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AGENDA - Finance Advisory Committee - 20200128 Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 5:45 p.m. Holland Room Aurora Town Hall Public Release January 15, 2020 Town of Aurora Finance Advisory Committee Meeting Agenda Date: Tuesday, January 21, 2020 Time and Location: 5:45 p.m., Holland Room, Aurora Town Hall Appointment of Committee Chair Recommended: That a Committee member be appointed as Chair for Year 2020 of the Finance Advisory Committee 2018-2022 Term. 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 December 18, 2019 Recommended: That the Finance Advisory Committee meeting minutes of December 18, 2019, be received for information. 4. Delegations Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Page 2 of 2 5. Consideration of Items 1. Review of Detailed Financial Budget Information Re: Community Services Recommended: 1. That the comments and suggestions of the Review of Detailed Financial Budget Information for Community Services be received and referred to staff for consideration and action as appropriate. 2. FAC20-001 – FAC Review of Prudent Investor Regime Recommended: 1. That Report No. FAC20-001 be received; and 2. That the Finance Advisory Committee provide staff with feedback regarding the Prudent Investor Regime. 3. 2020 Work Plan for Finance Advisory Committee Recommended: 1. That the proposed 2020 Work Plan for the Finance Advisory Committee be received; and 2. That the 2020 Work Plan be approved. 6. New Business 7. Adjournment Town of Aurora Finance Advisory Committee Meeting Minutes Date: Wednesday, December 18, 2019 Time and Location: 5:00 p.m., Holland Room, Aurora Town Hall Committee Members: Councillor Michael Thompson (Chair), Councillor John Gallo, Mayor Tom Mrakas (departed at 6:15 p.m.) Member(s) Absent: None Other Attendees: Keith Taylor, Investment Manager, ONE Investment, Colin Macdonald, Investment Services Manager, Municipal Finance Officers’ Association of Ontario, Doug Nadorozny, Chief Administrative Officer, Rachel Wainwright-van Kessel, Director of Finance, Jason Gaertner, Manager, Financial Management Services, Karen Oreto, Financial Analyst, Laura Sheardown, Financial Analyst, Ishita Soneji, Council/Committee Coordinator Councillor Gallo was re-appointed to the Finance Advisory Committee at the Council meeting of October 22, 2019. The meeting time was changed to 5 p.m. The Chair called the meeting to order at 5:05 p.m. 1. Approval of the Agenda Moved by Councillor Gallo Seconded by Mayor Mrakas That the agenda as circulated by Legislative Services be approved. Carried Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Minutes Page 1 of 4 Finance Advisory Committee Meeting Minutes Wednesday, December 18, 2019 Page 2 of 4 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. 3. Receipt of the Minutes Finance Advisory Committee Meeting Minutes of September 25, 2019 Moved by Mayor Mrakas Seconded by Councillor Gallo That the Finance Advisory Committee meeting minutes of September 25, 2019, be received for information. Carried 4. Delegations None 5. Consideration of Items The Committee consented to consider the items in the following order: Items 3, 2, and 1. 1. Memorandum from Financial Management Advisor Re: Review of Investment Policy Statement under Prudent Investor Regime Staff provided a brief overview of the memorandum and the process in adopting the Prudent Investor Regime thus far noting that the investment policy statement would outline the framework for long-term funds management to be managed by ONE Joint Investment Board (JIB). Mr. Keith Taylor and Mr. Colin Macdonald, representing ONE Investment and Municipal Finance Officers’ Association of Ontario respectively, were present to respond to any questions. The Committee sought clarification on the ONE JIB process in determining the funding strategy and framework, parameters of determining investment Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Minutes Page 2 of 4 Finance Advisory Committee Meeting Minutes Wednesday, December 18, 2019 Page 3 of 4 specific risk tolerances, asset allocation and potential return on investments, the reporting structure, and inquired about obtaining a legal opinion on Council liability. Staff provided clarifications noting that ONE JIB would determine the funding strategy specific to the Town based on the details provided in the investment policy statement, municipal client questionnaire, and the current financial circumstances communicated to ONE JIB. The Committee requested further information regarding possible asset allocations and best practices, projected return on investments and associated risks, and suggested that in addition to an annual report to Council, a quarterly report to the Finance Advisory Committee be provided as part of the process. Moved by Councillor Gallo Seconded by Mayor Mrakas 1. That the memorandum regarding Review of Investment Policy Statement under Prudent Investor Regime, be received; and 2. That the comments and suggestions regarding the Review of Investment Policy Statement under Prudent Investor Regime be referred to staff for consideration and action as appropriate. Carried 2. Memorandum from Project Management Office Re: Town’s Major Capital Projects Update Staff provided a status update of the Town’s current major capital projects, noting that all projects are on schedule and on budget, and that staff is currently working on delay claims regarding the Armoury project. The Committee inquired about the possibility of sending notifications to residents residing around the fire hall site and requested that the sign on the site be updated upon award of contract and finalization of the new design. Moved by Mayor Mrakas Seconded by Councillor Gallo 1. That the memorandum regarding Town’s Major Capital Projects Update be received for information. Carried Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Minutes Page 3 of 4 Finance Advisory Committee Meeting Minutes Wednesday, December 18, 2019 Page 4 of 4 3. Distribution and Introduction of Detailed Financial Budget Information Re: Community Services Department Staff noted that Robin McDougall, Director of Community Services would be present at the next meeting to review the detailed budget information for the Community Services department. The Committee requested that 2018 actual and the most recent 2019 forecast amounts and variance explanations be provided at the next meeting for discussion. Moved by Councillor Gallo Seconded by Mayor Mrakas 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. Carried 6. New Business None 7. 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;ϮϬ͕ϴϯϴͿ ;ϰϯ͕ϲϱϴͿ;ϯϬ͕ϬϬϬͿ ;ϰϭ͕ϵϴϰͿ;ϭ͕ϲϳϰͿ ;ϰ͘ϬйͿ ϯͲϭϯϭϰWZK'ZDͲ,/>ZE;ϭϲϮ͕ϲϲϱͿ ;ϭϬϯ͕ϬϳϳͿ ;ϵϱ͕ϳϲϬͿ;ϭϬϬ͕ϬϬϬͿ ;ϴϴ͕ϬϮϲͿ;ϳ͕ϳϯϰͿ ;ϴ͘ϴйͿ ϯͲϭϯϭϱWZK'ZDͲWZ^,KK>;ϭϲϭ͕ϮϮϳͿ ;ϭϬϬ͕ϯϭϵͿ ;ϵϬ͕ϯϱϳͿ;ϭϮϬ͕ϬϬϬͿ ;ϵϲ͕ϭϬϬͿϱ͕ϳϰϯ ϲ͘Ϭй ϯͲϭϯϭϳWZK'ZDͲDW^;ϲϲϮ͕ϰϳϯͿ ;ϲϯϱ͕ϳϲϭͿ ;ϲϮϴ͕ϰϮϴͿ;ϲϯϱ͕ϬϬϬͿ ;ϳϬϮ͕ϯϱϱͿϳϯ͕ϵϮϳ ϭϬ͘ϱйEĞǁƉƌŽŐƌĂŵƐĂŶĚŚŝŐŚĞƌƌĞŐŝƐƚƌĂƚŝŽŶŶƵŵďĞƌƐƌĞƐƵůƚĞĚŝŶŚŝŐŚĞƌƚŚĂŶďƵĚŐĞƚĞĚƌĞǀĞŶƵĞ͘ϯͲϭϯϭϵD/^^/KE^;Ϯϰ͕ϵϯϱͿ ;Ϯϰ͕ϮϬϱͿ ;Ϯϯ͕ϳϱϯͿ;Ϯϰ͕ϱϬϬͿ ;Ϯϱ͕ϵϵϯͿϮ͕ϮϰϬ ϴ͘ϲй ϯͲϭϯϮϬD/^^/KE^Ͳ&/dE^^;ϳϳ͕ϴϭϬͿ ;ϳϯ͕ϱϱϮͿ ;ϳϳ͕ϳϰϱͿ;ϳϱ͕ϬϬϬͿ ;ϴϮ͕ϳϯϬͿϰ͕ϵϴϱ ϲ͘Ϭй ϯͲϭϯϮϭD/^^/KE^ͲZYhd^;ϵ͕ϳϮϭͿ ;ϭϯ͕ϲϳϯͿ ;ϭϯ͕ϵϴϴͿ;ϭϮ͕ϬϬϬͿ ;ϭϰ͕ϳϯϴͿϳϱϬ ϱ͘ϭй ϯͲϭϯϮϮD/^^/KE^ͲYhd/^;ϭϰϵ͕ϱϰϵͿ ;ϭϭϰ͕ϯϲϬͿ ;ϭϭϮ͕ϯϲϮͿ;ϭϭϱ͕ϬϬϬͿ ;ϭϭϯ͕ϰϰϮͿϭ͕ϬϴϬ ϭ͘Ϭй ϯͲϭϯϮϯ/ZEd>;ϭ͕ϳϲϯ͕ϴϯϰͿ ;ϭ͕ϴϬϵ͕ϭϵϮͿ ;ϭ͕ϳϵϴ͕ϭϰϵͿ;ϭ͕ϳϴϱ͕ϬϬϬͿ ;ϭ͕ϴϰϳ͕ϭϴϴͿϰϵ͕ϬϯϵϮ͘ϳй ϯͲϭϯϮϰWh>/^<d/E';ϰϱ͕ϲϬϭͿ ;ϯϯ͕ϴϰϱͿ ;ϯϴ͕ϭϭϱͿ;Ϯϳ͕ϬϬϬͿ ;ϯϮ͕ϳϱϯͿ;ϱ͕ϯϲϮͿ;ϭϲ͘ϰйͿϯͲϭϯϮϱ^,/EEz,K<z;ϳ͕ϲϱϰͿ ;ϳ͕ϬϬϱͿ ;ϳ͕ϳϴϰͿ;ϴ͕ϬϬϬͿ ;ϭϬ͕ϲϭϭͿϮ͕ϴϮϳϮϲ͘ϲйϯͲϭϯϮϲWZ^KE>dZ/E/E';ϱ͕ϵϲϰͿ ;ϭϯ͕ϳϱϮͿ ;ϭϵ͕ϰϯϭͿ;ϭϮ͕ϬϬϬͿ ;ϭϲ͕ϮϰϭͿ;ϯ͕ϭϵϬͿ;ϭϵ͘ϲйͿϯͲϭϯϮϴ>K<Z&^;ϱ͕ϴϴϵͿ ;ϳ͕ϱϯϬͿ ;ϲ͕ϲϲϵͿ;ϰ͕ϱϬϬͿ ;ϯ͕ϰϱϱͿ;ϯ͕ϮϭϰͿ;ϵϯ͘ϬйͿϯͲϭϯϮϵ^>^KDD/^^/KE^;ϰ͕ϮϯϰͿ ;ϰ͕ϬϴϭͿ ;ϰ͕ϬϭϰͿ;ϰ͕ϲϬϬͿ ;ϭ͕ϴϰϵͿ;Ϯ͕ϭϲϱͿ;ϭϭϳ͘ϭйͿϯͲϭϯϯϮ>^^;ϭϴϯ͕ϮϬϮͿ ;ϭϳϵ͕ϱϰϳͿ ;ϭϴϯ͕ϰϯϯͿ;ϮϮϴ͕ϵϰϱͿ ;ϮϮϴ͕ϵϰϲͿϰϱ͕ϱϭϯ ϭϵ͘ϵй/ŶĐƌĞĂƐĞĚƵĞƚŽƌŵŽƵƌǇůĞĂƐĞŝŶϮϬϭϵ͘ϯͲϭϯϯϲsEKZ&^;ϱ͕ϮϱϮͿ ;ϭ͕ϬϰϲͿ ;ϳϰϯͿ;ϴϬϬͿ ;ϳ͕ϭϬϮͿϲ͕ϯϱϵϴϵ͘ϱйϯͲϭϯϯϳ&>KdZ'/^dZd/KE&^;ϭ͕ϱϳϱͿ ;ϵϳϱͿ ;Ϯ͕ϮϴϵͿ;ϭ͕ϲϬϬͿ ;Ϯ͕ϬϱϬͿ;ϮϯϵͿ;ϭϭ͘ϳйͿϯͲϭϯϯϴEdZz&^;Ϯϯ͕ϳϴϭͿ ;ϯϬ͕ϳϭϬͿ ;Ϯϲ͕ϳϰϬͿ;Ϯϱ͕ϵϮϱͿ ;Ϯϳ͕ϬϰϬͿϯϬϬ ϭ͘ϭй ϯͲϭϯϯϵZK<t>>Ͳ ;ϵϱϭͿ ;ϭ͕ϴϭϲͿ;ϭ͕ϱϬϬͿ ;ϭ͕ϵϯϳͿϭϮϭ ϲ͘Ϯй ϯͲϭϴϬϬ&Z>'ZEd^;ϲϬ͕ϬϳϮͿ ;ϳϮ͕ϲϵϵͿ ;ϵϰ͕ϬϮϬͿ;ϮϬ͕ϬϬϬͿ ;ϭϵ͕ϳϬϬͿ;ϳϰ͕ϯϮϬͿ ;ϯϳϳ͘ϯйͿϮϬϭϵĨŽƌĞĐĂƐƚĂŵŽƵŶƚŝƐŝŶĐŽƌƌĞĐƚ͘ZĞĐĞŝǀĞĚΨϱϭ͕ϬϬϬŝŶĨĞĚĞƌĂůŐƌĂŶƚƐĨŽƌϮϬϭϵ͘,ŽǁĞǀĞƌ͕ŶŽůŽŶŐĞƌƌĞĐĞŝǀŝŶŐƚŚĞĂŶĂĚĂĂǇŐƌĂŶƚƌĞƐƵůƚŝŶŐŝŶĂĚŝĨĨĞƌĞŶĐĞŽĨΨϮϬ͕ϬϬϬĨƌŽŵϮϬϭϴƚŽϮϬϭϵ͘ϯͲϭϴϬϭWZKs/E/>'ZEd^;ϰϮ͕ϳϬϬͿ ;ϱϬ͕ϭϴϮͿ ;ϱϴ͕ϯϯϬͿ;ϱϭ͕ϬϬϬͿ ;ϰϴ͕ϵϮϯͿ;ϵ͕ϰϬϳͿ;ϭϵ͘ϮйͿϯͲϭϴϬϯKd,Z'ZEd^;Ϯ͕ϬϬϬͿ ;Ϯ͕ϬϬϬͿ ;ϵ͕ϱϭϰͿͲ ;Ϯ͕ϰϰϬͿ;ϳ͕ϬϳϰͿ;Ϯϴϵ͘ϵйͿϯͲϭϵϬϬKEdZ/hd/KE&ZKDW/d>Ͳ ;ϰϯ͕ϬϬϬͿͲͲͲͲͲϯͲϭϵϬϭKEdZ/hd/KE&ZKD/^Zd/KEZzZ^Zs^;ϭϬϮ͕ϬϬϬͿͲͲ;ϯ͕ϱϬϬͿ ;Ϯ͕ϬϬϬͿϮ͕ϬϬϬϭϬϬ͘ϬйϯͲϭϵϮϱ>'͕&hZEΘ&/yZΘZZ^ZsKEdΖEͲͲͲ;ϰϲ͕ϱϯϮͿ ;ϰϲ͕ϱϯϮͿϰϲ͕ϱϯϮ ϭϬϬ͘Ϭй&ĂĐŝůŝƚǇĂƉŝƚĂůWƌŽũĞĐƚŽŽƌĚŝŶĂƚŽƌĨƵŶĚŝŶŐ͘ϯͲϭϵϮϵdyZd^d/>/d/KEKEdZ/hd/KEͲ ;ϰϬ͕ϬϬϬͿͲ;ϯϰ͕ϴϬϬͿ ;ϯϰ͕ϴϬϬͿϯϰ͕ϴϬϬϭϬϬ͘ϬйƌĂǁĨŽƌƐƚĂďŝůŝǌĂƚŝŽŶŽĨƌŵŽƵƌǇĐŽƐƚƐ͘ϯͲϭϵϯϵZZd/KE^WKE^KZ^,/WKEdΖEͲ ;Ϯ͕ϴϲϴͿ ;ϭϬ͕ϬϬϬͿ;ϭϬ͕ϬϬϬͿ ;ϭϬ͕ϬϬϬͿͲͲϯͲϭϵϳϭZd^Θh>dhZ>KEdZ/hd/KE;ϱ͕ϬϬϬͿ ;ϱ͕ϬϬϬͿ ;ϱ͕ϬϬϬͿ;ϱ͕ϬϬϬͿ ;ϱ͕ϬϬϬͿͲͲdŽƚĂůZĞǀĞŶƵĞ;ϱ͕ϯϳϰ͕ϴϵϲͿ ;ϱ͕ϮϬϭ͕ϯϮϲͿ ;ϱ͕ϰϯϳ͕ϴϱϵͿ ;ϱ͕ϮϮϰ͕ϰϬϳͿ ;ϱ͕ϲϰϰ͕ϯϬϱͿϮϬϲ͕ϰϰϲϯ͘ϳй yWE^͗ϰͲϮϬϬϬ^>Z/^Ͳ&ͬdϯ͕ϱϱϵ͕ϱϯϭ ϯ͕ϲϵϱ͕ϵϴϲ ϯ͕ϴϬϬ͕ϰϴϱϰ͕ϯϯϮ͕ϯϮϮ ϰ͕ϭϱϰ͕ϱϲϳϯϱϰ͕ϬϴϮϴ͘ϱй ϰͲϮϬϬϭ^>Z/^ͲKͬdϳϲ͕ϯϱϳ ϴϮ͕ϱϲϱ ϭϭϲ͕ϭϱϮϯϱ͕ϰϵϴ ϵϱ͕ϵϵϵ;ϮϬ͕ϭϱϯͿ ;Ϯϭ͘ϬйͿŽǀĞƌĂŐĞƚŽŽĨĨƐĞƚĨƵůůͲƚŝŵĞĂďƐĞŶĐĞƐǁĂƐŚŝŐŚĞƌŝŶϮϬϭϴ͘ϰͲϮϬϬϮ^>Z/^ͲWͬdϮ͕Ϭϭϯ͕ϴϳϰ Ϯ͕ϭϴϱ͕ϬϮϵ Ϯ͕ϲϬϳ͕ϴϭϭϮ͕ϱϭϭ͕ϲϳϯ Ϯ͕ϱϴϳ͕ϭϭϭ;ϮϬ͕ϳϬϬͿ;Ϭ͘ϴйͿ ϰͲϮϬϬϯsd/KEWzϱϳ͕ϯϲϱͲͲͲͲͲͲϰͲϮϬϬϰ^/<Wzϭϯ͕ϵϭϵͲͲͲͲͲͲϰͲϮϬϬϱ>/hd/DϵϬϭͲͲͲͲͲͲϰͲϮϬϵϬzZEZh>^ϰϰ͕ϰϵϲ ;ϳ͕ϵϮϭͿ Ϯϵ͕ϮϳϳͲ ;ϲϬ͕ϵϰϴͿ;ϵϬ͕ϮϮϱͿ ;ϭϰϴ͘ϬйͿzĞĂƌͲĞŶĚĂĐĐƌƵĂůƐǀĂƌǇĨƌŽŵǇĞĂƌƚŽǇĞĂƌďĂƐĞĚŽŶƉĂǇƉĞƌŝŽĚĞŶĚŝŶŐĚĂƚĞƐ͘ϰͲϮϭϬϬE&/d^ͲKDZ^ϰϬϲ͕ϮϵϮ ϰϭϴ͕ϰϳϲ ϰϮϳ͕ϲϲϮϰϯϱ͕ϳϱϴ ϰϲϴ͕ϭϳϬϰϬ͕ϱϬϴϴ͘ϳй ϰͲϮϭϬϭE&/d^Ͳ,dϭϭϭ͕ϳϮϯ ϭϭϱ͕ϲϬϭ ϭϮϲ͕ϰϴϯϭϮϵ͕ϯϵϭ ϭϯϯ͕ϲϬϱϳ͕ϭϮϮ ϱ͘ϯй ϰͲϮϭϬϮE&/d^Ͳt^/ϰϭ͕ϯϵϭ ϰϯ͕ϭϳϭ ϰϳ͕ϳϬϭϰϵ͕ϳϲϲ ϱϬ͕ϳϯϴϯ͕Ϭϯϳ ϲ͘Ϭй ϰͲϮϭϬϯE&/d^ͲWWϭϵϲ͕ϯϬϵ ϮϬϰ͕Ϯϳϵ ϮϮϴ͕ϰϰϱϮϲϭ͕ϵϯϭ Ϯϯϲ͕ϴϱϭϴ͕ϰϬϲ ϯ͘ϱй ϰͲϮϭϬϰE&/d^Ͳ/ϭϮϰ͕Ϯϵϳ ϭϭϭ͕ϵϳϯ ϭϮϲ͕ϴϰϰϭϮϱ͕ϮϰϮ ϭϮϱ͕ϭϮϭ;ϭ͕ϳϮϯͿ ;ϭ͘ϰйͿ ϰͲϮϭϬϱE&/d^ͲEd>ϲϵ͕ϲϰϱ ϳϳ͕ϳϭϰ ϳϵ͕ϵϱϯϭϬϭ͕ϵϬϰ ϴϯ͕ϳϳϱϯ͕ϴϮϮ ϰ͘ϲй ϰͲϮϭϬϲE&/d^Ͳ,>d,ϭϯϰ͕ϵϵϮ ϭϰϲ͕ϯϳϳ ϭϰϲ͕ϯϳϭϭϳϴ͕ϰϰϯ ϭϱϬ͕ϳϯϲϰ͕ϯϲϱ Ϯ͘ϵй ϰͲϮϭϬϳE&/d^Ͳ>dͬϱϴ͕ϲϰϮ ϲϯ͕ϴϵϮ ϳϴ͕ϭϬϮϵϮ͕ϭϳϱ ϴϯ͕ϱϬϴϱ͕ϰϬϲ ϲ͘ϱй Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 1 Page 1 of 10 ϮϬϭϲ ϮϬϭϳ ϮϬϭϴϮϬϭϵ ϮϬϭϵϮϬϭϵ&ĐƐƚǀƐ ϮϬϭϵ&ĐƐƚǀƐ&ƵůůzĞĂƌ &ƵůůzĞĂƌ &ƵůůzĞĂƌƉƉƌŽǀĞĚ &ŽƌĞĐĂƐƚϮϬϭϴĐƚƵĂů ϮϬϭϴĐƚƵĂůsĂƌŝĂŶĐĞǆƉůĂŶĂƚŝŽŶĐƚƵĂůƐ ĐƚƵĂůƐ ĐƚƵĂůƐƵĚŐĞƚ ƚŽzĞĂƌͲĞŶĚ/ŶĐƌĞĂƐĞͬ;ĞĐƌĞĂƐĞͿ /ŶĐƌĞĂƐĞͬ;ĞĐƌĞĂƐĞͿϰͲϮϭϬϴE&/d^ͲKd,Zϭϲ͕ϰϯϬ Ϯϰ͕ϳϯϬ ϭϵ͕ϭϮϵϮϮ͕Ϭϯϭ ϭϴ͕ϳϯϳ;ϯϵϮͿ ;Ϯ͘ϭйͿ ϰͲϮϮϬϬt'ZKsZz;ϭ͕ϱϯϱͿͲ;ϵϮͿͲͲϵϮͲ ϰͲϮϮϬϭ^>Zz^s/E'^ͲͲͲ;ϰϳ͕ϭϯϱͿ ͲͲͲdKd>^>Z/^ΘE&/d^ ϲ͕ϵϮϰ͕ϲϮϵ ϳ͕ϭϲϭ͕ϴϳϮ ϳ͕ϴϯϰ͕ϯϮϯ ϴ͕ϮϮϴ͕ϵϵϵ ϴ͕ϭϮϳ͕ϵϳϬϮϵϯ͕ϲϰϳϯ͘ϲй ϰͲϯϬϬϬWhZ,^Z>Z/E'ϯϴϳ ϭ͕Ϯϰϳ ϮϳϳͲ ;ϮϬϰͿ;ϰϴϭͿ;Ϯϯϱ͘ϴйͿϰͲϰϬϬϬK&&/^hWW>/^ϵ͕ϱϲϱ ϵ͕ϰϵϵ ϭϮ͕ϳϯϲϭϱ͕ϮϬϬ ϭϰ͕Ϭϭϲϭ͕ϮϴϬ ϵ͘ϭй ϰͲϰϬϬϲK&&/Yh/WDEdͲͲϳϯϵϭ͕ϱϬϬ ϭ͕ϯϯϵϲϬϬϰϰ͘ϴйϰͲϰϬϬϳKDWhdZ^hWW>/^ϵϰϮͲϯϬϱϮ͕ϱϬϬ Ϯ͕ϯϳϯϮ͕Ϭϲϴϴϳ͘ϭйϰͲϰϬϬϵ^&dz^hWW>/^ϴϲϵϳϬ ϱϯϲϯ͕ϬϬϬ ϴϰϵϯϭϯϯϲ͘ϵйϰͲϰϬϭϬ>Kd,/E'>>KtEϮϭ͕Ϯϭϰ ϭϵ͕Ϭϴϴ Ϯϯ͕ϮϱϵϮϱ͕ϰϬϬ Ϯϱ͕ϭϲϯϭ͕ϵϬϰ ϳ͘ϲй ϰͲϰϬϭϭ>E/E'^hWW>/^Ϯϵ ϭ͕ϯϭϬͲͲͲͲͲϰͲϰϬϭϯhd/>/d/^ϭ͕ϴϬϱ͕ϴϴϲ ϭ͕ϴϳϵ͕ϲϭϯ ϭ͕ϲϴϱ͕ϵϳϮϮ͕ϬϬϵ͕ϳϳϳ ϭ͕ϴϰϬ͕ϳϳϵϭϱϰ͕ϴϬϳϴ͘ϰй ϰͲϰϬϭϰ,d/E'&h>Ϯϵϭ͕ϭϬϳ ϯϱϰ͕Ϭϭϯ ϯϲϰ͕ϲϴϱϰϭϴ͕ϳϬϬ ϯϰϴ͕ϰϭϵ;ϭϲ͕ϮϲϲͿ ;ϰ͘ϳйͿ ϰͲϰϬϭϱKWZd/E'DdZ/>^ϯϲϯ͕Ϭϰϴ ϯϳϳ͕ϳϰϵ ϭϵϳ͕ϭϮϴϭϴϰ͕ϴϴϴ ϭϴϴ͕ϵϭϯ;ϴ͕ϮϭϱͿ ;ϰ͘ϯйͿ ϰͲϰϬϭϴ>/E^^ϱ͕Ϭϰϵ ϱ͕ϱϭϭ ϳ͕ϲϱϯϵ͕ϰϬϬ ϴ͕ϯϱϰϳϬϭ ϴ͘ϰй ϰͲϰϬϭϵs,/>^hWW>/^ϭϰ͕ϵϴϰ ϭϮ͕ϭϴϲ ϭϯ͕ϱϳϬϭϰ͕ϬϬϬ ϭϰ͕ϮϲϬϲϵϬ ϰ͘ϴй ϰͲϰϬϮϭYh/WDEdͲKd,ZϮϴ͕ϴϲϳ ϭϲ͕Ϭϴϯ ϭϭ͕ϯϯϬϮϬ͕ϮϬϬ ϭϲ͕ϮϵϮϰ͕ϵϲϮϯϬ͘ϱйϰͲϰϬϮϮdKK>^ϰ͕ϳϵϬ Ϯϵϭ ϭ͕ϴϴϲϰ͕ϱϬϬ ϯ͕ϵϮϭϮ͕Ϭϯϱϱϭ͘ϵйϰͲϰϬϮϱWZK'ZDDdZ/>^ϰϬ͕ϵϱϯ ϱϳ͕ϭϱϵ ϰϭ͕ϱϰϴϰϯ͕ϮϬϬ ϰϲ͕ϴϳϰϱ͕ϯϮϲϭϭ͘ϰйϰͲϰϬϮϲWZKDKd/KE>ͬZK'E/d/KEϵϯϲ Ϯ͕ϭϯϱ ϭ͕ϬϴϬϯ͕ϳϬϬ ϭ͕ϱϬϱϰϮϱϮϴ͘ϮйϰͲϰϬϮϴK^dZ>>Kd/KE^;ϭϳ͕ϴϱϬͿ ;ϱϬ͕ϬϬϬͿͲͲͲͲͲϰͲϰϬϰϬh/>/E'^hWW>/^ϲ͕ϮϱϬͲ ϭϱ͕ϵϲϴϭϳ͕ϱϬϬ ϭϲ͕ϬϱϴϵϬϬ͘ϲй ϰͲϰϬϰϱDhE//W>h^/E^^ϰ͕ϯϭϯ ϯ͕ϮϬϭ ϭϮ͕ϴϯϱϯ͕ϵϬϬ ϭϯ͕ϮϯϲϰϬϭ ϯ͘Ϭй ϰͲϰϬϰϳ^hWW>/^ϰ͕ϱϱϯ ϰ͕ϴϯϲ ϯ͕ϴϳϱϱ͕ϬϬϬ ϱ͕ϳϳϯϭ͕ϴϵϴϯϮ͘ϵйϰͲϰϬϱϴKWZd/E'DdZ/>^ͲsZd/^/E'ϭϮ͕ϬϮϭ ϭϴ͕ϲϵϳ ϯϰ͕ϲϭϮϭϱ͕ϬϬϬ Ϯϰ͕Ϯϲϰ;ϭϬ͕ϯϰϴͿ;ϰϮ͘ϲйͿϰͲϰϬϳϬKWZd/E'DdZ/>^ͲͲ ϭϰ͕ϲϮϵϭϱ͕ϬϬϬ ϭϵ͕ϯϰϱϰ͕ϳϭϲϮϰ͘ϰйϰͲϰϬϳϭKWZd/E'DdZ/>^ZEͲͲ ϭϭ͕ϵϱϲϭϳ͕ϬϬϬ ϭϭ͕ϯϬϴ;ϲϰϴͿ;ϱ͘ϳйͿ ϰͲϰϬϳϮKWZd/E'DdZ/>^dZ/E'ͲͲ ϰ͕ϭϳϰϰ͕ϬϬϬ Ϯ͕ϵϭϰ;ϭ͕ϮϲϬͿ;ϰϯ͘ϮйͿϰͲϰϬϳϯKWZd/E'DdZ/>^,ZtZΘdKK>^ͲͲ ϳ͕ϲϮϱϭϴ͕ϵϱϬ Ϯϳ͕ϴϯϴϮϬ͕ϮϭϯϳϮ͘ϲйZĞĚƵĐĞĚƚŚĞďƵĚŐĞƚŝŶϮϬϭϵďĂƐĞĚŽŶϮϬϭϴƐƉĞŶĚĂŶĚĞŶĚĞĚƵƉŐŽŝŶŐŽǀĞƌŝŶƚŚŝƐĂĐĐŽƵŶƚ͘ůƐŽƐŽŵĞĞǆƉĞŶƐĞƐĂƌĞƌĞůĂƚĞĚƚŽƚŚĞƌŵŽƵƌǇ͘ϰͲϰϬϳϰKWZd/E'DdZ/>^K&&/&hZE/dhZͲͲ ϱ͕ϲϲϵϭϭ͕ϱϬϬ ϲ͕ϮϮϲϱϱϳϴ͘ϵй ϰͲϰϬϳϱKWZd/E'DdZ/>^WZd^ͲͲ ϭϮ͕ϮϱϯϭϮ͕ϬϬϬ ϱϱϰ;ϭϭ͕ϲϵϵͿ;Ϯ͕ϭϭϭ͘ϳйͿϰͲϰϬϳϲKWZd/E'DdZ/>^WKK>ͲͲ ϰϭ͕ϰϳϴϯϭ͕ϬϬϬ ϰϵ͕ϵϬϵϴ͕ϰϯϭϭϲ͘ϵйϰͲϰϬϳϳKWZd/E'DdZ/>^Zz>/E'ͲͲ ϲ͕ϱϵϳϭϯ͕ϭϬϬ ϭ͕ϰϯϴ;ϱ͕ϭϱϵͿ;ϯϱϴ͘ϴйͿϰͲϰϬϳϴKWZd/E'DdZ/>^^/'E^ͲͲ ϳ͕ϳϬϲϵ͕ϵϬϬ ϳ͕ϭϴϳ;ϱϭϵͿ;ϳ͘ϮйͿ ϰͲϰϬϳϵKWZd/E'DdZ/>^d>KDDhE/d/KE^ͲͲϳϬϮϲ͕ϵϬϬͲ;ϳϬϮͿͲ ϰͲϰϬϴϬKWZd/E'DdZ/>^h/Kͬs/KͲͲ ϴ͕ϱϯϴϭϬ͕ϵϬϬ ϴ͕ϲϰϭϭϬϯϭ͘Ϯй ϰͲϰϬϴϭKWZd/E'DdZ/>^>dZ/>^>hWW>zͲͲ ϭϰ͕ϴϴϭϭϱ͕ϳϱϬ ϴ͕ϴϳϲ;ϲ͕ϬϬϱͿ;ϲϳ͘ϳйͿϰͲϰϬϴϮKWZd/E'DdZ/>^>K<^͕KKZ^Θt/EKt^ͲͲ ϯ͕ϲϮϮϳ͕ϱϬϬ ϲ͕ϱϯϴϮ͕ϵϭϲϰϰ͘ϲйϰͲϰϬϴϯKWZd/E'DdZ/>^W/Ed/E'^hWW>/^ͲͲ ϲ͕ϵϮϳϭϮ͕ϰϬϬ ϭϬ͕ϭϳϵϯ͕ϮϱϮϯϭ͘ϵйϰͲϰϬϴϰKWZd/E'DdZ/>^W^dKEdZK>ͲͲ ϭ͕ϭϳϬϯ͕ϴϱϬ ϯ͕ϯϯϯϮ͕ϭϲϯϲϰ͘ϵйϰͲϰϬϴϱKWZd/E'DdZ/>^:E/dKZ/>^hWW>zͲͲ ϲϳ͕ϳϱϭϱϳ͕ϰϱϬ ϲϴ͕ϰϰϴϲϵϳϭ͘Ϭй ϰͲϱϬϮϭDK/>W>E,Z'^ͲͲ Ϯϳ͕ϮϲϮϯϬ͕ϯϭϰ Ϯϱ͕ϱϬϮ;ϭ͕ϳϲϬͿ;ϲ͘ϵйͿ ϰͲϱϬϮϲKhZ^^Θ^D/EZ^ϳ͕ϯϱϴ ϭϬ͕Ϯϲϭ ϭϮ͕ϰϴϴϭϰ͕ϬϭϮ ϭϯ͕ϴϭϵϭ͕ϯϯϭ ϵ͘ϲй ϰͲϱϬϮϳDEdKZzKhZ^^Θ^D/EZ^ϳ͕ϭϲϬ ϴ͕ϬϴϮ ϭϭ͕ϱϲϲϭϱ͕ϲϬϬ ϭϱ͕ϱϳϳϰ͕ϬϭϭϮϱ͘ϳйϰͲϱϬϮϴDDZ^,/W^ϳ͕ϮϮϳ ϲ͕ϱϯϭ ϳ͕Ϭϲϭϵ͕ϱϬϬ ϴ͕ϱϱϮϭ͕ϰϵϭϭϳ͘ϰйϰͲϱϬϮϵD/>'ϳ͕ϯϳϯ ϳ͕ϵϳϳ ϳ͕ϰϴϮϭϭ͕Ϭϳϱ ϴ͕ϯϯϮϴϱϬϭϬ͘ϮйϰͲϱϬϯϯYh/WDEdZW/Z^ϭϬ͕ϱϴϬ ϭϭ͕ϯϵϴ ϵ͕ϴϵϭϭϳ͕ϳϬϬ ϵ͕ϰϳϭ;ϰϮϬͿ ;ϰ͘ϰйͿ ϰͲϱϬϯϰYh/WDEdZEd>^ϯϲ͕ϲϲϱ ϰϭ͕ϲϯϯ ϰϴ͕Ϯϲϲϱϱ͕ϱϬϱ ϱϰ͕ϱϰϰϲ͕Ϯϳϴϭϭ͘ϱйϰͲϱϬϯϱYh/WDEd^Zs/KEdZd^ϴϵ͕ϱϯϮ ϵϰ͕ϬϭϰͲͲͲͲͲϰͲϱϬϯϲKDWZ^^KZZW/Z^ϰϱ͕ϱϱϴ ϭϮϯ͕ϬϭϲͲͲͲͲͲϰͲϱϬϯϳWZKWZdz/DWZKsDEdͲϭϯϵͲͲͲͲͲϰͲϱϬϯϴh/>/E'ZW/ZΘD/EdEEϯϵϱ͕ϭϵϱ ϰϴϬ͕ϳϳϯ ϯϱϲͲͲ;ϯϱϲͿ Ͳ ϰͲϱϬϰϯKE^h>d/E'ϰ͕ϲϱϳ ϱ͕ϲϲϲ ϱ͕ϬϯϮϴ͕ϬϬϬ ϱ͕ϱϬϬϰϲϴ ϴ͘ϱй ϰͲϱϬϰϱW,KdKKW/Z,Z'^Ϯϲ͕ϵϱϯ ϯϯ͕ϴϬϲ ϯϰ͕ϮϲϲϮϵ͕ϬϬϬ ϯϵ͕ϯϴϯϱ͕ϭϭϳϭϯ͘ϬйϰͲϱϬϰϲWZ/Ed/E'Ϯ͕ϳϬϲ ϱ͕ϯϳϳ ϲ͕ϯϯϳϭϭ͕ϬϬϬ ϳ͕Ϯϵϯϵϱϲϭϯ͘ϭйϰͲϱϬϰϵWK>/^Z,^ϮϯϬ ϭϴϬͲϱϬϬͲͲͲϰͲϱϬϱϵKEdZd^ϭ͕ϵϯϱ͕Ϭϯϵ ϭ͕ϱϴϭ͕ϴϭϮ ϵϴϮ͕ϳϬϵϭ͕ϯϮϵ͕ϴϱϬ ϭ͕ϮϴϬ͕ϲϲϴϮϵϳ͕ϵϱϵ Ϯϯ͘ϯй^ŽŵĞŶĞǁƉƌŽŐƌĂŵƐǁĞƌĞƌƵŶďǇĐŽŶƚƌĂĐƚĞĚƐĞƌǀŝĐĞƉƌŽǀŝĚĞƌƐ͕ƌĞƐƵůƚŝŶŐŝŶƚŚĞƐĞĞǆƚƌĂĐŽƐƚƐ͘ƵĚŐĞƚƐǁĞƌĞĂĚĚĞĚĨŽƌƚŚĞƌŵŽƵƌǇĂŶĚ>ŝďƌĂƌǇ^ƋƵĂƌĞŝŶϮϬϭϵ͘ϰͲϱϬϲϬK^dZKsZz;ϳ͕ϳϮϱͿ ;ϲ͕ϬϬϰͿ ;Ϯϰ͕ϱϭϴͿ;ϱϰ͕ϬϬϬͿ ;ϱϴ͕ϱϮϱͿ;ϯϰ͕ϬϬϳͿ ;ϱϴ͘ϭйͿŽƐƚƌĞĐŽǀĞƌǇĨŽƌ^ĐĂŶůŽŶƵŝůĚŝŶŐŵŽǀĞĚƚŽŽƌƉŽƌĂƚĞĐĐŽƵŶƚƐŝŶϮϬϭϴ͘dŚĞϮϬϭϵĂŵŽƵŶƚŝƐĨŽƌdĞŶŶŝƐŽŵĞ,ǇĚƌŽZĞĐŽǀĞƌǇ͘ϰͲϱϬϲϯt^d/^WK^>&ϯϯ͕ϴϱϬ ϯϯ͕ϴϱϬ ϯϯ͕ϴϱϬϯϰ͕ϱϬϬ ϰϳ͕ϴϰϳϭϯ͕ϵϵϳϮϵ͘ϯйϰͲϱϬϲϱZEd>^ϭϬ͕ϱϯϯ ϭϬ͕Ϭϵϴ ϵ͕ϴϮϵϭϮ͕ϬϬϬ ϭϯ͕ϴϱϭϰ͕ϬϮϮϮϵ͘ϬйϰͲϱϬϲϲKEdZd^ͲKhd/E'^ϰϴ͕ϬϱϮ ϲϰ͕ϭϳϰ ϲϯ͕ϯϵϳϱϱ͕ϬϬϬ ϲϭ͕ϰϱϳ;ϭ͕ϵϰϬͿ ;ϯ͘ϮйͿ ϰͲϱϬϳϲWZ/Ed/E'ͲsZd/^/E'ϰϱ͕ϭϭϰ ϰϮ͕ϲϴϯ ϰϰ͕ϰϳϳϱϮ͕ϱϬϬ ϰϵ͕ϴϮϰϱ͕ϯϰϳϭϬ͘ϳйϰͲϱϬϴϬ'hZdDKDWd/d/KEͲϯϲϴͲϱϬϬ ϮϯϲϮϯϲϭϬϬ͘ϬйϰͲϱϬϴϭ^E/KZ^'D^ϴϴϴͲͲͲͲͲͲϰͲϱϮϬϮYh/W^ZsKEdZd^ZEͲͲͲϲ͕ϬϬϬ ϰ͕ϱϬϬϰ͕ϱϬϬϭϬϬ͘ϬйϰͲϱϮϬϯYh/W^ZsKEdZd^dZ/E'Yh/WͲͲͲϴ͕ϭϬϬ ϱ͕ϬϬϬϱ͕ϬϬϬϭϬϬ͘ϬйϰͲϱϮϬϰYh/W^ZsKEdZd^,tZΘdKK>^ͲͲͲϭ͕ϮϬϬ ϴϬϬϴϬϬϭϬϬ͘ϬйFinance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 1 Page 2 of 10 ϮϬϭϲ ϮϬϭϳ ϮϬϭϴϮϬϭϵ ϮϬϭϵϮϬϭϵ&ĐƐƚǀƐ ϮϬϭϵ&ĐƐƚǀƐ&ƵůůzĞĂƌ &ƵůůzĞĂƌ &ƵůůzĞĂƌƉƉƌŽǀĞĚ &ŽƌĞĐĂƐƚϮϬϭϴĐƚƵĂů ϮϬϭϴĐƚƵĂůsĂƌŝĂŶĐĞǆƉůĂŶĂƚŝŽŶĐƚƵĂůƐ ĐƚƵĂůƐ ĐƚƵĂůƐƵĚŐĞƚ ƚŽzĞĂƌͲĞŶĚ/ŶĐƌĞĂƐĞͬ;ĞĐƌĞĂƐĞͿ /ŶĐƌĞĂƐĞͬ;ĞĐƌĞĂƐĞͿϰͲϱϮϬϱYh/W^ZsKEdZd^WKK>ͲͲ ϭ͕Ϯϯϴϴ͕ϬϬϬ ϱ͕ϬϬϬϯ͕ϳϲϮϳϱ͘ϮйϰͲϱϮϬϲYh/W^ZsKEdZd^Zz>/E'dh^ͲͲͲϱ͕ϱϬϬ Ϯ͕ϳϱϬϮ͕ϳϱϬϭϬϬ͘ϬйϰͲϱϮϬϳYh/W^ZsKEdZd^d>KDDhE/d/KE^ͲͲ ϯϬ͕ϱϵϵϯϯ͕ϬϬϬ Ϯϱ͕ϴϵϱ;ϰ͕ϳϬϰͿ;ϭϴ͘ϮйͿϰͲϱϮϬϴYh/W^ZsKEdZ^h/Kͬs/KͲͲϯϬϱϵ͕ϱϬϬ ϳ͕ϮϱϬϲ͕ϵϰϱϵϱ͘ϴйϰͲϱϮϬϵYh/W^ZsKEdZd^>dZ/>ͲͲ ϵ͕ϵϳϴϯϬ͕ϲϬϬ ϭϳ͕ϵϴϭϴ͕ϬϬϯϰϰ͘ϱйϰͲϱϮϭϬYh/W^ZsKEdZd^>E/E'Kd,ZͲͲ ϰ͕ϬϵϰϭϬ͕ϬϬϬ ϱ͕ϯϮϱϭ͕ϮϯϭϮϯ͘ϭйϰͲϱϮϭϭYh/W^ZsKEdZd^^hZ/dzͲͲͲϭϯ͕ϳϭϭ ϳ͕ϳϱϬϳ͕ϳϱϬϭϬϬ͘ϬйϰͲϱϯϬϬKDWZ^^KZZW/Z^KEdZdͲͲ ϮϮ͕ϲϵϴϯϮ͕ϴϱϬ ϴϱ͕ϵϭϯϲϯ͕Ϯϭϱϳϯ͘ϲй/ŶĐƌĞĂƐĞĚƌĞƉĂŝƌƐ͕ďƵƚŽĨĨƐĞƚďǇƐĂǀŝŶŐƐŝŶƚŚĞďƵĚŐĞƚůŝŶĞďĞůŽǁ͘ϰͲϱϯϬϭKDWZ^^KZZWZ/^ZΘDͲͲ ϱϰ͕ϯϳϬϱϬ͕ϭϱϬ ϳ͕ϳϰϱ;ϰϲ͕ϲϮϱͿ;ϲϬϮ͘ϬйͿ^ĂǀŝŶŐƐŝŶƚŚŝƐůŝŶĞĨŽƌŽǀĞƌĂŐĞŝŶƚŚĞůŝŶĞĂďŽǀĞ͘ϰͲϱϰϬϬ>'ZΘDͲͲ ϯϯ͕ϯϳϲϭϳ͕ϵϬϬ ϱ͕ϳϳϵ;Ϯϳ͕ϱϵϳͿ;ϰϳϳ͘ϱйͿ>ĞƐƐƚŚĂŶĂŶƚŝĐŝƉĂƚĞĚƌĞƉĂŝƌƐĂŶĚĞǆƉĞŶƐĞƐŝŶϮϬϭϵ͘ϰͲϱϰϬϭZΘDZEͲͲ ϱϱ͕ϬϬϯϯϴ͕ϱϬϬ ϯϴ͕ϵϳϮ;ϭϲ͕ϬϯϭͿ;ϰϭ͘ϭйͿϰͲϱϰϬϮZΘDWKK>ͲͲ ϭϭ͕ϯϵϯϮϲ͕ϱϬϬ Ϯϰ͕ϰϱϮϭϯ͕Ϭϱϵϱϯ͘ϰйϰͲϱϰϬϯZΘD'EZdKZͲͲ ϭϭ͕ϯϰϯϭϱ͕ϱϬϬ ϭϵ͕ϭϮϵϳ͕ϳϴϲϰϬ͘ϳйϰͲϱϰϬϰZΘD>/&^&dzͲͲ ϭϲ͕ϲϬϳϭϭ͕ϳϬϬ ϭϮ͕ϭϵϱ;ϰ͕ϰϭϮͿ;ϯϲ͘ϮйͿϰͲϱϰϬϱZΘD>K<^͕KKZ^Θt/EKt^ͲͲ ϲϱ͕ϳϭϵϰϯ͕ϵϱϬ ϳϯ͕ϮϮϱϳ͕ϱϬϲϭϬ͘ϯйϰͲϱϰϬϲZΘDW/Ed/E'ͬKEdZdKZͲͲ ϵ͕ϴϲϭϭϲ͕ϱϬϬ ϵ͕ϵϲϯϭϬϮϭ͘Ϭй ϰͲϱϰϬϳZΘDW>hD/E'ͲͲ ϴϰ͕Ϭϭϴϱϴ͕ϳϬϬ ϱϱ͕ϲϰϭ;Ϯϴ͕ϯϳϳͿ;ϱϭ͘ϬйͿϮϬϭϴŚĂĚŚŝŐŚĞƌĞǆƉĞŶƐĞƐƚŚĂŶϮϬϭϵďƵĚŐĞƚƚŽĂĐƚƵĂůƐ͘ϰͲϱϰϬϴZΘDZKK&/E'ͲͲ ϭϬ͕ϯϱϬϮϱ͕ϱϬϬ Ϯϲ͕ϲϮϴϭϲ͕Ϯϳϴϲϭ͘ϭйϰͲϱϰϬϵZΘDDKE/dKZ/E'ͲͲϲϴϴ͕ϳϬϬ ϯϮϮϮϱϰϳϴ͘ϵйϰͲϱϰϭϬZΘD>dZ/>ͲͲ ϳϯ͕ϲϮϭϲϯ͕ϮϬϬ ϵϭ͕ϰϰϭϭϳ͕ϴϮϬϭϵ͘ϱйϰͲϱϰϭϭZΘD>sdKZͲͲ ;ϳ͕ϳϵϯͿϯ͕ϱϬϬ ϭ͕ϬϬϬϴ͕ϳϵϯϴϳϵ͘ϯйϰͲϱϰϭϮZΘD,sͲͲ ϭ͕Ϭϵϴϳϴ͕ϮϬϬ ϳϲ͕ϰϰϯϳϱ͕ϯϰϱϵϴ͘ϲйϮϬϭϴŚĂĚůŽǁĞƌĞǆƉĞŶƐĞƐƚŚĂŶϮϬϭϵ͘ϮϬϭϵƵĚŐĞƚƚŽĐƚƵĂůƐĂƌĞŽŶƚƌĂĐŬ͘ϰͲϱϰϭϯZΘD,s^ͲͲ ϰϭ͕ϯϬϭϰϳ͕ϬϬϬ ϰϳ͕ϴϵϭϲ͕ϱϵϬϭϯ͘ϴйϰͲϱϰϭϰZΘD,stdZdZdDEdͲͲϳϰϴ͕ϱϬϬ ϰ͕ϮϱϬϰ͕ϭϳϲϵϴ͘ϯйϰͲϱϰϭϱZΘD^hZ/dzͲͲ ϭϯ͕ϵϬϲϭϭ͕ϴϬϬ ϮϮ͕Ϭϭϲϴ͕ϭϭϬϯϲ͘ϴйϰͲϱϱϬϭKEdZd^'EZdKZͲͲͲϲ͕ϮϬϬ ϯ͕ϬϬϬϯ͕ϬϬϬϭϬϬ͘ϬйϰͲϱϱϬϮKEdZd^>/&^&dzͲͲ ϯϵ͕ϮϮϳϯϱ͕ϳϳϬ ϲϳ͕ϰϳϴϮϴ͕Ϯϱϭϰϭ͘ϵйKǀĞƌĂŐĞŝŶƚŚŝƐůŝŶĞŝƐŽĨĨƐĞƚďǇƵŶƐƉĞŶƚĨƵŶĚƐŝŶϰͲϱϱϬϰĚƵĞƚŽŝŶĐŽƌƌĞĐƚ'>ĐŽĚŝŶŐ͘ϰͲϱϱϬϯKEdZd^W^dKEdZK>ͲͲ ϭ͕ϰϱϮϱ͕ϬϬϬ ϲϯϱ;ϴϭϳͿ;ϭϮϴ͘ϳйͿϰͲϱϱϬϰKEdZd^DKE/dKZ/E'ͲϮϰϰ ϯϰ͕ϱϰϮϯϰ͕ϬϲϬ ϭϯ͕ϵϳϱ;ϮϬ͕ϱϲϳͿ;ϭϰϳ͘ϮйͿ^ĞĞϰͲϱϱϬϮĂďŽǀĞ͘ϰͲϱϱϬϱKEdZd^>E/E'ͲͲ ϰϯϯ͕ϯϴϰϰϳϰ͕ϮϬϬ ϰϵϬ͕ϲϰϴϱϳ͕Ϯϲϰϭϭ͘ϳйĚĚŝƚŝŽŶĂůĐůĞĂŶŝŶŐĂƚƚŚĞƌŵŽƵƌǇĂŶĚϯƌĚ&ůŽŽƌ:K͘ϰͲϱϱϬϲKEdZd^>sdKZͲͲ ϱϭ͕ϱϭϭϯϲ͕ϬϬϬ Ϯϳ͕ϰϴϱ;Ϯϰ͕ϬϮϲͿ;ϴϳ͘ϰйͿϮϬϭϴŚĂĚŚŝŐŚĞƌĞǆƉĞŶƐĞƐƚŚĂŶϮϬϭϵďƵĚŐĞƚƚŽĂĐƚƵĂůƐ͘ϰͲϱϱϬϳKEdZd^,sWZsDdͲͲ Ϯϭϱ͕ϵϭϭϭϯϵ͕ϮϱϬ Ϯϲϳ͕ϱϵϬϱϭ͕ϲϳϵϭϵ͘ϯйϮϬϭϵŚĂĚŚŝŐŚĞƌĞǆƉĞŶƐĞƐƚŚĂŶϮϬϭϴĚƵĞƚŽƵŶĞǆƉĞĐƚĞĚŚĞĂƚĞǆĐŚĂŶŐĞƌĂŶĚďŽŝůĞƌƌĞƉĂŝƌƐ͘ϰͲϱϱϬϴKEdZd^,s^ͲͲͲͲͲͲͲϰͲϱϱϬϵKEdZd^tdZdZdDEdͲͲ Ϯϱ͕Ϭϱϭϭϴ͕ϭϬϬ ϭϱ͕ϳϰϳ;ϵ͕ϯϬϰͿ;ϱϵ͘ϭйͿϰͲϲϬϬϭE<,Z'^Ϯϰ͕ϴϱϮ Ϯ͕ϮϰϬ Ϯ͕ϮϱϮϮ͕ϱϬϬ Ϯ͕ϳϯϭϰϳϵϭϳ͘ϱйϰͲϲϬϬϮd/sEd,Z'^E&^Ͳ ϵϭ͕ϳϲϬ ϭϬϯ͕ϳϲϴϭϬϮ͕ϱϮϱ ϭϬϯ͕ϲϰϵ;ϭϭϵͿ ;Ϭ͘ϭйͿ ϰͲϲϬϬϯd/sEdZKKD,Z'^E&^Ͳ ϭϯ͕ϳϴϰ ϵ͕ϴϲϴϭϬ͕ϬϬϬ ϵ͕ϴϭϬ;ϱϴͿ ;Ϭ͘ϲйͿ ϰͲϳϬϬϬKDDhE/dz'ZEd^ϭϳ͕ϯϭϵ ϭϱ͕ϳϵϭ ϭϬ͕Ϭϱϰϭϲ͕ϬϬϬ ϭϰ͕ϭϳϮϰ͕ϭϭϴϮϵ͘ϭйϰͲϳϬϬϭ,/^dKZ/>^K/dz'ZEdϳϬ͕ϱϬϬ ϳϮ͕ϲϬϬ ϳϰ͕ϰϬϬϳϳ͕ϵϬϬ ϳϳ͕ϵϬϬϯ͕ϱϬϬ ϰ͘ϱй ϰͲϴϬϬϮKEdZ/hd/KE^dKW/d>ϰϯ͕ϴϲϮͲͲͲͲͲͲϰͲϴϬϬϯKEdZ/hd/KE^dK/^Zd/KEZzZ^Zs^ϱϲ͕Ϯϰϱ ϭϮϳ͕ϱϵϮ ϲϭ͕ϳϲϱϭϬϲ͕ϭϳϬ ϭϬϳ͕ϯϲϰϰϱ͕ϱϵϵ ϰϮ͘ϱйŽƌƌĞƐƉŽŶĚƐǁŝƚŚŝŶĐƌĞĂƐĞĚƐƉŽŶƐŽƌƐŚŝƉƌĞǀĞŶƵĞ͘dKd>Kd,ZyWE^^ ϱ͕ϱϭϳ͕ϲϯϲ ϱ͕ϱϵϮ͕ϱϯϯ ϱ͕ϱϯϭ͕ϴϯϱ ϲ͕ϰϮϱ͕Ϭϱϳ ϲ͕Ϯϳϱ͕ϲϴϵϳϰϯ͕ϴϱϰ ϭϭ͘ϵйdKd>yWE^^ ϭϮ͕ϰϰϮ͕Ϯϲϱ ϭϮ͕ϳϱϰ͕ϰϬϱ ϭϯ͕ϯϲϲ͕ϭϱϴ ϭϰ͕ϲϱϰ͕Ϭϱϲ ϭϰ͕ϰϬϯ͕ϲϱϵϭ͕Ϭϯϳ͕ϱϬϭϳ͘Ϯй Edh'dϳ͕Ϭϲϳ͕ϯϲϵ ϳ͕ϱϱϯ͕Ϭϳϵ ϳ͕ϵϮϴ͕Ϯϵϵ ϵ͕ϰϮϵ͕ϲϰϵ ϴ͕ϳϱϵ͕ϯϱϰϴϯϭ͕Ϭϱϱϵ͘ϱй Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 1 Page 3 of 10 ϮϬϭϲ ϮϬϭϳ ϮϬϭϴϮϬϭϵ ϮϬϭϵϮϬϭϵ&ĐƐƚǀƐ ϮϬϭϵ&ĐƐƚǀƐ&ƵůůzĞĂƌ &ƵůůzĞĂƌ &ƵůůzĞĂƌƉƉƌŽǀĞĚ &ŽƌĞĐĂƐƚϮϬϭϴĐƚƵĂů ϮϬϭϴĐƚƵĂů sĂƌŝĂŶĐĞǆƉůĂŶĂƚŝŽŶĐƚƵĂůƐ ĐƚƵĂůƐ ĐƚƵĂůƐƵĚŐĞƚ ƚŽzĞĂƌͲĞŶĚ/ŶĐƌĞĂƐĞͬ;ĞĐƌĞĂƐĞͿ /ŶĐƌĞĂƐĞͬ;ĞĐƌĞĂƐĞͿZsEh͗dŽƚĂůZĞǀĞŶƵĞͲͲͲͲͲ Ͳ η/sͬϬ͊yWE^͗ϰͲϮϬϬϬ^>Z/^Ͳ&ͬdϮϬϯ͕ϵϬϵ Ϯϭϯ͕ϰϯϴ ϭϵϲ͕ϭϰϬϮϯϯ͕ϴϵϮ ϮϯϮ͕ϯϯϲϯϲ͕ϭϵϲ ϭϱ͘ϲйŝƌĞĐƚŽƌǀĂĐĂŶĐǇ:ĂŶͲDĂƌϮϬϭϴ͘WŽƐŝƚŝŽŶϭϬϬйĨŝůůĞĚĨŽƌϮϬϭϵ͘ϰͲϮϬϵϬzZEZh>^ϭ͕ϲϵϮ ϯ͕ϰϬϯ ;ϲ͕ϱϵϭͿͲ ;ϰ͕ϲϵϳͿϭ͕ϴϵϰϰϬ͘ϯйϰͲϮϭϬϬE&/d^ͲKDZ^Ϯϳ͕ϴϮϮ Ϯϱ͕ϳϰϯ ϮϮ͕ϬϵϵϮϳ͕ϳϲϮ Ϯϳ͕ϮϮϲϱ͕ϭϮϳϭϴ͘ϴйϰͲϮϭϬϭE&/d^Ͳ,dϰ͕ϱϭϴ ϰ͕ϭϴϯ ϯ͕ϴϴϱϰ͕ϱϲϭ ϰ͕ϰϵϭϲϬϲϭϯ͘ϱйϰͲϮϭϬϮE&/d^Ͳt^/ϭ͕Ϭϵϲ ϭ͕Ϭϯϯ ϭ͕ϮϳϮϭ͕ϳϱϰ ϭ͕ϮϬϯ;ϲϵͿ ;ϱ͘ϳйͿ ϰͲϮϭϬϯE&/d^ͲWWϰ͕ϳϬϯ ϰ͕ϲϭϱ ϱ͕ϯϮϴϱ͕Ϯϵϴ ϱ͕ϰϴϱϭϱϳ Ϯ͘ϵй ϰͲϮϭϬϰE&/d^Ͳ/Ϯ͕ϰϲϲ Ϯ͕ϭϬϳ Ϯ͕ϰϬϯϮ͕ϰϱϮ Ϯ͕ϰϬϵϲϬ͘ϮйϰͲϮϭϬϱE&/d^ͲEd>ϯ͕ϱϰϰ ϯ͕ϮϵϬ ϯ͕Ϭϯϵϯ͕ϰϳϮ ϯ͕ϰϮϴϯϴϵϭϭ͘ϯйϰͲϮϭϬϲE&/d^Ͳ,>d,ϲ͕ϬϰϬ ϱ͕ϲϮϱ ϱ͕Ϯϭϯϲ͕ϬϴϬ ϱ͕ϴϴϯϲϳϬϭϭ͘ϰйϰͲϮϭϬϳE&/d^Ͳ>dͬϯ͕ϬϵϬ Ϯ͕ϴϭϯ ϯ͕ϭϰϳϱ͕ϯϬϴ ϰ͕ϬϰϲϴϵϵϮϮ͘ϮйϰͲϮϭϬϴE&/d^ͲKd,Zϭ͕Ϭϳϯϵϲϰϵϭϰϭ͕ϮϭϮ ϭ͕ϬϱϰϭϰϬϭϯ͘ϯйϰͲϮϮϬϭ^>Zz^s/E'^ͲͲͲ;ϰϳ͕ϭϯϱͿ ͲͲͲdKd>^>Z/^ΘE&/d^ Ϯϱϵ͕ϵϱϯ Ϯϲϳ͕Ϯϭϰ Ϯϯϲ͕ϴϰϵ Ϯϰϰ͕ϲϱϲ ϮϴϮ͕ϴϲϰϰϲ͕Ϭϭϱ ϭϲ͘ϯйϰͲϯϬϬϬWhZ,^Z>Z/E'ϯϴϳ ϭ͕ϮϰϳϮϳϳͲ ;ϮϬϰͿ;ϰϴϭͿ;Ϯϯϱ͘ϴйͿϰͲϰϬϬϬK&&/^hWW>/^ϭ͕ϭϭϯ ϭ͕ϱϱϯ ϭ͕ϳϯϮϭ͕ϱϬϬ ϭ͕ϵϬϯϭϳϭ ϵ͘Ϭй ϰͲϰϬϬϲK&&/Yh/WDEdͲͲϳϯϵϭ͕ϱϬϬ ϭ͕ϯϯϵϲϬϬϰϰ͘ϴйϰͲϰϬϰϱDhE//W>h^/E^^ϳϰϭ Ϯ͕ϲϯϭ ϭ͕Ϭϳϰϭ͕ϬϬϬ ϭ͕ϲϳϵϲϬϱϯϲ͘ϬйϰͲϱϬϮϭDK/>W>E,Z'^ͲͲϰϵϱϱϱϭϳϮϵϮϯϰϯϮ͘ϭйϰͲϱϬϮϲKhZ^^Θ^D/EZ^ϱϮϯ Ϯ͕ϳϵϵϲϳϱϯ͕ϮϬϬ ϯ͕ϬϲϴϮ͕ϯϵϯϳϴ͘ϬйϰͲϱϬϮϴDDZ^,/W^ϭ͕ϳϮϵ ϭ͕ϳϴϬ ϭ͕ϳϴϬϯ͕ϮϬϬ Ϯ͕ϬϯϵϮϱϵϭϮ͘ϳйϰͲϱϬϮϵD/>'ϭϯϰϭϲͲϱϬϬϮϱϬϮϱϬϭϬϬ͘ϬйϰͲϱϬϰϯKE^h>d/E'ͲͲ Ϯ͕ϰϭϳϮ͕ϱϬϬͲ;Ϯ͕ϰϭϳͿͲ ϰͲϱϬϰϱW,KdKKW/Z,Z'^Ϯϲ͕ϵϱϯ ϯϯ͕ϴϬϲ ϯϰ͕ϮϲϲϮϵ͕ϬϬϬ ϯϵ͕ϯϴϯϱ͕ϭϭϳϭϯ͘ϬйϰͲϱϬϱϵKEdZd^ͲͲͲϭ͕ϱϬϬ ͲͲͲdKd>Kd,ZyWE^^ ϯϭ͕ϱϴϬ ϰϯ͕ϴϯϮ ϰϯ͕ϰϱϱ ϰϰ͕ϰϱϭ ϱϬ͕ϭϴϲ ϲ͕ϳϯϭϭϯ͘ϰйdKd>yWE^^ Ϯϵϭ͕ϱϯϯ ϯϭϭ͕Ϭϰϲ ϮϴϬ͕ϯϬϰ Ϯϴϵ͕ϭϬϳ ϯϯϯ͕ϬϱϬϱϮ͕ϳϰϲ ϭϱ͘ϴйEdh'd Ϯϵϭ͕ϱϯϯ ϯϭϭ͕Ϭϰϲ ϮϴϬ͕ϯϬϰ Ϯϴϵ͕ϭϬϳ ϯϯϯ͕ϬϱϬϱϮ͕ϳϰϲ ϭϱ͘ϴйFinance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 1 Page 4 of 10 ϮϬϭϲ ϮϬϭϳ ϮϬϭϴϮϬϭϵ ϮϬϭϵϮϬϭϵ&ĐƐƚǀƐ ϮϬϭϵ&ĐƐƚǀƐ&ƵůůzĞĂƌ &ƵůůzĞĂƌ &ƵůůzĞĂƌƉƉƌŽǀĞĚ &ŽƌĞĐĂƐƚϮϬϭϴĐƚƵĂů ϮϬϭϴĐƚƵĂů sĂƌŝĂŶĐĞǆƉůĂŶĂƚŝŽŶĐƚƵĂůƐ ĐƚƵĂůƐ ĐƚƵĂůƐƵĚŐĞƚ ƚŽzĞĂƌͲĞŶĚ/ŶĐƌĞĂƐĞͬ;ĞĐƌĞĂƐĞͿ /ŶĐƌĞĂƐĞͬ;ĞĐƌĞĂƐĞͿZsEh͗ϯͲϭϮϬϭKd,Z;ϭϯͿ ;Ϯ͕ϯϭϬͿ ;ϭϴϬͿͲ ;ϴϬͿ;ϭϬϬͿ;ϭϮϱ͘ϬйͿϯͲϭϮϬϰ^WKE^KZ^,/W;ϮϱϬͿͲͲͲͲͲͲϯͲϭϮϬϱ^>^ͲͲ ;Ϯ͕ϮϯϲͿͲͲ;Ϯ͕ϮϯϲͿͲ ϯͲϭϮϬϲKEd/KE^Ͳ ;ϱ͕ϭϬϬͿͲͲͲͲͲϯͲϭϴϬϬ&Z>'ZEd^;ϰ͕ϬϬϬͿ ;ϲ͕ϬϬϬͿ ;Ϯϯ͕ϲϲϬͿͲͲ;Ϯϯ͕ϲϲϬͿͲϯͲϭϵϬϭKEdZ/hd/KE&ZKD/^Zd/KEZzZ^Zs^;Ϯ͕ϬϬϬͿͲͲ;ϯ͕ϱϬϬͿ ;Ϯ͕ϬϬϬͿϮ͕ϬϬϬϭϬϬ͘ϬйϯͲϭϵϳϭZd^Θh>dhZ>KEdZ/hd/KE;ϱ͕ϬϬϬͿ ;ϱ͕ϬϬϬͿ ;ϱ͕ϬϬϬͿ;ϱ͕ϬϬϬͿ ;ϱ͕ϬϬϬͿͲͲdŽƚĂůZĞǀĞŶƵĞ ;ϭϭ͕ϮϲϯͿ ;ϭϴ͕ϰϭϬͿ ;ϯϭ͕ϬϳϲͿ ;ϴ͕ϱϬϬͿ ;ϳ͕ϬϴϬͿ;Ϯϯ͕ϵϵϲͿ ;ϯϯϴ͘ϵйͿyWE^͗ϰͲϮϬϬϬ^>Z/^Ͳ&ͬdϴϴ͕ϵϲϵ ϭϯϵ͕ϵϳϬ ϭϳϬ͕ϭϰϯϭϳϳ͕ϰϬϵ ϭϳϲ͕ϲϵϮϲ͕ϱϰϵ ϯ͘ϳй ϰͲϮϬϬϮ^>Z/^ͲWͬdϳ͕ϮϬϯ ϭϬ͕ϵϵϮ ϭϰ͕ϲϬϲϯϭ͕Ϭϱϴ ϮϮ͕ϱϱϵϳ͕ϵϱϯϯϱ͘ϯйϰͲϮϬϵϬzZEZh>^ϰϭϱ ϭ͕ϰϱϲϳϳϲͲ ;ϯ͕ϵϲϰͿ;ϰ͕ϳϰϬͿ;ϭϭϵ͘ϲйͿϰͲϮϭϬϬE&/d^ͲKDZ^ϭϭ͕ϬϬϲ ϭϱ͕ϭϴϯ ϭϴ͕ϳϭϵϭϵ͕ϱϭϲ ϭϵ͕ϰϵϭϳϳϮϰ͘Ϭй ϰͲϮϭϬϭE&/d^Ͳ,dϭ͕ϴϴϰ Ϯ͕ϵϱϲ ϯ͕ϲϮϯϯ͕ϲϱϮ ϯ͕ϴϭϯϭϵϬ ϱ͘Ϭй ϰͲϮϭϬϮE&/d^Ͳt^/ϲϲϬ ϭ͕ϭϭϱ ϭ͕ϯϭϳϭ͕ϰϬϰ ϭ͕ϰϲϳϭϱϬϭϬ͘ϮйϰͲϮϭϬϯE&/d^ͲWWϮ͕ϱϰϰ ϱ͕ϯϬϯ ϱ͕ϴϬϵϱ͕ϲϳϳ ϲ͕ϯϮϴϱϭϵ ϴ͘Ϯй ϰͲϮϭϬϰE&/d^Ͳ/ϭ͕ϯϯϳ Ϯ͕ϱϯϴ Ϯ͕ϳϰϱϮ͕ϳϭϭ Ϯ͕ϴϮϰϳϵϮ͘ϴй ϰͲϮϭϬϱE&/d^ͲEd>ϭ͕ϲϲϵ ϭ͕ϴϮϴ ϯ͕ϯϮϴϯ͕ϰϳϮ ϯ͕ϰϮϴϭϬϬ Ϯ͘ϵй ϰͲϮϭϬϲE&/d^Ͳ,>d,ϯ͕ϬϴϮ ϱ͕ϮϬϴ ϱ͕ϵϳϰϲ͕ϬϴϬ ϱ͕ϴϴϯ;ϵϭͿ ;ϭ͘ϱйͿ ϰͲϮϭϬϳE&/d^Ͳ>dͬϭ͕ϲϴϱ Ϯ͕ϱϰϰ ϯ͕ϳϳϴϰ͕ϬϮϲ ϯ͕ϵϯϲϭϱϴ ϰ͘Ϭй ϰͲϮϭϬϴE&/d^ͲKd,ZϰϮϯϲϯϵϴϱϭϵϮϬϴϭϯ;ϯϴͿ;ϰ͘ϳйͿ dKd>^>Z/^ΘE&/d^ϭϮϬ͕ϴϳϳ ϭϴϵ͕ϳϯϮ Ϯϯϭ͕ϲϲϵ Ϯϱϱ͕ϵϮϱ Ϯϰϯ͕ϮϳϬϭϭ͕ϲϬϭϰ͘ϴй ϰͲϰϬϬϬK&&/^hWW>/^ϱϰϭϵϳϰϲϬϳϱϬϬϱϬϬ;ϭϬϳͿ;Ϯϭ͘ϰйͿϰͲϰϬϭϱKWZd/E'DdZ/>^Ϯϭ͕ϭϭϯ ϱϵ͕ϯϯϭ ϳϳ͕ϯϴϬϳϳ͕ϱϴϴ ϳϳ͕ϯϱϴ;ϮϮͿ ;Ϭ͘ϬйͿ ϰͲϰϬϭϴ>/E^^ϰϰϵͲ ϭ͕ϬϭϬϭ͕ϭϬϬϱϬϰ;ϱϬϲͿ;ϭϬϬ͘ϰйͿϰͲϰϬϰϱDhE//W>h^/E^^Ϯ͕ϱϯϬͲ ϲ͕ϳϱϰϭ͕ϱϬϬ ϭ͕ϱϬϬ;ϱ͕ϮϱϰͿ;ϯϱϬ͘ϯйͿϰͲϱϬϮϭDK/>W>E,Z'^ͲͲϰϵϱϱϱϭϱϬϵϭϰϮ͘ϴй ϰͲϱϬϮϲKhZ^^Θ^D/EZ^Ϯ͕Ϭϳϰ ϭ͕ϮϮϬ ϭ͕ϯϰϯϭ͕ϱϬϬ ϭ͕ϱϬϬϭϱϳϭϬ͘ϱйϰͲϱϬϮϴDDZ^,/W^ϯϵϴϱϱϳϰϵϯϳϬϬϰϯϰ;ϱϵͿ;ϭϯ͘ϲйͿϰͲϱϬϰϯKE^h>d/E'ϰ͕ϲϱϳ ϱ͕ϲϲϲ Ϯ͕ϲϭϱϱ͕ϱϬϬ ϱ͕ϱϬϬϮ͕ϴϴϱϱϮ͘ϱйϰͲϱϬϱϵKEdZd^ϯϵϯ͕ϵϬϬ ϰϭϲ͕Ϯϭϯ ϰϭϱ͕ϳϬϬϰϭϱ͕ϳϬϬ ϰϭϱ͕ϳϬϬͲͲϰͲϳϬϬϬKDDhE/dz'ZEd^ϭϳ͕ϯϭϵ ϭϱ͕ϳϵϭ ϭϬ͕Ϭϱϰϭϲ͕ϬϬϬ ϭϰ͕ϭϳϮϰ͕ϭϭϴϮϵ͘ϭйϰͲϳϬϬϭ,/^dKZ/>^K/dz'ZEdϳϬ͕ϱϬϬ ϳϮ͕ϲϬϬ ϳϰ͕ϰϬϬϳϳ͕ϵϬϬ ϳϳ͕ϵϬϬϯ͕ϱϬϬ ϰ͘ϱй dKd>Kd,ZyWE^^ ϱϭϯ͕ϰϴϭ ϱϳϮ͕ϯϱϮ ϱϵϬ͕ϴϱϭ ϱϵϴ͕ϱϯϵ ϱϵϱ͕ϱϳϳ ϰ͕ϳϮϲ Ϭ͘ϴйdKd>yWE^^ ϲϯϰ͕ϯϱϴ ϳϲϮ͕Ϭϴϰ ϴϮϮ͕ϱϮϬ ϴϱϰ͕ϰϲϰ ϴϯϴ͕ϴϰϳ ϭϲ͕ϯϮϳ ϭ͘ϵй Edh'd ϲϮϯ͕Ϭϵϱ ϳϰϯ͕ϲϳϰ ϳϵϭ͕ϰϰϰ ϴϰϱ͕ϵϲϰ ϴϯϭ͕ϳϲϳϰϬ͕ϯϮϯϰ͘ϴй Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 1 Page 5 of 10 ϮϬϭϲ ϮϬϭϳ ϮϬϭϴϮϬϭϵ ϮϬϭϵϮϬϭϵ&ĐƐƚǀƐ ϮϬϭϵ&ĐƐƚǀƐ&ƵůůzĞĂƌ &ƵůůzĞĂƌ &ƵůůzĞĂƌƉƉƌŽǀĞĚ &ŽƌĞĐĂƐƚϮϬϭϴĐƚƵĂů ϮϬϭϴĐƚƵĂů sĂƌŝĂŶĐĞǆƉůĂŶĂƚŝŽŶĐƚƵĂůƐ ĐƚƵĂůƐ ĐƚƵĂůƐƵĚŐĞƚ ƚŽzĞĂƌͲĞŶĚ/ŶĐƌĞĂƐĞͬ;ĞĐƌĞĂƐĞͿ /ŶĐƌĞĂƐĞͬ;ĞĐƌĞĂƐĞͿZsEh͗ϯͲϭϭϬϮD/E/^dZd/s&^;ϭϲϮͿ ;ϭϲϵͿϰϱ;ϰϬϬͿ ;ϭϲϱͿϮϭϬϭϮϳ͘ϯйϯͲϭϮϬϭKd,Z;ϵ͕ϬϬϬͿ ;ϵ͕ϮϳϬͿ ;ϵ͕ϱϰϴͿ;ϵ͕ϵϬϬͿ ;ϭϬ͕ϱϲϱͿϭ͕Ϭϭϳ ϵ͘ϲй ϯͲϭϮϬϰ^WKE^KZ^,/W;ϱϭ͕ϯϳϱͿ ;ϱϲ͕ϵϱϬͿ ;ϱϬ͕ϯϱϬͿ;ϵϰ͕ϬϬϬͿ ;ϭϬϮ͕ϯϰϯͿϱϭ͕ϵϵϯ ϱϬ͘ϴйWƌŽũĞĐƚĞĚŝŶĐƌĞĂƐĞŝŶƐƉŽŶƐŽƌƐŚŝƉƌĞǀĞŶƵĞĂĐŚŝĞǀĞĚ͘ϯͲϭϮϭϬsZd/^/E'^>^Ͳ&/>/d/^;ϵϬ͕ϭϰϲͿ ;ϵϳ͕ϲϱϲͿ ;ϭϬϲ͕ϯϯϰͿ;ϭϭϭ͕ϬϬϬͿ ;ϭϮϮ͕ϬϮϭͿϭϱ͕ϲϴϳϭϮ͘ϵйϯͲϭϯϬϬZEd>;ϭϳϰ͕ϮϮϯͿ ;ϭϳϳ͕ϮϮϴͿ ;ϭϭϵ͕ϬϵϲͿ;ϭϭϱ͕ϬϬϬͿ ;ϭϭϮ͕ϴϯϯͿ;ϲ͕ϮϲϯͿ ;ϱ͘ϲйͿ ϯͲϭϯϬϭsE/E'D,/E^>^;ϰϰ͕ϳϵϱͿ ;ϰϱ͕ϮϲϯͿ ;ϱϬ͕ϮϰϭͿ;ϯϴ͕ϳϬϬͿ ;ϯϵ͕ϰϳϴͿ;ϭϬ͕ϳϲϯͿ;Ϯϳ͘ϯйͿϯͲϭϯϮϯ/ZEd>;ϭ͕ϳϲϯ͕ϴϯϰͿ ;ϭ͕ϴϬϵ͕ϭϵϮͿ ;ϭ͕ϳϵϴ͕ϭϰϵͿ;ϭ͕ϳϴϱ͕ϬϬϬͿ ;ϭ͕ϴϰϳ͕ϭϴϴͿϰϵ͕ϬϯϵϮ͘ϳй ϯͲϭϵϬϭKEdZ/hd/KE&ZKD/^Zd/KEZzZ^Zs^;ϭϬϬ͕ϬϬϬͿͲͲͲͲͲͲϯͲϭϵϮϵdyZd^d/>/d/KEKEdZ/hd/KEͲ ;ϰϬ͕ϬϬϬͿͲͲͲͲͲdŽƚĂůZĞǀĞŶƵĞ;Ϯ͕Ϯϯϯ͕ϱϯϱͿ ;Ϯ͕Ϯϯϱ͕ϳϮϴͿ ;Ϯ͕ϭϯϯ͕ϲϳϯͿ ;Ϯ͕ϭϱϰ͕ϬϬϬͿ ;Ϯ͕Ϯϯϰ͕ϱϵϯͿϭϬϬ͕ϵϮϬϰ͘ϱй yWE^͗ϰͲϮϬϬϬ^>Z/^Ͳ&ͬdϲϭϭ͕ϲϲϭ ϱϳϵ͕ϬϵϮ ϱϲϬ͕ϰϳϮϴϮϯ͕ϱϵϲ ϳϭϰ͕ϱϵϴϭϱϰ͕ϭϮϲ Ϯϭ͘ϲйEĞǁƉŽƐŝƚŝŽŶ;ƵƐƚ͘^Ğƌǀ͘^Ɖǀƌ͘ͿĂŶĚ&ͬdǀĂĐĂŶĐŝĞƐĨŝůůĞĚŝŶϮϬϭϵ͘&ͬdĞŵƉůŽǇĞĞƌĞƚƵƌŶĞĚĨƌŽŵ>dŝŶϮϬϭϵ͘ϰͲϮϬϬϭ^>Z/^ͲKͬdϰ͕ϱϰϱ ϲ͕Ϭϲϭ ϲ͕ϬϮϭͲ ϴ͕ϲϲϯϮ͕ϲϰϮϯϬ͘ϱйϰͲϮϬϬϮ^>Z/^ͲWͬdϮϭϯ͕Ϯϯϲ ϯϮϱ͕ϰϮϭ ϰϴϯ͕ϴϬϱϯϱϵ͕ϰϲϳ ϰϯϲ͕ϯϮϳ;ϰϳ͕ϰϳϴͿ ;ϭϬ͘ϵйͿZĞĚƵĐĞĚĚĞƉĞŶĚĞŶĐǇŽŶWͬdƐƚĂĨĨƚŽŽĨĨƐĞƚ&ͬdǀĂĐĂŶĐŝĞƐ͘ϰͲϮϬϬϯsd/KEWzϲ͕ϬϬϬͲͲͲͲͲͲϰͲϮϬϬϰ^/<Wzϭ͕ϱϬϱͲͲͲͲͲͲϰͲϮϬϬϱ>/hd/DϮϯϳͲͲͲͲͲͲϰͲϮϬϵϬzZEZh>^ϯ͕ϲϭϭϭϳϮ Ϯϱ͕ϴϵϱͲ ;ϭϯ͕ϱϳϯͿ;ϯϵ͕ϰϲϴͿ;ϮϵϬ͘ϴйͿzĞĂƌͲĞŶĚĂĐĐƌƵĂůƐǀĂƌǇĨƌŽŵǇĞĂƌƚŽǇĞĂƌďĂƐĞĚŽŶƉĂǇƉĞƌŝŽĚĞŶĚŝŶŐĚĂƚĞƐ͘ϰͲϮϭϬϬE&/d^ͲKDZ^ϲϱ͕ϱϬϱ ϲϱ͕ϲϴϰ ϲϮ͕ϰϯϭϳϳ͕Ϭϭϵ ϴϱ͕ϭϬϰϮϮ͕ϲϳϯ Ϯϲ͘ϲй/ŶĐƌĞĂƐĞŝŶϮϬϭϵŝƐĚƵĞƚŽWĂǇƋƵŝƚǇĂĚũƵƐƚŵĞŶƚ͘ϰͲϮϭϬϭE&/d^Ͳ,dϭϲ͕ϰϯϯ ϭϳ͕ϳϵϲ ϮϬ͕ϯϵϰϮϭ͕ϵϳϯ ϮϮ͕ϱϲϵϮ͕ϭϳϱ ϵ͘ϲй ϰͲϮϭϬϮE&/d^Ͳt^/ϲ͕ϭϮϵ ϲ͕ϲϰϮ ϳ͕ϱϳϰϴ͕ϰϱϭ ϴ͕ϲϭϲϭ͕ϬϰϮϭϮ͘ϭйϰͲϮϭϬϯE&/d^ͲWWϮϵ͕ϳϮϯ ϯϯ͕ϵϬϱ ϯϵ͕ϴϱϴϰϯ͕ϲϲϯ ϰϭ͕ϴϮϬϭ͕ϵϲϮ ϰ͘ϳй ϰͲϮϭϬϰE&/d^Ͳ/ϭϵ͕ϭϱϰ ϭϴ͕ϭϬϯ Ϯϭ͕ϲϴϳϮϬ͕ϯϰϳ Ϯϭ͕ϱϲϲ;ϭϮϭͿ ;Ϭ͘ϲйͿ ϰͲϮϭϬϱE&/d^ͲEd>ϭϯ͕ϯϰϴ ϭϰ͕ϯϳϮ ϭϱ͕ϮϵϮϮϬ͕ϴϯϮ ϭϱ͕ϱϱϱϮϲϯ ϭ͘ϳй ϰͲϮϭϬϲE&/d^Ͳ,>d,Ϯϲ͕Ϯϰϱ Ϯϳ͕ϰϰϳ Ϯϳ͕ϵϴϯϯϲ͕ϰϳϵ Ϯϴ͕ϵϮϳϵϰϰ ϯ͘ϯй ϰͲϮϭϬϳE&/d^Ͳ>dͬϭϬ͕ϴϭϰ ϭϬ͕ϰϳϴ ϭϮ͕ϱϮϲϭϳ͕ϴϳϱ ϭϰ͕ϱϯϰϮ͕ϬϬϴϭϯ͘ϴйϰͲϮϭϬϴE&/d^ͲKd,Zϯ͕ϭϭϭ Ϯ͕ϵϱϰ ϯ͕Ϭϵϵϰ͕Ϭϴϯ ϯ͕Ϭϴϲ;ϭϯͿ ;Ϭ͘ϰйͿ ϰͲϮϮϬϬt'ZKsZz;ϯϬϮͿͲͲͲͲͲͲdKd>^>Z/^ΘE&/d^ϭ͕ϬϯϬ͕ϵϱϱ ϭ͕ϭϬϴ͕ϭϮϳ ϭ͕Ϯϴϳ͕Ϭϯϳ ϭ͕ϰϯϯ͕ϳϴϱ ϭ͕ϯϴϳ͕ϳϵϮϭϬϬ͕ϳϱϱϳ͘ϯй ϰͲϰϬϬϬK&&/^hWW>/^ϯ͕ϵϵϰ ϯ͕ϴϬϲ ϱ͕ϭϲϱϲ͕ϱϬϬ ϱ͕ϱϯϲϯϳϭ ϲ͘ϳй ϰͲϰϬϬϳKDWhdZ^hWW>/^ϵϰϮͲϯϬϱϮ͕ϱϬϬ Ϯ͕ϯϳϯϮ͕Ϭϲϴϴϳ͘ϭйϰͲϰϬϭϱKWZd/E'DdZ/>^ϴ͕ϳϳϳ ϰ͕ϵϮϬ ϱ͕ϭϱϯϭϬ͕ϮϬϬ ϭϲ͕ϱϵϯϭϭ͕ϰϰϬϲϴ͘ϵйϰͲϰϬϭϴ>/E^^ϭ͕ϯϮϭ ϭ͕ϯϮϭ Ϯ͕ϳϵϴϮ͕ϴϬϬ ϯ͕ϯϳϱϱϳϳϭϳ͘ϭйϰͲϰϬϰϱDhE//W>h^/E^^ϲϰϴϱϬϵ ϰ͕ϮϱϬϰϱϬ ϭ͕ϭϴϳ;ϯ͕ϬϲϯͿ;Ϯϱϴ͘ϬйͿϰͲϰϬϱϴKWZd/E'DdZ/>^ͲsZd/^/E'ϭϮ͕ϬϮϭ ϭϴ͕ϲϵϳ ϯϰ͕ϲϭϮϭϱ͕ϬϬϬ Ϯϰ͕Ϯϲϰ;ϭϬ͕ϯϰϴͿ;ϰϮ͘ϲйͿϰͲϱϬϮϭDK/>W>E,Z'^ͲͲϰϵϱϱϱϭϲϲϲϭϳϭϮϱ͘ϳйϰͲϱϬϮϲKhZ^^Θ^D/EZ^ϭ͕ϰϰϯ ϯ͕ϳϯϬ ϯ͕ϯϴϰϯ͕ϳϬϬ ϯ͕ϬϬϭ;ϯϴϯͿ;ϭϮ͘ϴйͿϰͲϱϬϮϵD/>'ϵϭϳϵϲϭ ϭ͕ϯϲϮϭ͕ϰϬϬ ϭ͕ϭϯϵ;ϮϮϯͿ;ϭϵ͘ϲйͿϰͲϱϬϱϵKEdZd^ϭϱϰ͕ϱϮϵ ϲ͕Ϭϲϵ ϭϱϭ͕ϰϲϮϭϯϰ͕ϴϬϬ ϭϭϮ͕ϯϲϯ;ϯϵ͕ϬϵϵͿ ;ϯϰ͘ϴйͿEŽůŽŶŐĞƌĨƵŶĚŝŶŐ^ƉŽƌƚƵƌŽƌĂŝŶϮϬϭϵ͘ϰͲϲϬϬϭE<,Z'^Ϯϰ͕ϴϱϮ Ϯ͕ϮϰϬ Ϯ͕ϮϱϮϮ͕ϱϬϬ Ϯ͕ϳϯϭϰϳϵϭϳ͘ϱйϰͲϲϬϬϮd/sEd,Z'^E&^Ͳ ϭϵ͕ϭϱϳ ϭϵ͕ϭϴϭϭϲ͕ϬϬϬ ϭϴ͕ϭϭϬ;ϭ͕ϬϳϭͿ ;ϱ͘ϵйͿ ϰͲϲϬϬϯd/sEdZKKD,Z'^E&^Ͳ ϭϯ͕ϳϴϰ ϵ͕ϴϲϴϭϬ͕ϬϬϬ ϵ͕ϴϭϬ;ϱϴͿ ;Ϭ͘ϲйͿ ϰͲϴϬϬϮKEdZ/hd/KE^dKW/d>ϰϯ͕ϴϲϮͲͲͲͲͲͲϰͲϴϬϬϯKEdZ/hd/KE^dK/^Zd/KEZzZ^Zs^ϰϰ͕ϵϲϯ ϱϲ͕ϳϲϬ ϰϵ͕ϵϭϵϴϳ͕ϴϬϬ ϴϴ͕ϵϵϰϯϵ͕Ϭϳϱ ϰϯ͘ϵйŽƌƌĞƐƉŽŶĚƐǁŝƚŚŝŶĐƌĞĂƐĞĚƐƉŽŶƐŽƌƐŚŝƉƌĞǀĞŶƵĞ͘dKd>Kd,ZyWE^^ Ϯϵϴ͕Ϯϲϵ ϭϯϭ͕ϵϱϰ ϮϵϬ͕ϮϬϲ Ϯϵϰ͕ϮϬϭ ϮϵϬ͕ϭϰϮ ;ϲϰͿ ;Ϭ͘ϬйͿ dKd>yWE^^ϭ͕ϯϮϵ͕ϮϮϰ ϭ͕ϮϰϬ͕Ϭϴϭ ϭ͕ϱϳϳ͕Ϯϰϯ ϭ͕ϳϮϳ͕ϵϴϲ ϭ͕ϲϳϳ͕ϵϯϰϭϬϬ͕ϲϵϭϲ͘Ϭй Edh'd;ϵϬϰ͕ϯϭϭͿ ;ϵϵϱ͕ϲϰϳͿ ;ϱϱϲ͕ϰϯϬͿ ;ϰϮϲ͕ϬϭϰͿ ;ϱϱϲ͕ϲϱϵͿ;ϮϮϵͿ;Ϭ͘ϬйͿ Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 1 Page 6 of 10 ϮϬϭϲ ϮϬϭϳ ϮϬϭϴϮϬϭϵ ϮϬϭϵϮϬϭϵ&ĐƐƚǀƐ ϮϬϭϵ&ĐƐƚǀƐ&ƵůůzĞĂƌ &ƵůůzĞĂƌ &ƵůůzĞĂƌƉƉƌŽǀĞĚ &ŽƌĞĐĂƐƚϮϬϭϴĐƚƵĂů ϮϬϭϴĐƚƵĂůsĂƌŝĂŶĐĞǆƉůĂŶĂƚŝŽŶĐƚƵĂůƐ ĐƚƵĂůƐ ĐƚƵĂůƐƵĚŐĞƚ ƚŽzĞĂƌͲĞŶĚ/ŶĐƌĞĂƐĞͬ;ĞĐƌĞĂƐĞͿ /ŶĐƌĞĂƐĞͬ;ĞĐƌĞĂƐĞͿZsEh͗ϯͲϭϮϬϭKd,Z;ϮϬϵ͕ϮϱϮͿ ;ϮϬϬ͕ϰϴϱͿ ;Ϯϯϱ͕ϬϭϱͿ;ϮϬϭ͕ϬϬϬͿ ;Ϯϭϲ͕ϱϳϴͿ;ϭϴ͕ϰϯϳͿ ;ϴ͘ϱйͿ ϯͲϭϮϬϯsZd/^/E';ϰϬ͕ϭϮϰͿ ;ϰϬ͕ϰϵϴͿ ;ϰϱ͕ϭϴϳͿ;ϰϬ͕ϵϯϬͿ ;ϰϬ͕ϮϴϱͿ;ϰ͕ϵϬϮͿ;ϭϮ͘ϮйͿϯͲϭϮϬϰ^WKE^KZ^,/W;ϰϮ͕ϰϮϬͿ ;ϱϭ͕ϮϱϭͿ ;ϰϲ͕ϮϮϬͿ;ϰϯ͕ϮϱϬͿ ;ϲϰ͕ϳϰϰͿϭϴ͕ϱϮϰϮϴ͘ϲйϯͲϭϮϬϲKEd/KE^;ϳ͕ϭϱϴͿ ;ϭϱ͕ϱϬϯͿ ;ϭϰ͕ϭϮϱͿ;Ϯ͕ϬϬϬͿ ;ϴ͕ϮϮϱͿ;ϱ͕ϵϬϬͿ;ϳϭ͘ϳйͿϯͲϭϮϭϬsZd/^/E'^>^Ͳ&/>/d/^ϭ͕ϮϳϯͲͲͲͲͲͲϯͲϭϯϬϱDDZ^,/W&^;ϰϮ͕ϵϬϬͿ ;ϯϮ͕ϳϱϴͿ ;ϱϱ͕ϲϯϯͿ;ϰϱ͕ϱϮϱͿ ;ϰϱ͕ϱϮϰͿ;ϭϬ͕ϭϬϵͿ;ϮϮ͘ϮйͿϯͲϭϯϬϲDDZ^,/W^Ͳ&/dE^^;ϭϵϯ͕ϴϴϬͿ ;ϭϲϱ͕ϱϰϰͿ ;ϯϭϰ͕ϮϳϲͿ;Ϯϭϱ͕ϬϬϬͿ ;Ϯϱϰ͕ϵϵϯͿ;ϱϵ͕ϮϴϯͿ ;Ϯϯ͘ϮйͿZĞǀĞŶƵĞĚĞĨĞƌƌĂůĨƌŽŵϮϬϭϳƚŽϮϬϭϴĐƌĞĂƚĞƐĂŶŽǀĞƌŝŶĨůĂƚĞĚϮϬϭϴĂĐƚƵĂů͘ϮϬϭϵƌĞƉƌĞƐĞŶƚƐĂŵŽƌĞƌĞĂůŝƐƚŝĐŶƵŵďĞƌ͘ϯͲϭϯϬϳDDZ^,/W^ͲZYhd^;ϭϵ͕ϯϭϳͿ ;ϭϬ͕ϬϴϲͿ ;ϭϱ͕ϯϳϴͿ;ϭϯ͕ϬϬϬͿ ;ϵ͕ϴϵϯͿ;ϱ͕ϰϴϱͿ;ϱϱ͘ϰйͿϯͲϭϯϬϴDDZ^,/W^ͲYhd/^;Ϯϴ͕ϬϮϮͿ ;ϮϮ͕ϮϯϱͿ ;ϯϵ͕ϭϰϬͿ;ϯϬ͕ϬϬϬͿ ;Ϯϴ͕ϴϳϱͿ;ϭϬ͕ϮϲϱͿ;ϯϱ͘ϱйͿϯͲϭϯϬϵWZK'ZD;ϭϳϰ͕ϲϲϮͿ ;ϭϴϬ͕ϳϮϳͿ ;ϭϳϳ͕ϴϬϯͿ;ϭϴϴ͕ϬϬϬͿ ;ϮϬϬ͕ϮϮϬͿϮϮ͕ϰϭϳ ϭϭ͘ϮйEĞǁƉƌŽŐƌĂŵƐĂŶĚŚŝŐŚĞƌƌĞŐŝƐƚƌĂƚŝŽŶŶƵŵďĞƌƐƌĞƐƵůƚĞĚŝŶŚŝŐŚĞƌƚŚĂŶďƵĚŐĞƚĞĚƌĞǀĞŶƵĞ͘ϯͲϭϯϭϬWZK'ZDͲ&/dE^^;ϯϬ͕ϲϭϬͿ ;ϮϮ͕ϭϬϲͿ ;ϯϯ͕ϭϭϮͿ;Ϯϴ͕ϬϬϬͿ ;ϯϮ͕ϲϱϰͿ;ϰϱϴͿ ;ϭ͘ϰйͿ ϯͲϭϯϭϭWZK'ZDͲZYhd^;ϭϱ͕ϲϴϬͿ ;ϭϱ͕ϯϭϳͿ ;ϭϱ͕ϬϭϲͿ;ϭϭ͕ϱϬϬͿ ;ϭϰ͕ϭϯϮͿ;ϴϴϰͿ ;ϲ͘ϯйͿ ϯͲϭϯϭϮWZK'ZDͲYhd/^;ϲϰϲ͕ϰϮϱͿ ;ϱϲϳ͕ϮϮϳͿ ;ϲϴϲ͕ϳϴϱͿ;ϲϰϬ͕ϬϬϬͿ ;ϳϲϰ͕ϯϰϰͿϳϳ͕ϱϱϵ ϭϬ͘ϭйEĞǁƉƌŽŐƌĂŵƐĂŶĚŚŝŐŚĞƌƌĞŐŝƐƚƌĂƚŝŽŶŶƵŵďĞƌƐƌĞƐƵůƚĞĚŝŶŚŝŐŚĞƌƚŚĂŶďƵĚŐĞƚĞĚƌĞǀĞŶƵĞ͘ϯͲϭϯϭϯWZK'ZDͲh>d;Ϯϱ͕ϰϵϲͿ ;ϮϬ͕ϴϯϴͿ ;ϰϯ͕ϲϱϴͿ;ϯϬ͕ϬϬϬͿ ;ϰϭ͕ϵϴϰͿ;ϭ͕ϲϳϰͿ ;ϰ͘ϬйͿ ϯͲϭϯϭϰWZK'ZDͲ,/>ZE;ϭϲϮ͕ϲϲϱͿ ;ϭϬϯ͕ϬϳϳͿ ;ϵϱ͕ϳϲϬͿ;ϭϬϬ͕ϬϬϬͿ ;ϴϴ͕ϬϮϲͿ;ϳ͕ϳϯϰͿ ;ϴ͘ϴйͿ ϯͲϭϯϭϱWZK'ZDͲWZ^,KK>;ϭϲϭ͕ϮϮϳͿ ;ϭϬϬ͕ϯϭϵͿ ;ϵϬ͕ϯϱϳͿ;ϭϮϬ͕ϬϬϬͿ ;ϵϲ͕ϭϬϬͿϱ͕ϳϰϯ ϲ͘Ϭй ϯͲϭϯϭϳWZK'ZDͲDW^;ϲϲϮ͕ϰϳϯͿ ;ϲϯϱ͕ϳϲϭͿ ;ϲϮϴ͕ϰϮϴͿ;ϲϯϱ͕ϬϬϬͿ ;ϳϬϮ͕ϯϱϱͿϳϯ͕ϵϮϳ ϭϬ͘ϱйEĞǁƉƌŽŐƌĂŵƐĂŶĚŚŝŐŚĞƌƌĞŐŝƐƚƌĂƚŝŽŶŶƵŵďĞƌƐƌĞƐƵůƚĞĚŝŶŚŝŐŚĞƌƚŚĂŶďƵĚŐĞƚĞĚƌĞǀĞŶƵĞ͘ϯͲϭϯϭϵD/^^/KE^;Ϯϰ͕ϵϯϱͿ ;Ϯϰ͕ϮϬϱͿ ;Ϯϯ͕ϳϱϯͿ;Ϯϰ͕ϱϬϬͿ ;Ϯϱ͕ϵϵϯͿϮ͕ϮϰϬ ϴ͘ϲй ϯͲϭϯϮϬD/^^/KE^Ͳ&/dE^^;ϳϳ͕ϴϭϬͿ ;ϳϯ͕ϱϱϮͿ ;ϳϳ͕ϳϰϱͿ;ϳϱ͕ϬϬϬͿ ;ϴϮ͕ϳϯϬͿϰ͕ϵϴϱ ϲ͘Ϭй ϯͲϭϯϮϭD/^^/KE^ͲZYhd^;ϵ͕ϳϮϭͿ ;ϭϯ͕ϲϳϯͿ ;ϭϯ͕ϵϴϴͿ;ϭϮ͕ϬϬϬͿ ;ϭϰ͕ϳϯϴͿϳϱϬ ϱ͘ϭй ϯͲϭϯϮϮD/^^/KE^ͲYhd/^;ϭϰϵ͕ϱϰϵͿ ;ϭϭϰ͕ϯϲϬͿ ;ϭϭϮ͕ϯϲϮͿ;ϭϭϱ͕ϬϬϬͿ ;ϭϭϯ͕ϰϰϮͿϭ͕ϬϴϬ ϭ͘Ϭй ϯͲϭϯϮϰWh>/^<d/E';ϰϱ͕ϲϬϭͿ ;ϯϯ͕ϴϰϱͿ ;ϯϴ͕ϭϭϱͿ;Ϯϳ͕ϬϬϬͿ ;ϯϮ͕ϳϱϯͿ;ϱ͕ϯϲϮͿ;ϭϲ͘ϰйͿϯͲϭϯϮϱ^,/EEz,K<z;ϳ͕ϲϱϰͿ ;ϳ͕ϬϬϱͿ ;ϳ͕ϳϴϰͿ;ϴ͕ϬϬϬͿ ;ϭϬ͕ϲϭϭͿϮ͕ϴϮϳϮϲ͘ϲйϯͲϭϯϮϲWZ^KE>dZ/E/E';ϱ͕ϵϲϰͿ ;ϭϯ͕ϳϱϮͿ ;ϭϵ͕ϰϯϭͿ;ϭϮ͕ϬϬϬͿ ;ϭϲ͕ϮϰϭͿ;ϯ͕ϭϵϬͿ;ϭϵ͘ϲйͿϯͲϭϯϮϴ>K<Z&^;ϱ͕ϴϴϵͿ ;ϳ͕ϱϯϬͿ ;ϲ͕ϲϲϵͿ;ϰ͕ϱϬϬͿ ;ϯ͕ϰϱϱͿ;ϯ͕ϮϭϰͿ;ϵϯ͘ϬйͿϯͲϭϯϮϵ^>^KDD/^^/KE^;ϰ͕ϮϯϰͿ ;ϰ͕ϬϴϭͿ ;ϰ͕ϬϭϰͿ;ϰ͕ϲϬϬͿ ;ϭ͕ϴϰϵͿ;Ϯ͕ϭϲϱͿ;ϭϭϳ͘ϭйͿϯͲϭϯϯϲsEKZ&^;ϱ͕ϮϱϮͿ ;ϭ͕ϬϰϲͿ ;ϳϰϯͿ;ϴϬϬͿ ;ϳ͕ϭϬϮͿϲ͕ϯϱϵϴϵ͘ϱйϯͲϭϯϯϳ&>KdZ'/^dZd/KE&^;ϭ͕ϱϳϱͿ ;ϵϳϱͿ ;Ϯ͕ϮϴϵͿ;ϭ͕ϲϬϬͿ ;Ϯ͕ϬϱϬͿ;ϮϯϵͿ;ϭϭ͘ϳйͿϯͲϭϯϯϴEdZz&^;Ϯϯ͕ϳϴϭͿ ;ϯϬ͕ϳϭϬͿ ;Ϯϲ͕ϳϰϬͿ;Ϯϱ͕ϵϮϱͿ ;Ϯϳ͕ϬϰϬͿϯϬϬ ϭ͘ϭй ϯͲϭϯϯϵZK<t>>Ͳ ;ϵϱϭͿ ;ϭ͕ϴϭϲͿ;ϭ͕ϱϬϬͿ ;ϭ͕ϵϯϳͿϭϮϭ ϲ͘Ϯй ϯͲϭϴϬϬ&Z>'ZEd^;ϱϲ͕ϬϳϮͿ ;ϲϲ͕ϲϵϵͿ ;ϳϬ͕ϯϲϬͿ;ϮϬ͕ϬϬϬͿ ;ϭϵ͕ϳϬϬͿ;ϱϬ͕ϲϲϬͿ ;Ϯϱϳ͘ϮйͿϮϬϭϵĨŽƌĞĐĂƐƚĂŵŽƵŶƚŝƐŝŶĐŽƌƌĞĐƚ͘ZĞĐĞŝǀĞĚΨϱϭ͕ϬϬϬŝŶĨĞĚĞƌĂůŐƌĂŶƚƐĨŽƌϮϬϭϵ͘,ŽǁĞǀĞƌ͕ŶŽůŽŶŐĞƌƌĞĐĞŝǀŝŶŐƚŚĞĂŶĂĚĂĂǇŐƌĂŶƚƌĞƐƵůƚŝŶŐŝŶĂĚŝĨĨĞƌĞŶĐĞŽĨΨϮϬ͕ϬϬϬĨƌŽŵϮϬϭϴƚŽϮϬϭϵ͘ϯͲϭϴϬϭWZKs/E/>'ZEd^;ϰϮ͕ϳϬϬͿ ;ϱϬ͕ϭϴϮͿ ;ϱϴ͕ϯϯϬͿ;ϱϭ͕ϬϬϬͿ ;ϰϴ͕ϵϮϯͿ;ϵ͕ϰϬϳͿ;ϭϵ͘ϮйͿϯͲϭϴϬϯKd,Z'ZEd^;Ϯ͕ϬϬϬͿ ;Ϯ͕ϬϬϬͿ ;ϵ͕ϭϲϰͿͲ ;Ϯ͕ϰϰϬͿ;ϲ͕ϳϮϰͿ;Ϯϳϱ͘ϲйͿϯͲϭϵϬϬKEdZ/hd/KE&ZKDW/d>Ͳ ;ϰϯ͕ϬϬϬͿͲͲͲͲͲϯͲϭϵϯϵZZd/KE^WKE^KZ^,/WKEdΖEͲ ;Ϯ͕ϴϲϴͿ ;ϭϬ͕ϬϬϬͿ;ϭϬ͕ϬϬϬͿ ;ϭϬ͕ϬϬϬͿͲͲdŽƚĂůZĞǀĞŶƵĞ;Ϯ͕ϵϮϯ͕ϳϳϱͿ ;Ϯ͕ϲϳϰ͕ϭϲϲͿ ;ϯ͕Ϭϭϵ͕ϭϵϲͿ ;Ϯ͕ϳϯϲ͕ϲϯϬͿ ;ϯ͕ϬϮϵ͕ϵϯϲͿϭϬ͕ϳϰϬϬ͘ϰй yWE^͗ϰͲϮϬϬϬ^>Z/^Ͳ&ͬdϭ͕ϭϳϲ͕ϲϮϵ ϭ͕ϭϵϱ͕Ϯϰϱ ϭ͕ϮϳϬ͕ϯϱϰϭ͕ϰϮϵ͕ϰϱϵ ϭ͕ϯϳϯ͕ϱϰϴϭϬϯ͕ϭϵϰϳ͘ϱй ϰͲϮϬϬϭ^>Z/^ͲKͬdϭϰ͕ϯϵϲ ϭϲ͕Ϯϭϱ ϭϳ͕ϬϬϰͲ ϭϳ͕ϲϳϱϲϳϭ ϯ͘ϴй ϰͲϮϬϬϮ^>Z/^ͲWͬdϭ͕ϰϬϭ͕ϴϵϰ ϭ͕ϰϴϴ͕ϱϴϭ ϭ͕ϲϴϲ͕Ϭϴϴϭ͕ϳϬϲ͕ϰϵϬ ϭ͕ϲϴϮ͕ϲϴϲ;ϯ͕ϰϬϮͿ ;Ϭ͘ϮйͿ ϰͲϮϬϬϯsd/KEWzϰϬ͕ϭϴϱͲͲͲͲͲͲϰͲϮϬϬϰ^/<Wzϵ͕ϭϬϬͲͲͲͲͲͲϰͲϮϬϬϱ>/hd/DϲϲϰͲͲͲͲͲͲϰͲϮϬϵϬzZEZh>^Ϯϯ͕ϰϱϲ ;ϱ͕ϱϳϮͿ ϭϯ͕ϲϮϭͲ ;Ϯϴ͕ϵϭϰͿ;ϰϮ͕ϱϯϱͿ ;ϭϰϳ͘ϭйͿzĞĂƌͲĞŶĚĂĐĐƌƵĂůƐǀĂƌǇĨƌŽŵǇĞĂƌƚŽǇĞĂƌďĂƐĞĚŽŶƉĂǇƉĞƌŝŽĚĞŶĚŝŶŐĚĂƚĞƐ͘ϰͲϮϭϬϬE&/d^ͲKDZ^ϭϯϯ͕ϵϵϰ ϭϰϭ͕ϵϮϳ ϭϱϭ͕ϬϬϭϭϱϭ͕ϮϮϰ ϭϱϴ͕ϯϭϰϳ͕ϯϭϯ ϰ͘ϲй ϰͲϮϭϬϭE&/d^Ͳ,dϱϬ͕Ϭϳϲ ϱϮ͕ϲϵϳ ϱϴ͕Ϭϳϰϱϵ͕Ϯϲϳ ϲϬ͕ϭϯϲϮ͕ϬϲϮ ϯ͘ϰй ϰͲϮϭϬϮE&/d^Ͳt^/ϭϵ͕ϭϮϳ ϮϬ͕ϬϮϮ ϮϮ͕ϬϱϲϮϮ͕ϳϵϱ Ϯϯ͕Ϭϵϱϭ͕Ϭϯϵ ϰ͘ϱй ϰͲϮϭϬϯE&/d^ͲWWϴϰ͕ϴϲϱ ϴϲ͕ϱϰϳ ϵϱ͕ϬϰϭϭϮϯ͕ϰϳϯ ϵϲ͕ϭϲϵϭ͕ϭϮϴ ϭ͘Ϯй ϰͲϮϭϬϰE&/d^Ͳ/ϱϵ͕ϲϵϲ ϱϯ͕ϰϴϭ ϱϵ͕ϳϰϲϱϵ͕Ϭϳϭ ϱϳ͕ϮϯϬ;Ϯ͕ϱϭϲͿ ;ϰ͘ϰйͿ ϰͲϮϭϬϱE&/d^ͲEd>ϮϬ͕Ϯϰϳ Ϯϱ͕ϲϯϱ Ϯϱ͕ϲϬϲϯϭ͕Ϯϰϴ Ϯϲ͕ϴϵϬϭ͕Ϯϴϰ ϰ͘ϴй ϰͲϮϭϬϲE&/d^Ͳ,>d,ϰϭ͕ϲϯϲ ϰϱ͕Ϯϯϭ ϰϲ͕ϭϯϯϱϰ͕ϳϭϵ ϰϳ͕ϲϲϴϭ͕ϱϯϱ ϯ͘Ϯй ϰͲϮϭϬϳE&/d^Ͳ>dͬϮϬ͕ϳϱϵ Ϯϯ͕ϲϵϳ Ϯϵ͕ϮϴϲϯϮ͕ϰϯϵ ϯϬ͕ϳϴϳϭ͕ϱϬϭ ϰ͘ϵй ϰͲϮϭϬϴE&/d^ͲKd,Zϱ͕ϰϯϭ ϱ͕ϵϰϭ ϲ͕ϲϮϲϳ͕ϰϭϬ ϲ͕ϰϭϮ;ϮϭϰͿ ;ϯ͘ϯйͿ ϰͲϮϮϬϬt'ZKsZz;ϰϲϵͿͲͲͲͲͲͲdKd>^>Z/^ΘE&/d^ϯ͕ϭϬϭ͕ϲϴϲ ϯ͕ϭϰϵ͕ϲϰϳ ϯ͕ϰϴϬ͕ϲϯϲ ϯ͕ϲϳϳ͕ϱϵϱ ϯ͕ϱϱϭ͕ϲϵϲϳϭ͕ϬϲϬϮ͘Ϭй ϰͲϰϬϬϬK&&/^hWW>/^Ϯ͕ϱϮϱ Ϯ͕ϳϯϵ ϯ͕ϳϰϬϯ͕ϳϬϬ ϰ͕ϰϮϳϲϴϳϭϱ͘ϱйϰͲϰϬϭϬ>Kd,/E'>>KtEϮ͕ϱϲϮ ϯ͕ϴϲϳ ϱ͕ϯϯϳϱ͕ϰϬϬ ϴ͕ϮϮϭϮ͕ϴϴϰϯϱ͘ϭйϰͲϰϬϭϱKWZd/E'DdZ/>^ϳϯ͕ϭϯϱ ϴϵ͕ϳϭϲ ϭϭϰ͕ϱϵϱϵϰ͕ϵϬϬ ϵϰ͕Ϯϲϯ;ϮϬ͕ϯϯϮͿ ;Ϯϭ͘ϲйͿEĞǁƉƌŽŐƌĂŵƐƌĞƋƵŝƌĞĞǆƚƌĂŵĂƚĞƌŝĂůƐ͘ŽƌƌĞƐƉŽŶĚƐǁŝƚŚŝŶĐƌĞĂƐĞĚƌĞǀĞŶƵĞƐĂďŽǀĞ͘ϰͲϰϬϭϴ>/E^^ϴϭϲ ϴϭϲ ϴϳϲϭ͕ϬϬϬ ϴϳϲͲͲϰͲϰϬϮϭYh/WDEdͲKd,ZϮϮ͕ϱϬϴ ϭϰ͕Ϭϯϭ ϭϭ͕ϭϰϲϭϵ͕ϮϬϬ ϭϲ͕Ϯϰϭϱ͕Ϭϵϱϯϭ͘ϰйϰͲϰϬϮϱWZK'ZDDdZ/>^ϰϬ͕ϵϱϯ ϱϳ͕ϭϱϵ ϰϭ͕ϱϰϴϰϯ͕ϮϬϬ ϰϲ͕ϴϳϰϱ͕ϯϮϲϭϭ͘ϰйϰͲϰϬϮϲWZKDKd/KE>ͬZK'E/d/KEϵϯϲ Ϯ͕ϭϯϱ ϭ͕ϬϴϬϯ͕ϳϬϬ ϭ͕ϱϬϱϰϮϱϮϴ͘ϮйϰͲϰϬϰϱDhE//W>h^/E^^ϯϵϰϲϭ ϰϬϬϱϬϬ ϴ͕ϰϮϬϴ͕ϬϮϬϵϱ͘ϮйFinance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 1 Page 7 of 10 ϮϬϭϲ ϮϬϭϳ ϮϬϭϴϮϬϭϵ ϮϬϭϵϮϬϭϵ&ĐƐƚǀƐϮϬϭϵ&ĐƐƚǀƐ&ƵůůzĞĂƌ &ƵůůzĞĂƌ &ƵůůzĞĂƌƉƉƌŽǀĞĚ &ŽƌĞĐĂƐƚϮϬϭϴĐƚƵĂůϮϬϭϴĐƚƵĂůsĂƌŝĂŶĐĞǆƉůĂŶĂƚŝŽŶĐƚƵĂůƐ ĐƚƵĂůƐ ĐƚƵĂůƐƵĚŐĞƚ ƚŽzĞĂƌͲĞŶĚ/ŶĐƌĞĂƐĞͬ;ĞĐƌĞĂƐĞͿ /ŶĐƌĞĂƐĞͬ;ĞĐƌĞĂƐĞͿϰͲϰϬϰϳ^hWW>/^ϰ͕ϱϱϯ ϰ͕ϴϯϲ ϯ͕ϴϳϱϱ͕ϬϬϬ ϱ͕ϳϳϯϭ͕ϴϵϴϯϮ͘ϵйϰͲϱϬϮϭDK/>W>E,Z'^ͲͲ ϭϲ͕ϰϴϰϭϴ͕ϯϮϵ ϳ͕ϳϴϱ;ϴ͕ϲϵϵͿ;ϭϭϭ͘ϳйͿϰͲϱϬϮϲKhZ^^Θ^D/EZ^ϯ͕ϯϭϴ Ϯ͕ϱϭϮ ϳ͕Ϭϴϲϱ͕ϲϭϮ ϲ͕Ϯϰϵ;ϴϯϳͿ;ϭϯ͘ϰйͿϰͲϱϬϮϳDEdKZzKhZ^^Θ^D/EZ^ϭ͕Ϯϭϭ ϵϰϵ ϭϱϰϭ͕ϲϬϬ ϭ͕ϭϬϱϵϱϭϴϲ͘ϭйϰͲϱϬϮϴDDZ^,/W^ϭ͕ϰϳϵ ϭ͕ϴϲϳ ϭ͕ϵϬϭϭ͕ϵϬϬ Ϯ͕ϰϳϴϱϳϳϮϯ͘ϯйϰͲϱϬϮϵD/>'ϰ͕ϮϮϬ ϱ͕ϮϳϬ ϰ͕ϰϲϬϲ͕ϲϳϱ ϰ͕ϳϴϮϯϮϮϲ͘ϳй ϰͲϱϬϯϯYh/WDEdZW/Z^ϭϬ͕ϱϴϬ ϭϭ͕ϯϵϴ ϵ͕ϴϵϭϭϳ͕ϳϬϬ ϵ͕ϰϳϭ;ϰϮϬͿ;ϰ͘ϰйͿ ϰͲϱϬϯϰYh/WDEdZEd>^ϯϲ͕ϲϲϱ ϰϭ͕ϲϯϯ ϰϴ͕Ϯϲϲϱϱ͕ϱϬϱ ϱϰ͕ϱϰϰϲ͕Ϯϳϴϭϭ͘ϱйϰͲϱϬϰϲWZ/Ed/E'Ϯ͕ϳϬϲ ϱ͕ϯϳϳ ϲ͕ϯϯϳϭϭ͕ϬϬϬ ϳ͕Ϯϵϯϵϱϲϭϯ͘ϭйϰͲϱϬϰϵWK>/^Z,^ϮϯϬ ϭϴϬͲϱϬϬͲͲͲϰͲϱϬϱϵKEdZd^ϱϰϲ͕ϱϵϴ ϱϬϮ͕ϱϱϵ ϰϭϰ͕ϰϱϭϱϬϬ͕ϯϱϬ ϰϳϱ͕ϬϯϰϲϬ͕ϱϴϯϭϮ͘ϴй^ŽŵĞŶĞǁƉƌŽŐƌĂŵƐǁĞƌĞƌƵŶďǇĐŽŶƚƌĂĐƚĞĚƐĞƌǀŝĐĞƉƌŽǀŝĚĞƌƐ͕ƌĞƐƵůƚŝŶŐŝŶƚŚĞƐĞĞǆƚƌĂĐŽƐƚƐ͘ŽƌƌĞƐƉŽŶĚƐǁŝƚŚŝŶĐƌĞĂƐĞĚƌĞǀĞŶƵĞĂďŽǀĞ͘ϰͲϱϬϲϬK^dZKsZz;ϳ͕ϳϮϱͿ ;ϲ͕ϬϬϰͿ ;Ϯϰ͕ϱϭϴͿ;ϰ͕ϬϬϬͿ ;ϴ͕ϱϮϱͿϭϱ͕ϵϵϯϭϴϳ͘ϲйϰͲϱϬϲϱZEd>^ϭϬ͕ϱϯϯ ϭϬ͕Ϭϵϴ ϵ͕ϴϮϵϭϮ͕ϬϬϬ ϭϯ͕ϴϱϭϰ͕ϬϮϮϮϵ͘ϬйϰͲϱϬϲϲKEdZd^ͲKhd/E'^ϰϴ͕ϬϱϮ ϲϰ͕ϭϳϰ ϲϯ͕ϯϵϳϱϱ͕ϬϬϬ ϲϭ͕ϰϱϳ;ϭ͕ϵϰϬͿ;ϯ͘ϮйͿ ϰͲϱϬϳϲWZ/Ed/E'ͲsZd/^/E'ϰϱ͕ϭϭϰ ϰϮ͕ϲϴϯ ϰϰ͕ϰϳϳϱϮ͕ϱϬϬ ϰϵ͕ϴϮϰϱ͕ϯϰϳϭϬ͘ϳйϰͲϱϬϴϬ'hZdDKDWd/d/KEͲϯϲϴͲϱϬϬ ϮϯϲϮϯϲϭϬϬ͘ϬйϰͲϱϬϴϭ^E/KZ^'D^ϴϴϴͲͲͲͲͲͲϰͲϲϬϬϮd/sEd,Z'^E&^Ͳ ϳϮ͕ϲϬϯ ϴϰ͕ϱϴϳϴϲ͕ϱϮϱ ϴϱ͕ϱϯϵϵϱϮϭ͘ϭй ϰͲϴϬϬϯKEdZ/hd/KE^dK/^Zd/KEZzZ^Zs^ϲ͕ϯϮϬ ϭϳ͕ϬϬϭ ϭϭ͕ϰϮϬͲͲ;ϭϭ͕ϰϮϬͿͲ dKd>Kd,ZyWE^^ϴϱϴ͕ϱϳϭ ϵϰϴ͕ϬϮϴ ϴϴϬ͕ϴϭϵ ϵϵϴ͕Ϯϵϲ ϵϱϳ͕ϳϮϯϳϲ͕ϵϬϰϴ͘Ϭй dKd>yWE^^ϯ͕ϵϲϬ͕Ϯϱϳ ϰ͕Ϭϵϳ͕ϲϳϱ ϰ͕ϯϲϭ͕ϰϱϱ ϰ͕ϲϳϱ͕ϴϵϭ ϰ͕ϱϬϵ͕ϰϭϵϭϰϳ͕ϵϲϰϯ͘ϯй Edh'dϭ͕Ϭϯϲ͕ϰϴϮ ϭ͕ϰϮϯ͕ϱϬϵ ϭ͕ϯϰϮ͕Ϯϱϵ ϭ͕ϵϯϵ͕Ϯϲϭ ϭ͕ϰϳϵ͕ϰϴϯϭϯϳ͕ϮϮϰϵ͘ϯй Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 1 Page 8 of 10 ϮϬϭϲ ϮϬϭϳ ϮϬϭϴϮϬϭϵ ϮϬϭϵϮϬϭϵ&ĐƐƚǀƐ ϮϬϭϵ&ĐƐƚǀƐ&ƵůůzĞĂƌ &ƵůůzĞĂƌ &ƵůůzĞĂƌƉƉƌŽǀĞĚ &ŽƌĞĐĂƐƚϮϬϭϴĐƚƵĂů ϮϬϭϴĐƚƵĂůsĂƌŝĂŶĐĞǆƉůĂŶĂƚŝŽŶĐƚƵĂůƐ ĐƚƵĂůƐ ĐƚƵĂůƐƵĚŐĞƚ ƚŽzĞĂƌͲĞŶĚ/ŶĐƌĞĂƐĞͬ;ĞĐƌĞĂƐĞͿ /ŶĐƌĞĂƐĞͬ;ĞĐƌĞĂƐĞͿZsEh͗ϯͲϭϮϬϭKd,Z;Ϯϯ͕ϭϮϮͿ ϯϴϴ ;ϲ͕ϯϳϴͿ;ϭϱ͕ϬϬϬͿ ;ϵ͕ϵϯϵͿϯ͕ϱϲϭϯϱ͘ϴйϯͲϭϮϬϮ'EZ>Ͳ ;ϵϯ͕ϴϲϯͿ ;ϲϯ͕ϳϱϯͿͲ ;ϱϮ͕ϰϴϬͿ;ϭϭ͕ϮϳϯͿ;Ϯϭ͘ϱйͿϯͲϭϯϯϮ>^^;ϭϴϯ͕ϮϬϮͿ ;ϭϳϵ͕ϱϰϳͿ ;ϭϴϯ͕ϰϯϯͿ;ϮϮϴ͕ϵϰϱͿ ;ϮϮϴ͕ϵϰϲͿϰϱ͕ϱϭϯ ϭϵ͘ϵй/ŶĐƌĞĂƐĞĚƵĞƚŽƌŵŽƵƌǇůĞĂƐĞŝŶϮϬϭϵ͘ϯͲϭϴϬϯKd,Z'ZEd^ͲͲ ;ϯϱϬͿͲͲ;ϯϱϬͿͲ ϯͲϭϵϮϱ>'͕&hZEΘ&/yZΘZZ^ZsKEdΖEͲͲͲ;ϰϲ͕ϱϯϮͿ ;ϰϲ͕ϱϯϮͿϰϲ͕ϱϯϮ ϭϬϬ͘Ϭй&ĂĐŝůŝƚǇĂƉŝƚĂůWƌŽũĞĐƚŽŽƌĚŝŶĂƚŽƌĨƵŶĚŝŶŐ͘ϯͲϭϵϮϵdyZd^d/>/d/KEKEdZ/hd/KEͲͲͲ;ϯϰ͕ϴϬϬͿ ;ϯϰ͕ϴϬϬͿϯϰ͕ϴϬϬ ϭϬϬ͘ϬйƌĂǁĨŽƌƐƚĂďŝůŝǌĂƚŝŽŶŽĨƌŵŽƵƌǇĐŽƐƚƐ͘dŽƚĂůZĞǀĞŶƵĞ ;ϮϬϲ͕ϯϮϰͿ ;Ϯϳϯ͕ϬϮϮͿ ;Ϯϱϯ͕ϵϭϰͿ ;ϯϮϱ͕ϮϳϳͿ ;ϯϳϮ͕ϲϵϳͿϭϭϴ͕ϳϴϯ ϯϭ͘ϵйyWE^͗ϰͲϮϬϬϬ^>Z/^Ͳ&ͬdϭ͕ϰϳϴ͕ϯϲϯ ϭ͕ϱϲϴ͕ϮϰϬ ϭ͕ϲϬϯ͕ϯϳϲϭ͕ϲϲϳ͕ϵϲϱ ϭ͕ϲϱϳ͕ϯϵϰϱϰ͕Ϭϭϴϯ͘ϯй ϰͲϮϬϬϭ^>Z/^ͲKͬdϱϳ͕ϰϭϲ ϲϬ͕Ϯϴϵ ϵϯ͕ϭϮϳϯϱ͕ϰϵϴ ϲϵ͕ϲϲϭ;Ϯϯ͕ϰϲϲͿ ;ϯϯ͘ϳйͿŽǀĞƌĂŐĞƚŽŽĨĨƐĞƚĨƵůůͲƚŝŵĞĂďƐĞŶĐĞƐǁĂƐŚŝŐŚĞƌŝŶϮϬϭϴ͘ϰͲϮϬϬϮ^>Z/^ͲWͬdϯϵϭ͕ϱϯϵ ϯϲϬ͕Ϭϯϲ ϰϮϯ͕ϯϭϮϰϭϰ͕ϲϱϴ ϰϰϱ͕ϱϯϵϮϮ͕ϮϮϳϱ͘Ϭй ϰͲϮϬϬϯsd/KEWzϭϭ͕ϭϴϬͲͲͲͲͲͲϰͲϮϬϬϰ^/<Wzϯ͕ϯϭϱͲͲͲͲͲͲϰͲϮϬϵϬzZEZh>^ϭϱ͕ϯϮϭ ;ϳ͕ϯϴϬͿ ;ϰ͕ϰϮϰͿͲ ;ϵ͕ϴϬϬͿ;ϱ͕ϯϳϲͿ;ϱϰ͘ϵйͿϰͲϮϭϬϬE&/d^ͲKDZ^ϭϲϳ͕ϵϲϰ ϭϲϵ͕ϵϯϵ ϭϳϯ͕ϰϭϭϭϲϬ͕Ϯϯϳ ϭϳϴ͕Ϭϯϱϰ͕ϲϮϰ Ϯ͘ϲй ϰͲϮϭϬϭE&/d^Ͳ,dϯϴ͕ϴϭϮ ϯϳ͕ϵϲϴ ϰϬ͕ϱϬϴϯϵ͕ϵϯϴ ϰϮ͕ϱϵϲϮ͕Ϭϴϴ ϰ͘ϵй ϰͲϮϭϬϮE&/d^Ͳt^/ϭϰ͕ϯϳϵ ϭϰ͕ϯϱϴ ϭϱ͕ϰϴϯϭϱ͕ϯϲϭ ϭϲ͕ϯϱϴϴϳϱ ϱ͘ϯй ϰͲϮϭϬϯE&/d^ͲWWϳϰ͕ϰϳϯ ϳϯ͕ϵϬϵ ϴϮ͕ϰϭϬϴϯ͕ϴϮϬ ϴϳ͕Ϭϰϵϰ͕ϲϯϵ ϱ͘ϯй ϰͲϮϭϬϰE&/d^Ͳ/ϰϭ͕ϲϰϱ ϯϱ͕ϳϰϰ ϰϬ͕ϮϲϰϰϬ͕ϲϲϭ ϰϭ͕ϬϵϮϴϮϴ Ϯ͘Ϭй ϰͲϮϭϬϱE&/d^ͲEd>ϯϬ͕ϴϯϲ ϯϮ͕ϱϴϵ ϯϮ͕ϲϴϴϰϮ͕ϴϴϬ ϯϰ͕ϰϳϰϭ͕ϳϴϲ ϱ͘Ϯй ϰͲϮϭϬϲE&/d^Ͳ,>d,ϱϳ͕ϵϴϵ ϲϮ͕ϴϲϲ ϲϭ͕Ϭϲϴϳϱ͕Ϭϴϲ ϲϮ͕ϯϳϲϭ͕ϯϬϴ Ϯ͘ϭй ϰͲϮϭϬϳE&/d^Ͳ>dͬϮϮ͕Ϯϵϯ Ϯϰ͕ϯϲϬ Ϯϵ͕ϯϲϱϯϮ͕ϱϮϴ ϯϬ͕ϮϬϲϴϰϭ Ϯ͘ϴй ϰͲϮϭϬϴE&/d^ͲKd,Zϲ͕ϯϵϮ ϭϰ͕Ϯϯϭ ϳ͕ϲϰϬϴ͕ϰϬϱ ϳ͕ϯϳϮ;ϮϲϴͿ ;ϯ͘ϲйͿ ϰͲϮϮϬϬt'ZKsZz;ϳϲϱͿͲ;ϵϮͿͲͲϵϮͲ dKd>^>Z/^ΘE&/d^Ϯ͕ϰϭϭ͕ϭϱϮ Ϯ͕ϰϰϳ͕ϭϰϵ Ϯ͕ϱϵϴ͕ϭϯϲ Ϯ͕ϲϭϳ͕Ϭϯϳ Ϯ͕ϲϲϮ͕ϯϱϮϲϰ͕ϮϭϲϮ͘ϰй ϰͲϰϬϬϬK&&/^hWW>/^ϭ͕ϯϵϭϰϮϲ ϭ͕ϰϵϮϯ͕ϬϬϬ ϭ͕ϲϱϬϭϱϴϵ͘ϲй ϰͲϰϬϬϵ^&dz^hWW>/^ϴϲϵϳϬϱϯϲϯ͕ϬϬϬϴϰϵϯϭϯϯϲ͘ϵйϰͲϰϬϭϬ>Kd,/E'>>KtEϭϴ͕ϲϱϮ ϭϱ͕ϮϮϭ ϭϳ͕ϵϮϮϮϬ͕ϬϬϬ ϭϲ͕ϵϰϮ;ϵϴϬͿ ;ϱ͘ϴйͿ ϰͲϰϬϭϭ>E/E'^hWW>/^Ϯϵ ϭ͕ϯϭϬͲͲͲͲͲϰͲϰϬϭϯhd/>/d/^ϭ͕ϴϬϱ͕ϴϴϲ ϭ͕ϴϳϵ͕ϲϭϯ ϭ͕ϲϴϱ͕ϵϳϮϮ͕ϬϬϵ͕ϳϳϳ ϭ͕ϴϰϬ͕ϳϳϵϭϱϰ͕ϴϬϳϴ͘ϰй ϰͲϰϬϭϰ,d/E'&h>Ϯϵϭ͕ϭϬϳ ϯϱϰ͕Ϭϭϯ ϯϲϰ͕ϲϴϱϰϭϴ͕ϳϬϬ ϯϰϴ͕ϰϭϵ;ϭϲ͕ϮϲϲͿ ;ϰ͘ϳйͿ ϰͲϰϬϭϱKWZd/E'DdZ/>^ϮϲϬ͕ϬϮϯ ϮϮϯ͕ϳϴϮͲϮ͕ϮϬϬϳϬϬϳϬϬϭϬϬ͘ϬйϰͲϰϬϭϴ>/E^^Ϯ͕ϰϲϰ ϯ͕ϯϳϰ Ϯ͕ϵϲϴϰ͕ϱϬϬ ϯ͕ϲϬϬϲϯϮϭϳ͘ϲйϰͲϰϬϭϵs,/>^hWW>/^ϭϰ͕ϵϴϰ ϭϮ͕ϭϴϲ ϭϯ͕ϱϳϬϭϰ͕ϬϬϬ ϭϰ͕ϮϲϬϲϵϬ ϰ͘ϴй ϰͲϰϬϮϭYh/WDEdͲKd,Zϲ͕ϯϱϴ Ϯ͕ϬϱϮϭϴϰϭ͕ϬϬϬϱϭ;ϭϯϯͿ;ϮϲϬ͘ϴйͿϰͲϰϬϮϮdKK>^ϰ͕ϳϵϬϮϵϭ ϭ͕ϴϴϲϰ͕ϱϬϬ ϯ͕ϵϮϭϮ͕Ϭϯϱϱϭ͘ϵйϰͲϰϬϮϴK^dZ>>Kd/KE^;ϭϳ͕ϴϱϬͿ ;ϱϬ͕ϬϬϬͿͲͲͲͲͲϰͲϰϬϰϬh/>/E'^hWW>/^ϲ͕ϮϱϬͲ ϭϱ͕ϵϲϴϭϳ͕ϱϬϬ ϭϲ͕ϬϱϴϵϬϬ͘ϲй ϰͲϰϬϰϱDhE//W>h^/E^^ͲͲϯϱϳϰϱϬϰϱϬϵϯϮϬ͘ϳйϰͲϰϬϳϬKWZd/E'DdZ/>^ͲͲ ϭϰ͕ϲϮϵϭϱ͕ϬϬϬ ϭϵ͕ϯϰϱϰ͕ϳϭϲϮϰ͘ϰйϰͲϰϬϳϭKWZd/E'DdZ/>^ZEͲͲ ϭϭ͕ϵϱϲϭϳ͕ϬϬϬ ϭϭ͕ϯϬϴ;ϲϰϴͿ;ϱ͘ϳйͿ ϰͲϰϬϳϮKWZd/E'DdZ/>^dZ/E'ͲͲ ϰ͕ϭϳϰϰ͕ϬϬϬ Ϯ͕ϵϭϰ;ϭ͕ϮϲϬͿ;ϰϯ͘ϮйͿϰͲϰϬϳϯKWZd/E'DdZ/>^,ZtZΘdKK>^ͲͲ ϳ͕ϲϮϱϭϴ͕ϵϱϬ Ϯϳ͕ϴϯϴϮϬ͕ϮϭϯϳϮ͘ϲйZĞĚƵĐĞĚƚŚĞďƵĚŐĞƚŝŶϮϬϭϵďĂƐĞĚŽŶϮϬϭϴƐƉĞŶĚĂŶĚĞŶĚĞĚƵƉŐŽŝŶŐŽǀĞƌŝŶƚŚŝƐĂĐĐŽƵŶƚ͘ůƐŽƐŽŵĞĞǆƉĞŶƐĞƐĂƌĞƌĞůĂƚĞĚƚŽƚŚĞƌŵŽƵƌǇ͘ϰͲϰϬϳϰKWZd/E'DdZ/>^K&&/&hZE/dhZͲͲ ϱ͕ϲϲϵϭϭ͕ϱϬϬ ϲ͕ϮϮϲϱϱϳϴ͘ϵй ϰͲϰϬϳϱKWZd/E'DdZ/>^WZd^ͲͲ ϭϮ͕ϮϱϯϭϮ͕ϬϬϬϱϱϰ;ϭϭ͕ϲϵϵͿ;Ϯ͕ϭϭϭ͘ϳйͿϰͲϰϬϳϲKWZd/E'DdZ/>^WKK>ͲͲ ϰϭ͕ϰϳϴϯϭ͕ϬϬϬ ϰϵ͕ϵϬϵϴ͕ϰϯϭϭϲ͘ϵйϰͲϰϬϳϳKWZd/E'DdZ/>^Zz>/E'ͲͲ ϲ͕ϱϵϳϭϯ͕ϭϬϬ ϭ͕ϰϯϴ;ϱ͕ϭϱϵͿ;ϯϱϴ͘ϴйͿϰͲϰϬϳϴKWZd/E'DdZ/>^^/'E^ͲͲ ϳ͕ϳϬϲϵ͕ϵϬϬ ϳ͕ϭϴϳ;ϱϭϵͿ;ϳ͘ϮйͿ ϰͲϰϬϳϵKWZd/E'DdZ/>^d>KDDhE/d/KE^ͲͲϳϬϮϲ͕ϵϬϬͲ;ϳϬϮͿͲ ϰͲϰϬϴϬKWZd/E'DdZ/>^h/Kͬs/KͲͲ ϴ͕ϱϯϴϭϬ͕ϵϬϬ ϴ͕ϲϰϭϭϬϯϭ͘Ϯй ϰͲϰϬϴϭKWZd/E'DdZ/>^>dZ/>^>hWW>zͲͲ ϭϰ͕ϴϴϭϭϱ͕ϳϱϬ ϴ͕ϴϳϲ;ϲ͕ϬϬϱͿ;ϲϳ͘ϳйͿϰͲϰϬϴϮKWZd/E'DdZ/>^>K<^͕KKZ^Θt/EKt^ͲͲ ϯ͕ϲϮϮϳ͕ϱϬϬ ϲ͕ϱϯϴϮ͕ϵϭϲϰϰ͘ϲйϰͲϰϬϴϯKWZd/E'DdZ/>^W/Ed/E'^hWW>/^ͲͲ ϲ͕ϵϮϳϭϮ͕ϰϬϬ ϭϬ͕ϭϳϵϯ͕ϮϱϮϯϭ͘ϵйϰͲϰϬϴϰKWZd/E'DdZ/>^W^dKEdZK>ͲͲ ϭ͕ϭϳϬϯ͕ϴϱϬ ϯ͕ϯϯϯϮ͕ϭϲϯϲϰ͘ϵйϰͲϰϬϴϱKWZd/E'DdZ/>^:E/dKZ/>^hWW>zͲͲ ϲϳ͕ϳϱϭϱϳ͕ϰϱϬ ϲϴ͕ϰϰϴϲϵϳϭ͘Ϭй ϰͲϱϬϮϭDK/>W>E,Z'^ͲͲ ϵ͕ϮϵϯϭϬ͕ϯϯϮ ϭϱ͕ϴϭϯϲ͕ϱϮϬϰϭ͘ϮйϰͲϱϬϮϳDEdKZzKhZ^^Θ^D/EZ^ϱ͕ϵϱϬ ϳ͕ϭϯϯ ϭϭ͕ϰϭϮϭϰ͕ϬϬϬ ϭϰ͕ϰϳϮϯ͕ϬϲϬϮϭ͘ϭйϰͲϱϬϮϴDDZ^,/W^ϯ͕ϲϮϮ Ϯ͕ϯϮϴ Ϯ͕ϴϴϴϯ͕ϳϬϬ ϯ͕ϲϬϮϳϭϰϭϵ͘ϴйϰͲϱϬϮϵD/>'Ϯ͕ϭϬϮ ϭ͕ϳϯϬ ϭ͕ϲϲϬϮ͕ϱϬϬ Ϯ͕ϭϲϮϱϬϮϮϯ͘ϮйϰͲϱϬϯϱYh/WDEd^Zs/KEdZd^ϴϵ͕ϱϯϮ ϵϰ͕ϬϭϰͲͲͲͲͲϰͲϱϬϯϲKDWZ^^KZZW/Z^ϰϱ͕ϱϱϴ ϭϮϯ͕ϬϭϲͲͲͲͲͲFinance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 1 Page 9 of 10 ϮϬϭϲ ϮϬϭϳ ϮϬϭϴϮϬϭϵ ϮϬϭϵϮϬϭϵ&ĐƐƚǀƐ ϮϬϭϵ&ĐƐƚǀƐ&ƵůůzĞĂƌ &ƵůůzĞĂƌ &ƵůůzĞĂƌƉƉƌŽǀĞĚ &ŽƌĞĐĂƐƚϮϬϭϴĐƚƵĂů ϮϬϭϴĐƚƵĂůsĂƌŝĂŶĐĞǆƉůĂŶĂƚŝŽŶĐƚƵĂůƐ ĐƚƵĂůƐ ĐƚƵĂůƐƵĚŐĞƚ ƚŽzĞĂƌͲĞŶĚ/ŶĐƌĞĂƐĞͬ;ĞĐƌĞĂƐĞͿ /ŶĐƌĞĂƐĞͬ;ĞĐƌĞĂƐĞͿϰͲϱϬϯϳWZKWZdz/DWZKsDEdͲϭϯϵͲͲͲͲͲϰͲϱϬϯϴh/>/E'ZW/ZΘD/EdEEϯϵϱ͕ϭϵϱ ϰϴϬ͕ϳϳϯϯϱϲͲͲ;ϯϱϲͿͲ ϰͲϱϬϱϵKEdZd^ϴϰϬ͕Ϭϭϭ ϲϱϲ͕ϵϳϭ ϭ͕ϬϵϲϮϳϳ͕ϱϬϬ Ϯϳϳ͕ϱϳϭϮϳϲ͕ϰϳϱ ϵϵ͘ϲйEĞǁďƵĚŐĞƚƐĨŽƌƌŵŽƵƌǇĂŶĚ>ŝďƌĂƌǇ^ƋƵĂƌĞŝŶϮϬϭϵ͘ϰͲϱϬϲϬK^dZKsZzͲͲͲ;ϱϬ͕ϬϬϬͿ ;ϱϬ͕ϬϬϬͿ;ϱϬ͕ϬϬϬͿ ;ϭϬϬ͘ϬйͿŽƐƚƌĞĐŽǀĞƌǇĨŽƌ^ĐĂŶůŽŶƵŝůĚŝŶŐŵŽǀĞĚƚŽŽƌƉŽƌĂƚĞĐĐŽƵŶƚƐŝŶϮϬϭϴ͘dŚĞϮϬϭϵĂŵŽƵŶƚŝƐĨŽƌdĞŶŶŝƐŽŵĞ,ǇĚƌŽZĞĐŽǀĞƌǇ͘ϰͲϱϬϲϯt^d/^WK^>&ϯϯ͕ϴϱϬ ϯϯ͕ϴϱϬ ϯϯ͕ϴϱϬϯϰ͕ϱϬϬ ϰϳ͕ϴϰϳϭϯ͕ϵϵϳϮϵ͘ϯйϰͲϱϮϬϮYh/W^ZsKEdZd^ZEͲͲͲϲ͕ϬϬϬ ϰ͕ϱϬϬϰ͕ϱϬϬϭϬϬ͘ϬйϰͲϱϮϬϯYh/W^ZsKEdZd^dZ/E'Yh/WͲͲͲϴ͕ϭϬϬ ϱ͕ϬϬϬϱ͕ϬϬϬϭϬϬ͘ϬйϰͲϱϮϬϰYh/W^ZsKEdZd^,tZΘdKK>^ͲͲͲϭ͕ϮϬϬ ϴϬϬϴϬϬϭϬϬ͘ϬйϰͲϱϮϬϱYh/W^ZsKEdZd^WKK>ͲͲ ϭ͕Ϯϯϴϴ͕ϬϬϬ ϱ͕ϬϬϬϯ͕ϳϲϮϳϱ͘ϮйϰͲϱϮϬϲYh/W^ZsKEdZd^Zz>/E'dh^ͲͲͲϱ͕ϱϬϬ Ϯ͕ϳϱϬϮ͕ϳϱϬϭϬϬ͘ϬйϰͲϱϮϬϳYh/W^ZsKEdZd^d>KDDhE/d/KE^ͲͲ ϯϬ͕ϱϵϵϯϯ͕ϬϬϬ Ϯϱ͕ϴϵϱ;ϰ͕ϳϬϰͿ;ϭϴ͘ϮйͿϰͲϱϮϬϴYh/W^ZsKEdZ^h/Kͬs/KͲͲϯϬϱϵ͕ϱϬϬ ϳ͕ϮϱϬϲ͕ϵϰϱϵϱ͘ϴйϰͲϱϮϬϵYh/W^ZsKEdZd^>dZ/>ͲͲ ϵ͕ϵϳϴϯϬ͕ϲϬϬ ϭϳ͕ϵϴϭϴ͕ϬϬϯϰϰ͘ϱйϰͲϱϮϭϬYh/W^ZsKEdZd^>E/E'Kd,ZͲͲ ϰ͕ϬϵϰϭϬ͕ϬϬϬ ϱ͕ϯϮϱϭ͕ϮϯϭϮϯ͘ϭйϰͲϱϮϭϭYh/W^ZsKEdZd^^hZ/dzͲͲͲϭϯ͕ϳϭϭ ϳ͕ϳϱϬϳ͕ϳϱϬϭϬϬ͘ϬйϰͲϱϯϬϬKDWZ^^KZZW/Z^KEdZdͲͲ ϮϮ͕ϲϵϴϯϮ͕ϴϱϬ ϴϱ͕ϵϭϯϲϯ͕Ϯϭϱϳϯ͘ϲй/ŶĐƌĞĂƐĞĚƌĞƉĂŝƌƐ͕ďƵƚŽĨĨƐĞƚďǇƐĂǀŝŶŐƐŝŶƚŚĞďƵĚŐĞƚůŝŶĞďĞůŽǁ͘ϰͲϱϯϬϭKDWZ^^KZZWZ/^ZΘDͲͲ ϱϰ͕ϯϳϬϱϬ͕ϭϱϬ ϳ͕ϳϰϱ;ϰϲ͕ϲϮϱͿ;ϲϬϮ͘ϬйͿ^ĂǀŝŶŐƐŝŶƚŚŝƐůŝŶĞĨŽƌŽǀĞƌĂŐĞŝŶƚŚĞůŝŶĞĂďŽǀĞ͘ϰͲϱϰϬϬ>'ZΘDͲͲ ϯϯ͕ϯϳϲϭϳ͕ϵϬϬ ϱ͕ϳϳϵ;Ϯϳ͕ϱϵϳͿ;ϰϳϳ͘ϱйͿ>ĞƐƐƚŚĂŶĂŶƚŝĐŝƉĂƚĞĚƌĞƉĂŝƌƐĂŶĚĞǆƉĞŶƐĞƐŝŶϮϬϭϵ͘ϰͲϱϰϬϭZΘDZEͲͲ ϱϱ͕ϬϬϯϯϴ͕ϱϬϬ ϯϴ͕ϵϳϮ;ϭϲ͕ϬϯϭͿ;ϰϭ͘ϭйͿϰͲϱϰϬϮZΘDWKK>ͲͲ ϭϭ͕ϯϵϯϮϲ͕ϱϬϬ Ϯϰ͕ϰϱϮϭϯ͕Ϭϱϵϱϯ͘ϰйϰͲϱϰϬϯZΘD'EZdKZͲͲ ϭϭ͕ϯϰϯϭϱ͕ϱϬϬ ϭϵ͕ϭϮϵϳ͕ϳϴϲϰϬ͘ϳйϰͲϱϰϬϰZΘD>/&^&dzͲͲ ϭϲ͕ϲϬϳϭϭ͕ϳϬϬ ϭϮ͕ϭϵϱ;ϰ͕ϰϭϮͿ;ϯϲ͘ϮйͿϰͲϱϰϬϱZΘD>K<^͕KKZ^Θt/EKt^ͲͲ ϲϱ͕ϳϭϵϰϯ͕ϵϱϬ ϳϯ͕ϮϮϱϳ͕ϱϬϲϭϬ͘ϯйϰͲϱϰϬϲZΘDW/Ed/E'ͬKEdZdKZͲͲ ϵ͕ϴϲϭϭϲ͕ϱϬϬ ϵ͕ϵϲϯϭϬϮϭ͘Ϭй ϰͲϱϰϬϳZΘDW>hD/E'ͲͲ ϴϰ͕Ϭϭϴϱϴ͕ϳϬϬ ϱϱ͕ϲϰϭ;Ϯϴ͕ϯϳϳͿ;ϱϭ͘ϬйͿϮϬϭϴŚĂĚŚŝŐŚĞƌĞǆƉĞŶƐĞƐƚŚĂŶϮϬϭϵďƵĚŐĞƚƚŽĂĐƚƵĂůƐ͘ϰͲϱϰϬϴZΘDZKK&/E'ͲͲ ϭϬ͕ϯϱϬϮϱ͕ϱϬϬ Ϯϲ͕ϲϮϴϭϲ͕Ϯϳϴϲϭ͘ϭйϰͲϱϰϬϵZΘDDKE/dKZ/E'ͲͲϲϴϴ͕ϳϬϬϯϮϮϮϱϰϳϴ͘ϵйϰͲϱϰϭϬZΘD>dZ/>ͲͲ ϳϯ͕ϲϮϭϲϯ͕ϮϬϬ ϵϭ͕ϰϰϭϭϳ͕ϴϮϬϭϵ͘ϱйϰͲϱϰϭϭZΘD>sdKZͲͲ ;ϳ͕ϳϵϯͿϯ͕ϱϬϬ ϭ͕ϬϬϬϴ͕ϳϵϯϴϳϵ͘ϯйϰͲϱϰϭϮZΘD,sͲͲ ϭ͕Ϭϵϴϳϴ͕ϮϬϬ ϳϲ͕ϰϰϯϳϱ͕ϯϰϱϵϴ͘ϲйϮϬϭϴŚĂĚůŽǁĞƌĞǆƉĞŶƐĞƐƚŚĂŶϮϬϭϵ͘ϮϬϭϵƵĚŐĞƚƚŽĐƚƵĂůƐĂƌĞŽŶƚƌĂĐŬ͘ϰͲϱϰϭϯZΘD,s^ͲͲ ϰϭ͕ϯϬϭϰϳ͕ϬϬϬ ϰϳ͕ϴϵϭϲ͕ϱϵϬϭϯ͘ϴйϰͲϱϰϭϰZΘD,stdZdZdDEdͲͲϳϰϴ͕ϱϬϬ ϰ͕ϮϱϬϰ͕ϭϳϲϵϴ͘ϯйϰͲϱϰϭϱZΘD^hZ/dzͲͲ ϭϯ͕ϵϬϲϭϭ͕ϴϬϬ ϮϮ͕Ϭϭϲϴ͕ϭϭϬϯϲ͘ϴйϰͲϱϱϬϭKEdZd^'EZdKZͲͲͲϲ͕ϮϬϬ ϯ͕ϬϬϬϯ͕ϬϬϬϭϬϬ͘ϬйϰͲϱϱϬϮKEdZd^>/&^&dzͲͲ ϯϵ͕ϮϮϳϯϱ͕ϳϳϬ ϲϳ͕ϰϳϴϮϴ͕Ϯϱϭϰϭ͘ϵйKǀĞƌĂŐĞŝŶƚŚŝƐůŝŶĞŝƐŽĨĨƐĞƚďǇƵŶƐƉĞŶƚĨƵŶĚƐŝŶϰͲϱϱϬϰĚƵĞƚŽŝŶĐŽƌƌĞĐƚ'>ĐŽĚŝŶŐ͘ϰͲϱϱϬϯKEdZd^W^dKEdZK>ͲͲ ϭ͕ϰϱϮϱ͕ϬϬϬϲϯϱ;ϴϭϳͿ;ϭϮϴ͘ϳйͿϰͲϱϱϬϰKEdZd^DKE/dKZ/E'ͲϮϰϰ ϯϰ͕ϱϰϮϯϰ͕ϬϲϬ ϭϯ͕ϵϳϱ;ϮϬ͕ϱϲϳͿ;ϭϰϳ͘ϮйͿ^ĞĞϰͲϱϱϬϮĂďŽǀĞ͘ϰͲϱϱϬϱKEdZd^>E/E'ͲͲ ϰϯϯ͕ϯϴϰϰϳϰ͕ϮϬϬ ϰϵϬ͕ϲϰϴϱϳ͕Ϯϲϰϭϭ͘ϳйĚĚŝƚŝŽŶĂůĐůĞĂŶŝŶŐĂƚƚŚĞƌŵŽƵƌǇĂŶĚϯƌĚ&ůŽŽƌ:K͘ϰͲϱϱϬϲKEdZd^>sdKZͲͲ ϱϭ͕ϱϭϭϯϲ͕ϬϬϬ Ϯϳ͕ϰϴϱ;Ϯϰ͕ϬϮϲͿ;ϴϳ͘ϰйͿϮϬϭϴŚĂĚŚŝŐŚĞƌĞǆƉĞŶƐĞƐƚŚĂŶϮϬϭϵďƵĚŐĞƚƚŽĂĐƚƵĂůƐ͘ϰͲϱϱϬϳKEdZd^,sWZsDdͲͲ Ϯϭϱ͕ϵϭϭϭϯϵ͕ϮϱϬ Ϯϲϳ͕ϱϵϬϱϭ͕ϲϳϵϭϵ͘ϯйϮϬϭϵŚĂĚŚŝŐŚĞƌĞǆƉĞŶƐĞƐƚŚĂŶϮϬϭϴĚƵĞƚŽƵŶĞǆƉĞĐƚĞĚŚĞĂƚĞǆĐŚĂŶŐĞƌĂŶĚďŽŝůĞƌƌĞƉĂŝƌƐ͘ϰͲϱϱϬϴKEdZd^,s^ͲͲͲͲͲͲͲϰͲϱϱϬϵKEdZd^tdZdZdDEdͲͲ Ϯϱ͕Ϭϱϭϭϴ͕ϭϬϬ ϭϱ͕ϳϰϳ;ϵ͕ϯϬϰͿ;ϱϵ͘ϭйͿϰͲϴϬϬϯKEdZ/hd/KE^dK/^Zd/KEZzZ^Zs^ϰ͕ϵϲϯ ϱϯ͕ϴϯϭϰϮϲϭϴ͕ϯϳϬ ϭϴ͕ϯϳϬϭϳ͕ϵϰϰϵϳ͘ϳйdKd>Kd,ZyWE^^ϯ͕ϴϭϱ͕ϳϯϲ ϯ͕ϴϵϲ͕ϯϲϳ ϯ͕ϳϮϲ͕ϱϬϰ ϰ͕ϰϴϵ͕ϱϳϬ ϰ͕ϯϴϮ͕Ϭϲϰϲϱϱ͕ϱϲϬϭϱ͘ϬйdKd>yWE^^ϲ͕ϮϮϲ͕ϴϴϴ ϲ͕ϯϰϯ͕ϱϭϲ ϲ͕ϯϮϰ͕ϲϰϬ ϳ͕ϭϬϲ͕ϲϬϳ ϳ͕Ϭϰϰ͕ϰϭϲϳϭϵ͕ϳϳϲϭϬ͘ϮйEdh'dϲ͕ϬϮϬ͕ϱϲϰ ϲ͕ϬϳϬ͕ϰϵϰ ϲ͕ϬϳϬ͕ϳϮϲ ϲ͕ϳϴϭ͕ϯϯϬ ϲ͕ϲϳϭ͕ϳϭϵϲϬϬ͕ϵϵϯϵ͘Ϭй Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 1 Page 10 of 10 Town of Aurora Finance Advisory Committee Report No. FAC20-001 Subject: FAC Review of Prudent Investor Regime Prepared by: Laura Sheardown, Financial Management Advisor Department: Finance Date: January 21, 2020 Recommendation 1. That Report No. FAC20-001 be received; and 2. That the Finance Advisory Committee provide staff with feedback regarding the Prudent Investor Regime. Executive Summary This report outlines: • There are several benefits of investing under a Prudent Investor regime • The Legal List of investment options differ significantly from those available as a Prudent Investor under ONE Fund • A comparison of administration costs for legal list, One Fund and the Proposed ONE JIB investments • Each type of investment has a different level of risk associated with them 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. The most cost effective manner through which the Town is able access the Prudent Investor regime is through a Joint Investment Board (JIB) as establishing its own Investment Board is not financially feasible. Currently, there are no joint investment boards in place in Ontario; however, LAS is in the process of establishing province’s first JIB. The Town of Aurora has been invited to join LAS’ ONE JIB as a founding member. As a member of a JIB, the municipality is required to relinquish its control and management of any funds that it does not require immediately to the JIB who will Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 1 of 50 January 21, 2020 Page 2 of 15 Report No. FAC20-001 invest on behalf of the municipality subject to the municipality’s Investment Policy Statement and the overarching portfolio’s investment plan. 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 – provides an outline of the required steps that must be followed in order to implement a PI regime under the Provincial Regulation from ONE Investment. The establishment of ONE JIB involves a three step Council approval process outlined below: • 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 the establishment of the ONE JIB. Once the Initial Formation Agreement is signed by all of the founding municipalities the ONE JIB will hold its inaugural meeting. After the ONE JIB has met and executed the ONE JIB Agreement, its founding municipalities will all also enter into the ONE JIB Agreement. Finally, each of the founding municipalities are required to pass a Prudent Investor Enabling By-law which will officially opt the municipality into the PI regime as at the Prudent Effective Date as set out therein. The Prudent Investor Enabling By-law would be the last step in the municipality’s adoption of 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 investment in accordance with the PI regime. Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 2 of 50 January 21, 2020 Page 3 of 15 Report No. FAC20-001 Currently there are eight municipalities, outlined in the table below, that are actively moving forward together as founding members of the ONE JIB. To create the 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 its Investment Policy Statement which encompasses not only the structure required for the investment of long-term funds under the Prudent Investor regime but also its governing structure for the investment of its short-term funds that will remain under the control of Town Staff. Execution by ONE JIB of the ONE JIB Agreement (after which all the founding municipalities also execute the ONE JIB Agreement) Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 3 of 50 January 21, 2020 Page 4 of 15 Report No. FAC20-001 Analysis There are several benefits of investing under a Prudent Investor regime The Prudent Investor regime expands municipal investment opportunities which may enable better risk-adjusted returns meaning that risk can be carefully balanced with returns. The restrictions placed on Legal List investing can embed concentration risk into the municipal investment portfolio. The diversification of available investment products and the removal of geographic limitations which are only available under the Prudent Investor regime may mitigate concentration risk. Risk Adjusted Returns For municipalities, as stewards of public funds preservation of capital is a key priority that needs to be balanced with the need for returns. Municipal budgets are under tremendous pressure to maximize revenues while minimizing the need for property tax increases. As municipalities seek to diversify revenues to put less pressure on property taxes, investment revenue becomes more important as an underused alternative revenue stream. Figure 2 below demonstrates the effect of “safe investments” on return potential. It shows the percentage returns on a rolling 1-year basis for Canadian stocks (red), Canadian Fixed Income (green) and short- term treasury bills (blue). When a municipality puts a heavy priority on capital preservation, it will often invest in short-term treasury bills, GICs, term deposits, or High Interest Savings Accounts (HISA), which ensures little to no losses due to the lack of volatility. However, you will note from Figure 1 below the low returns on short-term investments which over the 10-year time-period did not even keep up with inflation. Average annual inflation from 2008-2018 was 1.97% using the Consumer Price Index (2.55% using the Non-Residential Building Construction Price Index.) Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 4 of 50 January 21, 2020 Page 5 of 15 Report No. FAC20-001 Figure 2: Rolling 1-Year Returns Across Asset Classes Diversification The Prudent Investor regime will enable the Town to invest in a broader array of investment products facilitating the building of a more diversified investment portfolio. This concept of diversification is one of the basic principles used to reduce overall portfolio risk. Figure 3 shows the risk-mitigating effect of diversification by asset class or product type. The figure looks only at periods when Canadian stock returns fell below negative 5%. Between 2008 and 2018, the Canadian stock markets (red bars) experienced six periods where values declined by greater than 5%; however, in each of those periods fixed income products (green bars) experienced positive returns. If an investor held both Canadian stocks and fixed income during these periods the total decline in stocks would have been partially or potentially fully offset by a positive return on fixed income. -40 -30 -20 -10 0 10 20 30 40 50 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 % Rolling 1-Year Returns September 2008 to February 2019 FTSE TMX Canada 91-Day T-Bill Index FTSE TMX Canada Universe Bond Index S&P/TSX Canadian Composite Index Sources: S&P,FTSE Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 5 of 50 January 21, 2020 Page 6 of 15 Report No. FAC20-001 Figure 3: Offsetting effect of portfolio diversification by asset class Geographical Diversification The Prudent Investor regime would allow the Town to invest in the Global markets. Securities prices in equities and fixed income markets outside of Canada will be influenced by a different set of factors than apply to Canadian securities. Typically, different economic fundamentals and political circumstances drive returns from investments outside of Canada. For this reason, the pattern of returns from Global stocks and fixed income will be differentiated in comparison to returns for Canadian securities, which provides a basis of diversification benefits, which in turn tend to reduce overall portfolio risk. Under the current Legal List, the Town can only buy Canadian equities (which are only available through ONE Investment) which exposes municipalities to the risk of a downturn in the Canadian market. The Canadian economy is highly exposed to global demand for, and the prices of, certain primary commodities (e.g. oil & gas, metals, agriculture, etc.). It is also dependent on exports and trade, particularly with the United States.1 Canadian 1 Source: See remarks of Stephen S. Poloz, Governor, Bank of Canada “Opening Statement”, January 9, 2019 and Bank of Canada Monetary Policy Report July 2019, “Key inputs to the base-case projection.” -30 -20 -10 0 10 Feb 01 -Jan 02 Jun 02 -May 03 Oct 08 -Aug 09 Dec 11 -Jul 12 Aug 15 -Apr 16 Dec 18Average % 1-Year ReturnPeriods When Rolling 1-Year Equity Returns < -5% Canadian Equities Canadian Fixed Income Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 6 of 50 January 21, 2020 Page 7 of 15 Report No. FAC20-001 equity markets represented less than 3% of global equity markets at the end of 2018.2 In looking at historical data (10, 20, and 40-year time periods) using different levels of geographic diversification, investors would have experienced less volatility if they held an asset mix that included both Global and Canadian stocks. Volatility is a common way to measure risk in investments – it represents swings in market value – so the higher the number the less stable the investment3. Figure 4 below shows the volatility of five different levels of geographic mix. The 100% Canadian stock mix was the most volatile, or risky, investment in all three time periods. The least volatile geographic mixes were those that had a combination of Canadian and Global stocks in most instances (See Appendix 2 for more detail on this analysis). Figure 4: Volatility and Geographic Diversification 2 Source: The World Bank. Canadian equity markets had total market capitalization of USD $1.938 Trillion, vs total world market cap of USD $68.654 Trillion. 