contribute Tangible capital assets are written down when conditions indicate that they no longer contribute
to the Corporation’s ability to provide goods and services, or when the value of future economic to the Corporation’s ability to provide goods and services, or when the value of future
economic to the Corporation’s ability to provide goods and services, or when the value of future economic
benefits associated with the tangible capital assets are less than their net book value. The net benefits associated with the tangible capital assets are less than their net book value.
The net benefits associated with the tangible capital assets are less than their net book value. The net
write-downs are accounted for as expenses in the statement of operations.downs are accounted for as expenses in the statement of operations.downs are accounted for as expenses in the
statement of operations.
Developments in progress are not amortized until the asset is available for productive use.nts in progress are not amortized until the asset is available for productive use.nts in progress
are not amortized until the asset is available for productive use.
Tangible capital assets – held in trust
The City conveyed the Market Square Central Building Complex land sites to the Corporation in The City conveyed the Market Square Central Building Complex land sites to the Corporation
in The City conveyed the Market Square Central Building Complex land sites to the Corporation in
trust, subject to the conditions set out in the agreements. The land is recorded in the accounts trust, subject to the conditions set out in the agreements. The land is recorded in the
accounts trust, subject to the conditions set out in the agreements. The land is recorded in the accounts
at the gross cost of acquisition and site preparation.at the gross cost of acquisition and site preparation.at the gross cost of acquisition and site preparation.
Tangible capital assets – held in trust include all Market Square Central Building Complex held in trust include all Market Square Central Building Complex held in trust include all
Market Square Central Building Complex
construction costs incurred by theconstruction costs incurred by theconstruction costs incurred by theCorporation in the performance of its work, construction Corporation in the performance
of its work, construction Corporation in the performance of its work, construction
contributions under the construction agreements and all carrying costs such as interest, contributions under the construction agreements and all carrying costs such as interest, contributions
under the construction agreements and all carrying costs such as interest,
property taxes and operating expenses incurred by the Corporation in the completion of the property taxes and operating expenses incurred by the Corporation in the completion of the
property taxes and operating expenses incurred by the Corporation in the completion of the
various componentsvarious componentsvarious components. . .
The carrying cost of the assets held in trust have been disclosed in Note 11 of the financial The carrying cost of the assets held in trust have been disclosed in Note 11 of the financial
The carrying cost of the assets held in trust have been disclosed in Note 11 of the financial
statements.
Contributed equity
The three levels of government agreed to fund, or make certain fixed contributions to, the cost
of the Market Square Central Building Complex with the responsibilities for the amounts and
extent of funding for each party outlined in the Master Agreement and amendments thereto.
This funding is recorded in the accounts as contributed equity.
Revenue recognition
Revenues are recognized in the period in which the transactions or events occurred that gave
rise to the revenues. All revenues and interest are recorded on an accrual basis.
Transfers are recognized as revenues when the transfer is authorized, any eligibility criteria are
met,and reasonable estimates of the amounts can be made. Transfers are recognized as
deferred revenue when amounts have been received but not all eligibility criteria have been
met.
Page 8
Develop Saint JohnInc.
Notes to the financial statements
Year ended December31, 2020
2. Summary of significant accounting policies (continued)
Expenditures
Expenses are recorded on an accrual basis. The cost of all goods consumed and services
received during the year is expensed.
Income taxes
The Corporation qualifies as a municipal corporation under the Income Tax Act (Canada).
Accordingly, it is exempt from income taxes.
Measurement uncertainty
The preparation of financial statements in accordance with Canadian public sector accounting The preparation of financial statements in accordance with Canadian public sector accounting
The preparation of financial statements in accordance with Canadian public sector accounting
standards requires management to make estimates and assumptions that affect the reported standards requires management to make estimates and assumptions that affect the reported standards
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of sclosure of contingent assets and liabilities at the date of sclosure of contingent
assets and liabilities at the date of
the financial statements, and the reported amounts of revenues and expenses during the year. the financial statements, and the reported amounts of revenues and expenses during the year.
the financial statements, and the reported amounts of revenues and expenses during the year.
Key components of the financial statements requiring management to make estimates include: Key components of the financial statements requiring management to make estimates include:
Key components of the financial statements requiring management to make estimates include:
the useful life oftangiblecapital assets, impairment of tangible capital assets, rates for capital assets, impairment of tangible capital assets, rates for capital assets, impairment
of tangible capital assets, rates for
amortizationof tangible capital assetsand allowance for doubtful accounts in respect of and allowance for doubtful accounts in respect of and allowance for doubtful accounts in respect
of
receivables.
Estimates are based on the best information available at the time of preparation of the financial Estimates are based on the best information available at the time of preparation of
the financial Estimates are based on the best information available at the time of preparation of the financial
statements and are reviewed annually to reflect new information as it becomes available. statements and are reviewed annually to reflect new information as it becomes available. statements
and are reviewed annually to reflect new information as it becomes available.
Measurement uncertainty exists in these Measurement uncertainty exists in these Measurement uncertainty exists in these financial statements. Actual results could differ from financial
statements. Actual results could differ from financial statements. Actual results could differ from
those estimates.
3. Investments
Investments consist of the following:Investments consist of the following:Investments consist of the following:
2020 2019
$$
Cash — 459
Guaranteed investment certificateGuaranteed investment certificateGuaranteed investment certificate — 59,666
Mutual funds — 266,169
Preferred stock — 171,106
— 497,400
Investment income includes dividendsand interest of $4,033($4,221 in 2019).
Page 9
Develop Saint JohnInc.
Notes to the financial statements
Year ended December31, 2020
4. Accounts payable and accrued liabilities
Accounts payable and accrued liabilities consists of the following:
2020 2019
$$
Government of Canada 610,977 422,800
Accounts payable and accrued liabilities 35,583 86,815
646,560 509,615
5.Development incentives payable
Development incentives payable relates to the building and landscaping incentive programs Development incentives payable relates to the building and landscaping incentive programs Development
incentives payable relates to the building and landscaping incentive programs
used to encourage the development of property sold in the industrial parks. These amounts used to encourage the development of property sold in the industrial parks. These amounts used
to encourage the development of property sold in the industrial parks. These amounts
become payable upon the completion of property development subject to inspection by the payable upon the completion of property development subject to inspection by the payable upon
the completion of property development subject to inspection by the
Corporation.
6.Financial instruments and risk managementanagementanagement
The Corporation, through its financial assets and liabilities, has exposure to the following risks The Corporation, through its financial assets and liabilities, has exposure to the
following risks The Corporation, through its financial assets and liabilities, has exposure to the following risks
from its use of financial instruments: from its use of financial instruments: from its use of financial instruments:
Credit risk
The Corporation’scredit risk is primarily attributable to its trade receivables. The Corporation credit risk is primarily attributable to its trade receivables. The Corporation credit
risk is primarily attributable to its trade receivables. The Corporation
manages its exposure to credit risk through credit approval procedure. There is minimal o credit risk through credit approval procedure. There is minimal o credit risk through credit
approval procedure. There is minimal
allowance for doubtful accounts as there is little history of bad debts and relatively small or no allowance for doubtful accounts as there is little history of bad debts and relatively
small or no allowance for doubtful accounts as there is little history of bad debts and relatively small or no
balance in its trade receivables.balance in its trade receivables.balance in its trade receivables.
The carrying amount of financial assets on the statement The carrying amount of financial assets on the statement The carrying amount of financial assets on the statement of financial
position represents the
Corporation’s maximum credit exposure at the statement of financial position date. There is not s maximum credit exposure at the statement of financial position date. There is not s
maximum credit exposure at the statement of financial position date. There is not
a significant concentration of risk given the balance in trade receivables.a significant concentration of risk given the balance in trade receivables.a significant concentration of risk
given the balance in trade receivables.
Liquidity risk
The Corporation’sobjective is to have sufficient liquidity to meet its liabilities when due and
monitors its cash balances and cash flows generated from operations to meet its requirements.
All liabilities are current as at December 31, 2020.
Fair value
The fair value of the Corporation’sfinancial instruments included in current assets and liabilities
approximates their carrying values due to their short-term maturity.
Market risk
Market risk is risk that the fair value of future cash flows of an investment will fluctuate because
of changes in market prices. In accordance with the Corporation’s policies, market risk is
managed by investing in diversified investments and by utilizing fund performance managers.
Page 10
Develop Saint JohnInc.
Notes to the financial statements
Year ended December31, 2020
7. Lease and management agreements
The Market Square Central Building Complex is leased to Hardman Group Limited by the
Corporation under a Head Lease that expires in 2049, plus two 10-year optional extensions.
Under the Head Lease, the Corporation receives rent for the retail, commercial and office
premises on a percentage of net operating income basis while basic rent is received with respect
to the hotel premises. There is no rent received for the Saint John Free Public Library, the Saint
John Trade and Convention Centre or the Market Square Parking Facility of the Market Square
Central Building Complex.
The housing components are governed by separate agreements. The private sector housing is
built in a freehold air space parcel and there is no rent payableby the public sector.
8. Land held for resale
In 2009, Saint John Industrial Park Ltd.purchased land for a nominal fee from the Province of purchased land for a nominal fee from the Province of purchased land for a nominal fee from
the Province of
New Brunswick. The land was recorded at fair market value based on a third party appraisal. New Brunswick. The land was recorded at fair market value based on a third party appraisal.
New Brunswick. The land was recorded at fair market value based on a third party appraisal.
The land cost includes the original fair market value assessment, professional fees, property The land cost includes the original fair market value assessment, professional fees, property
The land cost includes the original fair market value assessment, professional fees, property
taxes and subsequent capital land improvements. During the year, there was quent capital land improvements. During the year, there was quent capital land improvements. During the year,
there was a $154,197 write
down of land held for resale ($496,676in 2019). 9). 9).
9. Tangible capital assets – held in trustheld in trustheld in trust
2020 2019
$$
Land 6,485,214 6,485,214
Parking garage 11,772,463 11,772,463
Trade and Convention CentreTrade and Convention CentreTrade and Convention Centre 8,757,007 8,757,007
Interior circulation spaceInterior circulation spaceInterior circulation space 8,495,370 8,495,370
Hotel 8,395,326 8,395,326
Library 6,688,798 6,688,798
Site containment 5,186,783 5,186,783
Residential park 366,028 366,028
Truck dock 201,073 201,073
Historic village 126,646 126,646
Floating wharf 49,580 49,580
56,524,288 56,524,288
The tangible capital assets are held in trust for the City and the Corporation’s freehold interest
is subject to the terms and conditions of a trust agreement. As such, the tangible capital assets
are encumbereduntil the expiry of the Market Square Head Lease (Note 7), at which time the
assetswill revert to the City.
Page 11
Develop Saint JohnInc.
Notes to the financial statements
Year ended December31, 2020
10. Tangible capital assets
Park2020
improvementsVehicleBarge facilityTotal
$$$$
Cost
Balance, beginning of year 327,430327,430 31,37231,372 7,885,375 8,244,177
Balance, end of year 327,430327,430 31,37231,372 7,885,375 8,244,177
Accumulated amortization
Balance, beginning of year 127,433127,433 31,372 394,988 553,793
Amortization during the year 13,09713,097 — 197,493 210,590
Balance, end of year 140,530140,530 31,372 592,481 764,383
Net book value, December 31, 2020 186,900186,900 — 7,292,894 7,479,794
Park2019
improvementsimprovementsimprovementsVehicleBarge facilityTotal
$$$$
Cost
Balance, beginning of year 327,430 31,372 7,885,375 8,244,177
Balance, end of year 327,430 31,372 7,885,375 8,244,177
Accumulated amortization
Balance, beginning of year 114,336 31,372 197,494 343,202
Amortization during the year 13,097 — 197,494 210,591
Balance, end of year 127,433 31,372 394,988 553,793
Net book value, December 31, 2019 199,997 — 7,490,387 7,690,384
Page 12
Develop Saint JohnInc.
Notes to the financial statements
Year ended December31, 2020
11.Related party transactions
The Corporation is related to the City by virtue of the City owning the capital of the Corporation,
five of its nine directors are appointed by the City and the Mayor and the City Manager are ex-
officio directors of the Corporation.
During 2020, the Corporation received $838,727($820,992 in 2019) from the City of Saint
John. No funding was received in operating grants and orin capital improvement grants.
The due from related party is non-interest bearing, unsecured and has no set terms of
repayment.
12.Funds and reserves
On December 14, 2018, the Board passed a resolution to authorize the establishment of a On December 14, 2018, the Board passed a resolution to authorize the establishment of a On December
14, 2018, the Board passed a resolution to authorize the establishment of a
Strategic Growth Reserve Fund (the “Fund”) and approved the transfer of $1,000,000, plus Strategic Growth Reserve Fund (the “Fund”) and approved the transfer of $1,000,000, plus Strategic
Growth Reserve Fund (the “Fund”) and approved the transfer of $1,000,000, plus 90%
of the 2018 operating surplus to the Fund.
In December 2019, $1,000,000 was transferred from unrestricted cash to restricted cash.In December 2019, $1,000,000 was transferred from unrestricted cash to restricted cash.In December
2019, $1,000,000 was transferred from unrestricted cash to restricted cash.
Page 13
Deloitte LLP
P.O. Box 20094
Brunswick Square
Saint John NB E2L 5B2
Canada
Tel: 506-632-1080
Fax: 506-632-1210
www.deloitte.ca
Independent Auditor’s Report
To His Worship the Mayor and Members of Common Council of
The City of Saint John
Report on the Auditof theFinancial Statements
Opinion
We have audited the financial statements of The City of Saint JohnTrust Funds(“City”), which
comprise the statement of financial positionas at December 31, 2020the statements of changes in
net assets and cash flows for the year then ended, and notesto the financial statements, including a
summary of significant accounting policies (collectively referred to as the “financial statements”).
In our opinion, the accompanying financial statements present fairly, in all material respects, the
financial position of the Cityas at December 31, 2020, and the results of its operations,its
accumulated surplus, changes initsnet debt,and its cash flows for the year then ended in accordance
with Canadian public sector accounting standards (“PSAS”).
Basis for Opinion
We conducted our audit in accordance with Canadian generallyaccepted auditing standards
(“Canadian GAAS”). Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report. We are independent of
the Cityin accordance with the ethical requirements that are relevant to our audit of the financial
statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these
requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Responsibilities of Management and Those Charged with Governance for the Financial
Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with PSAS, and for such internal control as management determines is necessary to
enable the preparation of financial statements that are free from material misstatement, whether due
to fraud or error.
In preparing the financial statements, management is responsible for assessing the Organization’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless management either intends to liquidate the
Organization or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Organization’s financial reporting
process.
Auditor’s Responsibilities for the Audit ofthe Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with Canadian GAAS will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these financial statements.
2
As part of an audit in accordance with Canadian GAAS, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Organization’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Organization’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
our auditor’s report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause the Organization
to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
Chartered Professional Accountants
Saint John, NB
\[DATE\]
3
Statement of revenue and
expenses of
T
The City of Saint John
Trade and Convention Centre
F
December 31, 2020
A
R
D
Independent Auditor’s Report 1–2
Statement of revenue and expenses3
Notes to the financial statement4–5
T
F
A
R
D
Deloitte LLP
816 Main Street
Moncton NB E1C 1E6
Canada
Tel: 506-389-8073
Fax: 506-632-1210
www.deloitte.ca
Independent Auditor’s Report
To the Mayor and Common Counselof
The City of Saint John
Opinion
We have audited the accompanying statement of revenue and expenses of The City of Saint John
Trade and Convention Centre (the “Centre”), for the year ended December 31,2020, and other
explanatory information (the “financial statement”). This financial statement was prepared by
management in accordance with the provisions of the management agreement between The City of
Saint John (the “City”) and Hilton Canada Co. dated June 1, 1984 with an amendment dated
September 4, 2014.
In our opinion, the accompanying financial statement of the Centre for the year ended December 31,
2020are prepared, in allmaterial respects, in accordancewiththe provisionsof the management
agreement between the City and Hilton Canada Co. dated June 1, 1984 with anamendment dated
September 4, 2014.
Basis for Opinion
We conductedour audit inaccordance with Canadian generally accepted auditing standards
(“Canadian GAAS”). Our responsibilities underthose standards are further described in the
Auditor’sResponsibilities for the Audit of the Financial Statements section of our report. We are
independent of the Centre in accordance withthe ethical requirements that are relevant to our audit of
the financial statements in Canada, and we have fulfilledourother ethical responsibilities in
accordance with these requirements. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Emphasis of Matter – Basis of Accounting
We draw attention to Note 1 to the financial statements, which describes the basis of accounting.
Thefinancial statements are prepared to assist the Centrein complying with the provisions of the
management agreement between The City of Saint John (the “City”) and Hilton Canada Co. dated
June 1, 1984 with an amendment dated September 4, 2014.
As a result, the financial statements may not be suitable for another purpose. Our opinion is not
modified in respect of this matter.
Responsibilities of Management and Those Charged with Governancefor the
Financial Statements
Management is responsible for the preparation of the financial statement in accordance with the
provisions of the management agreement between the City and Hilton Canada Co. dated June 1, 1984
with an amendment dated September 4, 2014, and for such internal control as management
determines is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, managementis responsible for assessing the Centre’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless management either intends to liquidate the Centreor to
cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Centre’s financial reporting
process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with Canadian GAAS will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these financial statements.
As part of an audit in accordance with Canadian GAAS, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Centre’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting
T
and, basedonthe audit evidence obtained, whethera material uncertainty exists related to events
or conditions that may cast significant doubt on theCentre’s ability to continue as a going
concern. Ifwe conclude that a material uncertainty exists, we are required to draw attention in
F
our auditor’s report to therelated disclosures in the financial statements or, if such disclosures are
inadequate, to modify ouropinion. Our conclusions are based on theaudit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause theCentreto
cease to continue as a going concern.
A
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
R
D
Chartered Professional Accountants
DATE
The City of Saint John
Trade and Convention Centre
Statement of revenue and expenses
Year ended December 31, 2020
20202020 2019
BudgetActual Actual
Note
$$$
(Unaudited)
1
Revenue
Room rental 182,000 78,518 186,318
Commissions on food and beverage
sales and sundry revenue 285,360 69,233 271,678
467,360 147,751 457,996
Direct expenses
Wages and benefits 226,404 77,956 208,523
Laundry 19,100 4,341 23,680
Supplies 25,200 1,078 22,778
Operating equipment and uniforms — — 1,262
270,704 83,375 256,243
196,656 64,376 201,753
T
Overhead expenses
Salaries and benefits 522,343 123,947 522,360
Outside services 43,260 29,301 39,508
Advertising and promotion 19,209 13,082 16,055
F
Garbage removal 10,350 10,125 10,350
Legal and audit 9,000 8,250 8,502
Cleaning and maintenance 20,925 4,476 15,968
Telecommunication 10,800 4,156 10,700
A
Postage, printing and stationery 2,700 2,347 2,328
Equipment rental 1,800 1,872 3,448
Gas 5,400 1,694 4,942
Licenses 1,443 1,540 1,443
R
Miscellaneous expense 100 1,149 39,224
Water heating charges 1,600 715 5,571
Travel and training 4,350 427 5,366
Entertainment 1,050 43 510
D
Dues and subscriptions 20 — —
654,350 203,124 686,275
Operating deficit for the year (457,694) (138,748) (484,522)
Expenses not paid directly
by the Centre
Management fee 196,000 196,643 193,008
HVAC utility/maintenance 134,714 195,402 133,666
Real estate tax 83,646 85,138 84,139
Electricity 32,604 32,604 31,833
446,964 509,787 442,646
Total expenses 1,372,018 796,286 1,385,164
Total deficit for the year (904,658) (648,535) (927,168)
The accompanying notes are an integral part of the financial statements.
Page 3
The City of Saint John
Trade and Convention Centre
Notes to the financial statement
December 31, 2020
1. Revenue
Under the terms of the management agreement dated June 1, 1984, with amendment dated
September 4, 2014, Hilton Canada Co. pays to the Saint John Trade and Convention Centre
(“Centre”) a percentage of gross revenue forfood and beverage with cost of sales, including
product and labour costs, being the responsibility of Hilton Canada Co.
The Centre is responsible for all other operating costs.
2. Government assistance
In response to the COVID-19 pandemic, the federal and provincial governments have been
implementing programs to help companies that are experiencing financial difficulty. During the
year the Company recognized $70,726 (nil in 2019) in wage subsidy, which was netted against
salaries and benefits.
3. Management agreement – Saint John Trade and Convention Centre
This financial statement has been prepared in accordance with the provisions of the
T
management agreement between the City of Saint John (the “City”) and Hilton Canada Co.
The Centre is owned by the City and managed by Hilton Canada Co. under an amended
management agreement dated September 4, 2014. The original agreement dated June 1, 1984
F
had a 20 year term with options to renew for three consecutive 10 year periods. One 10 year
renewal period remains. According to the terms of this agreement, the City is responsible for
the operating loss of the Centre. In addition to the operating loss under this agreement, the City
incurs common area costs and management fees which are reflected in the general operating
A
fund of the City’s consolidated financial statements.
With the establishment of the Greater Saint John Regional Facilities Commission in 1998,
operating deficits, management fees and property taxes included in common area costs are
shared with the municipalities making up the Greater Saint John Regional Facilities Commission.
R
These costs are allocated in proportion to the tax bases of the municipalities.
4. Recording of assets and liabilities
D
The City’s investment in the structure and related equipment, furnishings and fixtures is
reported on the Capital and Loan Fund balance sheet of the City.
5. Greater Saint John Regional Facilities Commission Act
Under the regional Greater Saint John Regional Facilities Commission Act, pursuant to 87(2)(a)
of the Municipalities Act, councils of the participating communities of Grand Bay Westfield,
Quispamsis, Rothesay and Saint John are required to pay contributions towards the operation of
regional facilities, which include the Centre. The amount of contribution is calculated on the net
operating cost for each facility covered under the Municipalities Act, in proportion to the tax
base of the contributing municipality.
