Agenda (Appointed) - Finance Advisory Committee - 20240910Town of Aurora
Finance Advisory Committee
Meeting Agenda
Date:Tuesday, September 10, 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 June 11, 2024 1
That the Finance Advisory Committee Meeting Minutes of June
11, 2024, be received for information.
1.
6.Delegations
7.Matters for Consideration
7.1 Memorandum from Financial Management Advisor; Re: Budget Review of
Community Services
5
That the memorandum regarding the Budget Review of
Community Services be received; and
1.
That the Finance Advisory Committee comments regarding the
Budget Review of Community Services be received and referred
to staff for consideration and further action as appropriate.
2.
7.2 Memorandum from Financial Management Advisor; Re: Prudent Investor
Update
22
That the memorandum regarding the Prudent Investor Update be
received; and
1.
That the Finance Advisory Committee comments regarding the
Prudent Investor Update 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, June 11, 2024
5:45 p.m.
Holland Room, Aurora Town Hall
Committee Members: Mayor Tom Mrakas (Chair)
Councillor Michael Thompson
Councillor Ron Weese
Other Attendees: Rachel Wainwright-van Kessel, Director, Finance
Jason Gaertner, Manager, Financial Management
Emily Freitas, Council/Committee Coordinator
_____________________________________________________________________
1. Call to Order
The Chair 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.
3. Approval of the Agenda
Moved by Councillor Thompson
Seconded by Ron Weese
Page 1 of 70
Financial Advisory Committee Meeting Minutes
Tuesday, June 11, 2024 2
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 14, 2024
Moved by Councillor Thompson
Seconded by Ron Weese
1. That the Finance Advisory Committee Meeting Minutes of May 14,
2024, be received for information.
Carried
6. Delegations
None.
7. Matters for Consideration
7.1 Memorandum from Financial Management Advisor; Re: Budget Review
Aurora Public Library
Bruce Gorman, CEO, and Julia Rocca, Finance Manager, from Aurora
Public Library, provided a brief overview and answered questions
regarding Aurora Public Library's budget review and 2022 audited financial
statements. Further details were provided regarding the cost-effective
strategies used, including its capital plan and reserves that will ensure the
growth of the facility, current financial position and key operational
pressure drivers including inflation, staff salary and benefits, and future
programming at Aurora Town Square.
Page 2 of 70
Financial Advisory Committee Meeting Minutes
Tuesday, June 11, 2024 3
The Committee and Staff discussed the revenue differences between the
library’s audited financial statements due to accrual-based accounting and
variances in the budget over the years such as expenditures for digital
collections, potential budgetary pressures and impacts due to Town
Square.
Moved by Councillor Thompson
Seconded by Ron Weese
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.
Carried
7.2 Memorandum from Financial Management Advisor; Re: Community Partner
Reserve Fund Policy
Staff presented an update on the Community Partner Reserve Fund Policy,
highlighting the policy’s proposed reserve regulations and guidelines for
reserve balances to ensure financial stability and to offer guidance in the
management of any excess reserve balances.
The Committee expressed support for the draft policy and further
discussed about various aspects such as the criteria for an acceptable
reserve and the requirements for boards to improve the creation of
reserves. There was further discussion regarding the calculation of the
total value of operating reserves, possibility of growing operating
expenses, analysis of expenditures by auditors, timelines of notifying the
organizations prior to the implementation of the policy, and the
adjustment of Community Partner reserves. Staff confirmed that the
Town’s applicable Community Partners will be consulted on the proposed
policy prior to its presentation to Council for consideration in the fall.
Moved by Councillor Thompson
Seconded by Ron Weese
Page 3 of 70
Financial Advisory Committee Meeting Minutes
Tuesday, June 11, 2024 4
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.
Carried
8. New Business
None.
9. Adjournment
Moved by Ron Weese
Seconded by Councillor Thompson
That the meeting be adjourned at 6:25 p.m.
Carried
Page 4 of 70
100 John West Way
Aurora, Ontario
L4G 6J1
(905) 727-3123
aurora.ca
Town of Aurora
Memorandum
Finance
Re: Budget Review of Community Services
To: Finance Advisory Committee
From: Tracy Evans, Advisor, Financial Management
Date: September 10, 2024
Recommendation
1. That the memorandum regarding the Budget Review of Community Services be
received; and
2. That the Finance Advisory Committee comments regarding the Budget Review of
Community Services 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 – Community Services detailed budget materials
Page 5 of 70
2021 2022 2023 2024 2024 2024 Forecast vs 2024 Forecast vsActual Actual Actual Budget Forecast 2023 Actual 2023 Actual Variance ExplanationGross Expenditures:61001: SALARIES - F/T 270,779 271,937 293,909 304,835 303,871 9,962 3.4%61002: SALARIES - O/T - 138 - - - - -61003: SALARIES - P/T - 2,035 527 - - (527) (100.0%)61005: SICK PAY 755 2,976 2,352 - 1,361 (990) (42.1%)61090: YEAR END ACCRUALS (8,573) 2,876 (2,104) - - 2,104 100.0%61101: BENEFITS - OMERS 31,669 33,645 36,631 37,999 37,737 1,107 3.0%61102: BENEFITS - EHT 5,340 5,500 5,894 6,021 6,038 144 2.4%61103: BENEFITS - WSIB 1,369 1,363 1,453 2,316 2,322 869 59.8%61104: BENEFITS - CPP 7,330 7,208 7,565 8,016 10,652 3,087 40.8%61105: BENEFITS - EI 2,742 2,758 2,834 2,947 2,761 (74) (2.6%)61106: BENEFITS - DENTAL 4,636 3,283 3,470 3,696 3,449 (21) (0.6%)61107: BENEFITS - HEALTH 7,158 5,274 5,960 5,808 5,497 (462) (7.8%)61108: BENEFITS - LTD/ADD 6,401 8,000 8,962 7,905 7,655 (1,307) (14.6%)61109: BENEFITS - OTHER 602 - - 1,173 787 787 -61902:SALARY SAVINGS - - - (51,800) - - -Subtotal: 61000: SALARIES ANDBENEFITS330,208 346,993 367,453 328,916 382,130 14,677 4.0%62001: OFFICE SUPPLIES 271 720 662 1,500 1,402 740 111.7%62007: OFFICE EQUIPMENT - 1,549 827 1,500 3,303 2,476 40%62045: MEETING EXPENSES 336 805 2,333 1,000 869 (1,464) (62.7%)62999: CLEARING/SUSPENSEACCOUNT14,530 17,969 - - - - -Subtotal: 62000: MATERIALS ANDSUPPLIES15,136 21,044 3,822 4,000 5,574 1,752 45.8%64002: CONFERENCES - - 176 - 563 388 220.7%64008: MOBILE PLAN CHARGES 977 1,176 1,597 551 702 (895) (56.1%)64013: COURSES & SEMINARS 283 2,525 2,171 3,200 2,133 (38) (1.7%)64015: MEMBERSHIPS 1,820 1,857 2,019 3,200 2,293 274 13.6%64016: MILEAGE - - - 500 333 333 -64017: VEHICLE ALLOWANCE 803 3,606 4,270 3,942 4,099 (171) (4.0%)64029: ADVERTISING SERVICES - - - - 26 26 -64030: CONSULTING - - - 12,500 8,333 8,333 -64032: PHOTOCOPIER CHARGES 52,328 59,902 68,752 59,902 39,935 (28,818) (41.9%)Forecast is an estimate vs 2023 actuals. Anticipated savings due to reduced copier lease rate effective July 2024.64045: CONTRACTS - - - 1,500 1,000 1,000 -Subtotal: 64000: SERVICES ANDCONSULTANTS56,212 69,065 78,985 85,295 59,417 (19,567) (24.8%)Expenses Budgeted 401,556 437,102 450,259 418,210 447,121 (3,138) (0.7%)Revenues:Attachment #1Page 6 of 70
2021 2022 2023 2024 2024 2024 Forecast vs 2024 Forecast vsActual Actual Actual Budget Forecast 2023 Actual 2023 Actual Variance ExplanationTotal Levy 401,556 437,102 450,259 418,210 447,121 (3,138) 0.7%Page 7 of 70
2021 2022 2023 2024 2024 2024 Forecast vs 2024 Forecast vsActual Actual Actual Budget Forecast 2023 Actual 2023 Actual Variance ExplanationGross Expenditures:61001: SALARIES - F/T 170,337 152,228 207,181 353,989 318,411 111,230 53.7%Budget moved from Facilities to Cultural Services for ATS position.61002: SALARIES - O/T - 341 568 - - (568) (100.0%)61003: SALARIES - P/T 65,744 46,871 47,518 31,693 39,468 (8,050) (16.9%)61004: VACATION PAY 11,312 1,178 - - - - -61005: SICK PAY - 667 1,273 - 1,534 261 20.5%61090: YEAR END ACCRUALS (3,079) 13,605 (2,257) - - 2,257 100.0%61101: BENEFITS - OMERS 17,854 12,752 25,617 36,985 34,184 8,567 33.4%61102: BENEFITS - EHT 4,933 3,828 5,018 7,069 6,573 1,555 31.0%61103: BENEFITS - WSIB 1,737 1,472 1,930 2,719 2,528 598 31.0%61104: BENEFITS - CPP 9,624 8,893 11,039 13,563 14,335 3,296 29.9%61105: BENEFITS - EI 3,923 3,637 4,281 5,135 4,588 308 7.2%61106: BENEFITS - DENTAL 2,229 1,498 3,470 5,544 4,681 1,211 34.9%61107: BENEFITS - HEALTH 3,463 2,427 5,960 8,712 7,433 1,474 24.7%61108: BENEFITS - LTD/ADD 2,283 2,615 5,920 8,479 7,250 1,330 22.5%61109: BENEFITS - OTHER 304 - - 1,259 847 847 -Subtotal: 61000: SALARIES ANDBENEFITS290,664 252,011 317,517 475,147 441,833 124,315 39.2%62001: OFFICE SUPPLIES 48 699 160 35,950 24,021 23,861 14,912.1%Increase is due to ATS budget distributed to line items.62016: OPERATING MATERIALS 46,410 91,147 62,998 194,819 194,819 131,821 209.2%Increase is due to ATS budget distributed to line items.62019: LICENSES - 288 375 1,149 766 391 104.5%62025: PROGRAM MATERIALS - - 642 192,200 99,100 98,458 15,340.7%Increase is due to ATS budget distributed to line items.62045: MEETING EXPENSES 254 (3,861) 132 1,640 1,093 961 728.9%62088:TRUTH ANDRECONCILIATION MATERIALS ANDSUPPLIES- 188 6,116 20,000 20,000 13,884 227.0%Subtotal: 62000: MATERIALS ANDSUPPLIES46,712 88,461 70,422 445,758 339,799 269,377 382.5%64008: MOBILE PLAN CHARGES 334 89 394 596 497 103 26.1%64013: COURSES & SEMINARS 1,109 2,483 747 3,417 2,428 1,681 225.2%64015: MEMBERSHIPS 225 543 157 766 636 479 305.0%64030: CONSULTING 2,500 3,980 4,140 6,014 6,014 1,874 45.3%64045: CONTRACTS 432,480 441,100 16,300 240,000 239,999 223,700 1,372.4%Increase is due to ATS budget distributed to line items.64137: ACTIVE NET CHARGES &FEES- - - - 1,946 1,946 -65901: COST RECOVERY - - 107,751 126,108 126,108 18,357 17.0%Subtotal: 64000: SERVICES ANDCONSULTANTS436,648 448,195 129,489 376,901 377,629 248,140 191.6%67001: COMMUNITY GRANTS 6,141 8,312 109,513 89,600 89,600 (19,913) (18.2%)67002: HISTORICAL SOCIETYGRANT82,830 84,600 89,317 85,900 85,900 (3,417) (3.8%)67006: SPORTS HALL OF FAMEGRANT- - 30,800 31,725 31,725 925 3.0%Page 8 of 70
2021 2022 2023 2024 2024 2024 Forecast vs 2024 Forecast vsActual Actual Actual Budget Forecast 2023 Actual 2023 Actual Variance Explanation67007: AURORA CULTURALCENTRE GRANT- - 538,760 645,600 645,600 106,840 19.8%Variance is due to budget increase.Subtotal: 67000: GRANTS ANDEXTERNAL TRANSFERS88,971 92,912 768,390 852,825 852,825 84,435 11.0%Expenses Budgeted 862,995 881,579 1,285,818 2,150,631 2,012,085 726,267 56.5%Revenues:52300: RENTAL - - - (259,800) (64,950) (64,950) -52318: PROGRAM ADAPTED - - - (14,450) (9,633) (9,633) -54001: FEDERALGRANTS/CONTRIBUTION- (33,441) - (39,500) (46,182) (46,182) -54100: OTHER GRANTS (1,978) - - - - - -56402: DONATIONS (20,000) 24,901 - - - - -56126: OTHER USER FEES (100) (1,182) (400) - - 400 (100.0%)56403: EVENT SALES (150) - - (108,250) (35,000) (35,000) -Subtotal: 50000: REVENUES (22,228) (9,721) (400) (422,000) (155,766) (155,366) 38,841.4%41003: TRANSFERS FROMRESERVES- - - (105,000) (105,000) (105,000) -Subtotal: 41000: TRANSFERS FROMRESERVE- - - (105,000) (105,000) (105,000) -Revenues Budgeted (22,228) (9,721) (400) (527,000) (260,766) (260,366) (65,091.4%)Total Levy 840,767 871,858 1,285,418 1,623,631 1,751,320 465,901 (36.2%)Page 9 of 70
