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BYLAW - Establish Various Reserve Funds - 20131126 - 555313THE CORPORATION OF THE TOWN OF AURORA By-law Number 5553-13 BEING A BY-LAW to establish various Reserve Funds for the Town of Aurora. WHEREAS section 9 of the Municipal Act, 2001, S.O. 2001, c. 25, as amended (the "Act'), provides that a municipality has the capacity, rights, powers and privileges of a natural person for the purpose of exercising its authority under the Act or any other statute; AND WHEREAS subsection 11(2) of the Act provides that lower -tier municipalities may pass by -.laws respecting, among other items, the financial management of the municipality and its local boards; AND WHEREAS over time, The, Corporation of the Town of Aurora (the "Town") has established various reserve accounts for various purposes without the benefit of separate formalizing bylaws; AND WHEREAS the Council of the Town deems it necessary and desirable for purposes of transparency and accountability to the public to set out the nature and purposes of each reserve fund; NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE TOWN OF AURORA ENACTS AS FOLLOWS: 1. THAT the reserve funds set out in the schedules attached hereto, and forming part of this by-law, are hereby established with funding sources, balances, purposes, and other provisions as set out therein. 2. THAT the reserve funds shall be administratively organized into the following categories, as identified on each schedule to this by-law: (a) Infrastructure Sustainability/Repair and Replacement ("RR"); (b) New Infrastructure ("NI"); (c) Stabilization ("S"); (d) Unearned Revenues ("UR"); and (e) Special Purposes (°SP"). 3. THAT the balance in each reserve fund account earn investment income to the credit of such reserve fund, as calculated by the Town's Treasurer based on the annual performance of the Town's investment portfolio comprised of balances of all reserves and reserve funds, and surplus operating and unspent cash balances throughout the year. 4. THAT from time to time, balances in individual reserve fund accounts may drop into a deficit, at which time the reserve fund will be charged interest as calculated by the Town's Treasurer, being a rate of interest higher than the earned interest rate utilized for positive balance reserves. 5. THAT only Council may approve utilization of, or contributions to, reserve fund accounts. By-law Number 5553-13 Page 2 of 18 6. THAT any reserve fund which was not established by by-law or resolution of Council, and which is not listed as a separate schedule to this by-law, but is still being utilized on behalf of the Town as of the date of passage of this by- law, shall remain an authorized reserve fund. 7. THAT all prior by-laws and resolutions of Council establishing reserve funds of any kind are hereby repealed, save and except By-law Number 5439-12 (Hydro Sale Investment Reserve Fund) and By-law Number 5440-12 (Council Discretionary Reserve Fund). 8. THAT this by-law shall come into full force and effect on the date of final passage hereof, with each reserve fund being established on the date specified in each applicable schedule attached hereto. READ A FIRST AND SECOND TIME THIS 26th DAY OF NOVEMBER, 2013. READ A THIRD TIME AND FINALLY PASSED THIS 26th DAY OF NOVEMBER, 2013. �-�raved�s� Date, DAWE, MAYOR By-law Number 5553-13 Page 3 of 18 Schedule: RR1 Reserve Fund Category: Infrastructure Sustainability/Repair and Replacement Reserve Fund Name: Roads and Related Infrastructure Repair and Replacement The Roads and Related Infrastructure Repair and Replacement Reserve Fund (the "Fund") is hereby established to receive and hold property tax sourced contributions for the purposes of funding major repairs, restorations, upgrades or replacement of the Town's road network and related infrastructure. Such infrastructure includes road surfaces, road beds, bridges, curb and gutter, boulevards, sidewalks, bikeways, street lighting, traffic signals and systems, signage, guide wires, guardrails and other similar infrastructure, but does not include water, wastewater or stormwater (including all culverts and ditching) infrastructure Balances in the Fund will be planned for specific projects to be recommended to or by Council during the annual capital budget process, or other times throughout the year. The target balance for this reserve fund is two (2) times the average annual spend as outlined in the annually updated Ten (10) Year Capital Plan of the Town. At any time, acting in the best interests of the Town, Council may direct that some or all balances in the Fund be transferred to other reserve funds, or used for other purposes, provided that the transfer or use of tax sourced funding is appropriate in the circumstances. The Fund is established to have a January 1, 2013 opening balance of $1,801,984.22. By-law Number 5553-13 Page 4 of 18 Schedule: RR2 Reserve Fund Category: Infrastructure Sustainability/Repair and