AGENDA - Finance Advisory Committee - 20210608Town of Aurora
Finance Advisory Committee
Meeting Agenda
Date:June 8, 2021
Time:5:45 p.m.
Location:Video Conference
Pages
1.Procedural Notes
This meeting will be held electronically as per Section 19. i) of the Town's
Procedure By-law No. 6228-19, as amended, due to the COVID-19 situation.
2.Approval of the Agenda
3.Declarations of Pecuniary Interest and General Nature Thereof
4.Receipt of the Minutes
4.1.Finance Advisory Committee Meeting Minutes of May 11, 2021 1
That the Finance Advisory Committee meeting minutes of May 11, 2021,
be received for information.
5.Delegations
Note: At this time, the Municipal Offices are closed. This meeting will be live
streamed at https://www.youtube.com/c/Townofaurora/videos. Anyone
wishing to provide comment on an agenda item is encouraged to
visit www.aurora.ca/participation for guidelines on electronic delegation.
6.Matters for Consideration
6.1.Memorandum from Financial Management Advisor; Re: Prudent Investor
Update
5
That the memorandum regarding Prudent Investor Update be
received; and
1.
That the Finance Advisory Committee comments regarding
Prudent Investor be received and referred to staff for
consideration and further action as appropriate.
2.
7.New Business
8.Adjournment
1
Town of Aurora
Finance Advisory Committee
Meeting Minutes
Date:
Time:
Location:
Tuesday, May 11, 2021
5:45 p.m.
Video Conference
Committee Members: Councillor Harold Kim (Chair)
Mayor Tom Mrakas
Councillor Michael Thompson
Other Attendees: Doug Nadorozny, Chief Administrative Officer
Rachel Wainwright-van Kessel, Director of Finance
Jason Gaertner, Manager, Financial Management
Tracy Evans, Advisor, Financial Management
Eliza Bennett, Interim Manager, Corporate Communications
Lianne Jalali, Project Manager
Cindy Shaver, Communications Specialist and Community
Engagement
Linda Bottos, Council/Committee Coordinator
_____________________________________________________________________
1. Procedural Notes
This meeting was held electronically as per Section 19. i) of the Town's
Procedure By-law No. 6228-19, as amended, due to the COVID-19 situation.
The Chair called the meeting to order at 5:47 p.m.
2. Approval of the Agenda
Moved by Councillor Thompson
Seconded by Mayor Mrakas
That the agenda as circulated by Legislative Services be approved.
Carried
Page 1 of 6
2
3. 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.
4. Receipt of the Minutes
4.1 Finance Advisory Committee Meeting Minutes of April 13, 2021
Moved by Councillor Thompson
Seconded by Mayor Mrakas
That the Finance Advisory Committee meeting minutes of April 13, 2021,
be received for information.
Carried
5. Delegations
None.
6. Matters for Consideration
6.1 Memorandum from Manager, Financial Management; Re: 2022 Budget
Engagement Strategy
Staff provided a brief overview of the memorandum. The Committee
inquired about the metric values for the objectives of the proposed
strategy, and staff provided clarification regarding the tools, measures,
and benchmarks being applied to encourage and gauge public awareness
and participation in the budget process. The Committee inquired about the
role of media, and staff noted the intent to provide the opportunity for
education on the municipal budget toward building the trust and
confidence of media members and, by extension, the community. The
Committee further inquired about the possibility of educating residents on
municipal debt financing and the challenges of downloaded costs from
higher levels of government over the past decades. Staff noted that debt
financing and other tools would be highlighted in an upcoming report on
the Town's fiscal strategy. Staff also indicated that funding gaps would be
identified through review of the budget, asset management plan, reserve
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3
plan and forecasting, and any available grant funding would be sought
from the federal and provincial governments.
Moved by Councillor Thompson
Seconded by Mayor Mrakas
1. That the memorandum regarding 2022 Budget Engagement Strategy
be received; and
2. That the Finance Advisory Committee comments regarding the
proposed 2022 Budget Engagement Strategy be received and referred
to staff for consideration and further action as appropriate.
Carried
6.2 Memorandum from Project Management Office; Re: Town's Major Capital
Projects Update
Staff provided an overview of the memorandum highlighting aspects of
the five major capital projects currently underway. The Committee
inquired about the process to determine which projects are included in the
update report and suggested that a framework be established on how to
classify major capital projects. The Committee further suggested that the
overall status update, including key milestones, for the Financial System
and IT Strategic Plan Implementation projects also be included in the
attachment to the report.
