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AGENDA - Finance Advisory Committee - 20170613Finance Advisory Committee Meeting Agenda Tuesday, June 13, 2017 5:30 p.m. Holland Room Aurora Town Hall Public Release June 9, 2017 Town of Aurora Finance Advisory Committee Meeting Agenda Date: Tuesday, June 13, 2017 Time and Location: 5:30 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 April 26, 2017 Recommended: That the Finance Advisory Committee meeting minutes of April 26, 2017, be received for information. 4. Delegations 5. Consideration of Items Finance Advisory Committee Meeting Agenda Tuesday, June 13, 2017 Page 2 of 2 1. Review of Draft General Committee Report No. FS17-023 – 2018 Budget Preparation Directions Recommended: 1. That draft General Committee Report No. FS17-023 be received; and 2. That the comments and suggestions of the discussion regarding draft General Committee Report No. FS17-023 be referred to staff and that the report, as amended, be brought forward to General Committee for approval. 2. Memorandum from Corporate Communications Manager Re: Citizen Budget and Online Public Participation in the 2018 Budget Process Recommended: 1. That the memorandum regarding Citizen Budget and Online Public Participation in the 2018 Budget Process be received for information. 3. Review of Draft General Committee Report No. FS17-030 – Summary of Budget Consultation Meeting May 31, 2017 Recommended: 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, as amended, be brought forward to General Committee for approval. 4. Review of 2018 Budget Committee Calendar with Narratives Recommended: 1. That the Review of 2018 Budget Committee Calendar with Narratives be received for information. 6. New Business 7. Adjournment Town of Aurora Finance Advisory Committee Meeting Minutes Date: Wednesday, April 26, 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, and Linda Bottos, Council/ Committee Secretary The Chair called the meeting to order at 5:45 p.m. 1. Approval of the Agenda Moved by Mayor Dawe Seconded by Councillor Kim 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 Tuesday, June 13, 2017 Minutes Page 1 of 4 Finance Advisory Committee Meeting Minutes Wednesday, April 26, 2017 Page 2 of 4 3. Receipt of the Minutes Finance Advisory Committee Meeting Minutes of March 22, 2017 Moved by Councillor Kim Seconded by Mayor Dawe That the Finance Advisory Committee meeting minutes of March 22, 2017, be received for information. Carried 4. Delegations None 5. Consideration of Items 1. Review of Draft General Committee Report: FS17-021 – Creation of New Winter Control Reserve Fund Staff provided background to the draft report and noted that the proposed reserve fund would buffer any unpredictability and fluctuations respecting winter-related expenditures that may result in an operating budget variance. The Committee inquired about accountability and staff advised that a year-end reserve report would be submitted for Council’s approval. Moved by Councillor Kim Seconded by Mayor Dawe 1. That Draft General Committee Report No. FS17-021 be received; and 2. That the comments and suggestions of the discussion regarding draft General Committee Report No. FS17-021 be referred to staff and that the report, as amended, be brought forward to General Committee for approval. Carried Finance Advisory Committee Meeting Agenda Tuesday, June 13, 2017 Minutes Page 2 of 4 Finance Advisory Committee Meeting Minutes Wednesday, April 26, 2017 Page 3 of 4 2. Review of Draft General Committee Report: FS17-022 – Reserve Fund Strategy for External Legal and Occasional Human Resources Expenses Staff provided background to the draft report, which proposes the utilization of reserves to cover unplanned Legal or Human Resources shortfalls. Moved by Mayor Dawe Seconded by Councillor Kim 1. That Draft General Committee Report No. FS17-022 be received; and 2. That the comments and suggestions of the discussion regarding draft General Committee Report No. FS17-022 be referred to staff and that the report, as amended, be brought forward to General Committee for approval. Carried 3. Discussion: Public Art Contributions – Town Facilities Staff and Committee discussed the existing challenges in implementing a public art contribution program. The Committee concluded that the Town cannot proceed with a public art contribution program without establishing a policy that governs not only contributions, but also the delivery of a public art program. Staff agreed to investigate public sector best practices and present options to Council for consideration. Moved by Councillor Kim Seconded by Mayor Dawe 1. That the comments and suggestions of the discussion regarding Public Art Contributions – Town Facilities be referred to staff for consideration and action as appropriate. Carried 4. Extract from Council Meeting of March 28, 2017 Re: Finance Advisory Committee Meeting Minutes of January 25, 2017, and February 22, 2017 Finance Advisory Committee Meeting Agenda Tuesday, June 13, 2017 Minutes Page 3 of 4 Finance Advisory Committee Meeting Minutes Wednesday, April 26, 2017 Page 4 of 4 Moved by Mayor Dawe Seconded by Councillor Kim 1. That the Extract from Council Meeting of March 28, 2017, regarding the Finance Advisory Committee meeting minutes of January 25, 2017, and February 22, 2017, be received for information. Carried 6. New Business Councillor Kim requested that staff prepare a summary of the findings and lessons