Agenda - Special General Committee - 20040417TOMTIT OF AVIOU
SPECIAL GENEUL
COMMITTEE AGENDA
DRAFT#2 2004 OPERATING AND CAPITAL
BUDGET
N0.04-12
SATORDAY, WRIL It 2004
9:00 A.M.
NOLLAND NOON
AURORA TOWN NALL
PUBLIC RELEASE
13/04/04
TOWN OF AURORA
GENERAL COMMITTEE MEETING
AGENDA
NO. 04-12
Saturday, April 17, 2004
Mayor Jones in the Chair.
I DECLARATIONS OF PECUNIARY INTEREST
II APPROVAL OF AGENDA
RECOMMENDED:
THAT the content of the Agenda as previously distributed by staff be
approved as presented.
III ITEM REQUIRING SEPARATE DISCUSSION
1. TR04-009 (pg.1)
2004 Operating and Capital Fund Budgets — Revised Draft #2
IV ADJOURNMENT
Special General Committee — Budget Meeting No. 04-12 Page 2 of 2
Saturday, April 17, 2004
AGENDA ITEMS
1. TR04-009 (pg.1)
2004 Operating and Capital Fund Budgets — Revised Draft #2
RECOMMENDED:
THAT the Committee receive Report TR04-009 and the information
contained in Appendix "G" being those items for which Council on March
23, 2004 requested staff to provide an explanation were the 2004 Budget
allocations are more that 10% greater than the 2003 Actual expenditures;
THAT the Committee provide direction to staff with respect to those items
contained in Appendix "H" being those items for which Council on March
23, 2004 requested staff to provide additional details on the proposed
cuts;
THAT the Committee provide direction to staff with respect to those items
contained in Appendix "H" being those items for which Council on March
23, 2004 directed staff to reduce costs by 5% and indicate the effect this
would have on service levels;
THAT all recommendations adopted as a result of input received at the
April 17, 2004 Special General Committee meeting on the Town's 2004
Operating and Capital Fund Budgets be referred to staff for incorporation
into the final draft of the 2004 Operating and Capital Fund Budgets;
THAT the 2004 Final Operating and Capital Fund Budgets be referred to
the Council Meeting on April 27, 2004 for final review and approval.
SPECIAL GENERAL COMMITTEE REPORT No.TR04-009
SUBJECT: 2004 Operating and Capital Fund Budgets –Revised Draft #2
FROM: Paul Dillman, Acting Treasurer/Tax Collector
DATE: April 17, 2004
RECOMMENDATIONS
THAT the Committee receive Report TR04-009 and the information contained in
Appendix “G” being those items for which Council on March 23, 2004 requested staff
to provide an explanation were the 2004 Budget allocations are more that 10%
greater than the 2003 Actual expenditures;
THAT the Committee provide direction to staff with respect to those items contained
in Appendix “H” being those items for which Council on March 23, 2004 requested
staff to provide additional details on the proposed cuts;
THAT the Committee provide direction to staff with respect to those items contained
in Appendix “H” being those items for which Council on March 23, 2004 directed
staff to reduce costs by 5% and indicate the effect this would have on service levels;
THAT all recommendations adopted as a result of input received at the April 17, 2004
Special General Committee meeting on the Town’s 2004 Operating and Capital Fund
Budgets be referred to staff for incorporation into the final draft of the 2004
Operating and Capital Fund Budgets;
THAT the 2004 Final Operating and Capital Fund Budgets be referred to the Council
Meeting on April 27, 2004 for final review and approval.
BACKGROUND
At the General Committee Meeting of October 21, 2003 staff presented the 1 st Draft of the
2004 Operating and Capital Funds Budgets for information.
The Town’s 1st draft identified total net operating expenditures of $17,349,638 for 2004
translating into $1.36 million or a 8.4% increase over the approved net tax levy
requirements for 2003. The fiscal pressures driving increases to the Town’s 2004 net tax
levy requirements included significant cost increases for Fire Protection Services,
enhancements to municipal road and facility rehabilitation programs, increased
contributions to reserves for municipal infrastructure replacement and rehabilitation and
service level improvements for Aurora Public Library operations.