Replacement Reserve Fund Name: Gas Tax Revenue Ontario municipalities are apportioned a share of Federal Gas Tax Revenues through a periodic agreement between the Association of Municipalities of Ontario (AMO), and the Federal Government of Canada (the "Agreement"), with the determination of the allocation amongst municipalities being the responsibility of AMO. Such funds are to be held in a separate account of the municipality until expended. The Gas Tax Revenue Reserve Fund (the "Fund") is hereby established to receive and hold gas tax revenue sharing proceeds from the Agreement until spent on eligible projects and initiatives. Under the terms of the Agreement, the funding is to result in net incremental capital spending on Municipal Infrastructure as defined and set out in the Agreement. Funding in the Fund shall be used by the Town primarily for the purposes of funding eligible road and related infrastructure repairs, refurbishments or replacements, and shall be considered an infrastructure sustainability funding source. However, Council may direct that funding be directed towards other projects and initiatives which are eligible uses under the Agreement which include: (a) Public Transit: Active transportation infrastructure such as bike lanes; (b) Water, Wastewater and Stormwater systems infrastructure, including metering, treatment, and separation of systems projects; (c) Community energy systems involving heat and power combined supply, or heating and cooling combined supply; (d) Local roads, bridges, tunnels, active transportation infrastructure that enhance sustainability outcomes as defined in the Agreement. Balances in the Fund will be planned for specific projects or issues to be recommended to or by Council during the annual capital budget process, or other times throughout the year. The Fund is established by transfer of the current balance in the Town's Federal Gas Tax account, being $1,138,602,98 on January 1, 2013. By-law Number 5553-13 Page 5 of 18 Schedule: RR3 Reserve Fund Category: Infrastructure Sustainability/Repair and Replacement Reserve Fund Name: Facilities Infrastructure Repair and Replacement The Facilities Infrastructure Repair and Replacement Reserve Fund (the "Fund") is hereby established to receive and hold property tax sourced contributions for the purposes of funding major repairs, restorations, upgrades or replacement of the Town's buildings and related infrastructure. Such buildings include any building which encloses community use spaces, public spaces, administrative or town operations spaces, and all infrastructure or components associated with such buildings, but does not include Parks amenities such as gazebos, band shells, or utility services pumping station structures. Balances in the Fund will be planned for specific projects to be recommended to or by Council during the annual capital budget process, or other times throughout the year. The target balance for this reserve fund is two (2) times the average annual spend as outlined in the annually updated Ten (10) Year Capital Plan of the Town. At any time, acting in the best interests of the Town, Council may direct that some or all balances in the Fund be transferred to other reserve funds, or used for other purposes, provided that the transfer or use of tax sourced funding is appropriate in the circumstances. The Fund is established to have a January 1, 2013 opening balance of $1,347,458.66. By-law Number 5553-13 Page 6 of 18 Schedule: RR4 Reserve Fund Category: Infrastructure Sustainability/Repair and Replacement Reserve Fund Name: Fleet and Equipment Repair and Replacement The Fleet and Equipment Infrastructure Repair and Replacement Reserve Fund (the "Fund") is hereby established to receive and hold property tax sourced contributions for the purposes of funding major repairs, restorations, upgrades or replacement of the Town's rolling stock fleet, and operational equipment. Such owned assets include all licenced motor vehicles, trailers and related equipment components, unlicensed vehicles and powered equipment, and major other machinery and equipment, and any other related assets not classed as "minor equipment" or "small tools" by the Town's financial and budget policies. Balances in the Fund will be planned for specific projects to be recommended to or by Council during the annual capital budget process, or other times throughout the year. The target balance for this reserve fund is two (2) times the average annual spend as outlined in the annually updated Ten (10) Year Capital Plan of the Town. At any time, acting in the best interests of the Town, Council may direct that some or all balances in the Fund be transferred to other reserve funds, or used for other purposes, provided that the transfer or use of tax sourced funding is appropriate in the circumstances. The Fund is established to have a January 1, 2013 opening balance of $718,781,67. By-law Number 5553-13 Page 7 of 18 Schedule: I RR5 Reserve Fund Category: Infrastructure Sustainability/Repair and Replacement Reserve Fund Name: Parks & Recreation Infrastructure and Equipment Replacement The Parks and Recreation Infrastructure and Equipment Repair and Replacement Reserve Fund (the "Fund") is hereby established to receive and hold property tax sourced contributions for the purposes of funding major repairs, restorations, upgrades or replacement of the Town's parks, trails, open space or recreation assets, infrastructure and major equipment. Such owned assets include gazebo and band shell structures, sports fields and related fixed or portable equipment, field and pathway lighting, and any other related assets not classed as "minor equipment" or "small tools" by the Town's financial and budget policies. Balances in the Fund will be planned for specific projects to be recommended to or by Council during the annual capital budget process, or other times throughout the year. The target balance for this reserve fund is two (2) times the average annual spend as outlined in the annually updated Ten (10) Year Capital Plan of the Town. At any time, acting in the best interests of the Town, Council may direct that some or all balances in the Fund be transferred to other reserve funds, or used for other purposes, provided that the transfer or use of tax sourced funding is appropriate in the circumstances. The Fund is established to have a January 1, 2013 opening balance of $644,001.13. By-law Number 5553-13 Page 8 of 18 Schedule: RR6 Reserve Fund Category: Infrastructure Sustainability/Repair and Replacement Reserve Fund Name: Information Technology Infrastructure Replacement The Information Technology Infrastructure Repair and Replacement Reserve Fund (the "Fund") is hereby established to receive and hold property tax sourced contributions for the purposes of funding major repairs, restorations, upgrades or replacement of the Town's information technology assets, infrastructure and major equipment, including major software investments. Such owned assets include any other related hardware or software assets not classed as "minor equipment" or "small tools" by the Town's financial and budget policies. Balances in the Fund will be planned for specific projects to be recommended to Council during the annual capital budget process, or other times throughout the year. The target balance for this reserve fund is two (2) times the average annual spend as outlined in the annually updated Ten (10) Year Capital Plan of the Town. At any time, acting in the best interests of the Town, Council may direct that some or all balances in the Fund may be transferred to other reserve funds, or used for other purposes, provided that the transfer or use of tax sourced funding is appropriate in the circumstances. The Fund is established to have a January 1, 2013 opening balance of $185,352,18. By-law Number 5553-13 Page 9 of 18 Schedule: RR7 Reserve Fund Category: Infrastructure Sustainability/Repair and Replacement Reserve Fund Name: Discretionary Infrastructure Repair and Replacement Discretionary Infrastructure Repair and Replacement Reserve Fund (the "Fund") is by established to receive and hold property tax sourced contributions for the oses of funding major repairs, restorations, upgrades or replacement of any Town A asset, to be determined at the discretion of Council. es in the Fund will be planned for specific projects to be recommended to or by I during the annual budget process, or other times throughout the year. target balance for this reserve fund is two (2) times the average annual spend as ned in the annually updated Ten (10) Year Capital Plan of the Town. t any time, acting in the best interests of the Town, Council may direct that some or I balances in the Fund be transferred to other reserve funds, or used for other irposes, provided that the transfer or use of tax sourced funding is appropriate in the rcumstances. Fund is established to have a January 1, 2013 opening balance of $107,392.04. By-law Number 5553-13 Page 10 of 18 Schedule: I RR8 Reserve Fund Category: Infrastructure Sustainability/Repair and Replacement Reserve Fund Name: Water Services Infrastructure Repair and Replacement The Water Services Infrastructure Repair and Replacement Reserve Fund (the "Fund") is hereby established to receive and hold utility rate sourced contributions for the purposes of funding major repairs, restorations, upgrades or replacement of the Town's water utility services assets and related infrastructure. Balances in the Fund will be planned for specific projects to be recommended to or by Council during the annual capital budget process, or other times throughout the year. The target balance for this reserve fund is two (2) times the average annual spend as outlined in the annually updated Ten (10) Year Capital Plan of the Town. At any time, acting in the best interests of the Town, Council may direct that some or all balances in the Fund be transferred to other reserve funds, or used for other