MINUTES

It was moved and seconded

That the minutes of the meeting of the Finance Committee held on Monday, January 4, 2010, be adopted as circulated.

CARRIED

BUSINESS AND FINANCIAL SERVICES DEPARTMENT

1.

2010 ASSESSMENT VALUES

(File Ref. No.: ) (REDMS No. 2796265)

In reply to queries from Committee, Andrew Nazareth, General Manager, Business & Financial Services, advised that (i) there have been many favourable appeals in relation to City Centre assessments; and (ii) legislative change is currently underway in order to authorize municipalities to make adjustments in particular circumstances.

Ivy Wong, Manager, Revenue, explained that assessment increases do not automatically result in tax increases for property owners or additional tax revenue for the City.  She noted that rates are adjusted annually to ensure that the current taxes collected would be the same as the previous year plus any tax increase announced for the current year.

In reply to a query from Committee, Ms. Wong advised that property owners have until January 31^st to request an independent review of their assessment value before the Property Assessment Review Panel.  If appeals are successful after the tax rate has been established, the City has provisions to cover these costs.

It was moved and seconded

That the report from the Manager, Revenue on 2010 Assessment Values be received for information.

CARRIED

2.

2010 OPERATING BUDGET AND 5 YEAR FINANCIAL PLAN REFERRALS

(File Ref. No.:) (REDMS No. 2787345, 2786879, 2794805, 2794841, 2794010, 2788415, 2794506, 2788595, 2794794, 2793938, 2788415, 2794513, 2796678, 2794843)

In response to queries from Committee, staff advised the following:

§          

it would take approximately 18 to 24 months to acquire a ladder truck;

§          

delaying the purchase of a ladder truck does not negatively affect Richmond Fire-Rescue’s operations;

§          

the Fire Master Plan is anticipated to be presented to Council in the fall of 2010 and should be available prior to 2011 budget meetings;

§          

of Victim Services’ entire budget ($282,400), approximately $274,800 is allocated to salary and benefits;

§          

the proposed 2010 budget aims to reduce overall net expenditures by $2.77 million; this budget reduction strategy does not impact staff;

§          

a staff report regarding the Lubzinski collection is anticipated to go to the Parks, Recreation and Cultural Services Committee meeting in January 2010;

§          

the proposed 2010 operating budget accounts for the City’s entire training budget, including corporate, IT, and utility services training;

§          

once several new civic buildings have been completed, it will allow the City to consolidate workspaces, at which time the need for auxiliary buildings would be reassessed; and

§          

a staff report on the space needs for civic buildings is anticipated by mid-2010 and will be built on previous studies.

Discussion ensued regarding relocation of divisions and George Duncan, Chief Administrative Officer, provided background information and advised that the changes would result in significant efficiencies.

Staff further provided the following information in response to Committee queries:

§          

film revenue is up 60%, however it has not yet reached its target;

§          

the City’s budget process inherently provides the opportunity to continually re-assess City services and processes;

§          

naming rights on City owned facilities and infrastructure and an entrepreneurial approach to the land and property portfolio have been identified as potential revenue generation programs and services;

§          

seasonal staff are also budgeted in off-season months to cover staff illness, vacations, and unforeseen circumstances such as severe weather conditions;

§          

changes in technology are such that it is likely that the City will see a reduction in the number of telephone landlines in future, whereby users will probably have only one wireless device; and

§          

catering costs have increased from past years, however, recently the City has undertaken many large scale projects requiring staff to work irregular hours.

It was moved and seconded

That the attached report from the Director of Finance on the 2010 Operating Budget and 5 Year Financial Plan referrals be received for information.

CARRIED

As a result of the discussion, the following referrals were introduced:

It was moved and seconded

That staff report back to Council on Victim Services through the Community Safety Committee by the end of June 2010 on:

(a)

how the budget increased to $203,000 from what was originally a matching grant from the Province; and

(b)

impacts to the program if the City were to reduce its funding to match the provincial funding level.

CARRIED

It was moved and seconded

(1)

That staff report back on:

(a)

the increase in film revenue;

(b)

naming rights on City owned facilities and infrastructure, and an entrepreneurial approach to the land and property portfolio as sources of potential revenue generation; and

(2)

That staff recommend a policy or administrative procedure on catering.

CARRIED

3.

2010 OPERATING BUDGET AND 5 YEAR FINANCIAL PLAN (2010-2014)

(File Ref. No.:) (REDMS No. 2795264, 2777631)

With the aid of a PowerPoint presentation (copy on file, City Clerk’s Office), Mr. Nazareth provided information related to the current state of the economy and the proposed 2010 Operating budget.

Mr. Nazareth also commented that the British Columbia Property Tax Deferment Program allows property owners to defer their annual property taxes if they meet particular criteria.  In addition, due to the economic downturn in 2009, the Provincial government provided an additional criteria to the tax deferment program to temporarily include financial hardship.

In response to queries from Committee, Jerry Chong, Director, Finance advised that in the event of unexpected severe winter conditions, funds in provision accounts can be accessed for additional snow and ice control.

Councillor Johnston left the meeting (5:40 p.m.).

It was moved and seconded

(1)

That the Council approved 2010 Capital Budget be amended to remove the Fire Rescue Ladder truck of $1.5M;

(2)

That the Council approved 2010 Capital Budget be amended to include the Hamilton Daycare project increase from $1.11M to $1.77M;

(3)

That the revised 2010 Operating Budget with net expenditure increase of $5.10M be approved and form the basis of the City’s 5 Year Financial Plan (2010 – 2014);

(4)

That the revised 5 Year Financial Plan (2010 – 2014) be approved and that staff undertake a process of public consultation prior to adoption by Council as required in Section 166 of the Community Charter.

Councillor Johnston returned to the meeting (5:41 p.m.).

The question on the motion was not called as discussion ensued regarding additional expenditures related to (i) a Heritage Conservation Supervisor; (ii) the Richmond Intercultural Advisory Committee (RIAC); and (iii) snow and ice control.

Robert Gonzalez, General Manager, Engineering and Public Works, clarified that additional service levels for snow and ice control have been approved, however that service level has not been funded.  Therefore, if additional funding were not approved, staff could utilize funds in provision accounts to accommodate additional snow and ice control services, if the need arose in 2010.

As a result of the discussion, the following amendment was introduced:

It was moved and seconded

That #3 be amended to read as follows:

“That the revised 2010 Operating Budget with net expenditure increase of $5.10M, plus $92,500 for additional levels for Heritage sites and RIAC expenses be approved and form the basis of the City’s 5 Year Financial Plan (2010 – 2014).”

DEFEATED

Opposed:  Cllrs. E. Halsey-Brandt

G. Halsey-Brandt

S. Halsey-Brandt

Johnston

McNulty

Steves 

The question on the main motion was then called and it was CARRIED with Councillors Johnston and McNulty opposed.

Following discussion, Committee agreed that the recommendation on the 2010 Operating Budget and 5 Year Financial Plan (2010 – 2014) would be considered for ratification by Council at a Special Council meeting to be held on Monday, January 18, 2010.

4.

MANAGER’S REPORT

Mr. Chong introduced Syd Stowe, Manager, Purchasing.

ADJOURNMENT

It was moved and seconded

That the meeting adjourn (6:00 p.m.).

CARRIED

Certified a true and correct copy of the Minutes of the meeting of the Finance Committee of the Council of the City of Richmond held on Monday, January 11, 2010.

_________________________________

_________________________________

Mayor Malcolm D. Brodie

Chair

Hanieh Floujeh

Acting Executive Assistant

City Clerk’s Office