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Agenda (Appointed) - Finance Advisory Committee - 20250218Town of Aurora Finance Advisory Committee Meeting Agenda Date:Tuesday, February 18, 2025 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 January 21, 2025 1 That the Finance Advisory Committee Meeting Minutes of January 21, 2025, be received for information. 1. 6.Delegations 7.Matters for Consideration 7.1 Memorandum from Financial Management Advisor; Re: Line by Line Budget Review of Corporate Services 6 That the memorandum regarding Line by Line Budget Review of Corporate Services be received; and 1. That the Finance Advisory Committee comments regarding Line by Line Budget Review of Corporate Services be received and referred to staff for consideration and further action as appropriate. 2. 7.2 Memorandum from Financial Management Advisor; Re: ONE JIB Update – Transition to Outsourced Chief Investment Officer (OCIO) 15 That the memorandum regarding ONE JIB Update - Transition to Outsourced Chief Investment Officer (OCIO) be received; and 1. That the Finance Advisory Committee comments regarding ONE JIB Update - Transition to Outsourced Chief Investment Officer (OCIO) 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, January 21, 2025 5:45 p.m. Holland Room, Aurora Town Hall Committee Members: Mayor Tom Mrakas (Chair) Councillor Harold Kim (Vice Chair) Councillor Michael Thompson Other Attendees: Sara Tienkamp, Director, Operational Services Luigi Colangelo, Manager, Public Works Matthew Volpintesta, Manager, Parks and Fleet Rachel Wainwright-van Kessel, Director, Finance Jason Gaertner, Manager, Financial Management Elizabeth Adams-Quattrociocchi, Manager, Financial Reporting and Revenue Mohamedali Kamalia, Financial Management Advisor* Linda Bottos, Council/Committee Coordinator *Attended electronically _____________________________________________________________________ 1. Call to Order The Council/Committee Coordinator called the meeting to order at 5:47 p.m. Mayor Mrakas assumed the Chair at 5:48 p.m. 1.1 Appointment of Committee Chair Moved by Councillor Thompson Seconded by Councillor Kim 1. That Mayor Tom Mrakas be appointed as Chair of the Finance Advisory Committee for a two-year term (2025-2026) . Carried Page 1 of 16 Finance Advisory Committee Meeting Minutes January 21, 2025 2 1.2 Appointment of Committee Vice Chair Moved by Councillor Thompson Seconded by Mayor Mrakas 1. That Councillor Harold Kim be appointed as Vice Chair of the Finance Advisory Committee for a two-year term (2025-2026) . Carried 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 Kim Seconded by Councillor Thompson That the agenda as circulated by Legislative Services be approved. Carried 4. Declarations of Pecuniary Interest and General Nature Thereof There were no declarations of pecuniary interest under the Municipal Conflict of Interest Act, R.S.O. 1990, c. M.50. 5. Receipt of the Minutes 5.1 Finance Advisory Committee Meeting Minutes of October 8, 2024 Moved by Councillor Kim Seconded by Councillor Thompson Page 2 of 16 Finance Advisory Committee Meeting Minutes January 21, 2025 3 1. That the Finance Advisory Committee Meeting Minutes of October 8, 2024, be received for information. Carried 6. Delegations None. 7. Matters for Consideration 7.1 Memorandum from Manager, Financial Reporting and Revenue; Re: 2024 Audit Planning Report Maria Khoushnood, Lead Audit Engagement Partner, KPMG, gave a summary of the Town’s 2024 Audit Planning Report, highlighting key items of