Title
LONG RANGE FINANCIAL PLAN AND ASSET MANAGEMENT REVIEW
C. Millar, Deputy Treasurer for the City of Barrie, advised that the purpose of the presentation was to review the progress related to the Long Range Financial Plan since its creation in 2009. He noted that the presentation would provide a detailed review of the following aspects of the Plan:
· The Corporation's Financial Policy Framework
· Financial Performance to date
· Factors influencing future performance
C. Millar advised that the Financial Policy Framework was established in 2008. He outlined the key targets identified within the Framework and the status with respect to achievements of the targets. He suggested that a more aggressive financial strategy should be implemented over the next few years as existing financial obligations significantly exceed the current reserve balances. Mr. Millar reviewed the financial performance to date including deviations from the plan, related to the following:
- Affordability thresholds for property taxes, water and wastewater as a percentage of income
- Tax capital reserves balance
- Tax rate stabilization reserve
- Water and wastewater balances
- Tax debt
- Water and waste water debt
C. Millar described other City reserves and their purpose.
Members of the Finance and Corporate Services Committee asked a number of questions and received responses from City staff.
D. McKinnon, Director of Finance for the City of Barrie, provided a presentation on the factors influencing future performance of the Financial Plan. She outlined a comprehensive preliminary financing plan model and the inputs leading to a base case that has been developed in conjunction with the Growth Planning. Ms. McKinnon commented that a good set of financial tools will be developed but tough decisions would need to be made going forward to ensure sustainability.
Councillor A. Nuttal left the meeting.
Members of the Finance and Corporate Services Committee asked a number of questions and received responses from City staff.
B. Parkin, Director of Corporate Asset Management for the City of Barrie, described the impacts of affordability concerns on the current asset condition and the costs associated with sustaining these investments. Mr. Parkin provided information on current asset consumption trends, road condition indexes and infrastructure replacement needs. He suggested that navigating the path forward required a refining of our understanding of acceptable service levels and the development of a Neighbourhood Renewal approach for capital planning and budgeting associated with infrastructure renewal.
E. Archer, General Manager of Corporate Services for the City of Barrie concluded the presentation by commenting that the current Policy Framework was working and that Business Planning and Financial Planning for Growth Management were underway. He commented that discussions with City Council are beneficial at the onset and during the budgeting process to provide information required by Council to make informed decisions for future financial sustainability.
Members of the Finance and Corporate Services Committee asked a number of questions and received responses from City staff.