MINUTES of a Finance Committee Meeting held on Monday, January 14, 2008 at 1:00 P.M. in Council Chambers with the following in attendance:

Transcription

1 MINUTES of a Finance Committee Meeting held on Monday, January 14, 2008 at 1:00 P.M. in Council Chambers with the following in attendance: CHAIRMAN: MAYOR: ALDERMEN: OTHERS: Deputy Mayor R.K. Parker R. D. Tarleck J.H. Carlson R. Dodic B. A. Lacey M.A. Simmons K.E. Tratch S.G. Ward T.H. Wickersham City Clerk, Dianne Nemeth Deputy City Clerk, A. Neufeld City Manager, R. B. Horrocks A/City Treasurer, C. Wight City Solicitor, D.S. Hudson Director of Community Services, K. Hopkins Director of Infrastructure Services, D. Hawkins Director of Corporate Initiatives, B. Beck Business Planning Overview Kathy Hopkins, Director of Community Services, advised that by late 2008 Finance Committee will be in a position to recommend the operating budget for to City Council for approval. The process leading to that combines planning for the programs and services that the City supports with the allocation of resources. The role of City Council is to: provide input regarding the municipalities programs and services (policy making) establish the financial plan (budget) to deliver the programs and services ensure Administration provides the programs and services in the best way possible (program monitoring). In 2001, the concept of multi-year planning and budgeting was initiated by the City of Lethbridge through Business Planning and was designed to: Be forward thinking (3 5 years) Lead to accountability Encourage analysis, evaluation and challenge

2 Encourage innovation and continuous improvement Enhance input from citizens and customers Transparency Be easily understood Business Planning is a process that defines what the City department s do, why they do it and how it is done which in turn creates the requirements of the base budget. Also, the process reports and evaluates performance and determines the direction of the business unit for the next three to five year period. Ms. Hopkins advised that in this round of business planning, a logic model template was introduced to assist business units in identifying performance measures that are meaningful to the evaluation of each business unit s success. Over the next six months, business plans will be presented to Finance Committee with the desire to promote better understanding between the Finance Committee and the Business Unit... ENMAX CENTRE BUSINESS PLAN Ashley Matthews, General Manager, ENMAX Centre, advised that the City of Lethbridge ENMAX Centre is a multipurpose facility that provides entertainment and events to the community. The Centre has hosted world class concerts, national curling championships, multicultural events, bull riding, three ring circuses and a major Western Hockey League (WHL) franchise with the Lethbridge Hurricanes calling the ENMAX Centre their home. Mr. Matthews reviewed the event performances and the attendance over the last five years and the effect on revenues. He outlined the projected revenues and expenditures for 2007 and reviewed the tax supported and costs recovery percentages. Accomplishments of the ENMAX Centre over the last several years include: Hosting the Scotties Tournament of Hearts Continued partnership with the Lethbridge Hurricanes Automated Ticket Centre Automated Lighting System Food and Beverage Point of Sale System The facility was built in 1974 and requires upgrades and an expansion to meet the changing needs and expectations of their customers, business partners and users. The expansion will ensure that the facility can continue to host the high calibre of events and activities that Lethbridge and Southern Alberta have enjoyed. 2

3 Mr. Matthews highlighted the addition, renovations and upgrades planned for the existing facility, project timelines and the benefits the upgrades would provide to their customers. To minimize the operating challenges, the project would be scheduled for completion over a period of several years. A question period followed with respect to: Variance in the tax support moneys required from one year to another when there is an increase in events and attendance Effect on the next three year budget as a result of revenue decreasing due to the renovations and additions Impact of the satellite concession operations on the budget and the possibility of increasing the satellite locations Possibility of increasing the number of events in the self promoted category as it has the highest return Feasibility of setting a mandate that the ENMAX Centre be funded 100% through cost recovery rather than tax supported funds Location of increased parking Rational for a permanent lounge and banquet area Differences between the projected revenue and expenditures, how this relates to Lethbridge Hurricanes and Junior Hockey and is this the same Increasing the number of female hockey teams and the potential of female hockey tournaments Construction of two new elevators and provision of handicap accessibility to all levels in the facility Impact of City Council s resolution which addressed the behaviour of visiting performers respecting City of Lethbridge Bylaws Renovations facilitating future trends in the industry Possibility of the tax supported portion becoming less than 16% after completion of the expansion/renovation High profile events generating higher revenues Clarification of the facility surcharge on tickets for events at the ENMAX Centre Confidence that there is a market for the upgrades to existing box suites and constructing additional luxury box suites Lethbridge Hurricanes use of the facility Enhanced dressing rooms and the current deficiencies of the centre Total revenue generated by Lethbridge Hurricane events and how this supports significant upgrades to their operation When the venue name sponsorship agreement expires and the challenges this may cause in the future.. 3

4 FACILITY SERVICES Business Plan Bary Beck, Facility Services Manager, advised that Facilities Services is responsible for advising and supporting corporate clients and community partners in the design and maintenance of City-owned facilities, protecting the City s interest recognizing that buildings are long-term assets to be utilized by future generations. Mr. Beck reviewed the following components of their Business Plan: Asset Management Theory and how it applies to buildings Service Delivery Model Report on Accomplishments Ongoing Performance Monitoring Forecasting and Challenges for Long term asset management of aging buildings has been accomplished by a Facility Condition Audit system to improve planning, develop priorities and identify the required renewal funding levels. Facility Services manages or assists with the management of 232 corporate facilities. The core services are: facility maintenance (preventive and corrective) project support for new buildings o major and minor projects o planning o project management Mr. Beck outlined several of the most significant accomplishments during the last budget cycle which include: completion of a Facility Condition Audit multi-year life cycle plan budget cycle work plan energy efficiency audit and upgrades project support for major and minor capital projects In conclusion, he outlined the forecast and challenges as follows: aging fleet aging workforce aggressive future capital plan and schedule in order to mitigate inflationary pressures consultant and contract availability base funding shortfall 4

5 A question period followed with respect to: Current staff level being adequate as they plan for the future Logic model as a performance indicator Support for projects identified in other business unit budgets and the ability to accommodate these projects Maintenance and repair for the facilities Percentage of the base value of the asset that goes into facility renewal Effort of the organization to educate staff to identify potential concerns/flaws with our infrastructure Plans to upgrade lighting in City facilities to more energy efficient systems Gap in the infrastructure at the Lethbridge Exhibition Park, plans to address the gap and where the responsibility lies to improve the gap Maintenance and upkeep of the Downtown Clock located at 3 rd Avenue and 6 th Street Implications of Trade Investment and Labour Mobility Agreement (TILMA) and the impact this may have on our buyers, suppliers and the organization Challenges of an aging fleet and workforce with an aggressive capital plan and the plan to make these projects successful while striving to avoid inflationary pressures Provincial percentage of inflation compared to the inflation percentage in Lethbridge S.G. WARD: THAT this meeting of Finance Committee be adjourned CARRIED 5