2021 2022 2023 2024 2024 2024 Forecast vs 2024 Forecast vsActual Actual Actual Budget Forecast 2023 Actual 2023 Actual Variance ExplanationGross Expenditures:61001: SALARIES - F/T 508,783 470,968 463,439 543,371 524,648 61,208 13.2% Resource gapping due to position being vacant during 2023.61002: SALARIES - O/T 307 6,716 588 - - (588) (100.0%)61003: SALARIES - P/T 171,258 93,550 54,892 47,660 48,953 (5,939) (10.8%)61004: VACATION PAY - 979 3,322 - - (3,322) (100.0%)61005: SICK PAY 4,687 18,317 4,967 - 4,812 (155) (3.1%)61090: YEAR END ACCRUALS (15,881) (8,763) 9,938 - - (9,938) (100.0%)61101: BENEFITS - OMERS 55,276 47,275 49,591 52,956 51,828 2,237 4.5%61102: BENEFITS - EHT 13,506 11,628 10,311 11,470 11,252 941 9.1%61103: BENEFITS - WSIB 5,007 4,288 3,793 4,412 4,328 534 14.1%61104: BENEFITS - CPP 29,913 25,862 25,381 28,050 29,039 3,658 14.4%61105: BENEFITS - EI 12,126 10,413 9,907 11,334 11,143 1,237 12.5%61106: BENEFITS - DENTAL 10,839 8,236 6,731 12,936 11,136 4,405 65.4%61107: BENEFITS - HEALTH 17,174 13,158 11,438 20,328 17,664 6,225 54.4%61108: BENEFITS - LTD/ADD 13,505 15,066 12,254 13,854 13,112 859 7.0%61109: BENEFITS - OTHER 1,193 - - 2,056 1,383 1,383 -Subtotal: 61000: SALARIES ANDBENEFITS827,693 717,693 666,554 748,427 729,299 62,744 9.4%62001: OFFICE SUPPLIES 1,357 873 2,433 1,700 1,701 (732) (30.1%)62006: MARRIAGE LICENSES 6,518 - 7,857 12,000 13,000 5,143 65.5%62007: OFFICE EQUIPMENT 3,042 240 1,212 1,000 947 (265) (21.8%)62011: CLOTHING ALLOWANCE 498 (45) 255 750 750 495 193.8%62045: MEETING EXPENSES 466 92 190 450 450 260 137.2%Subtotal: 62000: MATERIALS ANDSUPPLIES11,880 1,161 11,946 15,900 16,847 4,901 41.0%64008: MOBILE PLAN CHARGES 3,376 2,552 595 1,102 792 197 33.2%64013: COURSES & SEMINARS 94 - 1,783 3,500 3,501 1,718 96.4%64015: MEMBERSHIPS 878 530 280 800 533 253 90.2%64016: MILEAGE 409 72 50 250 167 116 230.3%64031: POSTAGE 82,435 53,936 62,717 40,000 66,463 3,746 6.0%64032: PHOTOCOPIER CHARGES 5,412 5,710 6,694 5,710 3,807 (2,887) (43.1%)64045: CONTRACTS 34,161 19,056 11,834 12,500 8,333 (3,501) (29.6%)64075: COURIER 4,653 1,696 2,687 3,500 2,644 (42) (1.6%)64083: ACCESSIBILITY COSTS 34,582 3,362 - - - - (100.0%)Subtotal: 64000: SERVICES ANDCONSULTANTS165,999 86,914 86,641 67,362 86,240 (401) (0.5%)Expenses Budgeted 1,005,573 805,767 765,141 831,689 832,386 67,245 8.8%Revenues:52113:AFFIDAVITS/COMMISSIONING(2,823) (3,172) (4,409) (3,740) (4,806) (397) 9.0%Page 10 of 70
2021 2022 2023 2024 2024 2024 Forecast vs 2024 Forecast vsActual Actual Actual Budget Forecast 2023 Actual 2023 Actual Variance Explanation56122: CIVIL MARRIAGESREVENUE- - (13,239) (15,000) (15,000) (1,761) 13.3%56101: MARRIAGE LICENSES (34,272) (17,552) (30,475) (31,500) (30,000) 475 (1.6%)56102: LOTTERY LICENSES (1,104) (3,048) (2,765) (500) (1,010) 1,755 (63.5%)56103: BURIAL/BIRTH LICENSES (10,516) (13,362) (13,904) (14,500) (14,611) (707) 5.1%56126: OTHER USER FEES - - (508) - (511) (3) 0.6%Subtotal: 50000: REVENUES (48,715) (37,134) (65,300) (65,240) (65,938) (638) 1.0%Revenues Budgeted (48,715) (37,134) (65,300) (65,240) (65,938) (638) (1.0%)Total Levy 956,858 768,633 699,841 766,449 766,448 66,607 (9.5%)Page 11 of 70
2021 2022 2023 2024 2024 2024 Forecast vs 2024 Forecast vsActual Actual Actual Budget Forecast 2023 Actual 2023 Actual Variance ExplanationGross Expenditures:61001: SALARIES - F/T 853,533 980,263 1,022,246 1,248,270 1,203,252 181,007 17.7% Additional Customer Service positions for Aurora Town Square.61002: SALARIES - O/T 8,579 15,705 11,655 - 3,382 (8,273) (71.0%)61003: SALARIES - P/T 277,530 404,286 436,529 495,383 512,320 75,791 17.4%Additional Customer Service positions for Aurora Town Square, and support increase Recreation programming.61004: VACATION PAY - - 907 - 3,004 2,097 231.3%61005: SICK PAY 4,680 29,080 14,715 - 7,415 (7,300) (49.6%)61090: YEAR END ACCRUALS (14,622) (9,445) 10,853 - - (10,853) (100.0%)61101: BENEFITS - OMERS 89,849 102,199 100,846 118,762 119,055 18,209 18.1%61102: BENEFITS - EHT 22,868 27,979 29,042 33,401 33,031 3,989 13.7%61103: BENEFITS - WSIB 8,438 10,450 10,851 12,846 12,690 1,839 16.9%61104: BENEFITS - CPP 51,127 66,848 68,960 66,491 73,588 4,628 6.7%61105: BENEFITS - EI 21,093 27,687 28,731 25,595 26,600 (2,130) (7.4%)61106: BENEFITS - DENTAL 17,745 17,194 15,962 27,720 23,543 7,581 47.5%61107: BENEFITS - HEALTH 27,691 28,415 27,240 43,560 37,337 10,097 37.1%61108: BENEFITS - LTD/ADD 22,587 30,790 26,488 30,711 28,594 2,106 7.9%61109: BENEFITS - OTHER 2,008 - - 4,559 3,075 3,075 -Subtotal: 61000: SALARIES ANDBENEFITS1,393,107 1,731,450 1,805,024 2,107,298 2,086,887 281,863 15.6%62001: OFFICE SUPPLIES 4,120 4,818 4,075 7,114 7,114 3,039 74.6%62008: COMPUTER SUPPLIES 1,757 5,099 884 1,685 4,551 3,666 414.7%62015: HEATING FUEL 2,296 - - - - - -62016: OPERATING MATERIALS 24,436 11,097 78,842 14,224 14,983 (63,859) (81.0%)Deferred revenue of $62,500 was posted to this line in error. Should have been posted to account 56401 Sponsorships. The 2023 actuals should have been $16,342.00.62019: LICENSES 934 4,277 1,754 5,000 5,000 3,246 185.1%62045: MEETING EXPENSES (12) 528 387 468 429 41 10.7%62058: ADVERTISING MATERIALS 3,704 12,486 32,239 10,126 13,618 (18,621) (57.8%)Subtotal: 62000: MATERIALS ANDSUPPLIES37,235 38,306 118,181 38,617 45,695 (72,486) (61.3%)64008: MOBILE PLAN CHARGES 3,045 2,281 962 551 599 (363) (37.8%)64013: COURSES & SEMINARS 2,259 1,558 - 3,700 3,699 3,699 -64016: MILEAGE - - 287 600 599 312 108.9%64025: BUILDING REPAIR &MAINTENANCE- - (50) - - 50 100.0%64045: CONTRACTS 78,300 104,379 12,695 8,727 8,727 (3,968) (31.3%)64137: ACTIVE NET CHARGES &FEES10,287 22,311 24,433 24,000 24,000 (433) (1.8%)64138: ACTIVE NET ROOMCHARGES/FEES4,277 9,646 17,841 20,000 20,001 2,160 12.1%Subtotal: 64000: SERVICES ANDCONSULTANTS98,168 140,174 56,168 57,578 57,625 1,457 2.6%45003: TRANSFERS TO RESERVES 28,073 104,508 126,474 157,575 157,575 31,100 (24.6%)Subtotal: 45000: TRANSFERS TO 28,073 104,508 126,474 157,575 157,575 31,100 (24.6%)Page 12 of 70
2021 2022 2023 2024 2024 2024 Forecast vs 2024 Forecast vsActual Actual Actual Budget Forecast 2023 Actual 2023 Actual Variance ExplanationExpenses Budgeted 1,556,582 2,014,439 2,105,848 2,361,068 2,347,782 241,934 11.5%Revenues:52102: ADMINISTRATIVE FEEREVENUE(52) 83 96 - - (96) 100.0%52300: RENTAL (50,929) (133,420) (168,353) (141,400) (161,400) 6,952 (4.1%)52301: FACILITY RENTALS -VENDING MACHINE SALES(1) (13,566) (16,908) (29,000) (29,001) (12,092) 71.5%52323: FACILITY RENTALS ICERENTAL(1,455,561) (1,434,442) (2,039,618) (2,028,000) (2,050,000) (10,382) 0.5%54005: PROVINCIALGRANTS/CONTRIBUTIONS(49,778) (82,025) - - - - -56003: ADVERTISING SALES (21,675) (92,528) (136,111) (133,566) (141,434) (5,323) 3.9%56401: SPONSORSHIPS (34,072) (112,947) (205,445) (168,575) (128,575) 76,870 (37.4%)Deferred revenue of $62,500 should have been posted to this account vs account 62016 Operating Materials above. The 2023 actuals should have been ($142,945).56126: OTHER USER FEES (34,403) (11,488) (13,857) (11,401) (14,000) (143) 1.0%56999: FINANCE - OVER/UNDER - - - - 4 4 -Subtotal: 50000: REVENUES (1,646,472) (1,880,333) (2,580,195) (2,511,942) (2,524,406) 55,790 (2.2%)Revenues Budgeted (1,646,472) (1,880,333) (2,580,195) (2,511,942) (2,524,406) 55,790 2.2%Total Levy (89,890) 134,106 (474,348) (150,874) (176,624) 297,723 (62.8%)Page 13 of 70
2021 2022 2023 2024 2024 2024 Forecast vs 2024 Forecast vsActual Actual Actual Budget Forecast 2023 Actual 2023 Actual Variance ExplanationGross Expenditures:61001: SALARIES - F/T 1,409,416 1,514,476 1,917,679 1,765,209 1,701,042 (216,637) (11.3%)Vacancies resulted in some gaps in staffing for periods of time and back fills being paid at lower steps.61002: SALARIES - O/T 11,632 15,455 23,984 - 3,436 (20,548) (85.7%)Reduced overtime anticipated.61003: SALARIES - P/T 693,565 1,231,395 1,319,006 1,884,078 1,914,485 595,479 45.1%Minimum wage increases and more staff required to deliver more programming offset by increase in revenue.61004: VACATION PAY - - 17,669 - 580 (17,089) (96.7%)61005: SICK PAY 16,235 38,157 26,718 - 10,051 (16,668) (62.4%)61006: LIEU TIME - - 89 - 1,638 1,549 1,735.2%61090: YEAR END ACCRUALS (32,865) (2,361) (7,002) - - 7,002 100.0%61101: BENEFITS - OMERS 160,248 161,906 185,682 180,538 186,778 1,096 0.6%61102: BENEFITS - EHT 42,114 55,117 64,567 68,985 65,223 656 1.0%61103: BENEFITS - WSIB 15,975 20,844 24,628 26,533 25,087 459 1.9%61104: BENEFITS - CPP 78,373 104,734 117,729 88,176 100,313 (17,416) (14.8%)61105: BENEFITS - EI 37,156 53,181 65,355 32,419 36,255 (29,100) (44.5%)Variance relates to budgeting for EI at lump sum level vs. actuals based on actual payroll amount. IE - Camp staff.61106: BENEFITS - DENTAL 25,940 20,886 21,782 31,416 28,054 6,273 28.8%61107: BENEFITS - HEALTH 39,927 34,875 37,216 49,368 44,609 7,392 19.9%61108: BENEFITS - LTD/ADD 39,925 48,868 41,513 42,957 40,816 (697) (1.7%)61109: BENEFITS - OTHER 3,272 - - 6,376 4,294 4,294 -Subtotal: 61000: SALARIES ANDBENEFITS2,540,915 3,297,531 3,856,615 4,176,056 4,162,661 306,046 7.9%62001: OFFICE SUPPLIES 2,023 5,770 5,491 3,800 3,518 (1,973) (35.9%)62010: SAFETY SUPPLIES - - 30 - - (30) (100.0%)62011: CLOTHING ALLOWANCE 3,716 3,903 5,302 5,400 5,392 89 1.7%62016: OPERATING MATERIALS 57,674 42,522 87,590 78,000 83,629 (3,962) (4.5%)62019: LICENSES 1,292 1,367 1,367 1,400 1,343 (24) (1.7%)62021: EQUIPMENT - OTHER 14,903 34,624 22,810 20,500 17,918 (4,892) (21.4%)62025: PROGRAM MATERIALS 36,998 53,312 66,782 77,200 75,204 8,422 12.6%62045: MEETING EXPENSES 17,383 12,939 1,526 2,900 3,875 2,348 153.8%62047: SPONSORSHIP SUPPLIES 2,314 6,812 4,915 10,000 11,135 6,219 126.5%Subtotal: 62000: MATERIALS ANDSUPPLIES136,303 161,249 195,814 199,200 202,011 6,198 3.2%64002: CONFERENCES - - 1,294 - - (1,294) (100.0%)64008: MOBILE PLAN CHARGES 6,940 4,339 8,780 17,627 13,915 5,135 58.5%64013: COURSES & SEMINARS 3,999 4,940 7,137 43,500 39,538 32,400 454.0%As per the Town's new training and development strategy, more staff training is taking place. This budget allows for $2,000 per FT staff person.64014: MANDATORY COURSES &SEMINARS- - - 1,800 1,800 1,800 -64015: MEMBERSHIPS 1,779 2,630 1,910 2,000 2,156 246 12.9%64016: MILEAGE 1,661 2,048 3,406 2,825 4,652 1,246 36.6%64020: EQUIPMENT REPAIRS 3,030 11,814 19,671 25,700 22,582 2,911 14.8%64021: EQUIPMENT RENTALS - - - 500 333 333 -Page 14 of 70
