City of St.John's Budget Process

In preparation for this budget, Council has been very open about its budget process:

1. On January 25 we announced a comprehensive program review
2. On March 7, Council outlined key goals for Budget 2017, including our desire to reduce the mil rate
3. In early spring we began discussions with the business community
4. In July, we opened our public engagement portal
5. We sought input from our Advisory Committees and held a roundtable with key stakeholder groups in October
6. We held ward-based sessions at which the public could provide input on our priorities
7. We produced a “what we heard” document from public consultations
8. In June, September and October we released detailed information on savings and efficiencies identified through program review
9. We produced and shared a video explaining the budgeting process and have included budget information in our City Guides, on our website and on our social media channels
10. We have responded to numerous requests from the media for interviewsSince 2013, the City has used a three-year planning model for budgeting, which has resulted in a much more comprehensive and strategic approach. 

Most of the decisions to be made when developing a budget address day-to-day operations, but many must also take into consideration the long-term viability of our City. Like any “corporation” the City must ensure that it is in a good fiscal position for today and for future generations; our “shareholders” – the residents and businesses of St. John’s - profit from that attention through the equitable and effective delivery of municipal services.

That being said, there are hundreds of line items in a municipal budget, and not every item can be explored in the public chamber. If we did that, budgets would take months to review and the real work of running the City would never get done. However, every dollar spent at the City of St. John’s is reported on publicly:

• We present a budget that is available online that outlines our planned expenses
• We post cash statements annually, which show actual expenses
• Every week the minutes of Council includes a list of every cheque issued
• Committees of Council are open to the public, and agendas and minutes are available online
• Decision notes detailing staff recommendations on actions are shared in the minutes of Council
• Staff salary ranges are posted online
• Any benefits paid out to employees leaving the organization due to our efforts to improve efficiency have been made public; these benefits come at a cost, but that cost is one-time and the savings are year after year 

City Council does have special meetings that are private, but there is a distinct difference between “secret” and “private.” Special meetings of Council are 1 to 2 hours in length and occur before the regular Council meeting. Minutes of these meetings are taken, and senior staff are in attendance. At special meetings, Council makes decisions on issues that are intergovernmental in nature, personnel matters and legal matters. Items such as lease negotiations between St. John’s Sports and Entertainment and the Ice Caps for the use of Mile One would be discussed and decided in a special meeting as to debate and decide on them publicly would compromise the City's bargaining position.

These meetings are a necessary part of managing a $300 million organization: there are matters that cannot and should not be decided in public, such as court cases, negotiations and agreements that might “tip” the City’s hand and place the organization in a negative position.

Recently, the special meeting was used to debate and discuss recommendations from program review, primarily because the decisions made largely impacted staff – our greatest resource, due care and consideration into these decisions had to be taken. After every phase of program review we provided a detailed breakdown of savings to the media and ensured that the information was easily accessible to the public.

St. John’s will present a budget for 2017 on Monday, December 12 in a manner that is the standard for municipalities in this province and across the country, according to provincial guidelines and in keeping with excellent fiscal stewardship.
 
Dennis O’Keefe
Mayor, City of St. John's