The Committee inquired about the Library Square project with reference to
the number of change notices/orders and project schedule. Staff provided
clarification noting that a mitigation plan was in place to ensure the
project remains on budget and confirmed that the project is expected to
be completed on time.
The Committee inquired about the Fire Hall 4-5 project with reference to
the approved change orders and staff provided clarification.
The Committee inquired about the Financial System project with reference
to the system requirements and whether there would be capability for
future add-ons. Staff provided clarification regarding the consultant's
scope and subscription/cloud-based systems that allow for more timely
upgrades.
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Moved by Councillor Thompson
Seconded by Mayor Mrakas
1. That the memorandum regarding Town's Major Capital Projects
Update be received for information.
Carried
6.3 Memorandum from Director, Finance; Re: Financial System Project Update
Staff provided a brief overview of the memorandum and progress to date.
The Committee inquired about the estimated cost of staff time dedicated
to the project and staff provided clarification on the project management
and staffing resource requirements. The Committee inquired about the tax
billing system developed by the City of Mississauga and it was confirmed
that staff have received a demonstration of the system and the City of
Mississauga would provide full servicing and support for the system.
Moved by Councillor Thompson
Seconded by Mayor Mrakas
1. That the memorandum regarding Financial System Project Update be
received; and
2. That the Finance Advisory Committee comments regarding the
Financial System Project Update be received and referred to staff for
consideration and further action as appropriate.
Carried
7. New Business
None.
8. Adjournment
Moved by Councillor Thompson
Seconded by Mayor Mrakas
That the meeting be adjourned at 6:35 p.m.
Carried
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100 John West Way
Aurora, Ontario
L4G 6J1
(905) 727-3123
aurora.ca
Town of Aurora
Memorandum
Finance
Re: Prudent Investor Update
To: Finance Advisory Committee
From: Laura Sheardown, Financial Management Advisor
Date: June 8, 2021
Recommendation
1. That the memorandum regarding Prudent Investor Update be received; and
2. That the Finance Advisory Committee comments regarding Prudent Investor be
received and referred to staff for consideration and further action as appropriate.
Background
Investing under the Municipal Act, 2001 and O. Reg 438/97 is divided into the
prescribed list of securities which is more commonly referred to as the Legal List and
the Prudent Investor regime. The Prudent Investor regime gives the municipality access
to a wider variety of investments, but also includes a new governance model.
The most cost-effective manner through which the town is able to access the Prudent
Investor regime is through a Joint Investment Board (JIB) as establishing its own
Investment Board is not financially feasible. There is currently one joint investment
board in Ontario that the town can join, if the transition to Prudent Investor is approved.
In order to join a JIB, a municipality is required to relinquish its control and management
of any funds that it does not require immediately to the JIB who will 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.
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Prudent Investor Update
June 8, 2021 Page 2 of 2
On November 19, 2019, Council reviewed the benefits of the new Prudent Investor
regime – FS19-033 Prudent Investor Option Analysis and directed staff to proceed with
an in-depth review of the investment options and revised investment policy with FAC.
On January 28, 2020, FAC completed their review of the Prudent Investor regime and
directed staff to proceed to General Committee for their final approval of the Town
transitioning to the Prudent Investor regime as a founding member.
On February 18, 2020, staff presented report FIN20-006 to General Committee, however
the report was not approved as General Committee still had some concerns about
joining the JIB as a founding member and how exactly it would work. Staff agreed to
wait until the approval of an overarching Fiscal Strategy document that details how the
expansion of the current investment strategy would be supported by implementing the
Prudent Investor regime for the town.
Analysis
Aurora’s Fiscal Strategy has now been developed and is being brought forward to
Council for approval. The following are a list of the required steps that must be followed
for the town to implement a Prudent Investor regime:
Adoption of an Investment Policy Statement, which outlines the way the Town of
Aurora will invest under the Prudent Investor regime
Execution of the ONE JIB Agreement which establishes the relationship between
the Town of Aurora, ONE JIB and ONE Investment
Approval of Prudent Investor Enabling By-law, which will officially opt the
municipality into the Prudent Investor regime as at the Prudent Effective Date
As of December 31, 2020 the Town of Aurora’s total investment portfolio’s book value
was $129.8M.
Presently, staff are reviewing the current Investment Policy for proposed changes in
order to accommodate the adoption of the Prudent Investor regime and to reflect the
improvements to the capital budget process. The Investment Policy will be brough
forward to FAC for review at a future meeting.
Attachments
Not applicable
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