3 The measure of volatility used throughout this document is standard deviation. 10.7713.6915.3510.0811.8512.839.6612.3713.789.1311.5712.769.2811.3812.4310-YEAR VOLATILITY 20-YEAR VOLATILITY 40-YEAR VOLATILITY IMPACTS OF GEOGRAPHIC DIVERSIFICATION ON RISK (VOLATILITY) OVER THREE DIFFERENT TIME PERIODS 100% Canadian 100% Global 75% Canadian/25% Global 50% Canadian/50% Global 25% Canadian/75% Global Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 7 of 50 January 21, 2020 Page 8 of 15 Report No. FAC20-001 Higher-yield Securities If a municipality can better manage risk through diversification it can use that tool to pursue greater returns by tolerating a greater level of risk over a small portion of its investments. Over a longer period, small differences in returns can have significant impacts. There are two ways to attain higher returns: 1. Identify inefficiencies in the market (i.e., identify mispriced investment opportunities); and 2. Accept a higher level of risk. Portfolio managers often try to identify inefficiencies in the market. They conduct research and analysis to identify investments they believe are incorrectly valued or identify themes that are not correctly reflected in securities prices. They then position their investments accordingly. Changing investment allocations typically is done with the intent to achieve higher returns, but any change in investment allocations also changes the level of risk in the portfolios. It is for this reason that evaluating investments based on return potential alone is not prudent. The Legal List of investment options differ significantly from those available as a Prudent Investor under ONE Fund ONE Investment’s Prudent Investor offerings will be a mix of its current Legal List options and two new funds that will only be available to PI investors – a Global Equity fund and a Global Bond fund. The sample allocation provided is a relatively conservative mix of 80% bonds (fixed income) and 20% stocks (equities). Modelling data provided by ONE Investment and conducted by AON Hewitt show that under these asset allocations at the same risk level (-5.0% worst case annual return), the expected annual return for PI is 1.3% higher than under LL: 4.3% vs 3.2% respectively (Table 1). Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 8 of 50 January 21, 2020 Page 9 of 15 Report No. FAC20-001 Table 1: Modelling expected returns of ONE Offerings Assumed Asset Allocation Weights Legal List Prudent Investor Money Market Portfolio 45% Bond Portfolio 15% 20% Unconstrained Global Bonds 60% Universe Corporate Bond Portfolio 20% Total Fixed Income 80% 80% (Canadian) Equity Portfolio 20% 5% Global Equity 15% Total Equity 20% 20% Expected return 2.90% 3.80% Expected value added by managers 0.30% 0.50% Expected return 3.20% 4.30% Expected worst case annual return ~-5.0% ~-5.0% Because the two new Prudent Investor offerings have an existing client base and track record, it is possible to compare the actual past performance of a Prudent Investor asset allocation to a comparable Legal List asset allocation. Comparing past performance of the funds (figure 5), over a five-year period from 2014 to 2018 the Prudent Investor option would have outperformed the Legal List option in four of the five years. In 2015, the Prudent Investor option would have outperformed Legal List by almost 7%. The average annual difference over the five years would have been a 2.69% in favour of the Prudent Investor option. However, it should be noted that in 2018 the Legal List option would have outperformed Prudent Investor by 0.12%. This demonstrates that moving to Prudent Investor does not guarantee Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 9 of 50 January 21, 2020 Page 10 of 15 Report No. FAC20-001 better returns year over year and that past performance is not always a reliable indicator of future performance. Figure 5: Historical Rates of Return for ONE Investment Offerings (2014-18)4 Staff believe that when taking the projected future modelling results in conjunction with the past performance comparisons, that the Prudent Investor option offers greater opportunity for increased returns while more effectively managing concentration risk. A comparison of administration costs for legal list, ONE Fund and the Proposed ONE JIB Investments Legal List Investments Although the Town does not pay separate management fees, the Investment Brokers through which the Town accesses its legal list investments receive their compensation through the difference between the wholesale rates offered by the banks and credit unions and the intuitional rates that are offered to the Town by the investment brokers. Please note that although investment firms are required to disclose all fees paid to them for retail clients, it is not a requirement for institutional clients, such as the Town. 4 Historical data provided by ONE Investment Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 10 of 50 January 21, 2020 Page 11 of 15 Report No. FAC20-001 ONE Fund The ONE Fund charges its administration costs based upon the value of assets that it is responsible for managing. ONE Joint Investment Board The ONE JIB is still in the process of finalizing its cost recovery framework; however, it is likely to adopt a cost recovery regime in the form of a percentage of managed assets. It is important to note that the ONE JIB will be a non-profit organization, meaning if its total operating costs are $1m, this is the maximum equivalent cost that it will bill its users. Unlike a private equity management firm, no further profit margins will be built into the ONE JIB’s administrative costs. A summary of the estimated administrative costs for each of these modes of investment are presented below. Broker/Investment Fund Basis Points Charged Legal List - Other Town Investment Brokers (charged on rate of return) 3-15 ONE Fund (charged on assets under management) Money Market Portfolio 19 Bond Portfolio 40 Universe Corporate Bond 45 Equity Portfolio 60 ONE JIB Fixed Income Funds 35-45 Canadian Equity 55 Global Equity 75 Founder Discount 4 Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 11 of 50 January 21, 2020 Page 12 of 15 Report No. FAC20-001 Each type of investment has a different level of risk associated with them The below table presents a definition of what a low, medium and high investment risk is as well as some examples of the more common types of investment vehicles that fall under each of these risk categories. In general, the potential rate of return that can be achieved from a given investment vehicle has a direct relationship to the level of risk being taken. Definition of Level of Investment Risk Level of Risk Definition Examples Low A low probability of losing some or all of the funds invested. - Guaranteed Investment Certificates (GIC) - Treasury Bills - Money Market - Government Bonds - Corporate Bonds Medium An increased risk of capital loss over low risk investments. These investments can fluctuate in value more rapidly over short periods of time than low risk investments. - Equity Mutual Funds - Preferred Stocks - Income Mutual Funds High A high probability that some or all of the funds invested could be lost. - Common Stocks - Flow Through Shares Advisory Committee Review Not applicable Legal Considerations Section 450 of the Municipal Act states that a municipality, member of Council or an officer, employee or agent of the municipality is not liable in the exercise or non- exercise of a discretionary power when implementing policy decisions, provided that the exercise or non-exercise of the power, as the case may be, is done in good faith. Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 12 of 50 January 21, 2020 Page 13 of 15 Report No. FAC20-001 Financial Implications The Prudent Investor regime provides municipalities with a new and very different framework through which it may manage the investment of funds that it does not require in the short term. Should a municipality meet the eligibility requirements thus allowing it to implement a prudent investor regime, it is able to access higher risk-adjusted returns over the long-term. In the case of the Town of Aurora, it can only feasibly adopt the PI regime through its participation in joint investment board. As noted previously, any Town funding invested under a Prudent Investor regime will be invested in a prudent manner by professionals who will take great care in projecting the original investment value while maximizing the possible returns that can be made on these monies in an environment where there are many more investment options. Should the Town opt to become a founding member of the ONE JIB, it will be able to share in both the JIBs start-up and on-going operating costs with other founding members making it a much more financially feasible option for the Town. As a founding member, it is also expected to receive a discount in its investment administrative costs which will further mitigate its costs of adopting a prudent investor regime. Other issues for consideration include the loss of control and management in respect of the day-to-day investment decisions relating to cash that is transferred to JIB for its management. Also, of consideration is the fact that there is no guarantee of improved investment returns and that the governance structure in the context of multiple municipalities is untested in Ontario. Communications Considerations There are no Communications considerations beyond posting this report to the Town website. Link to Strategic Plan Investment of the surplus and reserve funds of the Town, contributes to achieving the Strategic Plan guiding principle of ‘Leadership in Corporate Management’ and improves transparency and accountability to the community. Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 13 of 50 January 21, 2020 Page 14 of 15 Report No. FAC20-001 Alternative(s) to the Recommendation 1. Finance Advisory Committee may choose to accept, amend or reject any or all of the recommendations of this report. Conclusions Given the opportunity for risk reduction and greater returns, the PI regime is an opportunity that the Town of Aurora should pursue. ONE Investment is in the process of establishing a ONE JIB which will allow for the costs of set-up to participating municipalities to be significantly minimized. Should the Town of Aurora agree to join the ONE JIB as a founding member, it will be able to not only share the costs of the JIBs establishment with the other founding members, but also share on an on-going basis access to the expert investment and municipal financial advice that is required both by legislation and overall JIB success. As a founding municipality the Town of Aurora would gain access to benefits that it would otherwise not enjoy should it wait and instead join the ONE JIB after it has been established. Attachments Attachment #1: Town of Aurora’s Draft Investment Policy Statement Attachment #2: Impacts of Diversification on Risk Attachment #3: Municipal Investment Questionnaire Previous Reports FS19-029 Prudent Investor FS19-033 Prudent Investor Option Analysis Pre-submission Review Agenda Management Team review on January 10, 2020 Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 14 of 50 Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 15 of 50 13197104.14 INVESTMENT POLICY STATEMENT FOR THE CORPORATION OF THE TOWN OF AURORA (the “Municipality”) JANUARY 21, 2020 Appendix 1 Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 16 of 50 ii 13197104.14 TABLE OF CONTENTS OVERVIEW ................................................................................................................................................. 