AGENDA - Finance Advisory Committee - 20220614Town of Aurora
Finance Advisory Committee
Meeting Agenda
Date:Tuesday, June 14, 2022
Time:5:45 p.m.
Location:Video Conference
Due to the COVID-19 pandemic, meetings will be available to the public via live stream only on
the Town’s YouTube Channel. To participate electronically, please visit aurora.ca/participation.
Pages
1.Call to Order
2.Land Acknowledgement
3.Approval of the Agenda
4.Declarations of Pecuniary Interest and General Nature Thereof
5.Receipt of the Minutes
5.1.Finance Advisory Committee Meeting Minutes of May 9, 2022 1
That the Finance Advisory Committee meeting minutes of May 9, 2022,
be received for information.
6.Delegations
7.Matters for Consideration
7.1.Memorandum from Senior Financial Management Advisor: Re: Debt
Management Policy
5
That the memorandum regarding Debt Management Policy be
received; and
1.
That the Finance Advisory Committee comments regarding Debt
Management Policy be received and referred to staff for
consideration and further action as appropriate.
2.
7.2.Memorandum from Manager, Financial Management; Re: Finance
Advisory Committee Council Term Summary
19
That the memorandum regarding Finance Advisory Committee
Council Term Summary be received for information.
1.
8.New Business
9.Adjournment
1
Town of Aurora
Finance Advisory Committee
Meeting Minutes
Date:
Time:
Location:
Monday, May 9, 2022
5:45 p.m.
Video Conference
Committee Members: Mayor Tom Mrakas (Chair)
Councillor Harold Kim
Councillor Michael Thompson
Other Attendees: Rachel Wainwright-van Kessel, Director of Finance
Jason Gaertner, Manager, Financial Management
Ishita Soneji, Council/Committee Coordinator
_____________________________________________________________________
1. Call to Order
The Chair called the meeting to order at 5:51 p.m.
2. Land Acknowledgement
The Committee acknowledged that the meeting took place on the traditional
territory of the Anishinaabe, the Haudenosaunee, and the Wendat peoples whose
presence here continues to this day. It was noted that Aurora is part of the treaty
lands of the Mississaugas of the Credit and the Williams Treaties First Nations,
and we thank them for sharing the land.
3. Approval of the Agenda
Moved by Councillor Thompson
Seconded by Councillor Kim
That the agenda as circulated by Legislative Services be approved.
Carried
Page 1 of 21
2
4. 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.
5. Receipt of the Minutes
5.1 Finance Advisory Committee Meeting Minutes of February 8, 2022
Moved by Councillor Kim
Seconded by Councillor Thompson
That the Finance Advisory Committee meeting minutes of February 8,
2022, be received for information.
Carried
6. Delegations
None.
7. Matters for Consideration
7.1 Memorandum from Financial Management Advisor; Re: 2022 Prudent
Investor Regime Review
Staff provided a brief overview of the memorandum. The Committee and
staff discussed about various aspects of the Prudent Investor Regime
including the appropriateness and timing of pursuing investing under this
regime based on the current condition of the investment market. The
Committee further sought clarification regarding the ONE JIB Investment
compensation process including costs and expenses and the liquidity
regulations and flexibility, and staff provided clarifications.
The Committee expressed overall support for the initiative and suggested
that information regarding historical performance record of Town
investments be provided in the upcoming report to General Committee.
Moved by Councillor Kim
Seconded by Councillor Thompson
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3
1. That the memorandum regarding 2022 Prudent Investor Regime
Review be received; and
2. That the Finance Advisory Committee comments regarding 2022
Prudent Investor Regime Review be received and referred to staff for
consideration and further action as appropriate.
Carried
7.2 Memorandum from Manager, Financial Management; Re: Town of Aurora
Debt Management Update
Staff provided an overview of the memorandum and summary of various
short-term and long-term debt financing initiatives. The Committee
expressed overall support for the initiatives. There was discussion
regarding the importance of debt financing in relation with the various
investment initiatives of the Town. The Committee sought clarification
regarding the factors affecting the status of debt obligation, and staff
noted that a Debt Management Policy is being developed which will
include further details regarding debt obligation and will be brought for the
Committee's input to the next Finance Advisory Committee meeting.
