Agenda - Finance Advisory Committee - 20240611Town of Aurora
Finance Advisory Committee
Meeting Agenda
Date:Tuesday, June 11, 2024
Time:5:45 p.m.
Location:Holland Room, Aurora Town Hall
Meetings are available to the public in person and via live stream on the Town’s YouTube channel.
To participate, 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 14, 2024 1
That the Finance Advisory Committee Meeting Minutes of May
14, 2024, be received for information.
1.
6.Delegations
7.Matters for Consideration
7.1 Memorandum from Financial Management Advisor; Re: Budget Review
Aurora Public Library
5
That the memorandum regarding the Budget Review of the
Aurora Public Library be received; and
1.
That the Finance Advisory Committee comments regarding the
Budget Review of the Aurora Public Library be received and
referred to staff for consideration and further action as
appropriate.
2.
7.2 Memorandum from Financial Management Advisor; Re: Community
Partner Reserve Fund Policy
22
That the memorandum regarding Community Partners Reserves
Management Policy be received; and
1.
That the Finance Advisory Committee comments regarding
Community Partners Reserve Management Policy be received
and referred to staff for consideration and further action as
appropriate.
2.
8.New Business
9.Adjournment
Town of Aurora
Finance Advisory Committee
Meeting Minutes
Date:
Time:
Location:
Tuesday, May 14, 2024
5:45 p.m.
Holland Room, Aurora Town Hall
Committee Members: Mayor Tom Mrakas (Chair)
Councillor Michael Thompson
Councillor Ron Weese
Other Attendees: Doug Nadorozny, Chief Administrative Officer
Rachel Wainwright-van Kessel, Director, Finance
Jason Gaertner, Manager, Financial Management
Sandeep Dhillon, Advisor, Financial Management
Emily Freitas, Council/Committee Coordinator
_____________________________________________________________________
1. Call to Order
The Chair called the meeting to order at 5:46 p.m.
2. Land Acknowledgement
The Committee acknowledged that the meeting took place on Anishinaabe lands,
the traditional and treaty territory of the Chippewas of Georgina Island,
recognizing the many other Nations whose presence here continues to this day,
the special relationship the Chippewas have with the lands and waters of this
territory, and that Aurora has shared responsibility for the stewardship of these
lands and waters. It was noted that Aurora is part of the treaty lands of the
Mississaugas and Chippewas, recognized through Treaty #13 and the Williams
Treaties of 1923.
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Finance Advisory Committee Meeting Minutes
Tuesday, May 14, 2024 2
3. Approval of the Agenda
Moved by Ron Weese
Seconded by Councillor Thompson
That the agenda as circulated by Legislative Services be approved.
Carried
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 April 9, 2024
Moved by Councillor Thompson
Seconded by Ron Weese
1. That the Finance Advisory Committee Meeting Minutes of April 9,
2024, be received for information.
Carried
6. Delegations
None.
7. Matters for Consideration
7.1 Memorandum from Financial Management Advisor; Re: Water and
Wastewater Rate Study Update
Staff provided a presentation on its Water and Wastewater Rate Study,
presenting an overview of the current rate structure and proposed rate
structure, including; the existing customer base, residential and
commercial consumption patterns, challenges of existing rate structures
such as inactive customers and revenue dependency upon the level of
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Finance Advisory Committee Meeting Minutes
Tuesday, May 14, 2024 3
water consumption each year. Staff’s proposed multiple rate structures
that strived to promote greater fairness to all residents and businesses, to
encourage water conservation and reduce the Town’s reliance upon a
volumetric driver.
The Committee and Staff discussed the proposed rate structures which
included various fixed and/or variable rate options; including staff’s
recommended rate structure option which consisted of a fixed rate plus
two tier variable rate. In its discussion, the committee examined annual
water consumption by customer type, as well as the benefits and risks
associated with weather patterns experienced. The committee requested
staff undertake a further sensitivity analysis of its proposed two-tier
variable rates to minimize their impact on water users.
Moved by Councillor Thompson
Seconded by Ron Weese
1. That the memorandum regarding Water and Wastewater Rate study be
received; and
2. That the Finance Advisory Committee comments regarding water and
wastewater rate study be received and referred to staff for
consideration and further action as appropriate.