2021 2022 2023 2024 2024 2024 Forecast vs 2024 Forecast vsActual Actual Actual Budget Forecast 2023 Actual 2023 Actual Variance Explanation64029: ADVERTISING SERVICES 4,039 7,508 17,525 6,200 6,009 (11,516) (65.7%)64033: PRINTING - 153 - 500 333 333 -64036: POLICE SEARCHES - - - 200 133 133 -64045: CONTRACTS 95,951 269,223 377,028 513,900 518,805 141,777 37.6%Increase in contracted services for program delivery (mainly pickleball), offset by increase in revenue.64050: RENTALS - 12,451 24,300 18,000 15,050 (9,250) (38.1%)64051: CONTRACTS - OUTINGS - 33,702 53,106 60,000 43,751 (9,355) (17.6%)64055: PROGRAMS - ADULT - - 503 - - (503) (100.0%)64056: PROGRAM SUPPLIES - - 611 - 150 (461) (75.4%)64065: GUARD TEAMCOMPETITION- - 500 500 500 - -64137: ACTIVE NET CHARGES &FEES29,503 52,540 127,570 128,600 132,939 5,369 4.2%65901: COST RECOVERY (1,445) (3,441) (3,418) (3,000) (2,613) 805 23.6%Subtotal: 64000: SERVICES ANDCONSULTANTS145,457 397,908 639,924 818,852 800,034 160,110 25.0%67001: COMMUNITY GRANTS - 16,150 19,003 30,000 25,889 6,886 36.2%Subtotal: 67000: GRANTS ANDEXTERNAL TRANSFERS- 16,150 19,003 30,000 25,889 6,886 36.2%Expenses Budgeted 2,822,675 3,872,838 4,711,356 5,224,108 5,190,595 479,239 10.2%Revenues:52315: COMMUNITY PROGRAMS -PRESCHOOL(40,496) (80,673) (63,712) (107,000) (37,684) 26,028 (40.9%)Community demand for preschool programming is declining.52317: COMMUNITY PROGRAMS -CAMPS(171,577) (510,974) (850,124) (768,960) (731,977) 118,147 (13.9%)2024 year-end is likely to finish in line with 2023.52318: PROGRAM ADAPTED - (2,825) (4,432) - - 4,432 (100.0%)52306: FITNESS PROGRAMS-MEMBERSHIPS - FITNESS13,202 (173,550) (382,849) (348,600) (346,428) 36,421 (9.5%)52307: FITNESS PROGRAMS -MEMBERSHIPS - RACQUET(1,457) (16,710) (30,891) (17,000) (18,495) 12,396 (40.1%)52310: FITNESS PROGRAMS -PROGRAM - FITNESS(4,001) (7,176) (14,738) (14,280) (16,432) (1,694) 11.5%52311: FITNESS PROGRAMS-PROGRAM - RACQETS(1,219) (9,962) (15,894) (12,240) (11,525) 4,369 (27.5%)52320: FITNESS PROGRAMS -ADMISSIONS - FITNESS(23,588) (22,945) (31,365) (28,040) (28,991) 2,374 (7.6%)52321: FITNESS PROGRAMS -ADMISSIONS - RACQUETS(1,023) (7,716) (6,359) (12,000) (10,920) (4,561) 71.7%52326: FITNESS PROGRAMS -PERSONAL TRAINING- (3,944) (8,358) (3,530) (4,064) 4,294 (51.4%)52308: AQUATICS PROGRAMS -MEMBERSHIPS3,223 (43,119) (73,903) (35,680) (42,759) 31,143 (42.1%)2024 year-end is likely to finish in line with 2023.52312: AQUATICS PROGRAMS -PROGRAM(205,262) (565,996) (974,011) (672,500) (687,535) 286,476 (29.4%)2024 year-end is likely to finish in line with 2023.52322: AQUATICS PROGRAMS-ADMISSIONS(39,437) (65,248) (59,506) (104,000) (95,508) (36,002) 60.5%Admissions declining as people are opting for memberships instead.52328: AQUATICS PROGRAMS -LOCKER FEES465 (441) (606) (5,345) (860) (255) 42.0%Page 15 of 70
2021 2022 2023 2024 2024 2024 Forecast vs 2024 Forecast vsActual Actual Actual Budget Forecast 2023 Actual 2023 Actual Variance Explanation52324: YOUTH PROGRAMS -PUBLIC SKATING(17,623) (30,232) (35,489) (33,570) (30,690) 4,799 (13.5%)52325: YOUTH PROGRAMS -SHINNY HOCKEY(6,293) (13,427) (19,905) (13,760) (13,280) 6,625 (33.3%)52309: PROGRAMS (99,327) (170,369) (265,585) (225,000) (204,424) 61,161 (23.0%)2024 year-end is likely to finish in line with 2023.52305: MEMBERSHIP FEES (3,483) (38,313) (46,315) (52,663) (50,264) (3,949) 8.5%52313: COMMUNITY PROGRAMS -ADULT(5,818) (21,063) (83,485) (27,000) (60,403) 23,081 (27.6%)2024 year-end is likely to finish in line with 2023.52314: COMMUNITY PROGRAMS -CHILDREN(23,256) (82,755) (92,125) (85,580) (86,488) 5,637 (6.1%)52339: YOUTH PROGRAMS - ROCKWALL- (699) (1,235) (1,800) (1,361) (126) 10.2%54001: FEDERALGRANTS/CONTRIBUTION(109,881) (162,124) (113,500) (50,000) (50,833) 62,667 (55.2%)Some grants no longer available.54005: PROVINCIALGRANTS/CONTRIBUTIONS(153,312) (537,670) (64,761) (51,000) (44,675) 20,086 (31.0%)Some grants no longer available.54100: OTHER GRANTS (21,616) (7,500) (16,816) (5,500) (3,667) 13,150 (78.2%)56401: SPONSORSHIPS - (2,700) (7,149) (7,000) (5,767) 1,382 (19.3%)56126: OTHER USER FEES (76,438) (172,949) (252,421) (242,230) (224,092) 28,328 (11.2%)These are pool rental permits, with user groups are renting less time .Subtotal: 50000: REVENUES (988,217) (2,751,078) (3,515,533) (2,924,278) (2,809,123) 706,409 (20.1%)41003: TRANSFERS FROMRESERVES(1,926) - - (36,000) (32,500) (32,500) -Subtotal: 41000: TRANSFERS FROMRESERVE(1,926) - - (36,000) (32,500) (32,500) -Revenues Budgeted (990,143) (2,751,078) (3,515,533) (2,960,278) (2,841,623) 673,909 19.2%Total Levy 1,832,532 1,121,760 1,195,823 2,263,830 2,348,971 1,153,148 (96.4%)Page 16 of 70
2021 2022 2023 2024 2024 2024 Forecast vs 2024 Forecast vsActual Actual Actual Budget Forecast 2023 Actual 2023 Actual Variance ExplanationGross Expenditures:61001: SALARIES - F/T 169,265 246,251 276,223 347,935 331,851 55,628 20.1%Staff vacancy results in unspent budget.61002: SALARIES - O/T 9,974 15,937 7,638 - 2,552 (5,085) (66.6%)61003: SALARIES - P/T 82,182 38,030 40,049 18,220 18,297 (21,752) (54.3%)Contracted staff charged to PT wages.61004: VACATION PAY - 879 - - 986 986 -61005: SICK PAY - 1,435 230 - 6,908 6,679 2,906.9%61006: LIEU TIME - - 734 - - (734) (100.0%)61090: YEAR END ACCRUALS (1,786) 10,383 4,431 - - (4,431) (100.0%)61101: BENEFITS - OMERS 23,890 22,339 29,794 35,753 34,617 4,823 16.2%61102: BENEFITS - EHT 5,181 5,512 6,312 7,119 6,965 654 10.4%61103: BENEFITS - WSIB 1,899 1,961 2,349 2,738 2,679 329 14.0%61104: BENEFITS - CPP 10,801 10,807 13,386 15,715 16,818 3,432 25.6%61105: BENEFITS - EI 4,653 4,340 5,259 6,278 6,137 879 16.7%61106: BENEFITS - DENTAL 2,530 3,828 4,794 7,392 6,430 1,636 34.1%61107: BENEFITS - HEALTH 5,057 6,578 8,186 11,616 10,206 2,020 24.7%61108: BENEFITS - LTD/ADD 4,582 7,382 8,340 8,886 8,419 79 0.9%61109: BENEFITS - OTHER 227 - - 1,319 889 889 -Subtotal: 61000: SALARIES ANDBENEFITS318,455 375,663 407,725 462,970 453,757 46,032 11.3%62001: OFFICE SUPPLIES 297 364 878 800 759 (118) (13.5%)62011: CLOTHING ALLOWANCE 287 1,100 293 800 767 474 161.6%62016: OPERATING MATERIALS 79,193 89,989 84,350 103,200 100,864 16,513 19.6%62026:PROMOTIONAL/RECOGNITION780 2,746 1,117 3,450 3,314 2,197 196.7%62058: ADVERTISING MATERIALS 4,000 - - - - - -Subtotal: 62000: MATERIALS ANDSUPPLIES84,557 94,199 86,638 108,250 105,703 19,066 22.0%64001: SPECIAL FUNCTIONS - - - 100,000 100,333 100,333 -64008: MOBILE PLAN CHARGES 2,896 826 1,002 1,102 967 (35) (3.5%)64013: COURSES & SEMINARS 230 - 296 - - (296) (100.0%)64015: MEMBERSHIPS - - 300 - - (300) (100.0%)64016: MILEAGE 127 689 471 2,000 1,609 1,138 241.7%64021: EQUIPMENT RENTALS 28,951 40,235 47,359 62,200 59,952 12,592 26.6%64029: ADVERTISING SERVICES 40,181 35,420 24,429 27,900 15,597 (8,832) (36.2%)64033: PRINTING 1,420 3,880 6,141 9,700 7,949 1,808 29.4%64045: CONTRACTS 241,395 315,338 353,968 414,700 413,864 59,896 16.9%Inflation for some services resulting in 20% increases and event enhancements offset by Magna donation.64137: ACTIVE NET CHARGES &FEES(788) 1,399 607 1,375 1,223 616 101.5%Subtotal: 64000: SERVICES ANDCONSULTANTS314,412 397,787 434,574 618,977 601,494 166,920 38.4%45003: TRANSFERS TO RESERVES - 28,311 8,295 - - (8,295) 100.0%Subtotal: 45000: TRANSFERS TO - 28,311 8,295 - - (8,295) 100.0%Page 17 of 70
2021 2022 2023 2024 2024 2024 Forecast vs 2024 Forecast vsActual Actual Actual Budget Forecast 2023 Actual 2023 Actual Variance ExplanationExpenses Budgeted 717,425 895,960 937,231 1,190,197 1,160,954 223,723 23.9%Revenues:52319: SPECIAL EVENTSADMISSIONS(6,192) (25,421) (26,453) (19,000) (18,784) 7,670 (29.0%)52329: SPECIAL EVENTS - SALESCOMMISSIONS- (6,682) (2,391) (5,300) (6,338) (3,947) 165.1%52336: SPECIAL EVENTS -VENDOR FEES(1,496) (12,501) (15,787) (3,800) (7,360) 8,427 (53.4%)52337: SPECIAL EVENTS - FLOATREGISTRATION FEES(406) (1,300) (1,753) (1,900) (1,300) 453 (25.8%)52338: SPECIAL EVENTS - ENTRYFEES(12,300) (17,758) (16,899) (28,200) (27,268) (10,369) 61.4%54001: FEDERALGRANTS/CONTRIBUTION- (32,400) (65,100) (25,000) (25,000) 40,100 (61.6%)Some grants no longer available.54005: PROVINCIALGRANTS/CONTRIBUTIONS(155,271) (118,334) (30,209) - - 30,209 (100.0%)Some grants no longer available.56003: ADVERTISING SALES (32,975) (31,071) (30,927) (30,000) (30,958) (31) 0.1%56401: SPONSORSHIPS (27,550) (59,311) (52,295) (25,000) (46,479) 5,815 (11.1%)56402: DONATIONS - (3,900) (61,537) (55,000) (54,635) 6,902 (11.2%)Subtotal: 50000: REVENUES (236,190) (308,679) (303,349) (193,200) (218,121) 85,229 (28.1%)41003: TRANSFERS FROMRESERVES(3,500) - - (112,000) (74,667) (74,667) -Subtotal: 41000: TRANSFERS FROMRESERVE(3,500) - - (112,000) (74,667) (74,667) -Revenues Budgeted (239,690) (308,679) (303,349) (305,200) (292,787) 10,562 3.5%Total Levy 477,735 587,282 633,882 884,997 868,167 234,285 (37.0%)Page 18 of 70
2021 2022 2023 2024 2024 2024 Forecast vs 2024 Forecast vsActual Actual Actual Budget Forecast 2023 Actual 2023 Actual Variance ExplanationGross Expenditures:61001: SALARIES - F/T 1,687,594 1,821,870 2,111,712 2,414,776 2,356,452 244,740 11.6%Increase due to new staff for ATS.61002: SALARIES - O/T 95,048 139,952 141,459 40,823 68,903 (72,556) (51.3%)Less overtime anticipated.61003: SALARIES - P/T 303,424 369,765 496,949 455,283 519,131 22,182 4.5%61004: VACATION PAY 8,506 6,328 10,492 - - (10,492) (100.0%)61005: SICK PAY 17,003 85,497 54,882 - 16,805 (38,076) (69.4%)Less sick pay expense forecasted.61090: YEAR END ACCRUALS (1,461) 1,517 14,321 - - (14,321) (100.0%)61101: BENEFITS - OMERS 196,071 187,659 214,011 238,212 229,310 15,299 7.1%61102: BENEFITS - EHT 43,029 47,426 55,023 56,251 57,440 2,417 4.4%61103: BENEFITS - WSIB 16,146 17,736 20,738 21,635 22,076 1,338 6.5%61104: BENEFITS - CPP 89,906 102,994 118,373 116,103 128,430 10,057 8.5%61105: BENEFITS - EI 37,563 43,416 50,796 48,112 51,682 887 1.7%61106: BENEFITS - DENTAL 36,245 32,681 33,594 56,364 47,258 13,664 40.7%61107: BENEFITS - HEALTH 57,446 54,856 58,704 88,572 75,818 17,114 29.2%61108: BENEFITS - LTD/ADD 38,499 48,747 46,362 54,350 49,195 2,833 6.1%61109: BENEFITS - OTHER 3,825 - - 9,088 6,166 6,166 -Subtotal: 61000: SALARIES ANDBENEFITS2,628,843 2,960,446 3,427,416 3,599,568 3,628,665 201,250 5.9%62001: OFFICE SUPPLIES 1,973 2,413 2,606 2,678 1,719 (886) (34.0%)62011: CLOTHING ALLOWANCE 12,644 9,869 20,860 22,000 18,777 (2,083) (10.0%)62014: UTILITIES 1,610,850 1,786,165 1,691,636 2,285,064 1,989,143 297,507 17.6%Budgeted for new ATS facility.62015: HEATING FUEL 305,339 427,461 579,116 476,226 505,172 (73,944) (12.8%)Heating Fuel savings expected..62016: OPERATING MATERIALS 204 1,360 136 - - (136) (100.0%)62019: LICENSES 1,742 6,840 3,123 7,000 6,943 3,819 122.3%62020: VEHICLE SUPPLIES 5,998 13,444 12,343 15,250 17,873 5,530 44.8%62022: TOOLS - 311 - - - - -62040: BUILDING SUPPLIES 16,328 27,588 42,067 51,500 45,595 3,529 8.4%62045: MEETING EXPENSES - - 100 450 50 (50) (49.9%)62070: OP MAT CATERING 1,033 885 4,108 4,000 2,752 (1,356) (33.0%)62071: OP MAT HDWR & TOOLS 27,924 20,853 22,269 51,100 30,902 8,633 38.8%62072: OP MAT OFFICEFURNITURE3,013 8,290 2,728 6,000 4,100 1,372 50.3%62073: OP MAT PARTS 54 - - - - - -62075: OP MAT RECYCLING 503 578 - 5,600 2,500 2,500 -62076: OP MAT SIGNS 6,244 2,996 1,687 7,200 6,550 4,863 288.3%62077: OP MATTELECOMMUNICATIONS- - - 6,000 1,700 1,700 -62078: OP MAT AUDIO/VIDEO 5,069 5,315 6,297 8,000 7,798 1,501 23.8%62079: OP MAT ELECTRICALSUPPLY268 894 - - ---62080: OP MAT LOCKS,DOORS &WINDOWS1,303 - - - - - -Page 19 of 70