1 1. GLOSSARY AND DEFINITIONS .................................................................................................... 2 2. PURPOSE AND LEGISLATIVE FRAMEWORK ........................................................................... 5 2.1 Purpose of Policy ........................................................................................................................ 5 2.2 Governing Legislation ................................................................................................................ 6 2.3 Prudent Investor Standard ........................................................................................................ 6 3. MONEY REQUIRED IMMEDIATELY AND MONEY NOT REQUIRED IMMEDIATELY ......... 7 3.1 Determination of MNRI and MRI .............................................................................................. 7 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 .................................................................................................................................... 9 5.1 MRI: Short-Term Funds ............................................................................................................ 9 5.1.1 Short-Term Funds: Investment Objectives .................................................................... 9 5.1.2 Short-Term Funds: Eligible Investments ...................................................................... 10 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 ................................................................................. 12 5.2.4 Long-Term Funds: Local Distribution Corporation (LDC) Securities ........................ 12 5.2.5 Long-Term Funds: Other ................................................................................................. 12 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 ............................................................................................................ 13 5.6.1 Environmental, Social and Governance (ESG) Investing ........................................... 13 5.6.2 Securities Lending ............................................................................................................ 13 5.6.3 Derivatives ......................................................................................................................... 13 5.6.4 Use of Leverage ............................................................................................................... 14 5.6.5 Pooled Funds .................................................................................................................... 14 Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 17 of 50 iii 13197104.14 5.6.6 Currency Hedging ............................................................................................................. 14 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 .............................................. 15 6.2 Flow of Funds Otherwise than through the Budget Process ............................................. 15 6.2.1 Surplus Funds ................................................................................................................... 15 6.2.2 Contingencies ................................................................................................................... 15 6.3 Valuation of Investments ......................................................................................................... 15 6.4 Voting Rights ............................................................................................................................. 16 6.5 Internal Controls ....................................................................................................................... 16 6.6 Custodians ................................................................................................................................. 16 6.7 Reporting ................................................................................................................................... 16 6.7.1 Short-Term Funds ............................................................................................................ 16 6.7.2 Long-Term Funds ............................................................................................................. 17 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 ............................................................................................................................ 18 Appendix I: ONE JIB Agreement .......................................................................................................... 19 Appendix II: ONE External Portfolio Manager Mandates .................................................................. 20 Schedule A Third Party Trust Funds and Designated Funds ........................................................... 21 Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 18 of 50 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-lawunder 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 theinvestment 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. Town of Aurora staff and Council understand that the funds being invested belong to the residents of Aurora. This investment and procedures documentation will ensure that all funds are invested with care, diligence and judgement of a prudent investor with a primary objective of principal preservation while maximizing returns. Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 19 of 50 2 13197104.14 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. 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 Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 20 of 50 3 13197104.14 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. 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. Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 21 of 50 4 13197104.14 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 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 Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 22 of 50 5 13197104.14 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. 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: Ɣ Define and assign responsibilities for investment of MRI and MNRI; Ɣ Describe the Municipality’s responsibilities with respect to third party trust funds and designated funds Ɣ Ensure compliance with the applicable legislation; Ɣ Direct ONE JIB as to the Municipality’s investment goals and risk tolerance; Ɣ Provide guidance and limitations regarding the investments and their underlying risks; Ɣ Establish a basis of evaluating investment performance and the underlying risks; and, Ɣ 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. Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 23 of 50 6 13197104.14 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 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 Municipalitymust consider the following criteria in planning investments of MNRI, in addition to other criteria relevant to the circumstances: Ɣ General economic conditions; Ɣ The possible effect of inflation or deflation; Ɣ The role that each investment plays within the Municipality’s total portfolio of investments; Ɣ The expected total return from income and the appreciation of capital; and Ɣ 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. TheMunicipality’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. Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 24 of 50 7 13197104.14 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: Ɣ the time horizon within which the monies are needed to meet financial obligations Ɣ the purpose for which the monies have been collected or set aside and are to be used Ɣ the source of the money Ɣ 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: Ɣ MRI which is invested in Legal List Securities; and/or Ɣ 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: Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 25 of 50 8 13197104.14 Ɣ Reviewing this IPS; Ɣ Adopting and maintaining an Investment Plan that complies with this IPS; Ɣ Engaging External Portfolio Managers, Custodians, administrators and other investment professionals (Agents); Ɣ Allocating the money and investments under its control and management among External Portfolio Managers; Ɣ Monitoring the performance of the Agents; and, Ɣ Reporting to the Municipality. 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: Ɣ Investment management of MRI and any third party trust funds referenced in Section 2.1 by, or under the direction of, the Treasurer; Ɣ 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, Ɣ 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. Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 26 of 50 9 13197104.14 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 The investment objectives, in the order of priority, for the Municipalityfor Short-Term Funds are: Ɣ 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. Ɣ 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. Ɣ 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. Ɣ 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 Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 27 of 50 10 13197104.14 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 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 Municipalitymay 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: x Preservation of capital; x Adequate liquidity that takes into account the needs of financial obligations and reasonably anticipated budgetary requirements; x Diversification by asset class, market, sector, issuer, credit quality and term to maturity; x Income and capital appreciation; and, x Macro risks, such as inflation, economic growth and interest rates. The Municipalityhas 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 Liquidity not essential,moderate risk tolerance, low to moderate 2 to 10 years Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 28 of 50 11 13197104.14 Reserve Category Objective Risk Tolerance, Liquidity Investment Horizonreplacement of the Municipality’s infrastructure. growth Reserves for New Infrastructure andDevelopment Charges Funds primarily sourced from land development activities. Funds are used to install necessary infrastructure and improvements to maintain our service levels to our growing community. Liquidity not essential,moderate risk tolerance, low to moderate growth 2 to 10 years 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: x ONE Investment High Interest Savings Account; x ONE Canadian Bond Fund; x ONE Canadian Corporate Bond Fund; x ONE Investment Canadian Equity Fund; x ONE Global Unconstrained Bond Fund; and, x ONE Investment Global Equity Fund. Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 29 of 50 12 13197104.14 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 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 byONE 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 Municipalitywill 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 Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 30 of 50 13 13197104.14 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. 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 permittedthrough ONE Investment Program investments only. For the investment of Long-Term Funds, the Municipalitymay 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. Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 31 of 50 14 13197104.14 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. 