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Agenda - Finance Advisory Committee - 20230912Town of Aurora Finance Advisory Committee Meeting Agenda Date:Tuesday, September 12, 2023 Time:5:45 p.m. Location:Holland Room 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 June 13, 2023 1 That the Finance Advisory Committee meeting minutes of June 13, 2023, be received for information. 1. 6.Delegations 7.Matters for Consideration 7.1 Memorandum from Manager, Financial Management: Re: Finance Advisory Committee Updated 2-Year Work Plan 6 That the memorandum regarding Finance Advisory Committee Updated 2-Year Work Plan be received; and 1. That the Finance Advisory Committee comments regarding Finance Advisory Committee Updated 2-Year Work Plan be received and referred to staff for consideration and further action as appropriate. 2. 7.2 Memorandum from Financial Management Advisor; Re: Budget Review of Council Administration and Office of the CAO 10 That the memorandum regarding Budget Review of Council Administration and Office of the CAO be received; and 1. That the Finance Advisory Committee comments regarding Budget Review of Council Administration and Office of the CAO be received and referred to staff for consideration and further action as appropriate. 2. 7.3 Memorandum from Project Management Office; Re: Town's Major Capital Projects Performance Update 22 That the memorandum regarding Town’s Major Capital Projects Performance Update be received for information. 1. 8.New Business 9.Adjournment Town of Aurora Finance Advisory Committee Meeting Minutes Date: Time: Location: Tuesday, June 13, 2023 5:45 p.m. Holland Room, Aurora Town Hall Committee Members: Mayor Tom Mrakas (Chair) Councillor Michael Thompson (Vice Chair) Councillor Ron Weese Other Attendees: Councillor Wendy Gaertner Councillor Rachel Gilliland Doug Nadorozny, Chief Administrative Officer Robin McDougall, Director, Community Services Rachel Wainwright-van Kessel, Director, Finance Jason Gaertner, Manager, Financial Management Phil Rose, Manager, Cultural Services Palak Mehta, Council/Committee Coordinator _____________________________________________________________________ 1. Call to Order Mayor Mrakas called the meeting to order at 5:45 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. Page 1 of 26 Finance Advisory Committee Meeting Minutes Tuesday, June 13, 2023 2 3. Approval of the Agenda Moved by Councillor 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 May 9, 2023 Moved by Councillor Weese Seconded by Councillor Thompson 1. That the Finance Advisory Committee Meeting Minutes of May 9, 2023 be received for information. Carried 6. Delegations None. 7. Matters for Consideration 7.1 Memorandum from Manager of Cultural Services; Re: Aurora Town Square Budget Update Phil Rose, Manager, Cultural Services, accompanied by Robin McDougall, Director, Community Services, presented an overview of the memorandum outlining relevant background information, the original business plan and financial strategy for Town Square approved in March 2019, which was based upon a Municipal Services Board (MSB) model, versus a Not-for- Profit/Municipal Hybrid Model, budget summary and strategy. Page 2 of 26 Finance Advisory Committee Meeting Minutes Tuesday, June 13, 2023 3 The Committee inquired about the key expenditure and revenue differences between the original business and the proposed version. Feedback was provided to staff asking that more information about the Aurora Cultural Centre (ACC) and Aurora Public Library, community partner organizations, and differences between the Municipal Services MSB model and Not-for-Profit/Municipal Hybrid model be included in a future report. The Committee also requested additional details regarding the breakdown of the net incremental funding requirement. The Committee sought clarity of the Aurora Town Square’s (ATS) revenue model and suggested reviewing its business plan and projections over a 2 to 3-year planning horizon would be more beneficial in understanding the ATS’ cost recovery performance. The Committee inquired about the potential effects on the Town’s service agreement