2021 2022 2023 2024 2024 2024 Forecast vs 2024 Forecast vsActual Actual Actual Budget Forecast 2023 Actual 2023 Actual Variance Explanation62081: OP MAT PAINTINGSUPPLIES50------62082: OP MAT PEST CONTROL 4,001 11,038 20,918 18,423 17,475 (3,443) (16.5%)62083: OP MAT JANITORIALSUPPLY38,733 78,290 95,883 101,626 95,316 (567) (0.6%)Subtotal: 62000: MATERIALS ANDSUPPLIES2,043,271 2,404,591 2,505,877 3,068,117 2,754,366 248,489 9.9%64005: TELEPHONE SERVICEAGREEMENT2,205 5,655 5,776 - 6,403 627 10.8%64008: MOBILE PLAN CHARGES 9,726 5,994 8,059 10,332 6,470 (1,589) (19.7%)64013: COURSES & SEMINARS - - 358 - - (358) (100.0%)64014: MANDATORY COURSES &SEMINARS11,650 7,357 9,062 15,280 15,400 6,338 69.9%64015: MEMBERSHIPS 5,858 2,941 4,809 6,000 4,578 (230) (4.8%)64016: MILEAGE 348 591 1,308 2,500 1,916 607 46.4%64030: CONSULTING 69,706 1,097 - - - - -64045: CONTRACTS 239,168 555,929 453,316 166,200 230,274 (223,043) (49.2%)Budget moved to ATS Division.64048: WASTE DISPOSAL FEE 1,815 139 - 56,400 - - -64062: REALTY TAXES 63,699 64,599 82,744 65,550 65,764 (16,980) (20.5%)64094: EQUIP SERV CONTTELECOMMUN28,341 29,042 30,719 35,000 37,404 6,685 21.8%64099: COMPRESSOR REPRSCONTRACT22,698 28,445 12,773 - - (12,773) (100.0%)64100: COMPRESSOR REPRS R&M 29,096 71,795 62,670 93,373 108,073 45,403 72.4%Consolidated Compressor Repairs Contract line therefore all expenses reflected in this line item.64101: BUILDING R&M 119,500 135,148 141,446 163,760 170,621 29,174 20.6%Budgeted for new ATS facility.64102: R&M ARENA 411 - - - - - -64103: R&M POOL 203 - - - - - -64104: R&M GENERATOR 17,698 18,718 30,548 41,622 28,211 (2,338) (7.7%)64105: R&M LIFE SAFETY 85,709 93,857 144,157 137,873 130,406 (13,751) (9.5%)64106: R&M LOCKS, DOORS &WINDOWS40,609 92,401 49,624 80,127 67,582 17,958 36.2%64107: R&MPAINTING/CONTRACTOR4,814 2,653 7,579 32,100 19,966 12,387 163.4%64108: R&M PLUMBING 42,132 67,518 57,924 69,519 67,525 9,601 16.6%64109: R&M ROOFING 27,256 16,892 9,128 25,715 8,322 (805) (8.8%)64111: R&M ELECTRICAL 47,300 53,509 66,647 117,654 113,203 46,556 69.9%Budgeted for ATS facility.64112:R&M ELEVATOR - - 153 - 8,598 8,446 5,533.0%64113: R&M HVAC 664,165 448,316 307,505 337,290 326,049 18,544 6.0%64114: R&M HVAC BAS 36,023 31,969 60,839 51,054 19,429 (41,410) (68.1%)Higher than expected repairs in 2023 (ie: Dectron repairs at AFLC, Chamber of Commerce and Yonge St Properties).64115: R&M HVAC WATERTREATMENT19,156 41,071 14,327 38,207 23,116 8,789 61.3%64116: R&M SECURITY 17,237 23,571 14,411 44,604 32,702 18,291 126.9%64121: CONTRACTS CLEANING 562,648 580,772 609,732 707,205 689,573 79,841 13.1%Budgeted for ATS facility.64122: CONTRACTS ELEVATOR 22,746 30,568 27,889 51,956 37,813 9,924 35.6%Page 20 of 70
2021 2022 2023 2024 2024 2024 Forecast vs 2024 Forecast vsActual Actual Actual Budget Forecast 2023 Actual 2023 Actual Variance Explanation64137: ACTIVE NET CHARGES &FEES3,326 6,337 11,785 8,700 8,847 (2,937) (24.9%)65901: COST RECOVERY - - - (50,000) (50,000) (50,000) -Subtotal: 64000: SERVICES ANDCONSULTANTS2,195,244 2,416,884 2,225,287 2,308,021 2,178,246 (47,041) (2.1%)66002: DEBENT INT & CHGS - 36,647 36,088 38,181 44,063 7,975 22.1%66001: BANK CHARGES - 70 - - - - -Subtotal: 66000: FINANCIALCHARGES- 36,717 36,088 38,181 44,063 7,975 22.1%45001: TRANSFERS TOOPERATING- - 45,641 - - (45,641) 100.0%45003: TRANSFERS TO RESERVES 439,115 59,264 448,819 63,182 62,286 (386,533) 86.1%45007: TRANSFERS TO DEBT - - 46,193 89,652 106,520 60,327 (130.6%)Subtotal: 45000: TRANSFERS TO 439,115 59,264 540,653 152,834 168,807 (371,847) 68.8%Expenses Budgeted 7,306,473 7,877,901 8,735,320 9,166,721 8,774,146 38,826 0.4%Revenues:52332: LEASES (588,243) (728,311) (742,748) (926,801) (796,953) (54,205) 7.3%54005: PROVINCIALGRANTS/CONTRIBUTIONS- (145,000) (76,875) - - 76,875 (100.0%)Safe Restart funding allocated in 2023, is not budgeted or forecasted for 2024.54100: OTHER GRANTS - (9,045) - - - - -56126: OTHER USER FEES (333,746) (331,043) (820,799) (746,154) (812,980) 7,820 (1.0%)Subtotal: 50000: REVENUES (921,989) (1,213,399) (1,640,422) (1,672,955) (1,609,932) 30,490 (1.9%)41002: TRANSFERS FROMCAPITAL- - - (167,530) (111,687) (111,687) -41003: TRANSFERS FROMRESERVES(93,065) - - (349,777) (349,778) (349,778) -Subtotal: 41000: TRANSFERS FROMRESERVE(93,065) - - (517,307) (461,464) (461,464) -Revenues Budgeted (1,015,054) (1,213,399) (1,640,422) (2,190,262) (2,071,397) (430,975) (26.3%)Total Levy 6,291,420 6,664,501 7,094,898 6,976,459 6,702,750 (392,148) 5.5%Page 21 of 70
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, Advisor, Financial Management
Date: September 10, 2024
Recommendation
1. That the memorandum regarding the Prudent Investor Update be received; and
2. That the Finance Advisory Committee comments regarding the Prudent Investor
Update be received and referred to staff for consideration and further action as
appropriate.
Background
In March 2023, the transition to the Prudent Investor regime was completed with the
transfer of funds to the ONE joint Investment Board (JIB). As of December 31, 2023, the
Town achieved a realized rate of return of 2.6 percent and an unrealized return of 4.1
percent on its prudent investor investments.
Analysis
Aurora’s ONE JIB investments continue to perform well
Aurora’s investments with ONE JIB continue to benefit from their exposure to a wider
range of equity investment options, showing a 3.4 percent return year-to-date and a 10.3
percent return since inception. The complete investment reports from ONE Investment
for the quarters ending March 31, 2024 and June 30, 2024, can be found in Attachments
#1 and # 2 respectively.
Page 22 of 70
Prudent Investor Update
September 10, 2024 Page 2 of 2
ONE JIB municipal membership continues to rise as its benefits become clear over time
The ONE JIB continues to attract new municipalities as it demonstrates its benefits over
time; membership has now expanded to 12 municipalities. The most recent member
addition was The Regional Municipality of Durham in early 2024 who contributed
approximately $1.8 billion in funds to the ONE JIB’s overall investment portfolio. It is
anticipated that three additional municipalities will join the ONE JIB before the end of
the year.
ONE JIB Participating Municipalities
Town of Aurora Town of Alymer
Town of Bracebridge Town of Huntsville
Town of Innisfil City of Kenora
District Municipality of Muskoka Municipality of Neebing
City of Quinte West City of Thunder Bay
Town of Whitby Regional Municipality of Durham
As the ONE JIB continues to maximize its investment portfolio’s return for member
municipalities, the board has just engaged an Outsourced Chief Investment Officer
(OCIO) from PH&N Investment Services, a wholly owned subsidiary of RBC Global Asset
Management Inc. to provide it with investment services and analysis which will allow it
to expand and enhance its current investment offerings. Durham Region has already
begun investing under the new OCIO offering; Aurora, along with the remainder of the
municipal members, will transition to the OCIO model in 2025, the details of which are
currently under development.
Attachments
Attachment #1 – ONE JIB Quarterly Statement as of March 31, 2024
Attachment #2 – ONE JIB Quarterly Statement as of June 30, 2024
Page 23 of 70
QUARTERLY
INVESTMENT
REPORT
Aurora Prudent Investor Portfolio
100 John West Way, Box 1000
Aurora, ON
L4G 6J1
ONE Investment
155 University Ave, Suite 800
Toronto, Ontario
M5H 3B7
Relationship Manager
Marie Wong Takishita, Client Service Representative
416-971-9856
one@oneinvestment.ca
Rachel Wainwright-Van Kessel
(905) 727-1375 x4772
rvankessel@aurora.ca
For The Period Ended March 31, 2024
Director, Finance/Treasurer
Attachment #1Page 24 of 70
Aurora Prudent Investor Portfolio
Executive Summary for the Quarter Ended March 31, 2024
Year to date 3 Years
Since
InceptionQuarter5 Years1 Year 2 Years
Inception
Date
3.4%3.4%----10.3%09/27/2023Consolidated Portfolio Returns
Starting
IncomePortfolio
Change in
Contribution Withdrawals
Ending
Time-Weighted Rate of Return in CAD for Consolidated Holdings
Overall Asset Allocation
Balance Market Value Balance
Consolidated Portfolio Activity for Quarter
5,549,679.94CAN Bond Fund --24,352.99 5,574,032.93-
6,320,550.15CAN Equity Fund --497,730.95 6,818,281.10-
3,423,006.70Corp Bond Fund --(17,373.22)3,405,633.48-
15,887,460.30GLB Bond Fund --55,952.34 15,943,412.64-
14,476,668.38GLB Equity Fund --1,016,237.54 15,492,905.92-
45,657,365.47Total 0.000.00 1,576,900.60 47,234,266.070.00
2
All returns presented in this report are net of applicable fees. Only Returns covering periods greater than 1 year have been annualized in this reporting package.
Page 25 of 70
Aurora Prudent Investor Portfolio
Performance History At
March 31, 2024
Year to
5 YearsQuarter1 Year 2 Years
Since
Performance by Fund
Date 3 Years Inception
Inception
Date4 Years
% Annualized Returns
7.8ONE Canadian Equity Fund 7.8 -----18.2 09/27/2023
7.0ONE Global Equity Fund 7.0 -----15.1 09/27/2023
-0.5ONE Canadian Corporate Bond Fund -0.5 -----6.1 09/27/2023
0.4ONE Canadian Government Bond Fund 0.4 -----3.0 09/27/2023
0.3ONE Global Bond Fund 0.3 -----6.4 09/27/2023
Year to
5 YearsQuarter1 Year 2 Years
Since
Performance by Outcome
Date 3 Years Inception
Inception
Date4 Years
% Annualized Returns
4.5JIB1AURCONT 4.5 -----12.0 09/27/2023
1.0JIB2AURTD35 1.0 -----6.3 09/27/2023
3.8JIB3AURTD510 3.8 -----11.0 09/27/2023
5.5JIB4AURTD10P 5.5 -----13.5 09/27/2023
3
Page 26 of 70
Manager Commentary - Canadian Equity
For the Quarter Ended March 31, 2024
QUARTERLY REVIEW
Canadian equity markets had a strong start to 2024, with the ONE Canadian Equity Portfolio producing returns of
7.8% in the first quarter, modestly outperforming its benchmark. This comes on the heels of similarly strong
performance in the fourth quarter of 2023. In the 12-month period ending March 31, 2024, the ONE Canadian Equity
Portfolio generated returns of 19.7%. Market sentiment remains strong, supported by robust economic activity and the
expectation that interest rates will soon start to decline.