Moved by Councillor Thompson
Seconded by Councillor Kim
1. That the memorandum regarding Town of Aurora Debt Management
Update be received; and
2. That the Finance Advisory Committee comments regarding the Town
of Aurora Debt Management Update be received and referred to staff
for consideration and further action as appropriate.
Carried
7.3 Memorandum from Project Management Office; Re: Town's Major Capital
Projects Update
Staff provided an overview of the memorandum highlighting aspects of
the ongoing major capital projects. The Committee referred to the Aurora
Town Square Project and inquired about the consultant fees variance and
if the variance is intended to change, and staff agreed to follow up. The
Committee further inquired about the new targeted turn-over date for the
Aurora Public Library, and staff provided a response.
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4
The Committee referred to the Join Operations Centre additional work and
inquired about the impact on the budget status due to the upcoming
storage buildings sub-project, and staff agreed to follow up.
Moved by Councillor Kim
Seconded by Councillor Thompson
1. That the memorandum regarding Town’s Major Capital Projects
Update be received for information.
Carried
8. New Business
None.
9. Adjournment
Moved by Councillor Kim
Seconded by Councillor Thompson
That the meeting be adjourned at 6:47 p.m.
Carried
Page 4 of 21
100 John West Way
Aurora, Ontario
L4G 6J1
(905) 727-3123
aurora.ca
Town of Aurora
Memorandum
Finance
Re: Debt Management Policy
To: Finance Advisory Committee
From: Sandeep Dhillon, CPA CMA, Senior Financial Management Advisor
Date: June 14, 2022
Recommendation
1. That the memorandum regarding Debt Management Policy be received; and
2. That the Finance Advisory Committee comments regarding Debt Management Policy
be received and referred to staff for consideration and further action as appropriate.
Background
As outlined in the fiscal strategy approved in 2021, a debt management policy for the
Town should be developed to ensure stronger longer term financial management. This
memo provides an overview of the newly developed Debt Management Policy and its
alignment to the fiscal strategy.
Acquisition of debt and debentures can play a very important role in the Town’s
finances. Debt can provide liquidity to fund new assets, infrastructure and other capital
projects when the asset is built in advance of growth. The Town should continue to use
debt wisely over the long-term and understand that the prudent issuance of debt is an
efficient use of available financial resources.
Analysis
Debt Management Policy outlines the guidelines and controls for the issuance of debt
The purpose of the Debt Management policy is to establish financial guidelines and
appropriate controls for the issuance and management of debt for the Town of Aurora.
This policy establishes objectives, standards of care, authorized financing instruments,
Page 5 of 21
Debt Management Policy
June 14, 2022 Page 2 of 4
reporting requirements and responsibilities for the prudent financing of the Town’s
infrastructure needs.
The objectives of the debt policy are outlined below:
Adherence to Legislative Requirements
Long-term Debt Financing
Debt Financing Consideration Guidelines
Ensure Long-term Financial Flexibility and Sustainability
Aurora Debt Repayment Limit and Framework for Debt Management
Limit Financial Risk Exposure
Minimization of the Long-Term Cost of Financing
Suitable and Authorized Debt Financing Instruments
Financial Guarantees and Letters of Credit
Notice Period
Allocation of Excess Debt Financing to Capital Projects
The debt policy recommends an annual repayment limit of 10 percent which is lower than
legislated
The Annual Repayment Limit (ARL) is generally summarized as the maximum amount
that a municipality in Ontario can pay each year (without first going to the Local
Planning Appeal Tribunal) in principal and interest payments for long-term debt and
other long-term financial commitments.
For most municipalities (not including Toronto and York Region) the ARL is set at 25
percent of their annual own- source revenues (such as property taxes, user fees and
investment income), less their annual existing long-term debt service costs and
payments for other long-term financial obligations. Municipalities may only exceed their
ARL with the prior approval of the Local Planning Appeal Tribunal (LPAT). The Town’s
2022 ARL is $23,130,500 which has been calculated based on the data contained in the
2020 Financial Information Return.
Issuing debt to the level prescribed by the province is not sustainable. This policy sets a
self-imposed ARL limit at 10% of own-source revenues. As per the Ministry of Municipal
Affairs and Housing, Aurora’s annual debt repayment cost for 2022 is 2.1 percent of
own-source revenue. When adding in the recent approvals of debt, annual repayment
cost increase to 2.7 percent.
