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AGENDA - Finance Advisory Committee - 20180228 Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018 5:30 p.m. Holland Room Aurora Town Hall Public Release February 21, 2018 Town of Aurora Finance Advisory Committee Meeting Agenda Date: Wednesday, February 28, 2018 Time and Location: 5:30 p.m., Holland Room, Aurora Town Hall 1. Approval of the Agenda Recommended: That the agenda as circulated by Legislative Services be approved. 2. Declarations of Pecuniary Interest and General Nature Thereof 3. Receipt of the Minutes Finance Advisory Committee Meeting Minutes of January 24, 2018 Recommended: That the Finance Advisory Committee meeting minutes of January 24, 2018, be received for information. 4. Delegations 5. Consideration of Items Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018 Page 2 of 3 1. Memorandum from Acting Director, Community Services Re: Pricing Policy for Recreation Services Recommended: 1. That the memorandum regarding Pricing Policy for Recreation Services be received; and 2. That the comments of the Finance Advisory Committee be referred to staff for consideration. 2. Review of Detailed Financial Budget Information Re: Financial Services (FS) Recommended: 1. That the comments and suggestions of the Review of Detailed Financial Budget Information for Financial Services be received and referred to staff for consideration and action as appropriate. 3. Review of Draft General Committee Report No. FS18-004 – 2019 Budget Development Direction Recommended: 1. That Draft General Committee Report No. FS18-004 be received; and 2. That the comments of the Finance Advisory Committee be referred to staff for consideration. 4. Distribution and Introduction of Detailed Financial Budget Information Re: Corporate Services (CS) Recommended: 1. That the detailed financial budget information for Corporate Services be received and deferred for discussion and detailed review at the March 28, 2018 meeting of the Finance Advisory Committee. Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018 Page 3 of 3 6. New Business 7. Adjournment Town of Aurora Finance Advisory Committee Meeting Minutes Date: Thursday, January 24, 2018 Time and Location: 5:30 p.m., Holland Room, Aurora Town Hall Committee Members: Councillor Michael Thompson (Chair), Councillor Harold Kim, and Mayor Geoffrey Dawe Member(s) Absent: None Other Attendees: Doug Nadorozny, Chief Administrative Officer, Dan Elliott, Director of Financial Services/Treasurer, Jason Gaertner, Manager, Financial Planning, Karen Oreto, Financial Analyst, and Ishita Soneji, Council/Committee Secretary The Chair called the meeting to order at 5:30 p.m. 1. Approval of the Agenda Moved by Mayor Dawe Seconded by Councillor Kim That the agenda as circulated by Legislative Services be approved. Carried 2. Declarations of Pecuniary Interest and General Nature Thereof There were no declarations of pecuniary interest under the Municipal Conflict of Interest Act. Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018 Minutes Page 1 of 4 Finance Advisory Committee Meeting Minutes Thursday, January 24, 2018 Page 2 of 4 3.Receipt of the Minutes Finance Advisory Committee Meeting Minutes of October 12, 2017 Moved by Councillor Kim Seconded by Mayor Dawe That the Finance Advisory Committee meeting minutes of October 12, 2017, be received for information. Carried 4.Delegations None 5.Consideration of Items 1.2018 Work Plan for Finance Advisory Committee Staff provided an overview of the proposed 2018 Work Plan for the Committee. The Committee reviewed elements of the Work Plan, and noted that a summary incorporating the discussions of the detailed departmental budget reviews should be included. Moved by Mayor Dawe Seconded by Councillor Kim 1.That the 2018 Work Plan for Finance Advisory Committee be received; and 2.That the 2018 Work Plan be approved; and 3.That a summary outlining the detailed departmental budget reviews be added to the Financial Advisory Committee meeting agenda of June 27, 2018. Carried as amended Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018 Minutes Page 2 of 4 Finance Advisory Committee Meeting Minutes Thursday, January 24, 2018 Page 3 of 4 2. 2018 Work Plan for Financial Planning Division Staff provided detailed overview of the 2018/2019 Work Plan and highlighted various milestones and associated timelines throughout the year. Moved by Councillor Kim Seconded by Mayor Dawe 1. That the 2018 Work Plan for Financial Planning Division be received for information. Carried 3. Budget Committee Schedule – 2019 Budget Process Staff provided an overview of the proposed schedule. The Committee and staff discussed the possibility of alternate schedules with an earlier start to the 2019 budget deliberations. Moved by Mayor Dawe Seconded by Councillor Kim 1. That the Budget Committee Schedule – 2019 Budget Process be received; and 2. That the comments regarding the proposed Budget Committee schedule be referred to staff for consideration of an alternate schedule. Carried as amended 4. Distribution and Introduction of Detailed Financial Budget Information Re: Financial Services (FS) Department Staff provided a brief overview of the line-by-line analysis of the final approved 2018 budget for Financial Services department, and noted that further information and explanations will be provided for the highlighted items at the next meeting. Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018 Minutes Page 3 of 4 Finance Advisory Committee Meeting Minutes Thursday, January 24, 2018 Page 4 of 4 Moved by Councillor Kim Seconded by Mayor Dawe 1. That the detailed financial budget information for Financial Services department be received and deferred for discussion and detailed review at the February 28, 2018 meeting of the Finance Advisory Committee Carried 5. Extract from Council Meeting of November 14, 2017 Re: Finance Advisory Committee Meeting Minutes of September 27, 2017, and October 12, 2017 Moved by Mayor Dawe Seconded by Councillor Kim 1. That the Extract from Council Meeting of November 14, 2017, regarding Finance Advisory Committee meeting minutes of September 27, 2017, and October 12, 2017, be received for information. Carried 6. New Business Staff provided an update on a forthcoming Financial Services report regarding the LED Streetlight Conversion Project. The Committee inquired about the Community Energy Plan and associated grant from the Federation of Canadian Municipalities (FCM), and staff provided an update. 7. Adjournment Moved by Councillor Kim Seconded by Mayor Dawe That the meeting be adjourned at 6:20 p.m. Carried Committee recommendations are not binding on the Town unless adopted by Council. Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018 Minutes Page 4 of 4 Memorandum Date: February 28, 2018 To: Finance Advisory Committee From: Lisa Warth, Acting Director, Community Services Re: Pricing Policy for Recreation Services Recommendation 1.That the memorandum regarding Pricing Policy for Recreation Services be received; and 2.That the comments of Finance Advisory Committee be referred to staff for consideration. Background The Town of Aurora is undertaking a review of the pricing policy for Recreation programs and services. The current policy was adopted in 2009 and requires an update and review. Comments of the Parks, Recreation and Cultural Services Advisory Committee was solicited at their meeting of February 15, 2018. Finance Advisory Committee is herein provided the opportunity to provide comment on this important policy document under review. The pricing policy provides guidance to staff to ensure an effective allocation of public tax dollars. The pricing policy considers many factors such as balancing the recreation interests of individuals and those of the wider community, the role of the Town as a service provider, access and affordability, value, community participation and fiscal responsibility and accountability. With changes and growth in the community and the Region, it is prudent to review the pricing policy at this time. Attachments Attachment 1 – 2009 Pricing Policy for Recreation Services Attachment 2 – LSAC Advisory Committee Report No. LS09-025 – Pricing Policy, dated May 21, 2009 (updated data to be presented at meeting Feb. 28/18) 100 John West Way Box 1000 Aurora, Ontario L4G 6J1 Phone: 905-727-3123 ext. 4765 Email: lwarth@aurora.ca www.aurora.ca Town of Aurora Community Services Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018 Item 1 Page 1 of 12 IBI Group, January 22, 2009 Version – Final Recommended Policy 1 THE CORPORATION OF THE TOWN OF AURORA DEPARTMENT OF LEISURE SERVICES PRICING POLICY FOR RECREATION SERVICES SECTION I: DEFINITIONS In this Policy: Capital Cost means the cost to replace the Town’s recreation/leisure service facilities over the next 50 years. Cost Recovery means the amount/proportion of total operating costs (direct