TTOWN OF AURORA
April 17, 2004 - 2 - Report No. TR04-009
As a result of the January 17, 2004 review by Council, adjustments were made that
increased the net operating expenditures by $300,000 translating into a $1.66 million or
10.4% increase over the approved net tax levy requirements for 2003.
As a result of subsequent reviews by staff, adjustments were made that reduced the net
operating expenditures by $393,328 translating into a $1.26 million or 8.1% increase over
the approved net tax levy requirements for 2003.
As a result of the March 4, 2004 review of the 2004 Capital Budget by Council, adjustments
were made to the 2004 Operating Budget that reduced the net operating expenditures by
$219,000 translating into a $1.04 million or 6.5% increase over the approved net tax levy
requirements for 2003.
As a result of the March 23, 2004 Public Information Session and review of the 2004
Operating and Capital Budget by Council, adjustments were made to the 2004 Operating
Budget that reduced the net operating expenditures by $61,458 translating into a $.982
million or 6.1% increase over the approved net tax levy requirements for 2003. Council
directed that staff provide details on the balance of the additional items listed for Counc il
consideration. These additional items are listed in Appendix “H” with detailed explanations
for the potential adjustments for Councils’ consideration.
It should be noted that the majority of the potential amendments to 2004 budget estimates
are not permanent in nature and in some cases, merely deferred expenditures to be
addressed in future years. This is confirmed by the corresponding increases to outlook
projections for the fiscal periods of 2005 and 2006.
The above reference primary amendments to the 1st Draft of the 2004 Operating and
Capital Fund Budgets represent a total reduction of 2.3% off the originally proposed 8.5%
increase in net tax levy requirements to arrive at the 2nd Draft estimated increase of 6.2%.
COMMENTS
However, the impact of partially financing the New Recreation Complex with Long Term
Debt and deferring certain Capital Projects financed via the Operating Budget places an
undue burden on future years. Also, there is an impact from the projected increases in
operating costs of the New Recreation Complex and New Senior Centre as well as
demands for Fire and Library Services. The 2005 Outlook projects an increase in the net
levy requirements of $2.82 million or a 16.1% increase over the projected net levy
requirements for 2004. The 2006 Outlook projects an increase in the net levy requirements
of $1.3 million or a 6.1% increase over the projected net levy requirements for 2005.
On March 23, 2004 Council provided the ideal forum and opportunity for taxpayers to
April 17, 2004 - 3 - Report No. TR04-009
express their views on the Town’s 2004 business plan as well as assisting to establish
tentative priorities through fiscal 2006. It should be noted that only three taxpayers
attended to express their views. No changes have been made to Draft #2 of the 2004
Operating and Capital Budget as a result of this public input.
Since the 2004 Capital Budget was reviewed on March 4, 2004, the Public Works
Department has identified two more 2004 Capital Projects. They are as follows:
▪ Kennedy Street Storm Water Management Pond Re trofit
▪ St John’s Sideroad Upgraded Landscape Treatment at McKenzie Marsh
These two projects have no impact on the 2004 Operating Budget and have been included
in Revised Draft #2 of the 2004 Capital Budget. Capital Budget Sheets Appendix “D” have
been attached as well as a revised Capital Budget Sheet for the New Recreation Complex
to reflect the revised funding as at April 13, 2004 for this project.
OPTIONS
This is the third opportunity for all members of Council to provide input into the draft budget
document. As part of the March 23rd presentation Council directed that staff provide details
on the balance of the additional items listed for Council consideration. These additional
items are listed in Appendix “H” with detailed explanations for the recommended cuts for
Councils’ consideration. Staff requires clear direction from Council for those items listed in
Appendix “H”
At its meeting on March 30, 2004 Council approved a motion directing staff to provide
details justifying any increases in the 2004 budget of more than 10% over last year’s
actuals. Staff has provided this information in Appendix “G” attached to this report.