Page 4
The City of Saint John
Trade and Convention Centre
Notes to the financial statement
December 31, 2020
6.Budget figures
The 2020 budget figures that are presented on the Statement of revenue and expenses for
comparison with the actual figures were provided by the Centre’s management and have not
been audited.
7.Pandemic risk
On March 11, 2020, the World Health Organization characterized the outbreak of a strain of the
novel coronavirus (“COVID-19”) as a pandemic, which has resulted in a series of public health
and emergency measures that have been put in place to combat the spread of the virus,
including the announcement of a statement of emergency in the Province of New Brunswick on
March 19, 2020. The duration and impact of COVID-19 is unknown at this time and it is not
possible to reliably estimate the impact that the length and severity of these developments will
have on the financial results and position of the Centre in future fiscal years.
T
F
A
R
D
Page 5
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5ĻĭĻƒĬĻƩЌЊͲЋЉЋЉ
Revenues2020Actual$2020Budget$2019Actual$
/ŷğƩŭĻƭƷƚĭǒƭƷƚƒĻƩƭЍЍͲБАВͲЍЊЉЍЍͲАЏЏͲЉЉЉЍЎͲЍЎЉͲЎБЍ
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TotalRevenues 48,715,75848,702,00050,093,016
Expenditures
Watersupply АͲАВБͲЌАЏБͲЍЉЍͲЉЉЉЊЊͲАЏЏͲЊАЎ
tǒƩźŅźĭğƷźƚƓğƓķƷƩĻğƷƒĻƓƷЎͲЉАЎͲВЏЎЎͲЏБЋͲЉЉЉЏͲЊВЌͲАЊЋ
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tǒƒƦźƓŭЊЍБͲЋЋЋЊЊЎͲЌЍАЊЉЏͲЊЌЊ
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Seweragecollectionanddisposal ЋͲАЉЋͲАВЊЌͲЋЉВͲЉЉЉЋͲАВЎͲВВЌ
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{ĻǞĻƩğŭĻƷƩĻğƷƒĻƓƷğƓķķźƭƦƚƭğƌВЊЎͲББЊВЊЉͲЉЉЉВЏЎͲБЋЌ
Billing&collections БЎЉͲЍЏЍБЋЋͲЉЉЉБЍЎͲАЋБ
28,915,72831,015,00134,169,820
FiscalCharges
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tƩźƓĭźƦğƌźƓƭƷğƌƌƒĻƓƷƭƚƓķĻĬĻƓƷǒƩĻķĻĬƷЏͲЌЏБͲЉЉЉЏͲЌЏБͲЉЉЉЏͲЌЏБͲЉЉЉ
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18,830,99417,686,99915,726,465
TotalExpenditures 47,746,72248,702,00049,896,285
Surplusfortheyear 969,036196,731
FINANCECOMMITTEEREPORT
Report DateJuly 08, 2021
Meeting DateJuly 22, 2021
Service AreaStrategic Services
Chairman SullivanandMembers of Finance Committee
SUBJECT: Internal Audit
OPEN OR CLOSED SESSION
This matter is to be discussed in Finance Committee Open Session.
AUTHORIZATION
Primary AuthorCommissioner/Dept. HeadCity Manager
Jodie ForgieKevin FudgeJohn Collin
RECOMMENDATION
Finance Committee recommendsthe approval of the Internal Audit Charter to
Common CouncilandFinance Committee recommends the approval ofthe
addition of the Internal Audit Charter to the Procedural By-Law.
EXECUTIVE SUMMARY
The purpose of this report is to introduce the internal audit services and to provide
the Internal Audit Charterwhich willoutline the purpose, authority and
responsibility of theservices.
PREVIOUS RESOLUTION
N/A
STRATEGIC ALIGNMENT
The recommendations are in alignment with following a strong governance
process, providing accountability, Financial Stewardsand operational
improvements.
REPORT
Internal audit is guided by the philosophy of adding value to improve the
operations of the City. Implementingthe internal auditserviceswill support the
strategic goals of the City, the ongoing projects and plans that the City is executing
on and providing good governance and monitoring of internal controls. Internal
- 2 -
auditing will commence within the City in August and be performed on a
continuous basis which will be driven by a risk based audit plan, budget and
resource availability.
In order to ensure integrity and project discipline, the Internal Audit Charter will
help identify the function of the service with particular emphasis on the scope of
work, roles, responsibilities and authorities. All of this has been based on the
International Professional Practices Framework provided by the Institute of
Internal Auditors and is the highest and most recognized standard for internal
auditors. The internal audit services will govern itself by adherence to the
mandatory elementsof this framework.
The internal audit services will report administratively to the Chief Financial
Officer and functionally through the Finance Committee to Common Council.
Depending on the particular project being performed will impact who the
stakeholders will be with the opportunity to provide benefit to diverse needs
within the City.
The internal audit services will have two primary roles, acting as an auditor
reporting to the Finance Committee on the audit plan and acting as a trusted
advisor reporting and working with executive management. The audits performed
can fall into three categories: performance audits, financial audits and
compliance/regulatory audits. The assessment performed by internal audit will
dictate the category of the audit being performed. The consulting and advisory
services will be identified and brought forward by executive management and the
level of service provided will be identified by coordination with management.
Internal audit will provide updates to the Finance Committee on a regular basis on
status of work, at minimum the internal audit plan, the summary of audit results
and follow up on recommendations will be presented.
SERVICE AND FINANCIAL OUTCOMES
Both Service and Financial outcomes are expected from the implementation of
internal audit services at the City, the amount of the benefit will be determined at
the individual audit level.
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
N/A
ATTACHMENTS
Internal Audit Charter
Presentation- Introduction to Internal Audit
Schedule C of the Procedural ByLaw
Internal Audit
Presentation to Finance Committee
July 22, 2021
Agenda
What is Internal Audit
Governance
Internal Audit Charter
Risk Based Approach
Internal Audit Plan
Next Steps
Questions
2
Definition of Internal Audit
objective assuranceand consulting activity
designed to add value and improvean
organization's operations. It helps an
organizationaccomplish its objectives by
bringing a systematic,disciplined approach
to evaluate and improve theeffectiveness of
risk management, control, and
governance
(The Institute of Internal Audit)
3
International Professional Practice Framework (IPPF)
Internal auditwill govern itself
byadherence to the mandatory
elements of TheInstitute of Internal
Auditors' InternationalProfessional
Practices Framework, including
theCore Principles for the
Professional Practice ofInternal
Auditing, the Code of Ethics,
theInternational Standards for the
ProfessionalPractice of Internal
Auditing, and the Definition
ofInternal Auditing.
4
Meeting Diverse Stakeholder Needs
Secondary
KeyStakeholders Tertiary Stakeholders
Stakeholders
Finance Other members of Employees and
Committee/Common managementretirees
Council
External auditors Potentially, the
CityManager and regulatorsgeneral public
CFO Citizens and
taxpayers
Othercommissioners
ormembersof
executiveteam
5
Scope of Internal Audit Services
Consulting and Advisory
Audit Services
services
Risk based audits within the Nature and scope agreed upon with
Common Council approved Audit the area of review and workplan
Planapproved by the City Manager
Detail report to senior management Detail report to management of the
and summary report to Finance area and summary report to senior
Committeemanagement of the area
Full responsibility of follow up and
Management action plans with
management action performed by
follow up from internal audit
area of review
6
Types of Audits
Effectiveness ensure that objectives are
Performance Audits (also known as Value for met and resultsachieved
Money/Operational): Evaluates operational
Efficiency-make the best use of available
resources
processes to provide assurance that
Economy-requires minimal amount of
objectives are met and whether
resources to achievethe bestvalue for
improvements can be made based on:
money
Financial Audits:Assesses accuracy,completeness,andtimeliness of financial
reporting
Compliance/Regulatory Audits: Ensures adherencetoestablished regulatory
requirements and policies
7
Internal Audits Impact
Performance Audits (also known as Value for Money/Operational):
This can be a large array of audits such as a review of key actions
taken in order to meet strategic objectives and identify areas of
opportunity or concern
Financial Audits:Assessment of internal controls over financial
reporting
Compliance/Regulatory Audits:In the City we have instituted many
policies in recent years, a review to ensure that the policies have
been implemented in practice will help to identify where gaps still
exist
8
Internal Audit Governance Model
Administratively to the Chief Financial Officer
Functionally through the Finance Committee to CommonCouncil
The Chair of the Finance Committee will provide introductions and high level
information to Common Council
Internal audit will have unrestricted access to, andcommunicate
and interact directly with, the Finance Committee and Senior
Management
Internal Audit will have in private meetings with Finance
Committeewithout management presenton a case by case basis
and will occur if the subject matter indicates a potential fraud or
misconduct that involves management or by request from Finance
Committee under the same limits
9
Internal Audit Charter
The Finance Committee Role:
Recommend to Common Council to approve the internal audit charter
Recommend to Common Council to approve the risk-based internal
audit plan,including as required any special tasks or projects requested
by executive management
Receive communications from thesenior manageron
internalaudit'sperformance relative to its plan and other matters
Receive information and decisions regarding the appointment and
removal ofthesenior manager
Make appropriate inquiries of management and theseniormanager
ofinternal auditto determine whether there is inappropriate scope
orresource limitations
The Internal Audit Charterhelps guide us to ensurewe adhere
toallInternational Professional PracticesFramework(IPPF)mandatory
guidance.
Very important to stay in line with the Scope of Internal AuditActivities
10
Internal Audit Structure Examples
Federal Government-The Internal Audit Sector of theOffice of the
Comptroller General of Canada and theAuditor General of Canada
(Auditor General Act and theFinancial Administration Act)
Provincial Government-Auditor General of New Brunswick(Auditor
General Act and the Financial Administration Act)
Municipal Government-A specific internal audit model isnot prescribed
in the legislation
Publicly Traded Companies-SOX Compliance (52-109Certification)
11
Risk Based Approach
"risks represent the barriers to
Risk is the possibility of an
successfully achieving objectives
eventoccurring that could impact
as well as the opportunities that
theachievement of the City's objectives
may help achieve those
objectives"
Risk-based planning enables the
"risks may relate to
internalaudit activity to properly align
preventing bad things from
and focusits limited resources to
happening (risk mitigation)
produce insightful,proactive, and
future-focus assurance and advice
or failing to ensure good
things happen (that is,
exploiting or pursuing
opportunities")
The risk assessment process is
Urton L Anderson et al.Internal Auditing:
Assurance and AdvisoryServices
performedby the internal audit team
12
Risk Categories
Strategic: Risks that may prevent the achievement of business outcomesand
objectives. Exposure to loss resulting from a lack of response to thechanging business
environment, adverse business decisions, and/orimproper implementation of
decisions.
Operational: Risk of loss from people, systems, internal procedures orevents which
have the potential for the organization to deviate from itsobjectives and outcomes.
Day-to-day risks typically managed by mid-levelmanagement and staff.
Reputational: Risk associated with negative publicity, perceived or real,regarding
Regional business practices, actions or inactions which couldcause a decline in the
public's trust and confidence.
Compliance:The risks associated with non-compliance with laws,legislation,
regulation or policy. Non-compliance may be due to thecomplexity of the legislation
and various requirements across multipledepartments.
Financial: Risk that the organization may not have adequate cash flow tosustain
financial obligations.
13
The Internal Audit Plan
For the remainder of the current year we will focus on 2 audits
The audit plan will be presented to Finance Committeein August
for recommendation of approval to Common Council
Focus is on highest risk and greatest opportunity toprovide value
with consideration of our limited resourcesavailable
14
Next Steps
Finance Committee recommend to Common Council to approve
the Internal Audit Charter
Finance Committee recommend to Common Council the addition
of the Internal Audit Charter to the Procedural By-Law
15
Questions?
16
City of Saint John
Internal Audit Charter
July 22, 2021
1. Purpose and Mission
service is to provide independent, objective assurance and
consulting services designed to add value and improve the City of Saint John
audit is to enhance and protect organizational value by providing risk-based and objective assurance, advice, and
insight. The internal audit servicehelps the City of Saint John accomplish its objectives by bringing a systematic,
disciplined approach to evaluate and improve the effectiveness of governance, risk management, and control
processes.
2. Standards for the Professional Practice of Internal Auditing
The internal audit service will govern itself by adherence to the mandatory elements of The Institute of Internal
Auditors' International Professional Practices Framework, including the Core Principles for the Professional Practice
of Internal Auditing, the Code of Ethics, the International Standards for the Professional Practice of Internal
Auditing, and the Definition of Internal Auditing. The senior manager of internal audit will report periodically to
senior management and the finance committee regarding internal audit department
Ethics and the Standards.
3. Authority
The senior manager of internal audit will report functionally to Council through the Finance Committee and
administratively (i.e., day-to-day operations) to the Chief Financial Officer. To establish, maintain, and assure that
the City of Saint Johnservice has sufficient authority to fulfill its duties, the Finance Committee will:
a) Recommend to Common Council to a
b) Recommend to Common Council to approve the risk-based internal audit plan, including as appropriate
any special tasks or projects requested by Management and Council with the understanding that a portion
ulting services to management at their request.
c) Receive communications from the senior manager
other matters.
d) Receive information and decisions regarding the appointment and removal of the senior manager.
e) Make appropriate inquiries of management and the senior manager of internal audit to determine
whether there is inappropriate scope or resource limitations.
Internal audit will have unrestricted access to, and communicate and interact directly with, the Finance
Committee, including in private meetings without management present. The determination of a necessity for in
private meetings will be limited to fraud investigations or other matters of misconduct that could potentially
include management or by request from the Finance Committee under the same limits. It should be noted that it is
not the responsibility of internal audit to prevent or detect fraud. The internal audito responsibility is to consider
fraud when conducting their audit work in areas susceptible to fraud or misconduct. If notification is made to the
internal audit team of a potential fraud or misconduct the following steps by internal audit must be made:
- A determination by internal audit in relation to how reliable the source is and if internal audit observed or
detected the misconduct directly.
1
- A consideration by internal audit about what additional audit procedures or validation should be
conducted by internal audit.
- Internal audit to identify their role in the investigation and if an investigation is warranted.
- If the information provided to internal audit implies that the behaviour by management could contravene
onduct and could have the potential to be significant then the decision to bypass
management to the finance committee should be made by internal audit senior manager.
The Finance Committee authorizes internal audit to:
f) Have full, free, and unrestricted access to all functions, records, property, and personnel pertinent to
carrying out any engagement, subject to accountability for confidentiality and safeguarding of records and
information.
g) Allocate resources, set frequencies, select subjects, determine scopes of work, apply techniques required
to accomplish audit objectives, and issue reports.
h) Obtain assistance from the necessary personnel of the City of Saint John as well as other specialized
services from within or outside the City of Saint John, to complete the engagement.
i) Perform special engagements with management where internal audit has the appropriate skill set.
4. Independence and Objectivity
The senior manager will ensure that the internal audit service remains free from all conditions that threaten the
ability of internal auditors to carry out their responsibilities in an unbiased manner, including matters of audit
selection, scope, procedures, frequency, timing, and report content. If the senior manager determines that
independence or objectivity may be impaired in fact or appearance, the details of impairment will be disclosed to
appropriate parties. Internal auditors will maintain an unbiased mental attitude that allows them to perform
engagements objectively and in such a manner that they believe in their work product, that no quality
compromises are made, and that they do not subordinate their judgment on audit matters to others.
Internal auditors will have no direct operational responsibility or authority over any of the activities audited.
Where the senior manager of internal audit has or is expected to have roles and/or responsibilities that fall outside
of internal auditing, safeguards will be established to limit impairments to independence or objectivity. Internal
auditors will:
a) Disclose any impairment of independence or objectivity, in fact or appearance, to appropriate parties.
b) Exhibit professional objectivity in gathering, evaluating, and communicating information about the
activity or process being examined.
c) Make balanced assessments of all available and relevant facts and circumstances.
d) Take necessary precautions to avoid being unduly influenced by their own interests or by others in
forming judgments.
e) If necessary have the audit work performed by individuals who are independent.
Internal audit will confirm to the Finance Committee, at least annually, the organizational independence of the
internal audit department. Internal auditwill disclose to the finance committee any interference and related
implications in determining the scope of internal auditing, performing work, and/or communicating results.
In case of a City emergency, to the extent that redeployment of staff may be necessary to support critical
functions, internal audit staff may be required to perform otherwise non-authorized duties.
2
5. Scope of Internal Audit Activities
The scope of internal audit activities encompasses, but is not limited to, objective examinations of evidence for the
purpose of providing independent assessments to Finance Committee, management, and outside parties on the
adequacy and effectiveness of governance, risk management, and control processes for the City of Saint John. All
activities of the City of Saint John and their Boards, Authorities and Agencies may be subject to audit where
legislatively permissible. If a decision is made to review activities of Boards, Authorities and Agencies that are not
legislatively permissible a letter of confirmation must be obtained by the appropriate representative of the auditee
party agreeing to the audit, specifically the scope, timing, and reporting process.
Internal audit can perform a wide range of audit services for the City. In order to understand the various scopes of
work internal audit will categorize the work in two broad categories as follows:
Audit services- Audit services will provide an independent evaluation of key processes and controls of the City.
Audit services will be comprised of risk based audits that have been included in the approved audit plan. These
services will be reported in detail to senior management and a summary report will be provided to the Finance
Committee. For the audits performed within this category management action plans will be created and reporting
of status will be provided to senior management and the Finance Committee.
Consulting and Advisory services- Special requests from management can be accommodated covering various
areas affecting operations. The nature and scope of each request will be agreed upon with the area of review and
the reporting will be provided to the management of the area. Reporting on status of projects will be provided to
senior management. Consideration to support these services will be secondary to the audit services and made
based on a City Manager approved work plan that considers the technical expertise requirements, resource and
budget availability and collaboration with continuous improvement. If issues are identified that are determined to
be beyond the scope of authority of the City Manager this information is to be provided to the Finance Committee.
Opportunities for improving the efficiency of governance, risk management, and control processes may be
identified during engagements. These opportunities will be communicated to the appropriate level of
management.
Internal audit assessments include evaluating whether:
a)
identified and managed.
b)
with the City of Saint J
standards.
c) The results of operations or programs are consistent with established goals and objectives.
d) Operations or programs are being carried out effectively and efficiently.
e) Established processes and systems enable compliance with the policies, procedures, laws, and regulations
that could significantly impact the City of Saint John.
f) Information and the means used to identify, measure, analyze, classify, and report such information are
reliable and have integrity.
g) Resources and assets are acquired economically, used efficiently, and protected adequately.
The senior manager of internal audit will report periodically to senior management and the Finance Committee
regarding:
a) Internal audit purpose, authority, and responsibility.
b) Internal audit plan and performance relative to its plan.
c) Internal audit
significant conformance issues.
3
d) Significant risk exposures and control issues, including fraud risks, governance issues, and other matters
requiring the attention of, or requested by, the finance committee.
e) High level summary of results of audit engagements or other activities.
f) Resource requirements.
g) Any response to risk by management that may be unacceptable to the City of Saint John.
The senior manager of internal audit also coordinates activities, where possible, and considers relying upon the
work of other internal and external assurance and consulting service providers as needed.
6. Responsibility
The senior manager of internal audit has the responsibility to:
a) Submit, at least annually, to senior management and the Finance Committee a risk-based internal audit
plan for review and recommendation for approval to Common Council.
b) Communicate to senior management and the Finance Committee the impact of resource limitations on
the internal audit plan.
c) Review and adjust the internal audit plan, as necessary, in response to changes in the City of Saint John
business, risks, operations, programs, systems, and controls.
d) Communicate to senior management and the Finance Committee any significant interim changes to the
internal audit plan.
e) Ensure each engagement of the internal audit plan is executed, including the establishment of objectives
and scope, the assignment of appropriate and adequately supervised resources, the documentation of
work programs and testing results, the understanding of the capabilities of the City to action on
observations and the communication of engagement results with applicable conclusions and
recommendations to appropriate parties.
f) Follow up on engagement findings and corrective actions, and report periodically to senior management
and the Finance Committee any corrective actions not effectively implemented.
g) Ensure the principles of integrity, objectivity, confidentiality, and competency are applied and upheld.
h) Ensure internal audit collectively possesses or obtains the knowledge, skills, and other competencies
needed to meet the requirements of the internal audit charter.
i) Ensure trends and emerging issues that could impact the City of Saint John are considered and
communicated to senior management and the Finance Committee as appropriate.
j) Ensure emerging trends and successful practices in internal auditing are considered.
k) Establish and ensure adherence to policies and procedures designed to guide the internal audit activities.
l) Ensure adherence to the City of Saint John
procedures conflict with the internal audit charter. Any such conflicts will be resolved or otherwise
communicated to senior management and the Finance Committee.
m) Ensure conformance of the internal audit activities with the Standards, with the following qualifications:
o If the internal audit activities is prohibited by law or regulation from conformance with certain
parts of the Standards, the senior manager of internal audit will ensure appropriate disclosures
and will ensure conformance with all other parts of the Standards.
o If the Standards are used in conjunction with requirements issued by other authoritative bodies,
the senior manager of internal auditwill ensure that the internal audit department conforms
with the Standards, even if the internal audit department also conforms with the more restrictive
requirements of other authoritative bodies.
7. Quality Assurance and Improvement Program
Internal audit will maintain a quality assurance and improvement program that covers all aspects of the activities
performedndards and an
4
and effectiveness of internal audit and identify opportunities for improvement. Internal audit will communicate to
senior management and the finance committee on the internal auditquality assurance and improvement
program, including results of internal assessments (both ongoing and periodic) and external assessments
conducted at least once every five years by a qualified, independent assessor or assessment team from outside the
City of Saint John.