Page 6 of 21
Debt Management Policy
June 14, 2022 Page 3 of 4
Figure 1
Debt repayment forecast
The policy recommends a lower ARL limit because debt should only be considered to
fund growth related projects which are primarily funded by development charges.
Typically, the development charge revenues are collected over an extended period as
the new developments are built. There is a risk of stranded debt in the instances when
debt is issued based on provincial ARL target of 25% and the DC revenue forecast is
much lower than the projected annual debt payments. Therefore, to be fiscally
sustained town should not seek authority to exceed the 10% ARL limit and for
development charge funded debt, a minimum balance of one-year’s principal and
interest costs shall be maintained in DC reserves.
Page 7 of 21
Debt Management Policy
June 14, 2022 Page 4 of 4
Figure 2
Annual debt repayments by funding source
Reporting and adherence to the policy
Another important component for the debt management policy is reporting and
adherence to the policy by the Town staff. The implementation of the debt management
policy principles in acquiring new debt should be monitored through the annual budget
report and will be part of the reserve and debt management chapter of the budget
binder. The debt management policy should ensure that the Town’s fiscal impact year-
over-year is manageable and is well below the Town’s self-prescribed annual repayment
limit.
The Debt Management Policy Report will be presented to General Committee on July 5,
2022.
Attachments
Attachment 1: Debt Management Policy
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100 John West Way
Aurora, Ontario
L4G 6J1
(905) 727-3123
aurora.ca
Town of Aurora
Debt Management
Finance
Contact: Senior Financial Management Advisor, Finance
Approval Authority: Council
Effective: July 5, 2022
______________________________________________________________________________________
Background
Acquisition of debt and debentures can play a very important role in the Town’s
finances. Debt can provide liquidity to fund new assets and infrastructure and fund
other capital projects when the asset is built in advance of growth.
The fiscal strategy highlights that the debt financing can be used to manage the long-
term financial flexibility of the Town. Debt is a financing tool which can be used by the
Town to manage the timing difference between when a capital project is built and when
the funding for the project is received. The Town should continue to use debt wisely
over the long-term and understand that the prudent issuance of debt is an efficient use
of available financial resources.
Objective
The purpose of the Debt Management policy is to establish financial guidelines and
appropriate controls for the issuance and management of debt for the Town of Aurora.
This policy establishes objectives, standards of care, authorized financing instruments,
reporting requirements and responsibilities for the prudent financing of the Town’s
infrastructure needs.
Scope
This policy applies to the management of existing debt and all future debt financing that
may be issued or planned by the Town of Aurora.
Definitions
Amortizing Debentures: Debentures for which the total annual payment (principal and
interest) is approximately even throughout the life of the debenture issue.
Annual Repayment Limit: Maximum amount of annual debt servicing costs that the
Town can undertake or guarantee without seeking the approval of the Ontario Municipal
Board. The annual amount is provided by the Ministry of Municipal Affairs and Housing
and must be adjusted by the Treasurer in the prescribed manner prior to the
Attachment 1
Page 9 of 21
2
authorization by Council of a long-term debt or financial obligation. Regulation 403/02
provides a formula which limits the annual debt services costs to an amount equal to
25% of operating revenue (own sourced revenue which excludes development charges).
Annual Debt Financing Charges: The estimated amount of operating budget funds, in a
respective year’s approved budget, required to meet that year’s share of mandatory
payments in respect of outstanding debentures such as principal and interest.
Asset Management Reserve Fund: The funds set aside for the ongoing maintenance,
renewal and replacement of existing costs of capital infrastructure, such as the
renovations of a town facilities or road reconstruction.
Borrowing By-law: This by-law authorizes the municipality to proceed with the
acquisition of a specified amount of debt subject to defined terms and conditions. Debt
cannot be sought without a borrowing by-law.
Capital Financing: A generic term for the financing of capital assets using debt.
Construction Financing: A form of debt financing in which the issuer does not pay any
principal and/or interest for a period as defined by the terms of agreement.
Debenture: A formal written obligation to repay specific sums in certain dates. In the
case of a municipality, debentures are typically unsecured.
Debt: Any obligation for the payment of money. For Ontario municipalities, debt would
normally consist of debentures as well as either notes or cash loans from financial
institutions but could also include loans from reserves. Debentures issued by
Infrastructure Ontario are also considered as debt.