Carried
7.2 Memorandum from Financial Management Manager; Re: Budget Review of
the Finance Department and Corporate Accounts
The Committee discussed the budget review of the Finance Department
and Corporate Accounts and the increasing cost of maintenance and
support for IT and alternatives to mitigate the cost. Staff highlighted,
investing strategically in IT, the software costs and subscription fees
including Microsoft Licensing, and how more online services are being
provided through the website for residents as a result.
The Committee also discussed with Staff transfers from reserves and
debt management, the operating surplus, and revenue captured.
Moved by Councillor Thompson
Seconded by Ron Weese
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Finance Advisory Committee Meeting Minutes
Tuesday, May 14, 2024 4
1. That the memorandum regarding the Budget Review of the Finance
Department and Corporate Accounts be received; and
2. That the Finance Advisory Committee comments regarding the Budget
Review of the Finance Department and Corporate Accounts be
received and referred to staff for consideration and further action as
appropriate.
Carried
8. New Business
None.
9. Adjournment
Moved by Ron Weese
Seconded by Councillor Thompson
That the meeting be adjourned at 6:18 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: Memo-Budget Review Aurora Public Library
To: Finance Advisory Committee
From: Tracy Evans, Advisor, Financial Management
Date: June 11, 2024
Recommendation
1. That the memorandum regarding the Budget Review of the Aurora Public Library be
received; and
2. That the Finance Advisory Committee comments regarding the Budget Review of the
Aurora Public Library be received and referred to staff for consideration and further
action as appropriate.
Background
As per its budget process document, the Finance Advisory Committee is required to
undertake a detailed review of each department and community service partner’s core
operating budgets prior to the conclusion of the Council term. These detailed reviews
allow for a more strategic review of the Town’s draft operating budgets by the Budget
Committee. During the course of these detailed reviews any arising budget concern
areas can be explored and addressed as part of a future Town budget process.
Attachments
Attachment 1 – APL FAC Memo June 11, 2024
Attachment 2 – APL Financial Line By Line Detail
Attachment 3 – 2022 Audited Financial Statements-FAC-LB
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Attachment 1Page 6 of 29
AURORA PUBLIC LIBRARY OPERATING
LINE BY LINE
2021
ACTUAL
2022
ACTUAL
2023
ACTUAL
2024
BUDGET
2025
BUDGET
2026
BUDGET
SALARIES 2,071,197 2,409,222 2,273,605 2,567,028 2,626,068 2,687,916
BENEFITS 621,957 530,887 564,625 664,972 683,932 701,084
2,693,154 2,940,109 2,838,230 3,232,000 3,310,000 3,389,000
COLLECTIONS -DIGITAL 220,997 261,009 360,971 190,000 190,000 190,000
COLLECTION - PHYSICAL 191,056 180,222 180,021 160,000 160,000 160,000
COLLECTION - PERIODICALS 14,902 13,032 15,084 10,000 10,000 10,000
426,955 454,264 556,076 360,000 360,000 360,000
PROCESSING SUPPLIES 27,700 19,092 4,205 2,000 2,000 2,000
CATALOGUING SERVICES 28,310 25,079 25,878 27,000 27,000 27,000
ILLO 50 20 399 1,000 1,000 1,000
56,060 44,191 30,482 30,000 30,000 30,000
COMPUTER SUPPLIES 11,011 7,461 3,179 8,000 8,000 8,000
INTERNET 11,781 16,251 10,569 12,000 12,000 12,000
EQUIPMENT REPAIRS 4,853 1,442 1,143 0 0 0
SOFTWARE MTNCE/SUPPORT 182,928 144,972 198,251 190,000 195,000 200,000
210,574 170,127 213,142 210,000 215,000 220,000