purposes, provided that the transfer or use of utility rate sourced funding is appropriate in the circumstances. The Fund is established to have a January 1, 2013 opening negative balance of $1,626,778.00. By-law Number 5553-13 Page 11 of 18 Schedule: RR9 Reserve Fund Category: Infrastructure Sustainability/Repair and Replacement Reserve Fund Name: Wastewater Services Infrastructure Repair and Replacement The Wastewater Services Infrastructure Repair and Replacement Reserve Fund (the "Fund") is hereby established to receive and hold utility rate sourced contributions for the purposes of funding major repairs, restorations, upgrades or replacement of the Town's wastewater utility services assets and related infrastructure. Balances in the Fund will be planned for specific projects to be recommended to or by Council during the annual capital budget process, or other times throughout the year. The target balance for this reserve fund is two (2) times the average annual spend as outlined in the annually updated Ten (10) Year Capital Plan of the Town. At any time, acting in the best interests of the Town, Council may direct that some or all balances in the Fund be transferred to other reserve funds, or used for other purposes, provided that the transfer or use of utility rate sourced funding is appropriate in the circumstances. The Fund is established to have a January 1, 2013 opening negative balance of $375,187.00. By-law Number 5553-13 Page 12 of 18 Schedule: RR10 Reserve Fund Category: Infrastructure Sustainability/Repair and Replacement Reserve Fund Name: Stormwater Services Infrastructure Repair and Replacement The Stormwater Services Infrastructure Repair and Replacement Reserve Fund (the "Fund") is hereby established to receive and hold stormwater charges sourced contributions for the purposes of funding major repairs, restorations, upgrades or replacement of the Town's stormwater utility services assets and related infrastructure (including all culverts and ditching). Balances in the Fund will be planned for specific projects to be recommended to or by Council during the annual capital budget process, or other times throughout the year. The target balance for this reserve fund is two (2) times the average annual spend as outlined in the annually updated Ten (10) Year Capital Plan of the Town. At any time, acting in the best interests of the Town, Council may direct that some or all balances in the Fund be transferred to other reserve funds, or used for other purposes, provided that the transfer or use of utility billings sourced funding is appropriate in the circumstances. The Fund is established to have a January 1, 2013 opening balance of $601,179.26. By-law Number 5553-13 Page 13 of 18 Schedule: Nil Reserve Fund Category: New Infrastructure Reserve Fund Name: Growth and New Infrastructure The Growth and New Infrastructure Reserve Fund (the "Fund") is hereby established to receive and hold property tax sourced contributions for the purposes of funding major growth related or new Town owned major capital assets where development sourced funding is ineligible or insufficient. Balances in the Fund will be planned for specific projects to be recommended to or by Council during the annual budget process, or other times throughout the year. At any time, acting in the best interests of the Town, Council may direct that some or all balances in the Fund be transferred to other reserve funds, or used for other purposes, provided that the transfer or use of tax sourced funding is appropriate in the circumstances. The Fund is established to have a January 1, 2013 opening balance of $1,148,745.00. By-law Number 5553-13 Page 14 of 18 Schedule: NI2 Reserve Fund Category: New Infrastructure Reserve Fund Name: Studies and Other Projects The Studies and Other Projects Reserve Fund (the "Fund") is hereby established to receive and hold property tax sourced contributions for the purposes of funding major studies or other special projects of the Town where development sourced funding is ineligible or insufficient. Balances in the Fund will be planned for specific projects to be recommended to or by Council during the annual budget process, or other times throughout the year. At any time, acting in the best interests of the Town, Council may direct that some or all balances in the Fund be transferred to other reserve funds, or used for other purposes, provided that the transfer or use of tax sourced funding is appropriate in the circumstances. The Fund is established to have a January 1, 2013 opening balance of $103,916.00. By-law Number 5553-13 Page 15 of 18 Schedule: S1 Reserve Fund Category: Stabilization Reserve Fund Name: Tax Rate Stabilization The Tax Rate Stabilization Reserve Fund (the "Fund") is hereby established to receive and hold tax sourced contributions for the purposes of funding the phasing in or the deferring of the tax rate impacts of specific budgetary issues or events which may arise from time to time, and