learned by Committee in its detailed budget reviews conducted during 2016 and 2017 to date. 7. Adjournment Moved by Councillor Kim Seconded by Mayor Dawe That the meeting be adjourned at 6:48 p.m. Carried Committee recommendations are not binding on the Town unless adopted by Council at a later meeting. Finance Advisory Committee Meeting Agenda Tuesday, June 13, 2017 Minutes Page 4 of 4 Town of Aurora DRAFT General Committee Report No. FS17-023 Subject: 2018 Budget Preparation Directions Prepared by: Dan Elliott, Director Financial Services - Treasurer Department: Financial Services Date: July 4, 2017 Recommendation 1. That Report No. FS17-023 be received; and 2. That the increase for the Aurora portion of the residential tax bill for the 2018 Base Operating budget be limited to the reported 12 months to June 2017 Consumer Price Index (CPI) for the Toronto Area; and 3. That all fees, rates and charges be indexed by the same CPI reported value unless precluded by legislation, and new revenue sources identified where possible; and 4. That new tax revenue from new buildings be incorporated into the base budget and be used to extend existing service levels to these new properties, residents and businesses; and 5. That for strategic priorities separately identified by Council, a further increase be levied for such new funding; and 6. That once the CPI factor is known, and the growth estimated, the Finance Advisory Committee provide each of the Library Board, the Cultural Centre Board, and the Historical Society a designated 2018 budget funding amount for their respective budget development work; and 7. That a “current plus three year forecast” operating budget be prepared, and include a staffing needs analysis and forecast for the same period. 8. That the phase-In budget strategy currently approved for Fire Services expansion be funded from within the inflationary and growth components of Finance Advisory Committee Meeting Agenda Tuesday, June 13, 2017 Item 1 Page 1 of 8 July 4, 2017 Page 2 of 8 Draft Report No. FS17-023 the Base Operating Budget, as applicable, with any excess planned increase being a separate component of the overall tax increase; and 9. That in addition to the base budget increase for inflation, up to 1% dedicated Fiscal Strategy tax levy increase be imposed to fund additional contributions to Infrastructure Reserves in accordance with the long range fiscal strategies adopted in the recent 10 Year Capital and Asset Management Plan, and any other fiscal strategy items. Executive Summary The report sets budget preparation directions and guidance as they prepare the draft 2018 Operating Budget for presentation to Budget Committee in the fall. • Council’s Budget Principles and Budget Process are set out in the foundational documents approved by Council in 2016, which are publicly available on the Town’s website and will serve as further guidance to staff in budget preparations. • Finance Advisory Committee has begun its detailed reviews of department operations which will allow more strategic reviews of the 2018 draft budget by Budget Committee. • A new budget consultation meeting has been implemented for 2018 process. • Fire Services budget continues to grow beyond inflation due to the phased plan to hire four new firefighters per year, leading to the opening of the new firehall, and as set out in the updated Fire Master Plan. The Town of Aurora previously adopted a budget strategy to phase the whole increase equally over a five-year period. This budget strategy will continue into 2018. • The Town’s fiscal strategy to add special levy increases in addition to CPI to meet needed increases for contributions to the infrastructure sustainability reserve funds and other purposes continues for 2018. These strategies are confirmed each year as part of the regular updates to the Town’s 10 Year Capital Investment Plan. Background In preparation for the 2018 Operating Budget preparations by staff, it is important for Council to set out its expectations with respect to tax impacts to the residents and businesses of the planned budget. During 2016 and 2017 budget preparations, such direction resulted in considerable efficiency gains in the process. When the targets were achieved by staff and presented, only minor changes were made by Council through the Finance Advisory Committee Meeting Agenda Tuesday, June 13, 2017 Item 1 Page 2 of 8 July 4, 2017 Page 3 of 8 Draft Report No. FS17-023 addition of some new priority special projects or initiatives. There additions were net zero to the tax rate from the draft of staff, as they were funded from reserves. Analysis Key principles for the 2018 budget development. (numbering corresponds to the numbered principles in the Council Budget Principles document) 2) The budget process will include the use of budget consultation approaches to allow residents the opportunity to provide input into budget priorities. 5) Council will undertake to complete the budget review and approval prior to the commencement of the 2018 calendar year. 8) Council will not rely on budget surplus from one year to support or mitigate budget pressures in the following budget year. 10) Council and staff will continually look to implement changes in technique, tools, or approaches in delivering all services and functions which would reduce cost, or improve efficiency or effectiveness of our work. 12) Council is committed to adequately fund infrastructure renewal through annual increases to infrastructure reserve contributions. These additional increases will be part of the Fiscal Strategy Budget, and may require overall budget increases beyond inflation for the residents of the Town. 13) The operating budget shall include outlooks for the next three years, for a total of four years, to allow the current budget to be considered within the context of the Town’s short term future funding requirements. 