Infrastructure Ontario (IO) or its successor organization: An entity established by the
province of Ontario to provide Ontario municipalities, universities, and hospitals access
to alternative financing and procurement service and to longer-term fixed rate loans for
the building and renewal of public infrastructure.
Installment Debentures: Debentures of which a portion of the principal matures each
year throughout the life of the debenture issue.
Internal Borrowing: Borrowing of funds between various accounts.
Lease Financing Agreements: A lease allowing for the provision Municipal Capital
Facilities if the lease may or will require payment by the corporation beyond the current
term of Council.
Long-Term Debt: Any debt for which the repayment of any portion of the principal is due
beyond five years.
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3
Own-Source Revenue: Revenue for the fiscal year such as tax levy, user rates and user
fees but exclude:
a) Grants
b) Proceeds from the sale of property
c) Contributions or net transfers from a Reserve Fund or Reserve
Project Financing: the term is used when debt is used to finance a project.
Reserve Fund: means a fund that is segregated and restricted to meet a specific
purpose. Monies set aside for a Reserve Fund(s) must be deposited into a separate
general ledger account and the interest earned on those investments must be added to
the Reserve Fund(s).
Short-Term Debt: Any debt for which the repayment of all the principal is due within one
to five years.
Term Debentures: Debentures that are comprised of a combination of installment and
sinking fund debentures.
The Town: Refers to the Corporation of the Town of Aurora.
Variable Interest Rate Loan: Loans that provide one or more variations in the rate of
interest payable on the principal during the term of the debenture.
Policy
Council may, where it is deemed to be in the best interest of its taxpayers, approve the
issuance of debt for the Town’s municipal business. Issuing debt provides the flexibility
to proceed with planned capital projects sooner than waiting to collect the funding
source for the project in a reserve. Debt issuance should be viewed in combination with
long-term capital planning and reserve management as outlined in the Town’s fiscal
strategy.
The purpose of the debt management policy is to ensure that the Town should continue
to manage debt well and stay within the provincial regulations for how much debt a
municipality should issue now and in the future.
The objectives of the debt management policy are outlined below:
Adherence to Legislative Requirements
Debt issuance at the Town will only be undertaken in compliance with the provision of
the Municipal Act, 2001(the Act), specifically Part XIII – Debt and Investment, as well as
Ontario Regulation 403/02 (Debt and Financial Obligation Limits); Ontario Regulation
Page 11 of 21
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278\02 (Construction Financing); and Ontario Regulation 653\05 (Debt-Related
Financial Instruments and Financial Agreements), as amended.
Debentures cannot be issued to finance current operations. The use of money received
can be applied only for the purposes which the debentures were issued or for
repayment of outstanding temporary borrowing.
Requirements include but are not limited to the following:
1. The term of the capital financing will not exceed the lesser of 40 years or the
useful life of the underlying asset
2. Long-term debt will only be issued for capital projects
3. The term of temporary or short-term debt for operating purposes will not exceed
the current fiscal year
4. Prior to entering into a lease financing agreement, an analysis will be prepared
that assesses the costs as well as the financial and other risks associated with
the proposed lease in relation to other methods of financing
In accordance with the Act where there is a two-tier government structure, debt must be
issued by the upper tier. Therefore, all external debt is issued by The Regional
Municipality of York (“York Region”) on the Town’s behalf. The Town is responsible for
budgeting the annual debt repayment obligations, transferring the debt payment to York
Region, and managing the proceeds of the debentures. The Town’s Council must pass a
borrowing by-law to initiate the acquisition of external debt through its upper tier
municipality.
The Town may also issue debt directly through Infrastructure Ontario, a crown agency
of the Province of Ontario, with approval of Aurora’s Council and York Region’s Council.
However, the debt must still be in York Region’s name as they ultimately make the
debenture payments and reimburse Infrastructure Ontario for the debt payments.
A borrowing by-law must be approved prior to the upper tier municipality acquiring any
debt on the Town’s behalf.
Long-Term Debt Financing for Eligible Capital Works
Debt financing is a useful tool, careful consideration should be given to when debt
should be used and when it should not be. The debt charges for the long-term debt
financing are to be funded from the same source(s) as the original funding source(s) of
the capital project, i.e., if the capital project was originally to be funded from
development charges in the capital budget, any associated debt financing charges
would be funded from the development charge revenue in the operating budget.