and indirect) paid for by the user of a program, facility or service rather than by the municipality through its tax base. Direct Facility Operating Cost means the costs of facility union and part-time wage costs/benefits, light, heat, water, and maintenance, operating supplies and any costs to provide the space for the activity to take place. Direct Program Operating Cost means the costs of part-time wages/benefits or contract fees, materials, supplies and rental costs associated with the provision of a program. Indirect Facility Operating Cost means the costs of full-time staff salary/benefits and overhead costs for directors, managers, operations supervisors, booking clerks, and carpenters associated with the provision of space for recreational activities to take place. Indirect Program Operating Cost means full-time staff salary/benefits and overhead costs for director, manager, complex administration and department administration associated with the provision of a program. Low Income Household means the threshold, as determined by Statistics Canada, at which a household devotes a larger share of income to the necessities of food, shelter and clothing than the average family.1 Public Good Characteristics means a good or service that is available for everyone to consume and provides community-wide benefits (e.g. education, transit, recreation). While there is a cost associated with the provision of public goods, the cost is shared by all members of the community. One person’s participation/consumption does not preclude another person from participating or consuming that same good. Target Group means a subset of the Town of Aurora’s population intended to be the main beneficiaries of a recreational service or a subset of the population with specific physical, social and/or financial needs (e.g. children, youth, seniors, low income households, special needs groups, new or emerging groups). Total Operating Costs means the total direct and indirect program and facility costs. User Fee means a fee paid directly by a user to gain access to a program, facility or service (e.g. admission or membership fees, program registration fees, facility or equipment rental/permit fees, special service charges, etc.). SECTION II: PURPOSE The Town of Aurora is committed to promoting a healthy environment and fostering the social and physical well-being of its residents. The municipality provides a range of recreational facilities and programs through its Leisure Services Department. All recreational services provided by the Town of Aurora have a cost associated with them. Some recreational services and amenities are paid for solely by the municipality through tax dollars, and are available at no additional cost to users (e.g. parks, trails, splash pads, programs for special target groups). For other services and amenities, users must pay an admission, program, permit or service fee (e.g. swimming lessons, ice rental, camps, and fitness centres). This user fee revenue is used to offset a portion of the facility and program operating costs. The Town requires an up-to-date recreation pricing policy and a consistent and transparent approach to setting affordable user fees in order to: 1.Accommodate the needs of Aurora’s expanding and diversifying population and balance the interests of individuals and those of the wider community; and 2.Effectively allocate public funds for recreational services and facilities and achieve appropriate cost recovery targets. 1 For a municipality the size of Aurora, Statistics Canada identifies the low income cut-off at $11,784 (before tax, 2005 dollars) for a one-person household and up to $47,063 (before tax, 2005 dollars) for a household with seven or more persons. Source: Low Income Cut-offs for 2005 and Low Income Measures for 2004, Catalogue No. 75F0002MIE - No. 004 Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018 Item 1 Page 2 of 12 IBI Group, January 22, 2009 Version – Final Recommended Policy 2 Balancing the Recreational Interests of Individuals and Those of the Wider Community Studies undertaken by federal and provincial government agencies and reputable research institutes clearly illustrate that investment in recreation can result in long-term health care and social service cost savings and that an active population can contribute to the economic vitality of a municipality. As such, the use of public funds to promote and facilitate general access to recreation not only benefits the lives of individual users, but the community at-large. Some recreational activities, however, have greater ‘public good’ characteristics than others, such as teaching essential life and safety skills, allowing for broad participation and/or providing services to special target groups. In addition, there are certain recreational facilities that the private market generally cannot provide at an affordable rate due to large capital and on-going operating costs (e.g. swimming pools, outdoor sports fields). The Town of Aurora plays an important role in providing public access to such facilities at a reasonable cost and should prioritize the allocation of public funding for such activities. Other recreational activities and facilities have fewer ‘public good’ characteristics as they primarily benefit a smaller number of users and can be reasonably accessed through the private or non-profit sector. Effective Allocation of Public Tax Dollars Historically, the Department of Leisure Services wisely used public funds to successfully provide affordable access to recreation services. This formal pricing policy is intended as a general mechanism for effectively and consistently allocating municipal tax dollars. It will provide a higher level of certainty for achieving minimum cost recovery targets through the generation of user fee revenue. This recreation pricing policy provides a transparent and consistent approach to setting user fees and cost recovery targets as it is based on: 1. A series of guiding principles that will ensure a fair, objective and equitable approach is used to consistently set user fees; 2. The recognized need for affordable access to basic recreation services for all Aurora residents, and particularly target groups such as children, seniors, special needs populations, low income households; and 3. The categorization of all Town of Aurora recreation facilities, programs and services, with lower cost recovery targets for those activities which have greater ‘public good’ characteristics and progressively higher cost recovery targets for those activities with more limited ‘public good’ characteristics. SECTION III: GUIDING PRINCIPLES In consultation with recreation and leisure user groups, the following series of principles were established to help guide the pricing of all Town of Aurora recreational facilities, programs and services. These guiding principles reflect the strategic goals and objectives of the Town of Aurora and will allow for a consistent and transparent approach to setting user fees. Role of the Town as a Service Provider  The Town of Aurora will strive to continue to provide the opportunity for Aurora residents to participate in a wide variety of physical and non-physical recreational programs and activities;  As the provider in the first resort, The Town of Aurora will aim to provide recreational facilities and services that are not generally offered by the private sector (e.g. parks and trails, outdoor sportsfield and ball diamonds, swimming pools);  The Town of Aurora shall prioritize the funding of recreational facilities and programs that are most widely used by Aurora residents and target groups; and  The Town of Aurora shall strive to respond to changing population needs, recreational trends and emerging target groups;  The Town of Aurora recognizes the physical, social and economic benefits of providing recreation and leisure services and promoting healthy, active lifestyles; and  The Town of Aurora recognizes the importance of being accountable to its users. Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018 Item 1 Page 3 of 12 IBI Group, January 22, 2009 Version – Final Recommended Policy 3 Access and Affordability  The Department of Leisure Services will aim to provide access to quality, affordable recreational services to all residents and local user groups;  The Department of Leisure Services will strive to equitably set user fees and cost recovery targets for different recreational activities;  The Department of Leisure Services understands the importance of pricing recreational facilities, programs and services so as not to preclude or diminish participation;  The Department of Leisure Services shall consider the full range of costs incurred by groups and individuals to participate in recreation, beyond the user fees charged by the Town (e.g. equipment, coaches, insurance, travel);  The Department of Leisure Services supports providing children and youth groups with first access to lower cost rental facilities/times (e.g. unlit sports fields and ball diamonds and non-prime time hours);  The Department of Leisure Services will aim to ensure that all low-income households and support service providers are aware of the available financial assistance to access the Town’s recreation services and programs.  