Agenda - Special General Committee - 20091026SPECIAL GENERAL
COMMITTEE
BUDGET
11
PUBLIC CONSULTATION
NO.09-24
MONDAY, OCTOBER 26, 2009
7:00 P.M.
COUNCIL CHAMBERS
AURORA TOWN HALL
PUBLIC RELEASE
October 23, 2009
AuiZORA
TOWN OF AURORA
SPECIAL GENERAL COMMITTEE MEETING
AGENDA BUDGET & PUBLIC CONSULTATION
NO. 09-24
Monday, October 26, 2009
7:00 p.m.
Council Chambers
Mayor Morris in the Chair
I DECLARATIONS OF PECUNIARY INTEREST
11 APPROVAL OF AGENDA
RECOMMENDED:
THAT the agenda as circulated by the Corporate Services Department be
approved.
III DELEGATIONS
(a) Mr. Neil Garbe, Chief Administrative Officer and
Mr. Dan Elliott, Director of Corporate & Financial Services/Treasurer
Re: 2010 Budget Overview
PUBLIC OPEN SESSION - Opportunity for members of the public to
provide input regarding the 2010 budget
IV CONSIDERATION OF ITEM REQUIRING SEPARATE DISCUSSION
V ADJOURNMENT
Special General Committee Agenda
Monday, October 26, 2009
Page 2 of 2
AGENDA ITEM
1. FS09-043 - Draft 2010 Business Plan with Operating and Capital pg. 1
Budgets - Overview Report
RECOMMENDED:
a) THAT this report and accompanying presentation be received as an
overview of the 2010 Business Plan and Operating and Capital
Budgets; and
b) THAT the detailed departmental Draft Operating and Capital Budgets
be reviewed at Special Council meetings scheduled during October
and November 2009; and
c) THAT, following the budget deliberations, staff prepare an updated
consolidated budget report and presentation reflecting all changes
approved to this Draft Budget report.
SPECIAL GENERAL COMMITTEE AGENDA
Budget & Public Consulation - October 26, 2009 ITEM #1
i TOWN OF AURORA
AURORA SPECIAL GENERAL COMMITTEE REPORT No. FS09-043
SUBJECT: Draft 2010 Business Plan with Operating and Capital Budgets
- Overview Report
FROM: Dan Elliott, Director of Finance & Treasurer
DATE: October 261h, 2009
RECOMMENDATIONS
a) That this report and accompanying presentation be received as an overview of
the 2010 Business Plan and Operating and Capital Budgets; and
b) That the detailed departmental Draft Operating and Capital Budgets be reviewed
at Special Council meetings scheduled during October and November 2009;
and
c) That following the budget deliberations, staff prepare an updated consolidated
budget report and presentation reflecting all changes approved to this Draft
Budget report.
PURPOSE OF THE REPORT
To present the 2010 Draft Business Plan and accompanying Operating and Capital
Budgets.
BACKGROUND
On July 21, 2009 staff were given direction by Council to prepare a draft operating and
capital budget. The budgets were to be prepared according to a number of principles and
guidelines, which included the following key elements:
The Base budget required to maintain existing service levels while minimizing the
financial impacts of inflation, growth of volume of activities, and escalating costs of
salaries and benefits was to be prepared in detail, but presented at a higher, more
summarized level.
Previously approved enhancements or expansions of services which create a tax
pressure for 2010 are to be isolated in detail.
New or enhanced levels of service proposed or required by legislation will be shown
separately in the draft budget proposed by staff.
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SPECIAL GENERAL COMMITTEE AGENDA
Budget & Public Consulation - October 26, 2009
October 26t1, 2009 - 2 - Report No. FS09-043
• Capital and Operating budgets will manage the Town's active and passive capital
infrastructure and investments in a prudent manner, with the goal to efficiently
maintain their levels of serviceability for both the long and the short term.
• Corporate reliance on non -recurring revenue sources, prioryear surpluses, or other
unsustainable means to balance the budget or reduce the tax rate impact otherwise
required should be reduced, phased -out or eliminated where possible.
All revenues to be reviewed for rates as well as forecasts.
Library Budget will be included as approved by the Library Board, yet subject to
review by Council in terms of the total funding request. The Library CEO and Board
members will be asked to provide Council with presentation in support of their
budget funding request, and provide an opportunity for discussion with Council.
Budget Development Process
Planning for the 2010 budget began in June of this year. Following a Council report in July,
senior staff were provided with a preparation schedule. Included in that schedule was a
request for all departments to review their revenue rates and prepare amendments to same
if supportable. Given the recent economic downturn, no substantive changes were made
to the fee schedule, except for development applications which were approved by Council
prior to the summer recess.
Each Department was required to prepare a detailed account by account operating budget.
They were to attribute budget increases/decreases as to growth, enhancements or
efficiencies, or one time expenses.
The Executive Leadership Team (ELT) worked hard to develop overarching business
objectives for 2010. Each department is expected to contribute by way of undertaking or
championing initiatives which will move either the department or the corporation towards
the collective goals. Such initiatives were to be considered within the context of finalizing
the departmental budgets and work plans.
Once submitted, budgets were reviewed in detail by Finance staff with each Department
Head. Following that review, each department's budgets were further reviewed in detail by
the CAO and the Treasurer with the Department Head.
For Capital budget items, departments were to prepare capital budget detail reports in
standard budget form for evaluation. The ELT met and applied the Town's capital budget
scoring tool to each project by consensus. Following that, the CAO met with the
department he as necessary to finalize a draft capital budget for Council, considering
the score assigned by ELT, funding sources, capacity to deliver considering outstanding
approved projects from prior years, and Council and community priorities.
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SPECIAL GENERAL COMMITTEE AGENDA
Budget & Public Consulation - October 26, 2009
October 26t1, 2009
Corporate Business Plan
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Report No. FS09-043
In an effort to effectively develop a cohesive and well founded plan, a consultant was
retained to assist the ELT in a process of introspective corporate critical evaluation of
strengths, weaknesses, opportunities and threats. In addition to ELT's perspectives,
confidential focus groups and surveys were conducted with a broad spectrum of staff
representing all levels and included staff from remote facilities.