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5
Debt Financing Consideration Guidelines
Staff should use the following guidelines when considering debt financing for various
asset categories:
Asset Management (Repair & Replacement)
Debt should not be used, except for in instances when there is an incremental revenue
source, or savings, resulting from the capital investment which will fully fund the
resultant debt financing repayment. I.e., Asset management project costs fully funded
by user fee revenues. In most scenarios asset management requirements should only
be funded through existing cash reserves or grants.
Growth Management
Debt could be considered when the asset is built in advance of growth. When making
investments in municipal infrastructure there are often times when a significant
investment is made in advance of the growth it is planned to serve. Development
charges that are used to pay for many growth projects including recreational facilities
(indoor and outdoor), fire, library, water, wastewater and roads. However, these
development charge revenues are collected over an extended period as the new
developments are built. If the Town were to wait for the collection of these revenues
prior to the installation of growth infrastructure, these necessary services will not be
available in time for the arrival of the new growth. Issuing debt can be helpful in
managing the timing difference between when the project is built and when the
revenues are received.
Master, Strategic Plans and Studies
Debt financing shall not be used to fund the creation of studies and plans. Plans and
studies identify future capital and operating projects to support the community. While
some of the projects that are recommended in the study or plan may need to consider
debt financing, the plan or study itself shall not be funded from debt.
Qualifying Criteria for the use of Debt
New debt financing acquisition shall be limited to:
1. New infrastructure requirements
2. Capital programs/facilities which are self-supporting, or financed by a dedicated
revenue stream or expenditures savings
3. Projects where the cost of deferring expenditures exceed debt servicing costs
4. Projects which are intergenerational in nature (i.e., large projects with long-term
benefits to future generations and who will paying for the debt through their
property taxes)
5. Apart from land, the estimated useful life of the asset is greater than five years
Page 13 of 21
6
6. The project has been approved by Council as part of the capital budget (or other
finance document/report) which includes approved debt financing authority.
Ensure Long-Term Financial Flexibility and Sustainability
Debt financing is a useful tool, careful consideration should be given to when debt
should be used. Debt financing can support intergenerational equity by aligning the debt
repayment with the timing of new growth coming into the community that will benefit
from it.
Prior to the issuance of any new capital debt financing, consideration will be given to
the impact on future ratepayers to achieve an appropriate balance between debt
financing and other forms of funding.
To the extent practicable, regular and/or ongoing capital expenditures and the current
portion of future asset management costs will be recovered on a "pay-as-you-go" basis
through rates, tax levy, user fees and/or reserve fund monies. Adequate reserves must
be developed and maintained for all capital assets owned by the Town to ensure long-
term financial flexibility. However, where long-term debt financing is required, due
consideration will be given to all forms of debt financing including debentures,
construction financing, and lease financing agreements.
Aurora debt repayment limit and framework for debt management
The Annual Repayment Limit legislated by the province reflects a significant portion of
The Town’s revenues including development charges which are excluded from the
calculation. Issuing debt to the level prescribed by the province is not sustainable. This
policy sets The Town’s limit at 10% of own-source revenues. Within this limit, debt will
be managed in a manner consistent with the Town’s long-term planning, financial and
management objectives as follows:
1. To monitor and control the impact of debt servicing costs on the approved
annual budget of any given year, and in consideration of the impact on future
ratepayers, the annual approved capital budget will demonstrate a balanced
approach amongst all forms of funding and external debt financing. Annual debt
charges will be the priority draw on available capital funding (development
charge or tax funding as appropriate) each year.
2. For development charge funded debt, a minimum balance of one-year’s principal
and interest costs shall be maintained in development charge reserves with
interfund borrowing between development charge reserves permitted. This is to
minimize the risk of a downturn in annual development charge collections.
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3. New debt which will be funded by development charge funds shall not be
acquired if the consolidated development charge reserve balance is negative.
4. When the debt is fully repaid on an asset (excluding development charge funded
debt), the debt servicing cost in the operating should be converted to an asset
management reserve contribution to support future asset management needs.
Limit Financial Risk Exposure
The capital debt financing program will be managed in a manner to limit, where
practicable, financial risk exposure. As a result, long-term debt will only be acquired with
an interest rate that will be fixed over its term. Whereas variable interest rates can be
considered only for short-term debt.