the audit plan including the new accounting and auditing standards; materiality calculation; involvement of actuarial specialist for employee future benefits; risk assessment; standard inquiries for those charged with governance; and the appendices. Andrew Grossi, Audit Senior Manager, and Muhammad Saqib, Audit Senior Manager, KPMG, were also present. In response to Committee inquiries, Maria Khoushnood provided clarification on matters including the impact of the new PS 3400 standard with respect to changes in revenue recognition and the new PSG 8 guideline which provides guidance for purchased intangibles; the future impact of ESG (environmental, social and governance) reporting on audited financial statements; and the requirement to include management overrides and fraud risk from revenue recognition as considerations of the audit plan, noting these items were not reported as findings. Moved by Councillor Thompson Seconded by Councillor Kim 1. That the memorandum regarding 2024 Audit Planning Report be received; and 2. That the Finance Advisory Committee comments regarding 2024 Audit Planning Report be received and referred to staff for consideration and further action as appropriate. Carried Page 3 of 16 Finance Advisory Committee Meeting Minutes January 21, 2025 4 7.2 Memorandum from Senior Advisor, Financial Management; Re: Line by Line Budget Review of Operational Services Staff presented an overview of the comparison between the 2023 actuals and the October 2024 forecast for the operating budget of Operational Services, highlighting some of the external factors that have affected Operations and those that may have an impact on the 2025 budget. Staff responded to questions regarding the process for handling unexpected asset expenditures greater than budgeted and their impact on the Asset Management Plan; multi-year averaging to budget for items such as salt, fuel, and salaries due to external factors including weather and cost fluctuations; and the increased cost of insurance and impact of events across the country. Moved by Councillor Kim Seconded by Councillor Thompson 1. That the memorandum regarding Line-by-Line Budget Review of Operational Services be received; and 2. That the Finance Advisory Committee comments regarding Line-by- Line Budget Review of Operational Services be received and referred to staff for consideration and further action as appropriate. Carried 7.3 Memorandum from Manager, Financial Management; Re: 2025 Finance Advisory Committee Workplan Staff provided a brief overview of the memorandum and workplan for 2025. The Committee suggested to include an item for review and discussion regarding the economic outlook for the year and any potential budget risks or impacts that may require proactive attention. The Committee inquired about the Aurora Town Square partnership budget and staff noted that a related report would be included on the Committee of the Whole agenda next month, and staff would follow up regarding key performance indicators related to attendance and revenue for the Aurora Cultural Centre and Performance Hall later in the year. Page 4 of 16 Finance Advisory Committee Meeting Minutes January 21, 2025 5 Moved by Councillor Thompson Seconded by Councillor Kim 1. That the memorandum regarding 2025 Finance Advisory Committee Workplan be received; and 2. That the Finance Advisory Committee comments regarding 2025 Finance Advisory Committee Workplan be received and referred to staff for consideration and further action as appropriate. Carried 