14) A special phasing budget will be used to continue to phase in the expected sharp increase in Fire Services costs with the anticipated addition of a new crew currently being added to Central York Fire Services. This special phasing budget will be funded from a portion of the growth revenue. 16) Inflation is recognized as having a direct impact on the Town’s costs of delivering its existing services. Residents and Council should expect their base taxes to increase by inflation each year, with the Fiscal Strategy Budget pushing this tax increase beyond inflation in efforts to reposition the Town’s long-range financial situation. 18) While the Town is intent on advancing strategic priorities, it is likely not possible to advance all issues in every year, and Council will need to make these key priority decisions in a scarce resource environment. Finance Advisory Committee Meeting Agenda Tuesday, June 13, 2017 Item 1 Page 3 of 8 July 4, 2017 Page 4 of 8 Draft Report No. FS17-023 19) Innovation, efficiencies, maintaining service excellence and service improvements come through the continuous learning and development of our staff. Training and development funding will be provided in the budget. 21) The Province is providing the opportunity for additional revenue to municipalities through deliberately holding the line on school tax rate increases. To accept this additional funding, the municipalities must increase their local portions by a rate higher than inflation, failing which, the opportunity to accept this additional funding is lost. The Finance Advisory Committee has reviewed some budget areas in detail Since its inception in 2015, the Finance Advisory Committee has reviewed the Parks, Recreation & Culture department, Corporate Accounts, and Planning and Building Services department budgets in detail. During the course of these reviews, certain budget concern areas were explored. Staff explained the budget right-sizing of certain budget lines that was undertaken as part of the 2017 budget process. These right sizes are not expected to occur during 2018 as no further concern areas were raised. The Advisory Committee has also reviewed the recently completed long term development activity forecast prepared by the Planning Division. Continuing concerns with respect to declining development activity were somewhat alleviated as the forecast shows continuing strong but slowly declining future growth activity, without the previously expected sharp declines in activity level. Staff in all departments will be working with these same projections in the preparation of their 2018 to 2021 budget and budget forecasts. A new Budget Consultation Meeting has been established Finance Advisory Committee and Council have approved a new Budget Consultation meeting which will take place May 31, 2017 to serve as input for the 2018 budget. Community groups and individuals will be encouraged to provide budget input directly at this special meeting of Budget Committee. They will be encouraged to provide suggestions for service level amendments, cost savings, or revenue ideas. In addition, community groups and individuals will have an opportunity to seek grant or support funding for new or different purposes at this meeting as well as services in kind if any. It is anticipated that new last minute pop-up requests occurring during the budget deliberations in the fall will be reduced, and that greater information and perspectives will be provided with respect to all such requests for Council consideration. Finance Advisory Committee Meeting Agenda Tuesday, June 13, 2017 Item 1 Page 4 of 8 July 4, 2017 Page 5 of 8 Draft Report No. FS17-023 Recommended budget preparation directions for 2018 Based on the highlighted budget principles, it is recommended that the following budget directions be approved for the preparation of the 2018 Operating Budget: Base Operating Budget: 1) The overall Aurora net residential tax bill increase for the Base Operating be limited to the reported July 2016 to June 2017 Consumer Price Index (CPI) for the Toronto Area. 2) All fees, rates and charges are to be indexed by the same CPI reported value, and new revenue sources identified. 3) New taxes from new community growth be incorporated into the base budget and be used to extend existing services to these new communities, residents and businesses. 4) For strategic priorities separately identified by Council, a further levy increase should be considered for such new funding. Council may consider a multi-year phased approach to increasing service levels. 5) After the CPI factor is known, the Library Board, the Cultural Centre Board, and the Historical Society each receive a clear budget funding allocation early in the budget development stage for their consideration when preparing their business plans. 