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AGENDA - Finance Advisory Committee - 20191218Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 5:30 p.m. Holland Room Aurora Town Hall Public Release December 11, 2019 Town of Aurora Finance Advisory Committee Meeting Agenda Date: Wednesday, December 18, 2019 Time and Location: 5:30 p.m., Holland Room, Aurora Town Hall 1. Approval of the Agenda 2. Declarations of Pecuniary Interest and General Nature Thereof 3. Receipt of the Minutes Finance Advisory Committee Meeting Minutes of September 25, 2019 Recommended: That the Finance Advisory Committee meeting minutes of September 25, 2019, be received for information. 4. Delegations 5. Consideration of Items 1. Memorandum from Financial Management Advisor Re: Review of Investment Policy Statement under Prudent Investor Regime Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Page 2 of 2 Recommended: 1. That the memorandum regarding Review of Investment Policy Statement under Prudent Investor Regime, be received; and 2. That the Finance Advisory Committee provide staff with feedback regarding the Investment Policy Statement for the Town of Aurora. 2. Memorandum from Project Management Office Re: Town’s Major Capital Projects Update Recommended: 1. That the memorandum regarding Town’s Major Capital Projects Update be received for information. 3. Distribution and Introduction of Detailed Financial Budget Information Re: Community Services Department Recommended: 1. That the detailed financial budget information for community Services Department be received and deferred for discussion and detailed review at the January 21, 2020 meeting of the Finance Advisory Committee. 6. New Business 7. Adjournment Town of Aurora Finance Advisory Committee Meeting Minutes Date: Wednesday, September 25, 2019 Time and Location: 5:30 p.m., Holland Room, Aurora Town Hall Committee Members: Councillor Michael Thompson (Chair), Councillor Harold Kim (arrived 5:50 p.m.), Mayor Tom Mrakas Member(s) Absent: None Other Attendees: Councillor Rachel Gilliland, Doug Nadorozny, Chief Administrative Officer, Techa van Leeuwen, Director of Corporate Services, Rachel Wainwright-van Kessel, Director of Finance, Jason Gaertner, Manager, Financial Management Services, Linda Bottos, Council/Committee Coordinator The Chair called the meeting to order at 5:45 p.m. 1. Approval of the Agenda Moved by Mayor Mrakas Seconded by Councillor Thompson 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, R.S.O. 1990, c. M.50. Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Minutes Page 1 of 4 Finance Advisory Committee Meeting Minutes Wednesday, September 25, 2019 Page 2 of 4 3. Receipt of the Minutes Finance Advisory Committee Meeting Minutes of June 26, 2019 Moved by Mayor Mrakas Seconded by Councillor Thompson That the Finance Advisory Committee meeting minutes of June 26, 2019, be received for information. Carried 4. Delegations None 5. Consideration of Items 1. Review of Detailed Financial Budget Information Re: Corporate Services Staff provided an overview of the line-by-line analysis and year-to-date comparison of the final approved 2019 budget for the Corporate Services department, including detailed explanations regarding the highlighted budget variances. Staff responded to questions and noted that the Information Technology Strategic Plan represents the single greatest budget pressure for the department. Other budget pressures identified to the Committee included incremental staff resource requirements in the divisions of Access Aurora, By- law Services, and Legal Services relating to the Town maintaining its existing services levels in an environment of growing demand. Moved by Councillor Kim Seconded by Mayor Mrakas 1. That the comments and suggestions of the Review of Detailed Financial Budget Information for Corporate Services be received and referred to staff for consideration and action as appropriate. Carried Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Minutes Page 2 of 4 Finance Advisory Committee Meeting Minutes Wednesday, September 25, 2019 Page 3 of 4 2. Memorandum from Project Management Office Re: Town’s Major Capital Projects Update Staff gave a brief overview of the memorandum and status of the Town’s current major capital projects, noting that all projects are on schedule and on budget, except for Fire Hall 4-5, which remains in the procurement process and is to be redesigned in order to meet the budget. Moved by Councillor Kim Seconded by Mayor Mrakas 1. That the memorandum regarding Town’s Major Capital Projects Update be received for information. Carried 3. Draft 2020 Detailed Capital Investment Plan Staff responded to several questions on items in the summary sheets provided for the 2020 Draft 1 Repair and Replacement, Growth and New, and Studies and Other Capital Projects, which will be considered at the Budget Committee meeting of October 5, 2019. Moved by Mayor Mrakas Seconded by Councillor Kim 1. That the Town’s Draft 2020 Detailed Capital Investment Plan be received for information. Carried 6. New Business The Chair requested that staff encourage Council members to contact staff on any clarification needed regarding the 2020 Capital Budget binder content prior to the upcoming Budget Committee meeting. Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Minutes Page 3 of 4 Finance Advisory Committee Meeting Minutes Wednesday, September 25, 2019 Page 4 of 4 7. Adjournment Moved by Councillor Kim Seconded by Mayor Mrakas That the meeting be adjourned at 6:32 p.m. Carried Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Minutes Page 4 of 4 Memorandum Date: December 18, 2019 To: Finance Advisory Committee From: Laura Sheardown, Financial Management Advisor, Finance Re: Review of Investment Policy Statement under Prudent Investor Regime Recommendation 1. That the memorandum regarding a review of Investment Policy Statement under Prudent Investor Regime be received; and 2. That the Finance Advisory Committee provide staff with feedback regarding the Investment Policy Statement for the Town of Aurora. Background Investing under the Municipal Act, 2001 and O. Reg 438/97 is divided into the prescribed list of securities which is more commonly referred to as the Legal List and the Prudent Investor regime. The Prudent Investor regime gives the municipality access to a wider variety of investments, but also includes a new governance model. Under the Prudent Investor regime, control and management of the funds not immediately required by The Town of Aurora is given to ONE Joint Investment Board to invest on behalf of the municipality. Funds that are defined as being needed immediately by the Town of Aurora continue to follow the investing rules and limitations outlined through the Legal List. On November 19, 2019, Council reviewed the benefits of the new Prudent Investor (PI) regime – FS19-033 Prudent Investor Option Analysis. Figure 1 – Overview of PI Process – outlines the steps in implementing the PI regime under the Regulation. The establishment of ONE JIB involves a three step Council approval process outlined below: 100 John West Way Box 1000 Aurora, Ontario L4G 6J1 Phone: 905-727-4772 Email: jgaertner@aurora.ca www.aurora.ca Town of Aurora Financial Services Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 1 Page 1 of 30 Review of Investment Policy Statement under Prudent Investor Regime December 18, 2019 Page 2 of 7 • Adoption of an Investment Policy Statement (IPS) which outlines the manner in which the Town of Aurora will invest under the PI regime and which is based on the completed Municipal Client Questionnaire • Execution of the Initial Formation Agreement which establishes ONE JIB and which is described in a separate report • Execution of the ONE JIB Agreement which establishes the relationship between the Town of Aurora, ONE JIB and ONE Investment and which is described in a separate report. These steps must be undertaken by each of the founding municipalities if they wish to pursue the PI regime, which begins with establishing ONE JIB. Once the Authorizing By-law is passed by all of the founding municipalities ONE JIB will hold its inaugural meeting. After ONE JIB has met and executed the ONE JIB Agreement, the founding municipalities can also all enter into the ONE JIB Agreement following which the founding municipalities can pass a by-law (Prudent Investor Enabling By-law) officially opting into the PI regime as at the Prudent Effective Date set out therein. The Prudent Investor Enabling By-law which Council will pass is the last step to adopting the PI regime and can be viewed as a housekeeping matter. After the Prudent Effective Date that is set out in the Prudent Investor Enabling By-law, Town of Aurora can start transferring its money and investments that are not required immediately to ONE JIB for investing in accordance with the PI regime. • Execution by ONE JIB of the ONE JIB Agreement (after which all the founding municipalities also execute the ONE JIB Agreement) Adopt an IPS Approve Formation of ONE JIB Adopt Prudent Investor Enabling By-Law Introduce PI Regime ONE JIB has first meeting Figure 1 - Overview of Prudent Investor Process Legend: Council Steps ONE JIB Involves:  Approval of formation of ONE JIB  Approval of ONE JIB Agreement  Alignment with other founding municipalities Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 1 Page 2 of 30 Review of Investment Policy Statement under Prudent Investor Regime December 18, 2019 Page 3 of 7 Currently there are eight municipalities, outlined in the table below, that are moving forward together to establish ONE JIB. To create ONE JIB, a minimum of two municipalities, with a combined total of at least $100 million in money and investments that are not required immediately must each have their Council adopt an IPS and enter into the necessary agreements. Municipality Money and Investments Not Required Immediately (Millions) Town of Aurora 35 Town of Innisfil 15 City of Kenora 50 District of Muskoka < 100 Town of Whitby 100 Town of Bracebridge 4 Town of Huntsville < 15 Essex County < 85 Total ~ 439 Currently, the Town of Aurora is in the process of adopting and Investment Policy Statement that encompasses not only the structure required for the investment of long-term funds under the Prudent Investor regime but also the for the short-term funds that will remain under the control of Town Staff. Analysis Currently, the Town of Aurora is in the process of adopting and Investment Policy Statement (IPS) that encompasses not only the structure required for the investment of long-term funds under the Prudent Investor regime but also the for the short-term funds that will remain under the control of Town Staff. The IPS is a high level and comprehensive overview and it is through this document that Council provides the strategic direction that will guide ONE JIB’s Investment Plan design and implementation. It is through this document that Council ultimately controls its Money Not Required Immediately (MNRI). At a minimum, Council will be required to review and, if necessary, amend, this document annually. However, if Council priorities change or fiscal circumstances require, the IPS can be reviewed and amended at any point in time. It is the Town’s responsibility to notify ONE JIB of any changes to the IPS so that the Investment Plan can be updated accordingly. Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 1 Page 3 of 30 Review of Investment Policy Statement under Prudent Investor Regime December 18, 2019 Page 4 of 7 The IPS is a comprehensive statement of the Town’s investment policy and constitutes Council’s investment directions for Town’s funds in which it has a direct or indirect interest including, without limitation, its MNRI and its money that is required immediately. Investment Policy Statement Details The following areas of the IPS are outlined in more detail below: 1. Glossary 2. The purpose of the IPS and the legislative framework 3. Distinction between money required immediately (within 18 months) and MNRI (beyond 18 months) 4. The roles of municipal staff, ONE Investment and ONE JIB 5. Investment Objectives and draft investment mix - Short-Term Funds (Money Required Immediately – MRI) - Long-Term Funds (MNRI) - Investment Management - Transitional plan to transfer control and management of money and investments not required immediately to ONE JIB - Investment Constraints - Performance Monitoring, Rebalancing and Management 6. Administrative Policies 7. Modification and Updates to the IPS 1. Glossary Defines terms used in the IPS. 2. The purpose of the IPS and legislative framework Provides details regarding the purpose of the IPS, how it fits in the governing legislation, and provides an overview of the PI regime. 3. Distinction between money required immediately and MNRI Describes the distinction between money required immediately (MRI) and MNRI. ONE Investment recommends using a time-based definition for determining the Town’s MNRI. ONE Investment also recommends setting a cut-off point between 12 to 18 months for MNRI. Staff recommends that council use a time-based definition for the cut-off between MRI and MNRI of 18 months. 4. The roles of municipal staff and ONE JIB Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 1 Page 4 of 30 Review of Investment Policy Statement under Prudent Investor Regime December 18, 2019 Page 5 of 7 Outlines the distinction between the roles of Town staff and ONE JIB with respect to investments. 5. Investments This section details the investment objectives, risk tolerance, and liquidity needs of Town on a category basis. Short-Term Funds (MRI) Includes the Short-Term Fund investment objectives and eligible investments. Long-Term Funds (MNRI) Includes the Long-Term Fund investment objectives and eligible investments. Investment Management Outlines how both the Short-Term and Long-Term funds will be managed. Short-Term Funds will continue to be managed by Town Staff in accordance with the Delegation of Authority, By-law #6219-19, Schedule C. Long-Term Funds will be controlled and managed by ONE JIB. Transitional Plan to transfer control and management of money and investments not required immediately to ONE JIB (see s. 5.5 of the IPS) This section details how the Town will transfer its money and investments not required immediately to ONE JIB on the Prudent Effective Date (as such date is set out in the Prudent Investor Enabling By-law). Some of the Town’s investments are in illiquid instruments such as [term deposits, guaranteed investment certificates or bonds] issued by a bank. These will be transferred to ONE JIB to be held to maturity and invested upon receipt of cash proceeds. Investment Constraints This sections includes guidelines and limitations on how Council would like to see funds constrained. Environmental, Social and Governance Considerations (see s. 5.6.1 of the IPS) Increasingly investors are including environmental, social and governance (ESG) considerations into their investment strategies. This is often used to mitigate risks associated with ESG factors but can also be used to ensure investments are aligned with the personal values and ethics of the investor (e.g., not investing in companies with a poor record of labour standards). Table 1 contains examples of ESG issues. Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 1 Page 5 of 30 Review of Investment Policy Statement under Prudent Investor Regime December 18, 2019 Page 6 of 7 Table 1: Examples of ESG Issues1 Environmental Issues Social Issues Governance Issues  Climate change and carbon emissions  Customer satisfaction  Board composition  Air and water pollution  Data protection and privacy  Audit committee structure  Biodiversity  Gender and diversity  Executive compensation  Deforestation  Employee engagement  Lobbying  Energy efficiency  Community relations  Political contributions  Waste management  Human rights  Whistleblower schemes  Water scarcity  Labour standards ONE JIB is required to explore how investment managers are implementing responsible investing principles at the time of hiring and during periodic reviews. It may report on results periodically, if requested. Accommodating specific ESG considerations may not be possible either due to availability or to costs. Council may choose to outline specific ESG issues it would prefer to avoid from a risk perspective or values perspective; however, the design of the pooled funds in which ONE JIB will be investing will likely prohibit the accommodation of these requests and would therefore prohibit ONE JIB from effectively investing on behalf of the Town. Staff recommends not imposing specific constraints in this section. Securities Lending (see s. 5.6.2 of the IPS) Securities lending is a practice where investors lend the ownership of securities to other investors or institutions for a fee. This allows the investor to generate additional revenues from its investments. Voting rights also transfer with the temporary transfer of ownership of the securities. Many investment managers of pooled funds include securities lending as an option in their policies. This section permits ONE JIB to invest in pooled funds that may leverage the option to lend securities to maximize investment related revenues. Derivatives Approach (see s. 5.6.3 of the IPS) ONE JIB will not use derivatives for speculative purposes. Derivatives may be used for the investment of Long-Term Funds where they are fully covered by a 1 CFA Institute (October 2015). ENVIRONMENTAL, SOCIAL, AND GOVERNANCE ISSUES IN INVESTING: A Guide for Investment Professionals. https://www.cfainstitute.org/-/media/documents/article/position-paper/esg-issues-in-investing-a-guide-for-investment-professionals.ashx Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 1 Page 6 of 30 Review of Investment Policy Statement under Prudent Investor Regime December 18, 2019 Page 7 of 7 backing asset, e.g., as for currency or other hedging, to change portfolio duration or in covered call strategies. Performance Monitoring, Rebalancing and Management (see s. 5.7 of the IPS) Based on the IPS, ONE JIB will adopt an Investment Plan for the Town. The draft Investment Plan will be developed by ONE Investment staff in conjunction with Town’s finance staff. Based on the Town’s investment objectives, risk tolerance, need for liquidity, and other objectives, ONE JIB will set an investment mix. From time to time, ONE JIB may need to rebalance the Town’s investments and may also rebalance if percentage allocations fall out of the chosen ranges for the various asset classes. ONE JIB will use cash inflows/outflow (e.g. dividends) to accomplish this where possible; however, if this is insufficient ONE JIB may need to reallocate one class to another through the sale and purchase of investments to ensure that the asset mix conforms to the Investment Plan and the IPS. ONE JIB will use asset mix ranges that will give it the flexibility to rebalance in a manner that is practicable and prudent. 6. Reporting (see s. 6.6 of the IPS) The Regulation requires that ONE JIB report to Council annually, or more frequently if specified by Council. The standard reporting provided by ONE JIB will be fully compliant with municipal legislation. As such, the annual report will contain a statement from the treasurer regarding compliance with the Town’s IPS and Investment Plan, performance reporting for the period covered by the report, and any other information deemed pertinent in the opinion of the treasurer. Staff is recommending that Council make no modifications to this section with the intention of receiving reports annually. Council can modify this decision at any time by revising the IPS. 7. Modification and Updates to the IPS (see s. 7.2 of the IPS) Council can review and modify the IPS at any time if deemed necessary due to a change in circumstances. As per the Regulation, Council must conduct an annual review of the IPS and, if necessary, update it accordingly. Staff recommends that Council remain with the annual review schedule unless an event triggers a change in its MNRI, its need for liquidity, or its risk tolerance. Attachments Attachment #1: Town of Aurora’s Draft Investment Policy Statement Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 1 Page 7 of 30 13197104.14 INVESTMENT POLICY STATEMENT FOR THE CORPORATION OF THE TOWN OF AURORA (the “Municipality”) DECEMBER 18, 2019 Attachment #1 Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 1 Page 8 of 30 ii 13197104.14 TABLE OF CONTENTS OVERVIEW ................................................................................................................................................. 1 1. GLOSSARY AND DEFINITIONS .................................................................................................... 1 2. PURPOSE AND LEGISLATIVE FRAMEWORK ........................................................................... 5 2.1 Purpose of Policy ........................................................................................................................ 5 2.2 Governing Legislation ................................................................................................................ 5 2.3 Prudent Investor Standard ........................................................................................................ 6 3. MONEY REQUIRED IMMEDIATELY AND MONEY NOT REQUIRED IMMEDIATELY ......... 6 3.1 Determination of MNRI and MRI .............................................................................................. 6 3.2 Overview of Portfolios ................................................................................................................ 7 4. ROLES AND RESPONSIBILITIES ................................................................................................. 7 4.1 Role of ONE JIB ......................................................................................................................... 7 4.2 Role of Municipal Staff ............................................................................................................... 8 5. INVESTMENT .................................................................................................................................... 8 5.1 MRI: Short-Term Funds ............................................................................................................ 8 5.1.1 Short-Term Funds: Investment Objectives .................................................................... 8 5.1.2 Short-Term Funds: Eligible Investments ........................................................................ 9 5.2 MNRI: Long-Term Funds ......................................................................................................... 10 5.2.1 Long-Term Funds: Investment Objectives .................................................................... 10 5.2.2 Long-Term Funds: Eligible Investments ....................................................................... 11 5.2.3 Long-Term Funds: Sinking Funds ................................................................................. 11 5.2.4 Long-Term Funds: Local Distribution Corporation (LDC) Securities ........................ 11 5.2.5 Long-Term Funds: Other ................................................................................................. 11 5.3 Third Party Trust Funds and Designated Funds .................................................................. 12 5.4 Investment Management ......................................................................................................... 12 5.4.1 Investment Management of Short-Term Funds ........................................................... 12 5.4.2 Investment Management of Long-Term Funds ............................................................ 12 5.5 Transition to Prudent Investor Regime .................................................................................. 12 5.6 Investment Constraints ............................................................................................................ 12 5.6.1 Environmental, Social and Governance (ESG) Investing ........................................... 12 5.6.2 Securities Lending ............................................................................................................ 13 5.6.3 Derivatives ......................................................................................................................... 13 5.6.4 Use of Leverage ............................................................................................................... 13 5.6.5 Pooled Funds .................................................................................................................... 13 Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 1 Page 9 of 30 iii 13197104.14 5.6.6 Currency Hedging ............................................................................................................. 13 5.7 Performance Monitoring, Rebalancing and Management .................................................. 14 5.7.1 Short-Term Funds ............................................................................................................ 14 5.7.2 Long-Term Funds ............................................................................................................. 14 6. ADMINISTRATIVE POLICIES ....................................................................................................... 14 6.1 Flow of Funds and Annual Municipal Budget ....................................................................... 14 6.1.1 Transfer to ONE JIB as Part of Budget Process ......................................................... 14 6.1.2 Transfer to Municipality as Part of the Budget Process .............................................. 14 6.2 Flow of Funds Otherwise than through the Budget Process ............................................. 14 6.2.1 Surplus Funds ................................................................................................................... 14 6.2.2 Contingencies ................................................................................................................... 15 6.3 Valuation of Investments ......................................................................................................... 15 6.4 Voting Rights ............................................................................................................................. 15 6.5 Internal Controls ....................................................................................................................... 15 6.6 Custodians ................................................................................................................................. 15 6.7 Reporting ................................................................................................................................... 16 6.7.1 Short-Term Funds ............................................................................................................ 16 6.7.2 Long-Term Funds ............................................................................................................. 16 7. APPROVAL, SUBSEQUENT MODIFICATIONS AND EFFECTIVE DATE ............................ 17 7.1 Revocation / Amendment of Previous Investment Policy ................................................... 17 7.2 Modifications to the IPS ........................................................................................................... 17 7.3 Effective Date ............................................................................................................................ 17 Appendix I: ONE JIB Agreement .......................................................................................................... 18 Appendix II: ONE External Portfolio Manager Mandates .................................................................. 19 Schedule A Third Party Trust Funds and Designated Funds ........................................................... 20 Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 1 Page 10 of 30 13197104.14 Town of Aurora Investment Policy Statement OVERVIEW Municipalities that are subject to the Municipal Act, 2001 (the “Act”) have no general power to invest money. Such powers must be found either in express provisions of the Act or by necessary implication. Historically, municipalities that are subject to the Act had very limited express investment powers under section 418 of the Act. Section 418 continues to apply to all municipalities that are subject to the Act unless they elect to pass a by-law pursuant to the new section 418.1. Section 418 of the Act provides that “money that is not required immediately” (MNRI) can only be invested in securities prescribed by the Province in O. Reg. 438/97 (the “Regulation”). These prescribed securities are generally referred to as the “Legal List Securities” and are included in Part I of the Regulation. Effective January 1, 2019, the new section 418.1 of the Act came into force. Section 418.1 provides that MNRI can be invested under that section in any security, provided that in making the investment the municipality exercises the care, skill, diligence and judgment that a prudent investor would exercise in making the investment. If a municipality elects to pass a by-law under section 418.1, the effect will be that its MNRI must be invested in accordance with the prudent investor regime. The rules, conditions and procedures that apply to investments under section 418.1 are set out in Part II of the Regulation. Investing MNRI in Legal List Securities or in accordance with the prudent investor regime are mutually exclusive alternatives. That is to say, section 418 does not apply to a municipality that has adopted the prudent investor regime under section 418.1. Every municipality, regardless of whether section 418 or 418.1 applies to it, has MNRI and also money that is required immediately (MRI). Municipalities retain the management and control of their MRI. The Act does not include any express provisions that deal with the investment of MRI. However, it is consistent with prudent practice to invest such money until it is actually spent, in order to preserve the capital value of that money. Accordingly, it is necessarily implied that a municipality has the power to invest such money on a short term basis. Because the Act is silent as to how municipalities are to deal with MRI and because of the historical investment powers under the Act, a conservative approach is to invest MRI in appropriate Legal List Securities. Municipalities that elect to pass a by-law pursuant to the new section 418.1 include in their investment policy (i) the basis upon which they distinguish between MNRI and MRI, and (ii) principles governing the investment of each category of money. This Investment Policy Statement (IPS) is intended to respond to the foregoing requirements. 