8. New Business Councillor Kim requested an update on the ONE JIB (Joint Investment Board) membership, and staff advised that a number of municipalities have joined since the fall, including the Region of Durham, and the Town’s Director, Finance has joined the Board for the ONE Investment Fund beginning this year. 9. Adjournment Moved by Councillor Kim Seconded by Councillor Thompson That the meeting be adjourned at 6:21 p.m. Carried Page 5 of 16 100 John West Way Aurora, Ontario L4G 6J1 (905) 727-3123 aurora.ca Town of Aurora Memorandum Finance Re: Line by Line Budget Review of Corporate Services To: Finance Advisory Committee From: Laura Sheardown, Financial Management Advisor Date: February 18, 2025 Recommendation 1. That the memorandum regarding Line by Line Budget Review of Corporate Services be received; and 2. That the Finance Advisory Committee comments regarding Line by Line Budget Review of Corporate 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 these detailed reviews, any arising budget concern areas can be explored and addressed as part of a future Town budget process. Attachments 1. Corporate Services Detailed Budget Materials Page 6 of 16 20212022202320242024 2024 Forecast vs 2024 Forecast vsActualActualActualBudgetForecast 2023 Actual 2023 ActualVariance ExplanationGross Expenditures:61001: SALARIES - F/T468,048345,070228,549281,190262,54333,99414.9%2024 budget and expenditures include 2 FTEs (Director and Asst) as prior year includes only a part year charge for these staff61003: SALARIES - P/T22,48513,11710,164--(10,164)(100.0%)61004: VACATION PAY9,536-11,078--(11,078)(100.0%)61005: SICK PAY4,5352,547804-275(528)(65.8%)61090: YEAR END ACCRUALS(19,014)(247)(86)--86100.0%61101: BENEFITS - OMERS57,46143,07830,14734,62131,8721,7255.7%61102: BENEFITS - EHT9,9127,1424,9855,5605,2012164.3%61103: BENEFITS - WSIB2,9631,8251,0862,1381,42133630.9%61104: BENEFITS - CPP14,4119,2935,2017,4486,4801,28024.6%61105: BENEFITS - EI5,7363,6112,0052,9473,3251,32165.9%61106: BENEFITS - DENTAL6,5903,6851,7353,6963,0221,28774.2%61107: BENEFITS - HEALTH11,0995,8972,9805,8084,8241,84561.9%61108: BENEFITS - LTD/ADD10,4649,8936,4147,2996,46652.8%61109: BENEFITS - OTHER1,096--1,084533533-61902:SALARY SAVINGS---(33,150)---Subtotal: 61000: SALARIES ANDBENEFITS605,323444,911305,061318,641325,96420,9036.9%62001: OFFICE SUPPLIES8411750800182132264.3%62005:SUBSCRIPTIONS/PUBLICATIONS101--1,200325325-62007: OFFICE EQUIPMENT1902,784-5009393-62045: MEETING EXPENSES8863,7635321,0001,6661,134213.3%62999: CLEARING/SUSPENSEACCOUNT6,26714,053--1,9871,987-Subtotal: 62000: MATERIALS ANDSUPPLIES7,52820,7175823,5004,2543,672631.1%64008: MOBILE PLAN CHARGES1,2161,4792,006600620(1,386)(69.1%)64013: COURSES & SEMINARS3,5625,0134,5705,0003,803(767)(16.8%)64014: MANDATORY COURSES &SEMINARS----7575-64015: MEMBERSHIPS13,91326,844--600600-64016: MILEAGE--94002822732902.1%64017: VEHICLE ALLOWANCE8033,6066,7663,9424,029(2,738)(40.5%)64032: PHOTOCOPIER CHARGES24633528633556(230)(80.5%)Subtotal: 64000: SERVICES ANDCONSULTANTS19,73937,27713,63810,2779,465(4,173)(30.6%)Expenses Budgeted632,590502,906319,281332,418339,68320,4016.4%Revenues:41003: TRANSFERS FROMRESERVES(143,400) - - - - - -Subtotal: 41000: TRANSFERS FROMRESERVE(143,400)------Revenues Budgeted(143,400)------Total Levy489,190502,906319,281332,418339,68320,401(6.4%)Attachment 1Page 7 of 16 2021 2022 2023 2024 2024 2024 Forecast vs 2024 Forecast vs Actual Actual Actual Budget Forecast 2023 Actual 2023 Actual Variance Explanation Gross Expenditures: 61001: