Feb 17,2015 Finance Committee

Finance Committee
 
Agenda                Minutes
 
 
Finance Committee - 1 - February 17 and March 3, 2015
 
2.1 Minutes
 
FC15/020
Moved, seconded and CARRIED
THAT the minutes of the Finance Committee meeting held on Tuesday, February 3, 2015 be adopted.
 
4.1 Operating Budget Deliberations
 
Staff provided an overview of the 2015 to 2019 operating budget process, noting where the process currently stands and where it is headed. Discussion ensued with regard to the proposed Police Budget exceeding the recommended 0.36% increase at a level of 0.99% and what would likely happen if the committee directed the Police Board to reduce it to 0.36%.

The Police Chief noted that such a reduction would mean a reduction of members in order to meet the lower rate. Discussion ensued with regard to concerns over the possible loss of significant revenue streams and whether a stabilization reserve should be created to address that uncertainty.

FC15/021
Moved, seconded THAT,
given there is some uncertainty around the future use of significant revenue generating properties, the City create a Stabilization Reserve to transfer funds to, in order to mitigate the anticipated future revenue loss risk;
AND THAT the City transfer any growth revenues in excess of budgeted growth revenues starting in 2014 to the Stabilization Reserve to be used to mitigate the impact of future lost revenues.
 
FC15/022
Moved, seconded, and DEFEATED
THAT the foregoing motion be amended by adding the following clause:
AND THAT a specific line item be included in the tax bill adding a fixed portion of revenues to the stabilization reserve in anticipation of the closure of Burrard Thermal.
(Voting against: Councillors Dilworth, Glumac, Junker, Lahti, Royer, and Mayor Clay)

The question on the main motion was put and CARRIED.

Discussion ensued with regard to a recommendation by an external consultant regarding the immediate need for additional facilities resources.

Discussion ensued with regard to considerations around the existing WCB Compliance Reserve.

FC15/023
Moved, seconded, and CARRIED
THAT the City rename the WCB Compliance Reserve to OH&S/WCB Reserve;
AND THAT the Reserve be repurposed to include transfers of any external financial incentives received from COR WCB audits and any surplus related to specialized employee assessments to the Reserve, and funds be used to smooth out fluctuations in the area of specialized employee assessment and/or expand OH&S programs.

The Committee discussed considerations relating to the HR Recruitment Reserve.

FC15/024
Moved, seconded, and CARRIED
THAT the City create an HR Recruitment Reserve to address fluctuations in annual recruitment expenditures;
AND THAT any surplus related to annual recruitments be transferred to the Reserve.

Discussion ensued with regard to consideration of the City’s previous practice of making annual purchases of art.

The Committee discussed consideration of building the Finance Internal Audit program into the base budget. Discussion ensued with regard to the fleet review that is currently under way, which could have a potential tax impact following the April 7, 2015 presentation to the Finance Committee.

Discussion ensued with regard to giving consideration to creating a Police Recruitment Reserve.

FC15/025
Moved, seconded, and CARRIED
THAT the City create a Police Recruitment Reserve to address fluctuations in annual recruitment expenditures;
AND THAT any surplus related to annual recruitments be transferred to the Police Recruitment Reserve.

Discussion ensued with regard to consideration of the creation of a Police Major Crime Reserve with no immediate tax impact.

FC15/026
Moved, seconded, and CARRIED
THAT the City create a Police Major Crime Reserve to address fluctuations in major crime related expenditures;
AND THAT any surplus related to the Major Crime Cost Centre be transferred to the Police Major Crime Reserve.

The Committee discussed the Asset Management Investment Plan and the effect it may have on the Five Year Financial Plan.

FC15/027
Moved, seconded, and CARRIED
THAT the City reinstate the annual purchase of art in the amount of $923 to the base operating budget in 2015.
(Voting against: Mayor Clay and Councillor Lahti)
 
FC15/028
Moved, seconded, and CARRIED
THAT $169,000 be added to the 2015 base operating Financial Plan, $64,000 to fund 1 FTE Building Service Worker, and $105,000 to fund 1 FTE Building Maintenance Technician, funded from taxation.
 
FC15/029
Moved, seconded and CARRIED
THAT staff be directed to prepare a 2015 Financial Plan presentation for the purposes of public consultation, including the March 5, 2015 Town Hall Meeting, which includes 2015 tax increases of 1.67% for General Government, 0.99% for the Police Board, and 1.0% for the Asset Levy;
AND THAT the 2015 budget impacts be flowed through and reflected in submitted budgets for years 2016 to 2019 for presentation and public consultation.
 
FC15/030
Moved, seconded and CARRIED THAT the meeting be recessed.

The meeting was recessed at 7:30pm on February 17, 2015.

FC15/031

Moved, seconded and CARRIED
THAT the Finance Committee meeting that was adjourned on February 17, 2015 at 7:30pm be reconvened.

The meeting was reconvened on Tuesday, March 3, 2015 at 3:32pm.

4.2 National Energy Board Submissions Funding

FC15/032
Moved, seconded and CARRIED
THAT the $40,000 City Council Contingency Budget be preapproved for 2015; AND THAT $10,000 from the $40,000 pre-approved amount be allocated to undertake a legal assessment to evaluate the value to the City in participating in the formal hearing portion of the National Energy Board review process for the Trans Mountain Expansion Project.
 
5.1 Monthly Expenditure Report
Report: To be distributed under separate cover  / File: 05-1700-03--06/2015
 
5.2 Budget Increases per Budget Expenditure Control Policy
Policy: Budget Expenditure Control Policy – 05-1700-01 File: 01-0350-03/2010-01
Memo: Corporate Business Analyst, dated February 4, 2015 File: 05-1700-002

It was noted that the funds will be used for the strategic fleet review that is currently being undertaken.

5.3 2015 Vehicle Insurance Discount
Report: Financial Services, dated February 10, 2015 File: 03-1280-02
 
6. Adjournment
Councillor Lahti adjourned the meeting at 3:37pm on March 3, 20