Following much discussion and evaluation, in addition to better understanding the culture
within the organization, the following four overarching business objectives were developed
for2010. Some underlying initiatives have been noted under each. In the detailed budget
material for each department, significant elements of the departmental work plans which
support these objectives are outlined.
ELT's Corporate Objectives
2010
Improved Operational Efficiency
i) Enhanced accountability reporting
ii) Internal operational systems improvement
iii) introduce National Quality Institute (NQI) progressive excellence initiative
on a pilot basis
2. Positioning For Our Future
i) Fulsome review of by-laws to establish an integrated enforcement
approach
ii) Review of core financial, budget, human resource information and
procurement systems
iii) infrastructure
a. Space accommodation plan
b. Longer range infrastructure investment planning
iv) Focus on our people and related support, systems and processes
v) improve internal and external ease of doing business with us
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SPECIAL GENERAL COMMITTEE AGENDA
Budget & Public Consulation - October 26, 2009
October 26t', 2009 - 4 - Report No. FS09-043
3. Customer Service & Satisfaction
i} Understanding Client/Customer Needs/Opinions
a. internal Customers
b. Business Customers
a Resident Customers
ii) Proactive Communications Plan
iii) Accessibility for Ontarians with Disabilities Act (2005) compliance
initiatives
iv) Initiate study and planning for implementation of a single point customer
service facility and associated business and technology systems.
4. Other
Plan and execute statutory municipal election
Draft Operating Budget
As noted above, the draft operating budget is broken into three sections: Base Budget,
Previous Council Commitments, and New Items.
The Base Budget reflects existing 2009 service levels and staff levels as approved
in 2009. This section also includes all costs and revenues related to growth,
including the additional tax revenue arising from assessment base growth. Abash
to capital reserve allocation" from tax levy has been used for 2010 budget and is
included in the base. This will deflect discussions of capital projects to be distinct
and separate from the operating budget and total tax levy.
Previous Council Commitments are items affecting the 2010 budget which have
previously been approved by Council for implementation in 2010, or are
annualizations of such items from 2009 budget. These will reflect changes in policy,
practice, or level of service.
New Items reflect any changes to service levels, all new staff requests, or any other
new initiatives.
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SPECIAL GENERAL COMMITTEE AGENDA
Budget & Public Consulation - October 26, 2009
October 2611, 2009 - 5 - Report No. FS09-043
The 2010 Draft Operating Budget — Summary by Department is outlined in Appendix A.
Fully summarized, the 2010 Draft Operating Budget is as follows:
2009 2010
2010 Tax
Approved Draft
Variance
Rate
Equivalent
1) Base Budget:
- Expenditures
$40,885,600 $41,195,300
$309,700
1.17 %
- Non -Taxation
(14,972,400) (14,869,200)
103,100
0.38%
Revenues
Taxation Revenues
(25,913,300) (25,913,300)
-
(no growth)
Base Budget Deficit
$ - $412,800
$412,800
1.56%
2) Council Approved
689,800
689,800
2.60%
Service Level
Changes
3) New Items
85B,200
858,200
3.23%
Recommended
Net Deficit before
$1,960,800
$1,960,800
7.38%
Growth
Growth Tax from
$646,700
$646,700
2.43%
New Assessment
Net Deficit (Draft)
$1,314,100 $1,314,100 4.95%
Including the new growth assessment revenues, a 1 % increase in the tax rate represents
$265,600 mitigation. of the above noted Net Deficit. If no adjustments to revenues or
expenditures, a 4.95% tax rate increase is required to balance the 2010 Budget.
KEY ISSUES AND PRESSURES IN THE 2010 BUDGET
i) Difficult economic times result in taxpayers and Council expecting strong value
for dollar, with a focus on true needs, rather than wants and "nice -to -have"
items. Further, assessment base growth revenue is expected to be only 2.5%for
the 2010 taxation year, down from 3.0% in 2009 budget.
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SPECIAL GENERAL COMMITTEE AGENDA
Budget & Public Consulatiom - October 26, 2009
October 261h, 2009 - 6 - Report No. FS09-043
ii) Implementation of Council's approved organizational review and restructuring,
including the support for additional managerial positions to right size the Town's
capacity to properly and effectively manage activities while serving a community
which experienced rapid growth. A number of internal services areas have been
under resourced in past budgets, with previous priorities favouring operational
areas. The recommendations of the Organizational Review address a number
of these existing shortages and capacity limitations.
iii) Escalating benefits and salaries costs: A detailed analysis of costs for existing
staffing approved in 2009 is attached in Attachment D. A 1.24% tax rate
pressure arises from existing staffing and benefits costs. This base budget item
includes a provision for cost of living adjustments of only 1% to the entire
compensation grid of the Town, except Fire Services administered by
Newmarket.
iv) The 2009 budget funded the AODA Accessibility position from the prior year's
surplus rather than directly from the tax levy. This was appropriate at the time
due to the uncertainty of the workload or duration of the implementation of the
AODA legislation at the Town. With the legislation moving forward, and the
need to comply with current and continuing new regulations to be issued, a
stable funding source is now required.
v) Nearly 23% of the tax levy goes directly to support the fire and emergency
services provided by Central York Fire Services. For 2010, the cost of Aurora's
share of this service increased by 2.9%, however, in real dollars, this represents
$187,000, or 0.70% direct tax rate pressure.
vi) Continuing infrastructure rehabilitation and replacement needs of the
corporation's existing and well serving capital investments: Older roads are
requiring rehabilitation, while vehicles, equipment and facilities needed to meet
or provide the Town's services have reached the end of their economic lives and
require replacement. Further, for a number of valid reasons, past
recommendations for rehabilitation projects have been deferred by staff or
Council in an effort to contain tax pressures. As the Town continues to grow, an
increasing number of older assets come due for replacement or rehabilitation
each year. Further, the costs of these projects escalate at an inflation rate higher
than the general Canadian Consumer Price Index. The Town's capital
rehabilitation program relies extensively on petrochemical products (in roofing
fuel and asphalt), structural steel and technology, all of which have experienced
higher than average inflationary pressures. The ongoing aging of infrastructure,
together with the past deferrals of projects continues to mount pressures on the
budget, and on staff to deliver effective and satisfactory performance from our
infrastructure inventory.