Also, at its meeting on March 30, 2004 Council approved a motion directing staff to reduce
costs by 5% and indicate the effect this would have on service levels. Staff has provided
this information in Appendix “H” attached to this report and require clear direction from
Council on the disposition of these items.
Staff anticipate being in a position to finalize the budget mate rial for presentation,
consideration and approval at the April 27, 2004 Council Meeting.
As with prior year budget deliberations, Council may wish to consider the Capital budget
process separate from that of the Operating Budget if further review is requi red in
contemplation of alternatives proposed for 2004.
FINANCIAL IMPLICATIONS
The impact of the revised second Draft of the 2004 Operating and Capital Fund Budget net
April 17, 2004 - 4 - Report No. TR04-009
shortfall of $985,456 (after assessment growth) on a home assessed at $250,000 is
approximately $50.00 annually, or approximately $1.00 per week. Taxpayers will receive,
for this additional cost substantially enhanced fire protection, a commitment to redevelop
the library square area and a commitment to improve the level of care given to Town owned
facilities.
CONCLUSIONS
The revised second draft of the 2004 Operating and Capital Fund Budget as amended by
Council on March 23, 2004 recommends an increase of 6.2% or $985,456 in the 2004 net
levy requirements over 2003. It also lists potential adjustments for consideration and
direction of Council. These potential adjustments total $688,586 and if adopted will have a
negative impact on current service levels while reducing the recommended increase of
6.2% to 1.9% or $15.00 on a home assessed at $250,000.
The 2004 budgets (Operating and Capital Fund) set clear criteria for proposed business
plans in that operating costs were presented to enhance the Town maintained existing
service level standards while Capital projects were presented on the basis of available
funding for the year of undertaking the project.
These financial principles have and will continue to provide the tax payers of the Town of
Aurora with an ability to address both anticipated and unanticipated capital asset related
costs while also ensuring that related operating costs associated with bringing on new
capital facilities are known, predictable and incorporated into future net tax levy
requirements.
LINK TO STRATEGIC PLAN
Goal “A” – A Well Managed and Fiscally Responsible Municipality
As referred to in 2003, the corporation’s departmental master plans contain significant
capital projects to construct municipal infrastructure that will support existing and future
population levels for the municipality. It is imperative to continue with the commitment to
review and identify those program areas that will require funding from reserve or tax rate
supported sources for any ineligible growth-related or long-term rehabilitation costs. The
availability of updated life cycle information for all municipal capital assets will enhance the
Town’s ability to evaluate the adequacy of current and projected reserve / reserve fund
balances, while also establishing the basis for recommending annual reserve contribution
levels from operating sources for future years. A report entitled “New Recreation Centre
Fiscal Impact Analysis was presented to Council at its meeting on April 13, 2004 on this
issue.
ATTACHMENTS
April 17, 2004 - 5 - Report No. TR04-009 • Appendix “A” - Revised Draft #2 – 2004 Operating Budget & Outlook Summary
(2005-06)
• Appendix “B” - Summary of Budget Changes plus options for additional savings
(January 17, 2004 to March 23, 2004)
• Appendix “C” – 2004 Gross Expenditures versus Gross Revenues by Department
• Appendix “D” – Revised Draft #2 - 2004 Capital Budget Summary (Including Detail
Sheets for two new Projects added)
• Appendix “E” – Revised Draft #2 – 2003 –2008 Reserve Projections
• Appendix “F” – Revised Draft #2 – 2003 – 2008 Reserve Fund Projections
• Appendix “G” – 2004 Budget Increases Greater than 10% of 2003 Actual
• Appendix “H” – March 23, 2004 Pending Budget Cuts with explanations and 5%
Reductions and Impact on Service Levels
• Appendix “I” – Full-Time Staffing Outlook (2004-2006)
PRE-SUBMISSION REVIEW
Chief Administrative Officer – Tuesday, April 13, 2004
Prepared by: Paul Dillman, Acting Treasurer/Tax Collector, Ext. 4112
_________________________
Paul Dillman
Acting Treasurer/Tax Collector