6) A current plus three year forecast will be prepared, and will include a staffing needs analysis and forecast for the same period. Phase-In Budget 7) The phase-in budget strategy currently approved for Fire Services expansion will be funded from within the inflationary and growth components of the base operating budget, as applicable, with any excess planned increase being a separate component of the overall tax increase. Fiscal Strategy Budget 8) In addition to the base budget increase for inflation, a dedicated Fiscal Strategy tax levy increase will be imposed to fund additional contributions to Infrastructure Reserves in accordance with the long range fiscal strategies adopted in the Finance Advisory Committee Meeting Agenda Tuesday, June 13, 2017 Item 1 Page 5 of 8 July 4, 2017 Page 6 of 8 Draft Report No. FS17-023 recent Ten Year Capital and Asset Management Plan, reduce reliance on hydro reserve fund interest, and reduce budgetary reliance on unsustainable levels of supplementary tax revenues. Advisory Committee Review Finance Advisory Committee has reviewed a draft of this report at its May 24, 2017 meeting. Financial Implications It is anticipated that strong assessment base growth from new structures (not reassessment increases) will occur for another two years, following which growth is anticipated to begin to decline. New revenue from growth is necessary funding to extend existing services at their same levels to these new residents and businesses which results in additional costs, and in some cases, additional staffing requirements. Inflation is a reality that if not accommodated on the full revenue side (taxes and all other revenue sources), dilutes funding available for the maintenance of base services at their existing service levels, resulting in dilution of service. Accordingly, inflationary increases to taxes and service fees are necessary and should be expected by Council and taxpayers. The Town’s solid waste contract was recently competitively renewed, and unfortunately cost increases will result in a significant tax rate pressure to the Town which staff will attempt to accommodate within the base operating budget. In its Budget Principles document, Council has made very transparent that its reference inflationary indicator is the July to June annual CPI published by Statistics Canada for the Toronto area. This public declaration eliminates use of difference CPI values by staff or others during the budget review process. The CPI value for the end of June is expected to be published by Statistics Canada in late July or August. In addition to inflation, residents and Council need to recognize that infrastructure sustainability funding is a significant funding requirement for all municipalities and should be expected to be funded as an incremental beyond inflationary adjustment. The March CPI was reported at 2.1%. If this remains unchanged, the Base Budget would increase by a 2.1% tax increase, plus a 1% increase for Fiscal strategy. New services introduced by Council will add further increase pressure. Based on these agreed to principles, the potential tax rate impact could fall in the range of 3.1% to 3.5% depending on any new services to be funded. Finance Advisory Committee Meeting Agenda Tuesday, June 13, 2017 Item 1 Page 6 of 8 July 4, 2017 Page 7 of 8 Draft Report No. FS17-023 Communications Considerations The budget directions of Council are primarily aimed at staff as they prepare the draft 2018 budget. However, Communications will include some information to advise residents of Council’s budget expectations and the increase to taxes and fees. Link to Strategic Plan Developing the annual budget supports all aspects of the Strategic Plan. Specifically, this report supports the Plan principles of Leadership in Corporate Management, Leveraging Partnerships, and Progressive Corporate Excellence and Continuous Improvement. Alternative(s) to the Recommendation Council may choose to provide alternate budget preparation direction to staff. Conclusions Having clear budget preparation directions assisted with a smooth and highly successful budget process for 2016 and 2017. The entire budget development cycle is now supported by the foundational documents, now approved by Council, being the Council Budget Principles and Council Budget Process. Members of the public and Council are reminded that in-depth budget discussions with departments continues off-line throughout the year on a rotating basis by the Finance Advisory Committee as set out in the Council Budget Processes document. The Budget Directives recommended in this report are anticipated to result in a fair, progressive and affordable budget for the Town for 2018. The draft budget presented by staff will also include a forecast outlook for the following three years. Attachments None Previous Reports None, this is an annual report to Council in advance of staff budget preparations. Finance Advisory Committee Meeting Agenda Tuesday, June 13, 2017 Item 1 Page 7 of 8 Finance Advisory Committee Meeting Agenda Tuesday, June 13, 2017Item 1 Page 8 of 8 Memorandum Date: June 13, 2017 To: Finance Advisory Committee From: Stephanie Mackenzie-Smith, Corporate Communications Manager Re: Citizen Budget and Online Public Participation in the 2018 Budget Process Recommendation 1.That the memorandum regarding Citizen Budget and Online Public Participation in the 2018 Budget Process be received for information. Background Further to the Finance Advisory Committee meeting of Wednesday, February 22, 2017, staff in Corporate Communications have been investigating options for public input regarding the 2018 operating and capital