1. GLOSSARY AND DEFINITIONS The following capitalized terms are defined terms which have the meanings set out below: Act: means the Municipal Act, 2001, S.O. 2001, c. 25, as amended from time to time. Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 1 Page 11 of 30 2 13197104.14 Agent: means any administrator, Custodian, payment servicer, portfolio manager, investment counsel, consultant, banker, broker, dealer or other service provider engaged or appointed by ONE JIB and authorized by ONE JIB to exercise any of the functions of ONE JIB pursuant to a written agreement, in the manner and to the extent provided in the Regulation and without limiting the generality of the foregoing, Agent includes ONE Investment. Asset Mix (or Asset Allocation): means the proportion of each asset class in a portfolio. Asset classes include bank deposits, money market securities, bonds and equities, among other things. Authorizing By-law: means a by-law of a Founding Municipality which authorizes: (i) the entering into of the Initial Formation Agreement; (ii) the establishment of ONE JIB; (iii) the approval of the Client Questionnaire and the adoption of the IPS; and (iv) the entering into of the ONE JIB Agreement. Benchmark: means an index that is representative of a specific securities market (e.g. the S&P/TSX Composite Index, the FTSE/TMX 91 Day T-bill Index, etc.) against which investment performance can be compared. Performance benchmarks refer to total return indices in Canadian dollar terms. CFA Institute: refers to the global, not-for-profit professional association that administers the Chartered Financial Analyst (CFA) and the Certificate in Investment Performance Measurement (CIPM) curricula and examination programs worldwide, publishes research, conducts professional development programs, and sets voluntary, ethics-based professional and performance reporting standards for the investment industry. Custodian: means a specialized financial institution that is responsible for safeguarding a municipality's investments and is not engaged in "traditional" commercial or consumer/retail banking. Global custodians hold investments for their clients in multiple jurisdictions around the world, using their own local branches or other local custodian banks ("sub-custodians" or "agent banks"). Environmental, Social and Governance (ESG) Investing: means considering and integrating ESG factors into the investment process, rather than eliminating investments based on ESG factors alone. Integrating ESG information can lead to more comprehensive analysis of a company. External Portfolio Managers: means external third-party investment management firms whose investment offerings are accessed by ONE JIB directly or through services provided to a Pooled Fund. External Portfolio Managers are agents authorized by ONE JIB in accordance with Part II of the Regulation. Internal Controls: means a system of controls that may include authorities, policies, procedures, separation and segregation of duties, compliance checks, performance measurement and attribution, reporting protocols, measures for safekeeping of property and data, and the audit process. Investment Plan: means the investment plan applicable to the Long-Term Funds investments and adopted by ONE JIB under the Regulation, as it may be amended from time to time. Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 1 Page 12 of 30 3 13197104.14 Investment Policy Statement (IPS): means the investment policy applicable to the Municipality’s investments adopted and maintained by the Council of the Municipality for Long-Term Funds under the Regulation, and for Short-Term Funds, as the same may be amended from time to time. The IPS may also apply to the money and investments held by the Municipality for the benefit of persons other than the Municipality itself and may make reference to source(s) of money in which the Municipality may have an indirect interest but which the Municipality has no authority to invest. JIB: is short for Joint Investment Board and means a joint municipal service board that is established under section 202 of the Act by two or more municipalities for the purposes of Part II of the Regulation. Legal List Securities: means the securities and other investments and financial instruments that are included from time to time in Part I of the Regulation. Local Distribution Corporation or LDC: means a corporation incorporated under section 142 of the Electricity Act, 1998. Long-Term Funds: means the Municipality’s money that is to be used to meet financial obligations that become due more than 18 months following the date of receipt of such money and is characterized as money that is not required immediately by the Municipality as described in section 5.2. Monies that are Long Term Funds will be invested in accordance with the Prudent Investor Standard. MNRI: means money that is not required immediately Modern Portfolio Theory: means a theory of portfolio management that looks towards the portfolio as a whole, rather than towards the prudence of each investment in the portfolio. This is found in the CFA Institute Standards of Practice Handbook. MRI: means money required immediately. Municipality: means The Corporation of the Town of Aurora. ONE JIB: means ONE Joint Investment Board, established by certain founding municipalities under section 202 of the Act as a JIB for purposes of Part II of the Regulation, which is the duly appointed JIB for the Municipality, as constituted from time to time and which acts in accordance with the Act, the Regulation, the ONE JIB Agreement, including the Terms of Reference, this IPS and the Investment Plan. ONE JIB Agreement: means the agreement effective as of June 1, 2020, entered into in accordance with the requirements of the Regulation, pursuant to which ONE JIB has control and management of the Municipality’s Long-Term Funds. Operational: means the funds required to meet annual operating and capital plan needs. Participating Municipality: means from time to time each of the municipalities for whom ONE JIB acts as the JIB under the terms of the ONE JIB Agreement. Pooled Fund: means a unit trust established under a trust instrument, generally not available to the public, in which institutional, sophisticated or high net worth investors Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 1 Page 13 of 30 4 13197104.14 contribute funds that are invested and managed by an External Portfolio Manager. Funds are pooled or combined with funds of other investors. Portfolio: means any collection of funds that are grouped together and required for specific purposes. Proxy Voting: means a legal transfer to another party of a shareholder's right to vote thereby allowing shareholders who cannot attend meetings to participate. External Portfolio Managers usually vote proxies on behalf of their clients. Prudent Effective Date: means June 1, 2020, the date on which the prudent investor regime applies to the Municipality. Prudent Investor Standard: means the standard that applies when the Municipality invests money that it does not require immediately under section 418.1 of the Act. It requires the Municipality to exercise the care, skill, diligence and judgment that a prudent investor would exercise in making such an investment and the standard does not restrict the securities in which the Municipality can invest. The Prudent Investor Standard makes use of Modern Portfolio Theory and applies the standard of prudence to the entire portfolio in respect of the Municipality’s Long-Term Funds rather than to individual securities. It identifies the fiduciary's central consideration as the trade-off between risk and return as found in the CFA Institute Standards of Practice Handbook. Regulation: means Ontario Regulation 438/97. Risk: means the uncertainty of future investment returns. Risk Tolerance: means the financial ability to absorb a loss. Risk tolerance increases with the build-up of capital funding. Securities Lending: means loaning a security to another market participant. The borrower is required to deliver to the lender, as security for the loan, acceptable collateral with value greater than the value of the securities loaned. The Securities Lending program is managed by the Custodian on behalf of investors. A Securities Lending program is widely used by institutional investors to generate additional marginal returns on the total portfolio. Short-Term Funds: means money that is required immediately by the Municipality as described in section 5.1 and which remains under the control and management of the Municipality. The funds can be invested in appropriate Legal List Securities. Sinking Fund: means a fund established to fulfil the requirements to make annual contributions in respect of various debenture issues wherein money is to be regularly set aside for the payment of the principal of the debentures at maturity. Sinking Fund Required Contributions (Annual Sinking Fund Requirement): means the amount of money to be set aside each year for deposit into a sinking fund or a retirement fund, as applicable, for each sinking fund and term debenture issue in accordance with the Municipality’s debenture by-laws when such debentures are issued. Sinking Fund Required Earnings: means the investment earnings needed for the Sinking Fund Contributions to continue to grow to a value sufficient to repay the principal at maturity for each issue of sinking fund and term debentures. Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 1 Page 14 of 30 5 13197104.14 Sinking Fund Excess Earnings: means the investment earnings in excess of the required earnings. 2. PURPOSE AND LEGISLATIVE FRAMEWORK 2.1 Purpose of Policy This IPS governs the investment of the Municipality's MNRI and MRl. It is intended, among other things, to direct the Treasurer in the investment of MRI and to direct ONE Joint Investment Board (ONE JIB) in the investment of MNRI by implementing the Authorizing By-law XXXX-20 pursuant to which the Municipality authorized the establishment of guidelines for the prudent management of the Municipality's MNRI pursuant to section 418.1 of the Act. ln addition to the Municipality's MRI and MNRI, the Municipality is from time to time entrusted with the management of money and investments for a third party beneficiary ("third party trust funds"). There are also source(s) of money in which the Municipality may have an indirect interest but which the Municipality currently has no authority to invest. Such source(s) of money, referred to in this IPS as "designated funds", are listed in Schedule A attached hereto. The designated funds are identified in this IPS for the sole purpose of enabling the Municipality to better see, on an aggregated basis, the various financial assets in which the Municipality has an interest. The Municipality is not responsible for the investment activities or performance of designated funds. The goals of this IPS are to: ● Define and assign responsibilities for investment of MRI and MNRI; ● Describe the Municipality’s responsibilities with respect to third party trust funds and designated funds ● Ensure compliance with the applicable legislation; ● Direct ONE JIB as to the Municipality’s investment goals and risk tolerance; ● Provide guidance and limitations regarding the investments and their underlying risks; ● Establish a basis of evaluating investment performance and the underlying risks; and, ● Establish a reporting standard to Council. This IPS applies to employees of the Municipality, to ONE JIB and to the employees of ONE Investment. ONE JIB, the Treasurer, and any agent or advisor providing services to ONE JIB in connection with the investment of the portfolio shall accept and strictly adhere to this IPS. 2.2 Governing Legislation Investments of MRI will, in accordance with this IPS, only be made in Legal List Securities. Investments of MNRI are governed by the Prudent Investor Standard in accordance with Section 418.1 of the Act. This standard is similar to that which governs trustees and pension fund administrators and creates a fiduciary responsibility. Prudent Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 1 Page 15 of 30 6 13197104.14 investment in compliance with the Act and the Regulation enhances the potential for the Municipality to earn improved risk-adjusted rates of return. Money and investments that the Municipality holds as third party trust funds or has an interest in as designated funds will be subject to applicable legislation and any related agreements or instruments. The Act provides that the Municipality must consider the following criteria in planning investments of MNRI, in addition to other criteria relevant to the circumstances: ● General economic conditions; ● The possible effect of inflation or deflation; ● The role that each investment plays within the Municipality’s total portfolio of investments; ● The expected total return from income and the appreciation of capital; and ● Needs for liquidity, regularity of income and preservation or appreciation of capital. 