with the ACC and sought clarification on the ACC’s and Library’s roles in the ATS’ ongoing operations. Staff provided information regarding ongoing discussions with the ACC about the business plan and financial strategy, resources needed to operate the Town Square facility, and the Cultural Services Agreement. The Committee inquired if the noted $350,000 pressure included any additional resources for the ACC. Staff advised that the draft multi-year budget to be presented to Council in the fall will include incremental requirements for the ACC, and that there will be opportunities for the ACC to consider service expansion possibilities and all associated incremental costs. The Committee and staff further discussed the inclusion of donations and public sponsorships revenues in the operating budget. Staff confirmed that no proceeds of this nature have been included in the presented budget plan. Staff advised that as per previous Council direction, these proceeds have been allocated in support of the ATS’ capital costs. The Committee inquired about the operating budget, and staff provided a breakdown of the approved Aurora Museum and Archives and facility funding. The Committee also provided feedback on the number of events being planned identified in the budget. Page 3 of 26 Finance Advisory Committee Meeting Minutes Tuesday, June 13, 2023 4 Moved by Councillor Thompson Seconded by Councillor Weese 1. That the memorandum regarding the Aurora Town Square Budget Update be received; and 2. That the Finance Advisory Committee comments regarding the Aurora Town Square Budget Update be received and referred to staff for consideration and further action as appropriate. Carried 7.2 Memorandum from Project Management Office; Re: Town's Major Capital Projects Update The Committee and staff discussed various aspects of the Town Square project including: the remaining project scope, accuracy of project timelines regarding substantial report completion by summer 2023 and total project completion by fall 2023, and the potential budget overruns due to post-project claims that Chandos will submit due to the schedule extension. The Committee and staff further discussed the financial system project, and staff confirmed that Phase III(a) and its implementation was completed on May 31, 2023. Moved by Councillor Weese Seconded by Councillor Thompson 1. That the memorandum regarding Town’s Major Capital Projects Update be received; and 2. That the Finance Advisory Committee comments regarding the Town’s Major Capital Projects Update be received and referred to staff for consideration and further action as appropriate. Carried 7.3 Memorandum from Senior Financial Management Advisor; Re: Reserve Management Policy Staff provided an overview of the memorandum regarding the Reserve Management Policy, including items recommended as part of the fiscal Page 4 of 26 Finance Advisory Committee Meeting Minutes Tuesday, June 13, 2023 5 strategy as it relates to the reserve management pillar, documenting practices to ensure healthy reserves, and advised that the capital plan would be adequately funded and supported. The Committee inquired about the included graph representing an examination of the Town’s year end capital reserve balances over a ten- year time horizon. Staff provided additional information regarding the expected draws on these reserves based on the current capital plan, asset cycles, growth of reserves, and funds available to replace assets. The Committee further inquired about the potential capital reserve risk factors. Staff identified areas of risk, such as the Town’s collection of future development charges in support of Parks and Recreation requirements like the proposed Stronach Aurora Recreation Complex (SARC). Staff provided a response with respect to project revaluation and growth. Moved by Councillor Weese Seconded by Councillor Thompson 1. That the memorandum regarding Reserve Management Policy be received; and 2. That the Finance Advisory Committee comments regarding the Reserve Management Policy be received and referred to staff for consideration and further action as appropriate. Carried 8. New