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SPECIAL GENERAL COMMITTEE AGENDA
Budget & Public Consulation - October 26, 2009
October 2611, 2009 - 7 - Report No. FS09-043
vii) Reserve funds established for infrastructure sustainability purposes have been
relied upon continually for many years, without sustainable contributions to keep
them replenished. They are now near depletion. The current state of these
reserves places enormous pressure on the 2010 and 2011 budgets in particular,
as there appears to be limited available sources of funding for infrastructure
sustainability projects during 2011 and beyond. The levy supported reserves are
forecasted at -this time to have a remaining balance at the end of 2010 of just
$2.7 million after funding infrastructure projects in 2010 of $3.0 million. As such,
the 2011 budget will face extreme tax rate pressures for infrastructure.
viii)Investment Income forecasts forthe Operating Fund are higherthan past years,
despite the deeper than expected and continuing depressed interest rates and
the impact this has had on the over -night bank interest rate. Reserves are
allocated interest income at this low over -night rate. However, as the portfolio is
invested in many longer term products, the interest income from the portfolio has
not been as affected by the market. Due to the low rate of allocation to
reserves, interest income retained within the Operating Budget has actually
increased. Future budgets will be affected by the current low rate due to lower
yields purchased during this period.
ix) The introduction of the Harmonized Sales Tax in Ontario will impact the
municipality to some degree. At this time, only logical transitional regulations
have been introduced in an effort to close tax avoidance loopholes. Various
municipal associations are participating in consultation and lobby efforts to bring
clarity and fair treatment for municipalities with the new regime. Due to the
significant unknowns of the impact that the HST introduction will have on the
Town, a provision has been made in the New Items section of the budget.
During the course of the budget deliberations, staff will continue to monitor the
regulatory environment, and work with other guidance to fine-tune the budget
estimate prior to final budget approval.
The 2010 Draft Operating Budget Summary by Department is in Attachment "A".
Attachment "B", Tax Rate Increase Outline provides general information on the Base
Budget increases, Previous Council Commitments, and New Items amounts.
Reviewing year -over -year changes in each category helps us understand the source of tax
rate increase pressures, and will assist Council in its budget deliberations in the coming
weeks. Attachment "C", Draft 2010 Operating Budget Impacts, summarizes the increases
in the 2010 Draft Budget from the 2009 Approved Budget.
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SPECIAL GENERAL COMMITTEE AGENDA
Budget & Public Consulation - October 26, 2009
October 261h, 2009 - 8 - Report No. FS09-043
KEY CHANGES AND INCLUSIONS IN THE 2010 BUDGET
1. Base Budget - 1,55%tax rate pressure
The base budget is impacted by staffing costs, economic factors, inflation, growth of
volume of services and activity, and new or increased fees. and other revenues.
The Base Budget is not off -set by any additional tax levy which arises from the
growth of the community's assessment base from development.
Staffing Costs will increase by $331,100 due to cost of living adjustment provisions,
step rates for newer staff, and pension and benefit rate increases. No additional full
time staff have been included in the Base Budget costs. The staffing cost increases
result in a 1.25% tax rate pressure. Attachment "D", Staffing Costs Analysis
outlines additional detail, and complement control references.
New Revenues in the base budget include an increase in development application
fees resulting in significant rate increases approved during 2009, as well as -an
anticipated restoration of market activity levels.
The economic downturn actually results in an increase in the investment income
retained by the Operating Budget. Investment yields of the Town's portfolio remain
strong due to the long term holdings, yet the over -night interest rates have fallen
substantially. All portfolio income is received into the Operating Fund, and reserves
are allocated proportionate shares, but only at the lower over -night rate. As a result,
the Operating Budget investment income is expected to increase by $440,000.
Inflationary and Growth pressures are experienced by every department. While the
cost of fire and emergency services provided by Central York Fire Service increased
2.95%, the $187,000 increase to our largest direct cost represents a 0.7% tax rate
pressure.
The Library Board has approved a draft budgetwhich ,requires municipal support of
$2,761,000 for 2010, an increase of $172,000, representing a 6.65% increase in
cost, or a 0.65% tax rate pressure.
The cost of planning and running the 2010 municipal election is estimated at
$217,500, and is neutral to the operating budget due to funding from the Election
Reserve. The Election Reserve receives contributions from the Operating Fund
over past years, in an effort to smooth the financial impact of election costs to the
budgets.
Other significant change pressures are outlined in Attachment °C". Net of new
revenues, the Base Budget represents a net tax rate pressure of 1.55%, without
consideration of the growth revenue.
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SPECIAL GENERAL COMMITTEE AGENDA
Budget & Public Consulation - October 26, 2009
October 2611, 2009 - 9 - Report No. FS09-043
2. Previous Council Commitments - 2.6% tax rate pressure
The Previous Council Commitments element of the budget represents new costs or
pressures for 2010, or the annualization of new items or services introduced in the
prior year.
In the 2009 Approved Budget, the Town funded part year operations of the new
Church Street School Cultural Centre. An additional $118,000 is required to meet
the full year 2010 contractual commitment for the centre's operations.
The Province introduced new accessibility legislation by way of the Accessibility for
Ontarian's with Disabilities Act, 2005 which imposes a range of requirements for
compliance on corporations, businesses, and public organizations, including
municipalities. During the 2009 budget, a contract position was funded from the
prior year's operating surplus, which was appropriate as the extent of impact was
not fully known at that time. The Act now has several regulations published, which
will impose significant continuing costs and requirements upon the Town. To
stabilize the funding for the contract position, and the associated program costs, the
town needs to now fund this from a more sustainable source. To transition this
impact, the draft budget proposes a levy impact of $65,000, and a reliance on a
reserve fund of $35,000.
During the 2009 budget deliberations, an operating contingency for Council's
direction was removed from the budget, as was a $45,000 contribution to the
election reserve. To reinstate both of these fundamental elements of a municipal
budget, the Treasurer is recommending an additional $145,000 to the budget.
During the course of 2009, Council authorized the GAO to undertake a review of the
organizational structure of, the corporation, and to make recommendations for
changes in upper departmental structures. During the course of this work, the
Director of Corporate Services and Town Clerk retired, and a vacancy occurred.