PROGRAM SUPPLIES 29,619 26,518 28,127 25,000 25,000 25,000
RECEPTIONS 931 2,000 2,000 2,000
PRINTING 9,712 12,229 12,961 15,000 15,000 15,000
PUBLIC RELATIONS 7,458 8,661 8,143 8,000 8,000 8,000
17,170 20,889 22,035 25,000 25,000 25,000
OFFICE SUPPLIES 270 5,614 4,607 4,000 4,000 4,000
EQUIPMENT & FURNISHINGS 6,385 1,352 4,113 2,000 2,000 2,000
TELEPHONE LINES 17,517 16,034 16,274 12,000 12,000 12,000
EQUIPMENT RENTALS 10,978 19,266 15,680 15,000 15,000 15,000
ADVERTISING 297 297 410 1,000 1,000 1,000
POSTAGE -586 -1,012 -1,090 1,000 1,000 1,000
PRINTING 0 518 1,000 1,000 1,000
COURIER 4,164 3,931 6,758 4,000 4,000 4,000
39,026 45,482 47,270 40,000 40,000 40,000
HEALTH & SAFETY PROGRAM 8,977 1,082 831 1,000 1,000 1,000
COURSES & SEMINARS 8,964 10,722 8,417 10,000 10,000 10,000
BOARD TRAINING & DEVELOPMENT 1,601 0 894 500 500 500
MILEAGE 361 264 3,432 2,000 2,000 2,000
VEHICLE 1,392 1,392 1,500 1,500 1,500
19,904 13,460 14,966 15,000 15,000 15,000
CONSULTING 1,832 0 5,000 5,000 5,000
AUDIT FEES 3,236 5,171 4,104 5,000 5,000 5,000
GENERAL LEGAL 16,326 3,661 4,698 5,000 5,000 5,000
MAINTENANCE CONTRACTS 710 370 488 1,000 1,000 1,000
MEMBERSHIPS 3,965 4,337 8,646 4,000 4,000 4,000
BUSINESS PLAN INITIATIVES 35,387 0 12,439 5,000 5,000 5,000
CONTINGENCY 7,599 712 1,338 2,000 2,000 2,000
RECEPTIONS 669 2,900 4,493 3,000 3,000 3,000
67,892 18,982 36,206 30,000 30,000 30,000
CONT'N TO RESERVE 130,000 180,000 200,000 220,000 220,000 220,000
TOTAL EXPENDITURES 3,690,354 3,914,022 3,986,534 4,187,000 4,270,000 4,354,000
REVENUES
PROCTORING FEES 71
MEMBERSHIP FEES 360 3,210
SERVICE CHARGES 25 232 510 500 500 500
LOST & DAMAGED FEES 2,326 3,583 4,482 4,000 4,000 4,000
PRINTING FEES 541 4,500 7,007 9,500 9,500 9,500
PILOT 345 2,995
PROVINCIAL OPERATING GRANT 44,138 44,138 45,422 44,000 44,000 44,000
OTHER GRANTS 1,284 1,284 0 1,000 1,000 1,000
DONATIONS 335 485 1,142
INVESTMENT INCOME 288 658 1,340 1,000 1,000 1,000
BOOK SALES 2,705 3,174 3,000 3,000 3,000
FINES 426 1,762 1,463 2,000 2,000 2,000
RESERVES 16,320 20,427 14,512
TOTAL REVENUES 65,683 80,479 85,328 65,000 65,000 65,000
MUNICIPAL REVENUE 3,624,671 3,833,543 3,901,206 4,122,000 4,205,000 4,289,000
TOTAL REVENUE 3,690,354 3,914,022 3,986,534 4,187,000 4,270,000 4,354,000
Attachment #2Page 7 of 29
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100 John West Way
Aurora, Ontario
L4G 6J1
(905) 727-3123
aurora.ca
Town of Aurora
Memorandum
Finance
Re: Community Partner Reserve Fund Policy
To: Finance Advisory Committee
From: Sandeep Dhillon, Senior Advisor, Financial Management
Date: June 11, 2024
Recommendation
1. That the memorandum regarding Community Partners Reserves Management Policy
be received; and
2. That the Finance Advisory Committee comments regarding Community Partners
Reserve Management Policy be received and referred to staff for consideration and
further action as appropriate.
Background
Reserves are one of the most important tools available to Aurora’s Community Partners
for achieving financial sustainability. Reserves play a key role to manage the
unexpected economic impacts to their operating budget when required. Reserves are
meant to pay for emergencies when expected income falls or when unexpected
expenses occur. Currently, Town’s Community Partner’s manage their own reserves.
However, a need to establish Reserve Management Policy for the Town’s Community
partners was identified during the 2024 budget approval process.
This memo provides an overview of the newly developed reserve management policy
for the Town’s Community Partners.