The Department of Leisure Services will aim to promote and enhance opportunities for recreational activities that are part of the Town’s public open space system and that have no associated user fees (i.e. walking, cycling, hiking, use of splash pads, bird watching). Value  The Department of Leisure Services is committed to providing clean, attractive and safe environments for persons recreating in Aurora parks and facilities;  The Department of Leisure Services shall differentiate between types of recreational activities and service levels through appropriate pricing; and  The Department of Leisure Services will strive to work with user groups to address the need to increase user fees in order to accommodate user group requests for new or improved facilities, maintenance or materials. Community Participation  The Department of Leisure Services shall encourage citizens to be actively involved in the organization and delivery of recreation services;  The Department of Leisure Services shall strive to improve synergies between recreation groups, other service providers, public agencies and Town staff;  The Department of Leisure Services recognizes the importance of developing partnerships with educational boards/authorities, social service agencies, service clubs, volunteer groups, user groups and the private sector; and  The Department of Leisure Services shall aim to provide leadership, assistance and recognition to individuals and groups who help promote recreation and active living. Fiscal Responsibility and Accountability  The Department of Leisure Services acknowledges that the Town of Aurora does not have the financial resources to be the provider of recreation in the first resort for all activities;  The Department of Leisure Services recognizes the important role played by volunteers in the delivery of recreation programs and services, including cost savings to the Town and its residents;  When setting user fees and cost recovery targets, the Town of Aurora shall consider the wider and longer-term economic benefits when setting fees, such as health care and social service cost savings, sports tourism, etc.;  The Town of Aurora shall promote sports tourism and tournaments as a source of revenue for the municipality;  The Department of Leisure Services will strive to ensure broad public awareness of the wide range of recreation facilities, programs and services provided by the Town;  The Department of Leisure Services will strive to promote increased participation and use of existing services and facilities to increase the level of cost recovery through user fee revenue; and  The Department of Leisure Services shall continue to consider best management practices and potential for cost savings in the delivery of recreation. Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018 Item 1 Page 4 of 12 IBI Group, January 22, 2009 Version – Final Recommended Policy 4 Level 0 Level 1 Level 2 Level 3 Higher Level of Cost Recovery Higher % of Operating Costs Paid For By User Fees Higher % of Operating Costs Paid For By Municipal Tax Dollars No or Lower Level of Cost Recovery SECTION IV. CATEGORIZATION OF RECREATION SERVICES AND COST RECOVERY TARGETS The Town of Aurora must prioritize the funding of its recreation services in order to provide the greatest number of its residents, through broad-based participation, and target groups with affordable recreation opportunities. The classification of all recreation services as either Level 0, Level 1, Level 2 or Level 3 activities will help distinguish between those activities that have the greatest ‘public good’ characteristics and for which no cost recovery or lower cost recovery should be tolerated (e.g. Level 1) and those more advanced or specialized programs and facilities for which user fees should cover a large portion of the total operating costs. The following criteria are to be consistently used by the Department of Leisure Services to classify all existing and future recreational facilities and programs. Level 0 – No cost recovery through user fees. The Town of Aurora will prioritize the funding of Level 0 recreational facilities and programs and require no level of cost recovery given they have one or more of the following characteristics:  Facilities intended to provide open and unlimited access (e.g. parks, trails, playgrounds, outdoor splash pads, skateboard and BMX facilities, outdoor skating rinks and tennis courts);  Sponsored facility access (e.g. Tim Horton’s Public Skate Hours);  Public community event (e.g. parade, festival); and  Special services for target groups (e.g. Seniors’ Hour, certain drop-in programs). Level 1 - A minimum of 30% of the total operating costs should be covered by user fees. The Town of Aurora will prioritize the funding of Level 1 recreational facilities and programs and tolerate a lower level of cost recovery given they have one or more of the following characteristics:  Offered at an introductory/general level and use basic materials (e.g. Child Sing Along, Tai Chi Intro);  Aimed at target groups (e.g. children, youth, seniors, low income households, special needs groups, new or emerging groups);  Largely supported by volunteers (e.g. youth team sports, senior’s centre);  Encourage family participation (e.g. recreational swimming and skating, parent and child pre-school programs);  Teaches essential life and safety skills (e.g. Babysitting Training, 55 Alive Drivers, Red Cross swim programs);  Promotes physical activity;  Encourages broad-based participation (i.e. fitness centres, lane swimming, basketball);  Provided by the Town in the first resort; and  Facilities that are part of the Town’s larger public parks and open space system (e.g. baseball diamonds and sports fields). Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018 Item 1 Page 5 of 12 IBI Group, January 22, 2009 Version – Final Recommended Policy 5 Level 2: A minimum of 55% of the total operating costs should be covered by user fees. The Town of Aurora will fund a portion of Level 2 recreational facilities and programs through the municipality’s tax base, but aim for a higher level of cost recovery through user fees given that Level 2 services have one or more of the following characteristics:  Offered to target groups at an intermediate level or are specialized holiday events (e.g. Holiday Art Adventure, Show Biz Kids, Intermediate French);  Geared towards adults (e.g. Adult Tennis League, Belly Dancing, Aqua Adults); and  Involve the use of premium or purpose-built facilities (e.g. rental of swimming pools and ice arenas). Level 3: A minimum of 75% of the total operating costs should be covered by user fees. The Town of Aurora will aim for higher levels of cost recovery for Level 3 recreational facilities, programs and services given they are:  Advanced or specialty programs (e.g. Robot Builders, Theatre Camp, Latin Way Level 2, Golf Fit);  Utilized by a small subset of the population;  Offered on a private basis (e.g. private 1 on 1 swimming lessons, personal fitness training); and  Generally provided by the private sector. Figure 1. Town of Aurora Recreational Service Categorization and Minimum Cost Recovery Targets 0% Cost Recovery of total operating costs Minimum of 30% Cost Recovery of total operating costs – with exceptions* Minimum of 55% Cost Recovery of total operating costs – with exceptions* Minimum of 75% Cost Recovery of total operating costs – with exceptions* Level 0 Level 1 Level 2 Level 3 Public Parks Introductory/General Preschool Programs Intermediate Preschool Programs or Holiday Events Advanced/Speciality Preschool Programs Public Trails Introductory/General Children’s Programs Intermediate Children’s Programs or Holiday Events Advanced/Speciality Children’s Programs Playgrounds Introductory/General Youth Programs Intermediate Youth Programs or Holiday Events Advanced/Speciality Youth Programs Water Play Spashpads Introductory/General Senior’s Programs Intermediate Senior’s Programs or Holiday Events Advanced/Speciality Senior’s Programs Skateboard and BMX Facilities Introductory/General Activity Camps Intermediate Camps and Daycare/Babysitting Services Advanced/Speciality Camps Outdoor skating rinks Red Cross Swimming Programs General Adult Programs Advanced/Specialty Adult Programs Outdoor tennis courts Recreational Swimming and Aqua Fitness (all ages) Semi-Private Swimming Lessons Private Swimming Lessons Certain community events Public Skating (all ages) Intermediate Adult Swimming Programs Private Fitness Training/Lessons Certain programs for special target groups Parks, Trails and other Public Open Space Ice Rental (all ages) Birthday Party Packages Sponsored Facility Access (e.g. Tim Horton’s Public Skate) Ball Diamond and Soccer Field Rental (all ages) Swimming Pool Rental (all ages) Non-resident Fitness Memberships Community Space Rental (all ages Resident Fitness Memberships Non-resident Artificial Turf Rental *Notes: The minimum cost recovery targets do not include an allocation for Capital Conservation/ Facility Replacement costs. The Policy recognizes there are circumstances where the minimum cost recovery targets cannot be met in the short to medium-term. Examples include situations where existing fees would have to be increased by more than 50% in order to reach the minimum target, fee increases are shown to result in loss of participants and consistent pricing is required within a program series (e.g. swimming lessons). Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018 Item 1 Page 6 of 12 IBI Group, January 22, 2009 Version – Final Recommended Policy 6 SECTION V: POLICY RECOMMENDATIONS 1. It is intended that a range of recreational services be available to all citizens and that no Aurora residents shall be excluded from participating in recreational activities because of an inability to pay. 2. User fees are to be calculated to achieve minimum operating cost recovery targets - currently set at 30% for Level 1 activities, 55% for Level 2 activities and 75% for Level 3 activities. 3. The necessary fee increases and additional service fees (e.g. hydro fees for lit soccer fields and ball diamonds) required to achieve the minimum cost recovery targets are shown in Schedule A. Fee increases will be phased in over time (2009 onward) or until the minimum cost recovery targets are met. The fee increases related to achieving cost recovery targets do not include annual inflation rates. 4. The Department of Leisure Services will take into consideration historic pricing when implementing fee increases to meet cost recovery targets. The Department may tolerate a longer period of transition (i.e. phased increases) for certain services that have historically had low cost recovery rates (e.g. the rental of ball diamonds and sports fields, private swimming or fitness lessons). 5. Annually, the Leisure Services Department will prepare cost recovery reports which identify total direct and indirect costs associated with all recreational activities. These cost recovery reports will be made available to the Town’s Leisure Services Advisory Committee (LSAC). 6. The categorization of activities and the associated cost recovery targets will be reviewed annually with due consideration to the operating budget impact and may be adjusted to accommodate changes in municipal requirements for cost recovery or changes in the market place. 7. The Department of Leisure will make every effort to announce changes in facility rental rates and permits in advance to allow organizations to make pricing changes to their membership and avoid a deficit or loss of club resources. 8. Individual Aurora residents and user groups may appeal to the Department of Leisure Services for a reduction in fees if they can sufficiently demonstrate that the fees charged by the Town are adverse, restricting/impacting participation. 9. The Department of Leisure Services will continue to monitor the benefits of maintaining an informal approach to providing subsidies and financial assistance to low-income Aurora households. 10. Facility and equipment rental rates may be offered at a reduced rate in low priority times (e.g. non- prime time) to encourage greater participation rates and make use of existing City facilities. 11. Department of Leisure Services may waive, reduce fees and alter fees for promotional purposes and to establish fees for experimental services on an as-required basis. 12. The Town of Aurora may impose a surcharge or charge higher rates for use of its municipal facilities and services by non-Aurora residents. 13. The Department of Leisure Services may choose not to permit a recreational facility if it is determined that the amenity is deteriorating because of over use. 14. It is the intent of the Department of Leisure Services to ensure that fees remain competitive with other recreation and culture service providers in the Town of Aurora and adjacent municipalities. 15. The Department of Leisure Services will continue to investigate potential new sources of revenue (e.g. grants, partnerships and new programs) and support appropriate funding efforts of groups and organizations to help offset the costs to the municipality in providing services and operating facilities. SECTION VI: IMPLEMENTATION It is the intent that the Department of Leisure Services Recreation Pricing Policy be adopted as a permanent policy and will be monitored on an annual basis. To allow for better resource planning for both the Town of Aurora and the users of its recreation services, the Department of Leisure Services shall strive to maintain a multi-year fee schedule for all its facilities and programs and to gradually phase-in any increases in fees. J:\20278_Aurora_Rec\10.0 Reports\PTRfinalrecommendedaurorauserfeepolicy2009-01-15.doc\2009-01-15\A Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018 Item 1 Page 7 of 12 LEISURE SERVICES ADVISORY COMMITTEE REPORT No. LS09-025 SUBJECT: Pricing Policy FROM: Allan D. Downey, Director of Leisure Services DATE: May 21, 2009 , RECOMMENDATIONS THAT fees be increased over the next five years for soccer and ball to incorporate lighting fees in accordance with Staff Report No. LS09-025. PURPOSE OF THE REPORT To introduce the Leisure Services Advisory Committee (LSAC) to proposed field user changes. BACKGROUND LSAC has been considering a draft Pricing Policy for several meetings. At the February 19, 2009 LSAC meeting, the following recommendations were presented for Council approval: Moved by Michael Levesque Seconded by Ken Whitehurst THAT the Leisure Services Advisory Committee recommend to Council that the Final Leisure Services Pricing Policy be referred back to the Director of Leisure Services; and THAT the Price Comparison Chart, referenced on page 40 of the agenda, be reworked with the following changes: • Remove the percentages • Remove Aurora from the averages, but, leave in the chart • Include column for children’s soccer and ball • Include footnotes as required • Include the Towns of Ajax and Oakville in the Matrix; and THAT the Director of Leisure Services be requested to provide options for implementation of phasing in any decreases and increases; and TOWN OF AURORA Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018 Item 1 Page 8 of 12 May 21, 2009 - 2 - Report No. LS09-025 …/2 THAT the wording from the “IBI Group” recommendations be included in the policy. CARRIED Staff then presented a further Staff Report to the March 23rd, 2009 LSAC meeting in which the following recommendation to Council was presented: Moved by Kenneth Whitehurst Seconded by Councillor McRoberts THAT the Price Comparison Chart be received for information; and THAT it be recommended to Council that no user fess is to be charged at a level that goes beyond 100% of the direct and indirect costs to provide the service; and THAT it be recommended to Council that all ball and soccer price increases are not to go beyond either the municipal average of comparative municipalities (as reflected on Page 141 of the Agenda) or the Pricing Policy cost recovery recommendation of 30%; and THAT the Ice and Pool fees be set based on a market comparison method analysis of area municipalities as utilized on page 141 of the Agenda; and THAT the Director of Leisure Services be requested to provide recommendations to Leisure Serviced Advisory Committee as to how the increases will be phased in. CARRIED Council approved these recommendations on March 10, 2009 and April 14, 2009 respectively. COMMENTS Staff have continued to compile information regarding other municipal rates and have now extracted “lighting fees” from all charges which are present on the following charts: Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018 Item 1 Page 9 of 12 May 21, 2009 - 3 - Report No. LS09-025 …/3 **Rates are per hour Municipality Ice Rate Soccer (Adult) Soccer (Youth) Ball (Adult) Ball (Youth) Pool (cost excludes Lifeguard fee) East Gwillimbury $170.21 $7.02 $5.37 $10.26 $6.53 N/A Georgina $169.79 $7.50 $7.50 $16.52 $6.04 $11.00 / lane King $179.00 $4.02 $2.25 $4.02 $2.87 N/A Markham $182.00 $3.60 $2.05 $3.60 $2.05 $18.08 / lane Newmarket $175.28 $14.49 $8.33 $14.49 $8.33 $15.50 / lane Richmond Hill $179.67 $14.00 $7.00 $11.00 $5.50 $18.00 / lane Vaughan $167.17 $4.10 $4.10 $1.75 $1.75 $9.74 / lane Whitchurch-Stouffville $175.00 $4.00 $4.00 $4.00 $4.00 $14.33 / lane Ajax $181.65 $18.00 $12.58 $22.00 $14.00 $15.69 / lane Oakville $176.04 $7.04 $4.30 $7.04 $4.30 $7.70 / lane (prime) & $8.94 (non-prime) Average $175.58 $8.38 $5.75 $9.47 $5.54 $13.91 / lane Pricing Policy $97.20 $12.25 $12.25 $22.69 $22.69 $5.22 / lane Aurora $179.03 $6.83 $6.83 $14.23 $9.03 $10.00 / /lane WITH THE INCLUSION OF LIGHTING FEES: Municipality Soccer (Adult) Soccer (Youth) Ball (Adult) Ball (Youth) East Gwillimbury $16.98 $15.32 $17.30 $13.56 Georgina N/A N/A $19.02 $8.54 King $4.02 $2.25 $4.02 $2.87 Markham $24.60 $13.05 $24.60 $13.05 Newmarket $33.39 $22.12 $33.39 $22.12 Richmond Hill $16.00 $8.00 $15.00 $7.50 Vaughan $14.02 $14.02 $2.78 $2.78 Whitchurch-Stouffville $5.00 $5.00 $5.00 $5.00 Ajax $24.00 $15.00 $27.25 $17.50 Oakville N/A N/A N/A N/A Average $17.25 $11.85 $16.48 $10.32 Pricing Policy $22.25 $22.25 $32.69 $32.69 In accordance with the Council approved direction, there are two options available to LSAC for their consideration: Option 1 - exclude lighting fees and Option 2 - include lighting fees. Option 1: Fees for all user groups would remain the same with the exception of Adult soccer, which we recommend would increase by 10% each year for the next two years. This would generate additional revenue of $480.00/year for the next two years. Option 2: Fees for all field user groups would increase in accordance with Council direction. Staff Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018 Item 1 Page 10 of 12 May 21, 2009 - 4 - Report No. LS09-025 recommends that all fees should be at the Council approved level within the next five years and prior to the next pricing policy review. …/4 In order to accomplish this, the following increases are recommended each year for the next 5 years: Adult Soccer $2/yr x 706 hours = = $1,412.00 Youth Soccer $1/yr x 9554 hours = $9,554.00 Adult Ball $0.5/yr x 1653 hours = $826.50 Youth Ball $0.25/yr x 3420 hours = 855.00 ALTERNATIVE(S) TO THE RECOMENDATIONS 1. LSAC may recommend that no fee increases be considered. 2. LSAC may recommend that Option 1 be recommended. 3. LSAC may recommend alternative fee increases.. FINANCIAL IMPLICATIONS Option 1: $480 / year for two years = $960.00 Option 2: $12,647.50 / year for five years = $63,237.50 CONCLUSIONS The price comparison chart clearly indicates that based on average costs, the Town of Aurora is comparable to the surrounding market. However, when lighting fees are included and added to the calculations, the Town of Aurora is below the average and as recommended by the Pricing Policy consultant, should be introduced in the pricing structure. Staff concur with this recommendation and have presented a five-year phase-in period in order to address this issue. ATTACHMENTS None. PRE-SUBMISSION REVIEW Leisure Services Advisory Committee, Thursday, May 21, 2009 Prepared by: Allan D. Downey, Director of Leisure Services- Ext.4752 Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018 Item 1 Page 11 of 12 May 21, 2009 - 5 - Report No. LS09-025 _________________________________ Allan D. Downey Director of Leisure Services Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018 Item 1 Page 12 of 12 2015 2016 20172017 20182018 vs2018 vs2017 vs2017 vsFull Year Full Year Full YearApproved Approved2017 Budget 2017 Budget2016 Actual2016 ActualActuals Actuals ActualsBudget BudgetIncrease / (Decrease) Increase / (Decrease) Increase / (Decrease)Increase / (Decrease)REVENUE:3‐1010 PROPERTY TAX OWNERSHIP CHANGE FEE(59,903) (66,464) (55,187)(37,600) (50,000)12,40033.0%(11,277)(17.0%)3‐1011 WATER/WASTEWATER OWNERSHIP CHANGE FE(71,759) (110,589) (128,761)(68,500) (75,000)6,5009.5%18,17216.4%3‐1102 ADMINISTRATIVE FEES(14,022) (13,803) (13,395)(13,300) (13,600)3002.3%(408)(3.0%)3‐1112 TAX CERTIFICATES(61,655) (62,991) (57,483)(52,000) (54,100)2,1004.0%(5,508)(8.7%)3‐1200 OVER/UNDER12611‐‐‐‐6098.4%3‐1201 OTHER(10,248) (9,868) (16,764)(10,000) (10,000)‐‐6,89669.9%Total Revenue(217,575) (263,654)(271,589) (181,400) (202,700)21,30011.7%7,9353.0%EXPENSE:4‐2000 SALARIES ‐ F/T1,343,363 1,286,835 1,367,4541,418,507 1,483,08864,5814.6%80,6196.3%4‐2001 SALARIES ‐ O/T817 2,907 2,450‐‐‐‐(457)(15.7%)4‐2002 SALARIES ‐ P/T8,989 67,112 80,45960,143 73,87013,72722.8%13,34719.9%4‐2003 VACATION PAY‐ 1,441‐‐‐‐‐(1,441)(100.0%)4‐2004 SICK PAY‐159‐‐‐‐‐(159)(100.0%)4‐2090 YEAR END ACCRUALS(44,165) 30,106 19,043‐‐‐‐(11,063)(36.7%)4‐2100 BENEFITS ‐ OMERS133,243 129,074 139,011151,522 165,99614,4749.6%9,9377.7%4‐2101 BENEFITS ‐  EHT26,216 26,387 27,82226,648 30,3053,65713.7%1,4355.4%4‐2102 BENEFITS ‐  WSIB9,937 8,712 9,34810,249 11,6561,40713.7%6367.3%4‐2103 BENEFITS ‐  CPP38,046 36,226 38,84239,113 44,9805,86715.0%2,6167.2%4‐2104 BENEFITS ‐  EI21,476 20,404 19,05520,541 20,7331920.9%(1,349)(6.6%)4‐2105 BENEFITS ‐ DENTAL23,341 20,870 22,48027,612 27,7761640.6%1,6107.7%4‐2106 BENEFITS ‐  HEALTH41,653 41,523 44,10042,889 47,5034,61410.8%2,5776.2%4‐2107 BENEFITS ‐  LTD/ADD21,249 20,905 21,53125,511 30,5965,08519.9%6263.0%4‐2108 BENEFITS ‐  OTHER6,275 6,115 6,2316,374 7,6501,27620.0%1161.9%4‐2200 WAGE RECOVERY(302,230) (306,800) (363,765)(363,765)0363,7650.0%(56,965)(18.6%)4‐2201 SALARY SAVINGS‐‐‐(12,279) (12,279)‐‐ ‐‐TOTAL SALARIES & BENEFITS1,328,210 1,391,976 1,434,061 1,453,065 1,931,874478,80933.0%42,0853.0%4‐3000 PURCHASE CARD CLEARING‐‐284‐‐‐‐284‐4‐4000 OFFICE SUPPLIES4,072 3,080 3,9173,000 3,000‐‐83727.2%4‐4004 SUBSCRIPTIONS/PUBLICATIONS1,414 2,803 1,6341,690 1,340(350)(20.7%)(1,169)(41.7%)4‐4006 OFFICE EQUIPMENT‐51 ‐‐‐‐‐(51)(100.0%)4‐4028 COST REALLOCATIONS(25,000) (25,400) (6,500)‐‐‐‐18,90074.4%4‐4045 MUNICIPAL BUSINESS1,922 2,671 1,4392,350 2,350‐‐(1,232)(46.1%)4‐4060 CENTRAL SUPPLIES431 2,021591‐‐‐‐(1,430)(70.8%)Dollar Change  > +/‐ $20,000ANDPercentage Change  >   +/‐ 10%1Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018 Item 2 Page 1 of 8 2015 2016 20172017 20182018 vs2018 vs2017 vs2017 vsFull Year Full Year Full YearApproved Approved2017 Budget 2017 Budget2016 Actual2016 ActualActuals Actuals ActualsBudget BudgetIncrease / (Decrease) Increase / (Decrease) Increase / (Decrease)Increase / (Decrease)Dollar Change  > +/‐ $20,000ANDPercentage Change  >   +/‐ 10%4‐5026 COURSES & SEMINARS6,151 8,153 8,6195,020 5,102821.6%4665.7%4‐5027 MANDATORY COURSES & SEMINARS2,658 2,610 2,327‐‐‐‐(283)(10.8%)4‐5028 MEMBERSHIPS8,505 9,144 8,15710,475 10,475‐‐(987)(10.8%)4‐5029 MILEAGE557691694725725‐‐ 30.4%4‐5031 GENERAL OFFICE EQUIPMENT51 3,493129500500‐‐(3,364)(96.3%)4‐5033 EQUIPMENT REPAIRS‐465‐‐‐‐‐(465)(100.0%)4‐5035 EQUIPMENT SERVICE CONTRACTS2,798656‐3,400 3,5001002.9%(656)(100.0%)4‐5043 CONSULTING388 39,999 23,55340,200 33,100(7,100)(17.7%)(16,446)(41.1%)4‐5045 PHOTOCOPIER CHARGES12,334 11,913 12,07213,656 13,310(346)(2.5%)1591.3%4‐5046 PRINTING8,028 4,157 10,8789,550 9,9003503.7%6,721161.7%4‐5059 CONTRACTS14,537 20,760 17,20518,600 19,2006003.2%(3,555)(17.1%)4‐5060 COST RECOVERY(5,500) (5,700) (1,450)‐‐‐‐4,25074.6%4‐6001 BANK CHARGES19,859 20,285 19,74122,650 23,3306803.0%(544)(2.7%)TOTAL OTHER EXPENSES53,205 101,852 103,290 131,816 125,832(5,984)(4.5%)1,4381.4%TOTAL EXPENSES1,381,415 1,493,828 1,537,351 1,584,881 2,057,706472,82529.8%43,5232.9%NET BUDGET1,163,840 1,230,174 1,265,762 1,403,481 1,855,006451,52532.2%35,5882.9%2Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018 Item 2 Page 2 of 8 2015 2016 20172017 20182018 vs 2018 vs 2017 vs 2017 vsFull Year Full Year Full YearApproved Approved2017 Budget 2017 Budget 2016 Actual 2016 ActualActuals Actuals ActualsBudget BudgetIncrease / (Decrease) Increase / (Decrease) Increase / (Decrease)Increase / (Decrease)REVENUE:3‐1200 OVER/UNDER1261‐‐‐‐‐61100.0%3‐1201 OTHER‐‐ (247)‐‐‐‐247‐Total Revenue1261 (247)‐‐‐‐308504.9%EXPENSE:4‐2000 SALARIES ‐ F/T235,531 238,485 247,885241,281 245,3544,073 1.7% 9,400 3.9%4‐2002 SALARIES ‐ P/T‐‐‐9,000 8,766(234) (2.6%) ‐ ‐4‐2090 YEAR END ACCRUALS3,280 3,359 40,403‐‐‐‐37,044 1,102.8%4‐2100 BENEFITS ‐ OMERS28,552 28,841 29,19528,981 29,505524 1.8% 354 1.2%4‐2101 BENEFITS ‐  EHT4,615 4,673 4,8574,705 4,949244 5.2% 184 3.9%4‐2102 BENEFITS ‐  WSIB1,330 1,156 1,2121,810 1,90494 5.2% 56 4.8%4‐2103 BENEFITS ‐  CPP4,960 5,089 5,1285,174 5,481307 5.9% 39 0.8%4‐2104 BENEFITS ‐  EI2,606 2,674 2,3412,711 2,610(101) (3.7%) (333) (12.5%)4‐2105 BENEFITS ‐ DENTAL2,463 2,308 2,5273,682 3,472(210) (5.7%) 219 9.5%4‐2106 BENEFITS ‐  HEALTH4,063 4,201 4,2595,718 5,938220 3.8% 58 1.4%4‐2107 BENEFITS ‐  LTD/ADD3,185 3,187 3,0994,531 5,062531 11.7% (88) (2.8%)4‐2108 BENEFITS ‐  OTHER1,083 1,113 1,1011,132 1,266134 11.8% (12) (1.1%)4‐2200 WAGE RECOVERY(31,300) (31,800) (32,300)(32,300) 032,300 0.0% (500) (1.6%)4‐2201 SALARY SAVINGS‐‐‐(12,279) (12,279)‐‐ ‐‐TOTAL SALARIES & BENEFITS 260,368 263,286 309,707 264,146 302,028 37,88214.3%46,42117.6%4‐3000 PURCHASE CARD CLEARING‐‐284‐‐‐‐284‐4‐4000 OFFICE SUPPLIES3,950 2,808 3,6642,500 3,000500 20.0% 856 30.5%4‐4004 SUBSCRIPTIONS/PUBLICATIONS45 1,443202310300(10)(3.2%)(1,241)(86.0%)4‐4045 MUNICIPAL BUSINESS916 1,4907171,000 1,000‐‐(773)(51.9%)4‐5026 COURSES & SEMINARS678 1,986 1,2641,451 1,451‐ ‐ (722) (36.4%)4‐5027 MANDATORY COURSES & SEMINARS1,106941‐‐‐‐‐(941)(100.0%)4‐5028 