In the quarter, performance was aided by the manager’s stock selection. Celestica, which is a large position in the
portfolio with a 3.7% weight, made a significant contribution with returns of 56.8% in the quarter. This holding, which
was added to the portfolio in mid-2023, performed spectacularly, rising 216% in the previous nine months as the stock
has benefited from continued investor interest in generative artificial intelligence firms. Holdings in SNC Lavalin also
made a strong contribution to portfolio performance. The stock, which represents 3.4% of the portfolio, had returns of
29.9% in the quarter.
The energy sector was among the strongest sectors of the market, up 13% in the quarter, as oil prices increased to
$83 by quarter-end, up $10 in the quarter. The portfolio is structured to always have significantly less exposure to
commodity related companies than its benchmark to reduce the volatility of returns, but this also means that in
periods when energy prices rise, the portfolio only partially participates in the strength of the energy sector. The
portfolio, which employs a growth-at-a-reasonable price approach maintains a strong quality bias and remains
diversified across cyclical and defensive companies.
4
Page 27 of 70
Manager Commentary - Global Equity
For the Quarter Ended March 31, 2024
QUARTERLY REVIEW
In the first quarter of 2024, equities continued to surge thanks to resilient economic data, following similarly strong
performance in the Q4 2023. These strong returns were experienced across most global equity markets, with the
gains being broad-based. The ONE Global Equity Fund had returns of 7.0% in the quarter. Returns for the trailing 12-
month period were also very strong, up 17.2%. These returns were weaker than the fund’s performance benchmark,
as the investment manager’s allocations were not able to fully participate in some of the most favorable themes
affecting global equity markets. The fund’s exposure to the more defensive consumer staples and healthcare
industries had weaker performance than the broader market in the quarter, which contributed to the
underperformance versus its benchmark.
The strength of the US economy continues to surprise investors, as there seems little evidence that the rapid increase
in interest rates in 2022 and 2023 is constraining economic activity. Fears of an anticipated US economic slowdown
or recession appear unlikely to materialize. The strong economic activity helped bolster the performance of US equity
markets, which were among the strongest equity markets globally in the quarter.
Japanese equities were one of the few markets that outperformed US equities in the quarter, supported by the
announcement by the Japanese central bank that yield curve controls and its negative interest rate policy were being
abandoned. This was well received by investors as it indicated that these policies, which were introduced in 2016 to
bolster growth in the Japanese economy and address ongoing deflationary concerns, were no longer required. The
fund has a single holding in the Japanese equity market, KDDI Corp., a Japanese telecommunications company. It
did not benefit from the strength of the Japanese equity market, as it announced an acquisition in the quarter that was
not well received by investors.
5
Page 28 of 70
Manager Commentary - Fixed Income
For the Quarter Ended March 31, 2024
QUARTERLY REVIEW
Fixed income markets were weaker in Q1 2024 in response to a changing interest rate outlook. The ONE Canadian
Corporate Bond Fund, the ONE Canadian Government Bond, and the ONE Global Bond Fund produced returns of -
0.5, 0.4, and 0.3%, respectively, in the quarter. All three funds generated modestly positive returns over the twelve-
month period ending March 31, 2024, with returns of 3.0% for the ONE Canadian Corporate Bond Fund, 1.9% for the
ONE Canadian Government Bond Fund, and 3.8% for the ONE Global Bond Fund. These returns were broadly
reflective of returns in the fixed income market, where coupon income from bonds was offset by falling bond prices.
The first quarter returns reflect rapidly changing interest rate expectations. Yields started to decline sharply in Q4 2023
after the US Federal Reserve Board indicated that further interest rate hikes were unnecessary and rate cuts were
being planned for 2024. Markets reacted, anticipating 1.75% in rate cuts for 2024 by the Fed, with large cuts in the
Bank of Canada rate also anticipated. This market reaction was premature. As the first quarter progressed, several
economic indicators were released showing economic strength and persistent inflation, which dashed the hopes for
large rate cuts this year. Since the start of 2024, expectations for rate cuts have declined, with markets now expecting
rate cuts of only 0.5% in 2024.
The funds benefited from modestly lower credit spreads in the quarter, which had a small positive effect on
performance and helped to offset the negative impact of rising interest rates. The Global Bond Fund's performance
was also affected by currency movements. A significant portion of the fund's holdings are in US dollar-denominated
bonds. The US dollar appreciated over 2% in the quarter, which should have augmented fund returns, but the fund's
currency hedges limited this positive effect.
6
Page 29 of 70
QuantitySecurity Price % WeightUnit Cost Book Value
Aurora Prudent Investor Portfolio
As of March 31, 2024
Market Value
Consolidated Portfolio Holdings in CAD
CAN Equity Fund 1,277.92 1,454.24 14.44%4,688.529 6,818,281.105,991,581.38
GLB Equity Fund 1,161.51 1,313.59 32.80%11,794.279 15,492,905.9213,699,229.89
Corp Bond Fund 875.19 913.29 7.21%3,728.958 3,405,633.483,263,580.40
CAN Bond Fund 936.24 965.16 11.80%5,775.228 5,574,032.935,407,000.00
GLB Bond Fund 849.43 871.19 33.75%18,300.633 15,943,412.6415,545,258.76
100.00%47,234,266.07
7
Page 30 of 70
Aurora Prudent Investor Portfolio
Holdings by Account
At March 31, 2024
Account Name: Aurora - Contingency Outcome
Account Number: 570050682
Holdings Quantity Unit Cost Book Value Price Market Value Weight
Market Value
Gain (Loss)
Income
Received
For the Quarter Ending
March 31, 2024
Corp Bond Fund 920.90 875.19 805,973.09 913.29 841,054.82 5.6%(4,290.48)0.00
CAN Equity Fund 1,932.00 1,277.92 2,468,955.50 1,454.24 2,809,614.70 19.0%205,100.40 0.00
CAN Bond Fund 845.93 936.23 792,000.00 965.16 816,466.59 5.5%3,567.15 0.00
GLB Bond Fund 4,517.58 849.43 3,837,409.80 871.19 3,935,693.04 26.6%13,812.05 0.00
GLB Equity Fund 4,860.07 1,161.51 5,645,052.07 1,313.59 6,384,174.16 43.1%418,761.82 0.00
% Annualized Returns
Return Net of Fees
Quarter
Year
to Date 1 Year 2 Years 3 Years 4 Years 5 Years
Since
Inception
Inception
Date
4.5 4.5 -----12.0 09/27/2023
% Calendar Year Returns
Return Net of Fees
2023 2022 2021 2020 2019
4.5 -----
13,549,390.46 14,787,003.31 100.0%636,950.94 0.00
Aurora Prudent Investor Portfolio
Performance History
At March 31, 2024
2024
8
Page 31 of 70
Aurora Prudent Investor Portfolio
Holdings by Account
At March 31, 2024
Account Name: Aurora - Target Date 3 to 5 Year Outcome
Account Number: 570050690
Holdings Quantity Unit Cost Book Value Price Market Value Weight
Market Value
Gain (Loss)
Income
Received
For the Quarter Ending
March 31, 2024
Corp Bond Fund 1,342.98 875.19 1,175,377.41 913.29 1,226,537.78 10.4%(6,256.96)0.00
CAN Equity Fund 268.33 1,277.92 342,910.47 1,454.24 390,224.02 3.3%28,486.15 0.00
CAN Bond Fund 3,583.48 936.24 3,355,000.00 965.16 3,458,642.09 29.5%15,110.83 0.00
GLB Bond Fund 6,595.99 849.43 5,602,878.85 871.19 5,746,390.87 49.0%20,166.58 0.00
GLB Equity Fund 675.01 1,161.51 784,035.00 1,313.59 886,689.76 7.5%58,161.29 0.00
% Annualized Returns
Return Net of Fees
Quarter
Year
to Date 1 Year 2 Years 3 Years 4 Years 5 Years
Since
Inception
Inception
Date
1.0 1.0 -----6.3 09/27/2023
% Calendar Year Returns
Return Net of Fees
2023 2022 2021 2020 2019
1.0 -----
11,260,201.73 11,708,484.52 100.0%115,667.89 0.00
Aurora Prudent Investor Portfolio
Performance History
At March 31, 2024
2024
9
Page 32 of 70
Aurora Prudent Investor Portfolio
Holdings by Account
At March 31, 2024
Account Name: Aurora - Target Date 5 to 10 Year Outcome
Account Number: 570050708
Holdings Quantity Unit Cost Book Value Price Market Value Weight
Market Value
Gain (Loss)
Income
Received
For the Quarter Ending
March 31, 2024
Corp Bond Fund 1,308.10 875.19 1,144,848.13 913.29 1,194,679.36 7.1%(6,094.44)0.00
CAN Equity Fund 1,829.55 1,277.92 2,338,026.05 1,454.24 2,660,619.78 15.9%194,223.85 0.00
CAN Bond Fund 1,201.61 936.24 1,125,000.00 965.16 1,159,753.62 6.9%5,066.97 0.00
GLB Bond Fund 6,417.01 849.43 5,450,866.17 871.19 5,590,472.30 33.5%19,619.39 0.00
GLB Equity Fund 4,602.34 1,161.51 5,345,693.26 1,313.59 6,045,620.01 36.3%396,554.79 0.00
% Annualized Returns
Return Net of Fees
Quarter
Year
to Date 1 Year 2 Years 3 Years 4 Years 5 Years
Since
Inception
Inception
Date
3.8 3.8 -----11.0 09/27/2023
% Calendar Year Returns
Return Net of Fees
2023 2022 2021 2020 2019
3.8 -----
15,404,433.61 16,651,145.07 100.0%609,370.56 0.00
Aurora Prudent Investor Portfolio
Performance History
At March 31, 2024
2024
10
Page 33 of 70
Aurora Prudent Investor Portfolio
Holdings by Account
At March 31, 2024
Account Name: Aurora - Target Date 10 Year Plus Outcome
Account Number: 570050716
Holdings Quantity Unit Cost Book Value Price Market Value Weight
Market Value
Gain (Loss)
Income
Received
For the Quarter Ending
March 31, 2024
Corp Bond Fund 156.97 875.19 137,381.77 913.29 143,361.52 3.5%(731.34)0.00
CAN Equity Fund 658.63 1,277.92 841,689.36 1,454.24 957,822.60 23.4%69,920.55 0.00
CAN Bond Fund 144.19 936.23 135,000.00 965.16 139,170.63 3.4%608.04 0.00
GLB Bond Fund 770.04 849.43 654,103.94 871.19 670,856.43 16.4%2,354.32 0.00
GLB Equity Fund 1,656.84 1,161.51 1,924,449.56 1,313.59 2,176,421.99 53.2%142,759.64 0.00
% Annualized Returns
Return Net of Fees
Quarter
Year
to Date 1 Year 2 Years 3 Years 4 Years 5 Years
Since
Inception
Inception
Date
5.5 5.5 -----13.5 09/27/2023
% Calendar Year Returns
Return Net of Fees
2023 2022 2021 2020 2019
5.5 -----
3,692,624.63 4,087,633.17 100.0%214,911.21 0.00
Aurora Prudent Investor Portfolio
Performance History
At March 31, 2024
2024
11
Page 34 of 70
Aurora Prudent Investor Portfolio
COMPLIANCE CERTIFICATE
March 31, 2024
With respect to the quarter ended March 31, 2024 to the best of the knowledge and belief of ONE Investment, all assets of the
Participating Municipality under the management and control of ONE JIB pursuant to the ONE JIB Agreement have been invested and are held
In accordance with the terms of section 8.02 of the ONEJIB Agreement dated as of July 2, 2020 (the “ONE JIB Agreement”) ONE Investment
confirms as follows:
in accordance with the terms of the ONE JIB Agreement, and in a manner consistent with the IPS and the Investment Plan of the Participating
Municipality.
Keith Taylor, Chief Investment Officer, ONE Investment
On the behalf of the ONE Joint Investment Board
12
Page 35 of 70
APPENDIX
Page 36 of 70
ONE JIB ‐ Outcome Framework ‐ Target Allocations Allocation Outcome HISA Canadian Equity Fund Global Equity Fund Canadian Government Bond Fund Canadian Corporate Bond Fund Global Bond Fund Equity Fixed Income Cash Total Cash 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100% Stable Return 10.0% 9.0% 21.0% 9.0% 9.0% 42.0% 30.0% 60.0% 10.0% 100% Contingency 0.0% 18.0% 42.0% 6.0% 6.0% 28.0% 60.0% 40.0% 100% Asset Management 0.0% 27.0% 63.0% 1.5% 1.5% 7.0% 90.0% 10.0% 100% Target Date 3‐5 20.0% 3.0% 7.0% 10.5% 10.5% 49.0% 10.0% 70.0% 20.0% 100% Target Date 5‐10 0.0% 15.0% 35.0% 7.5% 7.5% 35.0% 50.0% 50.0% 100% Target Date 10+ 0.0% 22.5% 52.5% 3.75% 3.75% 17.5% 75.0% 25.0% 100% Page 37 of 70
ONE JIB ‐ Outcome Framework ‐ Defined Allocation Outcome Category Outcome Strategy Objective Risk Tolerance, Liquidity Investment Horizon Equity Fixed Income Cash Cash Cash Preservation of Capital Low risk; high liquidity < 3 years 100% Stable Return Stable Return Income generation: To generate returns to fund recurring needs Moderate risk with emphasis on growth and stable returns, regular liquidity > 5 years(Perpetual)30% 60% 10% Contingency Contingency Contributions for unexpected and infrequent events Higher risk, emphasis on longer‐term capital growth with some liquidity > 5 years(Perpetual)60% 40% Asset mgt reserves Contributions to generate returns to fund asset management reserves Higher risk, emphasis on longer‐term capital growth; low liquidity >10 years(Perpetual)90% 10% Target Date Target Date 3‐5 yrs. Preservation of capital Low risk; high liquidity 3 ‐ 5 years 10% 70% 20% Target Date 5‐10 yrs. Contributions toward capital projects, mitigate inflation impacts and meet target funding requirements Moderate risk, liquid 5 ‐ 10 years 50% 50% Target Date 10+ yrs. Contributions toward capital projects, mitigate inflation impacts and meet target funding requirements Higher risk, emphasis on long term inflation‐adjusted growth >10 years75% 25% Page 38 of 70
Glossary and Definitions for Quarterly Reports
Account
ONE Investment clients have one or more custodial accounts. All Prudent Investor Funds will be administered with ONE Investment’s custodian,
CIBC Mellon. Unlike Legal List accounts, MNRI invested in the ONE Investment Prudent Investor Funds will be under the control of the ONE Joint
Investment Board. In most cases, the Prudent Investor clients will have multiple accounts with the custodian, with the account structure based on
the investment outcomes assigned to each client. This will allow reporting to the municipal client based on the investment outcome framework.