Page 22 of 29
Community Partner Reserve Management Policy
June 11, 2024 Page 2 of 3
Analysis
Community Partners Reserve Management Policy outlines the guidelines and controls for
the creation and management of reserves
The purpose of the reserve management policy is to establish financial guidelines and
appropriate controls for the administration and management of reserves for the Town
of Aurora. This policy provides regulations and guidelines on the objectives, standards
of care, reporting requirements and responsibilities for the creation and management of
reserves.
The objectives of the reserves management policy are stated below:
Classification of type of reserves maintained by Community Partner
Guidelines associated with the creation of reserves
Recommended guidelines for the management of reserves such as:
o Contributions to/withdrawal from reserves
o Temporary interfund lending between reserves
o Closing of reserves
o Management of annual surplus/deficit
Roles and responsibilities of Town staff, Community Partner and Council
members
Reporting and adherence to the guidelines of the reserve policy
Community Partners should set aside enough operating reserves to fund no more than
six months of regular operations
Any net operating budget surplus should be contributed to operating reserve until
operating reserve balance reaches the recommended target balance equivalent to cost
of its operations for a period of six months.
Once the recommended reserve ceiling has been met, any excess proceeds over and
above this amount should be applied against the community partner’s identified
operating requisition amount from the Town for the following year. An exception to this
would be if the Community Partner has future unfunded asset management obligations.
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Community Partner Reserve Management Policy
June 11, 2024 Page 3 of 3
Audited financial statements must be provided by community partners with revenue
exceeding $250,000
Community Partners with annual revenue exceeding $250,000 must provide audited
Financial Statements and those where it is required by legislation. Those not required to
provide audited statement may be subject to further reviews by Town staff.
Attachments
Attachment 1 – Community Partner Reserve Management Policy
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100 John West Way
Aurora, Ontario
L4G 6J1
(905) 727-3123
aurora.ca
Town of Aurora
Community Partner Reserve
Management Policy
Contact: Senior Financial Management Advisor, Finance
Approval Authority: Council
Effective: July 2, 2024
Revised: July 3, 2027
______________________________________________________________________________________
Community Partner Reserve Management Policy
Purpose
The purpose of the Community Partners Reserve Management Policy is to establish
financial guidelines and appropriate controls for the administration of Town of Aurora
Community Partner reserves.
This policy provides regulations and guidelines for appropriate reserve balances that
ensure financial stability, reporting requirements and for the management of any excess
reserve balance of the Town’s community partners reserves.
Scope
The scope of this policy applies to Town’s community partners which receive a budget
allocation (i.e. excludes community grants and other grant opportunities as they have
their own process) from Town with the exception to the Central York Fire Services and
Aurora Public Library as this relationship is already governed by an existing
comprehensive agreement with The Town of Aurora.
Definitions
Annual Surplus: The excess of revenues over expenses in a given year.
Community Partners: Aurora’s community partners which are provided Operating
Budget funding, include:
• Aurora Business Improvement Area
• Aurora Cultural Centre
• Aurora Historical Society
• Aurora Sport Hall of Fame
• Aurora Economic Development Corporation
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2
Reserve Funds: Funds that have been set aside for a future event either pursuant to a
by-law of the municipality, a decision by a community partner board, a contractual
obligation, or a requirement of provincial legislation. Reserve funds are either
“discretionary” being those set aside by Council or a community partner board of its
own volition or “statutory” or “obligatory” being those required to be set aside by Council
or a community partner board by virtue of a requirement of provincial or federal statute.
Operating Stabilization/Contingency Reserve: Operating Stabilization/contingency
Reserve are funds set aside to pay for the temporary revenue shortfalls or unforeseen
expenditures caused by significant fluctuations in the economy and provide
contingency funds for a range of contingent or unknown liabilities.
Capital Reserve Fund: Funds set aside in support of community partner capital
expenditure needs such as capital asset rehabilitation and replacement.
Policy
Reserves play a vital role in maintaining financial sustainability for the Town’s
community partner’s financial health. Reserves also play a key role in the management
of unexpected economic impacts to Community Partner operating budget when
required. Reserves are meant to pay for emergencies when expected income falls or
when unexpected expenses occur. By taking a long-term view of reserves, community
partners are able to determine their necessary annual reserve contributions to ensure
future asset management capital plan needs are met, while minimizing the annual
operating impact. The policy outlines the following guidelines and appropriate controls
for the administration of Community Partners reserves such as:
Types of Reserves
Operating Reserves
Operating reserves are funds intended to keep Community Partners monthly operations
going (payment of overhead like payroll, program costs, and other normal monthly
expenses) in an instance of a revenue shortfall or other emergency challenge. As a best
practice, Community Partners should set aside enough operating reserves to fund no
more than six months of regular operations.