budget process. During the February meeting, and afterwards, concerns were brought up by members of the committee and the public that the current Citizen Budget tool did not offer enough responses to represent a statistically valid sample. While we recognize that gaining statistically valid data will require a significant investment in time and resources, we would like to explore new community engagement methodologies with the goal of increasing responses. Additionally, Corporate Communications is reluctant to remove any existing opportunities for community engagement in policy making as we recognize that endeavours around participatory budgeting and public budget input are critical to transparency and accountability in local government. Corporate Communications has investigated multiple tools for the purposes of gathering feedback and this memo offers an update on the findings of Corporate Communications. 100 John West Way Box 1000 Aurora, Ontario L4G 6J1 Phone: 905-726-4744 Email: smackenzie-smith@aurora.ca www.aurora.ca Town of Aurora Corporate Communications Department Finance Advisory Committee Meeting Agenda Tuesday, June 13, 2017 Item 2 Page 1 of 5 June 13, 2017 Citizen Budget and Online Public Page 2 of 5 Participation in the 2018 Budget Process To date, four participatory budgeting and citizen feedback tools have been investigated. What follows is a brief overview of existing tools currently being utilized by the municipal sector, including our current vendor. Citizen Budget by Open North (www.citizenbudget.com) Cost: Minimum $7,500 per consultation Citizen Budget has been used by the Town of Aurora for the last two years and is currently used by the cities of London, Edmonton, Markham, Montreal and Saskatoon. As the committee is aware, Corporate Communications has received a significant amount of feedback from the public, the FAC committee and staff regarding challenges with the previous Citizen Budget tool. Those challenges included: • No ability to rank or prioritize spending • Does not immediately illustrate impact on the tax levy • Lack of refresh function requires a staff person to assist members of the public with the survey • Limited ability to demonstrate and explain the impact of funding changes In addition to the taxation tool that the Town has used in the past, Open North also offers a Balanced Budget module that allows residents to balance the budget using a series of sliders that demonstrate the impact on the bottom line. A sample of this module can be found online: http://regina.citizenbudget.com/ After meeting with Open North and assessing their different modules, it is clear that the Balanced Budget module offers more flexibility than the module the Town was utilizing. The Balanced Budget tool allows governments to set a recommended or approved budget amount and asks residents to increase or decrease funding to balance the budget. This Balanced Budget module is more intuitive for people to use and has the ability to act as an educational tool to assist residents in better understanding the challenges faced by Council and staff in maintaining or increasing services, while staying within the approved tax levy increase. The tool is both mobile and desktop friendly. However, the tool will not be suitable to leaving the iPad at a kiosk for ongoing citizen feedback as they are not capable of having the screen automatically refresh. The vendor is reluctant to make the change as Finance Advisory Committee Meeting Agenda Tuesday, June 13, 2017 Item 2 Page 2 of 5 June 13, 2017 Citizen Budget and Online Public Page 3 of 5 Participation in the 2018 Budget Process there is a concern people will repeatedly complete the survey and, thus, skew the results. As a static kiosk only has one IP address, this would prevent the vendor from identifying repeat users. The cost of $7,500 is for one budget consultation. Budget Allocator (www.budgetallocator.com) Cost: $500 for a single, three-month consultation Budget Allocator is a low-cost option, costing just $500 for a three-month consultation. The tool was used by the City of Mississauga in 2015, however, the company does not have an extensive list of government users nor have they added new clients since 2015/2016 budget processes. The tools is extremely basic, allowing users to increase or decrease spending by 5% or maintain existing spending. Corporate Communications does not feel there is significant value or education offered by this product, despite the low cost. Budget Simulator (www.budgetsimulator.com) Cost: Approximately $8,500 Budget Simulator is a UK-based company with host servers in Canada and a number of Canadian clients, including the Provinces of British Columbia and Alberta as well as the City of Calgary. Other clients include Melbourne, Australia; Edinburgh, Scotland; Liverpool City Council, Scottish Borders Council and more. Budget Simulator is slightly more evolved as a tool than the Balanced Budget module in Citizen Budget but both offer similar functionality and interface. The biggest difference between the two tools is that Budget Simulator allows governments to include more information and language around increases or decreases to budgets. For example, Budget Simulator explains to residents what a 5%, 10%, 15%, etc. increase or decrease in a budget would mean. The Balanced Budget module in Citizen Budget only provides one text field explaining what services would be affected by either an increase or