Annual and Annualized Returns: please see Returns below.
Asset Allocation
Asset allocation is the single biggest driver of fund returns and should be set taking into account municipal risk tolerance. Also known as asset
mix, it is the combination of asset classes in a fund and is normally shown as the percentage weights in each. Example asset classes are money
market, Canadian bonds, global bonds, Canadian stocks and global stocks. Each of the ONE JIB Outcomes has an associated asset allocation that is
designed to be appropriate for the intended investment Outcome.
Asset Mix: See Asset allocation.
Benchmark
The Benchmark is the standard against which investors compare their portfolio returns to understand its performance. Benchmark can be set
either at the asset class level or for the overall portfolio. At the asset class level, benchmarks are usually chosen to represent the entire market;
active managers seek to outperform their benchmarks by at least the amount of fees they charge.
For example, a typical benchmark for Canadian stocks is the S&P/TSX Composite Index which is calculated by Standard and Poor’s (S&P) and for
Canadian money market, the typical benchmark is the FTSE 182-Day Treasury Bill Index from the Financial Times Stock Exchange Group (FTSE). For
a portfolio that aims to have risk halfway between these two asset classes, the total portfolio benchmark might be 50% S&P/TSX Composite Index
and 50% FTSE 182-Day Treasury Bill Index.
Benchmark returns are always time weighted. (See Returns below for more detail on time weighted returns)
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Blended Benchmark
A blended benchmark is a benchmark that is constructed from two or more underlying benchmarks. The weights of each underlying benchmark
used in a blended benchmark remain constant over time.
Canadian Corporate Bond Fund
The ONE Investment Canadian Corporate Bond Fund holds short and mid-term Canadian bonds managed by MFS. Based on the benchmark
duration at December 31, 2023, the permitted duration range is 3.67 to 6.67. MFS aims to outperform the benchmark, which is:
o 48% FTSE Canada Universe All Government Bond Index +
o 40% FTSE Canada Short-Term Corporate A Index +
o 10% FTSE Canada Universe Corporate AAA/AA Index +
o 2% FTSE Canada 91-Day Treasury Bill Index.
Canadian Equity Fund
The ONE Canadian Equity Fund holds Canadian stocks managed by Guardian Capital. Guardian aims for below-market risk, achieved with a ONE-
imposed constraint on the weight of Material and Energy sectors because of the expected above-market volatility of these sectors.
Canadian Government Bond Fund
This ONE Government Canadian Bond Fund holds short-term Canadian bonds managed by MFS. Based on the benchmark duration at
December 31, 2023, the permitted duration range for the Fund is 1.12 to 2.12. MFS aims to outperform the benchmark, which is:
o 60% FTSE Canada Short-Term Government Bond Index +
o 40% FTSE Canada 91-Day Treasury Bill Index.
Book Value
Book value is the Unit Cost of each holding multiplied by the number of units. It represents the amount originally paid to invest in the holding and
takes into account all contributions and withdrawals.
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CAD
This is a short form for “Canadian dollars”. Although the outcomes have exposure to foreign securities, all returns in the report reflect Canadian
dollar-based returns. Foreign holdings will be impacted by movements in foreign currencies which may impact investment returns. This impact
can be reduced by currency hedging strategies. The global equity exposure does not hedge currency exposure, but the global bond exposure may
use hedging. The degree to which global bond exposure is hedged back to the Canadian dollar may vary and will reflect the currency hedging
strategy of the external manager.
Consolidated Holdings
Consolidated holdings are the aggregate value of all investments with ONE Investment. Consolidated holdings detailed in this report only reflect
MNRI balances invested in ONE Investment’s Prudent Investor Funds and HISA balances under the control of the ONE JIB. In certain cases, clients
may hold ONE Investment Legal List portfolios or HISA which will not be reflected in consolidated holdings in this report. Additionally, ‘in-kind’
securities pledged to the ONE JIB will not be reflected in this report.
Discounts
Certain fee discounts apply for investors in the ONE Investment Prudent Investor offering. These discounts include a 4bps discount that applies to
AUM of Founding Members, and ‘tier discounts’ that apply for any investors with balances in excess of certain thresholds. These discounts would
not apply to HISA balances but would apply to balances in Legal List portfolios (if applicable). Discounts will be rebated to the municipalities on a
quarterly basis. These discounts are not taken into consideration in the performance details in this investment report.
Distribution: a cash payment of interest or dividends made by ONE Investment from a fund.
Duration
This statistic applies to bonds and is similar in concept to term to maturity. The difference is that duration also takes into account the size and
timing of interest payments. A bond with higher coupon payments will have a shorter duration than one with the same term to maturity and
lower coupon payments: the reason is that the higher-coupon bond receives more of its return earlier. The higher the duration of a bond, the
higher its sensitivity to interest rate movements.
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Fees
Fees include all expenses involved in managing the fund: external investment manager fees, custody costs, ONE Investment’s costs and
administrative costs.
Global Bond Fund
The ONE Global Bond Fund is an unconstrained global bond mandate managed by Manulife Asset Management. The unconstrained nature of the
mandate means that the fund will contain a mix of global government, corporate and securitized debt, including emerging markets and high-yield
securities. The mandate is not constrained by sector or currency. Manulife aims to outperform the benchmark, which is Bloomberg Barclays
Multiverse Index Unhedged.
Global Equity Fund
The ONE Global Equity Fund holds Global stocks managed by Mawer Investment Management. Mawer aims to outperform the benchmark, which
is MSCI All Country World Index (ACWI). This mandate invests in both emerging and developed markets. Manager will allocate capital to the best
global opportunities, which may include both large and small capitalization companies. This mandate is intended to be a broadly diversified
portfolio of wealth-creating companies bought at discounts to their intrinsic values that typically employ a long-term holding period.
High Interest Savings Account (HISA)
This bank account is provided by CIBC. Its very short-term nature precludes it from being considered an investment. Interest income from HISA
will be reflected only in the executive summary page as will a list of HISA transitions. As the HISA product is a demand deposit, its value of his
does not fluctuate daily. In this way it differs from the ONE Investment fund whose price change in response to changes in the value of underlying
investments. Returns for individual accounts holding HISA will not be presented in the report beyond what is disclosed in the executive summary.
HISA balances held in the Prudent Investor Offering reflect MNRI and will be under the control of the ONE JIB.
Holdings: the ONE Investment funds or HISA Balances held in client accounts.
Inception Date
The inception is the first date that an investment was made. For each account, this will be the first time funds were transferred in; for funds
offered by ONE Investment, it is the date the funds started. For ONE JIB Founders, the Inception date is July 2, 2020.
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Income
Income is a cash flow generated by an investment and normally includes interest on bonds and dividends on stocks. It is differentiated from
capital gains, which also contribute to returns, but which are not considered income.
Investment Manager
Investment managers are external firms hired by ONE Investment to create funds to our specifications. These are MFS Investment Management
Canada for Canadian fixed income, Manulife Asset Management for global fixed income, Guardian Capital Group Ltd for Canadian equity, and
Mawer Investment Management Ltd for global equity.
Market Value
The value of an investment at current market prices, calculated by multiplying the Price (defined below) by the number of units held.
ONE Joint Investment Board (ONE JIB)
The joint board established by founding municipalities as a municipal services board under section 202 of the Act as required under Part II of the
Regulation, and is the duly appointed Joint Investment Board for the municipality, as constituted from time to time and acting pursuant to the
Terms of Reference set out in the ONE JIB Agreement.
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Outcome
Outcome means, in the context of the Investment Plan, the same thing as ‘solution’. Investment Outcomes are a set of investment allocations
with varying risk/return characteristics. The Outcomes assigned to each municipal investor are intended to reflect the needs and circumstances of
the municipality. ONE JIB has five pre-defined basic outcomes:
Cash:
The Cash Outcome is designed for investments with a time horizon of less than 3 years. Preservation of capital and liquidity are the highest
priorities. Investments allocated to this outcome are expected to be transferred back to the care and control of the municipal treasurer
when the funds are reclassified as MRI.
Contingency:
The Contingency outcome is designed for investing contingency reserves. The funds in this outcome may be drawn upon to meet
unexpected needs and infrequent events. The investment horizon for this outcome is typically greater than 5 years, with an emphasis
placed on long-term growth and preservation of purchasing power is a key consideration.
Asset Management Reserves:
The Asset Management Reserve Outcome is specifically designed for very long investment horizons with a well-defined purpose.
Allocations to this Outcome are intended to generate returns to help fund asset management objectives. The long-term nature of asset
management reserves allows this Outcome to emphasize long-term growth.
Stable Return:
The Stable Return Outcome is designed to provide an annual income while preserving the value of the principal investment. The principal
amount is often invested in perpetuity with no intent to withdraw for the foreseeable future. This outcome is frequently used by
municipalities looking to replace the income stream of a utility that has been sold, with some or all proceeds of the sale acting as the
principal.
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Target Date:
The Target Date Outcomes are designed for contributions toward planned capital projects. There are three target date designs for different
time horizons: 3 to 5 years; 5 to 10 years; and greater than 10 years. For capital projects in the 3-to-5-year range, preservation of capital is
prioritized. For projects in the 5-to-10-year range, emphasis is placed on inflation mitigation and meeting target funding requirements. For
projects in the greater-than-10-year range, emphasis is placed on longer-term inflation adjusted growth.
Price
The price of ONE funds is the unit price at a point in time, also known as the net asset value, which is calculated daily by CIBC Mellon. This price
takes into account the last traded prices of all securities held by the manager, the bid/ask spread where no recent trade is available and a daily
accrual for all fees including investment management and administration.
Prudent Investor Standard
The standard requiring ONE JIB, when investing money under section 418.1 of the Act, to exercise the care, skill, diligence and judgement that a
prudent investor would exercise in making such an investment but does not restrict the securities in which a municipality can invest. The Prudent
Investor standard applies to the entire portfolio of Long-Term Funds under control of ONE JIB rather than to individual securities.
Quality
This statistic refers to the creditworthiness of bonds based on ratings provided by bond rating agencies such as S&P, DBRS, Fitch and Moody’s.
The highest quality bonds are rated AAA and range down from there to AA, A and BBB, all of which are investment grade ratings. Ratings below
BBB are considered high yield. The lower a credit rating, the higher a bond’s yield to maturity and commensurate risk of default on interest
payments or principal. The credit rating on an entire fund is calculated as a weighted average.
Realized and Unrealized Gains
Capital gains reflect the movement in the Price of investments as they rise over time relative to their average Unit Cost. Negative gains are losses,
meaning that the Price of the units in the account is lower than the average Price paid for them (Unit Cost). Because gains / losses are calculated
based on net asset values, they are diminished by the amount of fees. (Please see Fees, Price and Unit Cost.)
Page 45 of 70
•Unrealized gains exist “on paper” until the investment is sold in return for cash, at which point they become realized.
•Realized gains are generated by withdrawals from accounts during the time period in question based on the unit Price compared to the
Unit Cost.
Returns
Returns measure the percentage increment in value generated by investments over a period of time. Unless otherwise noted, time-weighted
total returns are reported here, which include all forms of income and capital gains. There are different aspects to return calculations explained
below.
•Calendar Year Return: reflects the total return generated by investments in the specified year any between January 1 to December 31.
•Annualized Returns: the total return generated by investments in each year for holding periods greater than one year. Annualized returns
are the geometric average over a multi-year period, meaning they represent the compound return. For periods of one year or less, the
actual return is shown without the effect of compounding.
•Returns in this report are calculated net of fees based on the Prices of the ONE Investment funds. These are calculated daily by CIBC
Mellon and take into account all fees and costs associated with managing the fund.
•Return details in this report do not account for fee discounts that may apply for some Prudent Investor clients.
•Time-weighted returns: returns in this report are time-weighted in order for them to be compared to the benchmarks. Time-weighted
returns are calculated in a way that excludes the effect of the timing of contributions and withdrawals (cash flows) from the fund. (To
capture the effect of cash flows and measure their impact on returns, investors would instead need use dollar-weighted return
calculations.)
Unit Cost
Unit Cost is the weighted average Price paid for all the Fund units held in the account and reflects the impact of units bought and sold over time.
Unrealized Gains: Please see Realized and Unrealized Gains
Value Added: The return generated by an investment manager above (or below, if negative) the benchmark.
Year to Date: The time period beginning January 1 and ending at the most recent quarter end.
Page 46 of 70
QUARTERLY
INVESTMENT
REPORT
Aurora Prudent Investor Portfolio
100 John West Way, Box 1000
Aurora, ON
L4G 6J1
ONE Investment
155 University Ave, Suite 800
Toronto, Ontario
M5H 3B7
Relationship Manager
Marie Wong Takishita, Client Service Representative
416-971-9856
one@oneinvestment.ca
Rachel Wainwright-Van Kessel
(905) 727-1375 x4772
rvankessel@aurora.ca
For The Period Ended June 30, 2024
Director, Finance/Treasurer
Attachment #2Page 47 of 70
Aurora Prudent Investor Portfolio
Executive Summary for the Quarter Ended June 30, 2024
Year to date 3 Years
Since
InceptionQuarter5 Years1 Year 2 Years
Inception
Date
-0.0%3.4%----10.3%09/27/2023Consolidated Portfolio Returns
Starting
IncomePortfolio
Change in
Contribution Withdrawals
Ending
Time-Weighted Rate of Return in CAD for Consolidated Holdings
Overall Asset Allocation
Balance Market Value Balance
Consolidated Portfolio Activity for Quarter
5,574,032.93CAN Bond Fund --63,446.06 5,637,478.99-
6,818,281.10CAN Equity Fund --(59,377.86)6,758,903.24-
3,405,633.48Corp Bond Fund --32,022.05 3,437,655.53-
15,943,412.64GLB Bond Fund --39,227.41 15,982,640.05-
15,492,905.92GLB Equity Fund --(81,354.57)15,411,551.35-
47,234,266.07Total 0.000.00 (6,036.91)47,228,229.160.00
2
All returns presented in this report are net of applicable fees. Only Returns covering periods greater than 1 year have been annualized in this reporting package.