2.3 Prudent Investor Standard For MNRI, the standard to be used by the Municipality and ONE JIB shall be the “prudent investor” standard as required by section 418.1 of the Act and Part II of the Regulation in the context of managing the Municipality’s MNRI and investments thereof. Investments shall be made with the care, skill, diligence, and judgment, taking into account the prevailing circumstances, which persons of prudence, discretion and integrity would exercise in the management of investments, considering the necessity of preserving capital as well as the need for income and appreciation of capital. The Act includes a duty to obtain the advice that a prudent investor would obtain under comparable circumstances. As well, the Prudent Investor Standard makes use of Modern Portfolio Theory, which looks towards the portfolio as a whole, rather than towards the prudence of each investment in the portfolio. Officers, employees and investment agents acting in accordance with written procedures and the IPS and exercising due diligence shall take all necessary actions to optimize performance of investments on a portfolio basis, taking into account the prescribed risk and other parameters set out in this IPS and market factors. The Municipality’s staff acting in accordance with written procedures and this IPS, shall be relieved of personal responsibility for an investment’s performance, provided underperformance relative to expectations is reported to Council and the liquidation or sale of investments is carried out in accordance with this IPS. 3. MONEY REQUIRED IMMEDIATELY AND MONEY NOT REQUIRED IMMEDIATELY 3.1 Determination of MNRI and MRI Determination of the Municipality’s MNRI is the responsibility of Council. In making the determination, Council may consider: ● the time horizon within which the monies are needed to meet financial obligations Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 1 Page 16 of 30 7 13197104.14 ● the purpose for which the monies have been collected or set aside and are to be used ● the source of the money ● any combination of the foregoing The Municipality’s MNRI will be comprised of money that is to be used to meet financial obligations that become due more than 18 months from the date of receipt of such money by the Municipality. For certainty, all money of the Municipality that has not been identified as MNRI (other than third party trust funds and any designated funds referenced in Section 2.1) shall be deemed for purposes of this IPS to be MRI. Determination of the Municipality’s MNRI and MRI may be modified at any time and from time to time by action of Council and with respect to specific funds by the Treasurer in accordance with the provisions of Section 6.2. Any changes in this IPS regarding the Municipality’s MNRI and MRI must be communicated immediately in writing to ONE JIB. 3.2 Overview of Portfolios The Municipality’s portfolios represent funds required for specific purposes. A high level description of each of these portfolios and their objectives is provided in Section 5 below. This IPS applies to the following money of the Municipality, its agencies, boards and commissions including: ● MRI which is invested in Legal List Securities; and/or ● MNRI which is invested under the prudent investor regime. 4. ROLES AND RESPONSIBILITIES 4.1 Role of ONE JIB ONE JIB has been appointed by the Municipality in accordance with the requirements of the Act and the Regulation and on the terms and conditions set out in the ONE JIB Agreement (Appendix I). ONE JIB exercises control and management of the Municipality’s MNRI and the investments made by it with such MNRI. Among the responsibilities of ONE JIB are the following: ● Reviewing this IPS; ● Adopting and maintaining an Investment Plan that complies with this IPS; ● Engaging External Portfolio Managers, Custodians, administrators and other investment professionals (Agents); ● Allocating the money and investments under its control and management among External Portfolio Managers; ● Monitoring the performance of the Agents; and, ● Reporting to the Municipality. Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 1 Page 17 of 30 8 13197104.14 The foregoing is subject to the more detailed terms and conditions contained in the ONE JIB Agreement. 4.2 Role of Municipal Staff This IPS is approved and adopted by Council with input from the Treasurer, and from ONE JIB with respect to MNRI. MRI of the Municipality, and any third party trust funds referenced in Section 2.1, remain under the control and management of the Treasurer. Consistent with this IPS, the Treasurer is responsible for the implementation of the investment program and the establishment of investment procedures which shall include: ● Investment management of MRI and any third party trust funds referenced in Section 2.1 by, or under the direction of, the Treasurer; ● Explicit delegation of authority regarding MNRI, and the investment thereof, to ONE JIB, which is responsible for the control and management of such funds and investments; and, ● A system of controls exercised by the Treasurer to regulate the activities of Deputy Treasurers and Financial Management Advisors. No person including, without limitation, ONE JIB, may engage in an investment transaction except as provided under the terms of this IPS. In the management of MRI of the Municipality, and any third party trust funds referenced in Section 2.1, the Treasurer may engage one or more agents and service providers. ONE Investment can assist with the investment of the Municipality’s MRI, in Legal List Securities, and with the investment of third party trust funds, in accordance with the terms of the applicable trust, if permitted, at the request of the Municipality. Municipal staff involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial investment decisions. Municipal staff involved in the investment procedures shall disclose any material interest in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Municipal staff shall not undertake personal investment transactions with the same individual with whom business is conducted on behalf of the Municipality. 5. INVESTMENT 5.1 MRI: Short-Term Funds The Municipality’s MRI is described in this IPS as Short-Term Funds. Short-Term Funds consist of money needed to meet the financial obligations of the Municipality coming due within 18 months from the date of receipt of such money and are controlled and managed by the Treasurer. 5.1.1 Short-Term Funds: Investment Objectives Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 1 Page 18 of 30 9 13197104.14 The investment objectives, in the order of priority, for the Municipality for Short-Term Funds are: ● Compliance with Portfolio Restrictions: The legal authority to invest funds comes from the Act. All investments acquired shall be in conformity with portfolio restrictions and permissions set out in O. Reg. 438/97 – Eligible Investments and Related Financial Agreements, as amended from time to time. The Municipality shall not invest in a security that is expressed or payable in any currency other than Canadian dollars. ● Preservation of Principal: Investments shall be undertaken in a manner that seeks to ensure the preservation of principal in the overall portfolio. Investments shall be made with judgement and care, not for speculation, but for investment, considering the probable safety of the principal invested as well as the probable income derived. Staff shall also endeavor to mitigate credit and interest rate risk by: pre-qualifying the financial institutions, brokers/dealers and advisors with which the Municipality does business; diversifying the investment portfolio; structuring the investment portfolio so that maturing securities meet ongoing cash flow requirements; and investing operating funds primarily in shorter-term securities or approved liquid investment pools. ● Maintenance of Liquidity: The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. All non-equity investments shall be interest bearing in nature and equity exposure will be limited to investments in the ONE Investment Program equity funds. The Municipalities portfolio should be well staggered, using a ladder approach which allows investments to mature at various times and provides the Municipality the opportunity to build up the portfolio based on market conditions/opportunities. A portion of the portfolio may be placed in the ONE Investment Program, which offers compliance and liquidity. ● Maximization of the Rate of Return: The Investment Portfolio shall be designed with the goal of maximizing the rate of return through budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Staff will explore and utilize any eligible investment vehicles in building the Municipality’s investment portfolio. The investment portfolio will be managed with prudent investor principles, in order to maximize returns within established risk parameters. To take advantage of short-term fluctuations in interest rates, securities may be sold prior to maturity. Investments shall be purchased once multiple bids are received and analysed. The highest yielding bid, which meets the Municipality’s cash flow requirements, will be accepted. If the highest yielding bid is not selected, an explanation describing the rationale shall be provided. Staff involved will retain written records of each transaction, including the name of the financial institutions, rates quoted, description of the security, investment selected, and any special considerations that had an impact on the decision. With the goal of maximizing the rate of return on its investments, staff may utilize eligible investment vehicles for which there is a sole available supplier, such as the ONE Investment Program products. In instances such as this, multiple bids will not be solicited. 5.1.2 Short-Term Funds: Eligible Investments Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 1 Page 19 of 30 10 13197104.14 Short Term Funds may be invested in high quality, short-term investments that are also Legal List Securities available from banks, dealers and other financial institutions. 5.2 MNRI: Long-Term Funds The Municipality’s MNRI is described in this IPS as Long-Term Funds. In accordance with the ONE JIB Agreement and this IPS, ONE JIB has exclusive control and management of the Long-Term Funds and the investments made therewith. From time to time, the Municipality may require money immediately to meet financial obligations and may require ONE JIB to liquidate one or more investments in order to generate money to pay those obligations. ONE JIB will select the investment(s) to be liquidated. The timing of such liquidation will be determined by ONE JIB in consultation with the Treasurer. 5.2.1 Long-Term Funds: Investment Objectives In setting the objectives noted below, the Municipality has taken into account the following considerations: • Preservation of capital; • Adequate liquidity that takes into account the needs of financial obligations and reasonably anticipated budgetary requirements; • Diversification by asset class, market, sector, issuer, credit quality and term to maturity; • Income and capital appreciation; and, • Macro risks, such as inflation, economic growth and interest rates. The Municipality has identified the following investment objectives for its Long-Term Funds. Reserve Category Objective Risk Tolerance, Liquidity Investment Horizon Reserves for Existing Infrastructure Funds set aside by Council to provide funding for future major repairs, rehabilitation or replacement of the Municipality’s infrastructure. Liquidity not essential, moderate risk tolerance, low to moderate growth 2 to 10 years Reserves for New Infrastructure and Development Charges Funds primarily sourced from land development activities. Funds are used to install necessary infrastructure and Liquidity not essential, moderate risk tolerance, low to moderate growth 2 to 10 years Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 1 Page 20 of 30 11 13197104.14 Reserve Category Objective Risk Tolerance, Liquidity Investment Horizon improvements to maintain our service levels to our growing community. Special Purpose Reserve Funds Funds set aside by Council or be legislation to provide financial capacity to the Municipality for specific purposes. Liquid, moderate risk tolerance, low to moderate growth 2 to 10 years Investment of Long-Term Funds is managed by ONE JIB, which balances expected investment risks and returns to generate asset mixes that create outcomes to meet the needs and risk tolerances defined below. Returns have an impact on municipal revenues, as well as a longer term impact on future years’ budgets and should, at a minimum, keep pace with inflation. To the extent possible, the Long-Term Funds’ investment horizons are aligned with the Municipality’s obligations and may consist of liquid and illiquid securities. 5.2.2 Long-Term Funds: Eligible Investments Eligible investments for Long-Term Funds include the following offerings by ONE Investment: • ONE Investment High Interest Savings Account; • ONE Canadian Bond Fund; • ONE Canadian Corporate Bond Fund; • ONE Investment Canadian Equity Fund; • ONE Global Unconstrained Bond Fund; and, • ONE Investment Global Equity Fund. Additionally, nothing in this IPS prevents Long-Term Funds from being held in cash, short term money market instruments, or overnight deposits. 5.2.3 Long-Term Funds: Sinking Funds Not applicable. 5.2.4 Long-Term Funds: Local Distribution Corporation (LDC) Securities Not applicable. 5.2.5 Long-Term Funds: Other Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 1 Page 21 of 30 12 13197104.14 Not applicable. 5.3 Third Party Trust Funds and Designated Funds Not applicable. 5.4 Investment Management 5.4.1 Investment Management of Short-Term Funds The investment of Short-Term Funds shall be controlled and managed by the Treasurer and his/her designate as documented in By-law #6219-19, Schedule “C”. 5.4.2 Investment Management of Long-Term Funds The investment of Long-Term Funds shall be controlled and managed by ONE JIB. An investment advisor shall be retained by ONE JIB to define and manage the asset allocation using External Portfolio Managers. Competent External Portfolio Managers shall be appointed by ONE JIB and they shall enter into an agreement with ONE Investment that complies with this IPS and Part II of the Regulation and provide compliance and performance reports. In accordance with the applicable regulatory requirements, ONE JIB shall make any External Portfolio Manager changes deemed in the best interest of the Municipality. For each External Portfolio Manager, ONE Investment shall agree on a set of operational guidelines including constraints, discretion limits, diversification and quality standards, and performance expectations, which are documented in each External Portfolio Manager’s guidelines. 