Business None. 9. Adjournment Moved by Councillor Weese Seconded by Councillor Thompson That the meeting be adjourned at 6:35 p.m. Carried Page 5 of 26 100 John West Way Aurora, Ontario L4G 6J1 (905) 727-3123 aurora.ca Town of Aurora Memorandum Finance Re: Finance Advisory Committee Updated 2-Year Work Plan To: Finance Advisory Committee From: Jason Gaertner, Manager, Financial Management Date: September 12, 2023 Recommendation 1. That the memorandum regarding the Finance Advisory Committee’s Updated 2-Year Work Plan be received; and 2. That the Finance Advisory Committee comments regarding the Finance Advisory Committee’s Updated 2-Year Work Plan be received and referred to staff for consideration and further action as appropriate. Background To ensure that the Finance Advisory Committee is reviewing and offering feedback on the Town’s highest priority subject areas, the Committee’s 2-year workplan has been updated for the Committee’s endorsement. This workplan outlines its subject discussion areas, as well as the order in which they will be reviewed. Analysis Attached for the Finance Advisory Committee’s review and endorsement is its updated draft workplan for 2023 and 2024. Attachments Attachment #1 – Updated 2023 – 2024 Finance Advisory Committee Workplan Page 6 of 26 2023 to 2024 FAC Workplan 2023 April 11, 2023 Finance Advisory Committee Terms of Reference Review and re-approval Two Year Finance Advisory Committee workplan Council budget principles policy review May 9, 2023 Policy 57 review which will include eligible ward expenditures. o Discussion of what might be an appropriate budget in support of eligible ward expenses. ERP Financial System Update June 13, 2023 Major project update Reserve policy and strategy Aurora Town Square operating budget requirements July 2023 No meeting August 2023 No meeting September 12, 2023 Major project update Line by line budget review o Council Administration o Office of the CAO October 10, 2023 Cancelled November 14, 2023 Major project update Service delivery review update Annual audit plan update Line by line budget review o Aurora Sports Hall of Fame Attachment 1 Page 7 of 26 2024 January 2024 2024 Finance Advisory Committee workplan revisit and endorsement Possible extension of the Town’s existing diversity/exclusion policies into all Town organization funding agreements Major project update Line by line budget review o Aurora Historical Society February 2024 Water / Wastewater rate study recommendations Line by line budget review o Aurora Public Library March 2024 2024 Asset management plan modernization update Major project update Line by line budget review o Operational Services April 2024 Line by line budget review o Community Services May 2024 Review of Council 2025 budget direction Major project update Line by line budget review o Corporate Services June 2024 Investment policy Line by line budget review o Planning & Development Services July 2024 No meeting August 2024 No meeting Page 8 of 26 September 2024 Major project update Annual audit plan update Line by line budget review o Finance o Corporate Accounts October 2024 2025 draft budget preview Grant policy November 2024 Revenue policy Page 9 of 26 100 John West Way Aurora, Ontario L4G 6J1 (905) 727-3123 aurora.ca Town of Aurora Memorandum Finance Re: Budget review of Council Administration & the Office of the CAO To: Finance Advisory Committee From: Tracy Evans, Financial Management Advisor Date: September 12, 2023 Recommendation 1. That the memorandum regarding the budget review of Council Administration & the Office of the CAO be received; and 2. That the Finance Advisory Committee comments regarding budget review of Council Administration & the Office of the CAO 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 1 - Council Administration & the Office of the CAO detailed budget materials Page 10 of 26 20202021202220232023 2023 Forecast vs 2023 Forecast vsActualActualActualBudget Forecast 2022 Actual 2022 ActualVariance ExplanationGross Expenditures:61001: SALARIES - F/T343,847365,414439,005369,317342,408(96,597)(22.0%)61002: SALARIES - O/T--326--(326)(100.0%)61004: VACATION