5
FINANCECOMMITTEEREPORT
Report DateJuly 02, 2021
Meeting DateJuly 22, 2021
Service AreaFinance and Administrative Services
Chairman CouncillorSullivan andMembers of Finance Committee
SUBJECT: ABC Reporting PolicyFAS-022
OPEN OR CLOSED SESSION
This matter is to be discussed in Finance Committee Open Session.
AUTHORIZATION
Primary AuthorCommissioner/Dept. HeadCity Manager
Tiffany FawcettKevin FudgeJohn Collin
RECOMMENDATION
Finance Committee recommends that Common Council approve the City of Saint
JohnABC Reporting Policy.
EXECUTIVE SUMMARY
Long Term Financial Plan and Council Priorities as defined in 2016 as Growth &
Prosperity, Vibrant, Safe City, Values Service Delivery, and being Fiscally
Responsible. This policy will address an opportunity of communication and to
build upon the mutual understanding between ABCs and the city to promote
transparency.
PREVIOUS RESOLUTION
M&C 2016-252016 Reporting Programs for ABCs.
REPORT
City Staff presented an ABC reporting framework to Common Council in December
2015 which was a response from Council resolutions requesting greater
interaction between ABCs and Common Council. At such time, City Manager
Office connected with all ABCs to highlight the importance of the 2016 reporting
programand received valuable feedback. The program was rolled out requesting
two written reports yearly and to appear in front of Council at least once per year.
- 2 -
The ABC Reporting Policy adds to the framework put in place in 2016 by providing
standardization through the reporting template, an operating procedure to
operational, and growth with the ABCs along with criteria and definitions to follow
to determine if funding received is a grant or an ABC.
The City of Saint John
used as a subsidy to seven ABCs that fall under the ABC Reporting Policy, which
The policy, standard operating procedure, and reporting template was designed
with Deloitte and follows best in class practices.
STRATEGIC ALIGNMENT
The ABC Reporting Policy is aligned with Council Priorities and will contribute to
the successful implementation of the Long-Term Financial Plan.
SERVICE AND FINANCIAL OUTCOMES
Improved insight into ABCs growth, financial and operational metrics to determine
taxpayer value for money, alignment with internal Budget Monitoring Policy, and
close communication gaps with valuable transparency. Service implications
related to economic, social or environmental impacts in the community.
n
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
Feedback on the proposed Policy has been well received by staff within Public
Safety, Finance, and Leisure Services. ABCs have already been following the 2016
reporting program.
ATTACHMENTS
Power Point Presentation
City of Saint John ABC Reporting Policy
Standard Operating Procedure
Standard Reporting Template
ABC Reporting Policy FAS-022
(Agencies, Boards, and Commissions)
Presentation to Finance Committee -July 22, 2021
LTFP Financial Policies to Date
Policy #Policy TitleStatus
FAS-001Asset Management PolicyApproved
FAS-002Investment Management PolicyApproved
FAS-003Operating & Capital Reserves PolicyApproved
FAS-004Operating Budget PolicyApproved
FAS-005Capital Budget PolicyApproved
FAS-006Debt Management PolicyApproved
FAS-007Wage Escalation PolicyApproved
FAS-020Long-Term Financial Plan PolicyApproved
FAS-021Budget Monitoring PolicyApproved
FAS-022ABC Reporting PolicyPending
2
Agenda
Background and Purpose
ABC Reporting Policy
Standard Operating Procedure
Standard Template
ABC / Grant Matrix
Stakeholder Engagement
Recommendation
ABC Engagement and Roll Out
Implementation Dates
Questions
3
Background and Purpose
th
Concept of ABC reporting adopted by Council on January 5,
2015, followed by a reporting framework presented in early 2016
and implemented by Common Clerk.
2016 set the foundation for current year roll out of standard
policy, procedure, and template.
Funding to 6 ABCs covered by this policy, amounts to 23.1%
($36.3M) of the general fund expenditures of $157.3M for 2021.
Purpose is to provide consistent and standard reporting to diverse
entities and highlight the following:
An opportunity of communication
Build upon mutual understanding between ABCs and the City
Promote transparency
Demonstrate taxpayer value for money
Highlight performance of public benefit
4
ABC Reporting Policy
Focus on Key Performance Indicators under Growth, Finance and
Operations.
Standardized format to fit all ABCs, no matter how diverse.
Two stage review complete by Chief of Staff and Committees to increase
quality control.
Only ABCs receiving funding are required to adopt the policy.
Chief of Staff:
Review ABC
Respective City
submission for Common Council:
Committee:
completeness and Receive and file on
ABC:
Review for
compliance. If consent agenda.
Complete Standard alignment with
satisfactory, passed Approve any future
Reporting
onto Committees. amendments to
Requirements.Policies and Long-
If unsatisfactory, ABC Reporting
Term Financial
returned to ABC for Policy.
Plan.
rework and
resubmission.
5
Standard Operating Procedure
Guidelines derived to support the Policy.
Standardization Achieved through Definition
Funding Level based approach.
Bi-Annually Required:
Standard Reporting Template
Funding Level
Annually Required:
Audited Financial Statements
$1 -$250K
Bi-Annually Required:
Standard Reporting Template
Funding Level
Annually Required:
Audited Financial Statements
Over $250K
Annual Report
Presentation to Respective Committee
6
Standard Template
Standardized and consistent template used amongst very
diverse business lines.
Strong focus on growth, financial, and operational key
performance indicators.
Embedded in the template are city approved policies such
as The Budget Monitoring Policy (FAS-021).
7
ABC / Grant Matrix of Funding
Used to determine which entity would fall under this policy.
ABC is defined for this policy as:
Separate legal entities
Carry out a range of functions and services to the community
Controlled by the City of Saint John
Control is the power to govern the financial and operating policies of another
activities.
Six ABCs currently falling under the policy:
TD StationPolice Commission
Transit CommissionSaint John Trade and Convention Center
Saint John Aquatic CenterLord Beaverbrook Rink
8
Stakeholder Engagement
April 2021, Deloitte was engaged to ensure alignment with
July, 2021 a stakeholder engagement session was held to
provide information on the policy, feedback was positive
and informative.
Feedback provided a future need to roll this policy into the
Regional Facilities Commission and the Year End
Consolidation process. This will align reporting dates,
provide a standardized structure, and requirements.
9
Recommendations
Staff recommends Finance Committee approve the ABC Reporting
Policy.
Staff orientate ABCs on new reporting structure and requirements.
th
Expected Roll Out Fiscal Reporting Period ending June 30and
follow timelines in Standard Operating Procedures to be to
Committees by August.
10
Questions
11
Title: ABC Reporting Policy
Subject: City of Saint John ABC Reporting Policy Category: Finance and Administrative Services
(Agencies, Boards, and Commissions)
Policy No.: FAS -022 M&C Report No.:
Effective Date: 01 August 2021 Next Review Date: 01 January 2026
Area(s) this policy applies to: Cross Corporate Office Responsible for review of this Policy:
Finance and Administrative Services
Related Instruments: Policy Sponsors:
M&C No 2016-25 Chief of Staff
FAS-021 Budget Monitoring Policy
Document Pages:
This document consists of 3 pages.
Revision History:
Common Clerk's Annotation for Official Record
Date of Passage of Current Framework:_________________________
I certify that this Policy was adopted by Common Council as indicated
above.
________________________ ______________________
Common Clerk Date
Date Created: Common Council Approval Date: Contact:
31.06.21 Finance and Administrative Services
TABLE OF CONTENTS
1. POLICY STATEMENT ..................................................................................................... . 2
2. PURPOSE OF ABC REPORTING POLICY ........................................................................... 2
3. TIMELINES AND REPORTING STRUCTURE ...................................................................... 2
4. REPORTING TEMPLATE .................................................................................................. 2
5. ABC POLICY REVIEW ....................................................................................................... 3
6. ROLES AND RESPONSIBILITIES ....................................................................................... 3
7. APPENDICES ................................................................................................................... 3
City of Saint John
ABC Policy
1. POLICY STATEMENT
1.1 This Agencies, Boards, and Commissions (ABC) policy sets out a standardized
reporting template and guidelines to assist with reporting to the City of Saint John.
1.2 The City of Saint John (City) established this policy to address an opportunity of
communication and to build upon the mutual understanding between ABCs and the
City to promote transparency. Additional reporting may be requested for ABCs that
fall outside of the reporting criteria within the standard operating procedures.
1.3 Key Performance Indicators, Financial Results, Growth, and Operations will be
among the standard reporting requirements.
2. PURPOSE OF AGENCY, BOARDS, AND COMMISSION REPORTING
2.1 Provide a standard reporting template, requirements, and consistent timeline for
each ABC receiving municipal funding.
2.2 Allow Finance Committee, Growth Committee, and /or Public Safety Committee to
review reporting prior to submission to Council consent agenda.
2.3 Demonstrate taxpayer value for money and performance of public benefits of all
ABCs to which is supported through municipal funding and to which the City
supports.
3. TIMELINES AND REPORTING STRUCTURE
3.1 All reporting requirements and documentation is outlined in the Standard Operating
Procedure and compliance is required.
3.2 Any ABC that does not receive funding from the City of Saint John is not subject to
the requirements of the Standard Operating Procedure or this policy.
3.3 This policy does not exempt Council or its standing Committees from requesting
additional information.
4. STANDARD REPORTING TEMPLATE
4.1 The reporting template is a standardized form and must not be altered.
4.2 Template focuses on three key performance business indicators; Growth, Financial,
and Operations.
2
City of Saint John
ABC Policy
4.3 Chief of Staff will deem if report is filed in entirety and either rejected for
resubmission or approved to go to respective Committee.
5. ABC POLICY REVIEW
5.1 The ABC Policy shall be reviewed no later than every 5 years or as required and the
Grant or ABC Matrix updated yearly.
6. ROLES AND RESPONSIBILITIES
6.1 Agency, Board, and Commissions shall:
6.1.1 Complete all reporting requirements and supply documents to Common Clerk.
6.2 Common Council shall:
6.2.1 Approve the ABC Policy and any amendments to the policy.
6.3 The Finance Committee, Growth Committee, and / or Public Safety Committee shall:
6.3.1 Review the reporting templates to ensure alignment with
Policies
6.4 The Chief of Staff shall:
6.4.1 Review the policy every five years or as required and submit required
changes to the Finance Committee for recommendation to Common Council
for consideration and approval.
6.4.2 Ensure compliance and mandatory requirements contained in this policy and
standard operating procedure are met, which could include internal audit
review of policy compliance.
7. APPENDICES
Appendix A: Standard Operating Procedure
Appendix B: Standard Reporting Template
Appendix C: Grant or ABC Matrix
3
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Agencies, Boards, and Commissions (ABCs) Reporting
1.0 PURPOSE
The purpose of this Standard Operating Procedure (SOP) is to detail the reporting requirements
for Agencies, Boards, and Commissions (ABCs) who receive municipal funding.
Each ABC will be required to complete a Standard Reporting Template (Appendix B) on a bi-
annual basis and submit annual audited financial statements with approved budget. If the City
provides a subsidy that exceeds $250,000, an annual report and presentation will also be
required.
2.0 ANNUAL REPORT
The annual report shall include:
1. Opening letter from the Chairperson providing a snapshot of the significant developments
in the past year, company initiatives and a brief summary of the financials. Key elements
included in this section are the challenges that the business faced, its successes and
insight into the growth of the company.
2. Business Profile which includes the vision and mission statement of the ABC, identifying
the board of directors, key executive staff, and highlights of the primary accomplishments
and the impact of these accomplishments.
3. Management Discussion & Analysis which includes an overview of the ABC performance
over the past 3 years, discussion of current year financial results, changes in full time
1
equivalents of workforce and 5 year forecast. A review of the governance of the
organization including all significant policies that have been adopted by the Board. Key
Performance Indicators, both targets, previous year results should be profiled in this
section with commentary respecting performance. Significant changes in service delivery
should be included in this section and any other operational information that would be
beneficial for stakeholders.
4. Audited Financial Statements are the most important part of the annual report that allows
the reader to determine how well the ABC has performed in past, its ability to pay off its
debts and its plans for growth and alignment with approved yearly budget.
The Standard Reporting Template combined with an Annual Report will promote transparency
and communicate the ABCs financial and operational performance.
3.0 ADHERENCE TO CITY FINANCIAL POLICIES
ABCs that receive funding from the City are expected to adopt the
The Budget Monitoring Policy (FAS-021) is incorporated into the standardized reporting
template.
4.0 DEFINITIONS
company is achieving its mission and if successful in reaching targets.
Standardized Reporting Template: A consistent and uniform report for all ABCs to present
financial and operating results.
Agency, Board, and Commission: Are separate legal entities that are controlled by the City of
Saint John and carry out a range of functions and services to the community. Control is the
power to govern the financial and operating policies of another organization with the expected
Indicators of control include:
1. Power to unilaterally appoint or remove a majority of the members of the governing
body of the organization
2. Access to the assets of the organization and has the ability to direct the ongoing use of
those assets or has responsibility for the losses of the organization
3. Holds majority of the voting rights that confers power to govern the financial and
operating policies of the organization
4. Has unilateral power to dissolve the organization and thereby access its assets and
become responsible for its obligations
2
5. Provide significant input into the appointment of members of the governing body of the
organization by appointing a majority of those members from a list of nominees
provided by others or being otherwise involved in the removal of a significant number of
members
6. Ability to direct or establish or amend the mission or mandate of the organization
7. Approve the business plans or budgets for the organization and require amendments,
either on a net or line by line basis
8. Establish borrowing or investment limits or restrict the organizations investments
9. Restrict the revenue generating capacity of the organization, notably the sources of
revenue
10. Establish or amend the policies that the organization uses to manage, such as those
relating to accounting, personnel, compensation, collective bargaining or deployment of
resources
5.0 ROLES AND RESPONSIBILITIES
1. Agency, Board, and Commssion: Each agency, board, or commission shall direct its
General Manager to complete the reporting template and other required documentation
based on the timelines within this policy for submission to Common Clerk at the City of
Saint John.
2. Common Clerk: Is responsible to receive the required documents based on timeline and
compile package for Committee meetings.
3. Chief of Staff: Will review package prior to being placed on Committee Agenda. If
submissions do not comply with the ABC Reporting Policy, are incomplete, or are deemed
poor quality, they will be rejected with the expectation of resubmission. The Committee
will be notified by the Chief of Staff of a rejected submission.
4. Finance Committee, Growth Committee, and / or Public Safety Committee: Will review
reporting documents and receive presentations and make any and all recommendations
to Common Council.
5. Common Council: Will review Committee recommendations and make any and all
required policy decisions.
3
6.0 REPORTING REQUIREMENTS AND TIMELINES
Standard Audited Annual Report
Template Financial with Due to Common Clerk
Funding Level Completion Statements Presentation
1. Standard Template period ending
th st
June 30and December 31 due
within 45 days followed by a 15 day
review period by the Chief of Staff.
$1 -
Bi-Annually Yes No
$250,000 2. Audited Financial Statements for fiscal
st
period December 31 due within 90
days.
3. No presentation or annual report
required unless requested.
1. Standard Template period ending
th st
June 30and December 31due
Over within 45 days followed by a 15 day
Bi-Annually Yes Yes
$250,000 review period by Chief of Staff.
2. Audited Financial Statements for fiscal
st
period December 31 due within 90
days.
3. Annual Report for year end December
st
31due within 120 days.
4. Presentation of annual report to
Finance Committee for year end
December 31st within 160 days.
7.0 STANDARD REPORTING TEMPLATE
Standard reporting template consists of three main themes (Growth, Finance, and Operations).
The template shall be completed as follows:
1. Name: Reporting Organzations Name
4
2. Reporting Period: Follows above Reporting Timelines (Example: Year to Date June
th
30, 2021)
3. Mission / Mandate:
products/services delivered, primary customers, and reason for existence. (why you
are here, what you are doing, and where you are going).
4. Growth Strategy These key performance indicators are measures of increasing,
developing, and maturing that are standard to each agency, board and commission.
Number of employees are full time employees.
5. Financial Strategy These key performance indicators are measures of financial
6. Operations Strategy These key performance indicators will detail service
performance, risks the company is facing, and key operating performance
measurements.
This template shall not to be altered and must be entirely completed each reporting period. Any
agency, board or commission that fails to comply shall be subject to a review by the Committee
8.0 APPROVAL
RECOMMENDED TITLE SIGNATURE DATE
9.0 APPENDICES
Appendix A: City of Saint John ABC Reporting Policy
Appendix B: Standard Reporting Template
Appendix C: Grant or ABC Matrix
5
Agencies, Boards, and Commissions Policy Standard Reporting Template
Name
Reporting Period
Mission/
Mandate
Growth
KPI Target 1. KPI Actual 1.
2. 2.
3. 3.
# Employees # # Employees #
Current Year Prior Year
# Customers or # # Customers or #
Events Current Year Events Prior
Year
Growth Objectives
Activities
Undertaken to
Achieve Growth
Objectives
Financial
KPI Target 1. KPI Actual 1.
2. 2.
3. 3.
City of Saint John $ City of Saint John $
Annual Subsidy Annual Subsidy
Current Year Prior Year
Actual Year-to-Date Budget Year-to-Prior Year-to-Date Results
Results Date Results
Wages & Benefits $ $ $
Goods & Services $ $ $
# employees # # #
Total Revenues $ $ $
Total Expenses $ $ $
Surplus/Deficit $ $ $
Variance
Explanations
Agencies, Boards, and Commissions Policy Standard Reporting Template
Operations
KPI Target 1. KPI Actual 1.
2. 2.
3. 3.
Annual Performance 1.
2.
3.
Year to Date 1.
Performance 2.
3.
Top Risks Facing the 1.
Organization 2.
3.
FINANCECOMMITTEEREPORT
Report DateJuly 19, 2021
Meeting DateJuly 22, 2021
Chairman CouncillorSullivanandMembers of Finance Committee
SUBJECT: Asset Management Policy Updates
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Finance Committee.
AUTHORIZATION
Primary AuthorCommissioner/Dept. HeadCity Manager
Samir YammineJ. Brent McGovernJohn Collin
RECOMMENDATION
It is recommended the Finance Committee endorse the following changes to the
Asset Management Policy:
o
principle.
o
infrastructure and align with strategic plans.
It is further recommended that Finance Committee recommend Council approve
theupdated Asset Management Policy at the next meeting of Council.
EXECUTIVE SUMMARY
The purpose of this report is to update the Asset Management (AM) Policy to
address the following:
Allow for the consideration of infrastructure investment to improve the
assets.
Improve decision-making and risk management processes by continuously
considering the vulnerability of City assets to the effects of climate change.
PREVIOUS RESOLUTION
- 2 -
M&C 2018-68. Common Council approved the City of Saint John Updated Asset
Management Policy Statement.
STRATEGIC ALIGNMENT
The proposed adjustments to the 2021 Utility and General Fund Capital Budgets
Capital Budget Policy, Asset Management Policy, Central Peninsula Neighborhood
Plan, PlaySJ, MoveSJ, PlanSJ with a focus on asset management and leveraging
every City Share dollar.
REPORT
Background
Since 2016 the City of Saint John has made significant improvements to its asset
management program, which has resulted in the following benefits and
outcomes:
Reduce the General Fund Infrastructure Deficit by over $46 Million or 39%
as of 2019 compared to 2016.
-based decisions and prepare
reliable financial forecasts.
Increase capacity building and knowledge among staff on asset
management practices.
various level of governments and FCM.
Increase collaboration among departments on asset management
practices, budget process, infrastructure investments, data sharing, etc.
maintain a defined Level of Service (LOS) and the cost implications to
decrease/increase the LOS.
Reduce maintenance and operating costs.
Develop Policies, Strategies and Plans to address challenges facing the
Analysis
Until now the City has primarily used Risk and Lifecycle Cost considerations to
prioritize infrastructure investments. Previous financial challenges necessitated
the allocation of capital funding to essential services based primarily on Risk and
M program was still in its
infancy and had limited ability to effectively use Levels of Service in decision-
making.
- 3 -
Quality of Life and overall Levels of Service, instead Risk and Lifecycle Costs were
the main drivers in decision-making. However, as our asset management program
-making and the
allocation of capital budgets should be based on all three key principles of asset
management:
1. Risk Do we own assets which pose a significant risk to the community?
How can we mitigate these risks?
2. Lifecycle Cost How do we manage our infrastructure at the lowest
lifecycle cost while still providing an acceptable level of service?
3. Levels of Service What assets / investments are required to provide a
Level of Service that is acceptable to the community?
staff are now ready to begin using Levels of Service as a key component in capital
decision--term
capital plans which mitigate Risk, minimize total Lifecycle Cost, and achieve a
financially sustainable Level of Service acceptable to the community.
SERVICE AND FINANCIAL OUTCOMES
investments in Quality-of-
and strategic plans, ensuring all relevant planning documents and policies are
considered when investing in infrastructure.
xx
ATTACHMENTS
Asset Management Policy
ASSET MANAGEMENT
CITY OF SAINT JOHN POLICY STATEMENT
POLICY SECTION: ASSET AND ENERGY DIVISION OF UTILITIES & INFRASTRUCTURE
1. POLICY STATEMENT
ensure sustainable delivery of services, the City adopts the following statement.
The City of Saint John shall adopt and apply recognized asset management practices in support of
delivering se
related strategic plans.
Specific objectives of the Asset Management (AM) policy are to:
Improve the reliability of customer service by maintaining clearly defined levels of service.
.
Improve the transparency and accountability of community investments in the management of
.
risks of reduced service delivery.
Facilitate the leveraging of partnerships and infrastructure funding from external sources.