The proposal to be considered by Council in detail during the budget process
includes the addition of four new managerial positions, and some compensation
changes to a number of managerial and director positions to remain competitive in
the market place, and curb the loss of talent due to compensation. To fund the full
impact of the proposed Organizational Changes, a provision of $411,000 is
required. However, to off -set a portion of this, a $50,000 reliance on the surplus
created by the vacant clerk position is being recommended, for a net budget impact
for 2010 of $361,000, or 1.36% tax pressure. It is expected that improved
management of operations, strategic planning, and client services will result, along
with efficiencies to be discovered.
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SPECIAL GENERAL COMMITTEE AGENDA
Budget & Public Consulation - October 26, 2009
October 2611, 2009 -10 - Report No. FS09-043
3. New Items Proposed — 3.23% tax rate pressure
The New Items section of the budget represents new initiatives or new items to be
considered for 2010.
New staffing needs: The CAO has considered a number of new staffing requests
from all departments. Five new full time complement additions or conversions to full
time are recommended, with 11 other positions requested, but not included in the
Draft Budget presented to Council for deliberations. Attachment "E" New Positions
Listing outlines all requested positions and the fiscal impacts of each. Some
positions recommended for inclusion require furniture, technology or other
equipment. All included, net of some Building Fee funding, the cost of these
recommended positions is $222,000.
HST: As noted earlier, a preliminary estimate of the impacts of the implementation
of the Harmonized Sale Tax regime in Ontario has been included in this section. At
this time, staff estimate the impact to be approximately $250,000 in the first year of
operation. Staff will focus on fine-tuning this estimate based on recently distributed
template worksheets. As soon as better estimates are developed, staff will advise
at the next available budget deliberation meeting verbally.
Contributions to Capital: For 2010, rather than specifying which capital projects are
funded by levy, and which are funded by other reserves, staff recommend that the
Operating Fund simply allocate one amount to the Municipal Capital Reserve. This
approach is used by many municipalities, and it helps to stabilize the contribution to
infrastructure made by the levy, as well as separate the capital budget discussions
from the operating budget discussions. In 2009, the operating budget funded
capital projects in the amount of $2,694,000. For 2010, staff recommend an
increase in this contribution of $156,000, and to position the full $2.85 million
amount as a 'cash -to -capital' allocation.
Additional funding has been requested to increase the capacity of the Parks Division
to maintain shrub beds more regularly throughout the Town. An amount of
$120,000 has been requested for this purpose.
Additional consulting funding is also requested to assist with focussing on our
employee systems and supports. The current system for job evaluation and
compensation placement requires review and updating with the assistance of
outside consultants. In addition, staff recommend a provision to introduce an
Employee Assistance Program. With the many stresses which face our community
today, our staff require additional confidential support systems, frequently provided
through employee assistance programs or an "EAP". In addition to this, a provision
for an additional $15,000 has been requested to bolster the corporate training
programs. The additional training will be planned according to approved budget,
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SPECIAL GENERAL COMMITTEE AGENDA
Budget & Public Consulation - October 26, 2009
October 261h, 2009 -11 - Report No. FS09-043
and deployed across the corporation, or targeted to certain groups. Forexample, a
safe and defensive driver training program was provided to all staff who frequently
drive a town owned vehicle. Other training is planned for workplace harassment
and violence training, which will soon be regulated by the Province.
The CAO recommends the municipality join the membership of the National Quality
Institute, and begin to derive ideas and support tools for consideration in improving
our client services, and in planning our future potential client service centre.
A detailed listing of new items recommended is included on Attachment "C" and will
be reviewed in detail with each respective department, during budget deliberations.
4. Growth Tax Revenue — 2.43% tax rate pressure relief
During the course of 2009, new construction and other development activities have
resulted in new assessment being added to the community. This new growth
represents an estimated 2.43% growth in tax revenues to the Town for 2010. This
growth amount does not stem from the phase -in of reassessment adjustments for
individual properties. A total of $646,700 of new tax revenue is estimated to be
available to fund the Operating Fund.
The recent implementation of the assessment phase -in program requires the town
to recalculate the starting position tax rate for the current year, so as to raise the
same revenue as raised in the prior year from the same identical properties,
excluding all development growth. This becomes the new base rate for 2010 prior
to any budgetary tax rate increases.
Overall, the Draft 2010 Operating Budget presents a proposed budget which requires an
additional $1,314,100 to be raised from the tax levy. This represents a 4.95% tax rate
increase to fund new and existing services and initiatives.
2010 Capital Budget
For 2010, the capital budget has been segregated into two parts for more focussed
examination due to the conceptual differences in funding sources:
Repair and Replacement Infrastructure Capital
Growth and Other Infrastructure Capital and Major Planning Studies
The Draft Repair and Replacement Capital program for 2010 represents a gross cost of
$11.4 million; funded with $2.3 million from grants, with the balance coming from capital
reserves or the levy contribution to Municipal Capital. The program includes restoration
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SPECIAL GENERAL COMMITTEE AGENDA
Budget & Public Consulation - October 26, 2009
October 261h, 2009 -12 - Report No. FS09-043
work to roads, water lines, sewer lines, storm water management systems, pavement and
hardscaping, carpeting at the library, and some replacement equipment. No road vehicles
are included. Attachment "F" outlines the recommended Repair and Replacement Capital
program by project. The list includes the four consolidated projects approved for
Recreation Infrastructure Canada funding by the recent grant program, but which were
referred to budget discussions by Council. The listing also includes projects put forward for
consideration by staff, but deferred in staff reviews of the budget.
The Draft Growth and Other Infrastructure Capital program represents a gross cost of $4.9
million, funded mainly with development charges of $3.6 million. The balance of the
program is proposed to be financed $207,000 from outside sources including grants, with
the remaining $1,037,150 to be funded from various other town reserves, including the levy
contribution to Municipal Capital. This capital program includes the debt repayment for the
ARC complex, as well as a funding contribution for sidewalk and illumination along
Bloomington Road in various areas from Bathurst to Bayview to be contracted by the
Region of York and completed by their contractors who are assigned the work of the
restoration of this regional road. Other significant projects include the re-examination and
upgrading of the Cityview business system for tracking development and building activities,
funding for the Official Plan review and the 2C Secondary Plan study, and work on the
trails master plan. In an effort to improve the efficiency of Town Hall and the Operations
Yard, and our ability to meet the client service needs, funding for completing and
implementing the space accommodation plans for both locations have been included.
Attachment "G" outlines the recommended Growth and Other Infrastructure Capital and
Major Planning Studies program for 20%
At the budget meeting on October 261", 2009, a Capital Budget Detail Binder will be
distributed to members of Council for review prior to the first scheduled budget deliberation
meeting to be held Saturday November 7tn
Water and Waste Water Budget
Due to time constraints anticipated in preparation for early adoption of the Operating
Budget, the Water and Wastewater budget has not been completed by staff. Operating
costs and cost allocations have been included in the operating budget, which are
transferred into the water budget. Volumetrically determined budget amounts for this
budget, such as wholesale costs, and retail revenues have not yet been finalized by staff.
Once final wholesale costs have been approved by the Region of York, staff will finalize the
budget for presentation to Council in the first quarter of 2010.
Reserve and Reserve Funds
The Town's Reserve and Reserve Funds schedule has been sorted into groups to improve
the clarity of the information. It has been included as Attachment "H" for reference and
discussion. While the Town has a total reserve balance forecasted to be $61.77 million at
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SPECIAL GENERAL COMMITTEE AGENDA
Budget & Public Consulation - October 26, 2009
October 261h, 2009 - 13 - Report No. FS09-043
the end of 2010, careful examination will reveal some areas of particular concern.
Development Charges Reserve Funds are statutory funds, to be used only for eligible
capital projects and studies as permitted by legislation and as broadly set out in the Town's
approved Development Charges Background Study. The Special Purpose reserves are
primarily stabilization reserves for various purposes, to provide the town's finances the
ability to absorb unusual and material financial costs which may arise, such as major WSIB
claims, or to stabilize the budgets through building activity downturns.
Of particular concern are the minimal amounts of reserves set aside for purposes of
infrastructure sustainability (rehabilitation and replacements), both those funded by tax
levy, and those funds provided through the water user rates. The staff presentation to
Council covering this report will include specific information with respect to the rate of
reliance on these particular reserves, and the need for frugality in approving new projects,
while needing to emphasize growing these reserves rapidly through increasing levy
contributions and or transfers from other reserves available.
FINANCIAL IMPLICATIONS
The 2010 Draft Operating Budget proposes a 4.95% tax rate increase on the Town portion
only of the tax billing, which translates into an extra 20 cents per day, or about $72.25 per
year for a home assessed at $400,000 (for the 2009 taxation year).
The Region and School tax rates for 2010 have yet to be finalized.
CONCLUSIONS
This report has summarized the proposed 2010 Operating and Capital Budgets, as well as
highlights from the administrative work plan. Six subsequent budget review and
deliberation meetings have been scheduled and advertised (see Attachment "I"). All
members of the public interested in providing inputto these proceedings are encouraged to
attend one of the meetings, or to provide their comments by email through the Town's
website at www.e-Aurora.ca. All constructive input related to the 2010 Operating and
Capital Budgets is welcomed.
ATTACHMENTS
Attachment "A" — 2010 Draft Operating Budget — Summary by Department
Attachment "B" — Tax Rate Increase Outline
Attachment "C" — Draft 2010 Operating Budget Impacts
Attachment "D" — Staffing Costs Analysis
Attachment "E" — New Positions Listing
Attachment "F" — Repair and Replacement Capital
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SPECIAL GENERAL COMMITTEE AGENDA
Budget & Public Consulation - October 26, 2009
October 2611, 2009
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Report No. FS09-043
Attachment "G" - Growth and Other Infrastructure Capital
Attachment "H" - Reserve and Reserve Fund Schedule - Forecast 2010
Attachment "I" - Budget Deliberation Meeting Schedule 2010
Prepared by: Dan Elliott, Director of Finance & Treasurer -Ext. #4772
Dan Elliott, .A. Neil Garbe
Director of Finance/Treasurer Chief Administrative Officer
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SPECIAL GENERAL COMMITTEE AGENDA
Budg(p,tn8lAP4blic Consulation - October 26, 2009 ATTACHMENT A
2010 Draft Operating Budget
Summary by Department
2009
201e
Council
included
2010
Operating Fund
Approvetl
6xee
Approved Srvc
Now
Cmg
Dollar
%
Bucket
Bailout
Level Chances
terns
nutlet _
Claim
Chance
Gross Expenses
(fay.)unfay.
Council
Chief Administrative Office
$642.000
966,000
$680,500
934,600
$0
7,500
$0
$680,500
$38,500
6.00%
Customer & Legislative Services
937,200
828,000
317,500
30,00)
0
972,100
6,100
0.63%
Legal Services
647,100
689,700
0
0
1,145,500
208,300
22.23 %
Corporate& Financial Services.
2,864,900
3,128,400
0
241,2D0
689,700
3,369,600
42,600
514,700
6.58%
18.03%
Corporate Expanses
5,309,100
4,199,200
579,600
415,000
5,194,000
(115,100)
-2.17%
Fire & Emergency Operations
6,335,400
6,522,300
0
0
6,522.300
186,900
2.95%
Planning& Development Services
1,343,800
1,485,700
0
0
1,485,700
141.900
10.56%
Building & By-law Services
2.156,200
2.425,200
0
75,600
2,500,900
344,700
15.99%
Infrastructure & Environmental Services
10,589,300
10,797,300
0
33,40D
10,830,700
241,400
2,28%
Parks & Recreation
Library
6,365,100
6,612,610D
15,000
138,600
6,766,400
381,300
5,97%
2.719,500
2.891.600
0
0
2,891,600
172.100
-6.33%
Gross Expenditures
40,865,600
41,195 300
919,800
933.800
43.049,000
2,183,400
5 29%
Gross Revenues
Council
Chief Office
(13,200
o
(19,100 )
0
0
(19,100)
(6,900)
-gq,7p%
Customer
Customer& Legislative Services
& Legislative
(206,800)
0
(34,000)
0
(207.500)
0
0
0
(241,500)
0
(34.700)
0.00%
Legal Services
Corporate & Financial Services
(51,000)
(226,500)
(16,000)
(147.400)
0
0
0
(16,000)
35,000
-16.78%
68,63%
Corporals Expenses
(5,667,100)
(5,347,000)
(7,500)
0
0
(147,400)
(6,354,500)
79,100
312,600
34,92%
5.52%
Fire & Emergency Cperations
0
0
0
0
0
Planning & Development Services
(423,000)
(694,500)
0
0
(694,600)
0
(271.500)
0.00%
-64.18%
Building & By-law Services
(1,891,200
(1,110,200)
0
(75,600)
(2,213,2D0)
(362.000)
-17.03%
InfmsWcture&Environmental Servicea
(1,172,200)
(1,110,200)
0
0
(/,110,200)
G2,000
5.29%
Parks & Recreation
(5,191,000).