PAY----1,2881,288-61090: YEAR END ACCRUALS14,7644,9478,946--(8,945)(100.0%)61101: BENEFITS - OMERS45,09747,79648,12446,56249,4161,2932.7%61102: BENEFITS - EHT6,9017,3328,7657,2028,852871.0%61103: BENEFITS - WSIB1,3751,5292,0772,7703,4041,32863.9%61104: BENEFITS - CPP5,7967,12011,4017,40211,344(57)(.5%)61105: BENEFITS - EI2,3982,7994,4302,6944,324(107)(2.4%)61106: BENEFITS - DENTAL3,6073,8793,5623,7043,8492878.1%61107: BENEFITS - HEALTH6,0595,9995,7385,8146,2425048.8%61108: BENEFITS - LTD/ADD4,6646,2279,3769,4689,6102342.5%61109: BENEFITS - OTHER1,643809-1,407925925-61902:SALARY SAVINGS---(54,301)---Subtotal: 61000: SALARIES ANDBENEFITS436,149453,850541,751402,040441,663(100,088)(18.5%)62001: OFFICE SUPPLIES6301285611,3001,300739131.8%62003: RECEPTIONS--285,0002,5002,4728687.3%62005:SUBSCRIPTIONS/PUBLICATIONS163613171,000796479151.1%62044: STAFF INITIATIVES-6375,6256,0006,0003756.7%62045: MEETING EXPENSES3,9214,3498,0433,1005,679(2,364)(29.4%)Charges for Communications position were charged here in error in 2022. 1Attachment 1Page 11 of 26 62999: CLEARING/SUSPENSEACCOUNT8,427161,092-809(283)(25.9%)Subtotal: 62000: MATERIALS ANDSUPPLIES12,9955,49215,66616,40017,0851,4189.1%64008: MOBILE PLAN CHARGES7,0606,2492,2111,5751,575(636)(28.8%)64013: COURSES & SEMINARS(75)1112,0126,5276,5274,515224.5%64015: MEMBERSHIPS1,4441,2822,8332,800749(2,084)(73.6%)64016: MILEAGE664-2710010073270.1%64017: VEHICLE ALLOWANCE8,4008,7238,40011,70011,7003,30039.3%64018: GENERAL OFFICEEQUIPMENT8952182,1401,3001,300(840)(39.2%)64030: CONSULTING44,52251,31921,25286,60075,29954,047254.3%Due to COVID,ELT training and Regional Audits did not take place in 202264032: PHOTOCOPIER CHARGES6,4026,7366,8016,6006,600(201)(3.0%)64045: CONTRACTS---9,500---Subtotal: 64000: SERVICES ANDCONSULTANTS69,31274,63945,675126,702103,85058,174127.4%Expenses Budgeted518,456533,981603,092545,142562,597(40,495)(6.7%)Revenues:Total Levy518,456533,981603,092545,142562,597(40,495)6.7%2Page 12 of 26 20202021202220232023 2023 Forecast vs 2023 Forecast vsActualActualActualBudget Forecast 2022 Actual 2022 Actual Variance ExplanationGross Expenditures:61001: SALARIES - F/T380,394538,192527,314687,632708,841181,52734.4%Marketing position is charged to Communications and offset by cost recovery below from the ATS budget. Also, charges for additional Communications resources were charged to the CAO budget which reflects why 2022 is low.61002: SALARIES - O/T-3,4595,031-353(4,678)(93.0%)61003: SALARIES - P/T71,30074,326-10,3637,2107,210-61004: VACATION PAY--69-5,1925,1247453.7%61005: SICK PAY-14,08022,558-2,231(20,327)(90.1%)This variance represents a change in how charges are recorded61090: YEAR END ACCRUALS5,003(6,634)14,343--(14,344)(100.0%)61101: BENEFITS - OMERS40,73049,00255,08364,94556,9531,8703.4%61102: BENEFITS - EHT8,23912,29610,92811,81310,791(137)(1.3%)61103: BENEFITS - WSIB3,1694,3404,0064,5444,048421.1%61104: BENEFITS - CPP15,89922,08623,53722,57918,267(5,270)(22.4%)61105: BENEFITS - EI6,6598,6469,0048,2996,392(2,613)(29.0%)61106: BENEFITS - DENTAL8,04210,1768,75211,1119,8351,08312.4%61107: BENEFITS - HEALTH13,44916,64615,35917,44215,7704112.7%61108: BENEFITS - LTD/ADD9,48312,21617,65415,28114,299(3,355)(19.0%)61109: BENEFITS - OTHER2,0161,167-2,2711,5881,588-Subtotal: 61000: SALARIES ANDBENEFITS564,384759,999713,638856,279861,768148,13020.8%62001: OFFICE SUPPLIES3333233500500267114.6%62005:SUBSCRIPTIONS/PUBLICATIONS23,87652,13947,41131,21231,212(16,199)(34.2%)3Page 13 of 26 62007: OFFICE EQUIPMENT1416,2481,6247,3507,3505,726352.7%62045: MEETING EXPENSES--515450451(64)(12.5%)62046: WEB SITE MANAGEMENT6,16411,63010,94810,00010,257(691)(6.3%)Subtotal: 62000: MATERIALS ANDSUPPLIES30,21370,05060,73149,51249,771(10,960)(18.0%)64008: MOBILE PLAN CHARGES3,3003,8612,4222,7222,409(13)(.5%)64013: COURSES & SEMINARS7,5004,3091,8711,0701,070(801)(42.8%)64015: MEMBERSHIPS-1,771-1,0001,0001,000-64016: MILEAGE---500---64029: ADVERTISING SERVICES79,431100,31187,473124,120124,12036,64741.9% Less advertising in 2022 vs 2023 due to COVID64077: EVENTS AND PROMOTIONS4,04415127,99322,47222,472(5,522)(19.7%)65901: COST RECOVERY(19,807)(77,101)(19,089)(99,283)(46,873)(27,784)(145.6%)Cost