The City shall maintain a strategy for the implementation of asset management practices across the
organization. The strategy will incorporate the following asset management principles:
Incorporating industry recognized asset management protocols.
Defining levels of service to support quality of life objectives defined in strategic plans.
Evaluating risks of asset failure, including the threat of climate change.
Utilizing lifecycle costing principles.
Incorporating continuous improvement practices.
Asset management will be considered and integrated in the development of all other organizational plans,
including capital and operating budgets.
2. SCOPE
This policy applies to all City of Saint John activities related to all assets of the City.
3. LEGISLATION AND STANDARDS
Province of New Brunswick Local Governance Act
4. ROLES AND RESPONSIBILITES
Refer to the Governance Structure outlined in the AM strategy (Appendix A - 3.1) for a hierarchical
representation of the following roles.
4.1 City Council
Adopt AM policy.
Revise and update the AM policy as required.
4.2 Finance Committee
Coordinate interaction between Council and the Senior Leadership Team
4.3 Senior Leadership Team
Establish and maintain an AM strategy to implement the AM policy.
Report to Council on the progress of meeting the AM policy objectives.
Direct the AM Steering Group to develop and maintain an AM work plan to complete the AM
strategies.
4.4 AM Coordination Team (part of AM Steering Group)
Prepare annual asset management plan (AMP).
Submit AMP to the provincial government to satisfy regulatory and funding requirements.
Establish and direct AM Support Groups as required.
Report to the Senior Leadership Team on the implementation of the of the AM strategy.
4.5 AM Steering Group
Establish and maintain an AM work plan to implement the AM strategy.
Coordinate AM activities across the organization.
Coordinate with AM Support Groups to develop the AM work plan.
4.6 AM Operation Teams
Execute the AM work plan.
Report to the AM Steering Group on the results of AM work plan.
Coordinate with AM Support Groups to execute the AM work plan.
4.7 AM Support Groups
Provide specialized expertise to support AM Steering Group to establish and maintain the AM
work plan.
Provide specialized expertise to support the AM Operation Teams to execute the AM work plan.
5. MONITOR AND REVIEW
This Policy will be reviewed every 3 years, and as determined by the City Manager.
6. IMPLEMENTATION
This Policy will be implemented under the authority of the City Manager by the Asset & Energy
Management Division of Finance and Administrative Services.
7. AUTHORIZATION
This Policy shall be authorized by the City Manager pursuant to a resolution of Common Council approving
8. RESOURCES
The City recognizes that a successful asset management program depends upon the employees of the City
of Saint John along with Common Council.
9. GLOSSARY
None.
10. INQUIRIES
Asset & Energy Management
Infrastructure & Utilities.
11. APPENDICES
Appendix A - City of Saint John Asset Management Strategy
FINANCECOMMITTEEREPORT
Report DateJuly 19, 2021
Meeting DateJuly 22, 2021
Chairman SullivanandMembers of Finance Committee
SUBJECT: Utility and General Fund 2021 Capital Programs Revision III
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Finance Committee.
AUTHORIZATION
Primary AuthorCommissioner/Dept. HeadCity Manager
Michael Baker J. Brent McGovernJohn Collin
RECOMMENDATION
It is recommended that members of the Finance Committee:
Endorserevision III of the 2021 Water and Sewerage Utility Fund Capital
Budget in the amount of $12,036,000 (gross) with contributions from other
sources of $5,790,000 yielding a net capital budget in the amount of
$6,246,000 to befunded by pay as you go (net) as set in Appendix A.
It is recommended that members of the Finance Committee:
Endorserevision III of the 2021 General Fund Capital Budget in the amount
of $45,309,783 (gross) with contributions from other sources of
$29,442,183, yielding a net Capital budget in the amount of $15,867,600
to be funded by debt issue (net) as set in Appendix B.
It is further recommended that Finance Committee recommend approval of the
revised Utility and General Fund Capital Budgets at the next meeting of Common
Council.
EXECUTIVE SUMMARY
The purpose of this report is to further revise the 2021 Utility Fund and General
Fund Capital budgets as several priority projects (Dever Road Intermodal Terminal
in West Saint John, Utility SCADA Upgrades, and an emergency renewal of a failed
sewer) have come to light that require City funding to be reallocated to allow each
project to proceed in a timely fashion.
- 2 -
Utility Fund
The overall revised 2021 Water and Sewerage Utility Fund Capital Budget
envelope is proposed to decrease by $572,934 with the decrease coming from
Other Share funding primarily because it is recommended this work be done next
year. The City Share for the revised 2021 Water and Sewerage Utility Fund Capital
approvals in February 2021 and May 2021.
General Fund
The overall revised 2021 General Fund Capital Budget envelope (City and Other
Share)
approvals in February 2021 and May 2021.
PREVIOUS RESOLUTION
M&C 2021-135 (May 3, 2021) Utility and General Fund 2021 Capital Programs
Revision IIIapproved.
STRATEGIC ALIGNMENT
The proposed adjustments to the 2021 Utility and General Fund Capital Budgets
are aligned
Capital Budget Policy, Asset Management Policy, Central Peninsula Neighborhood
Plan, PlaySJ, MoveSJ, PlanSJ with a focus on asset management and leveraging
every City share dollar.
REPORT
The following priority projects have recently come to light that require the
relocation of Capital funding for them to proceed in a timely manner. As a result
of these new projects, adjustments need to be made to the 2021 Capital
Programs.
Dever Road Intermodal Terminal
As detailed to Common Council at the June 28, 2021, Council meeting there is a
substantial amount of City infrastructure (corrugated steel combined sewer)
currently located within the Dever Road Intermodal Terminal upgrade site. As a
result of this upgrade project in order to fully separate the storm and sanitary
flows that currently run through the proposed site two new separated piped
systems will need to be installed. As detailed in M&C 2021-186 and at the June 28,
2021, Council meeting, under the proposed agreement with the developer of the
Dever Road Intermodal Terminal upgrade site, the city would contribute the costs
to cover the purchase of materials and infrastructure inspection services costs
associated solely with the separation of the existing City infrastructure. No
- 3 -
reallocated funds would be spent from this budget until third reading for the
Dever Road Intermodal Terminal upgrade project is approved by Council. As a
result of this proposed agreement, funds within the Utility and General Fund
budgets need to be reallocated to fund the sewer separation work.
SCADA Upgrades
Several upgrades need to be made to (SJW) existing SCADA
communication network to further enhance protection. These upgrades include
the segmentation of the SCADA network. As a result of the required upgrades,
funds within the Utility Fund budget need to be reallocated to fund this project.
Emergency Sewer Replacement
SJW existing 300mm sewer located off Visart Street within one of the Centennial
School driveways has substantial structural defects which have resulted in
several sink holes forming. Recently the area was barricaded off to ensure the
, however, the sewer needs to be replaced. Lining the existing sewer
was investigated by City staff but was determined to not be a viable option. Since
there is approximately 110 m of existing sewer that needs to be replaced, the work
needed to be designed and tendered. The design is currently in the process of
being completed with the expectation of tendering the work shortly after a
Council approval of the Capital Budget modifications. As a result of the required
emergency renewal, funds within the Utility and General Fund budgets need to be
reallocated to fund this project.
SERVICE AND FINANCIAL OUTCOMES
The revised Utility and General Fund programs are provided in Appendix A & B
attached. Items highlighted in blue within the programs illustrate the projects
changed as part of revision III to the Capital Programs.
Utility Fund Program Changes
Due to the above additional projects that require Utility Fund funding, the
following changes are proposed to the Utility program.
1) Deletion of the SJW Roof Replacement project from the 2021 Utility Fund
Program and relist the project in the 2022 program. The SJW Roof
Replacement project is currently funded 80% from the COVID-19
Resilience Infrastructure Funding program. Delaying this work is being
done because roofing costs have increased due to the increased
construction activity and the city is better served doing this work next year.
st
The city has until December 31, 2023, to complete this work.
- 4 -
Recommended
Current Utility
Project Description Other Share Utility Share
Share
Revision III
Roof replacements at several Saint John
Water (SJW) facilities including the Spruce
Lake Pump Station, Millidgeville
Various
Wastewater Treatment Facility (WWTF),
SJW
Lancaster Wastewater Treatment Facility $522,934.00 $175,000.00 $0.00
Water
(WWTF) and Eastern Wastewater
Facilities
Treatment Facility (EWWTF). {ǒĬƆĻĭƷ Ʒƚ
ƭǒĭĭĻƭƭŅǒƌ ŅǒƓķźƓŭ ǒƓķĻƩ ƷŷĻ /hL5ΏЊВ
wĻƭźƌźĻƓĭĻ LƓŅƩğƭƷƩǒĭƷǒƩĻ CǒƓķ
2) Deletion of the development of a Solid Waste Diversion Action Plan project
from the 2021 Utility Fund Program and relist the project in the 2022
program. This can be done as the City was not successful in obtaining the
noted funding for this project under the Environmental Trust Fund (ETF)
program. As a result of not obtaining the ETF funding, this project will not
be undertaken in 2021.
Recommended
Other Current Utility
Project Description Utility Share
Share Share
Revision III
Wastewater Develop a Solid Waste Diversion Action
Treatment Plan to detail the preferred septage
Plant Solid receiving system to be installed at one of
$50,000.00 $10,000.00 $0.00
Waste the City's wastewater treatment facilities.
Diversion {ǒĬƆĻĭƷ Ʒƚ ƭǒĭĭĻƭƭŅǒƌ ŅǒƓķźƓŭ ǒƓķĻƩ ƷŷĻ
Action Plan 9ƓǝźƩƚƓƒĻƓƷğƌ ƩǒƭƷ CǒƓķ͵
3) Deletion of the Lakewood Heights mitigation measures project from the
2021 Utility Fund Program as detailed investigations (i.e., video, smoke
testing, flow monitoring, etc.) of the existing sanitary sewer system are
currently underway. Recommended Capital Improvements projects will be
identified once the current work is completed.
Recommended
Current Utility
Project Description Other Share Utility Share
Share
Revision III
Lakewood Mitigation measures to reduce inflow /
Heights infiltration in the sanitary sewer system,
$250,000.00 $0.00
Sanitary including construction management
System services.
- 5 -
4) Reallocation of $90,000 of the originally budgeted $150,000 from the
Removal of cross-connections on Potable Water and Raw Water
Transmission mains project to fund the Utility Share of proposed new
projects. This can be done as there was savings available for this project
from the tendering process.
Recommended
Project Description Other Share Utility Share Utility Share
Revision III
Removal of two cross-
Removal of cross-
connections on Potable Water
connections on
and Raw Water Transmission
Potable Water and $150,000 $60,000
mains, including construction
Raw Water
management services (Ocean
Transmission mains
Westway / Route 7 Overpass).
The total for the deletions and reallocation is $525,000 of Utility Share funding.
The following are the recommended additions to the Utility Fund Capital Program
to fund the various priority projects. The total additions to the Utility Fund Capital
Program are $525,000.
Recommended
Project Description Other Share Utility Share
Revision III
Emergency renewal of approximately 110m of
existing concrete sewer that has failed in various
Visart Street $200,000.00
locations causing sinkholes, including design and
construction management services.
Material costs to install a new CSO chamber and
Dever Road renew approximately 160 m of 200mm sanitary $125,000.00
sewer including construction management services.
SCADA Upgrading SJW's existing SCADA network which will
$200,000.00
Upgrades include segmenting the current network.
General Fund Program Changes
Due to the above additional priority projects that require General Fund funding,
the following changes are proposed to the 2021 General program.
1) Deletion of the Charlotte Street (Trinity Church to Princess Street)
Reconstruction Project and relist the project in the 2022 program. This
project requires the city to work closely with Saint John Energy (SJE) to
relocate the above ground electrical wiring to below ground infrastructure
via duct banks. Completing this work in 2022 will allow necessary time for
City and SJE staff to work together to complete the design work. Based on
the current time of year it is not expected that any construction would be
- 6 -
completed in 2021 if the project went out to tender in August 2021. In
addition, as Charlotte Street is a key corridor within the Central Peninsula
and will have multiple blocks reconstructed over the next 5 years, moving
the reconstruction work until 2022 will provide staff the opportunity to
bring to Council for review the cross sections for Charlotte Street from
Union Street to Lower Cove Loop.
Recommended
Other Current City
Project Description General Fund
Share Share
Share Revision III
Street reconstruction (curb, sidewalk,
landscaping, and paving), including design
Charlotte
and construction management services. Saint
Street (Trinity
John Energy proposed to be participating in
Church to $360,000 $0.00
the project by providing their services,
Princess
estimated at $200,000, to convert the
Street)
overhead high voltage lines to underground.
Asphalt pavements $41,000 / 0.27 LK.
The following are the required priority project additions to the General Fund
Capital Program.
Recommended
Other
Project Description General Fund
Share
Share Revision III
Install approx. 50m of new storm sewer to
separate combined sewer flows during the
Visart Street emergency renewal of the failed existing $220,000
concrete sewer, including design and
construction management services.
Material costs to install approximately 220m of
Dever Road 900 mm storm sewer including construction $140,000.00
management services.
Overall deletions and additions noted above amount to no change to the total
amount of City funding previously approved by Council in February and May of
2021. These changes will allow three critical projects to promptly proceed.
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
The enclosed revised capital budget changes were coordinated and received input
from: Strategic Services (i.e., Finance), all divisions within Utility and Infrastructure
Services and Transportation and Public Works.
ATTACHMENTS
Appendix A 2021 W&S Utility Fund Capital Program Revision III
Appendix B 2021 General Fund Capital Program Revision III
Presentation
Project(s) adjusted or added as a result of Revision III to the Capital Programs
2021 W&S Utility Fund Capital Program Revision III
Industrial Water Renewal - West
Project Description Other Share Utility Share
Road construction and replacement of three large culverts, including
Coleson Cove Raw Water Transmission
design and construction management services. Phase 1 of 2. Design
$ 525,000.00
line services of Phase 2 for road construction and replacement of three
large culverts.
Upgrade / reconstruction - Appropriate pump sizing, electrical
upgrades, flood proofing, etc. Including design and construction
Musquash Water Pump Station $ 695,000.00$ 870,000.00
management services. Phase B. Project to be partially funded under
DMAF.
$ 695,000.00$ 1,395,000.00
Total
Industrial Water Renewal - East
Project Description Other Share Utility Share
Design services to investigate connecting IP to the East Industrial
Industrial Water Renewal - East piped system to reduce the wasting of water and general loss of $ 50,000.00
water in the brook system.
Total $ -$ 50,000.00
Infrastructure Renewal - Sanitary
Project Description Other Share Utility Share
Emergency renewal of approximately 110 m of exisiting concrete
Visart Street $ 200,000.00
sewer that has failed in various locations causing sinkholes, including
design and construction management services.
$ 90,000.00
Greenhead Road SLS CSupplemental funding for the renewal of Greenhead Road SLS C.
Develop a strategy to mitigate the effects of coastal flooding on the
Flood Risk Mitigation Strategy for
City's infrastructure in the Lower Cove Loop area (Lower Cove SLS and
$ 45,000.00 $ 45,000.00
associated sewer collection system infrastructure). Subject to
Lower Cove Loop
successful funding under the National Disaster Mitigation Program.
Material costs to install a new CSO chamber and renew
$ 125,000.00
Dever Road approximately 160 m of 200mm sanitary sewer including construction
management services.
Renew approx. 55 m of 300mm concrete sanitary sewer to direct
$ 125,000.00
Catherwood Street (Greystone Terrace)flows into an existing sanitary sewer, including design and
construction management services.
Renew 100 m of 375mm TC sanitary sewer (Condition Grade of 3 with
Germain Street (St James Street to Lower an in service year of 1884), including design and construction
$ 110,000.00$ 40,000.00
Cove Loop)
management services. Project to be partially funded under Bilateral
Funding.
Install 150 m of 525mm concrete sanitary sewer including design and
Lower Cove Loop (Charlotte Street to
$ 255,000.00$ 95,000.00
construction management services. Project to be partially funded
Germain Street)
under Bilateral Funding.
Renew 180 m of 300mm T.C sanitary sewer (Condition Grade of 4
Wentworth Street (Elliott Row to Orange
with a year in service of 1867), including design and construction
$ 175,000.00$ 65,000.00
Street)management services. Project to be partially funded under Bilateral
Funding.
Upgrading SJW's existing SCADA network which will include
$ 200,000.00
SCADA Upgrades
segmenting the current network.
Pumping station, land acquisition, and required piping to direct flows
Wastewater Pumping (Prospect Street
$ -$ 575,000.00
to sewer on Main Street West for treatment at the Lancaster Lagoon,
West at Walnut Street
including construction management services.
Renew 275 m of 375 T.C sanitary sewer (Condition Grade 4),
Broadview Avenue (Charlotte Street to
$ 245,000.00$ 90,000.00
including design and construction management services. Project to be
Carmarthen Street)
partially funded under Bilateral Funding.
Construct three headers, one for each cell for the blower system at
$ 750,000.00
Lancaster Lagoon the Lancaster Lagoon complete with road way construction. Including
design and construction management services.
Design for the replacement of wastewater pumping stations that are
WWPS Woodlawn Park (1335 Red Head
$ 100,000.00
at the end of their asset life to provide for reliable collection of
Road)
wastewater.
Renewal of approx. 290 m of T.C, Brick and Concrete sanitary sewer
Rodney Street (Market Place to Watson
$ 410,000.00
(Condition Grade 3), including design and construction management
Street)
services. Project to be funded under G.T.F.
Renew 111 m of 250mm and 375mm T.C sanitary sewer (Condition
St James Street (Prince William Street to Grade of 3.5 with an in service year of 1876), including design and
$ 100,000.00$ 36,000.00
Germain Street)
construction management services. Project to be partially funded
under Bilateral Funding.
Structurally line and point repairs to sanitary sewers, including design
Structural Lining $ 225,000.00
and construction management services.
Renew approx. 330 m of 300mm and 375mm T.C sanitary sewer
Waterloo Street (Haymarket Square to
(Condition Grade of 5 with an in service year of 1869), including
$ 310,000.00$ 115,000.00
Castle Street design and construction management services. Project to be partially
funded under Bilateral Funding.
Install approx. 100m of 300mm sanitary sewer for separation,
Princess Street (Water Street to Germain
$ 205,000.00
including design and construction management services. Project to be
Street)
funded under G.T.F.
Renew approx. 250m of 225mm and 300mm TC sanitary sewer
(Condition Grade of 5 with an in service year of 1893), with new
Princess Street (Wentworth Street to
$ 265,000.00$ 95,000.00
200mm and 300mm sanitary sewer, including design and construction
Crown Street)
management services. Project to be partially funded under Bilateral
Funding.
Reconstruction lift station above flood level to provide for reliable
WWPS Beach Crescent (11 Beach collection of wastewater, including design and construction
$ 340,000.00$ 510,000.00
Crescent)
management services. Phase A. Project to be partially funded under
DMAF.
Total
$ 2,460,000.00 $ 3,481,000.00
Infrastructure Renewal - Water
Project Description Other Share Utility Share
Funding for engineering investigations and design for various projects
$ 300,000.00
Engineering Investigation and Design
under the Water and Sanitary Categories.
Installation of Electro-Magnetic flow meters east of PRV #104B and at
Westmorland Road & Bayside Drive Flow
PRV #10 including construction management. Supply and installation
$ 180,000.00
Meters / Chamber #33 Flow Limiting
of flow limiting valves on the east side supply lines to Mill Road Vault,
Valves
including construction management.
Fleet Replacement for Saint John Water. Project to be funded under
Fleet Replacement $ 485,000.00
Fleet Reserve.
Removal of cross-connections on Potable Removal of two cross-connections on Potable Water and Raw Water
$ 60,000.00
Water and Raw Water Transmission Transmission mains, including construction management services
mains (Ocean Westway / Route 7 Overpass).
Renew 100 m of 200mm watermain (1955), including design and
Germain Street (St James Street to Lower
$ 90,000.00 $ 35,000.00
construction management services. Project to be partially funded
Cove Loop)
under Bilateral Funding.
Install 150 m of 200mm watermain, including design and
Lower Cove Loop (Charlotte Street to
$ 135,000.00$ 50,000.00
construction management services. Project to be partially funded
Germain Street)
under Bilateral Funding.
Renew 350 m of 300mm CI watermain (1931), including design and
Wentworth Street (Elliott Row to Orange
$ 445,000.00$ 165,000.00
construction management services. Project to be partially funded
Street)
under Bilateral Funding.
Renew 275 m of 150 mm CI watermain (1917), including design and
Broadview Avenue (Charlotte Street to
$ 225,000.00$ 85,000.00
construction management services. Project to be partially funded
Carmarthen Street)
under Bilateral Funding.
Renewal of approx. 295 m of 300mm CI watermain, including design
Rodney Street (Market Place to Watson
$ 345,000.00
and construction management services. Project to be funded under
Street)
G.T.F.
Renew 110 m of 250mm CI watermain (1876), including design and
St James Street (Prince William to
$ 125,000.00$ 45,000.00
construction management services. Project to be partially funded
Germain Street)
under Bilateral Funding.
Renew approx. 330 m of 300mm CI watermain(1856), including
Waterloo Street (Haymarket Square to
$ 450,000.00$ 275,000.00
design and construction management services. Project to be partially
Castle Street)
funded under Bilateral Funding.
Renew approx. 275m of 250mm CI (1924) watermain, including
Princess Street (Wentworth Street to
$ 335,000.00$ 125,000.00
design and construction management services. Project to be partially
Crown Street)
funded under Bilateral Funding.