Page 48 of 70
Aurora Prudent Investor Portfolio
Performance History At
June 30, 2024
Year to
5 YearsQuarter1 Year 2 Years
Since
Performance by Fund
Date 3 Years Inception
Inception
Date4 Years
% Annualized Returns
-0.8ONE Canadian Equity Fund 6.9 -----17.2 09/27/2023
-0.5ONE Global Equity Fund 6.4 -----14.5 09/27/2023
0.9ONE Canadian Corporate Bond Fund 0.4 -----7.1 09/27/2023
1.1ONE Canadian Government Bond Fund 1.5 -----4.2 09/27/2023
0.2ONE Global Bond Fund 0.6 -----6.7 09/27/2023
Year to
5 YearsQuarter1 Year 2 Years
Since
Performance by Outcome
Date 3 Years Inception
Inception
Date4 Years
% Annualized Returns
-0.2JIB1AURCONT 4.2 -----11.7 09/27/2023
0.4JIB2AURTD35 1.4 -----6.9 09/27/2023
-0.1JIB3AURTD510 3.6 -----10.9 09/27/2023
-0.3JIB4AURTD10P 5.1 -----13.1 09/27/2023
3
Page 49 of 70
Manager Commentary - Canadian Equity
For the Quarter Ended June 30, 2024
QUARTERLY REVIEW
Canadian equity markets were slightly weaker in the quarter, with the ONE Canadian Equity Fund producing returns of
-0.8% in the quarter following two successive quarters of very strong returns. In the 12-month period ending June 30,
2024, the ONE Canadian Equity Fund generated returns of 14.6%. The performance of global equity markets was
generally mixed in the quarter, with weakness seen in continental European and Asian equity markets. US equity
markets were higher in the quarter, with the strength focused almost exclusively on the ‘Magnificent 7’ stocks, a group
of large capitalization tech stocks that have experienced explosive price performance over the last year.
While overall returns were weak in the Canadian equity markets, the materials sector was particularly strong. It was
the best-performing sector in the quarter, with returns of 7.4%. Prices for industrial metals like copper, aluminium, and
zinc moved higher, while precious metals showed strength too, with gold hitting an all-time high in the quarter. This
bolstered the performance of mining stocks, but the fund was able to only partially participate in the sector’s strength
in the quarter. The ONE fund is designed to have light exposure to commodity-related companies, which tend to have
more volatile performance than the rest of the Canadian equity market. The fund typically has half the exposure to this
sector versus the broader Canadian equity market.
The strength in the Canadian equity markets paused in the quarter as the Bank of Canada began cutting interest rates
in response to evidence of slowing economic growth and increasing signs that inflation pressures were easing. This
should help bolster economic growth and be generally supportive for Canadian equity markets.
4
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Manager Commentary - Global Equity
For the Quarter Ended June 30, 2024
QUARTERLY REVIEW
The global equity markets posted modest returns in the second quarter, but the performance was mixed across the
different regions. Positive returns were noted in the US, UK, and certain Asian equity markets, but negative returns
were observed in many other equity markets, including Canada and continental Europe. The ONE Global Equity Fund
returned -0.5% in the second quarter. Over the 12-month period ending June 30, 2024, the fund’s returns were
12.7%. These returns were weaker than the broader global equity markets, as the fund’s holdings and allocations
were not able to fully participate in some of the most favourable themes affecting global equity markets.
The key theme that continues to push equity markets higher is investor focus on what is known as the ‘Magnificent 7’
stocks. These seven stocks are technology-related firms that represent some of the largest listed firms in the US. With
growing interest in Artificial Intelligence (AI), these stocks have had spectacular performance over the last year, with
average returns of over 50%. Collectively, these 7 stocks represent over 30% of the market capitalization of the
S&P500. While these 7 stocks were collectively up about 17% in the quarter, the average returns for the rest of the
S&P500 was about -1%. The ONE Global Equity Fund’s underexposure to AI-related mega-cap stocks meant that the
fund did not fully participate in the gains experienced in this high-performing segment of the equity markets.
The fund manager’s approach continues to focus on stock selection, emphasizing firms with a competitive advantage,
sustainable business models, and tends to favour equities that are trading at a discount to their intrinsic value. As
Warren Buffet has noted, ‘In the short term, the market is a popularity contest, but over the long term, it is a weighing
machine’, suggesting that strong fundamentals are rewarded over the long term. This long-term approach echoes the
view of the fund’s investment manager.
5
Page 51 of 70
Manager Commentary - Fixed Income
For the Quarter Ended June 30, 2024
QUARTERLY REVIEW
The global fixed-income markets were mixed in the second quarter of 2024, with Canadian bonds tending to have
stronger performance as the Bank of Canada (BoC) cut interest rates in the quarter. The ONE Canadian Corporate
Bond Fund, the ONE Canadian Government Bond, and the ONE Global Bond Fund produced returns of 0.9%, 1.1%,
and 0.2%, respectively, in the quarter. All three funds generated positive returns over the twelve-month period ending
June 30, 2024, with returns of 4.5% for the ONE Canadian Corporate Bond Fund, 3.8% for the ONE Canadian
Government Bond Fund, and 4.3% for the ONE Global Bond Fund. These returns were reflective of the high interest
rates currently available in the fixed income markets.
After being on 'pause' for nearly a year, the BoC cut rates in early June, becoming the first G7 central bank to do so in
this cycle. The overnight rate was reduced by a quarter of a percent to 4.75%. The decision to cut rates was the result
of easing inflationary pressures, as headline inflation has been within the BoC's target range in every month this year.
The European Central Bank also cut rates in the quarter. Further interest cuts are expected in Europe and Canada in
the latter half of 2024, and the US Federal Reserve is also expected to start cutting rates too, with its first interest rate
cut expected as early as September. The prospects of further rate cuts provide the potential for returns to be
augmented by capital gains in the coming years.
Investment-grade credit spreads were relatively stable during the quarter, hovering a bit below their long-term
average, while high-yield bond spreads declined marginally. Overall, corporate bonds tended to perform better than
Treasury bonds during the quarter, which made a positive contribution to the returns of all three funds.
6
Page 52 of 70
QuantitySecurity Price % WeightUnit Cost Book Value
Aurora Prudent Investor Portfolio
As of June 30, 2024
Market Value
Consolidated Portfolio Holdings in CAD
CAN Equity Fund 1,277.92 1,441.58 14.31%4,688.529 6,758,903.245,991,581.38
GLB Equity Fund 1,161.51 1,306.69 32.63%11,794.279 15,411,551.3513,699,229.89
Corp Bond Fund 875.19 921.88 7.28%3,728.958 3,437,655.533,263,580.40
CAN Bond Fund 936.24 976.14 11.94%5,775.228 5,637,478.995,407,000.00
GLB Bond Fund 849.43 873.33 33.84%18,300.633 15,982,640.0515,545,258.76
100.00%47,228,229.16
7
Page 53 of 70
Aurora Prudent Investor Portfolio
Holdings by Account
At June 30, 2024
Account Name: Aurora - Contingency Outcome
Account Number: 570050682
Holdings Quantity Unit Cost Book Value Price Market Value Weight
Market Value
Gain (Loss)
Income
Received
For the Quarter Ending
June 30, 2024
Corp Bond Fund 920.90 875.19 805,973.09 921.88 848,962.98 5.7%7,908.16 0.00
CAN Equity Fund 1,932.00 1,277.92 2,468,955.50 1,441.58 2,785,146.81 18.8%(24,467.89)0.00
CAN Bond Fund 845.93 936.23 792,000.00 976.14 825,759.96 5.6%9,293.37 0.00
GLB Bond Fund 4,517.58 849.43 3,837,409.80 873.33 3,945,376.48 26.7%9,683.44 0.00
GLB Equity Fund 4,860.07 1,161.51 5,645,052.07 1,306.69 6,350,650.31 43.0%(33,523.85)0.00
% Annualized Returns
Return Net of Fees
Quarter
Year
to Date 1 Year 2 Years 3 Years 4 Years 5 Years
Since
Inception
Inception
Date
-0.2 4.2 -----11.7 09/27/2023
% Calendar Year Returns
Return Net of Fees
2023 2022 2021 2020 2019
4.2 -----
13,549,390.46 14,755,896.54 100.0%(31,106.77)0.00
Aurora Prudent Investor Portfolio
Performance History
At June 30, 2024
2024
8
Page 54 of 70
Aurora Prudent Investor Portfolio
Holdings by Account
At June 30, 2024
Account Name: Aurora - Target Date 3 to 5 Year Outcome
Account Number: 570050690
Holdings Quantity Unit Cost Book Value Price Market Value Weight
Market Value
Gain (Loss)
Income
Received
For the Quarter Ending
June 30, 2024
Corp Bond Fund 1,342.98 875.19 1,175,377.41 921.88 1,238,070.51 10.5%11,532.73 0.00
CAN Equity Fund 268.33 1,277.92 342,910.47 1,441.58 386,825.71 3.2%(3,398.31)0.00
CAN Bond Fund 3,583.48 936.24 3,355,000.00 976.14 3,498,009.86 29.7%39,367.77 0.00
GLB Bond Fund 6,595.99 849.43 5,602,878.85 873.33 5,760,529.37 48.9%14,138.50 0.00
GLB Equity Fund 675.01 1,161.51 784,035.00 1,306.69 882,033.68 7.5%(4,656.08)0.00
% Annualized Returns
Return Net of Fees
Quarter
Year
to Date 1 Year 2 Years 3 Years 4 Years 5 Years
Since
Inception
Inception
Date
0.4 1.4 -----6.9 09/27/2023
% Calendar Year Returns
Return Net of Fees
2023 2022 2021 2020 2019
1.4 -----
11,260,201.73 11,765,469.13 100.0%56,984.61 0.00
Aurora Prudent Investor Portfolio
Performance History
At June 30, 2024
2024
9
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Aurora Prudent Investor Portfolio
Holdings by Account
At June 30, 2024
Account Name: Aurora - Target Date 5 to 10 Year Outcome
Account Number: 570050708
Holdings Quantity Unit Cost Book Value Price Market Value Weight
Market Value
Gain (Loss)
Income
Received
For the Quarter Ending
June 30, 2024
Corp Bond Fund 1,308.10 875.19 1,144,848.13 921.88 1,205,912.54 7.2%11,233.18 0.00
CAN Equity Fund 1,829.55 1,277.92 2,338,026.05 1,441.58 2,637,449.44 15.8%(23,170.34)0.00
CAN Bond Fund 1,201.61 936.24 1,125,000.00 976.14 1,172,954.44 7.0%13,200.82 0.00
GLB Bond Fund 6,417.01 849.43 5,450,866.17 873.33 5,604,227.18 33.6%13,754.88 0.00
GLB Equity Fund 4,602.34 1,161.51 5,345,693.26 1,306.69 6,013,873.94 36.1%(31,746.07)0.00
% Annualized Returns
Return Net of Fees
Quarter
Year
to Date 1 Year 2 Years 3 Years 4 Years 5 Years
Since
Inception
Inception
Date
-0.1 3.6 -----10.9 09/27/2023
% Calendar Year Returns
Return Net of Fees
2023 2022 2021 2020 2019
3.6 -----
15,404,433.61 16,634,417.54 100.0%(16,727.53)0.00
Aurora Prudent Investor Portfolio
Performance History
At June 30, 2024
2024
10
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Aurora Prudent Investor Portfolio
Holdings by Account
At June 30, 2024
Account Name: Aurora - Target Date 10 Year Plus Outcome
Account Number: 570050716
Holdings Quantity Unit Cost Book Value Price Market Value Weight
Market Value
Gain (Loss)
Income
Received
For the Quarter Ending
June 30, 2024
Corp Bond Fund 156.97 875.19 137,381.77 921.88 144,709.50 3.5%1,347.98 0.00
CAN Equity Fund 658.63 1,277.92 841,689.36 1,441.58 949,481.28 23.3%(8,341.32)0.00
CAN Bond Fund 144.19 936.23 135,000.00 976.14 140,754.73 3.4%1,584.10 0.00
GLB Bond Fund 770.04 849.43 654,103.94 873.33 672,507.02 16.5%1,650.59 0.00
GLB Equity Fund 1,656.84 1,161.51 1,924,449.56 1,306.69 2,164,993.42 53.1%(11,428.57)0.00
% Annualized Returns
Return Net of Fees
Quarter
Year
to Date 1 Year 2 Years 3 Years 4 Years 5 Years
Since
Inception
Inception
Date
-0.3 5.1 -----13.1 09/27/2023
% Calendar Year Returns
Return Net of Fees
2023 2022 2021 2020 2019
5.1 -----
3,692,624.63 4,072,445.95 100.0%(15,187.22)0.00
Aurora Prudent Investor Portfolio
Performance History
At June 30, 2024
2024
11
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Aurora Prudent Investor Portfolio
COMPLIANCE CERTIFICATE
June 30, 2024
With respect to the quarter ended June 30, 2024 to the best of the knowledge and belief of ONE Investment, all assets of the
Participating Municipality under the management and control of ONE JIB pursuant to the ONE JIB Agreement have been invested and are held
In accordance with the terms of section 8.02 of the ONEJIB Agreement dated as of July 2, 2020 (the “ONE JIB Agreement”) ONE Investment
confirms as follows:
in accordance with the terms of the ONE JIB Agreement, and in a manner consistent with the IPS and the Investment Plan of the Participating
Municipality.