decrease. A sample of the Budget Simulator can be found online: https://demo4.budgetsimulator.com/ Budget Simulator is fully mobile responsive and can be used on desktop computers, tablets and cell phones. Unlike the new module offered by Citizen Budget, Budget Simulator automatically refreshes once a submission has been made. This would allow the platform to be utilized at a kiosk; however, the risk is still there that it may result in multiple inputs by a single individual. Finance Advisory Committee Meeting Agenda Tuesday, June 13, 2017 Item 2 Page 3 of 5 June 13, 2017 Citizen Budget and Online Public Page 4 of 5 Participation in the 2018 Budget Process The current estimated cost for Budget Simulator is $8,500, plus taxes and includes unlimited consultations. The unlimited feature would allow the Town to utilize the tool for both capital and operating budgets and any other potential spends by the Town where public consultation may be considered. PlaceSpeak (www.placespeak.com/) Cost: No cost An alternative to the above mentioned tools would be PlaceSpeak, the online community engagement tool the Town will be utilizing for the Traffic Management Strategy. Staff has reservations about launching two critical consultations at the same time, however, it is a cost effective way of gathering feedback. In addition, it would allow us to access the audience already connected with PlaceSpeak as part of the Traffic Management Strategy. PlaceSpeak would give us access to polls, surveys and discussion forums to gather feedback in a less structured way than the above mentioned tools. The platform is not specifically designed as a budget tool so it would not offer functionality such as sliders to encourage residents to balance the budget, nor would users be able to see the impact of budget cuts or increases. Using the survey feature, residents could rank different priorities presented to them and add in free-flow feedback using the discussion forum tool. Polls could also be utilized to generate responses to short, simple questions. As this platform is a two-way communication and engagement platform, staff would be required to monitor feedback, moderate discussions and respond to questions. In addition, this tool does not offer the same educational opportunities as Balanced Budget module by Citizen Budget or Budget Simulator as there is no way to quickly and easily demonstrate the impact of budget spends on the tax levy. Summary At this point, Corporate Communications feels that the Balanced Budget Module from Open North and the Budget Simulator are both excellent tools. Budget Simulator is slightly more evolved and has the ability to be utilized in a kiosk fashion, which could be utilized in a supervised area such as near the staffed reception desks in our facilities. This would reduce the chance of multiple submissions from single users. However, the Finance Advisory Committee Meeting Agenda Tuesday, June 13, 2017 Item 2 Page 4 of 5 June 13, 2017 Citizen Budget and Online Public Page 5 of 5 Participation in the 2018 Budget Process price is $1,000 more than the Balanced Budget Module from Open North. We feel that in order to get the same response rate from the latter, staff would need to invest more time in attending public events with the iPad to solicit responses. Ultimately, the cost difference will be negligible and Corporate Communications feels confident in recommending either tool. Corporate Communications encourages Finance Advisory Committee members to visit the samples of both recommended options. We look forward to your feedback and are prepared to move forward with implementing budget consultations as quickly as possible. As always, questions, comments and concerns are encouraged. Please contact Stephanie Mackenzie-Smith, Manager, Corporate Communications at smackenzie- smith@aurora.ca or 905-727-3123 x4238 if you wish to discuss this matter further. Finance Advisory Committee Meeting Agenda Tuesday, June 13, 2017 Item 2 Page 5 of 5 Town of Aurora General Committee Report No. FS17-030 Subject: Summary of Budget Consultation Meeting May 31, 2017 Prepared by: Dan Elliott, Director of Financial Services - Treasurer Department: Financial Services Date: July 4, 2017 Recommendation 1.That Report No. FS17-030 be received; and 2.That all funding requests and budget suggestions received at the May 31, 2017 Budget Consultation meeting be considered in the preparation of the 2018 Operating and Capital budgets of the Town as outlined in Report No. FS17-030. Executive Summary As directed by Council, the Budget Committee held a special 2018 Budget Consultation meeting on May 31, 2017. Seven delegations spoke; six speaking on behalf of groups seeking financial funding, with the seventh delegate providing insight into an opportunity to increase the Town’s non-tax revenues. •This report summarizes each delegate’s comments/requests and provides an indication as to how these items may be addressed in the preparation of the 2018 draft operating and capital budgets by staff. •If all comments were to be approved in the budget, the net operating budget would increase by $34,650, and the capital budget would expand by $172,500. Background On May 31, 2018, Budget Committee held a new budget consultation meeting in order to hear budget input from the community, and in particular, to receive any financial requests for funding from groups or individuals. Six delegations registered by the agenda deadline, each with