$ 2,635,000.00$ 1,320,000.00
Total
Revised 2021 W&S Utility Fund Capital Program Summary
Category Other Share ($)
City Share ($)Total ($)
Industrial Water Renewal - West $ 695,000.00$ 1,395,000.00$ 2,090,000.00
Industrial Water Renewal - East$ -$ 50,000.00$
50,000.00
Infrastructure Renewal - Sanitary$ 2,460,000.00$ 3,481,000.00$ 5,941,000.00
Infrastructure Renewal -Water$ 2,635,000.00$ 1,320,000.00$ 3,955,000.00
Total ($)$ 5,790,000.00$ 6,246,000.00$ 12,036,000.00
Summary of Capital Costs (Utility Share)
21%22%
Industrial Water Renewal - West
1%
Industrial Water Renewal - East
Infrastructure Renewal - Sanitary
Infrastructure Renewal -Water
56%
Project(s) adjusted as a result of changes to the COVID-19 Resilience Infrastructure Funding Program and the Community Development
Funding Program.
2021 General Fund Capital Program Revision III
Fundy Quay
Project Description Other Share City Share
Soil Remediation - Develop and implement strategy to effectively manage
$ 2,486,000.00
Fundy Quay
existing soil contamination on the site.
Infill - Re-grading the site while incorporating the seawall refurbishment to
$ 625,000.00$ 1,875,000.00
Fundy Quay facilitate future development. Project to be partially funded by the Province of
New Brunswick.
Harbour Passage & Pedway - Obtaining public access to waterfront property
$ 7,996,000.00$ 1,999,000.00
Fundy Quay which will be key to improving active transportation in the uptown area. Project
to be partially funded by the COVID-19 Resilience Infrastructure Fund
Loyalist Plaza - Re-development of the highly utilized public space which will
allow for the integration of the plaza design with the design of the surrounding
$ 2,452,750.00$ 222,250.00
Fundy Quay
development. Project to be partially funded under Bilateral Funding and by the
Province of New Brunswick.
Additional Fundy Quay funding for Soil Remediation, Infill, Harbour Passage &
$ 1,635,000.00$ 825,000.00
Fundy Quay
Pedway and Loyalist Plaza. - Pay as you go funding for the Other Share
Total
$ 12,708,750.00$ 7,407,250.00
Corporate Performance
Information Technology $ 835,000.00$ 1,500,000.00
IT Infrastructure Replacement / Upgrades / ERP System
Total
$ 835,000.00$ 1,500,000.00
Finance and Administration Services
Project Description Other Share City Share
$ 2,065,000.00
Fleet Fleet Replacement
Total
$ 2,065,000.00 $ -
Saint John Parking
Parking Replacement of 17 Parking Meters $ 113,000.00
Parking Bus Shelter - Market Square $ 10,000.00
Total
$ -$ 123,000.00
Asset and Facility Management
Project Description Other Share City Share
Fundy Quay - Seawall Refurbishment - Project to be partially funded by the
$ 3,240,000.00
Fundy Quay
Province of New Brunswick.
Fundy Quay - Seawall Refurbishment - Project to be partially funded under
$ 2,180,000.00$ 1,530,000.00
Fundy Quay
DMAF.
$ 553,333.00$ 575,000.00
Municipal Buildings Deep Municipal Energy Retrofit. Subject to Federal Funding.
Market Square District Energy Phase 1. Subject to Federal Funding.$ 488,000.00$ 732,000.00
$ 100,000.00
Lord Beaverbrook Main Electrical Services Upgrade
Replacement of the existing roofs (i.e. plywood, shingles and insulation) at fire
Municipal Buildings $ 200,000.00$ 240,500.00
stations #5 & #7. Subject to successful funding under the COVID-19 Resilience
Infrastructure Fund
Replacement of an existing chiller at the Charles Gorman Arena as well as
Charles Gorman Arena / Stewart
replacing three existing condensers at the Stewart Hurley Arena, Charles Gorman
$ 95,000.00 $ 95,000.00
Hurley Arena / Lord Beaverbrook
Arena and Lord Beaverbrook Arena. Subject to successful funding under the
Arena
Community Development Fund.
Replacing the existing dasher boards and glass with new boards and glass that
$ 225,000.00 $ 225,000.00
TD Station meet QMJHL Requirements. Subject to successful funding under the Community
Development Fund.
Replacement of the existing metal siding that is in poor condition as well as
replacing the existing facility sign at the Municipal Operations Complex. Work
Municipal Buildings $ 418,600.00 $ 105,000.00
also includes the replacement of several leaking windows. (175 Rothesay
Avenue). Subject to successful funding under the COVID-19 Resilience
Infrastructure Fund
Various Municipal & Water Complete preliminary investigation into setting up the City's Asset Management
$ 50,000.00
Facilities Information System (AMIS).
Repairs to the existing building foundation and completing necessary water
Carleton Community Centre $ 75,000.00 $ 75,000.00
proofing as Community Center has a foundation leak. Subject to successful
funding under the Community Development Fund.
Replacement of an existing air handling unit at the Municipal Operations building
$ 84,000.00 $ 21,000.00
Municipal Buildings (175 Rothesay Avenue) including the control system. Subject to successful
funding under the COVID-19 Resilience Infrastructure Fund
St Patrick Street Pedway - Roof repair due to existing leak including the
$ 24,000.00$ 6,000.00
Municipal Buildings replacement of the existing air handling unit. Subject to successful funding
under the COVID-19 Resilience Infrastructure Fund
City Market Pedway HVAC Upgrade. Subject to successful funding under the
$ 24,000.00 $ 6,000.00
Municipal Buildings
COVID-19 Resilience Infrastructure Fund
Renovation of upper City Market Lobby Entrance as well as Elevator Entrance to
City Market $ 37,500.00 $ 37,500.00
City Market Tower. Subject to successful funding under the Community
Development Fund.
$ 50,000.00
TD Station Heat Pump Replacement
$ 80,000.00
Trade and Convention Center Replacement Equipment (Banquet Equipment, Tables & Walk-in Fridge).
$ 30,000.00
Trade and Convention Center Replace Flooring and Staging Equipment.
$ 15,000.00
Trade and Convention Center Security Upgrades.
Total
$ 7,644,433.00 $ 3,973,000.00
Parks & Recreation Services
Project Description Other Share City Share
Supply and installation of a new score clock at the Shamrock Park artificial turf
field as well as other improvements to the Shamrock Park Facility. Replacement
Facility Renewal Fund of an existing wooden structure at the City's Market Place West Playground. The $ 75,000.00 $ 75,000.00
current structure has reached the end of its useful life. Subject to successful
funding under the Community Development Fund.
Total
$ 75,000.00$ 75,000.00
Storm Water
Project Description Other Share City Share
Install approx. 50 m of new storm sewer in order to separate combined sewer
Visart Street $ 220,000.00
flows during the emergency renewal of the failed existing concrete sewer,
including design and construction management services.
Renew approx. 85 m of new 375mm storm sewer for separation, remove two
Catherwood Street (Ready Street to
$ 134,350.00
CB's on Greystone Terrace, and redirect two CB's at the top of Catherwood Street
Greystone Terrace)
into the storm sewer, including design and construction management services.
Renew 125 m of 600mm storm sewer for separation, including design and
Germain Street (St James Street to
$ 115,000.00 $ 40,000.00
construction management services. Project to be partially funded under Bilateral
Lower Cove Loop)
Funding.
Install approx. 70 m of new 1800mm storm sewer and outfall for separation,
$ 840,000.00
Water Street Outfall
including design and construction management services.
Install approx. 190 m of 375mm storm sewer for separation , including design
Wentworth Street (Elliott Row to
$ 140,000.00 $ 50,000.00
and construction management services. Project to be partially funded under
Orange Street)
Bilateral Funding.
Install approx.. 275 m of 375 mm and 450mm storm sewer for separation,
Broadview Avenue (Charlotte
$ 200,000.00 $ 75,000.00
including design and construction management services. Project to be partially
Street to Carmarthen Street)
funded under Bilateral Funding.
Install approx. 150m of new 600mm storm sewer and 135m of 450mm storm
Rodney Street (Market Place to
$ 340,000.00
sewer for separation, including design and construction management services.
Watson Street)
Project to be funded under the G.T.F.
Install 113 m of 300mm storm sewer for separation, including design and
St James Street (Prince William
$ 70,000.00 $ 25,000.00
construction management services. Project to be partially funded under Bilateral
Street to Germain Street)
Funding.
Install approx. 400m of new 300mm and 375mm storm sewer for separation,
Waterloo Street (Haymarket Square
$ 360,000.00 $ 135,000.00
including design and construction management services. Project to be partially
to Castle Street)
funded under Bilateral Funding.
Install approx. 46 m of 300mm and 56m of 375mm storm sewer for separation,
Princess Street (Water Street to
$ 160,000.00
including design and construction management services. Project to be funded
Germain Street)
under G.T.F.
Install approx. 255 of new 300mm storm sewer for separation, including design
Princess Street (Wentworth Street
$ 205,000.00 $ 75,000.00
and construction management services. Project to be partially funded under
to Crown Street)
Bilateral Funding.
Total
$ 1,590,000.00 $ 1,594,350.00
Transportation
Project Description Other Share City Share
Material costs to install approximately 220m of 900mm storm sewer including
Dever Road $ 140,000.00
construction management services.
Engineering Investigation and Funding for engineering investigations and design for various projects under the
$ 300,000.00
Design Storm and Transportation Categories.
Asphalt Roadway Resurfacing and Renewal of asphalt roadway and concrete curb and sidewalk including drainage
$ 434,000.00
Curb & Sidewalk Renewal - control and landscaping in conjunction with the annual asphalt roadway
Neighbourhoods maintenance and rehabilitation program. Pay as you go.
Asphalt Roadway Resurfacing and Renewal of asphalt roadway and concrete curb and sidewalk including drainage
$ 1,500,000.00
Curb & Sidewalk Renewal - control and landscaping in conjunction with the annual asphalt roadway
Neighbourhoods maintenance and rehabilitation program. Project to be funded under G.T.F.
Street reconstruction (curb, sidewalk, landscaping and paving), including design
Germain Street (St James Street to
$ 130,000.00 $ 50,000.00
and construction management services. Asphalt pavements $43,000 / 0.28LK.
Lower Cove Loop)
Project to be partially funded under Bilateral Funding.
Street reconstruction (curb, sidewalk, landscaping and paving), including design
Wentworth Street (Elliott Row to
$ 455,000.00 $ 170,000.00
and construction management services. Asphalt pavements $156,000 / 1.05LK.
Orange Street)
Project to be partially funded under Bilateral Funding.
Street reconstruction (curb, sidewalk, landscaping and paving), including design
Broadview Avenue (Charlotte
$ 360,000.00 $ 130,000.00
and construction management services. Asphalt pavements $97,000 / 0.67LK.
Street to Carmarthen Street)
Project to be partially funded under Bilateral Funding.
Street reconstruction (curb, sidewalk, landscaping and paving), including design
Rodney Street (Market Place to
$ 550,000.00
and construction management services. Asphalt pavements $140,000 / 0.94LK.
Watson Street)
Project to be funded under the G.T.F.
Street reconstruction (curb, sidewalk, landscaping and paving), including design
St James Street (Prince William
$ 160,000.00 $ 60,000.00
and construction management services. Asphalt pavements $42,000 / 0.28LK.
Street to Germain Street)
Project to be partially funded under Bilateral Funding.
Street reconstruction (curb, sidewalk, landscaping and paving), including design
Waterloo Street (Haymarket Square
$ 610,000.00 $ 225,000.00
and construction management services. Asphalt pavements $150,000 / 0.98LK.
to Castle Street)
Project to be partially funded under Bilateral Funding.
Street reconstruction (curb, sidewalk, landscaping and paving), including design
Princess Street (Wentworth Street
$ 325,000.00 $ 120,000.00
and construction management services. Asphalt pavements $108,000 / 0.72LK.
to Crown Street)
Project to be partially funded under Bilateral Funding.
Total
$ 4,524,000.00 $ 1,195,000.00
Revised 2021 General Fund Capital Program Summary
Category Other Share ($)
City Share ($)Total ($)
Fundy Quay / Seawall
$ 12,708,750.00$ 7,407,250.00$
20,116,000.00
Refurbishment
$ 835,000.00$ 1,500,000.00$
2,335,000.00
Corporate Performance
Finance and Administration
$ 2,065,000.00$ -$
2,065,000.00
Services
$ -$ 123,000.00$
123,000.00
Saint John Parking
$ 7,644,433.00$ 3,973,000.00$
11,617,433.00
Asset and Facility Management
Parks & Recreation Services$ 75,000.00$
75,000.00$ 150,000.00
Urban Storm Water$ 1,590,000.00$ 1,594,350.00$
3,184,350.00
Transportation $ 4,524,000.00$ 1,195,000.00$
5,719,000.00
Total ($)$ 29,442,183.00$ 15,867,600.00$
45,309,783.00
Summary of Capital Costs (City Share)
8%
10%
Fundy Quay / Seawall Refurbishment
Corporate Performance
0%
Finance and Administration Services
Saint John Parking
47%
Asset and Facility Management
Parks & Recreation Services
25%
Urban Storm Water
Transportation
1%
0%
9%
Utility & General Fund -2021 Capital Programs Revision III
Finance Committee July 22, 2021
tƩźƒğƩǤ wĻğƭƚƓ ŅƚƩ ƷŷĻ wĻǝźƭźƚƓƭ
2021 Utility & General Fund Capital Programs Revision III Primary Reason
Threepriorityprojectsrequirefundingtobecompletedinatimelyfashion:
1.DeverRoadIntermodalTerminalinWestSaintJohn
2.UtilitySCADAUpgrades
3.Renewalofafailedsewer
2
.ğĭƉŭƩƚǒƓķ
DeverRoad Intermodal Terminal
As detailed to Council at the June 28, 2021 Council meeting there is a
substantial amount of City infrastructure (corrugated steel combined sewer)
that is at the end of the asset life and it is located within the planned
redevelopment site. To fully separate the storm and sanitary flows, two new
separated piped systems will need to be installed.
SCADA Upgrades
network to provide further protection. These upgrades include the
segmentation of the SCADA network.
Emergency Sewer Replacement
VisartStreet within one of the Centennial
several sink holes forming. The existing sewer needs to be replaced in 2021.
3
{ğźƓƷ WƚŷƓ ğƷĻƩ wĻǝźƭźƚƓ LLL ΏЋЉЋЊ /ğƦźƷğƌ IźŭŷƌźŭŷƷƭ
Revised 2021 Capital budget $12,036,000
Utility Funding for Capital budget Capital from
Operating Remains Unchangedat $6,246,000
Reduction of funding from other sources -Now
at $5,790,000 (Previously at $6,362,934)
A decrease of $572,934 from Other Share
$50,000 due to SJW not obtaining
Environmental Trust Fund money
$522,934 due to SJW delaying the COVID-19
funded roof replacement project to 2022 to
bring greater value
4
ЋЉЋЊ wĻǝźƭĻķ DĻƓĻƩğƌ /ğƦźƷğƌ .ǒķŭĻƷ ΏhǝĻƩǝźĻǞ
Revision III of the General Fund Capital Budget -$45,309,783
City Share remains unchangedat $15,867,600 (City debt issuance)
City Share remains unchangedat $29,442,183 (other sources)
Postpone to 2022 the Charlotte Street (Trinity Church to Princess Street)
Reconstruction project and reallocate the City Share Funding.
5
wĻĭƚƒƒĻƓķğƷźƚƓ
ItisrecommendedthatmembersoftheFinanceCommittee:
EndorseRevisionIIIofthe2021WaterandSewerageUtilityFundCapital
Budgetintheamountof$12,036,000(gross)withcontributionsfromother
sourcesof$5,790,000yieldinganetcapitalbudgetintheamountof
$6,246,000tobefundedbypayasyougo(net)assetinAppendixA.
ItisrecommendedthatmembersoftheFinanceCommittee:
EndorseRevisionIIIofthe2021GeneralFundCapitalBudgetintheamountof
$45,309,783(gross)withcontributionsfromothersourcesof$29,442,183,
yieldinganetCapitalbudgetintheamountof$15,867,600tobefundedby
debtissue(net)assetinAppendixB.
ItisfurtherrecommendedthatFinanceCommitteerecommendapprovalofthe
revisedUtilityandGeneralFundCapitalBudgetsatthenextmeetingofCommon
Council.
6
/źƷǤ ƚŅ {ğźƓƷ WƚŷƓ
ЋЉЋЋ Dğƭ ğǣ CǒƓķƭ vǒğƌźƷǤ ƚŅ \[źŅĻ
LƓǝĻƭƷƒĻƓƷƭ
July 22, 2021
exercise:
nvestmentsthatfallwithintheresponsibilitiesand
authorityoflocalgovernmentthatcontributetothe
wellness,livabilityandvibrancyofourcommunity.Quality
oflifeinvestmentsshouldseektobringpeopletogether,
buildconnectionsandcontributetotheenjoymentour
residentsexperiencethroughmunicipalassets.
ЋЉЋЋ /ğƦźƷğƌ .ǒķŭĻƷ źƒĻƌźƓĻƭ
July 22: Gas Tax Funds Quality of Life Investments to Finance
Committee for receive and file
July 26: Gas Tax Funds Quality of Life Investments to Common Council
for receive and file
September 2: Draft General and Utility Fund Capital Budgets to Finance
Committee for receive and file
October 13: General and Utility Fund Capital Budgets to Finance
Committee for Approval
October 18: General and Utility Fund Capital Budgets to Common
Council for receive and file
Nov 1: General and Utility Fund Capital Budgets to Common Council for
Approval
vǒğƌźƷǤ ƚŅ \[źŅĻ LƓǝĻƭƷƒĻƓƷƭ
March 25, 2021 -the federal government proposed a one-time investment of
$2.2 billion that would help address infrastructure priorities in municipalities
and First Nations communities. The funds would flow through the federalGas
Tax Fund.
The City of Saint John is set to receive an estimated amount of $4,656,597 as
part of this one-time investment. Investments can be made in 18 different
categories
Public TransitShort-line Rail
Wastewater InfrastructureShort-sea Shipping
Drinking WaterDisaster Mitigation
Solid Waste ManagementBroadband and Connectivity
Community Energy SystemsBrownfield Redevelopment
Local Bridges and RoadsCulture
Capacity BuildingTourism
HighwaysSport
Local and Regional AirportsRecreation
vǒğƌźƷǤ ƚŅ \[źŅĻ LƓǝĻƭƷƒĻƓƷƭ
Background
Capital investments are guided by several policies and align with various plan
Asset Management Policy
Capital Budget Policy
Debt Management Policy
Plan SJ/Play SJ/Move SJ/Central Peninsula Neighborhood Plan
Focus of investments over past years has been renewal of assets due to the
infrastructure deficit Capital program is 85% renewal and 15% new per Capital
Budget Policy
Capital Budget Policy sets out prioritization of capital renewal based on asset
management data
1.Mandatory
2.RiskofFailure
3.PriorityofCouncil
4.PositiveFinancialImpact
5.Discretionary
vǒğƌźƷǤ ƚŅ \[źŅĻ LƓǝĻƭƷƒĻƓƷƭ
Underexistingpolicies,qualityoflifeassets(recreation,parks,
activetransportation)areoftenrankedlowerduetolowriskof
failureandconsequencesoffailure.
TherevisedAssetManagementPolicyaddressesthisbyadding
qualityoflifecriteriaasaconsideration.
Aspartoftheone-timefundingfromtheFederalGovernmentand
anadditionalfundingaspartofthe2022GeneralFundCapital
Budgetitisbeingrecommendedthat$6,000,000beinvestedin
2022forassetsconsideredunderthequalityoflifecriteria.
Criteriaestablishedforqualityoflifeinvestmentsusingexisting
assetdata,Financialpolicies,CityprioritiesandvariousCity
approvedplans.
vǒğƌźƷǤ ƚŅ \[źŅĻ LƓǝĻƭƷƒĻƓƷƭ
Criteria Established for Quality of Life Investments
Must comply with approved Financial Polices
SubjecttoCouncilapprovalofOperatingBudget
FocusonprovidingqualityoflifethroughoutentireCity
Projectsmustbeidentifiedwithinanexistingplan-PlanSJ,Play
SJ,CentralPeninsulaNeighborhoodPlan,MasterParkPlanEtc.
ProjectsguidedbyAssetManagementdataandcriteriaof85%
renewal/15%new
Considerationforprojectsthatoffersthegreatestuseforthemost
people(diversity,access,engagement)
Considerationforprojectsthatprovidegreatestgrowthreturn
potential
Projectcompletionbyendof2022
Welcomingcommunity-projectalignedwithpopulation/growth
strategies(i.e.Senseofbelongingtothecommunity)
vǒğƌźƷǤ ƚŅ \[źŅĻ LƓǝĻƭƷƒĻƓƷƭ
Key considerations in assembling staff
recommendation:
Importanceofgreenspaceandnatural
settingsforSaintJohnresidents;
Contributingtothebroadereffortaround
EconomicandCommunityRecoveryfromthe
publichealthpandemic;
InvestmentsacrossthegeographyoftheCity
and
Supportingthegrowthagenda.
vǒğƌźƷǤ ƚŅ \[źŅĻ LƓǝĻƭƷƒĻƓƷƭ
RockwoodPark$1,800,000-RockwoodPark,
designatedasaregionalparkinPlaySJ,has
undergoneseveralphasesaspartofitsMasterPark
Plan.ItisbeingrecommendedthatPhase3be
approved.ThiswillseeinvestmentsintoLakeDrive
BridgeandPonds,InterpretationCentre,Roadway
andTrails.
DominionPark-$600,000 Designatedasadistrict
parkinPlaySJ,thisprojectwouldbeinadditionto
the$285,000theCityhasearmarkedforDominion
Parkrehabilitationandsupporttheimplementation
oftherecentlydevelopedMasterPlan.