to fund, if necessary, any year end operating budgetary deficits. Funding will arise from annual operating surplus allocations, from budget allocations approved in the annual budget process, or any other funding so directed to this reserve fund by Council. Balances in the Fund will be planned for specific projects or issues to be recommended to or by Council during the annual capital budget process, or other times throughout the year. At any time, acting in the best interests of the Town, Council may direct that some or all balances in the Fund be transferred to other reserve funds, or used for other purposes, provided that the transfer or use of tax sourced funding is appropriate in the circumstances. The Fund is established to have a January 1, 2013 opening balance of $2,781,168.55. By-law Number 5553-13 Page 16 of 18 Schedule: S2 Reserve Fund Category: Stabilization Reserve Fund Name: Elections The Elections Reserve Fund (the "Fund") is hereby established to receive and hold tax sourced contributions for the purposes of funding the periodic municipal elections, by-elections or related expenses. Funding will arise from budget allocations approved in the annual budget process, or any other funding so directed to this reserve fund by Council. Balances in the Fund will be planned for specific projects or issues to be recommended to or by Council during the annual budget process, or other times throughout the year. The target balance for this reserve fund is the estimated cost of the next election cycle, plus a provision of the estimated cost of a by-election. At any time, acting in the best interests of the Town, Council may direct that some or all balances in the Fund be transferred to other reserve funds, or used for other purposes, provided that the transfer or use of tax sourced funding is appropriate in the circumstances. The Fund is established to have a January 1, 2013 opening balance of $147,681.35. By-law Number 5553-13 Page 17 of 18 Schedule: S3 Reserve Fund Category: Stabilization Reserve Fund Name: WSIB The WSIB (Workplace Safety and Insurance Board) Reserve Fund (the "Fund") is hereby established to receive and hold tax sourced contributions for the purposes of funding the periodic assessments and awarded claims arising from workplace accidents or illnesses of Town staff or other persons or related expenses. Funding will arise from budget allocations through an internal charge to staff benefits costs approved in the annual budget process, or any other funding so directed to this reserve fund by Council. Balances in the Fund will be used to pay claims, awards and related expenses for workplace accidents or illnesses as they may arise and be directed by the Workplace Safety and Insurance Board, to be recommended to or by Council during the annual budget process, or other times throughout the year. Details of such payments will normally remain confidential due to prevailing privacy legislation. The target balance for this reserve fund is established periodically by actuarial study performed externally in connection with the annual audit. At any time, acting in the best interests of the Town, Council may direct that some or all balances in the Fund be transferred to other reserve funds, or used for other purposes, provided that the transfer or use of tax sourced funding is appropriate in the circumstances. The Fund is established to have a January 1, 2013 opening balance of $1,091,734.21. By-law Number 5553-13 Page 18 of 18 Schedule: SP1 Reserve Fund Category: Special Purposes Reserve Fund Name: Trails Donations The Trails Donations Reserve Fund (the "Fund") is hereby established to receive and hold donations made for the betterment of the Town's trails network: (a) All gifts of $50.00 or more will be receipted for income tax purposes by the Finance Division; (b) Only unconditional financial gifts will be accepted, and are not refundable; and (c) Gifts from estates and wills are also encouraged for consideration. Balances in the fund will be planned for specific projects for the betterment of the Town's trails network, to be recommended to Council by the Trails and Active Transportation Committee, or its successor committee. Such recommended projects will be above and beyond base financial commitments for trails made by Council in its annual budget, or to assist in funding large projects which would not proceed by Council without the additional funding from the reserve. In the event Council suspends the program of soliciting donations for Trails purposes, or does not appoint a Trails and Active Transportation Committee or a successor committee whose purposes include Trails, acting in the best interests of the Town, Council may direct that some or all balances in the Fund be transferred to other parks purposes reserve funds, or used for improvements to the Town's parks or open spaces in recognition of the original intent of the donation funding. The Fund is established to have $Nil balance upon enactment.