MEMBERSHIPS3,561 3,512 2,3853,650 3,650‐ ‐ (1,127) (32.1%)4‐5029 MILEAGE‐32 ‐‐‐‐‐(32)(100.0%)4‐5031 GENERAL OFFICE EQUIPMENT51 3,493129500500‐‐(3,364)(96.3%)4‐5033 EQUIPMENT REPAIRS‐465‐‐‐‐‐(465)(100.0%)4‐5043 CONSULTING‐ 25,794 16,93924,000 17,000(7,000) (29.2%) (8,855) (34.3%)4‐5045 PHOTOCOPIER CHARGES11,541 10,713 11,24312,776 12,200(576)(4.5%)5304.9%4‐5046 PRINTING1,198‐‐‐‐‐‐ ‐‐4‐5059 CONTRACTS‐ 1,427 2,422‐‐‐ ‐ 995 69.7%Dollar Change  > +/‐ $20,000ANDPercentage Change  >   +/‐ 10%3Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018 Item 2 Page 3 of 8 2015 2016 20172017 20182018 vs 2018 vs 2017 vs 2017 vsFull Year Full Year Full YearApproved Approved2017 Budget 2017 Budget 2016 Actual 2016 ActualActuals Actuals ActualsBudget BudgetIncrease / (Decrease) Increase / (Decrease) Increase / (Decrease)Increase / (Decrease)Dollar Change  > +/‐ $20,000ANDPercentage Change  >   +/‐ 10%4‐5060 COST RECOVERY(5,500) (5,700) (1,450)‐‐‐ ‐ 4,250 74.6%TOTAL OTHER EXPENSES 17,546 48,404 37,799 46,187 39,101 (7,086) (15.3%) (10,605) (21.9%)TOTAL EXPENSES 277,914 311,690 347,506 310,333 341,129 30,796 9.9% 35,816 11.5%NET BUDGET 277,926 311,751 347,259 310,333 341,129 30,796 9.9% 35,508 11.4%4Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018 Item 2 Page 4 of 8 2015 2016 20172017 20182018 vs 2018 vs 2017 vs 2017 vsFull Year Full Year Full YearApproved Approved2017 Budget 2017 Budget 2016 Actual 2016 ActualActuals Actuals ActualsBudget BudgetIncrease / (Decrease) Increase / (Decrease) Increase / (Decrease)Increase / (Decrease)REVENUE:3‐1010 PROPERTY TAX OWNERSHIP CHANGE FEE(59,903) (66,464) (55,187)(37,600) (50,000)12,400 33.0% (11,277) (17.0%)3‐1011 WATER/WASTEWATER OWNERSHIP CHANGE FE(71,759) (110,589) (128,761)(68,500) (75,000)6,500 9.5% 18,172 16.4%3‐1102 ADMINISTRATIVE FEES(13,956) (13,471) (13,395)(13,300) (13,600)300 2.3% (76) (0.6%)3‐1112 TAX CERTIFICATES(61,655) (62,991) (57,483)(52,000) (54,100)2,100 4.0% (5,508) (8.7%)3‐1200 OVER/UNDER‐‐1‐‐‐‐(1)‐3‐1201 OTHER(10,248) (9,868) (16,517)(10,000) (10,000)‐ ‐ 6,649 67.4%Total Revenue (217,521) (263,383)(271,342) (181,400) (202,700) 21,300 11.7% 7,959 3.0%EXPENSE:4‐2000 SALARIES ‐ F/T457,984 442,867 449,956479,158 481,1832,025 0.4% 7,089 1.6%4‐2001 SALARIES ‐ O/T817‐ 2,406‐‐‐‐2,406‐4‐2002 SALARIES ‐ P/T‐ 39,113 88,15042,900 56,72113,821 32.2%49,037 125.4%4‐2003 VACATION PAY‐ 1,199‐‐‐‐‐(1,199)(100.0%)4‐2004 SICK PAY‐73 ‐‐‐‐‐(73)(100.0%)4‐2090 YEAR END ACCRUALS6,521 9,649 (10,127)‐‐‐ ‐ (19,776) (205.0%)4‐2100 BENEFITS ‐ OMERS36,040 34,049 35,97951,221 51,30281 0.2% 1,930 5.7%4‐2101 BENEFITS ‐  EHT8,993 9,454 9,8419,343 10,4471,104 11.8% 387 4.1%4‐2102 BENEFITS ‐  WSIB3,589 3,300 3,5423,594 4,018424 11.8% 242 7.3%4‐2103 BENEFITS ‐  CPP12,400 13,318 14,45015,523 18,2382,715 17.5% 1,132 8.5%4‐2104 BENEFITS ‐  EI7,817 8,250 7,8848,133 8,359226 2.8% (366) (4.4%)4‐2105 BENEFITS ‐ DENTAL9,587 8,850 9,29111,045 10,416(629) (5.7%) 441 5.0%4‐2106 BENEFITS ‐  HEALTH15,986 16,269 17,70717,156 17,814658 3.8% 1,438 8.8%4‐2107 BENEFITS ‐  LTD/ADD6,613 6,628 6,6048,997 9,926929 10.3% (24) (0.4%)4‐2108 BENEFITS ‐  OTHER2,172 2,174 2,0972,248 2,482234 10.4% (77) (3.5%)4‐2200 WAGE RECOVERY(212,330) (215,500) (226,700)(226,700) 0(226,700) ‐ 11,200 5.2%TOTAL SALARIES & BENEFITS 356,189 379,693 411,080 422,618 670,906 248,288 58.7% 31,387 8.3%4‐4004 SUBSCRIPTIONS/PUBLICATIONS1,369 1,360 1,3431,380 1,040(340) (24.6%) (17) (1.3%)4‐4028 COST REALLOCATIONS(25,000) (25,400) (6,500)‐‐‐ ‐ 18,900 74.4%4‐4045 MUNICIPAL BUSINESS86419292450450‐‐(127)(30.3%)4‐5026 COURSES & SEMINARS3,238 1,550 3,6971,257 1,257‐ ‐ 2,147 138.5%4‐5028 MEMBERSHIPS2,333 2,405 2,5312,825 2,825‐ ‐ 126 5.2%4‐5029 MILEAGE326478432425425‐‐(46)(9.6%)4‐5035 EQUIPMENT SERVICE CONTRACTS2,798656‐3,400 3,5001002.9%(656)(100.0%)4‐5043 CONSULTING163946‐10,000 10,000‐‐(946)(100.0%)Dollar Change  > +/‐ $20,000ANDPercentage Change  >   +/‐ 10%5Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018 Item 2 Page 5 of 8 2015 2016 20172017 20182018 vs 2018 vs 2017 vs 2017 vsFull Year Full Year Full YearApproved Approved2017 Budget 2017 Budget 2016 Actual 2016 ActualActuals Actuals ActualsBudget BudgetIncrease / (Decrease) Increase / (Decrease) Increase / (Decrease)Increase / (Decrease)Dollar Change  > +/‐ $20,000ANDPercentage Change  >   +/‐ 10%4‐5046 PRINTING6,830 4,157 10,8789,550 9,900350 3.7% 6,721 161.7%4‐5059 CONTRACTS14,537 19,333 14,78318,600 19,200600 3.2% (4,550) (23.5%)4‐6001 BANK CHARGES19,859 20,285 19,74122,650 23,330680 3.0% (544) (2.7%)TOTAL OTHER EXPENSES 26,539 26,189 47,197 70,537 71,927 1,390 2.0% 21,008 80.2%TOTAL EXPENSES 382,728 405,882 458,277 493,155 742,833 249,678 50.6% 52,395 12.9%NET BUDGET 165,207 142,499 186,935 311,755 540,133 228,378 73.3% 44,43631.2%6Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018 Item 2 Page 6 of 8 2015 2016 20172017 20182018 vs 2018 vs 2017 vs 2017 vsFull Year Full Year Full YearApproved Approved2017 Budget 2017 Budget 2016 Actual 2016 ActualActuals Actuals ActualsBudget BudgetIncrease / (Decrease) Increase / (Decrease) Increase / (Decrease)Increase / (Decrease)REVENUE:Total Revenue ‐‐‐‐‐ ‐ ‐ ‐ ‐EXPENSE:4‐2000 SALARIES ‐ F/T365,364 372,863 381,306382,943 392,8479,904 2.6% 8,443 2.3%4‐2090 YEAR END ACCRUALS(1,920) 7,614 (7,247)‐‐‐ ‐ (14,861) (195.2%)4‐2100 BENEFITS ‐ OMERS41,622 42,428 43,57543,418 44,7221,304 3.0% 1,147 2.7%4‐2101 BENEFITS ‐  EHT7,162 7,308 7,4747,467 7,660193 2.6% 166 2.3%4‐2102 BENEFITS ‐  WSIB2,801 2,584 2,6292,872 2,94674 2.6% 45 1.7%4‐2103 BENEFITS ‐  CPP9,920 10,177 10,25610,348 10,474126 1.2% 79 0.8%4‐2104 BENEFITS ‐  EI5,211 5,348 4,6835,422 4,776(646) (11.9%) (665) (12.4%)4‐2105 BENEFITS ‐ DENTAL7,124 6,678 7,3117,363 6,944(419) (5.7%) 633 9.5%4‐2106 BENEFITS ‐  HEALTH11,923 12,328 12,49911,437 11,876439 3.8% 171 1.4%4‐2107 BENEFITS ‐  LTD/ADD6,690 6,805 6,9347,190 8,104914 12.7% 129 1.9%4‐2108 BENEFITS ‐  OTHER1,815 1,752 1,7911,797 2,026229 12.7% 39 2.2%4‐2200 WAGE RECOVERY(58,600) (59,500) (60,400)(60,400) 060,400 0.0% (900) (1.5%)TOTAL SALARIES & BENEFITS 399,112 416,385 410,811 419,857 492,375 72,518 17.3% (5,574) (1.3%)4‐4006 OFFICE EQUIPMENT‐51 ‐‐‐‐‐(51)(100.0%)4‐4045 MUNICIPAL BUSINESS‐12815450450‐‐(113)(88.3%)4‐5026 COURSES & SEMINARS461 1,572335968 1,050828.5%(1,237)(78.7%)4‐5027 MANDATORY COURSES & SEMINARS1,551 1,669 2,327‐‐‐ ‐ 658 39.4%4‐5028 MEMBERSHIPS1,882 1,951 1,9682,500 2,500‐ ‐ 17 0.9%4‐5029 MILEAGE‐181‐‐‐‐‐(181)(100.0%)4‐5043 CONSULTING225 13,260 6,6146,200 6,100(100) (1.6%) (6,646) (50.1%)TOTAL OTHER EXPENSES 4,119 18,812 11,259 10,118 10,100 (18) (0.2%) (7,553)(40.1%)TOTAL EXPENSES403,231 435,197 422,070 429,975 502,47572,50016.9%(13,127)(3.0%)NET BUDGET403,231 435,197 422,070 429,975 502,47572,50016.9%(13,127)(3.0%)Dollar Change  > +/‐ $20,000ANDPercentage Change  >   +/‐ 10%7Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018 Item 2 Page 7 of 8 2015 2016 20172017 20182018 vs 2018 vs 2017 vs 2017 vsFull Year Full Year Full YearApproved Approved2017 Budget 2017 Budget 2016 Actual 2016 ActualActuals Actuals ActualsBudget BudgetIncrease / (Decrease) Increase / (Decrease) Increase / (Decrease)Increase / (Decrease)REVENUE:3‐1102 ADMINISTRATIVE FEES(66) (332)‐‐‐‐‐(332)(100.0%)Total Revenue(66) (332)‐‐‐‐‐(332)(100.0%)EXPENSE:4‐2000 SALARIES ‐ F/T284,484 232,619 288,307315,125 363,70448,579 15.4%55,688 23.9%4‐2001 SALARIES ‐ O/T‐ 2,90744‐‐‐‐(2,863)(98.5%)4‐2002 SALARIES ‐ P/T8,989 27,999 19,9848,243 8,383140 1.7% (8,015) (28.6%)4‐2003 VACATION PAY‐242‐‐‐‐‐(242)(100.0%)4‐2004 SICK PAY‐86 ‐‐‐‐‐(86)(100.0%)4‐2090 YEAR END ACCRUALS(52,046) 9,484 (3,986)‐‐‐ ‐ (13,470) (142.0%)4‐2100 BENEFITS ‐ OMERS27,028 23,757 30,26227,902 40,46712,565 45.0% 6,505 27.4%4‐2101 BENEFITS ‐  EHT5,447 4,952 5,6505,132 7,2492,117 41.3% 698 14.1%4‐2102 BENEFITS ‐  WSIB2,216 1,673 1,9651,974 2,788814 41.2% 292 17.5%4‐2103 BENEFITS ‐  CPP10,767 7,642 9,0088,067 10,7872,720 33.7% 1,366 17.9%4‐2104 BENEFITS ‐  EI5,842 4,131 4,1474,275 4,988713 16.7% 16 0.4%4‐2105 BENEFITS ‐ DENTAL4,167 3,034 3,3515,522 6,9441,422 25.8% 317 10.4%4‐2106 BENEFITS ‐  HEALTH9,681 8,725 9,6358,578 11,8763,298 38.4% 910 10.4%4‐2107 BENEFITS ‐  LTD/ADD4,761 4,284 4,8944,793 7,5032,710 56.5% 610 14.2%4‐2108 BENEFITS ‐  OTHER1,206 1,075 1,2421,198 1,876678 56.6% 167 15.5%4‐2200 WAGE RECOVERY‐‐ (44,365)(44,365)‐44,365‐(44,365)(100.0%)TOTAL SALARIES & BENEFITS312,542 332,610 330,138 346,444 466,565120,12134.7%(2,472)(0.7%)4‐4000 OFFICE SUPPLIES122272254500‐(500)(100.0%)(18)(6.6%)4‐4004 SUBSCRIPTIONS/PUBLICATIONS‐‐90‐‐‐‐90‐4‐4045 MUNICIPAL BUSINESS920634414450450‐‐(220)(34.7%)4‐4060 CENTRAL SUPPLIES431 2,021591‐‐‐‐(1,430)(70.8%)4‐5026 COURSES & SEMINARS1,774 3,046 3,3231,344 1,344‐ ‐ 277 9.1%4‐5028 MEMBERSHIPS729 1,276 1,2731,500 1,500‐ ‐ (3) (0.2%)4‐5029 MILEAGE232‐262300300‐‐262‐4‐5045 PHOTOCOPIER CHARGES793 1,200829880 1,11023026.1%(371)(30.9%)TOTAL OTHER EXPENSES5,001 8,449 7,036 4,974 4,704(270)(5.4%)(1,413)(16.7%)TOTAL EXPENSES317,543 341,059 337,174 351,418 