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AGENDA - Finance Advisory Committee - 20171012 Finance Advisory Committee Meeting Agenda Thursday, October 12, 2017 7 p.m. Holland Room Aurora Town Hall Public Release October 10, 2017 Town of Aurora Finance Advisory Committee Meeting Agenda Date: Thursday, October 12, 2017 Time and Location: 7 p.m., Holland Room, Aurora Town Hall 1. Approval of the Agenda Recommended: That the agenda as circulated by Legislative Services be approved. 2. Declarations of Pecuniary Interest and General Nature Thereof 3. Receipt of the Minutes Finance Advisory Committee Meeting Minutes of September 27, 2017 Recommended: That the Finance Advisory Committee meeting minutes of September 27, 2017, be received for information. 4. Delegations Finance Advisory Committee Meeting Agenda Thursday, October 12, 2017 Page 2 of 2 5. Consideration of Items 1. Walkthrough of the Online 2018 Citizen Budget Survey (Information to be provided at meeting) (Deferred from Finance Advisory Committee meeting of September 27, 2017) Recommended: 1. That the Walkthrough of the Online 2018 Citizen Budget Survey be received for information. 2. Memorandum from Director of Financial Services/Treasurer Re: Round Table Discussion: 2018 Operating Budget Pressures (Deferred from Finance Advisory Committee meeting of September 27, 2017) Recommended: 1. That the memorandum regarding Round Table Discussion: 2018 Operating Budget Pressures be received for information; and 2. That the comments and suggestions of the discussion regarding 2018 Operating Budget Pressures be received and referred to staff for consideration and action as appropriate. 6. New Business 7. Adjournment Town of Aurora Finance Advisory Committee Meeting Minutes Date: Wednesday, September 27, 2017 Time and Location: 5:30 p.m., Holland Room, Aurora Town Hall Committee Members: Councillor Michael Thompson (Chair), Councillor Harold Kim, and Mayor Geoffrey Dawe Member(s) Absent: None Other Attendees: Doug Nadorozny, Chief Administrative Officer, Dan Elliott, Director of Financial Services/Treasurer, Jason Gaertner, Manager, Financial Planning, Karen Oreto, Financial Analyst, Tracy Evans, Financial Analyst, Budget, Samantha Yew, Deputy Town Clerk and Ishita Soneji, Council/ Committee Secretary The Chair called the meeting to order at 5:44 p.m. 1. Approval of the Agenda Moved by Councillor Kim Seconded by Mayor Dawe That the agenda as circulated by Legislative Services be approved. Carried 2. Declarations of Pecuniary Interest and General Nature Thereof There were no declarations of pecuniary interest under the Municipal Conflict of Interest Act. Finance Advisory Committee Meeting Agenda Thursday, October 12, 2017 Minutes Page 1 of 5 Finance Advisory Committee Meeting Minutes Wednesday, September 27, 2017 Page 2 of 5 3. Receipt of the Minutes Finance Advisory Committee Meeting Minutes of June 13, 2017 Moved by Mayor Dawe Seconded by Councillor Kim That the Finance Advisory Committee meeting minutes of June 13, 2017, be received for information. Carried 4. Delegations None 5. Consideration of Items 1. Review of Draft General Committee Report No. FS17-030 – Summary of Budget Consultation Meeting May 31, 2017 Staff gave an overview of the discussions from the previous meeting regarding the draft report. The Committee discussed the implications of the proposed Capital and Operating Budget requests. Staff noted that portions of the proposed Capital Budget requests were already incorporated for consideration in the draft Capital Budget Plan. Committee and staff further discussed the approval process of these requests. Moved by Councillor Kim Seconded by Mayor Dawe 1. That draft General Committee Report No. FS17-030 be received; and 2. That the comments and suggestions of the discussion regarding draft General Committee Report No. FS17-030 be referred to staff and that the report be brought forward to General Committee for approval. Carried Finance Advisory