a funding request. A seventh delegation providing budget input only registered prior to the meeting and was added to the agenda. DRAFT Finance Advisory Committee Meeting Agenda Tuesday, June 13, 2017 Item 3 Page 1 of 6 July 4, 2017 Page 2 of 6 Report No. FS17-030 Analysis Six groups presented funding requests, while a seventh delegate provided a suggestion for increasing non-tax revenues. Aurora Cultural Centre The Aurora Cultural Centre presented a very short update on their recent work on their Strategic Plan update, their participation in the Town’s Cultural Partners review, and the recruitment of a new Executive Director for the Centre. The Centre was not in a position to provide any specific financial request of Council at this time, and will likely make a specific request during the similar Special Budget Consultation meeting next year. The Cultural Centre did raise a past issue regarding their request for a new exterior identifier ground sign. Previous federal funding commitments for such did not materialize. They asked that the Town consider including a new identifier sign for the Centre as part of the Town’s 2018 Capital Budget considerations at an estimated cost of $50,000. This matter has been referred to the IES Facilities Division for consideration during the 2018 Capital Budget preparations. Sport Aurora Sport Aurora presented a two-fold financial request. They seek base operational subsidy funding from the Town to allow them to continue their work, excluding additional services provided under the Sport Plan project. An annual subsidy amount is requested in the amount of $94,765 for 2018, and $96,375 for 2019. This funding would likely continue into the future in support of the work of this organization. In addition to the requested base operating subsidy funding, Sport Aurora also requested an extension of the Sport Plan Implementation project services contract for 2018 and 2019 in the amounts of $68,505 and $74,475 respectively. A separate report from staff is pending with respect to the Sport Plan funding for 2017. Subject to any different direction from Council, staff will include both the Sport Aurora base operating subsidy funding, and the Sport Plan Implementation funding as operating budget options for Council consideration during the 2018 budget deliberations. Aurora Historical Society The Aurora Historical Society brought forward awareness of a materials storage situation that may require additional funding to address. The Godfrey Collection is a unique collection of early Canadian books, letters and papers of medical interest and DRAFT Finance Advisory Committee Meeting Agenda Tuesday, June 13, 2017 Item 3 Page 2 of 6 July 4, 2017 Page 3 of 6 Report No. FS17-030 historical value. This collection has most recently been stored at the Armory, but at the request of the Town, must now be relocated to free up the Armoury for other uses. If other efforts fail to work, the Historical Society seeks an additional $5,000 to their 2018 annual operating grant from the Town to assist with the costs of storage fees and systems to store this relocating collection of books, letters and papers referred to as the Godfrey Collection. This request will be included as a budget option for consideration during the 2018 budget deliberations. An update from the Historical Society will be included at that time regarding the success of their other efforts to secure funding or storage alternatives. Aurora Chamber of Commerce The Aurora Chamber of Commerce presented a four event sponsorship opportunity for the Town to participate with them as follows: 1.2018 Aurora Chamber Home Show sponsorship in the amount of the facility rental fee waiver (2017 fee was $7,290 plus HST) to assist in eliminating the patron entry fee. 2.2018 Aurora Chamber Tech Expo, in the amount of $2,500, up from $2,000 for 2017. 3.2018 Aurora Chamber Business Women’s Summit sponsorship in the amount of $2,500 4.2018 Aurora Chamber Youth Entrepreneur Summit inaugural sponsorship in the amount of $2,500. A detailed outline of the exposures and features of each proposed sponsorship was included with the request. Staff will include these four separate items to Council during the operating budget as options for consideration. Aurora Community Arboretum The Arboretum is just concluding a ten year partnership with the Town in support of the development of the Arboretum. The last arrangement was a commitment of $100,000 per year to develop the arboretum, however, procedurally, the Arboretum would be the planner and coordinator for much of the work, however, all purchases of materials, labour, services or equipment would be undertaken by the Town Parks Division, and tracked separately through a separate Capital Project account, with new funding approved in the Capital Budget each year. As the old arrangement expires at the end of DRAFT Finance Advisory Committee Meeting Agenda Tuesday, June 13, 2017 Item 3 Page 3 of 6 July 4, 2017 Page 4 of 6 Report No. FS17-030 2017, the Arboretum is requesting a further 10 year commitment from the Town, seeking approximately $96,000 per year from the Town’s annual capital budget during this time. As has been the practice, Town staff will include the first/next annual request of $96,000 as part of the staff recommended 2018 capital budget. The Budget Committee will have the opportunity to approve or decline the request at that time. The Aurora Sports Hall of Fame The Aurora Sports Hall of