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 Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 32 of 50 15 13197104.14 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 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 valuesprovided 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. Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 33 of 50 16 13197104.14 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: Ɣ TD Canada Trust Ɣ CIBC Wood Gundy Ɣ BMO Nesbitt Burns Inc. Ɣ RBC Dominion Securities Inc. Ɣ Raymond James Ltd. Ɣ Canaccord Genuity Ɣ 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: Ɣ A statement about the performance of the investments during the period covered by the report; Ɣ 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; Ɣ Listing of all investments by maturity date; Ɣ Percentage of total portfolio that each type of investment represents; and Ɣ Such other information that Council may request, or that the Treasurer may consider pertinent. Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 34 of 50 17 13197104.14 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. Ɣ Investment performance during the period covered by the report; Ɣ Asset mix of the total portfolio; Ɣ 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; Ɣ Dates of all transactions including the purchase and sale prices; Ɣ 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 Ɣ 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. The Treasurer shall provide quarterly to the Finance Advisory Committee a report that includes the following: Ɣ Investment performance for the period covered by the report; Ɣ The current total long term investment portfolio asset mix; Ɣ List of individual investments held as of the end of the reporting period. Where appropriate, the average term to maturity and yield relative to the benchmark/book value/market value, any realized/unrealized gains/losses and actual income received will be included for each individual investment;and Ɣ Any other pertinent information in the opinion of the Treasurer. 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. Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 35 of 50 18 13197104.14 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: Ɣ the adequacy of funding for capital works; Ɣ the Municipality’s ability to reduce other spending; Ɣ flexibility of the timeframe to payout; and Ɣ 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 Tuesday, January 21, 2020 Item 2 Page 36 of 50 13197104.14 Appendix I: ONE JIB Agreement Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 37 of 50 13197104.14 Appendix II: ONE External Portfolio Manager Mandates Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 38 of 50 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 Tuesday, January 21, 2020 Item 2 Page 39 of 50 13422173.2 -1- Appendix 2 – Impacts of Diversification on Risk The following analysis, using data up to February 2019, demonstrates the potential benefits of a diversified approach in the stock markets. The analysis uses the S&P/TSX composite index as a proxy for the performance of the Canadian stock markets and the MSCI World index as a proxy for the performance of the Global stock markets in developed countries. The analysis assumes four different asset mixes (100% Canadian; 100% Global; a 75:25 Canadian to Global ratio; a 50:50 ratio; and a 25:75 Canadian to Global ratio) over three different time periods (10, 20, and 40 years). For each asset mix and time period, the analysis calculates total returns as an annualized percentage, and volatility1 (a common risk measure) as an annualized percentage. The 10-year time frame In the 10-year time frame, the 100% Canadian mix (S&P/TSX) experienced the lowest returns at the highest levels of risk. The 100% Global mix (MSCI World) experienced the highest returns and the second highest levels of risk. As expected, the three diversified asset mixes experienced returns somewhere between the two with greater returns showing for those with a heavier weighting of the Global index. However, all three diversified asset mixes experienced less volatility (risk) during the time-period with the 50:50 asset mix showing the least volatility. The 25:75 Canadian to Global mix yield the highest risk-adjusted return (return divided by risk) at 1.37. For the purposes of comparing to other time-periods, it should be noted that during this 10-year time frame the market did not experience any extreme economic events. Table 4: Risk and return of different equity mixes over a 10-year period (Annualized percentages)100% Canadian 100% Global 75% Canadian / 25% Global 50% Canadian / 50% Global 25% Canadian / 75% Global Return 10.21 13.42 11.10 11.94 12.71 Volatility 10.77 10.08 9.66 9.13 9.28 Risk-adjusted return 0.95 1.33 1.15 1.31 1.37 The 20-year time frame In the 20-year time frame, the 100% Canadian mix experienced both the highest level of returns and the highest level of risk. The 100% Global mix experienced the lowest returns and was in the middle of the asset mixes in terms of risk. In terms of the diversified mixes those that favoured Canadian stocks offered greater returns but also greater levels of risk, whereas those that favoured Global stocks produced lower returns at a lower risk. During this period, the asset mixes that favoured Canadian stocks offered the greatest risk adjusted returns with the 75:25 Canadian to Global mix offering 1 Volatility is measured by standard deviation throughout this document Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 40 of 50 13422173.2 -2- a slightly higher risk adjusted return (0.541) than the 100% Canadian mix (0.538). It should be noted that this period covers the 2008 financial crisis, one of the most significant market collapses since the Great Depression. Additionally, the Global index incorporates US stocks, which were heavily impacted by the 2008 financial crisis. Table 5: Risk and return of different equity mixes over a 20-year period (Annualized percentages)100% Canadian 100% Global 75% Canadian / 25% Global 50% Canadian / 50% Global 25% Canadian / 75% Global Return 7.37 4.25 6.70 5.96 5.14 Volatility 13.69 11.85 12.37 11.57 11.38 Risk-adjusted return 0.54 0.36 0.54 0.52 0.45 The 40-year time frame In the 40-year time frame, the 100% Canadian mix experienced the lowest returns and the highest levels of risk. The 100% Global mix experienced the second-highest level of returns and was in the middle of the asset mixes in terms of risk. Of the three diversified mixes the 25:75 Canadian to Global mix offered both the greatest returns and the lowest level of risk. The mixes that leaned more heavily on Global stocks offered greater returns and lower levels of risk. The diversified mixes that were weighted equally or more heavily toward Global stocks yielded greatest risk adjusted returns. In addition to the financial crisis in 2008, this period also encompasses the dot-com bubble of the mid 1990s to early 2000s, and the high interest rates in the 1980s and volatile oil prices of the 1970s and 80s. Table 6: Risk and return of different equity mixes over a 40-year period (Annualized percentages)100% Canadian 100% Global 75% Canadian / 25% Global 50% Canadian / 50% Global 25% Canadian / 75% Global Return 9.38 9.80 9.64 9.79 9.85 Volatility 15.35 12.83 13.78 12.76 12.43 Risk-adjusted return 0.61 0.76 0.70 0.77 0.79 What we can see from this analysis is that, through each time period, Global diversification generally offered a lower level of risk than relying on Canadian stocks alone. Apart from the 20-year time period, Global diversification also delivered greater rates of return and risk-adjusted returns. The 20-year time period demonstrates that significant economic events in a market can have a noticeable impact on returns but that the level of diversification still offers a lower overall exposure to volatility. Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 41 of 50 13422173.2-3-Figure 6: Risk and Return for different asset mixes over 10, 20, and 40-year time periodFinance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 42 of 50 DRAFT Municipal Client Questionnaire 3DJHRI Recommended Review: Annually. However, if a. there is a significant change in the Municipality’s circumstances (or) b. there is a significant change in reserves/expenses then a review is recommended within three months of the occurrence of such change. 1. CLIENT INFORMATION 1.1 NAME OF MUNICIPALITY: _____________________________________________________________________________________________________________________________________ (Municipality) 1.2 NAME OF THE TREASURER: 1.3 NAME OF PRIMARY DAY-TO-DAY CONTACT**: 1.4 TITLE OF PRIMARY DAY-TO-DAY CONTACT: ____________ 1.5 ADDRESS: d 1.6 PHONE NUMBER OF TREASURER: _____________________________________________________________________________________ 1.7 PHONE NUMBER OF PRIMARY DAY-TO-DAY CONTACT: _______________________________________________________________________________________ 1.8 FAX NUMBER: _______________________________________________________________________________________ 1.9 EMAIL OF TREASURER: ______________________________________________________________________________________________________________________________________ 1.10 E-MAIL OF PRIMARY DAY-TO-DAY CONTACT: ______________________________________________________________________________________________ 1.11 DATE OF PREVIOUS MUNICIPAL CLIENT QUESTIONNAIRE: 1.12 If there have been no material changes to the information contained in the last Municipal Client Questionnaire provided to ONE Investment, indicate here: _______________________________________________________________________________________________________________________________________________________________________ 1.13 Is the Municipality invested under Legal List with ONE Investment? Ƒ Yes Ƒ No 1.14 Is the Municipality invested under Prudent Investor Regime?Ƒ Yes Ƒ No **Primary day-to-day contact should have a comprehensive understanding of the Municipality’s financial position and investment needs. 7RZQ RI $XURUD 5DFKHO :DLQZULJKWYDQ .HVVHO /DXUD 6KHDUGRZQ )LQDQFLDO 0DQDJHPHQW $QDO\VW -RKQ :HVW :D\ $XURUD 21 /* - [ UYDQNHVVHO#DXURUDFD OVKHDUGRZQ#DXURUDFD QD ✔ ✔ Appendix 3 Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 43 of 50 DRAFTMunicipal Client Questionnaire 3DJHRI 1.15 Please provide the following information for all individuals authorized to provide instructions to ONE Investment: NAME TITLE EMAIL 2. INVESTMENT KNOWLEDGE AND EXPERIENCE 2.1. Which statement best describes the Municipality’s level of investment knowledge and experience with financial markets and products? ԐVery limited knowledge ԐBasic knowledge and minimal experience ԐGood knowledge and some investment experience ԐStrong knowledge and experience ԐAdvanced knowledge and extensive experience 2.2 Please confirm that the Municipality is prepared to have exposure to the equity markets in accordance with its IPS and the corresponding Investment Plan. If no such exposure is contemplated, so state. 