Committee Meeting Agenda Thursday, October 12, 2017 Minutes Page 2 of 5 Finance Advisory Committee Meeting Minutes Wednesday, September 27, 2017 Page 3 of 5 2. FS17-042 – Summary of the Key Findings/Outcomes to Date Arising from the Finance Advisory Committee’s Rotating Annual Departmental Detailed Budget Reviews Staff provided background to the report, outlining the findings of the Committee’s annual detailed budget review of three of the Town’s departments and the reporting framework. The Committee and staff briefly discussed the findings and agreed to include the report as part of the opening budget report to Budget Committee. Moved by Councillor Kim Seconded by Mayor Dawe 1. That Report No. FS17-042 be received for information. Carried 3. FS17-040 – Budget Allocation 2018 – Cultural Partners Staff provided background and an overview of the report, which outlines the designated budget allocation for the Town’s cultural partners. Moved by Mayor Dawe Seconded by Councillor Kim 1. That Report No. FS17-040 be received for information. Carried 4. Walkthrough of the Online 2018 Citizen Budget Survey Motion to defer Moved by Councillor Kim Seconded by Mayor Dawe 1. That the Walkthrough of the Online 2018 Citizen Budget Survey be deferred to the next Finance Advisory Committee meeting. Motion to defer Carried Finance Advisory Committee Meeting Agenda Thursday, October 12, 2017 Minutes Page 3 of 5 Finance Advisory Committee Meeting Minutes Wednesday, September 27, 2017 Page 4 of 5 5. Round Table Discussion: 2018 Operating Budget Pressures Staff provided a detailed overview of how departmental budget targets are determined based on known allocated financial requirements and noted the effects of operating pressures on the target budget. The Committee and staff considered options that could help mitigate any target deficits, and agreed to discuss this matter further at a future meeting. Moved by Mayor Dawe Seconded by Councillor Kim 1. That the comments and suggestions of the discussion regarding 2018 Operating Budget Pressures be received and referred to staff for consideration and action as appropriate; and 2. That further discussion of this item be deferred to the next meeting of the Finance Advisory Committee. Carried 6. Round Table Discussion: Next Meeting Dates Moved by Councillor Kim Seconded by Mayor Dawe 1. That the next Finance Advisory Committee meeting be held prior to the first 2018 Budget Committee meeting. Carried 7. Extract from Council Meeting of September 12, 2017 Re: Finance Advisory Committee Meeting Minutes of June 13, 2017 Moved by Mayor Dawe Seconded by Councillor Kim 1. That the Extract from Council Meeting of September 12, 2017, regarding Finance Advisory Committee meeting minutes of June 13, 2017, be received for information. Carried Finance Advisory Committee Meeting Agenda Thursday, October 12, 2017 Minutes Page 4 of 5 Finance Advisory Committee Meeting Minutes Wednesday, September 27, 2017 Page 5 of 5 6. New Business None 7. Adjournment Moved by Councillor Kim Seconded by Mayor Dawe That the meeting be adjourned at 7 p.m. Carried Committee recommendations are not binding on the Town unless adopted by Council. Finance Advisory Committee Meeting Agenda Thursday, October 12, 2017 Minutes Page 5 of 5 Memorandum Date: October 12, 2017 To: Finance Advisory Committee From: Dan Elliott, Director, Financial Services/Treasurer Re: Round Table Discussion: 2018 Operating Budget Pressures Recommendation 1. That the memorandum regarding Round Table Discussion: 2018 Operating Budget Pressures be received for information. Background At its meeting of September 27, 2017, the Finance Advisory Committee (FAC) began a discussion in regard to the Town’s 2018 Operating Budget pressures but was unable to conclude this discussion within the allotted time. Consequently, the Committee agreed at that time to continue this discussion at a future date to be determined prior to the formal commencement of the Budget Committee