MINUTES

1.

It was moved and seconded

That the minutes of the meeting of the Finance Select Committee held on Tuesday, March 23^rd, 2004, be adopted as circulated.

CARRIED

2.

FIVE YEAR FINANCIAL PLAN
(Report:  Apr. 22/04, File No.:  03-0970-01-Vol 01) (REDMS No. 1229803, 1229583)

The Director of Finance, Andrew Nazareth, reviewed the report and recommendations with the Committee, during which he advised that the recommendations from 2005 were based on maintaining the City's existing service levels and programs, and did not include any additional levels.  Mr. Nazareth further advised that amendments could be made to the Five Year Financial Plan for 2005 and beyond.

Discussion then took place on:

capital plan expenditures and funding sources

City utilities (water, sewer and sanitation) and the rationale for the increase in expenditures from 2004 to 2008

user fees and what had been included in the budget

the net growth to the tax base and how that related to the previous years tax growth

the impact of the Five Year Financial Plan on the City's reserve accounts, and whether the funds in these accounts would be higher or lower than their current levels, in 2008

what comprised the Grant and Developers account

Funding Sources and the rationale for showing zero balances for specific items

the availability of funding for approved capital projects, and the use of reserve funds to pay for specific projects

the amount of casino revenue which had been included in the base budget for 2004

the potential for a surplus at the end of each year, other sources of revenue which could be considered, and staffs continued search for efficiencies to reduce the level of expenditures even more

the availability of funding for the construction of the new Community Safety building and fire halls

the amount of money still to be repaid and the timing of the repayment with respect to the funding borrowed to purchase properties in the Terra Nova North-West Quadrant, and whether it would be prudent to pay off the debt prior to 2014

the assumptions being made by staff with respect to such matters as salary increases, the RCMP contract increases, business licence revenue, casino funding and parking revenue

whether any additional revenue would be generated through the Parks, Recreation & Cultural Services Division.
 

During the discussion, the Chair thanked staff for their hard work in preparing the information now being considered by the Committee.

It was moved and seconded

(1)

That the proposed 5 Year Financial Plan (2004 2008) be approved; and
 

(2)

That staff undertake a process of public consultation regarding this Plan before it is adopted as per the requirement of Section 166 of the Community Charter.

The question on the motion was not called, as the request was made that the recommendations be dealt with separately.

The question on Part (1) of the motion was called, and it was CARRIED with Mayor Brodie and Cllr. McNulty opposed.

The question on Part (2) of the motion was called, and it was CARRIED.

ADJOURNMENT

It was moved and seconded

That the meeting adjourn (5:16 p.m.).

CARRIED

Certified a true and correct copy of the Minutes of the meeting of the Finance Select Committee of the Council of the City of Richmond held on Monday, April 26^th, 2004.

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Councillor Kiichi Kumagai
Chair

Fran J. Ashton
Executive Assistant, City Clerks Office