MarketPlaceWest-$400,000 Thereisa
significantneedtorehabilitateexistingassetsin
thisdistrictpark.Staffwouldalsobeseeking
externalfundingpartnersforfundingtoincreasethe
capitalinvestment.Thisinvestmentispartofthe
mostcurrentMasterPlanandalignswithPlaySJ.
vǒğƌźƷǤ ƚŅ \[źŅĻ LƓǝĻƭƷƒĻƓƷƭ
ForestHillsComplex-$400,000 ForestHills
playgroundisadistrictplaygroundandalignswithPlay
SJ.Theplanwouldbetoupgradeandreplacemuchofthe
existingplaygroundcurrentlypastitsusefullife.
HarbourPassage-$700,000 Thisproposedbudgetis
anextensionofHarbourPassagetoTinCanBeach.This
investmentalignswellwithPlaySJ,MoveSJ,the
CentralPeninsulaNeighborhoodPlanandwithcurrent
andfuturedevelopmentopportunities.
MainStreetNorth-$400,000 Aspartofthe
efforttocreatemoreactivetransportationoptions,this
investmentwillcreateaprotectedbikelaneonMain
StreetNorth.ThisinvestmentwouldalignwithMoveSJ,
aswellasanexpectationthatcyclingdemandwouldbe
reducedonHarbourPassage.
vǒğƌźƷǤ ƚŅ \[źŅĻ LƓǝĻƭƷƒĻƓƷƭ
ArtandCulture-$100,000 This
budgetincludesaproposedinvestmentin
artsandculturetorecognizethe
diversityandcontinuedeffortstobecome
themostwelcomingcommunityinAtlantic
Canada.Recommendedinvestmentstobe
broughtforwardatlaterdate.
SportingEnhancements-$200,000
AstheCitycontinuestogrowits
diversepopulation,thereisaneedto
lookatexistingassetssuchasfieldsand
ballcourts.Theseassetsneedtobe
enhanced,supportedoradjustedinorder
tosupportnewerrecreationalofferings,to
ensuretheCityisprovidingsporting
opportunitiesforallmembersofthe
community.Recommendationsbrought
forwardwillalignwithPlaySJ.
vǒğƌźƷǤ ƚŅ \[źŅĻ LƓǝĻƭƷƒĻƓƷƭ
VariousGreening/Branding/Beautification
Investments-$350,000 Thereisaneed
throughouttheentireCitytoundertake
morebeautificationandgreeningefforts.This
wouldinvolveinvestingingreeningmedians,
plantingmoretrees,creatingmorepedestrian
bumpoutsandmorebrandingopportunities.
LoyalistPlaza-$500,000 Aspartof
theFundyQuaydevelopmentunderway,
LoyalistPlazawillseecompleterebrandingand
redesign.Publicconsultationhasbeen
undertakenforthisprojectbringingforward
ideaslikeinstallationofanIcePadasexample.
Finalplanswillbebroughtforwardatafuture
meeting.
vǒğƌźƷǤ ƚŅ \[źŅĻ LƓǝĻƭƷƒĻƓƷƭ
LittleRiverReservoir-$50,000 There
hasbeensignificantinvestmentsover
severalyearsatthisparkaspartofthe
MasterParkPlanandPlaySJ.An
additional$50,000isbeingearmarkedfor
variousbeautificationinvestmentsatthe
park.
DesignandEngineering-$250,000
Thisfundingisforallthedesignand
engineeringneededforthevarious
projects.
SouthMarketStreet-$250,000 This
budgetearmarksfundingtoconvertSouth
MarketStreettoapedestrianpriority
streetincoordinationwithdevelopment
plans.
vǒğƌźƷǤ ƚŅ \[źŅĻ LƓǝĻƭƷƒĻƓƷƭ
Conclusion
Alignswithcurrentpoliciesandplans
Projectsalignwithcriteriaestablished
ProjectsfitwithinGasTaxFundingGuidelines
Addressestheinfrastructuredeficit
wĻĭƚƒƒĻƓķğƷźƚƓ
Staff recommend that the Finance Committee endorse the
Quality of Life criteria established for the proposed
investments and to receive and file this report as presented
and forward a copy of the report and presentation to the
next meeting of Common Council as a receive and file.
vǒĻƭƷźƚƓƭ
FINANCECOMMITTEEREPORT
Report DateJuly 14, 2021
Meeting DateJuly 22, 2021
Chairman CouncillorSullivanandMembers of Finance Committee
SUBJECT: 2022 Gas Tax FundsQuality of Life Investments
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Finance Committee.
AUTHORIZATION
Primary AuthorCommissioner/Dept. HeadCity Manager
Craig LavigneKevin FudgeJohn Collin
RECOMMENDATION
It is recommended that the Finance Committee endorse the Quality of Life Criteria
established for the proposed investments and to receive and file this report as
presentedand forward the reportand presentation tothe next meeting of
Common Council as areceive and file.
EXECUTIVE SUMMARY
On March 25, 2021, the federal government proposed a one-time investment of
$2.2 billion that would help address infrastructure priorities in municipalities and
First Nations communities. The funds would flow through the federalGas Tax
Fund, a long-term, indexed source of funding for over 3,600 communities across
the country.
for municipalities in
2020-21 and it would provide much needed funding for communities of all sizes
to help reduce the risk of infrastructure projects being delayed or cancelled.
The federal Gas Tax Fund includes 18 different project categories, including
transit, water and wastewater, sport infrastructure, and roads. Communities can
use the funds immediately for priority projects, bank them for later use, pool the
dollars with other communities for shared infrastructure projects, or use them to
finance major infrastructure expenditures.
The City of Saint John is set to receive an estimatedamount of $4,656,597as part
of this one-timeinvestment. This report will provide an overview ofcapital
- 2 -
projects that are being proposed as part of this one-time funding for the 2022
General Fund Capital Budget.
PREVIOUS RESOLUTION
N/A
STRATEGIC ALIGNMENT
The list of 2022 Capital projects being proposed are in compliance with the Asset
Management Policy, Capital Budget Policy, and align with various City plans such
as Plan SJ, Play SJ, Central Peninsula Neighborhood Plan and Master Park Plans.
REPORT
The City of Saint John is set to receive an estimated amount of $4,656,597 as part
of this one-time investment from the Federal Government to address
infrastructure needs of Municipalities and First Nations. This funding will flow
through the Gas Tax program and will be subject to the same regulations under
this program. The program allows the flexibility to make strategic investments
across 18 different project categories.
public transit
wastewater infrastructure
drinking water
solid waste management
community energy systems
local roads and bridges
capacity building
highways
local and regional airports
short-line rail
short-sea shipping
disaster mitigation
broadband and connectivity
brownfield redevelopment
culture
tourism
sport
recreation
Over the past several years the City has focused on putting the right financial
policies in place, dealing with structural deficits and infrastructure deficits. Two
of the key polices that guide the capital investments are the Asset Management
Policy and Capital Budget Policy.
- 3 -
The Capital Budget Policy sets out the prioritization of capital projects.
1. Mandatory
2. Risk of Failure
3. Priority of Council
4. Positive Financial Impact
5. Discretionary
As well as the policy sets limits on the on how much Capital is renewal (85%) and
new investments (15%).
The asset management policy and plan has improved
assets, condition, risk of failure, impacts of failure and prioritizing of assets. One
key item that has been updated as part of the Asset Management Policy is adding
quality of life to the criteria.
Capital budgets over the past several years, based on how the policies are applied,
often pushes quality of life assets such as parks, playgrounds, sports fields, and
active transportation to the bottom based on criteria.
The City is receiving a one-time top up of the gas tax funding which offers a
fantastic opportunity to reinvest in our assets, with a particular focus on
investments that yield broad-based impact on our community. The estimated
$6,000,000 investment is being earmarked for quality of life assets, which is above
and beyond those investments through the regular General Fund Capital budget.
within this context, are those investments that fall within the responsibilities and
authority of local government that contribute to the wellness, livability, and
vibrancy of our community. Quality of life investments should seek to bring people
together, build connections and contribute to the enjoyment our residents
experience through municipal assets.
The City Manager and staff developed a criteria list in order to prioritize the assets
that needed to have the most focus on for this investment. The criteria were
established to ensure that projects adhere the Capital Budget Policy, Asset
Management principles and align the with the various plans the City has.
The Capital criteria established is as follows.
Must comply with approved Financial Policies
Subject to Council approval of Operating Budget
Focus on providing quality of life throughout entire City
- 4 -
Projects must be identified within an existing plan - Plan SJ, Play SJ,
Neighborhood Plan, Etc.
Projects guided by Asset Management info and criteria of 85% renewal/
15% new
Preferential treatment for projects that offers the greatest use for the
most people (diversity, access, engagement)
Consideration for projects that provide greatest growth return potential
Project completion by end of 2022
Welcoming community - project aligned with population/growth
strategies - i.e. Sense of belonging to the community
Staff has assembled an inventory of quality of life investments to support this
additional $6 million from gas tax, which not only uphold the above-mentioned
criteria, but also contribute to other important community considerations.
The proposed list was assembled in considering the importance of green space
and parks, especially in our ongoing efforts towards economic and community
recovery because of the public health pandemic. The staff recommendation also
ensuring that enhanced quality of life offerings can be experienced by those living
everywhere in the city.
Many of the projects selecte
regular capital budget, due to the limited funds and high demand of asset renewal.
While the projects may not have reached a regular capital budget in the
foreseeable future, all projects are identified in key long-term municipal plans and
strategies, which have already received the insight and engagement of the
community to qualify its importance.
Lastly, it is important to note that the proposed list also seeks to contribute to the
e quality of life of our residents, the vibrancy of our
neighborhoods and diverse recreational offerings all improves the lives of
quality of life enhancements outlined below are clearly within the sphere of
municipal authority and
towards population, employment and tax base growth.
Rockwood Park $1,800,000 - Rockwood Park, designated as regional park in Play
SJ, has undergone several phases as part of its Master Park Plan. It is being
recommended that Phase 3 be approved. This will see investments into Lake Drive
Bridge and Ponds, Interpretation Centre, Roadway and Trails.
Dominion Park - $600,000 Designated as a district park in Play SJ, this project
would be in addition to the $285,000 the City has earmarked for Dominion Park
- 5 -
rehabilitation and support
developed Master Plan.
Market Place West - $400,000 There is a significant need to rehabilitate existing
assets in this district park. Staff would also be seeking external funding partners
for funding to increase the capital investment. This investment is part of the most
current Master Park Plan and aligns with Play SJ.
Forest Hills Complex - $400,000 Forest Hills playground is a district playground
and aligns with Play SJ. The plan would be to upgrade and replace much of the
existing playground currently past its useful life.
Harbour Passage - $700,000 This budget proposed an extension of Harbour
Passage to Tin Can Beach. This investment aligns well with Play SJ, Move SJ, South
Central Peninsula Neighborhood Plan and with current and future development
opportunities underway.
Main Street North - $400,000 active
transportation options, this investment will create a protected bike lane on Main
Street North. This investment would align with Move SJ and there is an
expectation that cycling demand would be reduced on Harbour Passage.
Art and Culture - $100,000 The budget includes a proposed investment in arts
and culture to reco
most welcoming community in Atlantic Canada.
Loyalist Plaza - $500,000 As part of the Fundy Quay development underway,
Loyalist Plaza will see a complete makeover. Public consultation has been
undertaken for this project bringing forward ideas like installation of an Ice Pad as
an example. Final plans will be brought forward at a future meeting.
South Market Street - $250,000 This budget earmarks funding to convert South
Market Street to a pedestrian priority street in coordination with development
plans.
Various Greening/Branding/Beautification Investments - $350,000 There is a
need throughout the entire City undertake more beautification and greening
efforts. This would involve investing in creating grass medians, planting more
trees, creating more pedestrian bump outs and more branding opportunities.
Sporting Enhancements - $200,000 As the City continues to grow its diverse
population, there is a need to look at existing assets such fields and courts. These
assets need to be enhanced, supported or adjusted in order to support newer
recreational offerings, to ensure the City is providing sporting opportunities for all
members of the community.
- 6 -
Little River Reservoir- $50,000 There has been significant investments over
several years at this park as part of the Master Park Plan and Play SJ. An additional
$50,000 is being earmarked for various beautification investment at the park.
Design and Engineering - $250,000 This funding is for all the design and
engineering needed for the various projects.
Conclusion
Staff will present Finance Committee more details on specific projects once the
scope of the projects has been established. Some projects such as Main Street
North and Forest Hills will involve discussions with the Province in order to
proceed.
The list of projects being proposed fit within all the financial polices approved by
Council. They align with the various approved plans, population and growth
strategies of the City. Common Council, and Growth Committee, will be given an
opportunity to provide additional assessment of this list once Finance Committee
has completed its initial review of the funding envelop and the corresponding
policy considerations.
SERVICE AND FINANCIAL OUTCOMES
Funding for these projects will come from a combination of Gas Tax Funding and
City Funding and will form part of the overall 2022 General Fund Capital Budget.
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
The budget was established in collaboration with all service areas.
ATTACHMENTS
N/A
FINANCECOMMITTEEREPORT
Report DateJuly 16, 2021
Meeting DateJuly 22, 2021
Chairman Gary Sullivanand Members of Finance Committee
SUBJECT: May 2021 FinancialResults and Projections
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Finance Committee.
AUTHORIZATION
Primary AuthorCommissioner/Dept. HeadCity Manager
Craig LavigneKevin FudgeJohn Collin
RECOMMENDATION
Staff recommendsthe Finance Committee receive and file this report as
presented.
EXECUTIVE SUMMARY
The purpose of this report is to provide the Finance Committee with financial
results for the period ending May 31,2021 and to provide year end projectionsfor
the GeneralFund and Utility Fund Operating Budgets.
PREVIOUS RESOLUTION
N/A
STRATEGIC ALIGNMENT
The report alignswith Council'spriorityof being fiscally responsibleby ensuring
budgets are being managed within approved policiessuch as the budget
monitoring policyand the best value for tax dollarsare being achieved.
REPORT
The purpose of this report is to provide the Finance Committee with financial
results for the period ending May 31,2021 and to provide year end projections for
the GeneralFund and Utility Fund Operating Budgets.
This fiscalyearis the first year that the budget monitoring policy approved in 2020
comes into effect. The financial results in Appendix 1and 2breaks out each
service area into Wage and Benefits and Goods and Services. This will ensure that
- 2 -
money for wages and benefits is not used for overages in goods and services and
funds in goods and service are not used for overage in wages and benefits.
Based on the financial results presented all service areas there is surpluses in
wages and benefits as of May 2021 and all areas are anticipated to have surpluses
in wages and benefits for year end. The only exception is Utilities and
Infrastructure which is anticipated to have a minor variance. (See Appendix 1 and
Appendix 2)
Revenues General Fund
General Fund Revenues are currently at a $2,814,489 positive variance as of May
31 and are anticipated to have a positive variance of $6,415,381 by end of year.
The majority of the May variances relates to the following service areas;
Growth and Community Services ($110,857) majority of variance relates
to timing related to revenue recovery for programs. Revenues for
Dangerous Buildings Program, funding for Succeed and Stay and Local
Immigration will be recognized at year end.
Transportation and Environment Services ($690,801) variance is a
combination of parking revenue and fines still being impacted by COVID-
19 and Cyber Attack. Timing on sports field revenues and arena revenue
are causing part of the variance.
Strategic Services $3,604,602 the City received $3,668,373 from the
Province and Federal Government for the COVID Safe Restart Program,
and these funds were unbudgeted.
General Fund Revenues anticipated to have a positive various of $6,415,381 for
year end and the majority of the variance relates to the following;
Property Taxes and Unconditional Grant
P GAP Program cancelled resulting in $1,082,151 in additional
taxes
LNG Revenue there was no appeal therefor additional $2,123,953
in taxes
Unconditional Grant reduced by ($893,451) due to receiving LNG
revenue
Growth and Community Development $399,346 majority of variance
relates to additional revenues for Dangerous Building Program, funding for
Succeed and Stay and Local Immigration Programs.
Transportation and Environment Services ($1,212,297) Arena and Sports
fields anticipated to be $315,000 underbudget, parking revenues, transfer
- 3 -
from Parking Commission, parking fines are underbudget by
$796,400. Utility cuts anticipated to be underbudget by $100,000.
Strategic Services $4,958,103 the City received $3,668,373 from the
Province and Federal Government for the COVID Safe Restart Program as
well as additional $1,000,000 for insurance recovery for Cyber attack is
anticipated.
Expenditure Variance by Service Area
Growth and Community Services
May 2021 budget to actual is overbudget by ($836,784). The majority of the
variance is related to timing issues and budget input. The timing of external grants
for example, grants were all paid out by end of May but only 41.67% of the budget
expensed. Market Square is also over budget and is due to timing.
Year-end estimates are ($276,978) over budget. Dangerous Buildings Program is
anticipated to be ($93,328) overbudget due to timing, volume and complexity of
demolitions scheduled for 2021. Succeed and Stay and Local Immigration
anticipated to be ($92,292) overbudget due to timing of program delivery and new
program offerings.
These overages will be offset by additional revenue received for all these
programs. Revenues for Growth and Community anticipated to have $399,346
positive variance.
Transportation and Environmental Services
May 2021 budget to actual is underbudget by $3,414,030. This is related to
inaccurate budget allocations as well as delays in processing invoices.
Year-end estimates are anticipated to be $535,232 under budget. Positive
variance based on lower staffing costs. Easy winter operations resulting in less salt
use, less overtime, and fewer rentals for snow removal operations. Lower prices
for asphalt used for our pothole patching, overlay and other programs all
contribute to the positive variance estimates. Lower expenses will be largely offset
by lower revenues.
Protective Services
Fire and Rescue Services and EMO
May 2021 budget to actual is $524,217 under budget. Several 2021 programs,
training and initiatives have yet to reflected in the budget. Several personnel are
- 4 -
out on work on Worker Compensation or LTD which yields a surplus in the wages
and benefits.
Year-end estimates are anticipated to be $181,445 under budget. This is based on
when personnel on Worker Compensation or LTD return to work, the surplus in
Wages and Benefits is projected to be $202,601 by year end.
Subject to proposed initiatives being undertaken and completed by year end, the
current year end projections for goods and services is a shortfall of ($30,793). The
shortfall in goods and services is due partly to the impacts of additional internal
charges (e.g., software licensing, insurance, IRC Group facilities related consulting
services, etc.).
Street lighting is also included in Public Safety and is anticipated to be over budget
by $40,018 due to refurbishments of lighting poles.
Saint John Police/PSCC
May 2021 budget to actuals is $613,121 under budget. Wages and Benefits are
$380,298 positive year to date. Variance is due to vacancies, additional staff hired
later in the year and less overtime than budgeted.
Goods and services is related to vehicles budget and timing on expenditures.
Vehicle budget is $177,085 year to date with no year to date as of
May.
Overall year end estimates are anticipated to be $228,509 under budget. Wages
and benefits anticipated to have $337,468 positive variance due to vacancies,
additional staff hired later in the year and a retirement.
Good and services is anticipated to be over budget by ($108,959) and this variance
relates to additional cost anticipated for IT charges and support for 2021.
Utilities and Infrastructure Services
May 2021 budget to actuals is ($353,582) over budget and the majority of variance
is in goods and services. Facility management is the largest driver of the variance
($270,783). The variance relates to timing issues around billing out other
departments for work performed by Facilities. Expenses has been incurred but not
recovered.
Year-end estimates are anticipated to be ($185,114) over budget. Wages and
benefits are anticipated to be slightly overbudget due to staffing changes as part
of the reorganization. Facility Management and City Hall is anticipated to be
overbudget due to increase in engineering cost and building maintenance for City
Hall.
- 5 -
Stormwater will be overbudget for internal charges related to fleet services, fleet
fuel and computer changes that were unbudgeted due to splitting stormwater
into rural and urban as part of the realignment. This budgeting issue will be
corrected for 2022.
Strategic Services
May 2021 budget to actual expenditure is ($1,007,241) over budget. Wages and
benefits are underbudget due to various vacancies within Finance and
Supply Chain management. Information Technology is overbudget year to date
due to additional costs associated with the Cyber Attack and Liability Insurance is
over budget as insurance costs were more than budgeted and timing on matching
budget with expenditure.
Corporate Planning and Communication are underbudget year to date as
several expenditures have not been incurred as of May.
Overall year end estimates are anticipated to be ($949,974) over budget. Wages
and Benefits are underbudget due to various vacancies within Finance, IT and
Supply Chain management. Information Technology is overbudget year to date
due to additional costs associated with the Cyber Attack, however it is anticipated
many of these costs will be recovered through insurance. Liability Insurance is over
budget as insurance cost came in much higher than anticipated.
Corporate Services
May 2021 budget to actual expenditure is $211,705 under budget. Wages and
Benefits and under budget by $58,478. This is due to a management vacancy in
Human Resources, an HR Administrator in temporary assignment with Police
Commission and a temporary vacancy on Council for approximately 3.5 months.
Goods and services is under budget $153,227 and majority relates to timing issues
and budget input. Conferences, course registrations and travel costs have been
reduced since the beginning of COVID-19. These costs may start to increase as
restrictions are lifted. Consulting fees, management job evaluation, and possible
arbitration costs later in year. Disability management costs have decreased since
the beginning of COVID-19.
Year-end projections are anticipated to be $54,995 under budget. Wages and
benefits slightly underbudget due to vacancies and goods and service anticipated
to be under but due to disability management cost.
Other Charges
Other charges are overbudget by ($3,698,308) in May which is due to funding from
the COVID Safe Restart Program being transferred to reserves.
- 6 -
Year-end projection is anticipated to be over budget by ($4,738,524) which is due
to funding from the COVID Safe Restart Program being transferred to reserves and
additional revenue from P GAP adjustment be transferred to reserves to support
a tax reduction in 2022.