Fame (ASHoF) has a twofold funding request. They are seeking the first of a long term base operating funding subsidy from the Town in the amount of $51,500 in order to allow the organization to grow and fulfil its strategic plan. Additionally, the ASHoF seeks one time capital project funding in the amount of $26,500 to expand the ASHoF at the SARC during 2018. Both funding requests of the ASHoF will be brought forward during the 2018 budget as budget options for consideration. Mr. Bob Lepp, Non-tax Revenue Opportunity Mr. Lepp presented to the Budget Committee his suggestions for increasing compliance with animal licensing and the associated revenues, which would help support park maintenance and capital improvements for Canine Commons. The comments presented by the delegate will be considered by staff in the Corporate Services Department as they prepare their 2018 Operating Budget submission. Any changes in revenue collection and compliance efforts will be reflected in the 2018 Operating Budget presented. Advisory Committee Review Finance Advisory Committee reviewed this report at its meeting of June 13, 2017. Financial Implications There are no immediate financial implications of this report. All budget funding requests and suggestions raised at the recent Budget Consultation meeting will be presented for consideration during the 2018 budget process as outlined in this report as follows: DRAFT Finance Advisory Committee Meeting Agenda Tuesday, June 13, 2017 Item 3 Page 4 of 6 July 4, 2017 Page 5 of 6 Report No. FS17-030 Group Purpose Operating Budget Request Capital Budget Request Aurora Cultural Centre Outdoor sign $50,000 Sport Aurora Operating Subsidy Sport Plan Implementation $94,765 68,505 Aurora Historical Society Storage solution for Collection $5,000 Chamber of Commerce Sponsorship of four events $14,790 Aurora Community Arboretum Community Partnership funding (first of new ten year) $96,000 Aurora Sports Hall of Fame Operating Subsidy Capital Expansion $51,500 $26,500 Mr. Bob Lepp Increased animal control revenues ($200,000) Totals $34,560 $172,500 Communications Considerations None required at this time. Link to Strategic Plan Summarizing and advising of the dispensation of each budget request or suggestion raised at the Budget Consultation meeting supports the Strategic Plan principle of excellence in municipal management. DRAFT Finance Advisory Committee Meeting Agenda Tuesday, June 13, 2017 Item 3 Page 5 of 6 DRAFTFinance Advisory Committee Meeting Agenda Tuesday, June 13, 2017Item 3 Page 6 of 6 2018 Budget Committee Calendar with Narratives Special Budget Consultation Meeting Date: Wednesday, May 31, 2017 Time: 6:00pm Where: Council Chambers Agenda: The budget committee will accept suggestions as to on how the Town could increase non-tax revenues and/or save money on its delivery of existing processes and services. The budget committee will also ask community groups, organizations or individuals seeking funding or services in-kind from the Town to make a presentation of any requests of this nature to the committee for its consideration for inclusion in the upcoming 2018 budget process. Capital Budget Review Date: Tuesday, September 26, 2017 Time: 7:00pm to 10:30pm Where: Council Chambers Agenda: The Treasurer will kick off the Budget Committee’s review of the Town’s draft Ten Year Capital Investment Plan and draft Detailed 2018 Capital Plan. Also, budget material will be distributed to committee members for their review prior to their first scheduled formal review meeting. Capital Budget Review Date: Saturday, October 14, 2017 Time: 9:00am to 4:00pm Where: Council Chambers Agenda: The Budget Committee will undertake its review of the Town’s Ten Year Capital Investment Plan as well as its draft Detailed 2018 Capital Plan. Council – Capital Budget Approval Date: Tuesday, October 24, 2017 Time: 7:00pm to 10:30pm Where: Council Chambers Agenda: The final 2018 Capital Budget will be brought to Council for its review and approval. Operating Budget Date: Tuesday, November 7, 2017 Time: 7:00pm to 10:30pm Where: Council Chambers Agenda: The Treasurer will kick off the Budget Committee’s review of the Town’s draft 2018 plus outlook Years (2019 to 2021) operating budget. Also, budget material will be distributed to committee members for their review prior to their first scheduled formal review meeting. Finance Advisory Committee Meeting Agenda Tuesday, June 13, 2017 Item 4 Page 1 of 2 Operating Budget Date: Monday, November 18, 2017 Time: 9:00am to 4:00pm Where: Council Chambers Agenda: The Budget Committee will commence its review of the Town’s draft 2018 Operating Budget. Operating Budget Date: Monday, November 20, 2017 Time: 7:00pm to 10:30pm Where: Council Chambers Agenda: The Budget Committee will continue its review of the Town’s draft 2018 Operating Budget. Operating Budget Date: Monday, November 27, 2017 Time: 7:00pm to 10:30pm Where: Council Chambers Agenda: The Budget Committee will continue its review of the Town’s draft 2018 Operating Budget. The Aurora Public Library Board, Aurora Cultural Centre Board and Aurora Historical Society Board will make their budget presentations. Council – Operating Budget Approval Date: Tuesday, December 12, 2017 Time: 7:00pm to 10:30pm Where: Council Chambers Agenda: The final 2018 Operating Budget will be brought to Council for its review and approval. Finance Advisory Committee Meeting Agenda Tuesday, June 13, 2017 Item 4 Page 2 of 2