(5,233,10D)
(15,000 )
0
(5(130.400)
(57,100)
,1.00%
Libra
Library
(180,400 )
(13D,400 )
0
D
(130,p00)
0
0.00%
(14,972,400)
(1A,869,200)
(230,000)
(76,600)
(15,774,900)
(202,500)
-1.35%
Taxation(Incl, from new assessment)
(25913300)
(26560000)
0
0
(26560000)
_(616700)
-250%
Gross Revenues
(40885700)
(41429200)
(230000)
_75.600
(41739900)
849.200)
-2.08%
Council
Chief Administrative Office
628.800
966,000
661.400
934,600
0
0
661,400
32,600
5.18%
Customer & Legislative Services
730,400
794.000
7,500
110.000
30.000
972,100
6,100
0.63%
Legal Services
596.100
673,700
0
0
904,000
173,600
23.77%
Corporate & Financial Services
2,628.400
2,981,000
0
0
241,200
673,700
3,222.200
7],600
593,800
13.02%
Corporate Expenses S. Revenues
(357,900)
(1,147,800)
572,300
415,000
- (160,500)
197.400
22.59%
Eire& Emergency Operations
6,335.400
6,522,30D
0
0
6,522,300
186,900
-55.16%
2,95%
Planning& Development Services
920,000
791.200
0
0
791,200
(129,600)
Building & By-law Services
265,000
287,700
0
0
267,700
22,700
-14.07%
8.57%
Infastruclure& Environmental Services
9,417,100
9,687,100
0
33,400
9,720,600
303,400
Parks & Recreation
Library
1,194,100
1,379,700
0
138,600
1,518.300
324,200
3.22%
27A5%
2,589.10
2,7612�0
o
0
2,761,200
172.100
6.65%
25,913,300
26,326.100
689,800
858,200
27,874.100
1196D,600
7.57%
Taxation
(25,913,300)
_(26560OOD)
0
0
(26560000)
(64670o)
2.50%
(Surplus) Deficit before Rate Change
$-
$(233,900)
$689.800
$868,200
$1,314,100
$1,314100
(l acdl'"'05 ;
y ;!t�/ liaj5 Rate Change $�266,60a
- 15 -
SPECIAL GENERAL COMMITTEE AGENDA
Budget & Public Consulation - October 26, 2009
-16-
Yi
.
...�. � v
SPECIAL GENERAL COMMITTEE AGENDA
Budget & Public Consulation - October 26, 2009
-18-
SPECIAL GENERAL COMMITTEE AGENDA
Budget & Public Consulation - October 26, 2009
Town of Aurora ATTACHMENT C
2010 Draft Operating Budget Impacts
Corporate Summary of Expenditure Pressures and Revenue Changes
Base Budget
Change
day. unfay.
1) Full -Time and Equivalent Staffing Costs:
Step rates, COLAand Benefits cost increases
331,100
2) NewRevenues, Fees and Charges
Development Application Fee Revenue
(225,000)
Increased Investment Income retained by operating fund
(440.000)
3) Inflation and Growth Accommodation
Central York Fire
187,000
Library Operational Funding
172,100
Vehicle Operations and Repairs
90,000
Utilities
48,000
Fitness and Community Program expenses
40,000
Mandatory Training
33,000
Advocacy
25,000
Sidewalk summer maintenance
23.000
Consulting- all departments net
22,000
Small Equipment not in capital
20,000
Human Resources Administration
20,000
Streetlighting maintenance
20,000
Staff Conferences, Seminars & Training and Municipal Business
3,400
4) Costs to conduct 2010 Municipal Election
0
Expenses Including temp. Elections Coordinator
217,500
Funded from Elections Reserve
(217.500)
4) All other expenses net of other revenue changes -
43,200
2010 Draft Operating Budget Deficit (prior to Service Loval Change)
412,800 1.66 %
Previous Council Commitments
Organizational Restructuring Investment
361,000
Annualization of Church St. School Grant
118,800
Council Contingency - reinstate last years deletion
100,DD0
AODA Compliance and Advisor - net of reserve funding
65,000
Election Reserve Contribution - reinstate last years deletion
45,000
Online Payment Additional Revenue -offset by expense
0
Total Previous Council Commitments 609,800 2.60%
New Items Proposed for Inclusion
New staff requests salaries and benefits (Attachment E)
193,400
Office Equipment -Furniture & Equip.for new staff and Scanlon Court
39,450
Contribution from Building Fees Res. to offset Building Dept, new staff request
(10,850)
Net
HST Contingency (to be further refined before approval)
222,000
250,000
Increased Levy Contributions to Capital
150,000
Shrub Bed Maintenance
120,e00
Consulting Fees -(Job Evaluation, Union Negotiations
80,000
Audit fees - PSAB and Specials
30,000
Contracts-EAP Program, Pavement Markings
20,000
Quality Institute Membership
16,400
Corporate Training Initiatives
15,000
Software Maintenance
4,800
Reduction to Purchase of Trees-tooffset newstall request
(20,000)
Reduction to Arboricultural Contracts -to offset new staff request
130,000)
Total New Items
Total Net Budget Increase before growth tax revenues
Growth tax revenue from new assessment (excluding reassessment)
Net Deficit or Tax Funding increase
-19-
868,200 3.23%
$1,960,800 7.38%
(646,700) -Z,13%
11,3 14100 4.95%