Saint John Water
Revenues
May 2021 budget to actuals is ($5,191,727) and the variance relates to
combination of billing delays around meter accounts and well as the budget
allocation for meter revenues.
Year-end estimates for revenues are anticipated to be $65,927 positive variance.
Flat rate billing is less than budgeted but other revenues are higher due to interest
charges and water certificate charges. There is also additional revenue for the
transfer from reserve for projects being done in the operating budget.
Expenditures
May 2021 budget to actual is $3,598,090 under budget. Wages and benefits are
underbudget significantly due to various staffing vacancies and timing of how the
casual work staff were budgeted.
Goods and services year to date has a significant positive variance and can be
attributed to timing issues around expenditures. Professional services,
engineering services, inspections, meter replacements, electricity, chemicals and
industrial water pumping are areas that have positive variance as of May. Many
of these budget items will be expended over next several months and throughout
the balance of the year as various projects, inspections, purchases and other
initiatives in the work plan get underway.
Year-end estimates are anticipated to be $159,777 under budget. Wages and
benefits are underbudgeted for year-end due to ongoing staffing vacancies.
Drinking water estimates for goods and services is $54,050 and will be on budget
despite unbudgeted expenditures related to ongoing legal issues and some new
software required due to the Cyber Attack. Under wastewater there is a small
variance ($7,460). There is capital work being done to lift stations that is causing
part of the variance; however, the offset will be a transfer from reserves to offset
these expenditures. ($200,000 included in Other Revenue)
Industrial Water is anticipated to be overbudget by ($161,856). Additional dam
works, large meter replacements and various watershed management projects
are driving this. Overages within Industrial group will be charged back to the
Industrial customers.
- 7 -
Projections are very preliminary, and many changes are guaranteed to occur
before the end of the year. The team will continue to find offsets within other
goods and services line items to ensure the Utility manages its budget to provide
the best overall value for ratepayers.
Conclusion
Overall, the General Fund is projected to be in a positive situation for year end.
There have been significant unbudgeted revenues that a creating a positive
variance and the decision for the use of the Safe Restart Funding and P GAP
adjustment has resolved with funding being transferred to reserves.
The Utility fund is projecting a minor surplus. Staff will continue to monitor the
expenditures and continue to mitigate overages throughout the year to ensure
the Utility is on budget.
It is very early in the year and the year-end projections will change the fiscal year
moves closer to end of year. Staff will be back to Finance Committee in October
with the most recent year to date results and year end estimates.
SERVICE AND FINANCIAL OUTCOMES
This report is aligned with Common approved Budget Monitoring Policy.
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
Input has been received from all service areas.
ATTACHMENTS
Appendix 1 May 2021 General Fund Financial Results and Projections
Appendix 2 May 2021 Utility Fund Financial Results and Projections
May 2021 Operating Results
Finance Committee –July 22, 2021
General and Utility Fund Operating
Results
Purpose of presentation is for Service Areas to give Finance
Committee a high-level overview on year-to-date financial results
and estimated year end projections.
Cyber attack had an impact on matching budgets with anticipated
expenditures and revenues.
Typically, budgets are entered in a fiscal year that will best match the
timing of expenditures and revenues.
2022 budgets had to be entered by Finance due to limited resources
and timing. Many of the budget line items were entered and spread
equally over 12 month. This will create a lot of timing issues as staff
present May budget results. Examples include,
Snow removal budget entered over 12 equal amounts for 2022 vs budgeting
for Jan-April and Oct-Dec
Liability Insurance –typically budgeted in one month vs 12 equal payments.
General Fund Revenues
May 2021
YTD YTD YTD
BudgetActualVariance
$$$
Revenues
Property Taxes 52,496,095 52,496,101 6
PILT Adjustment - - -
Equalization & Unconditional Grant 7,595,580 7,595,583 3
•
Growth & Community Development Services 1,146,360 1,035,503 (110,857)
May 2021 Operating Budget
•
May 2021 Operating Results
Transportation & Environment Services 1,996,190 1,305,389 (690,801)
Public Safety Services 921,305 967,275 45,970
Utilities & Infrastructure 138,345 103,911 (34,434)
Strategic Services 1,160,825 4,765,427 3,604,602
Total Revenues 65,454,70068,269,1892,814,489
General Fund Revenue
Variance Analysis
May 2021 Budget to Actuals YTD–$2,814,489
Growth and Community Services –majority of variance relates to timing
related to revenue recovery for programs. Revenues for Dangerous Buildings
Program, funding for Succeed and Stay and Local Immigration will be
recognized at year end.
Transportation and Environment Services –variance is a combination of
parking revenue and fines still being impacted by COVID-19 and Cyberattack.
Timing on sports field revenues and arena revenue is down.
Strategic Services –the City received $3,668,373 from the Province and
Federal Government for the COVID Safe Restart Program, and these funds
were unbudgeted.
General Fund Revenues
May 2021
2021YEYE
BudgetForecastVariance
$$$
Revenues
Property Taxes 125,990,634 129,196,736 3,206,102
PILT Adjustment - - -
Equalization & Unconditional Grant 18,229,402 17,335,951 (893,451)
Growth & Community Development Services 2,751,344 3,150,690 399,346
•
May 2021 Operating Budget
Transportation & Environment Services 4,790,950 3,578,653 (1,212,297)
•
May 2021 Operating Results
Public Safety Services 2,451,188 2,318,805 (132,383)
Utilities & Infrastructure 332,039 422,000 89,961
Strategic Services 2,786,000 7,744,103 4,958,103
Total Revenues 157,331,557163,746,9386,415,381
General Fund Revenue
Variance Analysis
Year end Projections -$6,415,381
Property Taxes and Unconditional Grant
P GAP Program cancelled –resulting in $1,082,151 in additional taxes
LNG Revenue –there was no appeal therefor additional $2,123,953 in taxes
Unconditional Grant –reduced by $893,451 due to receiving LNG revenue
Growth and Community Development –majority of variance relates to
additional revenues for Dangerous Building Program, funding for Succeed and
Stay and Local Immigration Programs.
Transportation and Environment Services –Arena and Sports fields
anticipated to be $315,000 underbudget, parking revenues, transfer from
parking commission, parking fines underbudget by $796,400. Utility cuts
anticipated to be underbudget by $100,000.
Strategic Services –the City received $3,668,373 from the Province and
Federal Government for the COVID Safe Restart Program as well as additional
$1,000,000 for insurance recovery for Cyber attack
Growth and Community Services
May 2021 May 2021 Year to Date
Operating BudgetOperating ResultsVariance
$1,950,534 $1,933,913 $16,621
Wages and Benefits
$4,515,500 $5,368,805$(853,405)
Good and Services
$6,446,034$7,302,818($836,784)
Total
Year End Operating Year End Operating Year End Variance
BudgetResults Projected
•
May 2021 Operating Budget
•
May 2021 Operating Results
$4,823,873$4,818,953$4,920
Wages and Benefits
$10,684,775$10,966,674($281,299)
Good and Services
$15,508,648$15,785,626($276,978)
Total
Growth and Community Services
Variance Analysis
May 2021 Budget to Actuals YTD–($836,784)
Majority relates to timing issues and budget input
Timing of disbursement of External Grants, budget only expensed 41.67%
Market Square –($420,317) timing on expense incurred vs budget
Year End Estimates –($276,978)
Dangerous Buildings Program anticipated to be ($93,328) overbudget due to
timing, volume and complexity of demolitions scheduled for 2021
Succeed and Stay and Local Immigration anticipated to be ($92,292)
overbudget due to timing of program delivery and new program offerings.
These overages will be offset by additional revenue received for all these
programs. Revenues for Growth and Community anticipated to have $399,346
positive variance.
Transportation and Environment Services
May 2021 May 2021 Year to Date
Operating BudgetOperating ResultsVariance
$6,267,079 $5,550,627$716,452
Wages and Benefits
$9,413,841 $6,716,263 $2,697,578
Good and Services
$15,680,290$12,266,890$3,414,030
Total
Year End Operating Year End Operating Year End Variance
BudgetResults Projected
•
May 2021 Operating Budget
•
May 2021 Operating Results
$15,498,986$15,213,283$285,703
Wages and Benefits
$22,948,035$22,698,506$249,529
Good and Services
$38,447,021$37,911,789$535,232
Total
Transportation and Environment Services
Variance Analysis
May 2021 Budget to Actuals–$3,414,030
Related to inaccurate budget allocations as well as delays in processing
invoices
Year to Date Estimates –$535,232
Positive variance based on lower staffing costs
Easy winter resulting in less salt use, less overtime and fewer rentals for snow
removal operations
Lower prices for asphalt used for our pothole patching, overlay and other
programs
Lower expenses will be largely offset by lower revenues
Public Safety Services
May 2021 May 2021 Year to Date
Operating BudgetOperating ResultsVariance
$17,803,360 $17,070,303$733,057
Wages and Benefits
$4,157,177$3,744,058$413,119
Good and Services
$21,960,537$20,814,361$1,146,176
Total
Year End Operating Year End Operating Year End Variance
BudgetResults Projected
•
May 2021 Operating Budget
•
May 2021 Operating Results
$44,785,174$44,248,239$536,935
Wages and Benefits
$9,777,922$9,943,820($165,898)
Good and Services
$54,563,096$54,192,059$371,037
Total
Public Safety Services
Fire & Rescue Services -Variance Analysis
May 2021 Budget to Actuals YTD–$501,910
Several 2021 programs and initiatives have yet to reflected in the budget.
Several personnel are out on work on Worker Compensation or LTD which
yields a surplus in the wages and benefits.
Year End Estimates –$171,808
Subject to when personnel on Worker Compensation or LTD return to work,
the surplus in Wages and Benefits is projected to be $202,601 by year end.
Subject to proposed initiatives being undertaken and completed by year end,
the current yearend projection for Goods and Services is shortfall of
($30,793).
The shortfall in Goods and Services is due partly to the impacts of additional
internal charges above budget (e.g., software licensing, insurance, IRC Group
facilities related consulting services, etc.).
Public Safety Services
Emergency Management -Variance Analysis
May 2021 Budget to Actuals YTD–$22,307
The proposed 2021 training initiatives have yet to start.
Computers were removed from the EOC, Sentinel licensing was cancelled, and
travel suspended (after the budget was approved).
Year End Estimates –$9,637
Barring no significant community incidents, the proposed re-fit of the EOC will
continue, reducing the project Goods and Service surplus to $12,771.
Note: Street Lighting is included in Public Safety and is anticipated to be over
budget by $40,018 due to additional refurbishment of lighting poles.
Public Safety Services
Saint John Police/PSCC -Variance Analysis
May 2021 Budget to Actuals YTD–$613,121
Wages and Benefits -$380,298 positive year to date. Variance due to
vacancies, additional staff hired later in the year and less overtime than
budgeted.
Goods and Services –Large portion related to vehicles budget and timing on
expenditure. Budget of 177,085 year to date with no expenditures year to
date as of May.
Year End Estimates –$228,509
Wage and Benefits -$337,468. Variance due to vacancies, additional staff
hired later in the year and retirement.
Good and Services –($108,959) –This variance relates to additional cost
anticipated for IT charges and support for 2021.
Utilities and Infrastructure Services
May 2021 May 2021 Year to Date
Operating BudgetOperating ResultsVariance
$1,142,535$1,125,898$16,637
Wages and Benefits
$1,430,796$1,801,015($370,219)
Good and Services
$2,573,331$2,926,913($353,582)
Total
Year End Operating Year End Operating Year End Variance
BudgetResults Projected
•
May 2021 Operating Budget
•
May 2021 Operating Results
$2,827,813$2,837,455($9,642)
Wages and Benefits
$2,772,691$2,948,163($175,472)
Good and Services
$5,600,504$5,785,618($185,114)
Total
Utilities and Infrastructure Services
Variance Analysis
May 2021 Budget to Actuals YTD–($353,582)
The majority of variance is in goods and services.
Facility management is the largest driver of the variance ($270,783). The
variance relates to timing issue around billing out other departments for work
performed by Facilities. Expense has been incurred but not recovered.
Year End Estimates –($185,114)
Wages and benefits are anticipated to be slightly overbudget due to staffing
changes as part of the reorganization.
Facility Management and City Hall is anticipated to be overbudget due to
increase in engineering cost and building maintenance for City Hall.
Stormwater will be overbudget for internal charges that relate to fleet
services, fleet fuel and computer changes that were unbudgeted due to
splitting stormwater into rural and urban as part of the realignment. This
budgeting issue will be corrected for 2022.
Strategic Services
May 2021 May 2021 Year to Date
Operating BudgetOperating ResultsVariance
$2,032,755$1,948,175$84,581
Wages and Benefits
$784,075$1,875,896($1,091,821)
Good and Services
$2,816,830$3,824,071($1,007,241)
Total
Year End Operating Year End Operating Year End Variance
BudgetResults Projected
•
May 2021 Operating Budget
•
May 2021 Operating Results
$5,030,639$4,912,856$117,783
Wages and Benefits
$3,363,221$4,430,979($1,067,758)
Good and Services
$8,393,860$9,343,834($949,974)
Total
StrategicServices
Variance Analysis
May 2021 Budget to Actuals YTD –($1,007,241)
Wages and Benefits are underbudget due to various vacancies within Finance and Supply
Chain management.
IT is overbudget year to date due to additional costs associated with the Cyber Attack
Liability Insurance is over budget as insurance cost was more than budgeted and timing on
matching budget with expenditure.
Corporate Planning and Communication are underbudget year to date as several
expenditures have not been incurred as of May.
Year End Estimates –($949,974)
Wages and Benefits are underbudget due to various vacancies within Finance, IT and
Supply Chain management.
IT is overbudget year to date due to additional costs associated with the Cyber Attack,
however it is anticipated many of these costs will be recovered through insurance.
Liability Insurance is over budget as insurance cost came in much higher than anticipated.
Corporate Services
May 2021 May 2021 Year to Date
Operating BudgetOperating ResultsVariance
$1,491,791$1,433,313$58,478
Wages and Benefits
$528,070$374,843$153,227
Good and Services
$2,019,861$1,808,156$211,705
Total
Year End Operating Year End Operating Year End Variance
BudgetResults Projected
•
May 2021 Operating Budget
•
May 2021 Operating Results
$3,693,950$3,687,653$6,297
Wages and Benefits
$1,202,098$1,153,400$48,698
Good and Services
$4,896,048$4,841,053$54,995
Total
Corporate Services
Variance Analysis
May 2021 Budget to Actuals YTD -$211,705
Wages and Benefits -$58,478
Management vacancy in Human Resources.
HR Administrator in temporary assignment with Police Commission.
Temporary vacancy on Council for approximately 3.5 months.
Goods and Services -$153,227
Majority relates to timing issues and budget input.
Conference/course registrations and travel costs have been reduced since the beginning of COVID-19. These costs
may start to increase as restrictions are lifted.
Consulting fees, Management Job Evaluation, and possible arbitration costs later in year.
Disability management costs have decreased since the beginning of COVID-19.
Year End Estimates -$54,995
Wages and Benefits -$6,297
Variance due to vacancies.
Goods and Services -$48,698
Disability management costs have decreased since beginning of COVID-19.
Other Charges
May 2021 May 2021 Year to Date
Operating BudgetOperating ResultsVariance
$11,663,624$15,361,632($3,698,308)
Good and Services
Year End Operating Year End Operating Year End Variance
BudgetResults Projected
$29,922,380$34,660,904($4,738,524)
Good and Services
•
May 2021 Operating Budget
•
May 2021 Operating Results
Funding from both the COVID Safe Restart Program and P Gap
adjustment will be transferred to reserves.
Saint John Water
Saint John Water
2021 Water & Sewerage
Operating Budget
May 2021
2021YTD YTD YTD YEYE
BudgetBudgetActualVarianceForecastVariance
$$$$$$
Revenues
Flat Rate Accounts22,530,000 11,265,000 11,141,538 (123,462)22,283,077 (246,923)
Meter Rate Accounts14,670,000 7,335,000 2,433,657 (4,901,343)14,640,000 (30,000)
Industrial Raw Water
Accounts5,973,000 1,991,000 1,873,813 (117,187)5,973,000 -
Fire Protection Levy2,500,000 1,041,665 1,041,665 -2,500,000 -
Storm Sewer Levy950,000 395,830 395,835 5 950,000 -
Other Revenues924,000 328,740 279,000 (49,740)1,266,850 342,850
Previous Year's Surplus375,000 156,250 156,250 -375,000 -
Total Revenues47,922,000 22,513,485 17,321,758 (5,191,727)47,987,927 65,927
Saint John Water
Revenue Variance Analysis
May 2021 Budget to Actuals YTD–($5,191,727)
Variance is due to a combination of billing delays around meter accounts as
well as the budget allocation.
Meter billing should be back on track by end of July.
Year End Estimates –$65,927
Flat rate billings are down due less customer on flat rate than budgeted.
Other revenue trending up due to more interest charges and water
certificate charges due increase in home sales.
Other revenue include transfer from Reserves for capital projects done in
the operating budget.
Saint John Water
May 2021 May 2021 Year to Date
Operating BudgetOperating ResultsVariance
$3,911,318$3,514,076$397,242
Wages and Benefits
$13,897,144$10,696,296$3,200,848
Good and Services
$17,808,462$14,210,372$3,598,090
Total
Year End Operating Year End Operating Year End Variance
BudgetResults Projected
•
May 2021 Operating Budget
•
May 2021 Operating Results
$9,663,899$9,388,422$275,477
Wages and Benefits
$38,258,101$38,373,801($115,700)
Good and Services
$47,922,000$47,762,223$159,777
Total
Saint John Water
Variance Analysis
May 2021 Budget to Actuals YTD–$3,598,090
Wages and Benefits is underbudget significantly due to various staffing
vacancies and timing of how the casual work staff were budgeted.
Goods and Services year to date has a significant positive variance are can be
attributed to timing issues around expenditures such as;
Professional services
Engineering services
Inspections
Meter Replacement
Electricity and Chemicals
Industrial Water Pumping
Many of these budget items will be expended over next several months and
throughout balance of the year as various projects, inspections, purchases
and other initiatives in the work plan get underway.
Saint John Water
Variance Analysis
Year End Estimates –$159,777
Wages and Benefits is under budget for year end due to ongoing staffing vacancies.
Early year end projections show the Utility under budget on potable goods and
services
Drinking Water Service –$54,050 –Staff continue to mitigate unbudgeted items related
to ongoing legal issues and some new software required due to Cyber Attack and
anticipate being under budget.
Wastewater Service–($7,460) there is capital work being done to lift stations that is
causing some of the slight variance; however, the offset will be a transfer from Reserves
to offset these expenditures. ($200,000 included in Other Revenue)
Industrial Water is anticipated to be overbudget by ($161,856). Additional dam
works, large meter replacement and various watershed management projects are
driving this. Overages within Industrial group will be charged back to the Industrial
customers.
Projections are very preliminary, and many changes are guaranteed to occur
before the end of the year. The team will continue to find offsets within other
goods and services line items to ensure the Utility manages its budget to provide
the best overall value for ratepayers.
Conclusion
•Staff recommends a receive and file
•Questions?