Capital financing leases have different financial and other risks than traditional debt
that must be considered and, where practicable, mitigated prior to its use. For example,
contingent payment obligations for items such as, lease termination provisions,
equipment loss, equipment replacement options, guarantees and indemnities.
Minimization of the Long-Term Cost of Financing
The timing, type and term of debt financing for an approved capital project will be
determined to minimize the Town’s overall long-term cost of financing. Typically,
shorter term (less than five years) debt financing interest rates are lower than longer
term interest rates.
To minimize interest costs over time:
1. Construction financing methods will be considered in accordance with Section 405 of
the Act. In advance of the issuance of debentures, shorter term temporary borrowing
for capital projects is allowed. The use of rolling short-term financing may be used
for a debenture approved capital project.
2. Cost reduction factors which influence the timing and type of debt to be considered
include:
a) Timing of costs and revenues related to a project and any offsetting cost savings
attributable to a project
b) The optimal usage of overall town cash
c) Capital reserve fund levels, over minimum balances, and the availability of
surplus
d) Reserve fund monies
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Suitable and Authorized Debt Financing Instruments
Short-Term – One Year to Five Years
Financing of operational needs for a period of less than one year pending the receipt of
taxes and other revenues, or interim financing of up to five years for capital assets
pending long-term capital financing may be from one or more of the following sources:
1) Reserves and reserve funds may be used as the primary source of short-term
financing provided that interest is paid at the prevailing market rate. These may be
used for both interim and medium-term for a period of no greater than five-year
financing if deemed cost effective or otherwise necessary. However, reserves and
reserve funds are for a defined purpose and must be available when that purpose
occurs or requires them.
2) Infrastructure Ontario (or its successor organizations) short-term advances pending
issuance of long-term debentures.
3) Construction financing
May be used for a period up to five years during construction or rehabilitation of
certain facilities from which a revenue stream is expected to be generated (e.g.,
water plant) upon its completion.
Long-Term – Greater than Five Years
Debt financing of assets for a period of greater than five years may be from any of the
following sources:
1. Debentures (including those issued to IO or its successor organizations), which may
be in the following form or a combination thereof:
Installment Debenture
Term Debenture
Amortizing Debenture
2. Lease Financing Agreements (capital financing leases)
May be used when it provides material and measurable benefits compared with other
forms of financing.
3. Long-Term Bank Loans (Variable or floating rate)
These may be used if deemed cost effective or otherwise necessary.
Financial Guarantees and Letters of Credit
Financial guarantees and/or letters of credit provided by the Town, will be considered as
debt, and will be governed by this policy.
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Notice Period
The Town recognizes that, to ensure orderly placement of a debenture issue within
capital markets, York Region requires a lengthy notice period prior to the issuance. A
minimum of four to five months notice is required by York Region, excluding the time
required for local Council to approve a borrowing by-law. However, York Region typically
sends out an email communication twice a year to survey for any debenture
requirements as York Region typically issues debentures twice per year. This advanced
notice also allows York Region to work with the Town to ensure that the appropriate
borrowing by-law is obtained ahead of a scheduled debt issuance.
Allocation of Excess Debt Financing to Capital Projects
Any arising capital project excess debt financing can be used in three ways, noted in
order of priority:
1. Apply excess debt financing to another debt eligible capital project in addition to
the already approved debt authority;
2. Reduce Future Debt: Apply excess debt authority to a future debt eligible project
to replace part of the already approved debt authority, therefore reducing overall
debt financing required;
3. Reduce Debt Charges: use excess debt financing to reduce Debt charges.
Reporting
The Treasurer and Manager, Financial Management will provide an annual report to the
Council on the status of Town’s debt. Long-Term debt will be reaffirmed by Council as
part of the annual budget process.
Responsibilities
All Staff
To adhere to the debt management policy and its associated guidelines.
Finance
The Treasurer will have the overall responsibility for the capital financing program of the
Town. The Manager, Financial Management normally will have responsibility for
directing/implementing the activities of the capital financing program and the
establishment of procedures consistent with this policy.
The Treasurer and the Financial Management division is responsible for developing
recommendations and appropriate advice to Council on debt financing decisions and
administer any approved debt financing in conjunction with York Region.
Council
Council will have the authority to approve any new debt and the accompanying by-law
for the Town.