Keith Taylor, Chief Investment Officer, ONE Investment
On the behalf of the ONE Joint Investment Board
12
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APPENDIX
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Town of Aurora - In kind Securities
As at June 30, 2024
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ONE JIB ‐ Outcome Framework ‐ Target Allocations Allocation Outcome HISA Canadian Equity Fund Global Equity Fund Canadian Government Bond Fund Canadian Corporate Bond Fund Global Bond Fund Equity Fixed Income Cash Total Cash 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100% Stable Return 10.0% 9.0% 21.0% 9.0% 9.0% 42.0% 30.0% 60.0% 10.0% 100% Contingency 0.0% 18.0% 42.0% 6.0% 6.0% 28.0% 60.0% 40.0% 100% Asset Management 0.0% 27.0% 63.0% 1.5% 1.5% 7.0% 90.0% 10.0% 100% Target Date 3‐5 20.0% 3.0% 7.0% 10.5% 10.5% 49.0% 10.0% 70.0% 20.0% 100% Target Date 5‐10 0.0% 15.0% 35.0% 7.5% 7.5% 35.0% 50.0% 50.0% 100% Target Date 10+ 0.0% 22.5% 52.5% 3.75% 3.75% 17.5% 75.0% 25.0% 100% Page 61 of 70
ONE JIB ‐ Outcome Framework ‐ Defined Allocation Outcome Category Outcome Strategy Objective Risk Tolerance, Liquidity Investment Horizon Equity Fixed Income Cash Cash Cash Preservation of Capital Low risk; high liquidity < 3 years 100% Stable Return Stable Return Income generation: To generate returns to fund recurring needs Moderate risk with emphasis on growth and stable returns, regular liquidity > 5 years(Perpetual)30% 60% 10% Contingency Contingency Contributions for unexpected and infrequent events Higher risk, emphasis on longer‐term capital growth with some liquidity > 5 years(Perpetual)60% 40% Asset mgt reserves Contributions to generate returns to fund asset management reserves Higher risk, emphasis on longer‐term capital growth; low liquidity >10 years(Perpetual)90% 10% Target Date Target Date 3‐5 yrs. Preservation of capital Low risk; high liquidity 3 ‐ 5 years 10% 70% 20% Target Date 5‐10 yrs. Contributions toward capital projects, mitigate inflation impacts and meet target funding requirements Moderate risk, liquid 5 ‐ 10 years 50% 50% Target Date 10+ yrs. Contributions toward capital projects, mitigate inflation impacts and meet target funding requirements Higher risk, emphasis on long term inflation‐adjusted growth >10 years75% 25% Page 62 of 70
Glossary and Definitions for Quarterly Reports
Account
ONE Investment clients have one or more custodial accounts. All Prudent Investor Funds will be administered with ONE Investment’s custodian,
CIBC Mellon. Unlike Legal List accounts, MNRI invested in the ONE Investment Prudent Investor Funds will be under the control of the ONE Joint
Investment Board. In most cases, the Prudent Investor clients will have multiple accounts with the custodian, with the account structure based on
the investment outcomes assigned to each client. This will allow reporting to the municipal client based on the investment outcome framework.
Annual and Annualized Returns: please see Returns below.
Asset Allocation
Asset allocation is the single biggest driver of fund returns and should be set taking into account municipal risk tolerance. Also known as asset
mix, it is the combination of asset classes in a fund and is normally shown as the percentage weights in each. Example asset classes are money
market, Canadian bonds, global bonds, Canadian stocks and global stocks. Each of the ONE JIB Outcomes has an associated asset allocation that is
designed to be appropriate for the intended investment Outcome.
Asset Mix: See Asset allocation.
Benchmark
The Benchmark is the standard against which investors compare their portfolio returns to understand its performance. Benchmark can be set
either at the asset class level or for the overall portfolio. At the asset class level, benchmarks are usually chosen to represent the entire market;
active managers seek to outperform their benchmarks by at least the amount of fees they charge.
For example, a typical benchmark for Canadian stocks is the S&P/TSX Composite Index which is calculated by Standard and Poor’s (S&P) and for
Canadian money market, the typical benchmark is the FTSE 182-Day Treasury Bill Index from the Financial Times Stock Exchange Group (FTSE). For
a portfolio that aims to have risk halfway between these two asset classes, the total portfolio benchmark might be 50% S&P/TSX Composite Index
and 50% FTSE 182-Day Treasury Bill Index.
Benchmark returns are always time weighted. (See Returns below for more detail on time weighted returns)
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Blended Benchmark
A blended benchmark is a benchmark that is constructed from two or more underlying benchmarks. The weights of each underlying benchmark
used in a blended benchmark remain constant over time.
Canadian Corporate Bond Fund
The ONE Investment Canadian Corporate Bond Fund holds short and mid-term Canadian bonds managed by MFS. Based on the benchmark
duration at December 31, 2023, the permitted duration range is 3.67 to 6.67. MFS aims to outperform the benchmark, which is:
o 48% FTSE Canada Universe All Government Bond Index +
o 40% FTSE Canada Short-Term Corporate A Index +
o 10% FTSE Canada Universe Corporate AAA/AA Index +
o 2% FTSE Canada 91-Day Treasury Bill Index.
Canadian Equity Fund
The ONE Canadian Equity Fund holds Canadian stocks managed by Guardian Capital. Guardian aims for below-market risk, achieved with a ONE-
imposed constraint on the weight of Material and Energy sectors because of the expected above-market volatility of these sectors.
Canadian Government Bond Fund
This ONE Government Canadian Bond Fund holds short-term Canadian bonds managed by MFS. Based on the benchmark duration at
December 31, 2023, the permitted duration range for the Fund is 1.12 to 2.12. MFS aims to outperform the benchmark, which is:
o 60% FTSE Canada Short-Term Government Bond Index +
o 40% FTSE Canada 91-Day Treasury Bill Index.
Book Value
Book value is the Unit Cost of each holding multiplied by the number of units. It represents the amount originally paid to invest in the holding and
takes into account all contributions and withdrawals.
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CAD
This is a short form for “Canadian dollars”. Although the outcomes have exposure to foreign securities, all returns in the report reflect Canadian
dollar-based returns. Foreign holdings will be impacted by movements in foreign currencies which may impact investment returns. This impact
can be reduced by currency hedging strategies. The global equity exposure does not hedge currency exposure, but the global bond exposure may
use hedging. The degree to which global bond exposure is hedged back to the Canadian dollar may vary and will reflect the currency hedging
strategy of the external manager.
Consolidated Holdings
Consolidated holdings are the aggregate value of all investments with ONE Investment. Consolidated holdings detailed in this report only reflect
MNRI balances invested in ONE Investment’s Prudent Investor Funds and HISA balances under the control of the ONE JIB. In certain cases, clients
may hold ONE Investment Legal List portfolios or HISA which will not be reflected in consolidated holdings in this report. Additionally, ‘in-kind’
securities pledged to the ONE JIB will not be reflected in this report.
Discounts
Certain fee discounts apply for investors in the ONE Investment Prudent Investor offering. These discounts include a 4bps discount that applies to
AUM of Founding Members, and ‘tier discounts’ that apply for any investors with balances in excess of certain thresholds. These discounts would
not apply to HISA balances but would apply to balances in Legal List portfolios (if applicable). Discounts will be rebated to the municipalities on a
quarterly basis. These discounts are not taken into consideration in the performance details in this investment report.
Distribution: a cash payment of interest or dividends made by ONE Investment from a fund.
Duration
This statistic applies to bonds and is similar in concept to term to maturity. The difference is that duration also takes into account the size and
timing of interest payments. A bond with higher coupon payments will have a shorter duration than one with the same term to maturity and
lower coupon payments: the reason is that the higher-coupon bond receives more of its return earlier. The higher the duration of a bond, the
higher its sensitivity to interest rate movements.
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Fees
Fees include all expenses involved in managing the fund: external investment manager fees, custody costs, ONE Investment’s costs and
administrative costs.
Global Bond Fund
The ONE Global Bond Fund is an unconstrained global bond mandate managed by Manulife Asset Management. The unconstrained nature of the
mandate means that the fund will contain a mix of global government, corporate and securitized debt, including emerging markets and high-yield
securities. The mandate is not constrained by sector or currency. Manulife aims to outperform the benchmark, which is Bloomberg Barclays
Multiverse Index Unhedged.
Global Equity Fund
The ONE Global Equity Fund holds Global stocks managed by Mawer Investment Management. Mawer aims to outperform the benchmark, which
is MSCI All Country World Index (ACWI). This mandate invests in both emerging and developed markets. Manager will allocate capital to the best
global opportunities, which may include both large and small capitalization companies. This mandate is intended to be a broadly diversified
portfolio of wealth-creating companies bought at discounts to their intrinsic values that typically employ a long-term holding period.
High Interest Savings Account (HISA)
This bank account is provided by CIBC. Its very short-term nature precludes it from being considered an investment. Interest income from HISA
will be reflected only in the executive summary page as will a list of HISA transitions. As the HISA product is a demand deposit, its value of his
does not fluctuate daily. In this way it differs from the ONE Investment fund whose price change in response to changes in the value of underlying
investments. Returns for individual accounts holding HISA will not be presented in the report beyond what is disclosed in the executive summary.
HISA balances held in the Prudent Investor Offering reflect MNRI and will be under the control of the ONE JIB.
Holdings: the ONE Investment funds or HISA Balances held in client accounts.
Inception Date
The inception is the first date that an investment was made. For each account, this will be the first time funds were transferred in; for funds
offered by ONE Investment, it is the date the funds started. For ONE JIB Founders, the Inception date is July 2, 2020.
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Income
Income is a cash flow generated by an investment and normally includes interest on bonds and dividends on stocks. It is differentiated from
capital gains, which also contribute to returns, but which are not considered income.
Investment Manager
Investment managers are external firms hired by ONE Investment to create funds to our specifications. These are MFS Investment Management
Canada for Canadian fixed income, Manulife Asset Management for global fixed income, Guardian Capital Group Ltd for Canadian equity, and
Mawer Investment Management Ltd for global equity.
Market Value
The value of an investment at current market prices, calculated by multiplying the Price (defined below) by the number of units held.
ONE Joint Investment Board (ONE JIB)
The joint board established by founding municipalities as a municipal services board under section 202 of the Act as required under Part II of the
Regulation, and is the duly appointed Joint Investment Board for the municipality, as constituted from time to time and acting pursuant to the
Terms of Reference set out in the ONE JIB Agreement.
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Outcome
Outcome means, in the context of the Investment Plan, the same thing as ‘solution’. Investment Outcomes are a set of investment allocations
with varying risk/return characteristics. The Outcomes assigned to each municipal investor are intended to reflect the needs and circumstances of
the municipality. ONE JIB has five pre-defined basic outcomes:
Cash:
The Cash Outcome is designed for investments with a time horizon of less than 3 years. Preservation of capital and liquidity are the highest
priorities. Investments allocated to this outcome are expected to be transferred back to the care and control of the municipal treasurer
when the funds are reclassified as MRI.
Contingency:
The Contingency outcome is designed for investing contingency reserves. The funds in this outcome may be drawn upon to meet
unexpected needs and infrequent events. The investment horizon for this outcome is typically greater than 5 years, with an emphasis
placed on long-term growth and preservation of purchasing power is a key consideration.
Asset Management Reserves:
The Asset Management Reserve Outcome is specifically designed for very long investment horizons with a well-defined purpose.
Allocations to this Outcome are intended to generate returns to help fund asset management objectives. The long-term nature of asset
management reserves allows this Outcome to emphasize long-term growth.
Stable Return:
The Stable Return Outcome is designed to provide an annual income while preserving the value of the principal investment. The principal
amount is often invested in perpetuity with no intent to withdraw for the foreseeable future. This outcome is frequently used by
municipalities looking to replace the income stream of a utility that has been sold, with some or all proceeds of the sale acting as the
principal.
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Target Date:
The Target Date Outcomes are designed for contributions toward planned capital projects. There are three target date designs for different
time horizons: 3 to 5 years; 5 to 10 years; and greater than 10 years. For capital projects in the 3-to-5-year range, preservation of capital is
prioritized. For projects in the 5-to-10-year range, emphasis is placed on inflation mitigation and meeting target funding requirements. For
projects in the greater-than-10-year range, emphasis is placed on longer-term inflation adjusted growth.
Price
The price of ONE funds is the unit price at a point in time, also known as the net asset value, which is calculated daily by CIBC Mellon. This price
takes into account the last traded prices of all securities held by the manager, the bid/ask spread where no recent trade is available and a daily
accrual for all fees including investment management and administration.
Prudent Investor Standard
The standard requiring ONE JIB, when investing money under section 418.1 of the Act, to exercise the care, skill, diligence and judgement that a
prudent investor would exercise in making such an investment but does not restrict the securities in which a municipality can invest. The Prudent
Investor standard applies to the entire portfolio of Long-Term Funds under control of ONE JIB rather than to individual securities.
Quality
This statistic refers to the creditworthiness of bonds based on ratings provided by bond rating agencies such as S&P, DBRS, Fitch and Moody’s.
The highest quality bonds are rated AAA and range down from there to AA, A and BBB, all of which are investment grade ratings. Ratings below
BBB are considered high yield. The lower a credit rating, the higher a bond’s yield to maturity and commensurate risk of default on interest
payments or principal. The credit rating on an entire fund is calculated as a weighted average.
Realized and Unrealized Gains
Capital gains reflect the movement in the Price of investments as they rise over time relative to their average Unit Cost. Negative gains are losses,
meaning that the Price of the units in the account is lower than the average Price paid for them (Unit Cost). Because gains / losses are calculated
based on net asset values, they are diminished by the amount of fees. (Please see Fees, Price and Unit Cost.)
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•Unrealized gains exist “on paper” until the investment is sold in return for cash, at which point they become realized.
•Realized gains are generated by withdrawals from accounts during the time period in question based on the unit Price compared to the
Unit Cost.
Returns
Returns measure the percentage increment in value generated by investments over a period of time. Unless otherwise noted, time-weighted
total returns are reported here, which include all forms of income and capital gains. There are different aspects to return calculations explained
below.
•Calendar Year Return: reflects the total return generated by investments in the specified year any between January 1 to December 31.
•Annualized Returns: the total return generated by investments in each year for holding periods greater than one year. Annualized returns
are the geometric average over a multi-year period, meaning they represent the compound return. For periods of one year or less, the
actual return is shown without the effect of compounding.
•Returns in this report are calculated net of fees based on the Prices of the ONE Investment funds. These are calculated daily by CIBC
Mellon and take into account all fees and costs associated with managing the fund.
•Return details in this report do not account for fee discounts that may apply for some Prudent Investor clients.
•Time-weighted returns: returns in this report are time-weighted in order for them to be compared to the benchmarks. Time-weighted
returns are calculated in a way that excludes the effect of the timing of contributions and withdrawals (cash flows) from the fund. (To
capture the effect of cash flows and measure their impact on returns, investors would instead need use dollar-weighted return
calculations.)
Unit Cost
Unit Cost is the weighted average Price paid for all the Fund units held in the account and reflects the impact of units bought and sold over time.
Unrealized Gains: Please see Realized and Unrealized Gains
Value Added: The return generated by an investment manager above (or below, if negative) the benchmark.
Year to Date: The time period beginning January 1 and ending at the most recent quarter end.
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