The City of Saint John
2021 General Fund Operating Budget
May 2021
2021YTD YTD YTD YEYE
BudgetBudgetActualVarianceForecastVariance
$$$$$$
Revenues
Property Taxes 125,990,634 52,496,095 52,496,101 6 129,196,736 3,206,102
PILT Adjustment - - - - - -
Equalization & Unconditional Grant 18,229,402 7,595,580 7,595,583 3 17,335,951 (893,451)
Growth & Community Development Services 2,751,344 1,146,360 1,035,503 (110,857) 3,150,690 399,346
Transportation & Environment Services 4,790,950 1,996,190 1,305,389 (690,801) 3,578,653 (1,212,297)
Public Safety Services 2,451,188 921,305 967,275 45,970 2,318,805 (132,383)
Utilities & Infrastructure 332,039 138,345 103,911 (34,434) 422,000 89,961
Strategic Services 2,786,000 1,160,825 4,765,427 3,604,602 7,744,103 4,958,103
Total Revenues 1 57,331,557 6 5,454,700 6 8,269,189 2 ,814,489 1 63,746,938 6 ,415,381
Expenditures
Growth & Community Development Services 15,508,648 6,466,034 7,302,818 (836,784) 15,785,626 (276,978)
Transportation & Environment Services 38,447,021 15,680,920 12,266,890 3,414,030 37,911,789 535,232
Public Safety Services 54,563,096 21,960,537 20,814,361 1,146,176 54,192,059 371,037
Utilities & Infrastructure 5,600,504 2,573,331 2,926,913 (353,582) 5,785,618 (185,114)
Strategic Services 8,393,860 2,816,830 3,824,071 (1,007,241) 9,343,834 (949,974)
Corporate Services 4,896,048 2,019,861 1,808,156 211,705 4,841,053 54,995
Other Charges 29,922,380 11,663,324 15,361,632 (3,698,308) 34,660,904 (4,738,524)
Total Expenditures 1 57,331,557 6 3,180,837 6 4,304,840 ( 1,124,003) 1 62,520,884 ( 5,189,327)
Surplus (Deficit) - 2 ,273,863 3 ,964,348 1 ,690,485 1 ,226,054 1 ,226,054
1
City of Saint John Service Areas
Salaries and Goods & Services
May 2021
2021YTD YTD YTD YEYE
BudgetBudgetActualVarianceForecastVariance
$$$$$$
Growth & Community Development Services
Salaries and Benefits 4,823,873 1,950,534 1,933,913 16,621 4,818,953 4,920
Goods & Services 10,684,775 4,515,500 5,368,905 (853,405) 10,966,674 (281,899)
TOTAL 1 5,508,648 6 ,466,034 7 ,302,818 ( 836,784) 1 5,785,626 ( 276,978)
Transportation & Environment Services
Salaries and Benefits 15,498,986 6,267,079 5,550,627 716,452 15,213,283 285,703
Goods & Services 22,948,035 9,413,841 6,716,263 2,697,578 22,698,506 249,529
TOTAL 3 8,447,021 1 5,680,920 1 2,266,890 3 ,414,030 3 7,911,789 5 35,232
Public Safety Services
Salaries and Benefits 44,785,174 17,803,360 17,070,303 733,057 44,248,239 536,935
Goods & Services 9,777,922 4,157,177 3,744,058 413,119 9,943,820 (165,898)
TOTAL 5 4,563,096 2 1,960,537 2 0,814,361 1 ,146,176 5 4,192,059 3 71,037
Utilities & Infrastructure Services
Salaries and Benefits 2,827,813 1,142,535 1,125,898 16,637 2,837,455 (9,642)
Goods & Services 2,772,691 1,430,796 1,801,015 (370,219) 2,948,163 (175,472)
TOTAL 5 ,600,504 2 ,573,331 2 ,926,913 ( 353,582) 5 ,785,618 ( 185,114)
Strategic Services
Salaries and Benefits 5,030,639 2,032,755 1,948,175 84,581 4,912,856 117,783
Goods & Services 3,363,221 784,075 1,875,896 (1,091,821) 4,430,979 (1,067,758)
TOTAL 8 ,393,860 2 ,816,830 3 ,824,071 ( 1,007,241) 9 ,343,834 ( 949,974)
Corporate Services
Salaries and Benefits 3,693,950 1,491,791 1,433,313 58,478 3,687,653 6,297
Goods & Services 1,202,098 528,070 374,843 153,227 1,153,400 48,698
TOTAL 4 ,896,048 2 ,019,861 1 ,808,156 2 11,705 4 ,841,053 5 4,995
Other Charges
Goods & Services 29,922,380 11,663,324 15,361,632 (3,698,308) 34,660,904 (4,738,524)
2 9,922,380 1 1,663,324 1 5,361,632 ( 3,698,308) 3 4,660,904 ( 4,738,524)
TOTAL EXPENDITURES 1 57,331,557 6 3,180,837 6 4,304,840 ( 1,124,003) 1 62,520,884 ( 5,189,327)
2
The City of Saint John
2021 General Fund Operating Budget
May 2021
2021YTD YTD YTD YEYE
BudgetBudgetActualVarianceForecast Variance
Revenues
Property Taxes 125,990,634 52,496,095 52,496,101 6 129,196,736 3,206,102
Equalization & Unconditional Grant 18,229,402 7,595,580 7,595,583 3 17,335,951 (893,451)
Growth & Community Development Services 2,751,344 1,146,360 1,035,503 (110,857) 3,150,690 399,346
Transportation & Environment Services 4,790,950 1,996,190 1,305,389 (690,801) 3,578,653 (1,212,297)
Public Safety Services 2,451,188 921,305 967,275 45,970 2,318,805 (132,383)
Utilities & Infrastructure 332,039 138,345 103,911 (34,434) 422,000 89,961
Strategic Services 2,786,000 1,160,825 4,765,427 3,604,602 7,744,103 4,958,103
Total Revenues 1 57,331,557 6 5,454,700 6 8,269,189 2 ,814,489 1 63,746,938 6 ,415,381
Expenditures
Growth & Community Development Services
Growth & Community Planning Services 1,612,509 656,187 565,519 90,668 1,617,105 (4,596)
Development Services 102,884 42,855 - 42,855 96,784 6,100
Development Engineering 362,645 147,756 192,348 (44,592) 364,407 (1,762)
Community Development 473,101 191,640 187,225 4,415 484,197 (11,096)
Animal Control 91,244 38,015 38,530 (515) 91,244 -
Dangerous and Vacant Building Program 472,032 194,151 258,860 (64,709) 565,360 (93,328)
Minimum Property Standards 297,895 120,628 105,296 15,332 296,286 1,609
Heritage Conservation Service 195,630 80,233 41,000 39,233 193,333 2,297
Cultural Affairs 126,031 58,779 53,793 4,986 127,909 (1,878)
Other By-Laws 425,278 173,214 168,006 5,208 421,540 3,738
Permitting & Inspection Services 1,040,806 421,652 409,969 11,683 1,031,001 9,805
Regional Economic Development Agency 2,175,000 906,250 846,397 59,853 2,173,000 2,000
Market Square 2,250,000 937,500 1,357,817 (420,317) 2,250,000 -
Saint John Trade & Convention Centre 572,270 238,445 142,561 95,884 572,270 -
Imperial Theatre 344,165 143,400 166,853 (23,453) 344,165 -
Saint John Aquatic Centre 400,000 166,665 460,581 (293,916) 450,567 (50,567)
Saint John Arts Centre 152,920 63,715 76,463 (12,748) 152,920 -
TD Station 564,810 235,335 282,190 (46,855) 564,810 -
Library 472,892 197,672 197,652 20 472,892 -
City Market 1,047,824 459,557 394,943 64,614 1,067,211 (19,387)
Arts & Culture Board 70,000 29,165 35,650 (6,485) 70,000 -
Public Art Maintenance & Repair 16,000 6,665 - 6,665 16,000
-
Remembrance Day 1,500 625 - 625 1,500 -
New Year/Canada Day Celebrations 15,000 6,250 - 6,250 15,000
-
PRO Kids 19,163 7,970 760 7,210 15,464 3,699
Succeed & Stay 205,863 84,757 51,494 33,263 249,803 (43,940)
Local Immigration Partnership 89,863 37,425 38,348 (923) 138,615 (48,752)
Carleton Community Center 182,700 76,125 180,000 (103,875) 180,000 2,700
Loch Lomond Community Center 45,000 18,750 45,000 (26,250) 45,000 -
North End Community Center 169,589 70,660 166,876 (96,216) 166,876 2,713
Recreation Programming 544,953 247,618 154,864 92,754 571,451 (26,498)
Neighbourhood Development 152,000 63,330 152,000 (88,670) 152,000 -
3
The City of Saint John
2021 General Fund Operating Budget
May 2021
2021YTD YTD YTDYEYE
BudgetBudgetActualVarianceForecastVariance
$$$$$$
YMCA - Contracted Services 137,661 57,355 149,560 (92,205) 149,560 (11,899)
Boys and Girls Club - Contracted Services 139,950 58,310 137,883 (79,573) 137,887 2,063
Unspecified Grants 184,000 76,665 175,350 (98,685) 184,000 -
Lifeguards 181,000 75,415 - 75,415 181,000 -
Play SJ 15,000 6,250 - 6,250 15,000 -
Lord Beaverbrook Rink 159,470 69,050 69,030 20 159,470 -
Total Growth & Community Development Services 1 5,508,648 6 ,466,034 7 ,302,818 ( 836,784) 1 5,785,626 ( 276,978)
Public Safety Services
Fire Rescue and Suppression Service 22,124,187 9,080,291 8,595,230 485,061 21,953,373 170,814
Fire Training 1,000 415 - 415 1,000 -
Technical Rescue Response 46,256 19,185 23,421 (4,236) 53,072 (6,816)
Hazardous Materials 72,626 30,454 31,855 (1,401) 78,245 (5,619)
Fire Prevention 856,920 347,195 328,657 18,538 845,916 11,004
Fire Investigation 61,647 25,665 22,131 3,534 59,221 2,426
Emergency Management Services 341,535 138,883 116,576 22,307 331,898 9,637
Water Supply and Hydrants 2,500,000 1,041,665 1,041,665 - 2,500,000 -
Public Safety Communications Centre 2,505,681 1,016,095 1,034,568 (18,473) 2,616,384 (110,703)
Street Lighting 959,982 399,990 391,152 8,838 1,000,000 (40,018)
Police Adminstration 1,828,082 748,141 610,889 137,252 1,687,505 140,577
Criminal Investigations 4,237,272 1,688,409 1,691,381 (2,972) 4,556,144 (318,872)
Police Commission 112,050 44,058 38,461 5,597 117,956 (5,906)
Automotive Equipment 1,009,834 452,600 290,851 161,749 1,027,575 (17,741)
Support Services 1,972,848 753,074 684,113 68,961 1,955,910 16,938
Dentention 174,000 70,106 54,203 15,903 175,700 (1,700)
Police Operations 14,815,048 5,710,890 5,467,506 243,384 14,288,633 526,415
Stations and Buildings 944,128 393,421 391,701 1,720 943,527 601
Total Public Safety Services 5 4,563,096 2 1,960,537 2 0,814,361 1 ,146,176 5 4,192,059 3 71,037
Transportation & Environment Services
Snow Control Streets 5,327,402 2,236,073 1,755,710 480,363 4,897,419 429,983
Street Cleaning 1,671,894 686,976 554,854 132,122 1,584,438 87,456
Utility Cuts 710,263 293,587 184,681 108,906 628,508 81,755
Street Services - Surface Maintenance 8,448,368 3,510,596 1,711,856 1,798,740 8,367,969 80,399
Snow Control Sidewalk 910,718 383,483 394,979 (11,496) 882,704 28,014
Sidewalk Maintenance 580,965 238,026 216,637 21,389 617,838 (36,873)
Pedestrian & Traffic Management Service 1,979,926 820,954 806,579 14,375 1,998,402 (18,476)
Stormwater Management - - - 3,298 3,298 - -
Solid Waste Management 3,759,606 1,564,771 1,519,834 44,937 3,853,169 (93,563)
Regional Services Commission 20,000 8,330 14,466 (6,136) 20,000 -
Landscape - Parks & Open Spaces 2,047,995 857,070 516,689 340,381 2,050,125 (2,130)
Rockwood Park 407,788 204,007 131,726 72,281 416,504 (8,716)
Urban Forestry 313,445 127,744 63,775 63,969 317,648 (4,203)
Saint John Horticultural Association 40,000 16,665 40,000 (23,335) 40,000
-
Arena Operation & Maintenance 1,168,546 490,371 455,728 34,643 1,187,624 (19,078)
Sportsfield Operation & Maintenance 1,195,592 506,854 374,639 132,215 1,226,718 (31,126)
Other Facilities Operation & Maintenance 406,222 178,254 104,226 74,028 408,718 (2,496)
Parking Administration 581,470 241,502 144,224 97,278 500,241 81,229
Transit Debt 1,921,195 405,938 405,938 (0) 1,921,195 -
Transit Subsidy 5,044,787 2,101,990 2,102,001 (11) 5,044,787 -
Fleet Operations - - 10,374 20,465 (30,839) - -
4
The City of Saint John
2021 General Fund Operating Budget
May 2021
2021YTD YTD YEYE
BudgetBudgetActualForecastVariance
$$$$$
Fleet Fuel - - 2,632 (2,632) - -
Fleet Pooled Vehicles - 3,844 17,083 (13,239) - -
Fleet Stockroom 219,494 89,341 108,739 (19,398) 219,994 (500)
Stormwater Rural 1,691,345 724,918 622,726 102,192 1,727,787 (36,442)
Total Transportation & Environment Services 3 8,447,021 1 5,680,920 1 2,266,890 3 ,414,030 3 7,911,789 5 35,232
Utilities & Infrastructure
Engineering 914,136 382,690 305,008 77,682 925,333 (11,197)
Carpenter Shop 324,231 128,583 230,231 (101,648) 326,543 (2,312)
Facilities Management 1,408,663 595,121 883,263 (288,142) 1,453,503 (44,840)
City Hall Building 1,014,587 423,651 444,928 (21,277) 1,062,475 (47,888)
Police Headquarters - 244,310 268,574 (24,264) - -
GIS 376,224 153,255 116,234 37,021 369,766 6,458
Stockroom 269,413 109,286 73,638 35,648 273,413 (4,000)
Stormwater Urban 1,293,250 536,435 605,038 (68,603) 1,374,585 (81,335)
Total Utilities & Infrastructure 5 ,600,504 2 ,573,331 2 ,926,913 ( 353,582) 5 ,785,618 ( 185,114)
Strategic Services
Finance 1,176,140 407,960 374,511 33,449 1,091,004 85,136
Assessment 1,369,310 - - - 1,392,394 (23,084)
Supply Chain Management 399,446 162,284 115,990 46,295 334,491 64,955
Information Technology 3,073,774 1,276,875 2,093,419 (816,544) 4,040,975 (967,201)
Corporate Planning 311,448 127,114 86,649 40,465 300,903 10,545
Corporate Communications 573,001 233,300 180,511 52,789 573,001 -
Insurance 272,932 110,621 114,915 (4,294) 275,137 (2,205)
Liability Insurance 340,000 141,665 457,480 (315,815) 457,480 (117,480)
Customer Service 877,809 357,011 400,597 (43,586) 878,450 (641)
Total Strategic Services 8 ,393,860 2 ,816,830 3 ,824,071 ( 1,007,241) 9 ,343,834 ( 949,974)
Corporate Services
City Manager's Office 625,173 256,243 185,177 71,066 613,324 11,849
Mayor's Office 216,333 88,352 69,014 19,338 212,113 4,220
Common Council 519,902 211,949 233,518 (21,569) 526,822 (6,920)
Common Clerk 594,499 240,997 230,515 10,483 602,150 (7,651)
Human Resources 1,826,083 742,849 643,805 99,044 1,823,283 2,800
Legal Department 936,521 380,082 353,585 26,497 898,336 38,185
Real Estate 177,537 99,389 92,542 6,847 165,025 12,512
Total Corporate Services 4 ,896,048 2 ,019,861 1 ,808,156 2 11,705 4 ,841,053 5 4,995
Other Charges
Fiscal Charges 15,959,925 6,381,174 6,303,828 77,346 15,929,925 30,000
Deficit 2nd Previous Year 214,971 89,570 93,890 (4,320) 214,971 -
Landfill Closure 300,000 300,000 300,000 - 300,000 -
Special Pension Contributions 8,875,000 3,413,415 3,508,016 (94,601) 8,875,000 -
Long-Term Disability 550,000 229,165 229,165 - 550,000 -
Restructuring - - 17,357 (17,357) 18,000 (18,000)
Reserves 1,022,484 - 3,668,373 (3,668,373) 5,773,008 (4,750,524)
Other Charges - - (8,997) 8,997 - -
Capital from Operating 3,000,000 1,250,000 1,250,000 - 3,000,000 -
Total Other Charges 2 9,922,380 1 1,663,324 1 5,361,632 ( 3,698,308) 3 4,660,904 ( 4,738,524)
Total Expenditures 1 57,331,557 6 3,180,837 6 4,304,840 ( 1,124,003) 1 62,520,884 ( 5,189,327)
Surplus (Deficit) - 2 ,273,863 3 ,964,348 1 ,690,485 1 ,226,054 1 ,226,054
5
Saint John Water
2021 Water & Sewerage Operating Budget
May 2021
2021YTD YTD YTD YEYE
BudgetBudgetActualVarianceForecastVariance
$$$$$$
Revenues
Flat Rate Accounts 22,530,000 11,265,000 11,141,538 (123,462) 22,283,077 (246,923)
Meter Rate Accounts 14,670,000 7,335,000 2,433,657 (4,901,343) 14,640,000 (30,000)
Industrial Raw Water Accounts 5,973,000 1,991,000 1,873,813 (117,187) 5,973,000 -
Fire Protection Levy 2,500,000 1,041,665 1,041,665 - 2,500,000 -
Storm Sewer Levy 950,000 395,830 395,835 5 950,000 -
Other Revenues 924,000 328,740 279,000 (49,740) 1,266,850 342,850
Previous Year's Surplus 375,000 156,250 156,250 - 375,000 -
Total Revenues 47,922,000 22,513,485 17,321,758 (5,191,727) 47,987,927 65,927
Expenditures
Drinking Water Service 24,137,500 9,130,130 7,340,008 1,790,122 23,975,065 162,435
Wastewater Service 17,091,500 6,710,487 6,045,484 665,003 16,971,262 120,238
Infrastructure Management 720,000 293,927 253,392 40,535 716,035 3,965
Industrial Water Service 5,973,000 1,673,918 571,488 1,102,430 6,099,861 (126,861)
Total Expenditures 47,922,000 17,808,462 14,210,372 3,598,090 47,762,223 159,777
Surplus (Deficit) - 4,705,023 3,111,386 1,593,637 225,704 225,704
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Saint John Water
Salaries and Goods & Services
May 2021
Drinking Water Service
Wages and Benefits
3,941,884 1,596,179 1,465,384 130,795 3,833,499 108,385
Goods & Services
20,195,616 7,533,951 5,874,624 1,659,327 20,141,566 54,050
Total
2 4,137,500 9 ,130,130 7 ,340,008 1 ,790,122 2 3,975,065 1 62,435
Wastewater Service
Wages and Benefits
4,174,435 1,689,675 1,520,482 169,193 4,046,737 127,698
Goods & Services
12,917,065 5,020,812 4,525,002 495,810 12,924,525 (7,460)
Total
1 7,091,500 6 ,710,487 6 ,045,484 6 65,003 1 6,971,262 1 20,238
Infrastructure Management
Wages and Benefits
501,767 202,826 192,331 10,495 497,368 4,399
Goods & Services
218,233 91,101 61,062 30,039 218,667 (434)
Total
7 20,000 2 93,927 2 53,392 4 0,535 7 16,035 3 ,965
Industrial Water Service
Wages and Benefits
1,045,813 422,638 335,880 86,758 1,010,818 34,995
Goods & Services
4,927,187 1,251,280 235,608 1,015,672 5,089,043 (161,856)
Total
5 ,973,000 1 ,673,918 5 71,488 1 ,102,430 6 ,099,861 ( 126,861)
TOTAL EXPENDITURES
4 7,922,000 1 7,808,462 1 4,210,372 3 ,598,090 4 7,762,223 1 59,777
Ћ
Saint John Water
2021 Water & Sewerage Operating Budget
2021YTD YTD YTD YEYE
BudgetBudgetActualVarianceForecastVariance
Revenues
Flat Rate Accounts 22,530,000 11,265,000 11,141,538 (123,462) 22,283,077 (246,923)
Meter Rate Accounts 14,670,000 7,335,000 2,433,657 (4,901,343) 14,640,000 (30,000)
Industrial Raw Water Accounts 5,973,000 1,991,000 1,873,813 (117,187) 5,973,000 -
Fire Protection Levy 2,500,000 1,041,665 1,041,665 - 2,500,000 -
Storm Sewer Levy 950,000 395,830 395,835 5 950,000 -
Other Revenues 924,000 328,740 279,000 (49,740) 1,266,850 342,850
Previous Year's Surplus 375,000 156,250 156,250 - 375,000 -
Total Revenues 47,922,000 22,513,485 17,321,758 (5,191,727) 47,987,927 65,927
Expenditures
Drinking Water Service
Watershed Management 360,000 157,551 144,222 13,329 626,700 (266,700)
Water Treatment 8,381,000 3,574,685 2,652,415 922,270 8,067,140 313,860
Water Pumping & Storage 1,201,000 509,506 533,789 (24,283) 1,165,151 35,849
Transmission & Distribution 4,790,000 1,987,998 1,524,892 463,106 4,693,928 96,072
Customer Metering 694,000 286,150 233,312 52,838 712,854 (18,854)
Internal Charges 467,500 194,790 168,467 26,323 467,500 -
Other Charges 605,000 232,687 239,899 (7,212) 617,000 (12,000)
Debt Servicing 3,978,000 661,348 661,348 0 3,963,793 14,207
Transfer to Operating Reserve 825,000 343,750 - 343,750 825,000 -
Capital from Operating 2,836,000 1,181,665 1,181,665 - 2,836,000 -
Total Drinking Water Service 24,137,500 9,130,130 7,340,008 1,790,122 23,975,065 162,435
Wastewater Service
Wasterwater Pumping 2,927,000 1,250,727 1,035,087 215,640 2,912,285 14,715
Wastewater Collection 3,078,000 1,288,769 1,029,811 258,958 3,050,705 27,295
Wastewater Treatment 4,758,000 2,077,242 1,905,823 171,419 4,667,772 90,228
Internal Charges 467,500 194,790 168,467 26,323 467,500 -
Other Charges 605,000 232,687 240,025 (7,338) 617,000 (12,000)
Debt Servicing 3,291,000 847,522 847,521 1 3,291,000 -
Capital from Operating 1,965,000 818,750 818,750 - 1,965,000 -
Total Wastewater Services 17,091,500 6,710,487 6,045,484 665,003 16,971,262 120,238
Infrastrucutre Management
Engineering Services 720,000 293,927 253,392 40,535 716,035 3,965
Total Infrastructure Management 720,000 293,927 253,392 40,535 716,035 3,965
Industrial Water Service
Watershed Management 584,000 244,843 120,646 124,197 633,437 (49,437)
Water Pumping & Transmission 1,806,000 750,419 494,185 256,234 1,836,656 (30,656)
Customer Metering 116,000 47,826 33,243 14,583 162,767 (46,767)
Debt Servicing 1,953,000 - - - 1,953,000 -
Transfer to Capital Reserves 837,000 348,750 - 348,750 837,000 -
Transfer to Operating Reserve 409,000 170,415 (76,586) 247,001 409,000 -
Capital from Operating 268,000 111,665 - 111,665 268,000 -
Total Industrial Water Service 5,973,000 1,673,918 571,488 1,102,430 6,099,861 (126,861)
Administration
Administration - - 27 (27) - -
- - 27 - 27 - -
Total Expenditures 47,922,000 17,808,462 14,210,399 3,598,063 47,762,223 159,777
Surplus (Deficit) - 4,705,023 3,111,359 1,593,664 225,704 225,704
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