Operating reserves may take other forms as well serving more specific purposes such
as holding other dedicated revenues collected by a community partner for specific
intent.
Capital Reserves
Capital reserves are funds set aside to pay for the future capital needs of a Community
Partner for physical assets, such as a vehicle or buildings etc.
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Community Partners should assess their unique needs and plan for both expected and
unexpected replacement costs. This strategic financial stewardship brings stability and
decreases stress on both Community Partner’s and Town of Aurora.
A community partner’s need for a capital reserve will be determined by the nature and
extent of their capital asset holdings.
Establishing Reserves
A new reserve should only be established if it cannot be accommodated within an
existing community partner reserve and/or all other possible alternatives have already
been considered.
All community partner reserves need to be approved by their respective board. The
Town should be notified of all existing and new reserve creations. The reserve
notification should include the reserve name, the board’s resolution to create the
reserve, and include a financial plan which identifies the target funding level (if
applicable), funding sources and projected disbursements (when practicable) to meet
planned future obligations, and other relevant information where applicable. In
consideration of the administrative workload the Community Partners will strive to
minimize the number of reserves.
Closing Reserves
Should a community partner close a reserve, the Town should be notified of this
decision. The notification should include the name of the reserve closed, the board’s
resolution, the reason for closure, as well as how any remaining reserve balance was
dissolved.
Inter-fund lending
Community partner temporary inter-fund lending between reserves is permitted to
temporarily finance capital expenditures or operating cash flow deficiencies to avoid
external temporary borrowing costs. However, the following conditions must be met:
• Borrowing will not adversely affect the intended purpose of the reserve;
• A plan to repay the reserve within a reasonable timeframe, based on the nature of
the loan and ability to repay is required;
Contributions to/withdrawals from Reserves
All contributions to and/or withdrawals from reserves shall be approved by each
applicable community partner board. A record of all reserve transfers should be
maintained by each community partner.
If applicable, community partners should include any planned contributions to reserves
as part of their annual operating budget.
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Annual Surplus/Deficit
The primary funding source of an operating reserve is net operating budget surpluses.
Should a community partner have an established operating reserve, any net operating
budget surplus should be contributed to this reserve until such point its balance reaches
the recommended target balance equivalent to cost of its operations for a period of six
months.
Once the recommended reserve ceiling has been met, any excess proceeds over and
above this amount should be applied against the community partner’s identified
operating requisition amount from the town for the following year. An exception to this
would be if the Community Partner has future unfunded asset management obligations.
However, a record of this board decision should be maintained.
The Library Board’s surplus will continue to be governed by the Town’s surplus/deficit
management by-law.
Responsibilities
Council
Council shall:
• Receive an update of all community partner board reserve decisions and offer
feedback
• Reserve the right to overrule a community partner board reserve creation or
reserve management strategy.
Community Partners
• Overall responsibility for the management of reserves.
• Accurate reporting of reserve balances to the Council and Town of Aurora
Director of Finance through the budget process.
• To comply with the guidelines outlined in the Community Partners Reserve
Management policy for the management of reserves.
• Each year as part of annual budget presentation provide a reserve continuity
summary to Council that clearly outlines all reserve activity for the past year.
Monitoring and Compliance
The implementation of the Community Partners Reserve Management Policy should be
monitored through:
• Annual updates as part of the budget to Council of each community partner’s
reserve structure; as well as annual updates on each reserve’s activity over the
course of the past year.
• Annual Financial Statements: Community Partners with annual revenue
exceeding $250,000 must provide audited Financial Statements and those where
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it is required by legislation. Those not required to provide audited statement may
be subject to further reviews by Town staff.
• As part of FAC reviews of community partner financial health, the FAC will have
the opportunity to discuss in detail established board reserve strategies, and
other best practices as they align with this policy and its regulations.
• Staff will monitor community partner compliance with this policy on an ongoing
basis.
References
• Fiscal Strategy
Review Timeline
This policy will be reviewed 2 years after the initial approval date.
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