5.5 Transition to Prudent Investor Regime Until the Prudent Effective Date, the Municipality will continue to control and manage its MRI, MNRI and investments in Legal List Securities. Some of such investments were made with MRI and some with MNRI. Upon and after the Prudent Effective Date, the control and management of money and investments that are determined to be not required immediately shall be given to ONE JIB. Nothing in this IPS requires that such investments need be liquidated or disposed of. It is not contrary to this IPS for investments that the Municipality does not require immediately to be held, and to continue to be held by ONE JIB, in instruments such as term deposits, guaranteed investment certificates or principal protected notes issued by a bank to be held to maturity and invested upon receipt of cash proceeds. Management of third party trust funds and any designated funds is not directly affected by the Prudent Effective Date. 5.6 Investment Constraints 5.6.1 Environmental, Social and Governance (ESG) Investing The Municipality supports ESG investing for Short-Term and Long-Term Funds. Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 1 Page 22 of 30 13 13197104.14 The investment of short term funds will be done in compliance with the investment objectives identified in section 5.1.1. Accommodating specific ESG considerations may not be possible due to conflicts with the investment objectives. For the investment of Long-Term Funds, ONE JIB is required to explore how External Portfolio Managers are implementing responsible investing principles at the time of hiring and during periodic reviews. It may report on results periodically, if requested. Accommodating specific ESG considerations may not be possible either due to availability or to costs. 5.6.2 Securities Lending For the investment of Short-Term Funds securities lending is permitted through ONE Investment Program investments only. For the investment of Long-Term Funds, the Municipality may invest in pooled funds, and other investment funds that are controlled by an External Portfolio Manager who may engage in Securities Lending if the policies of the External Portfolio Manager that apply to such pools permit such an action. 5.6.3 Derivatives Derivatives may not be used for speculative purposes. They may be used for the investment of Long-Term Funds where they are fully covered by a backing asset, e.g., as for currency or other hedging, to change portfolio duration or in covered call strategies. 5.6.4 Use of Leverage Leverage is inherent in the use of certain types of investment strategies and instruments. Where leverage is employed, ONE JIB (for MNRI) and the Treasurer (for MRI) shall have in place monitoring procedures to manage overall exposure to any counterparty and in the aggregate. 5.6.5 Pooled Funds All investment strategies may be pursued directly through holdings of corporate and government issuers and indirectly via pooled funds and investment funds or any combination thereof. 5.6.6 Currency Hedging The Municipality’s funding requirements are in Canadian dollars. However, some exposure to foreign currencies may be desirable to provide diversification and potentially enhance returns. Therefore, it shall not be a violation of this IPS for investments in global mandates to be unhedged, in whole or in part, where the diversification benefits embedded in the currency exposure are considered to be beneficial or desirable by ONE JIB. Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 1 Page 23 of 30 14 13197104.14 5.7 Performance Monitoring, Rebalancing and Management 5.7.1 Short-Term Funds For the investment of Short Term Funds, Municipality staff will monitor the cash flow needs of the Municipality on a periodic basis. Should the needs on the Municipality no longer be met by the asset mix, staff will make changes, at the discretion of the Treasurer, taking into consideration the Short Term Investment objectives. 5.7.2 Long-Term Funds For the investment of Long-Term Funds, each account’s asset mix will be monitored on a periodic basis by ONE JIB. Should the asset mixes deviate outside the ranges set out in the Investment Plan, the account will be rebalanced as soon as practicable taking into consideration variations in market liquidity and the investment objectives. Cash inflows /outflows will be used to rebalance as much as possible. If they are insufficient, investments will be sold in a commercially reasonable manner and reallocated as required. Investments are expected to achieve returns at least equal to their benchmarks measured over a rolling five-year period. ONE JIB shall provide at least annual reporting described in Section 6.6 that demonstrates the Municipality’s holdings, declares compliance with this IPS and shows External Portfolio Manager performance. 6. ADMINISTRATIVE POLICIES 6.1 Flow of Funds and Annual Municipal Budget 6.1.1 Transfer to ONE JIB as Part of Budget Process On an annual basis, as part of the Municipality’s budget process, the Municipality shall identify the amount, if any, of Long-Term Funds that it holds. Any Long Term Funds not already under the control and management of ONE JIB shall be transferred to ONE JIB as soon as practicable. 6.1.2 Transfer to Municipality as Part of the Budget Process On an annual basis, as part of the Municipality’s budget process, ONE JIB shall be notified by the Treasurer as to the amount, if any, required by the Municipality from the Long-Term Funds then under the control and management of ONE JIB for the Municipality’s operational purposes. Such amounts shall be deemed to be Short-Term Funds and shall be returned to the Municipality in a lump sum or by way of periodic payment as directed by the Treasurer. 6.2 Flow of Funds Otherwise than through the Budget Process 6.2.1 Surplus Funds The Short-Term Funds capture revenues received by the Municipality during each year after the approval of the Municipality’s budget for the year. Any amounts deemed to be surplus by the Treasurer at any such time during the year shall be Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 1 Page 24 of 30 15 13197104.14 transferred to ONE JIB to be under its management and control as Long-Term Funds. Amounts so transferred will be recorded annually in the Investment Plan and allocated by ONE JIB in accordance with the Investment Plan. 6.2.2 Contingencies The Treasurer is authorized, from time to time after the approval of the Municipality’s budget, to direct ONE JIB to return any amounts determined by the Treasurer to be required to meet expenditures for unexpected contingencies not anticipated by the Municipality’s budget in force for that year. Provided however that the aggregate of the amounts to be returned to the Municipality under this Section 6.2.2 during the year shall not exceed 25% of the Long-Term Funds under the control and management of ONE JIB as at the date that the Municipality approved its budget for the year (the Budgeted Long-Term Funds). In determining the Budgeted Long-Term Funds for purposes of calculating the 25% limit, any Long-Term Funds to be transferred to the control and management of ONE JIB in accordance with that year’s budget pursuant to Section 6.1.1 shall be included and any amount to be returned by ONE JIB to the Municipality pursuant to Section 6.1.2 shall be excluded. 6.3 Valuation of Investments Investments shall be valued at cost and at fair market value according to the values provided by the Custodian(s). For the investment of Long-Term Funds, the fair market values of unitized vehicles shall be valued according to the unit values published daily by the Custodian. Other investments shall be valued at their market value when that is available from regular public trading. If a market valuation of an investment is not available, then a fair value shall be supplied by the External Portfolio Manager to the Custodian no less frequently than quarterly. 6.4 Voting Rights Not applicable. 6.5 Internal Controls The Treasurer shall establish an annual process of review of all investments made under this IPS. This review will provide internal control by assuring compliance with governing legislation and with policies and procedures established by the Treasurer. To the extent ONE JIB’s input is needed, these requirements will be communicated in advance to ONE JIB. 6.6 Custodians All investments and assets of the investment portfolios shall be held by a Custodian and any of the Custodian's sub-custodians or nominees. For Long-Term Funds, the Custodian shall be acceptable to ONE Investment. For Short-Term Funds the following is a list of financial institutions authorized to provide investment services to the Municipality. This list will be maintained and updated as the business environment changes: Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 1 Page 25 of 30 16 13197104.14 ● TD Canada Trust ● CIBC Wood Gundy ● BMO Nesbitt Burns Inc. ● RBC Dominion Securities Inc. ● Raymond James Ltd. ● Canaccord Genuity ● ONE Investment Program 6.7 Reporting 6.7.1 Short-Term Funds For the investment of Short-Term Funds, the Treasurer shall provide an annual investment report to Council. The Investment report shall contain: ● A statement about the performance of the investments during the period covered by the report; ● A statement by the Treasurer as to whether or not, in their opinion, all investments are consistent with the investments policies and goals of the Municipality; ● Listing of all investments by maturity date; ● Percentage of total portfolio that each type of investment represents; and ● Such other information that Council may request, or that the Treasurer may consider pertinent. 6.7.2 Long-Term Funds The Regulation provides that ONE JIB shall submit an investment report to Council in respect of the investment of Long-Term Funds at least annually. Such report shall include the following. ● Investment performance during the period covered by the report; ● Asset mix of the total portfolio; ● A listing of individual investments held at the end of the reporting period showing, where appropriate, their average term to maturity and yield relative to the benchmark, book value, market value, realized/unrealized gains/losses and actual income received; ● Dates of all transactions including the purchase and sale prices; ● A statement by the Treasurer as to whether all investments were made in accordance with the IPS and as to whether all investments were made in accordance with the Investment Plan; and ● Any other pertinent information in the opinion of the Treasurer. All securities invested on behalf of the Municipality by ONE JIB or with the assistance of ONE Investment shall be held for safekeeping in the name of the Municipality by a Custodian, which shall provide monthly reporting showing all securities held, their book values, market values and all income received. Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 1 Page 26 of 30 17 13197104.14 7. APPROVAL, SUBSEQUENT MODIFICATIONS AND EFFECTIVE DATE 7.1 Revocation / Amendment of Previous Investment Policy This policy replaces any existing investment policy of the Municipality, in its entirety, and all previous investment policies are revoked and repealed. 7.2 Modifications to the IPS At least annually Council shall review the IPS and update it, if required. In the course of reviewing the IPS, Council may request comments from the Treasurer with respect to the investment of Short-Term Funds and from ONE JIB with respect to the investment of Long-Term Funds. Following the Council’s review of the IPS, ONE JIB shall review the Investment Plan and update it, if required. At a minimum, the annual review will take into account: ● the adequacy of funding for capital works; ● the Municipality’s ability to reduce other spending; ● flexibility of the timeframe to payout; and ● sensitivity to loss. 7.3 Effective Date This IPS is adopted by Council of the Municipality effective June 1, 2020. The Treasurer is directed to sign a copy of this IPS to evidence approval and to deliver a copy of this IPS to ONE JIB. Signed by: Treasurer Date Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 1 Page 27 of 30 13197104.14 Appendix I: ONE JIB Agreement Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 1 Page 28 of 30 13197104.14 Appendix II: ONE External Portfolio Manager Mandates Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 1 Page 29 of 30 13197104.14 Schedule A Third Party Trust Funds and Designated Funds Third Party Trust Funds 1. None Designated Funds 2. None Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 1 Page 30 of 30 Memorandum Date: December 18, 2019 To: Finance Advisory Committee From: Lianne Jalali, Project Management Office, Corporate Services Re: Town’s Major Capital Projects Update Recommendation 1. That the memorandum regarding Town’s Major Capital Projects Update be received for information. Background The Town currently has multiple major capital projects underway in varying stages of completion. These major projects include the following: • Library Square • 89 Mosley (Armoury) Renovation • Fire Hall 4-5 • Joint Operations Centre Additional Work Analysis Library Square The development of the Construction Documents for the whole Library Square complex including Addition to the Church Street School, Outdoor Square, Parking, Bridge, and Corridor is underway and will be completed by the end of December 2019. Turner and Townsend is the project cost consultant that is working with the design team to develop the cost estimate of the project at the different stages of design. Turner and Townsend issued the Class B cost estimate on 75% Construction Documents drawing set. The project team is currently performing value-engineering exercise to identify and remove 100 John West Way Box 1000 Aurora, Ontario L4G 6J1 Phone: 905-727-3123, ext 4345 Email: ljalali@aurora.ca www.aurora.ca Town of Aurora Financial Services Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 2 Page 1 of 5 Town’s Major Capital Projects Update December 18, 2019 Page 2 of 4 unnecessary expenditures and find the most cost effective solutions that will deliver the same functionalities and project objectives. In preparation of the site for construction, the staff of the Aurora Cultural Center and the Aurora Museum and Archives will be relocated to the Town Hall for the duration of the construction work. The move will take place between December 2019 to March 2020. Budget Status: The approved project budget is $49,554,900. This is comprised of the $47.9M approved by Council, $1.6 M in Facilities Management Repair and Replacements added to this project scope and $50K for Electronic Messaging Signage. Schedule Status: The project management team developed a Master Schedule for the project with the key milestones outlined below. As the project progresses, the status of each item will be updated. Milestone Expected Completion Status Design Development August 2019 Complete Construction Documents January 2020 In Progress Tender Period February 2020 Not Started Evaluation and Award March 2020 Not Started Construction Mobilization April 2020 Not Started Completion Spring 2022 Not Started The monthly status update for this project can be found under Attachment #1. 