reviews. In support of this continued discussion, an updated Summary of Key Town 2018 Operating Budget Pressures Included within Staff’s Recommended Draft Budget (Attachment #1) and a summary of Council Budget Options Over & Above Staff’s Draft Budget 2.9% Increase (Attachment #2) is provided under cover of this memorandum. Attachments Attachment #1: Summary of Key Town 2018 Operating Budget Pressures Included within Staff’s recommended Draft Budget Attachment #2: Council Budget Options Over & Above Staff’s Draft Budget 2.9% Increase 100 John West Way Box 1000 Aurora, Ontario L4G 6J1 Phone: 905-727-3123 ext. 4772 Email: delliott@aurora.ca www.aurora.ca Town of Aurora Financial Services Services Finance Advisory Committee Meeting Agenda Thursday, October 12, 2017 Item 2 Page 1 of 3 New Revenue for 2018 (As per Council's Direction) Growth Revenue (3.1% assessment growth forecast)1,296,500$ Tax Levy Increase (based on CPI of 2.1% plus 1% -- Total 3.1%) 1,336,700 non-tax revenue CPI 200,800 Estimated New Revenue 2,834,000$ Allocation to Known Incremental Financial Requirements Reserved 0.2% tax increase for Council options (86,300) Reserved unused room within 2.9%(8,500) Total funds reserved for subsequent Council funding decisions (94,800) Fiscal Strategies Cash to capital increase - fiscal strategy (215,600) Hydro interest and supplementary tax reduction - fiscal strategy (175,000) Fire increase in funding (planned 1.3% of tax levy reduced by staff)(259,200) Past Council Commitments 2017 approved position annualization (149,700) Reduced draw from Rate Stab. 2017 phase-in (437,000) COLA and steps all union & FT non-union staff (462,300) Council salary 'gross up'(65,000) Election 2018 funding short-fall (25,000) Canine commons (PRCS17-002)(16,000) Lost rental revenue from Holland Room loss (3,600) Lost rental revenue from Library Building (26,700) NET Savings from the closure of 52/56 Victoria Street 47,700 Tax savings soccer dome PRCS17-027 40,500 Cultural partners allocation increase (106,000) New Pressures on Budget New Provincial labour legislation impact - Bill 148 (605,000) New waste management contract increase (518,000) Reduced Planning & Development revenue (244,300) Budget correction electricity streetlights and facilities (380,800) Increase net recoveries from rate supported utility & Bldg budgets 556,600 New staffing requirements - Insurance premium increase (17,600) Park Operations reduced reliance upon Developer Charges (20,500) Net all other budget pressures from departments (226,600) Rate Stabilization Solid waste: Phase-in $518K over two years 235,000 Labour Legislatio Phase-in $605K over two years 334,900 569,900 - FAC October 12, 2017 Unresolved Budget Tax Pressure versus Council's Direction Round Table Discussion: 2018 Budget Pressures Additional Information Summary of Key Town 2018 Operating Budget Pressures Included within Staff's Recommended Draft Budget ATTACHMENT #1 Finance Advisory Committee Meeting Agenda Thursday, October 12, 2017 Item 2 Page 2 of 3 Amount 1) Sport Aurora Sustainability support 94,765 2) Sport Aurora Sport Plan 68,505 3) Sport Hall of Fame Sustainability support 51,500 4) Chamber of Commerce - Aurora Home Show 7,290 5) Chamber of Commerce - Aurora Tech Expo 2,500 6) Chamber of Commerce - Business Women's Summitt 2,500 7) Chamber of Commerce - Youth Entrepreneur Summit 2,500 8) AHS One-Time Storage Solution 5,000 9) Lost Town Facility Alternative Space Subsidization 18,000 10) Sponsorship Program staffing and increase svc level - 252,560$ 0.6% - 2) New Cost Neutral Animal Control Position - -$ Round Table Discussion: 2018 Budget Pressures Additional Information FAC October 12, 2017 Total Council Budget Options Over & Above Staff's Draft Budget 2.9% Increase Total Council Budget Information Items INCLUDED in Staff's Draft Budget 2.9% Increase 1) New Bylaw Cost Neutral Position ATTACHMENT #2 Finance Advisory Committee Meeting Agenda Thursday, October 12, 2017 Item 2 Page 3 of 3