SPECIAL GENERAL COMMITTEE AGENDA
Budget & Public Consulation - October 26, 2009
-20-
SPECIAL GENERAL COMMITTEE AGENDA
Budget & Public Consulation - October 26, 2009
ATTACHMENT D
Town of Aurora Attachment D
2010
Staffing Costs Analysis (No Additions)
-
Staffing Costs prior year approved: FT/PTIOT (excl. Benefits)
$15,814,011
Base Full -Time Staffing cost prior to increases incl. benefits
$19.395,825
Add:
1)
COLA
118,605
2)
Step rate incl for existing staff
17,746
3)
OMERS Pension
35,741
Benefits rate increase (excl OMERS)
159,042
Staffing Costs (no complement adds)
$19,726 959
% increase
1.71%
e�fi�@lks�°/�of�NiariesOverall), BvlUget�t'r�
1 t ��
1
I
6 oT dbii Tllakr�A, �d c��i �.a.rit, r¢r11� ljh;aryl{�iui+WIL
lAl idr
,�riy�ki ,n �r{ r�i,Mi it Yl
1)
COLA
$118,605
-
COLA! ADMIN
1%
CUPS
1%
Step Rate annualizations
17,746
-
N Amount is included in COLA & step rate inc for existing staff
2)
Approved Full Time Complement Control
4 of FT approved staff prior to additions
177
Staff Adds -
4
# of FT approved staff atyear end
181
3) OMERS Pension
Total Budget
Change from Prior Year
$855,164
$35,741
Pre Yearly Maximum Pensionable Earnings 6.30%
Post Yearly Maximum Pensionable Earnings 9.60%
Yearly Maximum Pensional Earnings $ 46,300
SPECIAL GENERAL COMMITTEE AGENDA
Budget & Public Consulation - October 26, 2009
-22-
SPECIAL GENERAL COMMITTEE AGENDA
Budget & Public Consulation - October 26, 2009
Town of Aurora
2010 Draft Operating Budget Impacts
New Positions in 2010 Budget
ATTACHMENT E
Total Sala ries/Behefits
Position Requests Included in Draft 1 of 2010 Budget
Elections
Election Coordinator-1 year contract
contract
$40,022
Funded by Election Reserve
(4fi 022)
Human Resources
Upgrade PIT HRIS Clerk to FIT _
convert to FT
$26,859
IT
Applications Analyst Frr
new FT
$81,509
Bulding.& By-law Services
Administrative Ass(. - FIT
new FT
$64,749
Infrastructure & Environmental Services
Upgrade P/T Waste Asst. to FIT -
convert to FT
$18,405
Parks & Recreation
Parks Crew Leader/Forestry Technician
new FT
$66,618
Total 2010 Complement Change Requests
5 Additions to FT
$258,140
Increased Building Fees to offset Admin Asst
-
$64,749
Net 2010 Complement Change Requests
$193,391
Position Requests Not Included in Draft 1 of 2010 Budaet
Legal Services
Administrative Asst. - FIT _
new FT
$64,749
Corporate/Legislative Services
Administrative Asst. - F/T
new FT
$64,749
IT
Network Ot7eralions Technician FIT
new FT
Upgrade PIT Student to FIT Admin Asst.
Convert ET
$$42,770
Upgrade Help Des to Client Services Analyst
Regratlefr/redeploy
$11.44411,444
Buldlnq & By-law Services
By -Law Enforcement Officer - Frf
new FT
$81,509
Infrastructure & Environmental Services
Secretary/Clerk - F/T
- new FT
$64,749
Carpenter
new FT -
$67,393
Parks & Recreation
Landscape Architect
new FT
$97684
Facility Bookings Clerk
new FT
$64,749
Youth Programmer
new FT
_ $64,749
Total 2010 Complement Change Requests (Not Included) $701,060
-23-
SPECIAL GENERAL COMMITTEE AGENDA
Budget & Public Consulation - October 26, 2009
-24-
SPECIAL GENERAL COMMITTEE AGENDA ATTACHMENT F
Budget & Public Consulation - October 26, 2009
SPECIAL GENERAL COMMITTEE AGENDA
Budget & Public Consulation - October 26, 2009
-26-
SPECIAL GENERAL COMMITTEE AGENDA ATTACHMENT G
Budget & Public Consulation - October 26, 2009
SPECIAL GENERAL COMMITTEE AGENDA
Budget & Public Consulation - October 26, 2009
-28-
SPECIAL GENERAL COMMITTEE AGENDA
Budget & Public Consulation - OctobgSF2 Tb009
E&TE
2010
RESERVE AND RESERVE FUND STATEMENT
ATTACHMENT H
--__
zoos
Meing
201a
Sudgeletl
201a-d
Butlgeletl
2010 ....._
2010
------._ ._
Balance
_ Revenue
Ex endilums,
Interest
Closing
Balance
Speclal Purpose Reserve Funds
---------
-- --_
06114l60epanment Fee, -Stabllizali_o_n__
AccesslbilltyCommitlee
$2,436,434
------
$0
-- $528,687
--
$15;393
--
$1,925,740
Arts on'Culture- far Grants _---000
1,296
$61,422
$0
$558
----
Cash In Lieu- ---
Parklands
Cash In Lleu -Park)
- -
§7i_tn,asl
_- --.-.---
g1,alo.000
$tOp06
--$644,4au
_ $400
gei.457
§51,822
$71,964,097
__---
_.
Heron Annully for IES&Parks -
$2,766
--$�
-- $0
$20
$2,78q-
_
Proceeds otSale olMuniClpalLantl _
,
$0
NO
$
$319
$95,390
_--gi,52]iGB)
Winter Maintenance Stabilizallon
$0
--- $0
------
�
$37,543)
(g1564 ,712j
__
Election Reserve - Slablllzalion ____
Legal Raserva-Smbilizn,,,
$198,706
----
--- $0
§772, 500
-'--- $0
$797
$O
$21,003
- --"'"'-"'-
Zoning BY -law Review
$671,534
$38,36f3
--------- $0
$0..