2.3 Check the following statements that apply to the Municipality’s current investment portfolio? [Check all that apply] ԐCanadian money market securities (e.g. Cash, bank accounts, HISA etc.) ԐLocked In Investments (GIC’s PPN’s etc.) ԐLocal Distribution Corporation Securities (cemetery, trusts, hydro funds etc.) ԐFixed income (government and/or corporate bonds) ԐEquities 5DFKHO :DLQZULJKWYDQ .HVVHO 'LUHFWRU RI )LQDQFH 7UHDVXUHU UYDQNHVVHO#DXURUDFD -DVRQ *DHUWQHU 0DQDJHU )LQDQFLDO 0DQDJHPHQW MJDHUWQHU#DXURUDFD (OL]DEHWK 4XDWWURFLRFFKL 0DQDJHU $FFRXQWLQJ 5HYHQXH HTXDWWURFLRFFKL#DXURUDFD /DXUD 6KHDUGRZQ )LQDQFLDO 0DQDJHPHQW $QDO\VW OVKHDUGRZQ#DXURUDFD ■ <HV ■ ■ ■ ■ Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 44 of 50 DRAFT Municipal Client Questionnaire 3DJHRI 3. INVESTMENT OBJECTIVES AND RISK TOLERANCE This section of the Questionnaire asks about the Municipality’s Money Not Required Immediately (MNRI). In general, investors can expect a higher annualized rate of return if the investor is also willing to accept volatility or fluctuation in the market value of their investments. For example, investors can expect that the average annual rate of return for a five year period will be higher where the portfolio’s returns are varied when measured on a year by year basis, with some years having negative returns. A portfolio which has a steady return year over year, with little possibility of negative returns in any year, will most likely have a lower annualized return when measured on a rolling five year average. 3.1 Which of the following best reflects the Municipality’s investment objectives for its MNRI? ԐCapital preservation is the main objective. Willingness to accept low returns in order to avoid any years with losses. ԐAchieve moderate growth without excessive risk to capital ԐWillingness to accept higher risk, including risk of loss of capital, for potentially higher returns over the longer term 3.2 What is the Municipality’s risk tolerance for its MNRI? ԐLow (Conservative Approach: A very small chance of loss of capital over a 5 year period) ԐModerate (Moderate chance of loss of capital over a 5 year period) ԐHigh (Greater uncertainty with potential of higher returns over a 5 year period) 3.3 Annual Return Expectations: Which range best reflects the Municipality’s expected annual return for its MNRI? Ԑ0% to 2% gain Ԑ5% loss to 5% gain Ԑ10% loss to 10% gain 3.4 Other information: Is there any other information about the Municipality’s investment objectives and risk tolerance for its MNRI that is relevant to the IPS or Investment Plan? _______________________________________________________________________________________________________________________________________________________________________ _______________________________________________________________________________________________________________________________________________________________________ Sections 4 and 5 of this Questionnaire asks about the Municipality’s assets, liabilities and cash flow and is not limited to MNRI. It is intended to assist ONE Investment in obtaining an understanding of the Municipality’s financial circumstances, including its cash flow needs. ■ ■ ■ Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 45 of 50 DRAFTMunicipal Client Questionnaire 3DJHRI 4. FINANCIAL INFORMATION 4.1 Size of Assets and Liabilities Description Amount Total Assets Short Term Assets Long Term Assets Long Term Debt Total Revenues Reserves Reserve Funds Trust Funds Sinking Funds Pension Funds Operating Funds 4.2 Cash Flow Projections by Year (e.g. Revenue Fund, Reserve Fund, Trust Fund etc.) Type 2019 2020 2021 2022 2022-2030 Funding/Expenditure Analysis 4.3 Has the Municipality completed a cash flow analysis? Ƒ Yes Ƒ No Please answer 4.4 through 4.8 if cash flow analysis has been completed by the Municipality. 4.4 How often is a cash flow analysis of reserves, reserve funds and expected expenditures completed by the Municipality? 5 5 )XQGV *URZWK 1HZ )XQGV 6WXGLHV 2WKHU )XQGV ■ Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 46 of 50 DRAFTMunicipal Client Questionnaire 3DJHRI 4.5 Please specify month and year of the last update to the cash flow analysis. 4.6 How confident is your municipality with your current cash flow forecast? Ƒ Very Confident Ƒ Moderately Confident Ƒ Considerable Uncertainty 4.7 How many years did the cash flow analysis forecast extend? Ƒ One year Ƒ Two years Ƒ Three years Ƒ Five years Ƒ Seven years Ƒ 10 years or more 4.8 How sensitive are the expenditures of the municipality to inflation? Does the investment plan need to emphasize sensitivity to inflation? 4.9 How much and how often does the Municipality require funds from the operating reserves? Type of Operating Reserve Amount Needed Frequency 4.10 How does the Municipality manage unanticipated requests for funding? When was the last occurrence and how was it handled? _______________________________________________________________________________________________________________________________________________________________________ _______________________________________________________________________________________________________________________________________________________________________ 4.11 If the Municipality has completed a capital budget and asset management plan, how many years out does this forecast extend? Ƒ Less than 3 years Ƒ 3-5 Years Ƒ 5-10 Years Ƒ 10 years or more 7D[ 5DWH 6WDELOL]DWLRQ YDULHV YDULHV 8QDQWLFLSDWHG UHTXHVWV IRU IXQGLQJ DUH PDQDJHG WKURXJK UHSRUWV WR &RXQFLO GXULQJ WKH \HDU 7KLV KDSSHQV RQ D UHJXODU EDVLV DQG WKH FDVK IORZ QHHGV DUH PDQDJHG WKURXJK WKH PRQLHV UHTXLUHG LPPHGLDWHO\ ■ Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 47 of 50 DRAFT Municipal Client Questionnaire 3DJHRI 4.12 Are the capital reserves growing annually for the Municipality? Ƒ Yes Ƒ No 4.13 If yes, what approximate annual rate are the capital reserves growing by? Ƒ 1 to 2 % Ƒ 3 to 4 % Ƒ Greater than 5 % 4.14 If no, at what approximate annual rate is the Municipality’s capital reserves declining by? Ƒ 1 to 2 % Ƒ 3 to 4 % Ƒ Greater than 5 % 4.15 What annual rate is the Municipality’s capital expenditures rising by? Ƒ 1 to 2 % Ƒ 3 to 4 % Ƒ Greater than 5 % 4.16 Is there a particular year when the Municipality has unusual, large expected capital expenditure(s)? Ƒ Yes Ƒ No 4.17 If so, please explain the timing and nature of the expenditure(s) 4.18 What are the total capital reserves available for investment as the Municipality’s MNRI? Ƒ less than $5 million Ƒ between $5 and $10 million Ƒ between $10 and $20 million Ƒ between $20 and $49 million Ƒ between $50 million and $99 million Ƒ over $100 million 5. PORTFOLIO INFORMATION No. Description Amount ($) 5.1 Total Amount of MNRI 5.2 Total Amount of “Money Required Immediately” - MRI 5.3 MNRI currently invested with ONE Investment 5.4 MRI currently invested with ONE Investment 5.5 Total Amount currently invested with ONE Investment 5.6 Total Locked In portion of MNRI that is not available for investment moving to ONE JIB (e.g. local Hydro company shares) 5.7 Total Locked In portion of funds not moving to ONE JIB due to legislation or other requirements (e.g. cemetery trust) ■ ■ ■ ■ &XOWXUDO &HQWUH 1HZ 5HFUHDWLRQ &HQWUH 1HZ 6LGHZDON JURZWK ■ Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 48 of 50 DRAFTMunicipal Client Questionnaire 3DJHRI 5.8 Please list the name of securities with amounts invested and maturity dates that are not fully liquid (e.g. GIC’s, PPN’s etc.) which will be pledged as part of the Municipality’s Prudent Investor investments (it is contemplated that proceeds from these investments will be transitioned into ONE Investments Prudent Investor pools at maturity or earlier if instructions given to liquidate prior to maturity.) Type/Description Amount Maturity Date 5.9 What percentage of the MNRI portion of the portfolio is required by the Municipality in the following time periods? ( Timeframes can be changed based on the Municipality’s requirement) ___________________________________ ___________________________________ ___________________________________ [@@@@@]to [@@@@@] year: [@@@@@]to [@@@@@]years: [@@@@@]to [@@@@@@] years: More than 10 years: ___________________________________ 6. PORTFOLIO MANAGEMENT AND ASSET ALLOCATION Section 6 of this Questionnaire asks about the Municipality’s existing investment policies, if any. Such policies may apply to MNRI and to MRI. 6.1 Are the Municipality’s investments subject to any prohibited investment or other similar restrictions (Y/N)? If yes, please list: _______________________________________________________________________________________________________________________________________________________________________ 6.2 Are the Municipality’s investments subject to any investment concentration limits? _______________________________________________________________________________________________________________________________________________________________________ *,&V YDULRXV 'HSRVLW 1RWHV YDULRXV &RXSRQV %RQGV YDULRXV 21( )XQG (TXLW\7%' 1R 1R Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 49 of 50 DRAFTMunicipal Client Questionnaire 3DJHRI 6.3 Are the Municipality’s investments subject to any specific diversification requirements? _______________________________________________________________________________________________________________________________________________________________________ 6.4 Please provide here any other restrictions and constraints (i.e. other than as contained in Municipal legislation) relating to the Municipality’s investments: _______________________________________________________________________________________________________________________________________________________________________ 7. ACKNOWLEDGEMENT I confirm that information provided to ONE Investment in this form is complete and accurate as at the date hereof. Dated this _________________ day of ______________________________, 20______ _________________________________________________________ _________________________________________________________ __________________________________________________________ Name and Signature of Treasurer _________________________________________________________ Second Signature (if Required) 1R 1$ Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 2 Page 50 of 50 Finance Advisory Committee: 2020 Updated Work Plan Outline (All meetings currently scheduled for Tuesdays, 5:45 p.m.) January 21, 2020: • ONE Joint Investment Board Participation – Investment Policy Statement • Detailed Budget Review: Community Services (45 minutes) • Review of 2020 FAC workplan. February 11, 2020: • Major Project Update • Discussion of 2021 budget planning framework • Receipt of Planning & Development Services budget materials (review at next meeting) o Identification of specific areas of focus for Planning & Development, if any March 10, 2020: • Major Project Update • Detailed Budget Review: Planning & Development Services (45 minutes) • Internal Audit Plan and process - Introduction • Summary of FAC accomplishments in 2019 • Receipt of Aurora Cultural Centre (ACC) budget materials (review at next meeting) o Identification of specific areas of focus for the ACC, if any April 14, 2020: • Major Project Update • Detailed Budget Review: Aurora Cultural Centre (45 minutes) • Receipt of Finance Department budget materials (review at next meeting) o Identification of specific areas of focus for Finance, if any May 12, 2020: • Detailed Budget Review: Finance Department (45 minutes) • Major Project Update • Open capital project update including open capital project status and actioned project closures Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 3 Page 1 of 2 June 9, 2020: • Major Project Update • Internal audit plan – Update #1 • ONE Joint Investment Board update September 15, 2020: • Major Project Update • Procurement Bylaw review consultation • Receipt of Operational Services budget materials (review at next meeting) o Identification of specific areas of focus for Operational Services, if any October 13, 2020: • Major Project Update • Detailed Budget Review: Operational Services (45 minutes) • 2021 to 2022 Budget Review November 10, 2020: • Major Project Update • Internal audit plan – Update #2 December 8, 2020: • Major Project Update Finance Advisory Committee Meeting Agenda Tuesday, January 21, 2020 Item 3 Page 2 of 2