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Monitoring and Compliance
The implementation of the debt management policy principles in acquiring new debt
should be monitored through the annual report to the Council and at the time when a
new debt authority for capital financing is approved. The debt management policy
should ensure that the Town’s fiscal impact year-over-year is manageable and is well
below the Town’s self-prescribed annual repayment limit.
References/Codes
• Hyperlink to supporting legislation
• Hyperlink to related policies
• Hyperlink to process map/ info graphic/ any other supporting documentation
Review Timeline
This policy will be reviewed 2 years after the initial approval date by the Treasurer. If the
Treasurer recommends changes to the policy, they will be brought forward to Council
for approval.
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100 John West Way
Aurora, Ontario
L4G 6J1
(905) 727-3123
aurora.ca
Town of Aurora
Memorandum
Finance
Re: Finance Advisory Committee Council Term Summary
To: Finance Advisory Committee
From: Jason Gaertner, Manager Financial Management
Date: June 14, 2022
Recommendation
1. That the memorandum regarding Finance Advisory Committee Council Term
Summary be received for information.
Background
The Finance Advisory Committee’s term aligns with that of Council covering the period
from 2018 to 2022. The primary function of the Finance Advisory Committee is to assist
Council, staff, and the Corporation in fulfilling their fiscal responsibilities by reviewing
and recommending on the long-range corporate financial planning process, capital
planning initiatives, and fiscal policy matters. The Committee’s mandate includes
advance input into the annual budgeting processes to help enhance reporting and
analysis to ensure that the Town is delivering values, programs, and services in the
most effective and efficient manner.
Analysis
Over the Council term the Finance Advisory Committee has reviewed and provided input
on many items.
All departmental detailed budget reviews were completed
As per the Town’s budget process document, the Committee performs a detailed review
of each department and community service partner’s core operating budgets during the
Council term. These detailed reviews allow for a more strategic review of the Town’s
proposed operating budgets by the Budget Committee.
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Finance Advisory Committee Council Term Summary
June 14, 2022 Page 2 of 3
The Committee has now completed the detailed budget review for all departments and
community service partners including:
Aurora Public Library (May 2019)
Aurora Historical Society (June 2019)
Corporate Services (September 2019)
Community Services (January 2020)
Planning & Development Services (September 2020)
Aurora Cultural Centre (October 2020)
Operational Services (November 2020)
Finance (December 2020)
Council Administration & the Office of the CAO (January 2021)
Corporate Revenues & Expenses (February 2021)
Over the course of these detailed reviews any arising budget concerns were explored by
the Committee and were addressed as part of an upcoming budget process.
The Finance Advisory Committee examined and provided feedback on many important
subject areas
Over the duration of its term, the Finance Advisory Committee has reviewed and
provided its feedback and/or endorsement on multiple subjects including:
1) Recommendations to Council’s updated Budget Principles and Budget Process
documentation including:
a. Improvements to the budget process based on a reflection of the 2019
budget process
b. Endorsement of the Town’s first multi-year budget framework
2) Exploration of the Town’s participation under a prudent investor regime as a
member of the ONE Joint Investment Board.
3) Reviewed and provided input in support of the Town’s updated recreational
program pricing policies.
4) Annual reviews and endorsement of the Council’s budget direction to staff.
5) Provided feedback on the Town’s possible adoption of an optional Small
Business property tax sub-class.
6) Reviewed and provided feedback on the Fiscal Strategy and accompanying
Strategic Action Plan which will ensure the long-term financial sustainability for
the Town.
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Finance Advisory Committee Council Term Summary
June 14, 2022 Page 3 of 3
7) Received an update and provided important feedback on the Town’s
procurement modernization project.
8) Examined the Town’s property tax and water bill payment options.
9) Discussed the financial feasibility of the Town’s adoption of a Community
Benefits Charge bylaw.
10) The on-going monitoring of the Town’s delivery of its major capital projects
including:
a. New Fire Hall 4-5
b. Joint Operations Centre Additional Work
c. Library Square
d. 89 Mosley (Armoury) Renovation
e. Financial system replacement
11) The on-going monitoring of the Town’s internal audit program.
The Finance Advisory Committee’s feedback to these many different subject areas
resulted in important material enhancements to final product outputs and/or to
subsequent reports to Council.
Attachments
None
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