__.. $A 332
__ $615,BBG
__
WSIB Reserve Stabilization
$512,225
$0
$0
$20,OOD
___ $201
-
_
$18,590
Uition
Wbrkln9 Fund (oHsel. Libra
_adk
__
_
$60,000
$3,476
$4u5,040
Debt Delerral - Library Facility
$2,74
" §0
___
$2,352-
--
Parks Master plan --
$0
_ $$5,256
$2,417,165
9 Donation as Downtown
.5.20
$26,350
--
§$26,545
A1111 o Stabilizallon
_
-"-"-
$760,191
__
$g.
"-
$187
$26,545
-$7G5,575
FrowancceTmidDeblReserve-
FireServiceTrainingReserve
"------------
$o_..
§5,385
InsuranceClaims R¢serve-Slabtlizatlon
$277,414
$0
.-.--.-
._ §717
§107_973
eoi
Engineering Fe es-Slebil'zatlon
$0
$P
$279,379_
Lantlscape Fee Reserve-Stabllizalion
-
„$3,595,t]3_-
$336,4t0
$0
$230905$24,648
--24,648
-_$3,388_9j6
Total Speclal Purpose Reserve Funds
$19,279788
$1 642,000
$65,092
$1 817,595
$2152
$61,863
$273,470
$19,095.86q
Development Charges Reserve Funds
--'-"--
-----
-
General Govemmenl --
Fire SeNlces -'--
-------
L4207G6)
$7,420,745
$p2,552
W
$238,985
$449,106
$16G,500
_ $0
$302,201
($12,327
$70,910
__
_�gge339j
_ _$1,670,640
--
_
Parks Dev.BFac. _--
_
IntlmfRecrealion
Library --'--
_�$3,eeA,558I
($1 t39)
_$1,727,701
- _
$7,880,737
i$W,619
($3,835,273
)
_
Public Works&Fleet
612
§1,672,990
$2934,367
$312,632
-- $110,000
_�43,2741
$12,143
---
__($1,264,048)
_$1,827
Roads&Related-
Water System
Storm Sewer _ -'-_-'
-
$2 67,94A
- § eozi
$197 ]74
$866880
_$g80,p95
$712500
$1186,090
$138,600
$2i 068
$17- 0'
239
($14 239
-765
$3034,647
__$228512G4
96
960)
- -
$2 259,A48
$451,279
$0
_ _
_ (§2q4
Total Development Charges
_.._.
$q,S19,024
$4,898,94e
$3,IIT6,028
$17 606
$88,604)
§2 728 .834
$6,753336
mfr a!trucfura Sustalnablbty Reserve Funds- Water Rate Fund ad
Water/Sewer __ $24,924
-
--
-
---
-
StormSewers §i 190,396
$1,600000
'-
$1,000000
g2521806
__- $3OB8)
($II999701
Ballymore Pumping Sln - -
$82,750
$1436572
$68B6
$76D71D
Bayvlew Pumping station _ ._.._... -r
Brenlvlew Pumpin96tation'- _----'--
$2,500
600
$0
$0 -
$595
$126
_..._-
$D
$19763
$2.508
$2,500
$o
§27
_ -
Total Suslainablllfy Funds Water Funded
----_-_._ _...-__ _ $1,317715
$2,60],500
$3956378
$5034
Infrastructure Sustalnablbty Reserve fe Fun
Funtls-Tax Radetl
--- '�-
SN5,063)
---
Want mIYre street Ii9ht-In --_ _
$0
----
--
Church5lSchool $1 279
$0
$0
g29D
I
$$72_8
War Memorial --
Beavortop Reserve _ $89203
Munla ap 1 Read Infrastructure Investment Funtl
��- $738,991
$0
i
0
_--$
$9
- $72
2
$G$0
_
- $10258
§098$0
IetleralGasTax � -
$10B )q2
-
$1_,4GS OOOT
__$138991
$7 465068
-'
_
Municipal GaPTlal r $2390267
-$3370
$1332
-
- _ $1894D6
Li4rar�eneml Capllal §390
- $85000
$880300
- §15668
,__$178g199'
$96,46
EgmpmenUFleet ,871
B IewNyellinylon Laneway $23.441
Public Works Inbaslmclure
_ $0
g4 A00
_ §70 D00
_ $6 500
$D
-_- $2 694 I
$45A
$464 1
$372 961
- - $311325
828
'- Management $537,146
$0
--
$396000
-
- 022
_ Total S_stainability Funds $q.171,886
$1,557,770
$3,060,868�
$2,402
$23,7361
$143,539
$2,692,522
Council Discretionary Reserve Funds
LI
Council Dlscrelionagr Reserve
$j277779I lydro Sale Investment Fund$32,409,031-
-
$D
---
$9,051
$1,286p29
--
Total Council Discretionary Funds $33,687,609
$0
g0
5oL
$G48-
333,058027
Total Reserve funds - $63 215,418
$657,240
$34,344,867
- -- --- ---
$61,771,505
SPECIAL GENERAL COMMITTEE AGENDA
Budget & Public Consulation - October 26, 2009
-30-
SPECIAL GENERAL COMMITTEE AGENDA
Budget & Public Consulation - October 26, 2009 ATTACHMENT I
2010 Budget Presentation & Discussion Timetable
Date
Meeting Purpose
Departments Involved
Monday
Overview Presentation & Report with
October 26, 2009
Public consultation
All
-
7:00pm
Saturday
November 7, 2009
Capital Budget
p g
All, excluding Building & Library
9:00am
Monday
November 16, 2009
Ca ital Budget
pAll,
excluding Building & Library
7:00pm
Saturday
-
CAO, Corporate Expenses & Revenues,
November 21, 2009
Operating Budget
Infrastructure & Environmental Services, Parks
& Recreation, Corporate & Financial Services
9:00am
Monday
Library Board, Fire Services, Building & By-law
November 23, 2009
Operating Budget
Services, Planning & Development Services,
Legal Services, & Customer & Legislated
Services
7:00pm
Monday
November 30, 2009
Finalize Budget - Operating & Capital
All
7:00pm
Monday
Finalize Budget - Operating & Capital
December 7, 2009
(if necessary) -
All
7:00pm
All Budget meetings are open to the public. Any Public input will be received at the beginning of each meeting, except
the October26th meeting, at which input will be received following the staff presentation.
-31 -