Recovery was for Marketing position and is based on actual charges for the position.Subtotal: 64000: SERVICES ANDCONSULTANTS74,46833,301100,67152,601104,1983,5273.5%67001: COMMUNITY GRANTS28,50018,87541,637--(41,637)(100.0%)This budget has been moved to CMS, therefore the forecast will be in CMS for 2023Subtotal: 67000: GRANTS ANDEXTERNAL TRANSFERS28,50018,87541,637--(41,637)(100.0%)Expenses Budgeted697,565882,225916,677958,3921,015,73799,06010.8%Revenues:54001: FEDERALGRANTS/CONTRIBUTION- - (4,200) - - 4,200 (100.0%)54005: PROVINCIALGRANTS/CONTRIBUTIONS- - (92,025) - - 92,025 (100.0%)Safe Restart funding in 2022 was to offset additional Communications staff resources56401: SPONSORSHIPS - - (500) - - 500 (100.0%)56002: MERCHANDISE SALES (148) - (263) (300) (300) (37) 14.3%Subtotal: 50000: REVENUES (148) - (96,988) (300) (300) 96,688 (99.7%)41003: TRANSFERS FROMRESERVES(12,000)---- - -Subtotal: 41000: TRANSFERS FROMRESERVE(12,000)---- - -Revenues Budgeted (12,148) - (96,988) (300) (300) 96,688 99.7%Total Levy 685,417 882,225 819,689 958,092 1,015,437 195,748 (23.9%)4Page 14 of 26 20202021202220232023 2023 Forecast vs 2023 Forecast vsActualActualActualBudget Forecast 2022 Actual 2022 ActualVariance ExplanationGross Expenditures:61001: SALARIES - F/T468,959485,574476,574426,057444,163(32,411)(6.8%)61005: SICK PAY-5572,037--(2,037)(100.0%)61090: YEAR END ACCRUALS6,589(11,555)6,000--(6,000)(100.0%)61101: BENEFITS - OMERS30,80032,00431,07521,21024,330(6,745)(21.7%)61102: BENEFITS - EHT9,6359,9929,8368,3088,809(1,027)(10.4%)61103: BENEFITS - WSIB652687670682681101.5%61104: BENEFITS - CPP15,32517,03217,25119,86019,1411,89111.0%61105: BENEFITS - EI1,1991,3201,3371,3471,284(53)(4.0%)61106: BENEFITS - DENTAL3,4623,8793,2833,7043,4211384.2%61107: BENEFITS - HEALTH6,0595,9995,2745,8145,5032294.3%61108: BENEFITS - LTD/ADD2,1062,9413,5652,3302,413(1,152)(32.3%)61109: BENEFITS - OTHER898439-745490490-61901: WAGE RECOVERY(66,086)(33,806)(102,960)-(20,177)82,78380.4%The 2023 forecast only represents the amount paid in Regional salary as of the Interim Forecast vs 2022 is full-year actuals.Subtotal: 61000: SALARIES ANDBENEFITS479,597515,062453,942490,058490,05836,1158.0%62001: OFFICE SUPPLIES9791,5911,7861,9951,857714.0%62005:SUBSCRIPTIONS/PUBLICATIONS-406-600---62007: OFFICE EQUIPMENT5,0301,172922210595(328)(35.5%)62045: MEETING EXPENSES7761,0891,9812,0001,802(179)(9.0%)62999: CLEARING/SUSPENSEACCOUNT-196263--(263)(100.0%)Subtotal: 62000: MATERIALS ANDSUPPLIES6,7854,4534,9524,8054,254(699)(14.1%)64001: SPECIAL FUNCTIONS1,14237,59850,1446,0007,008(43,136)(86.0%)The Mayor's Golf tournament expenses are run thru this account and then offset by revenue in Other User Fees below.5Page 15 of 26 64002: CONFERENCES(949)-12,71322,47019,5576,84453.8%64008: MOBILE PLAN CHARGES5,4085,6264,5925,4464,9893978.6%64013: COURSES & SEMINARS---210---64015: MEMBERSHIPS12,31412,47312,75310,20013,0903382.6%64017: VEHICLE ALLOWANCE20,90621,90421,52722,20022,7661,2405.8%64029: ADVERTISING SERVICES-2611,3282,140-(1,328)(100.0%)64032: PHOTOCOPIER CHARGES4,2494,6154,8314,4004,358(474)(9.8%)64053: OPERATINGCONTINGENCIES---10,00010,00010,000-64076: CIVIC RESPONSIBILITIES1,3383,9634,81810,0007,2932,47551.4%Subtotal: 64000: SERVICES ANDCONSULTANTS44,40886,440112,70593,06689,062(23,643)(21.0%)Expenses Budgeted530,790605,956571,600587,929583,37311,7732.1%Revenues:56126: OTHER USER FEES-(36,414)(46,194)--46,194(100.0%)Mayor's Golf tournament revenue - did not know forecast for 2023 at the time forecast was completedSubtotal: 50000: REVENUES-(36,414)(46,194)--46,194(100.0%)Revenues Budgeted-(36,414)(46,194)--46,194100.0%Total Levy530,790569,542525,406587,929583,37357,967(11.0%)6Page 16 of 26 20202021202220232023 2023 Forecast vs 2023 Forecast vsActualActualActualBudget Forecast 2022 Actual 2022 Actual Variance ExplanationGross Expenditures:62045: MEETING EXPENSES101-8061,5001,34053466.2%Subtotal: 62000: MATERIALS ANDSUPPLIES101-8061,5001,34053466.2%64029: ADVERTISING SERVICES705---160160-64045: CONTRACTS254---- - -65901: COST RECOVERY---100,000100,000100,000-Subtotal: 64000: SERVICES ANDCONSULTANTS959--100,000100,160100,160-67001: COMMUNITY GRANTS121---- - -Subtotal: 67000: GRANTS ANDEXTERNAL TRANSFERS121------Expenses Budgeted1,181-806101,500101,500100,69412486.4%Revenues:41003: TRANSFERS FROMRESERVES- - - (100,000) (100,000) (100,000) -Subtotal: 41000: TRANSFERS FROMRESERVE- - - (100,000) (100,000) (100,000) -Revenues Budgeted - - - (100,000) (100,000) (100,000) -Total Levy 1,181 - 806 1,500 1,500 694 (86.0%)7Page 17 of 26 20202021202220232023 2023 Forecast vs 2023 Forecast vsActualActualActualBudget Forecast 2022 Actual 2022 ActualVariance ExplanationGross Expenditures:62045: MEETING EXPENSES1,526(1,695)134500500366274.1%Subtotal: 62000: MATERIALS ANDSUPPLIES1,526(1,695)134500500366274.1%65901: COST RECOVERY----5,0005,000-Subtotal: 64000: SERVICES ANDCONSULTANTS----5,0005,000-67001: COMMUNITY GRANTS1,272-3,0535,000-(3,053)(100.0%)Subtotal: 67000: GRANTS ANDEXTERNAL TRANSFERS1,272-3,0535,000-(3,053)(100.0%)Expenses Budgeted2,798(1,695)3,1865,5005,5002,31472.6%Revenues:Total Levy2,798(1,695)3,1865,5005,5002,314(72.6%)8Page 18 of 26 20202021202220232023 2023 Forecast vs 2023 Forecast vsActualActualActualBudgetForecast 2022 Actual 2022 ActualVariance ExplanationGross Expenditures:62045: MEETING EXPENSES---500500500-Subtotal: 62000: MATERIALS ANDSUPPLIES---500500500-Expenses Budgeted---500500500-Revenues:Total Levy---500500500-9Page 19 of 26 20202021202220232023 2023 Forecast vs 2023 Forecast vsActualActualActualBudget Forecast 2022 Actual 2022 ActualVariance ExplanationGross Expenditures:67005:EDUCATION GRANTS---4,0004,0004,000-Subtotal: 67000: GRANTS ANDEXTERNAL TRANSFERS---4,0004,0004,000-Expenses Budgeted---4,0004,0004,000-Revenues:Total Levy---4,0004,0004,000-10Page 20 of 26 20202021202220232023 2023 Forecast vs 2023 Forecast vsActualActualActualBudget Forecast 2022 Actual 2022 Actual Variance ExplanationGross Expenditures:62045: MEETING EXPENSES--27050050023085.1%Subtotal: 62000: MATERIALS ANDSUPPLIES--27050050023085.1%Expenses Budgeted--27050050023085.1%Revenues:Total Levy--270500500230(85.1%)11Page 21 of 26 100 John West Way Aurora, Ontario L4G 6J1 (905) 727-3123 aurora.ca Town of Aurora Memorandum Corporate Services _______________________________________________________________________________________ Re: Town’s Capital Projects Performance Update To: Finance Advisory Committee From: Project Management Office, Corporate Services Date: September 12, 2023 Recommendation 1. That the memorandum regarding Town’s Major Capital Projects Performance Update be received for information. Background The Town manages a portfolio of approximately 200 capital projects at varying stages of completion and complexity. The Town’s Project Management Office sees an opportunity to leverage the reporting benefits of the newly implemented Oracle financial system for reporting to FAC on the Town’s project portfolio. The key performance indicators (KPIs) are based on Earned Value Management, are internationally recognized and standard in project portfolio reporting (Exhibit 1- Sample Dashboard & Exhibit 2 – Sample KPI List). These KPIs will enable the Town to gain important insights into the project portfolio and support the FAC’s mandate of prudent financial management. Analysis Implementing the proposed KPIs for our capital project portfolio management is a strategic decision that supports good governance and aims to provide the following advantages to the Town; 1. Enhanced Project Performance Visibility: Utilizing the internationally recognized KPIs will provide us with real-time and comprehensive visibility into each project's performance. The ability to monitor progress at various stages of completion and complexity will enable us to identify potential bottlenecks, assess project health, and ensure timely project Page 22 of 26 Town’s Major Capital Projects Update August 28, 2023 delivery. With this enhanced visibility, we can proactively address any challenges that arise, minimizing risks and optimizing project outcomes. 2. Informed Data-Driven Decision Making Data is the foundation of informed decision-making. By employing Oracle which is in the process of consolidating all project information we can employ standardized KPIs, and rely on accurate and relevant data to make important choices regarding project prioritization, resource allocation, and risk management. 