471,269119,85134.1%(3,885)(1.1%)NET BUDGET317,477 340,727 337,174 351,418 471,269119,85134.1%(3,553)(1.0%)Dollar Change  > +/‐ $20,000ANDPercentage Change  >   +/‐ 10%8Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018 Item 2 Page 8 of 8 Town of Aurora General Committee Report No. FS18-004 Subject: 2019 Budget Development Direction Prepared by: Dan Elliott, Director of Financial Services - Treasurer Department: Financial Services Date: March 20, 2018 Recommendation 1.That Report No. FS18-004 be received; and 2.That the key principals for the 2019 operating budget development be endorsed. Executive Summary This report provides budget development directions and guidance to staff as they prepare the draft 2019 Operating Budget for presentation to the Budget Committee during the first quarter of 2019. •Council’s Budget Principles and Budget Process are set out in the foundational documents approved by Council in 2016, which are publicly available on the Town’s website, and will serve as guidance to staff in budget preparations. •Finance Advisory Committee continues its detailed reviews of department operations which allows for more strategic reviews of the 2019 draft budget by the Budget Committee. •Key directives include: o The budget consultation meeting that was introduced as a component of the 2018 budget process will continue in 2019. o Fire Services budget continues to grow beyond inflation due to the phased plan to hire four new firefighters per year, leading to the opening of the new fire hall, and as set out in the updated Fire Master Plan. The Town of Aurora previously adopted a budget strategy to phase the whole increase equally over a five-year period. This budget strategy will continue into 2019. o The Town’s fiscal strategy to add special levy increases in addition to CPI to meet needed increases for contributions to the infrastructure sustainability reserve funds and other purposes continues for 2019. These DRAFT Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018 Item 3 Page 1 of 8 March 20, 2018 Page 2 of 8 Report No. FS18-004 strategies are confirmed each year as part of the regular updates to the Town’s 10 Year Capital Investment Plan. Background In preparation for staff’s creation of the town’s draft 2019 operating budget, it is important for Council to set out its expectations with respect to tax impacts to the residents and businesses of the planned budget. Such direction has allowed the town to recognize considerable efficiency gains in its past three budget processes. When the provided targets were achieved by staff and presented, only minor changes to the presented draft operating were required by Council through the addition of new priority special projects or initiatives. These additions have consistently been accommodated within the draft operating budget target provided by Council. As 2019’s budget must be approved by the newly elected Council, this report is simply seeking endorsement rather than formal approval of the budget preparation directions. The direction proposed is consistent with that of the last three years. Analysis Key principles for the 2019 budget development. (numbering corresponds to the numbered principles in the Council Budget Principles document) 2)The budget process will include the use of budget consultation approaches to allow residents the opportunity to provide input into budget priorities. 8)Council will not rely on budget surplus from one year to support or mitigate budget pressures in the following budget year. 10) Council and staff will continually look to implement changes in technique, tools, or approaches in delivering all services and functions which would reduce cost, or improve efficiency or effectiveness of our work. 12) Council is committed to adequately fund infrastructure renewal through annual increases to infrastructure reserve contributions. These additional increases will be part of the fiscal strategy budget, and may require overall budget increases beyond inflation for the residents of the Town. 13)The operating budget shall include outlooks for the next three years, for a total of four years, to allow the current budget to be considered within the context of the Town’s short term future funding requirements. DRAFT Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018 Item 3 Page 2 of 8 March 20, 2018 Page 3 of 8 Report No. FS18-004 14)A special phasing budget will be used to continue to phase in the expected sharp increase in Fire Services costs with the anticipated addition of a new crew currently being added to Central York Fire Services. This special phasing budget will be funded from a portion of the growth revenue. 16)Inflation is recognized as having a direct impact on the Town’s costs of delivering its existing services. Residents and Council should expect their base taxes to increase by inflation each year, with the fiscal strategy budget pushing this tax increase beyond inflation in efforts to reposition the Town’s long-range financial situation. 18)While the Town is intent on advancing strategic priorities, it is likely not possible to advance all issues in every year, and Council will need to make these key priority decisions in a scarce resource environment. 19)Innovation, efficiencies, maintaining service excellence and service improvements come through the continuous learning and development of our staff. Training and development funding will be provided in the budget. 21)The Province is providing the opportunity for additional revenue to municipalities through deliberately holding the line on school tax rate increases. To accept this additional funding, the municipalities must increase their local portions by a rate higher than inflation, failing which, the opportunity to accept this additional funding is lost. The Finance Advisory Committee has reviewed some budget areas in detail Since its inception in 2015, the Finance Advisory Committee (FAC) has reviewed the Parks, Recreation & Culture department (now Community & Cultural Services, plus Parks Division of Operations), Corporate Accounts, and Planning and Building Services (now Planning and Development Services) department budgets in detail. During the course of these reviews, certain budget concern areas were explored and addressed as part of future town budgets; such as the necessary budget right-sizing of certain budget lines that was undertaken as part of the 2017 and 2018 budget processes. No further right sizing is expected for 2019 as no further concern areas have been identified. The Advisory Committee has scheduled their detailed review of the Financial Services, Corporate Services, Operational Services and Waste/Wastewater/Storm utility departmental operating budgets over the course of 2018. At the conclusion of these noted reviews, the Finance Advisory Committee will have completed a detailed review of all of the town’s departments within its desired four year review cycle. DRAFT Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018 Item 3 Page 3 of 8 March 20, 2018 Page 4 of 8 Report No. FS18-004 Recommended budget preparation directions for 2019 Based on the highlighted budget principles, it is recommended that the following budget directions be endorsed for the preparation of the 2019 Operating Budget: Public Consultation 1)A public consultation meeting will be held to provide opportunity for individuals and groups to provide suggestions, advise or requests and proposals to Budget Committee with regards to the 2019 Operating or Capital budget. Base Operating Budget 1)The overall Aurora net residential tax bill increase for the Base Operating be limited to the reported July 2017 to June 2018 Consumer Price Index (CPI) for the Toronto Area. 2)All fees, rates and charges are to be indexed by the same CPI reported value, and new revenue sources identified. 3)New taxes from new community growth be incorporated into the base budget and be used to extend existing services to these new communities, residents and businesses. 4)For strategic priorities separately identified by Council, a further levy increase should be considered for such new funding. Council may consider a multi-year phased approach to increasing service levels. 5)After the CPI factor is known, the Treasurer is to provide the Library Board, the Cultural Centre Board, and the Historical Society a clear budget funding allocation early in the budget development stage for their consideration when preparing their business plans. 