89 Mosley (Armoury) Renovation The project is substantially completed. The occupancy process is underway and will be completed by Mid-December 2019. The project is delivered within budget. Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 2 Page 2 of 5 Town’s Major Capital Projects Update December 18, 2019 Page 3 of 4 The monthly status update for this project can be found under Attachment #1. Fire Hall 4-5 The revised design of the station and the new project budget have been presented to the Joint Council Committee (JCC). The JCC approval has been received on the revised design and increased budget by $2,567,727 on November 26 2019. The Newmarket Council adapted the change on December 7, 2019. The Aurora Council approved the new budget on December 10, 2019. The new project budget is sitting at $13,567,727 excluding the Public Art and the Project Management fee, which is $87,300. The monthly status update for this project can be found under Attachment #1. Joint Operations Centre Additional Work The objective of this project is to complete the outstanding capital works of the JOC. The project is divided into the following sub-projects of which eight (8) sub-projects have been completed and five (5) sub-projects will be completed in 2020. Sub-Project Status Back Lot Paving and Full Build Out Complete Upper Parking Lot and Rear Yard Complete JOC Landscaping 2020 Garbage Tipping Station Complete Storage Buildings 2020 Automated Gate Control 2020 South Side Exterior Finishing 2020 Furniture Complete Entry Pylon Exterior Sign Complete Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 2 Page 3 of 5 Town’s Major Capital Projects Update December 18, 2019 Page 4 of 4 Intercom System 2020 Third Floor Build Out Complete Building Exterior Sign Complete Soil Quality at Back of Property Complete All projects are on schedule and on budget so far. The monthly status update for this project can be found under Attachment #1. Attachments Attachment #1 – Major Capital Project Update: • Library Square • 89 Mosley (Armoury) Renovation • Fire Hall 4-5 • Joint Operations Centre Additional Work Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 2 Page 4 of 5 PROJECT NAMEBEGINFINISH# of DAYSSTATUS PROJECTED ACTUAL REMAINDER STATUS HIGH MEDIUM LOW89 Mosley (Armoury)October 9, 2018October 15, 2019371Completed $5,359,900 $4,737,526 $622,374 On budget 0 0 0FirehallMay 3, 2019December 31, 2020608On schedule $13,567,727 $353,688 $13,214,039 On budget 0 0 0JOC - Additional Work October 1, 2018September 30, 2020730On schedule $2,185,200 $893,919 $1,291,281 On budget 0 0 0Library SquareJuly 2, 2018April 30, 2022On schedule $49,554,900 $2,272,598 $47,282,302 On budget 0 0 0Total $70,667,727 $8,257,731 $62,409,99600 0Project Status LegendOn schedule Everything is progressing as planned. No intervention from the sponsor is required Concerned Some risks and issues have been identified but the project team is handling and monitoring them Delayed/Over budget Major problems affected the project timeline and budget. The sponsor's intervention is required in this case Row LabelsSum of REMAINDER Sum of ACTUAL Sum of PROJECTEDFirehall1321403935368813567727Library Square47282302 227259849554900JOC - Additional Work1291281893919218520089 Mosley (Armoury)622374 47375265359900Grand Total62409996 825773170667727Attachement#1Major Capital Projects Update Summary - December 2019TimelineBUDGET RISKSRowLLabelsSSumoff REMAAINDNDERRSumm of ACTUAUALSum of PROJECTEDFirehaall132321404033935353681351367727Librarary Square47728223300222725949554954900JOC - Additional Woork129912288939121818520050089 MMosley(Armmouryy)62222337473752535990900GranndTotal6624009999825773706677227dditionalWoork1291122889391218852000belsSumoofREMAIINDERRSuumofACCTUALofPROJECTED393999990022281174444496666811LLSumSumSum o88888999991112222233333111LSumo$0$10,000,000$20,000,000$30,000,000$40,000,000$50,000,000$60,000,000Firehall Library Square JOC - Additional Work 89 Mosley (Armoury)Project Budget SummarySum of REMAINDERSum of ACTUALSum of PROJECTEDValuesPROJECT NAMEFinance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 2 Page 5 of 5 2016 2017 20182018 20192019 vs 2019 vs 2018 vs 2018 vsFull Year Full Year Full YearApproved Approved2018 Budget 2018 Budget 2017 Actual 2017 Actual Variance ExplanationActuals Actuals ActualsBudget BudgetIncrease / (Decrease) Increase / (Decrease) Increase / (Decrease) Increase / (Decrease)REVENUE: 3-1102 ADMINISTRATIVE FEES-162 -16945-400 -400---214(126.6%) 3-1201 OTHER-241,386 -211,677 -251,121-231,500 -225,900-5,600 (2.4%)39,444 18.6%Pool rentals/seniors bus trips, increase demand and revenue realized3-1202 GENERAL- -93,863 -63,753-----30,110 (32.1%)Reduction in electricity usage and cost recovery for the Tennis Dome3-1203 ADVERTISING-40,124 -40,498 -45,187-40,930 -40,930- - 4,68911.6% 3-1204 SPONSORSHIP-94,045 -108,201 -96,570-139,250 -137,250-2,000 (1.4%) -11,631(10.7%) 3-1205 SALES-- -2,236----2,236- 3-1206 DONATIONS-7,158 -20,603 -14,125-2,000 -2,000- - -6,4780.0% 3-1210 ADVERTISING SALES - FACILITIES-88,873 -97,656 -106,334-94,994 -111,00016,006 16.8% 8,678 8.9% 3-1300 RENTAL-174,223 -177,228 -119,096-167,802 -115,000-52,802 (31.5%)-58,132 (32.8%)Loss of revenue from facilities no longer available for rental3-1301 VENDING MACHINE SALES-44,795 -45,263 -50,241-55,470 -38,700-16,770 (30.2%) 4,97811.0% 3-1305 MEMBERSHIP FEES-42,900 -32,758 -55,633-44,633 -45,525892 2.0%22,875 69.8%ASA contract. The last 2017 payment got posted to 20183-1306 MEMBERSHIPS - FITNESS-193,880 -165,544 -314,276-210,000 -215,0005,000 2.4%148,732 89.8%Revenue was deferred in Dec. 2017 to 20183-1307 MEMBERSHIPS - RACQUETS-19,317 -10,086 -15,378-15,000 -13,000-2,000 (13.3%) 5,29252.5% 3-1308 MEMBERSHIPS - AQUATICS-28,022 -22,235 -39,140-27,000 -30,0003,000 11.1% 16,90576.0% 3-1309 PROGRAM-174,662 -180,727 -177,803-191,000 -188,000-3,000 (1.6%) -2,924 (1.6%) 3-1310 PROGRAM - FITNESS-30,610 -22,106 -33,112-25,000 -28,0003,000 12.0% 11,00649.8% 3-1311 PROGRAM - RACQUETS-15,680 -15,317 -15,016-11,000 -11,500500 4.5% -301 (2.0%) 3-1312 PROGRAM - AQUATICS-646,425 -567,227 -686,785-630,000 -640,00010,000 1.6%119,558 21.1%No Fall 2017 session and revenue deferred from Dec.2017, not posted to 20183-1313 PROGRAM - ADULT-25,496 -20,838 -43,658-20,000 -30,00010,000 50.0%22,820 109.5%Increased demand for adult programming3-1314 PROGRAM - CHILDREN-162,665 -103,077 -95,760-120,000 -100,000-20,000 (16.7%) -7,317 (7.1%) 3-1315 PROGRAM - PRESCHOOL-161,227 -100,319 -90,357-160,000 -120,000-40,000 (25.0%) -9,962 (9.9%) 3-1317 PROGRAM - CAMPS-662,473 -635,761 -628,428-680,000 -635,000-45,000 (6.6%) -7,333 (1.2%) 3-1319 ADMISSIONS-24,935 -24,205 -23,753-26,000 -24,500-1,500 (5.8%) -452 (1.9%) 3-1320 ADMISSIONS - FITNESS-77,810 -73,552 -77,745-75,000 -75,000- - 4,193 5.7% 3-1321 ADMISSIONS - RACQUETS-9,721 -13,673 -13,988-12,000 -12,000- - 315 2.3% 3-1322 ADMISSIONS - AQUATICS-149,549 -114,360 -112,362-112,000 -115,0003,000 2.7% -1,998 (1.7%) 3-1323 ICE RENTAL-1,763,834 -1,809,192 -1,798,149-1,743,628 -1,785,00041,372 2.4% -11,043 (0.6%) 3-1324 PUBLIC SKATING-45,601 -33,845 -38,115-26,000 -27,0001,000 3.8% 4,27012.6% 3-1325 SHINNEY HOCKEY-7,654 -7,005 -7,784-8,000 -8,000- - 77911.1% 3-1326 PERSONAL TRAINING-5,964 -13,752 -19,431-10,000 -12,0002,000 20.0% 5,67941.3% 3-1328 LOCKER FEES-5,889 -7,530 -6,669-4,500 -4,500- - -861(11.4%) 3-1329 SALES COMMISSIONS-4,234 -4,081 -4,014-4,600 -4,600- - -67 (1.6%) 3-1332 LEASES-183,202 -179,547 -183,433-186,221 -228,94542,724 22.9% 3,886 2.2% 3-1336 VENDOR FEES-5,252 -1,046 -743-800 -800- - -303(29.0%) 3-1337 FLOAT REGISTRATION FEES-1,575 -975 -2,289-1,600 -1,600- - 1,314134.8% 3-1338 ENTRY FEES-23,781 -30,710 -26,740-25,925 -25,925- - -3,970(12.9%) 3-1339 ROCK WALL--951 -1,816- -1,5001,500-86591.0% 3-1800 FEDERAL GRANTS-60,072 -72,699 -94,020-58,900 -20,000-38,900 (66.0%)21,321 29.3%Received higher than budgeted amounts from Canada Summer Jobs grant3-1801 PROVINCIAL GRANTS-42,700 -50,182 -58,330-51,000 -51,000- - 8,14816.2% 3-1803 OTHER GRANTS-2,000 -2,000 -9,514--- - 7,514375.7% 3-1900 CONTRIBUTION FROM CAPITAL- -43,000------43,000(100.0%)One-time draw to offset pool closure loss of revenue3-1901 CONTRIBUTION FROM DISCRETIONARY RESERVES-102,000--- -3,5003,500--- 3-1925 BLDG, FURN & FIX R&R RESERVE CONT'N---- -46,53246,532--- 3-1929 TAX RATE STABILIZATION CONTRIBUTION- -40,000-- -34,80034,800--40,000(100.0%)One-time draw to offset reduction in ice rental revenue as part of right-sizing exercise3-1939 RECREATION SPONSORSHIP CONT'N- -2,868 -10,000-10,000 -10,000- - 7,132248.7% 3-1971 ARTS & CULTURAL CONTRIBUTION-5,000 -5,000 -5,000-5,000 -5,000-- -- Total Revenue -5,374,896 -5,201,326 -5,437,859 -5,227,153 -5,224,407-2,746 (0.1%)236,5334.5% EXPENSE: 4-2000 SALARIES - F/T3,559,531 3,695,986 3,800,4854,084,174 4,332,322248,148 6.1%104,4992.8% 4-2001 SALARIES - O/T76,357 82,565 116,15235,498 35,498--33,587 40.7%Coverage to off-set full-time absences4-2002 SALARIES - P/T2,013,874 2,185,029 2,607,8112,437,561 2,511,67374,112 3.0%422,782 19.3%Increase in provincial minimum wage affected part time wage scale4-2003 VACATION PAY57,365------ -- 4-2004 SICK PAY13,919------ -- 4-2005 LIEU TIME901------ -- 4-2090 YEAR END ACCRUALS44,496 -7,921 29,277----37,198 469.6% Year-end accruals vary from year to year based on pay period ending datesFinance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 3 Page 1 of 11 2016 2017 20182018 20192019 vs 2019 vs 2018 vs 2018 vsFull Year Full Year Full YearApproved Approved2018 Budget 2018 Budget 2017 Actual 2017 Actual Variance ExplanationActuals Actuals ActualsBudget BudgetIncrease / (Decrease) Increase / (Decrease) Increase / (Decrease) Increase / (Decrease)4-2100 BENEFITS - OMERS406,292 418,476 427,662415,867 435,75819,891 4.8% 9,186 2.2% 4-2101 BENEFITS - EHT111,723 115,601 126,483124,591 129,3914,800 3.9% 10,882 9.4% 4-2102 BENEFITS - WSIB41,391 43,171 47,70147,920 49,7661,846 3.9% 4,53010.5% 4-2103 BENEFITS - CPP196,309 204,279 228,445241,775 261,93120,156 8.3%24,166 11.8%Budgeted CPP rate vs. actual rate difference4-2104 BENEFITS - EI124,297 111,973 126,844120,675 125,2424,567 3.8% 14,87113.3% 4-2105 BENEFITS - DENTAL69,645 77,714 79,95399,821 101,9042,083 2.1% 2,239 2.9% 4-2106 BENEFITS - HEALTH134,992 146,377 146,371170,714 178,4437,729 4.5% (6) (0.0%) 4-2107 BENEFITS - LTD/ADD58,642 63,892 78,10279,858 92,17512,317 15.4% 14,21022.2% 4-2108 BENEFITS - OTHER16,430 24,730 19,12920,913 22,0311,118 5.3% (5,601)(22.6%) 4-2200 WAGE RECOVERY-1,535--92----(92)- 4-2201 SALARY SAVINGS----47,135 -47,135-- -- TOTAL SALARIES & BENEFITS 6,924,629 7,161,872 7,834,323 7,832,232 8,228,999 396,767 5.1%672,4519.4% 4-3000 PURCHASE CARD CLEARING387 1,247277----(970)(77.8%) 4-4000 OFFICE SUPPLIES9,565 9,499 12,73615,050 15,200150 1.0% 3,23734.1% 4-4006 OFFICE EQUIPMENT--7391,500 1,500--739- 4-4007 COMPUTER SUPPLIES942-305500 2,5002,000400.0%305- 4-4009 SAFETY SUPPLIES869705363,000 3,000--466665.7% 4-4010 CLOTHING ALLOWANCE21,214 19,088 23,25924,000 25,4001,400 5.8% 4,17121.9% 4-4011 CLEANING SUPPLIES29 1,310-----(1,310)(100.0%) 4-4013 UTILITIES1,805,886 1,879,613 1,685,9721,861,661 2,009,777148,116 8.0%(193,641) (10.3%)Hydro efficiencies. 2020 budget was adjusted to reflect more accurate actuals 4-4014 HEATING FUEL291,107 354,013 364,685367,550 418,70051,150 13.9% 10,672 3.0% 4-4015 OPERATING MATERIALS363,048 377,749 197,128165,960 184,88818,928 11.4%(180,621) (47.8%)Decrease year over year is due to reorganization of how Operating Materials are budgeted4-4018 LICENSES5,049 5,511 7,6539,300 9,400100 1.1% 2,14238.9% 4-4019 VEHICLE SUPPLIES14,984 12,186 13,57017,000 14,000(3,000) (17.6%) 1,38411.4% 4-4021 EQUIPMENT - OTHER28,867 16,083 11,33016,000 20,2004,200 26.3% (4,753)(29.6%) 4-4022 TOOLS4,790291 1,8861,000 4,5003,500350.0%1,595548.1% 4-4025 PROGRAM MATERIALS40,953 57,159 41,54844,700 43,200(1,500) (3.4%) (15,611)(27.3%) 4-4026 PROMOTIONAL/RECOGNITION936 2,135 1,0805,200 3,700(1,500) (28.8%) (1,055)(49.4%) 4-4028 COST REALLOCATIONS-17,850 -50,000-----50,000100.0%Cost Recovery for Scanlon Building moved to Corporate Accounts4-4040 BUILDING SUPPLIES6,250- 15,96820,000 17,500(2,500)(12.5%)15,968- 4-4045 MUNICIPAL BUSINESS4,313 3,201 12,8353,900 3,900- - 9,634301.0% 4-4047 SUPPLIES4,553 4,836 3,8755,000 5,000- - (961)(19.9%) 4-4058 OPERATING MATERIALS - ADVERTISING12,021 18,697 34,61215,450 15,000(450) (2.9%) 15,91585.1% 4-4070 OPERATING MATERIALS-- 14,6293,000 15,00012,000400.0%14,629- 4-4071 OPERATING MATERIALS ARENA-- 11,95617,000 17,000--11,956- 4-4072 OPERATING MATERIALS CATERING-- 4,1744,000 4,000--4,174- 4-4073 OPERATING MATERIALS HARDWARE & TOOLS-- 7,62548,200 18,950(29,250)(60.7%)7,625- 4-4074 OPERATING MATERIALS OFFICE FURNITURE-- 5,66911,500 11,500--5,669- 4-4075 OPERATING MATERIALS PARTS-- 12,25317,500 12,000(5,500)(31.4%)12,253- 4-4076 OPERATING MATERIALS POOL-- 41,47831,000 31,000--41,478- 4-4077 OPERATING MATERIALS RECYCLING-- 6,5978,100 13,1005,00061.7%6,597- 4-4078 OPERATING MATERIALS SIGNS-- 7,7069,900 9,900--7,706- 4-4079 OPERATING MATERIALS TELECOMMUNICATIONS--7026,900 6,900--702- 4-4080 OPERATING MATERIALS AUDIO/VIDEO-- 8,53810,900 10,900--8,538- 4-4081 OPERATING MATERIALS ELECTRICAL SLUPPLY-- 14,88124,300 15,750(8,550)(35.2%)14,881- 4-4082 OPERATING MATERIALS LOCKS,DOORS&WINDOWS-- 3,62213,500 7,500(6,000)(44.4%)3,622- 4-4083 OPERATING MATERIALS PAINTING SUPPLIES-- 6,92722,400 12,400(10,000)(44.6%)6,927- 4-4084 OPERATING MATERIALS PEST CONTROL-- 1,1703,500 3,85035010.0%1,170- 4-4085 OPERATING MATERIALS JANITORIAL SUPPLY-- 67,75146,500 57,45010,95023.5%67,751- 4-5021 MOBILE PLAN CHARGES---29,430 30,314884 3.0% - - 4-5026 COURSES & SEMINARS7,358 10,261 12,48814,190 14,012(178) (1.3%) 2,22721.7% 4-5027 MANDATORY COURSES & SEMINARS7,160 8,082 11,56615,600 15,600- - 3,48443.1% 4-5028 MEMBERSHIPS7,227 6,531 7,0619,250 9,500250 2.7% 530 8.1% 4-5029 MILEAGE7,373 7,977 7,48210,750 11,075325 3.0% (495) (6.2%) 4-5033 EQUIPMENT REPAIRS10,580 11,398 9,89116,700 17,7001,000 6.0% (1,507)(13.2%) 4-5034 EQUIPMENT RENTALS36,665 41,633 48,26648,505 55,5057,000 14.4% 6,63315.9% 4-5035 EQUIPMENT SERVICE CONTRACTS89,532 94,014-----(94,014)(100.0%)Due to new account structure in 20184-5036 COMPRESSOR REPAIRS45,558 123,016-----(123,016)(100.0%)Due to new account structure in 20184-5037 PROPERTY IMPROVEMENT-139-----(139)(100.0%) Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 3 Page 2 of 11 2016 2017 20182018 20192019 vs 2019 vs 2018 vs 2018 vsFull Year Full Year Full YearApproved Approved2018 Budget 2018 Budget 2017 Actual 2017 Actual Variance ExplanationActuals Actuals ActualsBudget BudgetIncrease / (Decrease) Increase / (Decrease) Increase / (Decrease) Increase / (Decrease)4-5038 BUILDING REPAIR & MAINTENANCE395,195 480,773356----(480,417)(99.9%)Due to new account structure in 20184-5043 