3. Early Issue Identification and Mitigation KPIs serve as early warning indicators, allowing us to identify and mitigate potential issues before they escalate. With timely insights into project performance, we can take proactive measures to address challenges and avoid costly delays. This early issue identification will enable us to maintain project timelines and stay within budgetary constraints. 4. Alignment with Organizational Objectives The proposed KPIs are internationally recognized and standardized in project portfolio reporting. By employing these indicators, we ensure that our project management practices align with best industry practices and global standards. This alignment will strengthen our credibility as an organization committed to excellence and continuous improvement. 5. Enhanced Accountability and Transparency Transparency is a cornerstone of effective project management. The adoption of KPIs fosters a culture of accountability among stakeholders, ensuring that project performance data is accessible to all relevant parties. This transparency promotes better communication, collaboration, and trust, both within our organization and with external stakeholders. The KPIs will be adopted into the Town’s performance management system (Viva Goals). 6. Support for Strategic Planning Data obtained through the KPIs will empower us to make informed strategic decisions. By analyzing project trends and performances, we can begin to anticipate future needs, further support the prioritization of projects that align Page 23 of 26 Town’s Major Capital Projects Update August 28, 2023 with our long-term vision, and assist us with allocating resources optimally. This strategic planning will enable us to be proactive in addressing emerging opportunities and challenges. Draft Development/Implementation Timeline Timeline (2023/24) Milestone(s) August  Develop FAC memo describing approach  Develop sample dashboard September  Present FAC Status Memo  Confirm data availability  Collect sample data  Confirm calculations October  Test the system and refine as needed November  Prepare/present FAC Report with live data January 2024  Begin reporting to management team Conclusion By leveraging internationally recognized indicators, the Town will gain the means to proactively monitor project performance, make data-driven decisions, and align with the FAC's mandate of prudent financial management. The benefits of adopting these KPIs are evident: enhanced visibility, informed decision-making, early issue identification, alignment with best practices, increased transparency, and support for strategic planning. Embracing the proposed KPI system will enable us to foster a culture of excellence, ensuring the successful execution of our projects and the continued growth and prosperity of the Town. Attachments Exhibit 1 - Sample Dashboard Exhibit 2 - Sample KPI List Page 24 of 26 Exhibit 1- Sample Dashboard – For Illustrative purposes only Note: Dashboard can be scaled from organizational level to departmental, divisional as needed Page 25 of 26 Exhibit 2 – Sample KPI List Earned Value Management: is a project management methodology that keeps track of how well a project is doing by comparing the work that was planned to be done with the actual work that has been finished. It helps project managers see if the project is on time and on budget, and if any changes are needed to stay on track. EVM uses a number of KPIS to show if a project is going well or if adjustments need to be made. Term Description Planned Value (PV) How much work was supposed to be done by now. Actual Cost (AC) How much money we've actually spent so far. Earned Value (EV) How much work we've actually finished. Schedule Variance (SV) Whether we're ahead or behind the schedule. Cost Variance (CV) Whether we're under or over the budget. Schedule Performance Index (SPI) How well we're sticking to the timeline. Cost Performance Index (CPI) How well we're staying within the budget. Page 26 of 26