6)A current plus three year forecast will be prepared, and will include a staffing needs analysis and forecast for the same period. Phase-In Budget 7)The phase-in budget strategy currently approved for Fire Services expansion will be funded from within the inflationary and growth components of the base operating budget, as applicable, with any excess planned increase being a separate component of the overall tax increase. DRAFT Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018 Item 3 Page 4 of 8 March 20, 2018 Page 5 of 8 Report No. FS18-004 Fiscal Strategy Budget 8)In addition to the base budget increase for inflation, a dedicated Fiscal Strategy tax levy increase will be imposed to fund additional contributions to Infrastructure Reserves in accordance with the long range fiscal strategies adopted in the recent Ten Year Capital and Asset Management Plan, and reduce budgetary reliance on unsustainable levels of supplementary tax revenues. Capital Budget The 2019 capital budget will be developed based upon the foundational principles as set out in the town’s approved asset management plan (AMP), as well as, its Ten Year Capital Investment Plan in an effort to maintain existing capital asset service standards and to accommodate our growing community needs. Both of these noted plans are scheduled for review and approval by Council as part of the 2019 budget process. Staff are currently preparing an in-year capital budget amendment for 2018 which will include a limited number of R&R type projects which are routine in nature, and will be ready for early tendering before the 2019 construction season. Expected Budget Timing for Council Staff are currently planning for the Budget Committee to commence its review of the 2019 capital budget during February following the election, with the operating budget to follow immediately thereafter. In the event that there is a minimal change to Council after the election, staff will be prepared to commence the capital and operating budgets during December, subject to approval of such schedule by that new Council. Similarly, the planned public consultation process currently anticipated for January could be advanced into December. Advisory Committee Review The Finance Advisory Committee reviewed a draft of this report at its February 28th meeting. Legal Considerations While this Council may influence the preparation of the 2019 operating budget development, it is not permitted to formally approve it. Accordingly, in support of this, DRAFT Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018 Item 3 Page 5 of 8 March 20, 2018 Page 6 of 8 Report No. FS18-004 this report is setting out the planned budget development approach to be used by staff, and is seeking endorsement of that approach only. Financial Implications It is anticipated that strong assessment base growth from new structures (not reassessment increases) will occur for another year, following which growth is anticipated to begin to decline. New revenue from growth is necessary funding to extend existing services at their same levels to these new residents and businesses which results in additional costs, and in some cases, additional staffing requirements. Inflation is a reality that if not accommodated on the full revenue side (taxes and all other revenue sources), dilutes funding available for the maintenance of base services at their existing service levels, resulting in dilution of service. Accordingly, inflationary increases to taxes and service fees are necessary and should be expected by Council and taxpayers. In its Budget Principles document, Council has made very transparent that its reference inflationary indicator is the July to June annual CPI published by Statistics Canada for the Toronto area. This public declaration eliminates use of difference CPI values by staff or others during the budget review process. The CPI value for the end of June is expected to be published by Statistics Canada in late July or August. In addition to inflation, residents and Council need to recognize that infrastructure sustainability funding is currently insufficient for maintaining the service levels from our aging infrastructure. This is a reality facing most municipalities across Canada. Accordingly, increased funding for infrastructure should be expected to be funded as an incremental beyond a base operating budget inflationary adjustment. As of the end of January, the CPI was projected to be 2.0%. If this remains unchanged, the Base Budget would increase by a 2.0% tax increase, plus a 1% increase for Fiscal strategy. New services introduced by Council will add further increase pressure. Based on these agreed to principles, the potential tax rate impact could fall in the range of 3.0% to 3.4% depending on any new services to be funded and the final CPI when published in July. Communications Considerations The budget directions of Council are primarily aimed at staff as they prepare the draft 2019 budget. However, in forthcoming pieces, the Communications Division will include DRAFT Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018 Item 3 Page 6 of 8 March 20, 2018 Page 7 of 8 Report No. FS18-004 some information which will advise residents of Council’s budget expectations and the resultant increase to taxes and fees. A strong communications plan in regards to the development of the Town’s 2019 operating and capital budget is absolutely critical. Consequently, staff will develop a clear communication strategy for the entire 2019 budget cycle. This communication strategy will utilize all communication tools available to the Town including its social media channels. The public consultation process will be delayed due to the election, and will take place in mid-January, with advertising to being mid-December. Link to Strategic Plan Developing the annual budget supports all aspects of the Strategic Plan. Specifically, this report supports the Plan principles of Leadership in Corporate Management, Leveraging Partnerships, and Progressive Corporate Excellence and Continuous Improvement. By setting out the approach to be taken in developing the 2019 Operating Budget. Approval of the 2019 operating and capital budgets provides funding support and approval for all initiatives, services and operations of the Town, all of which support and advance the Strategic Plan’s objectives. Overall, these budgets lead to an improvement in the quality of life for the community that we serve. Alternative(s) to the Recommendation 1.Council may choose to endorse alternate budget preparation direction to staff. Conclusions Clear budget preparation directions have assisted immensely in ensuring a smooth and highly successful budget process for 2016, 2017 and 2018. The entire budget development cycle is now supported by Council approved foundational documents, being the Council Budget Principles and Council Budget Process. Members of the public and Council are reminded that in-depth budget discussions with each individual department continues off-line throughout the year on a rotating basis by the Finance Advisory Committee as set out in the Council Budget Processes document. The Budget Directives recommended in this report are anticipated to result in a fair, progressive and DRAFT Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018 Item 3 Page 7 of 8 March 20, 2018 Page 8 of 8 Report No. FS18-004 affordable budget for the Town for 2019. The draft budget presented by staff will also include a forecast outlook for the following three years. Attachments Nil Previous Reports Nil Pre-submission Review Agenda Management Team review on March 1, 2018 Departmental Approval Approved for Agenda ______________________________ ______________________________ Dan Elliott, CPA, CA Doug Nadorozny Director Chief Administrative Officer Financial Services - Treasurer DRAFT Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018 Item 3 Page 8 of 8 Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018Item 4 Page 1 of 19 Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018Item 4 Page 2 of 19 Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018Item 4 Page 3 of 19 Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018Item 4 Page 4 of 19 Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018Item 4 Page 5 of 19 Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018Item 4 Page 6 of 19 Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018Item 4 Page 7 of 19 Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018Item 4 Page 8 of 19 Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018Item 4 Page 9 of 19 Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018Item 4 Page 10 of 19 Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018Item 4 Page 11 of 19 Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018Item 4 Page 12 of 19 Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018Item 4 Page 13 of 19 Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018Item 4 Page 14 of 19 Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018Item 4 Page 15 of 19 Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018Item 4 Page 16 of 19 Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018Item 4 Page 17 of 19 Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018Item 4 Page 18 of 19 Finance Advisory Committee Meeting Agenda Wednesday, February 28, 2018Item 4 Page 19 of 19