CONSULTING4,657 5,666 5,0325,000 8,0003,000 60.0% (634)(11.2%) 4-5045 PHOTOCOPIER CHARGES26,953 33,806 34,26629,000 29,000- - 460 1.4% 4-5046 PRINTING2,706 5,377 6,3379,900 11,0001,100 11.1% 96017.9% 4-5049 POLICE SEARCHES230180-500500--(180)(100.0%) 4-5059 CONTRACTS1,935,039 1,581,812 982,7091,164,200 1,329,850165,650 14.2%(599,103) (37.9%)Year over year variance is due to re-structuring of Facilities accounts4-5060 COST RECOVERY-7,725 -6,004 -24,518-52,400 -54,000(1,600) (3.1%) (18,514)(308.4%) 4-5063 WASTE DISPOSAL FEE33,850 33,850 33,85033,850 34,500650 1.9% - - 4-5065 RENTALS10,533 10,098 9,82917,000 12,000(5,000) (29.4%) (269) (2.7%) 4-5066 CONTRACTS - OUTINGS48,052 64,174 63,39745,000 55,00010,000 22.2% (777) (1.2%) 4-5076 PRINTING - ADVERTISING45,114 42,683 44,47747,500 52,5005,000 10.5% 1,794 4.2% 4-5080 GUARD TEAM COMPETITION-368-500500--(368)(100.0%) 4-5081 SENIORS GAMES888------ -- 4-5200 EQUIP SERV CONTRACTS---2,150 -(2,150) (100.0%) - - 4-5202 EQUIP SERV CONTRACTS ARENA---13,000 6,000(7,000) (53.8%) - - 4-5203 EQUIP SERV CONTRACTS CATERING EQUIP---8,100 8,100-- -- 4-5204 EQUIP SERV CONTRACTS HDWR & TOOLS---1,200 1,200-- -- 4-5205 EQUIP SERV CONTRACTS POOL-- 1,2388,000 8,000--1,238- 4-5206 EQUIP SERV CONTRACTS RECYCLING TUBES---5,500 5,500-- -- 4-5207 EQUIP SERV CONTRACTS TELECOMMUNICATIONS-- 30,59923,200 33,0009,80042.2%30,599- 4-5208 EQUIP SERV CONTRACS AUDIO/VIDEO--3059,500 9,500--305- 4-5209 EQUIP SERV CONTRACTS ELECTRICAL-- 9,97810,100 30,60020,500203.0%9,978- 4-5210 EQUIP SERV CONTRACTS CLEANING OTHER-- 4,09428,400 10,000(18,400)(64.8%)4,094- 4-5211 EQUIP SERV CONTRACTS SECURITY---23,711 13,711(10,000) (42.2%) - - 4-5300 COMPRESSOR REPAIRS CONTRACT-- 22,69817,850 32,85015,00084.0%22,698- 4-5301 COMPRESSOR REPARIS R&M-- 54,37050,150 50,150--54,370- 4-5400 BLDG R&M-- 33,37618,500 17,900(600)(3.2%)33,376- 4-5401 R&M ARENA-- 55,00358,500 38,500(20,000)(34.2%)55,003- 4-5402 R&M POOL-- 11,39326,500 26,500--11,393- 4-5403 R&M GENERATOR-- 11,3435,000 15,50010,500210.0%11,343- 4-5404 R&M LIFE SAFETY-- 16,60721,700 11,700(10,000)(46.1%)16,607- 4-5405 R&M LOCKS,DOORS&WINDOWS-- 65,71918,200 43,95025,750141.5%65,719- 4-5406 R&M PAINTING/CONTRACTOR-- 9,86110,000 16,5006,50065.0%9,861- 4-5407 R&M PLUMBING-- 84,01833,700 58,70025,00074.2%84,018- 4-5408 R&M ROOFING-- 10,35024,500 25,5001,0004.1%10,350- 4-5409 R&M MONITORING--688,700 8,700--68- 4-5410 R&M ELECTRICAL-- 73,62133,200 63,20030,00090.4%73,621- 4-5411 R&M ELEVATOR-- -7,7933,500 3,500--(7,793)- 4-5412 R&M HVAC-- 1,098178,200 78,200(100,000)(56.1%)1,098- 4-5413 R&M HVAC BAS-- 41,30111,500 47,00035,500308.7%41,301- 4-5414 R&M HVAC WATER TREATMENT--748,500 8,500--74- 4-5415 R&M SECURITY-- 13,90611,500 11,8003002.6%13,906- 4-5501 CONTRACTS GENERATOR---16,200 6,200(10,000) (61.7%) - - 4-5502 CONTRACTS LIFE SAFETY-- 39,22723,240 35,77012,53053.9%39,227- 4-5503 CONTRACTS PEST CONTROL-- 1,45211,860 5,000(6,860)(57.8%)1,452- 4-5504 CONTRACTS MONITORING-244 34,54226,750 34,0607,31027.3%34,29814,056.6%Due to new account structure in 20184-5505 CONTRACTS CLEANING-- 433,384453,000 474,20021,2004.7%433,384- 4-5506 CONTRACTS ELEVATOR-- 51,51136,000 36,000--51,511- 4-5507 CONTRACTS HVAC PREV MTCE-- 215,91189,250 139,25050,00056.0%215,911- 4-5508 CONTRACTS HVAC BAS---35,500 -(35,500) (100.0%) - - 4-5509 CONTRACTS WATER TREATMENT-- 25,05118,100 18,100--25,051- 4-6001 BANK CHARGES24,852 2,240 2,2522,500 2,500- - 12 0.5% 4-6002 ACTIVE NET CHARGES AND FEES- 91,760 103,76892,600 102,5259,925 10.7% 12,00813.1% 4-6003 ACTIVENET ROOM CHARGES AND FEES- 13,784 9,86814,000 10,000(4,000) (28.6%) (3,916)(28.4%) 4-7000 COMMUNITY GRANTS17,319 15,791 10,05416,000 16,000- - (5,737)(36.3%) 4-7001 HISTORICAL SOCIETY GRANT70,500 72,600 74,40074,400 77,9003,500 4.7% 1,800 2.5% 4-8002 CONTRIBUTIONS TO CAPITAL43,862------ -- 4-8003 CONTRIBUTIONS TO DISCRETIONARY RESERVES56,245 127,592 61,76588,170 106,17018,000 20.4%(65,827) (51.6%)Solar Panel one-time contribution to reservesTOTAL OTHER EXPENSES 5,517,636 5,592,533 5,504,573 5,969,577 6,425,057455,4807.6%(87,960)(1.6%) Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 3 Page 3 of 11 2016 2017 20182018 20192019 vs2019 vs2018 vs2018 vsFull Year Full Year Full YearApproved Approved2018 Budget2018 Budget2017 Actual2017 ActualVariance ExplanationActuals Actuals ActualsBudget BudgetIncrease / (Decrease) Increase / (Decrease) Increase / (Decrease) Increase / (Decrease)TOTAL EXPENSES12,442,265 12,754,405 13,338,896 13,801,809 14,654,056852,2476.2%584,4914.6%NET BUDGET7,067,369 7,553,079 7,901,037 8,574,656 9,429,649854,99310.0%347,9584.6%Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 3 Page 4 of 11 2016 2017 20182018 20192019 vs 2019 vs 2018 vs 2018 vsFull Year Full Year Full YearApproved Approved2018 Budget 2018 Budget 2017 Actual 2017 Actual Variance ExplanationActuals Actuals ActualsBudget BudgetIncrease / (Decrease) Increase / (Decrease) Increase / (Decrease)Increase / (Decrease)REVENUE: Total Revenue ------- -- EXPENSE: 4-2000 SALARIES - F/T203,909 213,438 196,140206,089 233,89227,803 13.5% (17,298) (8.1%) 4-2090 YEAR END ACCRUALS1,692 3,403 -6,591--- - (9,994)(293.7%) 4-2100 BENEFITS - OMERS27,822 25,743 22,09924,404 27,7623,358 13.8% (3,644)(14.2%) 4-2101 BENEFITS - EHT4,518 4,183 3,8854,019 4,561542 13.5% (298) (7.1%) 4-2102 BENEFITS - WSIB1,096 1,033 1,2721,546 1,754208 13.5% 23923.1% 4-2103 BENEFITS - CPP4,703 4,615 5,3284,713 5,298585 12.4% 71315.4% 4-2104 BENEFITS - EI2,466 2,107 2,4032,149 2,452303 14.1% 29614.0% 4-2105 BENEFITS - DENTAL3,544 3,290 3,0393,125 3,472347 11.1% (251) (7.6%) 4-2106 BENEFITS - HEALTH6,040 5,625 5,2135,344 6,080736 13.8% (412) (7.3%) 4-2107 BENEFITS - LTD/ADD3,090 2,813 3,1474,252 5,3081,056 24.8% 33411.9% 4-2108 BENEFITS - OTHER1,0739649141,063 1,21214914.0%(50)(5.2%) 4-2201 SALARY SAVINGS----47,135 -47,135-- -- TOTAL SALARIES & BENEFITS 259,953 267,214 236,849 209,569 244,656 35,087 16.7%(30,365) (11.4%) 4-3000 PURCHASE CARD CLEARING387 1,247277----(970)(77.8%) 4-4000 OFFICE SUPPLIES1,113 1,553 1,7321,500 1,500- - 17911.5% 4-4006 OFFICE EQUIPMENT--7391,500 1,500--739- 4-4045 MUNICIPAL BUSINESS741 2,631 1,0741,000 1,000- - (1,557)(59.2%) 4-5021 MOBILE PLAN CHARGES---535 55116 3.0% - - 4-5026 COURSES & SEMINARS523 2,7996753,151 3,200491.6%(2,124)(75.9%) 4-5028 MEMBERSHIPS1,729 1,780 1,7803,150 3,20050 1.6% - - 4-5029 MILEAGE13416-500500--(16)(100.0%) 4-5043 CONSULTING-- 2,4172,500 2,500--2,417- 4-5045 PHOTOCOPIER CHARGES26,953 33,806 34,26629,000 29,000- - 460 1.4% 4-5059 CONTRACTS---1,500 1,500-- -- TOTAL OTHER EXPENSES 31,580 43,832 42,960 44,336 44,451 115 0.3% (872) (2.0%) TOTAL EXPENSES 291,533 311,046 279,809 253,905 289,107 35,202 13.9%(31,237) (10.0%) NET BUDGET 291,533 311,046 279,809 253,905 289,107 35,202 13.9%(31,237) (10.0%) Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 3 Page 5 of 11 2016 2017 20182018 20192019 vs 2019 vs 2018 vs 2018 vsFull Year Full Year Full YearApproved Approved2018 Budget 2018 Budget 2017 Actual 2017 Actual Variance ExplanationActuals Actuals ActualsBudget BudgetIncrease / (Decrease) Increase / (Decrease) Increase / (Decrease)Increase / (Decrease)REVENUE:3-1201 OTHER-13 -2,310 -180-2,500 --2,500 (100.0%) -2,130(92.2%) 3-1204 SPONSORSHIP-250------ -- 3-1205 SALES-- -2,236----2,236- 3-1206 DONATIONS- -5,100------5,100(100.0%) 3-1800 FEDERAL GRANTS-4,000 -6,000 -23,660-18,900 --18,900 (100.0%) 17,660294.3% 3-1901 CONTRIBUTION FROM DISCRETIONARY RESERVES-2,000--- -3,5003,500--- 3-1971 ARTS & CULTURAL CONTRIBUTION-5,000 -5,000 -5,000-5,000 -5,000-- -- Total Revenue -11,263 -18,410 -31,076 -26,400 -8,500 -17,900 (67.8%) 12,66668.8% EXPENSE: 4-2000 SALARIES - F/T88,969 139,970 170,143170,933 177,4096,476 3.8%30,173 21.6%New position approved in '17 as of July 1st. Full year for 20184-2002 SALARIES - P/T7,203 10,992 14,6069,828 31,05821,230 216.0% 3,61432.9% 4-2090 YEAR END ACCRUALS415 1,456776----(680)(46.7%) 4-2100 BENEFITS - OMERS11,006 15,183 18,71918,639 19,516877 4.7% 3,53623.3% 4-2101 BENEFITS - EHT1,884 2,956 3,6233,514 3,652138 3.9% 66722.6% 4-2102 BENEFITS - WSIB660 1,115 1,3171,352 1,40452 3.8% 20218.1% 4-2103 BENEFITS - CPP2,544 5,303 5,8095,523 5,677154 2.8% 506 9.5% 4-2104 BENEFITS - EI1,337 2,538 2,7452,632 2,71179 3.0% 207 8.2% 4-2105 BENEFITS - DENTAL1,669 1,828 3,3283,472 3,472- - 1,50082.1% 4-2106 BENEFITS - HEALTH3,082 5,208 5,9745,938 6,080142 2.4% 76614.7% 4-2107 BENEFITS - LTD/ADD1,685 2,544 3,7783,526 4,026500 14.2% 1,23448.5% 4-2108 BENEFITS - OTHER423639851882920384.3%21233.2% TOTAL SALARIES & BENEFITS120,877 189,732 231,669 226,239 255,92529,68613.1%41,93722.1% 4-4000 OFFICE SUPPLIES541974607500500--(367)(37.7%) 4-4015 OPERATING MATERIALS21,113 59,331 77,38076,900 77,588688 0.9% 18,04930.4% 4-4018 LICENSES449- 1,0101,000 1,10010010.0%1,010- 4-4045 MUNICIPAL BUSINESS2,530- 6,7541,500 1,500--6,754- 4-5021 MOBILE PLAN CHARGES---535 55116 3.0% - - 4-5026 COURSES & SEMINARS2,074 1,220 1,3431,500 1,500- - 12310.1% 4-5028 MEMBERSHIPS398557493700700--(64)(11.5%) 4-5043 CONSULTING4,657 5,666 2,6152,500 5,5003,000 120.0% (3,051)(53.8%) 4-5059 CONTRACTS393,900 416,213 415,700415,700 415,700- - (513) (0.1%) 4-7000 COMMUNITY GRANTS17,319 15,791 10,05416,000 16,000- - (5,737)(36.3%) 4-7001 HISTORICAL SOCIETY GRANT70,500 72,600 74,40074,400 77,9003,500 4.7% 1,800 2.5% TOTAL OTHER EXPENSES 513,481 572,352 590,356 591,235 598,539 7,304 1.2% 18,004 3.1% TOTAL EXPENSES 634,358 762,084 822,025 817,474 854,464 36,990 4.5%59,9417.9% NET BUDGET 623,095 743,674 790,949 791,074 845,964 54,890 6.9%47,2756.4% Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 3 Page 6 of 11 2016 2017 20182018 20192019 vs 2019 vs 2018 vs 2018 vsFull Year Full Year Full YearApproved Approved2018 Budget 2018 Budget 2017 Actual 2017 Actual Variance ExplanationActuals Actuals ActualsBudget BudgetIncrease / (Decrease) Increase / (Decrease) Increase / (Decrease)Increase / (Decrease)REVENUE: 3-1102 ADMINISTRATIVE FEES-162 -16945-400 -400---214(126.6%) 3-1201 OTHER-9,000 -9,270 -9,548- -9,9009,900 - 278 3.0% 3-1204 SPONSORSHIP-51,375 -56,950 -50,350-105,000 -94,000-11,000 (10.5%) -6,600(11.6%) 3-1210 ADVERTISING SALES - FACILITIES-90,146 -97,656 -106,334-94,994 -111,00016,006 16.8% 8,678 8.9% 3-1300 RENTAL-174,223 -177,228 -119,096-167,802 -115,000-52,802 (31.5%)-58,132 (32.8%)Loss of revenue from facilities no longer available for rental3-1301 VENDING MACHINE SALES-44,795 -45,263 -50,241-55,470 -38,700-16,770 (30.2%) 4,97811.0% 3-1323 ICE RENTAL-1,763,834 -1,809,192 -1,798,149-1,743,628 -1,785,00041,372 2.4% -11,043 (0.6%) 3-1901 CONTRIBUTION FROM DISCRETIONARY RESERVES-100,000------ -- 3-1929 TAX RATE STABILIZATION CONTRIBUTION- -40,000------40,000(100.0%)One-time draw to offset reduction in ice rental revenue as part of right-sizing exerciseTotal Revenue-2,233,535 -2,235,728 -2,133,673 -2,167,294 -2,154,000-13,294(0.6%)-102,055(4.6%) EXPENSE: 4-2000 SALARIES - F/T611,661 579,092 560,472736,658 823,59686,938 11.8% (18,620) (3.2%) 4-2001 SALARIES - O/T4,545 6,061 6,021--- - (40) (0.7%) 4-2002 SALARIES - P/T213,236 325,421 483,805385,768 359,467(26,301) (6.8%)158,384 48.7%Part-time staff utilized to backfill full-time vacancies on a temporary basis4-2003 VACATION PAY6,000------ -- 4-2004 SICK PAY1,505------ -- 4-2005 LIEU TIME237------ -- 4-2090 YEAR END ACCRUALS3,611172 25,895----25,72314,955.2% Year-end accruals vary from year to year based on pay period ending dates4-2100 BENEFITS - OMERS65,505 65,684 62,43171,571 77,0195,448 7.6% (3,253) (5.0%) 4-2101 BENEFITS - EHT16,433 17,796 20,39420,877 21,9731,096 5.2% 2,59814.6% 4-2102 BENEFITS - WSIB6,129 6,642 7,5748,030 8,451421 5.2% 93214.0% 4-2103 BENEFITS - CPP29,723 33,905 39,85840,187 43,6633,476 8.6% 5,95317.6% 4-2104 BENEFITS - EI19,154 18,103 21,68719,450 20,347897 4.6% 3,58419.8% 4-2105 BENEFITS - DENTAL13,348 14,372 15,29219,096 20,8321,736 9.1% 920 6.4% 4-2106 BENEFITS - HEALTH26,245 27,447 27,98332,658 36,4793,821 11.7% 536 2.0% 4-2107 BENEFITS - LTD/ADD10,814 10,478 12,52614,577 17,8753,298 22.6% 2,04819.5% 4-2108 BENEFITS - OTHER3,111 2,954 3,0993,646 4,083437 12.0% 145 4.9% 4-2200 WAGE RECOVERY-302------ -- TOTAL SALARIES & BENEFITS1,030,955 1,108,127 1,287,037 1,352,518 1,433,78581,2676.0%178,91016.1% 4-4000 OFFICE SUPPLIES3,994 3,806 5,1656,500 6,500- - 1,35935.7% 4-4007 COMPUTER SUPPLIES942-305500 2,5002,000400.0%305- 4-4015 OPERATING MATERIALS8,777 4,920 5,1539,200 10,2001,000 10.9% 233 4.7% 4-4018 LICENSES1,321 1,321 2,7982,800 2,800- - 1,477111.8% 4-4045 MUNICIPAL BUSINESS648509 4,250450450--3,741735.0% 4-4058 OPERATING MATERIALS - ADVERTISING12,021 18,697 34,61215,450 15,000(450) (2.9%) 15,91585.1% 4-5021 MOBILE PLAN CHARGES---535 55116 3.0% - - 4-5026 COURSES & SEMINARS1,443 3,730 3,3843,627 3,70073 2.0% (346) (9.3%) 4-5029 MILEAGE917961 1,3621,400 1,400--40141.7% 4-5059 CONTRACTS154,529 6,069 151,462151,500 134,800(16,700) (11.0%)145,393 2,395.7%Funds for Sport Aurora and Aurora Sports Hall of Fame started being placed into this account in 20184-6001 BANK CHARGES24,852 2,240 2,2522,500 2,500- - 12 0.5% 4-6002 ACTIVE NET CHARGES AND FEES- 19,157 19,18113,500 16,0002,500 18.5% 24 0.1% 4-6003 ACTIVENET ROOM CHARGES AND FEES- 13,784 9,86814,000 10,000(4,000) (28.6%) (3,916)(28.4%) 4-8002 CONTRIBUTIONS TO CAPITAL43,862------ -- 4-8003 CONTRIBUTIONS TO DISCRETIONARY RESERVES44,963 56,760 49,91969,800 87,80018,000 25.8% (6,841)(12.1%) TOTAL OTHER EXPENSES 298,269 131,954 289,711 291,762 294,201 2,439 0.8%157,757 119.6% TOTAL EXPENSES 1,329,224 1,240,081 1,576,748 1,644,280 1,727,986 83,706 5.1%336,667 27.1% NET BUDGET -904,311 -995,647 -556,925 -523,014 -426,014 97,000 18.5%438,722 44.1% Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 3 Page 7 of 11 2016 2017 20182018 20192019 vs 2019 vs 2018 vs 2018 vsFull Year Full Year Full YearApproved Approved2018 Budget2018 Budget2017 Actual2017 ActualVariance ExplanationActuals Actuals ActualsBudget BudgetIncrease / (Decrease) Increase / (Decrease) Increase / (Decrease)Increase / (Decrease)REVENUE: 3-1201 OTHER-209,252 -200,485 -235,015-214,000 -201,000-13,000 (6.1%)34,530 17.2%Pool rentals/seniors bus trips, increase demand and revenue realized3-1203 ADVERTISING-40,124 -40,498 -45,187-40,930 -40,930- - 4,68911.6% 3-1204 SPONSORSHIP-42,420 -51,251 -46,220-34,250 -43,2509,000 26.3% -5,031 (9.8%) 3-1206 DONATIONS-7,158 -15,503 -14,125-2,000 -2,000- - -1,378 (8.9%) 3-1210 ADVERTISING SALES - FACILITIES1,273------ -- 3-1305 MEMBERSHIP FEES-42,900 -32,758 -55,633-44,633 -45,525892 2.0%22,875 69.8%ASA contract. The last 2017 payment got posted to 20183-1306 MEMBERSHIPS - FITNESS-193,880 -165,544 -314,276-210,000 -215,0005,000 2.4%148,732 89.8%Revenue was deferred in Dec. 2017 to 20183-1307 MEMBERSHIPS - RACQUETS-19,317 -10,086 -15,378-15,000 -13,000-2,000 (13.3%) 5,29252.5% 3-1308 MEMBERSHIPS - AQUATICS-28,022 -22,235 -39,140-27,000 -30,0003,000 11.1% 16,90576.0% 3-1309 PROGRAM-174,662 -180,727 -177,803-191,000 -188,000-3,000 (1.6%) -2,924 (1.6%) 3-1310 PROGRAM - FITNESS-30,610 -22,106 -33,112-25,000 -28,0003,000 12.0% 11,00649.8% 3-1311 PROGRAM - RACQUETS-15,680 -15,317 -15,016-11,000 -11,500500 4.5% -301 (2.0%) 3-1312 PROGRAM - AQUATICS-646,425 -567,227 -686,785-630,000 -640,00010,000 1.6%119,558 21.1%No Fall 2017 session and revenue deferred Dec 2017, not posted to 20183-1313 PROGRAM - ADULT-25,496 -20,838 -43,658-20,000 -30,00010,000 50.0%22,820 109.5%Increased demand for adult programming3-1314 PROGRAM - CHILDREN-162,665 -103,077 -95,760-120,000 -100,000-20,000 (16.7%) -7,317 (7.1%) 3-1315 PROGRAM - PRESCHOOL-161,227 -100,319 -90,357-160,000 -120,000-40,000 (25.0%) -9,962 (9.9%) 3-1317 PROGRAM - CAMPS-662,473 -635,761 -628,428-680,000 -635,000-45,000 (6.6%) -7,333 (1.2%) 3-1319 ADMISSIONS-24,935 -24,205 -23,753-26,000 -24,500-1,500 (5.8%) -452 (1.9%) 3-1320 ADMISSIONS - FITNESS-77,810 -73,552 -77,745-75,000 -75,000- - 4,193 5.7% 3-1321 ADMISSIONS - RACQUETS-9,721 -13,673 -13,988-12,000 -12,000- - 315 2.3% 3-1322 ADMISSIONS - AQUATICS-149,549 -114,360 -112,362-112,000 -115,0003,000 2.7% -1,998 (1.7%) 3-1324 PUBLIC SKATING-45,601 -33,845 -38,115-26,000 -27,0001,000 3.8% 4,27012.6% 3-1325 SHINNEY HOCKEY-7,654 -7,005 -7,784-8,000 -8,000- - 77911.1% 3-1326 PERSONAL TRAINING-5,964 -13,752 -19,431-10,000 -12,0002,000 20.0% 5,67941.3% 3-1328 LOCKER FEES-5,889 -7,530 -6,669-4,500 -4,500- - -861(11.4%) 3-1329 SALES COMMISSIONS-4,234 -4,081 -4,014-4,600 -4,600- - -67 (1.6%) 3-1336 VENDOR FEES-5,252 -1,046 -743-800 -800- - -303(29.0%) 3-1337 FLOAT REGISTRATION FEES-1,575 -975 -2,289-1,600 -1,600- - 1,314134.8% 3-1338 ENTRY FEES-23,781 -30,710 -26,740-25,925 -25,925- - -3,970(12.9%) 3-1339 ROCK WALL--951 -1,816- -1,5001,500-86591.0% 3-1800 FEDERAL GRANTS-56,072 -66,699 -70,360-40,000 -20,000-20,000 (50.0%) 3,661 5.5% 3-1801 PROVINCIAL GRANTS-42,700 -50,182 -58,330-51,000 -51,000- - 8,14816.2% 3-1803 OTHER GRANTS-2,000 -2,000 -9,164--- - 7,164358.2% 3-1900 CONTRIBUTION FROM CAPITAL- -43,000------43,000(100.0%)One-time draw to offset pool closure loss of revenue3-1939 RECREATION SPONSORSHIP CONT'N- -2,868 -10,000-10,000 -10,000- - 7,132248.7% Total Revenue-2,923,775 -2,674,166 -3,019,196 -2,832,238 -2,736,630-95,608(3.4%)345,03012.9% EXPENSE: 4-2000 SALARIES - F/T1,176,629 1,195,245 1,270,3541,374,647 1,429,45954,812 4.0%75,1096.3% 4-2001 SALARIES - O/T14,396 16,215 17,004--- - 789 4.9% 4-2002 SALARIES - P/T1,401,894 1,488,581 1,686,0881,635,192 1,706,49071,298 4.4%197,507 13.3%Increase in provincial minimum wage affected part time wage scale.4-2003 VACATION PAY40,185------ -- 4-2004 SICK PAY9,100------ -- 4-2005 LIEU TIME664------ -- 4-2090 YEAR END ACCRUALS23,456 -5,572 13,621--- - 19,193344.5% 4-2100 BENEFITS - OMERS133,994 141,927 151,001143,924 151,2247,300 5.1% 9,074 6.4% 4-2101 BENEFITS - EHT50,076 52,697 58,07456,887 59,2672,380 4.2% 5,37710.2% 4-2102 BENEFITS - WSIB19,127 20,022 22,05621,879 22,795916 4.2% 2,03410.2% 4-2103 BENEFITS - CPP84,865 86,547 95,041112,155 123,47311,318 10.1% 8,494 9.8% 4-2104 BENEFITS - EI59,696 53,481 59,74656,735 59,0712,336 4.1% 6,26511.7% 4-2105 BENEFITS - DENTAL20,247 25,635 25,60631,248 31,248- - (29) (0.1%) 4-2106 BENEFITS - HEALTH41,636 45,231 46,13353,441 54,7191,278 2.4% 902 2.0% 4-2107 BENEFITS - LTD/ADD20,759 23,697 29,28628,358 32,4394,081 14.4% 5,58923.6% 4-2108 BENEFITS - OTHER5,431 5,941 6,6267,090 7,410320 4.5% 68511.5% 4-2200 WAGE RECOVERY-469------ -- TOTAL SALARIES & BENEFITS3,101,686 3,149,647 3,480,636 3,521,556 3,677,595156,0394.4%330,98910.5% Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 3 Page 8 of 11 2016 2017 20182018 20192019 vs 2019 vs 2018 vs 2018 vsFull Year Full Year Full YearApproved Approved2018 Budget2018 Budget2017 Actual2017 ActualVariance ExplanationActuals Actuals ActualsBudget BudgetIncrease / (Decrease) Increase / (Decrease) Increase / (Decrease)Increase / (Decrease)4-4000 OFFICE SUPPLIES2,525 2,739 3,7403,550 3,700150 4.2% 1,00136.5% 4-4010 CLOTHING ALLOWANCE2,562 3,867 5,3375,400 5,400- - 1,47038.0% 4-4015 OPERATING MATERIALS73,135 89,716 114,59578,860 94,90016,040 20.3%24,879 27.7%Increased cost for program materials, including aquatic leadership materials (books etc.)4-4018 LICENSES8168168761,000 1,000--607.4% 4-4021 EQUIPMENT - OTHER22,508 14,031 11,14616,000 19,2003,200 20.0% (2,885)(20.6%) 4-4025 PROGRAM MATERIALS40,953 57,159 41,54844,700 43,200(1,500) (3.4%) (15,611)(27.3%) 4-4026 PROMOTIONAL/RECOGNITION936 2,135 1,0805,200 3,700(1,500) (28.8%) (1,055)(49.4%) 4-4045 MUNICIPAL BUSINESS39461400500500--339555.7% 4-4047 SUPPLIES4,553 4,836 3,8755,000 5,000- - (961)(19.9%) 4-5021 MOBILE PLAN CHARGES---17,794 18,329535 3.0% - - 4-5026 COURSES & SEMINARS3,318 2,512 7,0865,912 5,612(300) (5.1%) 4,574182.1% 4-5027 MANDATORY COURSES & SEMINARS1,2119491541,600 1,600--(795)(83.8%) 4-5028 MEMBERSHIPS1,479 1,867 1,9011,900 1,900- - 34 1.8% 4-5029 MILEAGE4,220 5,270 4,4606,350 6,675325 5.1% (810)(15.4%) 4-5033 EQUIPMENT REPAIRS10,580 11,398 9,89116,700 17,7001,000 6.0% (1,507)(13.2%) 4-5034 EQUIPMENT RENTALS36,665 41,633 48,26648,505 55,5057,000 14.4% 6,63315.9% 4-5046 PRINTING2,706 5,377 6,3379,900 11,0001,100 11.1% 96017.9% 4-5049 POLICE SEARCHES230180-500500--(180)(100.0%) 4-5059 CONTRACTS546,598 502,559 414,451592,000 500,350(91,650) (15.5%)(88,108) (17.5%)Service contract ended (Theatre) and other contracts lower than expected4-5060 COST RECOVERY-7,725 -6,004 -24,518-2,400 -4,000(1,600) (66.7%) (18,514)(308.4%) 4-5065 RENTALS10,533 10,098 9,82917,000 12,000(5,000) (29.4%) (269) (2.7%) 4-5066 CONTRACTS - OUTINGS48,052 64,174 63,39745,000 55,00010,000 22.2% (777) (1.2%) 4-5076 PRINTING - ADVERTISING45,114 42,683 44,47747,500 52,5005,000 10.5% 1,794 4.2% 4-5080 GUARD TEAM COMPETITION-368-500500--(368)(100.0%) 4-5081 SENIORS GAMES888------ -- 4-6002 ACTIVE NET CHARGES AND FEES- 72,603 84,58779,100 86,5257,425 9.4% 11,98416.5% 4-8003 CONTRIBUTIONS TO DISCRETIONARY RESERVE6,320 17,001 11,420--- - (5,581)(32.8%) TOTAL OTHER EXPENSES 858,571 948,028 864,335 1,048,071 998,296 (49,775) (4.7%)(83,693)(8.8%) TOTAL EXPENSES 3,960,257 4,097,675 4,344,971 4,569,627 4,675,891 106,264 2.3%247,2966.0% NET BUDGET 1,036,482 1,423,509 1,325,775 1,737,389 1,939,261 201,872 11.6%(97,734)(6.9%) Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 3 Page 9 of 11 2016 2017 20182018 20192019 vs 2019 vs 2018 vs 2018 vsFull Year Full Year Full YearApproved Approved2018 Budget 2018 Budget 2017 Actual 2017 Actual Variance ExplanationActuals Actuals ActualsBudget BudgetIncrease / (Decrease) Increase / (Decrease) Increase / (Decrease)Increase / (Decrease)REVENUE: 3-1201 OTHER-23,122388 -6,378-15,000 -15,000--6,7661,743.8% 3-1202 GENERAL- -93,863 -63,753-----30,110 (32.1%)Reduction in electricity usage and cost recovery for the Tennis Dome3-1332 LEASES-183,202 -179,547 -183,433-186,221 -228,94542,724 22.9% 3,886 2.2% 3-1803 OTHER GRANTS---350----350- 3-1925 BLDG, FURN & FIX R&R RESERVE CONT'N---- -46,53246,532--- 3-1929 TAX RATE STABILIZATION CONTRIBUTION---- -34,80034,800--- Total Revenue-206,324 -273,022 -253,914 -201,221 -325,277124,05661.7%-19,108(7.0%) EXPENSE: 4-2000 SALARIES - F/T1,478,363 1,568,240 1,603,3761,595,847 1,667,96572,118 4.5%35,1362.2% 4-2001 SALARIES - O/T57,416 60,289 93,12735,498 35,498--32,838 54.5%Coverage to off-set full-time absences4-2002 SALARIES - P/T391,539 360,036 423,312406,773 414,6587,885 1.9%63,276 17.6%Coverage to off-set full-time absences4-2003 VACATION PAY11,180------ -- 4-2004 SICK PAY3,315------ -- 4-2090 YEAR END ACCRUALS15,321 -7,380 -4,424--- - 2,95640.1% 4-2100 BENEFITS - OMERS167,964 169,939 173,411157,329 160,2372,908 1.8% 3,472 2.0% 4-2101 BENEFITS - EHT38,812 37,968 40,50839,295 39,938643 1.6% 2,540 6.7% 4-2102 BENEFITS - WSIB14,379 14,358 15,48315,113 15,361248 1.6% 1,125 7.8% 4-2103 BENEFITS - CPP74,473 73,909 82,41079,196 83,8204,624 5.8% 8,50111.5% 4-2104 BENEFITS - EI41,645 35,744 40,26439,709 40,661952 2.4% 4,52012.6% 4-2105 BENEFITS - DENTAL30,836 32,589 32,68842,880 42,880- - 99 0.3% 4-2106 BENEFITS - HEALTH57,989 62,866 61,06873,333 75,0861,753 2.4% (1,798) (2.9%) 4-2107 BENEFITS - LTD/ADD22,293 24,360 29,36529,144 32,5283,384 11.6% 5,00520.5% 4-2108 BENEFITS - OTHER6,392 14,231 7,6408,232 8,405173 2.1% (6,591)(46.3%) 4-2200 WAGE RECOVERY-765--92----(92)- TOTAL SALARIES & BENEFITS2,411,152 2,447,149 2,598,136 2,522,349 2,617,03794,6883.8%150,9876.2% 4-4000 OFFICE SUPPLIES1,391426 1,4923,000 3,000--1,066250.2% 4-4009 SAFETY SUPPLIES869705363,000 3,000--466665.7% 4-4010 CLOTHING ALLOWANCE18,652 15,221 17,92218,600 20,0001,400 7.5% 2,70117.7% 4-4011 CLEANING SUPPLIES29 1,310-----(1,310)(100.0%) 4-4013 UTILITIES1,805,886 1,879,613 1,685,9721,861,661 2,009,777148,116 8.0%(193,641) (10.3%)Hydro efficiencies. 2020 budget was adjusted to reflect more accurate actuals 4-4014 HEATING FUEL291,107 354,013 364,685367,550 418,70051,150 13.9% 10,672 3.0% 4-4015 OPERATING MATERIALS260,023 223,782-1,000 2,2001,200120.0%(223,782)(100.0%)Due to new account structure in 20184-4018 LICENSES2,464 3,374 2,9684,500 4,500- - (406)(12.0%) 4-4019 VEHICLE SUPPLIES14,984 12,186 13,57017,000 14,000(3,000) (17.6%) 1,38411.4% 4-4021 EQUIPMENT - OTHER6,358 2,052184- 1,0001,000-(1,868)(91.0%) 4-4022 TOOLS4,790291 1,8861,000 4,5003,500350.0%1,595548.1% 4-4028 COST REALLOCATIONS-17,850 -50,000-----50,000100.0%Cost Recovery for Scanlon Building moved to Corporate Accounts4-4040 BUILDING SUPPLIES6,250- 15,96820,000 17,500(2,500)(12.5%)15,968- 4-4045 MUNICIPAL BUSINESS--357450450--357- 4-4070 OPERATING MATERIALS-- 14,6293,000 15,00012,000400.0%14,629- 4-4071 OPERATING MATERIALS ARENA-- 11,95617,000 17,000--11,956- 4-4072 OPERATING MATERIALS CATERING-- 4,1744,000 4,000--4,174- 4-4073 OPERATING MATERIALS HARDWARE & TOOLS-- 7,62548,200 18,950(29,250)(60.7%)7,625- 4-4074 OPERATING MATERIALS OFFICE FURNITURE-- 5,66911,500 11,500--5,669- 4-4075 OPERATING MATERIALS PARTS-- 12,25317,500 12,000(5,500)(31.4%)12,253- 4-4076 OPERATING MATERIALS POOL-- 41,47831,000 31,000--41,478- 4-4077 OPERATING MATERIALS RECYCLING-- 6,5978,100 13,1005,00061.7%6,597- 4-4078 OPERATING MATERIALS SIGNS-- 7,7069,900 9,900--7,706- 4-4079 OPERATING MATERIALS TELECOMMUNICATIONS--7026,900 6,900--702- 4-4080 OPERATING MATERIALS AUDIO/VIDEO-- 8,53810,900 10,900--8,538- 4-4081 OPERATING MATERIALS ELECTRICAL SLUPPLY-- 14,88124,300 15,750(8,550)(35.2%)14,881- 4-4082 OPERATING MATERIALS LOCKS,DOORS&WINDOWS-- 3,62213,500 7,500(6,000)(44.4%)3,622- 4-4083 OPERATING MATERIALS PAINTING SUPPLIES-- 6,92722,400 12,400(10,000)(44.6%)6,927- 4-4084 OPERATING MATERIALS PEST CONTROL-- 1,1703,500 3,85035010.0%1,170- 4-4085 OPERATING MATERIALS JANITORIAL SUPPLY-- 67,75146,500 57,45010,95023.5%67,751- Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 3 Page 10 of 11 2016 2017 20182018 20192019 vs 2019 vs 2018 vs 2018 vsFull Year Full Year Full YearApproved Approved2018 Budget 2018 Budget 2017 Actual 2017 Actual Variance ExplanationActuals Actuals ActualsBudget BudgetIncrease / (Decrease) Increase / (Decrease) Increase / (Decrease)Increase / (Decrease)4-5021 MOBILE PLAN CHARGES---10,031 10,332301 3.0% - - 4-5027 MANDATORY COURSES & SEMINARS5,950 7,133 11,41214,000 14,000- - 4,27960.0% 4-5028 MEMBERSHIPS3,622 2,328 2,8883,500 3,700200 5.7% 56024.1% 4-5029 MILEAGE2,102 1,730 1,6602,500 2,500- - (70) (4.0%) 4-5035 EQUIPMENT SERVICE CONTRACTS89,532 94,014-----(94,014)(100.0%)Due to new account structure in 2018 4-5036 COMPRESSOR REPAIRS45,558 123,016-----(123,016)(100.0%)Due to new account structure in 2018 4-5037 PROPERTY IMPROVEMENT-139-----(139)(100.0%) 4-5038 BUILDING REPAIR & MAINTENANCE395,195 480,773356----(480,417)(99.9%)Due to new account structure in 2018 4-5059 CONTRACTS840,011 656,971 1,0963,500 277,500274,000 7,828.6%(655,875) (99.8%)Due to new account structure in 2018 4-5060 COST RECOVERY----50,000 -50,000-- -- 4-5063 WASTE DISPOSAL FEE33,850 33,850 33,85033,850 34,500650 1.9% - - 4-5200 EQUIP SERV CONTRACTS---2,150 -(2,150) (100.0%) - - 4-5202 EQUIP SERV CONTRACTS ARENA---13,000 6,000(7,000) (53.8%) - - 4-5203 EQUIP SERV CONTRACTS CATERING EQUIP---8,100 8,100-- -- 4-5204 EQUIP SERV CONTRACTS HDWR & TOOLS---1,200 1,200-- -- 4-5205 EQUIP SERV CONTRACTS POOL-- 1,2388,000 8,000--1,238- 4-5206 EQUIP SERV CONTRACTS RECYCLING TUBES---5,500 5,500-- -- 4-5207 EQUIP SERV CONTRACTS TELECOMMUNICATIONS-- 30,59923,200 33,0009,80042.2%30,599- 4-5208 EQUIP SERV CONTRACS AUDIO/VIDEO--3059,500 9,500--305- 4-5209 EQUIP SERV CONTRACTS ELECTRICAL-- 9,97810,100 30,60020,500203.0%9,978- 4-5210 EQUIP SERV CONTRACTS CLEANING OTHER-- 4,09428,400 10,000(18,400)(64.8%)4,094- 4-5211 EQUIP SERV CONTRACTS SECURITY---23,711 13,711(10,000) (42.2%) - - 4-5300 COMPRESSOR REPAIRS CONTRACT-- 22,69817,850 32,85015,00084.0%22,698- 4-5301 COMPRESSOR REPARIS R&M-- 54,37050,150 50,150--54,370- 4-5400 BLDG R&M-- 33,37618,500 17,900(600)(3.2%)33,376- 4-5401 R&M ARENA-- 55,00358,500 38,500(20,000)(34.2%)55,003- 4-5402 R&M POOL-- 11,39326,500 26,500--11,393- 4-5403 R&M GENERATOR-- 11,3435,000 15,50010,500210.0%11,343- 4-5404 R&M LIFE SAFETY-- 16,60721,700 11,700(10,000)(46.1%)16,607- 4-5405 R&M LOCKS,DOORS&WINDOWS-- 65,71918,200 43,95025,750141.5%65,719- 4-5406 R&M PAINTING/CONTRACTOR-- 9,86110,000 16,5006,50065.0%9,861- 4-5407 R&M PLUMBING-- 84,01833,700 58,70025,00074.2%84,018- 4-5408 R&M ROOFING-- 10,35024,500 25,5001,0004.1%10,350- 4-5409 R&M MONITORING--688,700 8,700--68- 4-5410 R&M ELECTRICAL-- 73,62133,200 63,20030,00090.4%73,621- 4-5411 R&M ELEVATOR-- -7,7933,500 3,500--(7,793)- 4-5412 R&M HVAC-- 1,098178,200 78,200(100,000)(56.1%)1,098- 4-5413 R&M HVAC BAS-- 41,30111,500 47,00035,500308.7%41,301- 4-5414 R&M HVAC WATER TREATMENT--748,500 8,500--74- 4-5415 R&M SECURITY-- 13,90611,500 11,8003002.6%13,906- 4-5501 CONTRACTS GENERATOR---16,200 6,200(10,000) (61.7%) - - 4-5502 CONTRACTS LIFE SAFETY-- 39,22723,240 35,77012,53053.9%39,227- 4-5503 CONTRACTS PEST CONTROL-- 1,45211,860 5,000(6,860)(57.8%)1,452- 4-5504 CONTRACTS MONITORING-244 34,54226,750 34,0607,31027.3%34,29814,056.6%Due to new account structure in 2018 4-5505 CONTRACTS CLEANING-- 433,384453,000 474,20021,2004.7%433,384- 4-5506 CONTRACTS ELEVATOR-- 51,51136,000 36,000--51,511- 4-5507 CONTRACTS HVAC PREV MTCE-- 215,91189,250 139,25050,00056.0%215,911- 4-5508 CONTRACTS HVAC BAS---35,500 -(35,500) (100.0%) - - 4-5509 CONTRACTS WATER TREATMENT-- 25,05118,100 18,100--25,051- 4-8003 CONTRIBUTIONS TO DISCRETIONARY RESERVES4,963 53,83142618,370 18,370--(53,405)(99.2%)Solar Panel one-time contribution to reservesTOTAL OTHER EXPENSES3,815,736 3,896,367 3,717,211 3,994,173 4,489,570495,39712.4%(179,156)(4.6%) TOTAL EXPENSES6,226,888 6,343,516 6,315,347 6,516,522 7,106,607590,0859.1%(28,169)(0.4%) NET BUDGET6,020,564 6,070,494 6,061,433 6,315,301 6,781,330466,0297.4%(9,061)(0.1%) Finance Advisory Committee Meeting Agenda Wednesday, December 18, 2019 Item 3 Page 11 of 11