SALARIES - F/T 984,941 1,038,684 1,190,367 1,080,256 1,237,170 46,803 3.9% 61002: SALARIES - O/T 37,588 42,971 31,402 - 35,784 4,382 14.0% 61003: SALARIES - P/T 244,631 113,688 68,132 234,753 69,336 1,204 1.8% 61004: VACATION PAY - 9,082 - - - - - 61005: SICK PAY 11,573 31,394 26,840 - 29,692 2,852 10.6% 61090: YEAR END ACCRUALS (23,696) 8,206 1,426 - - (1,426) (100.0%) 61101: BENEFITS - OMERS 102,157 103,850 48,955 112,805 128,513 79,559 162.5% Higher than budgeted OMERS contributions 61102: BENEFITS - EHT 25,482 24,166 24,560 25,155 27,715 3,155 12.8% 61103: BENEFITS - WSIB 9,667 9,134 9,259 9,675 10,601 1,342 14.5% 61104: BENEFITS - CPP 53,410 51,555 53,097 55,585 61,872 8,775 16.5% 61105: BENEFITS - EI 21,375 19,908 20,054 20,751 20,921 867 4.3% 61106: BENEFITS - DENTAL 11,047 13,035 14,113 20,328 17,637 3,524 25.0% 61107: BENEFITS - HEALTH 20,629 20,796 24,045 31,944 29,253 5,208 21.7% 61108: BENEFITS - LTD/ADD 22,158 27,772 27,984 27,092 30,174 2,190 7.8% 61109: BENEFITS - OTHER 2,082 - - 4,021 66 66 - Subtotal: 61000: SALARIES AND BENEFITS 1,523,043 1,514,242 1,540,234 1,622,365 1,698,734 158,500 10.3% 62001: OFFICE SUPPLIES 1,187 1,319 15,181 2,650 2,102 (13,079) (86.2%) 62007: OFFICE EQUIPMENT - - - 1,000 - - - 62010: SAFETY SUPPLIES - - 25 - 55 30 116.5% 62011: CLOTHING ALLOWANCE 13,535 12,888 12,864 19,200 21,312 8,448 65.7% 62016: OPERATING MATERIALS 21,508 21,697 35,897 12,490 83,779 47,882 133.4% Miscoding of MTO charges for AMPS 62020: VEHICLE SUPPLIES 2,699 824 1,530 6,030 4,700 3,170 207.2% 62025: PROGRAM MATERIALS - - 110 700 - (110) (100.0%) 62045: MEETING EXPENSES 1,317 669 1,196 450 609 (587) (49.1%) 62048: FUEL COSTS - 12,942 13,033 13,000 13,000 (33) (.3%) Subtotal: 62000: MATERIALS AND SUPPLIES 40,246 50,338 79,835 55,520 125,557 45,721 57.3% 64002: CONFERENCES - - - - 9 9 - 64008: MOBILE PLAN CHARGES 11,426 9,700 9,076 7,000 5,975 (3,100) (34.2%) 64013: COURSES & SEMINARS 2,994 6,815 16,092 7,100 9,778 (6,313) (39.2%) 64014: MANDATORY COURSES & SEMINARS 1,214 6,949 6,866 2,940 10,633 3,766 54.8% 64015: MEMBERSHIPS 1,077 2,006 565 2,050 1,694 1,129 200.0% 64016: MILEAGE 328 43 1,124 400 1,064 (60) (5.3%) 64018: GENERAL OFFICE EQUIPMENT - - 930 1,100 - (930) (100.0%) 64019: VEHICLE REPAIRS - 318 - 2,700 1,007 1,007 - 64024: PROPERTY IMPROVEMENT 18,062 8,398 11,395 1,800 7,728 (3,668) (32.2%) 64032: PHOTOCOPIER CHARGES 4,674 4,042 4,232 4,042 4,042 (190) (4.5%) 64033: PRINTING 5,811 800 4,484 2,000 2,819 (1,665) (37.1%) 64045: CONTRACTS 236,579 157,251 198,806 225,182 273,599 74,793 37.6% Includes two months of shelter costs from 2022 that were not processed for payment 64046: SOFTWARE MTNCE/SUPPORT 5,581 - 15,256 6,700 10,171 (5,085) (33.3%) 64140: AMPS - MTO SERVICE COSTS - - - 15,000 - - - 65901: COST RECOVERY - - - (12,000) - - - Subtotal: 64000: SERVICES AND CONSULTANTS 287,746 196,322 268,826 266,014 328,520 59,693 22.2% 66001: BANK CHARGES 2,991 - 1,948 - 3,483 1,535 78.8% Subtotal: 66000: FINANCIAL CHARGES 2,991 - 1,948 - 3,483 1,535 78.8% Expenses Budgeted 1,854,025 1,760,901 1,890,844 1,943,899 2,156,293 265,449 14.0% Revenues: 52108: ANIMAL CONTROL - DOG TAGS (38,519) (23,193) (33,965) (48,000) (26,092) 7,874 (23.2%) 52109: ANIMAL CONTROL - CAT TAGS (135) (179) (275) (2,400) (795) (520) 189.4% 52131: DECEASED WILDLIFE DISPOSAL (PRIVATE PROPERTY)- - - - (180) (180) - 54001: FEDERAL GRANTS/CONTRIBUTION (4,207) (2,100) - - - - - 54005: PROVINCIAL GRANTS/CONTRIBUTIONS (45,667) (57,137) (27,990) - (45,000) (17,010) 60.8% 54100: OTHER GRANTS - - (171,403) (205,747) (252,966) (81,562) 47.6% Includes revenue from Region of York for forest patrols and EG for Animal Control for 2024 56106: RESIDENTIAL BUILDING PERMITS (15,240) (12,551) (4,032) (10,000) (7,326) (3,293) 81.7% 56104: BYLAW - BYLAW LICENSES (25,274) (36,224) (39,544) (52,000) (54,644) (15,100) 38.2% 56105: BYLAW - PARKING PERMITS (1,194) - 261 - - (261) 100.0% 56110: FARMERS MARKET PERMITS (2,449) (2,997) (765) (3,000) (4,136) (3,371) 440.7% 56200: COURT FINES (16,321) (77,914) (71,843) (62,425) (21,624) 50,219 (69.9%) Transitioning from court payments to AMPS revenue in 2024 56202: BYLAW - PARKING VIOLATIONS (169,950) (173,152) (233,729) (170,945) (248,236) (14,507) 6.2% 56102: LOTTERY LICENSES - - - - (3,447) (3,447) - 56126: OTHER USER FEES (442,519) (330,337) (91,764) (22,802) (36,558) 55,206 (60.2%) Tranistioned Animal Services revenues for Region of York and EG from 56126 to 54100 in 2024 56203: FINES - - - - (1,720) (1,720) - 56201: AMPS - NON-PARKING FINES (125) - (15,700) - (59,215) (43,515) 277.2% Implementation of AMPS resulting in revenue being allocated here instead of Court Fines 56205: AMPS - ANIMAL FINES - - - - (3,520) (3,520) - Subtotal: 50000: REVENUES (761,598) (715,784) (690,750) (577,319) (765,458) (74,708) 10.8% Revenues Budgeted (761,598)(715,784) (690,750) (577,319) (765,458) (74,708) (10.8%) Total Levy 1,092,427 1,045,118 1,200,094 1,366,580 1,390,835 190,741 (15.9%) Page 8 of 16 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 - 17,940 - - - - -61003: SALARIES - P/T - 5,010 - - - - -Subtotal: 61000: SALARIES ANDBENEFITS- 22,950 - - - - -62001: OFFICE SUPPLIES - 3,054 - - - - -62016: OPERATING MATERIALS - 109 - - - - -Subtotal: 62000: MATERIALS ANDSUPPLIES- 3,163 - - - - -64029: ADVERTISING SERVICES - 22,575 - - - - -64031: POSTAGE - 18,610 - - - - -64045: CONTRACTS 270 151,914 (25,362) - - 25,362 100.0% Election in 2022 charges instead of a Contrubution to Reserve in other yearsSubtotal: 64000: SERVICES ANDCONSULTANTS270 193,099 (25,362) - - 25,362 100.0%45003: TRANSFERS TO RESERVES 92,500 - 120,862 105,500 105,500 (15,362) 12.7%Subtotal: 45000: TRANSFERS TO 92,500 - 120,862 105,500 105,500 (15,362) 12.7%Expenses Budgeted 92,770 219,212 95,500 105,500 105,500 10,000 10.5%Revenues:41003: TRANSFERS FROMRESERVES- (121,212) - - - - -Subtotal: 41000: TRANSFERS FROMRESERVE- (121,212) - - - - -Revenues Budgeted - (121,212) - - - - -Total Levy 92,770 98,000 95,500 105,500 105,500 10,000 (10.5%)Page 9 of 16 2021 2022 2023 2024 2024 2024 Forecast vs 2024 Forecast vsActual Actual Actual Budget Forecast 2023 Actual 2023 Actual Variance ExplanationGross Expenditures:62016: OPERATING MATERIALS 35,031 - - 3,500 3,500 3,500 -Subtotal: 62000: MATERIALS ANDSUPPLIES35,031 - - 3,500 3,500 3,500 -64005: TELEPHONE SERVICEAGREEMENT15,267 16,082 16,891 16,500 17,168 276 1.6%64045: CONTRACTS - 18,085 19,299 23,585 21,656 2,358 12.2%Subtotal: 64000: SERVICES ANDCONSULTANTS15,267 34,167 36,190 40,085 38,824 2,634 7.3%Expenses Budgeted 50,298 34,167 36,190 43,585 42,324 6,134 16.9%Revenues:Total Levy 50,298 34,167 36,190 43,585 42,324 6,134 (16.9%)Page 10 of 16 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 571,877 662,138 757,448 801,483 720,729 (36,718) (4.8%)61002: SALARIES - O/T 12,494 3,777 196 - 371 175 89.4%61003: SALARIES - P/T 32,101 - 4,813 11,076 - (4,813) (100.0%)61004: VACATION PAY - 8,753 - - 15,083 15,083 -61005: SICK PAY 2,038 7,040 7,728 - 1,241 (6,488) (83.9%)61090: YEAR END ACCRUALS (947) (8,589) 3,011 - - (3,011) (100.0%)61101: BENEFITS - OMERS 64,826 71,477 85,731 90,403 77,286 (8,445) (9.9%)61102: BENEFITS - EHT 12,264 13,405 15,090 15,832 14,454 (635) (4.2%)61103: BENEFITS - WSIB 4,163 4,593 5,308 6,089 5,387 79 1.5%61104: BENEFITS - CPP 20,769 24,702 26,712 28,468 32,483 5,770 21.6%61105: BENEFITS - EI 8,054 9,505 10,028 10,565 9,904 (123) (1.2%)61106: BENEFITS - DENTAL 8,500 9,250 11,353 12,936 11,691 338 3.0%61107: BENEFITS - HEALTH 14,477 14,824 19,447 20,328 19,074 (373) (1.9%)61108: BENEFITS - LTD/ADD 14,290 21,266 23,458 20,505 19,056 (4,403) (18.8%)61109: BENEFITS - OTHER 1,266 - - 3,044 512 512 -Subtotal: 61000: SALARIES ANDBENEFITS766,172 842,141 970,322 1,020,728 927,271 (43,051) (4.4%)62001: OFFICE SUPPLIES 877 1,740 597 4,500 472 (125) (20.9%)62005:SUBSCRIPTIONS/PUBLICATIONS2,347 2,841 2,862 2,500 1,938 (924) (32.3%)62007: OFFICE EQUIPMENT 226 5,388 1,046 400 2,730 1,684 161.0%62010: SAFETY SUPPLIES 5,434 1,083 666 3,000 929 263 39.4%62025: PROGRAM MATERIALS - - 57 - - (57) (100.0%)62045: MEETING EXPENSES 531 1,293 1,727 450 711 (1,016) (58.9%)62064: WORKPLACEACCOMMODATIONS- 2,973 2,225 2,500 400 (1,825) (82.0%)62086: EMPLOYEE RECOGNITION 6,268 12,229 10,506 12,500 8,484 (2,022) (19.2%)Subtotal: 62000: MATERIALS ANDSUPPLIES15,684 27,547 19,687 25,850 15,663 (4,024) (20.4%)64008: MOBILE PLAN CHARGES 1,330 1,677 1,437 2,400 1,388 (50) (3.5%)64012: CORPORATE COURSES &SEMINARS89,324 45,435 89,328 72,220 44,500 (44,828) (50.2%)Additional training costs in 2023 for a Leadership Development program which did not reoccur in 2024. Less training was planned in 2024 due to transition of HR mgmt, more training planned for 2025. 64013: COURSES & SEMINARS 2,197 6,301 4,004 6,500 3,552 (452) (11.3%)64015: MEMBERSHIPS 2,502 3,625 3,529 4,335 5,604 2,075 58.8%64016: MILEAGE - 184 207 413 50 (157) (75.9%)64029: ADVERTISING SERVICES 13,740 19,003 36,922 20,800 18,884 (18,038) (48.9%)64030: CONSULTING 12,589 29,207 47,624 16,000 11,090 (36,534) (76.7%)Less external consultant costs incurred in 2024 (2023 costs were market reviews and job evaluation) due to transition of HR mgmt. Market reviews and job evaluations are 64032: PHOTOCOPIER CHARGES 4,077 4,375 4,335 4,375 - (4,335) (100.0%)64033: PRINTING - - - 500 - - -64036: POLICE SEARCHES 1,613 1,321 2,699 5,500 2,541 (158) (5.9%)64043: PERSONNELADMINISTRATION28,196 22,038 15,484 47,500 45,427 29,943 193.4% Less external expenditures related to personnel administration in 2023. 64045: CONTRACTS 54,765 59,872 26,184 25,000 23,199 (2,985) (11.4%)Subtotal: 64000: SERVICES ANDCONSULTANTS210,335 193,038 231,752 205,543 167,129 (64,622) (27.9%)Expenses Budgeted 992,190 1,062,726 1,221,760 1,252,121 1,110,064 (111,696) (9.1%)Revenues:54001: FEDERALGRANTS/CONTRIBUTION- (2,100) - - - - -54100: OTHER GRANTS (10,000) - - - - - -Subtotal: 50000: REVENUES (10,000) (2,100) - - - - -Revenues Budgeted (10,000) (2,100) 0 0 0 0 -Total Levy 982,190 1,060,626 1,221,760 1,252,121 1,110,064 (111,696) 9.1%Page 11 of 16 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 727,556 754,061 856,488 809,485 720,952 (135,536) (15.8%) Temporary vacancies resulted in savings in 202461002: SALARIES - O/T - - - 5,177 862 862 -61003: SALARIES - P/T 1,314 - - 6,199 26,986 26,986 -61004: VACATION PAY - 765 - - - - -61005: SICK PAY 1,879 3,265 10,057 - 7,710 (2,346) (23.3%)61090: YEAR END ACCRUALS (14,240) 1,210 7,353 - - (7,353) (100.0%)61101: BENEFITS - OMERS 77,670 78,070 93,103 80,353 82,295 (10,808) (11.6%)61102: BENEFITS - EHT 14,337 14,899 17,013 15,785 15,554 (1,460) (8.6%)61103: BENEFITS - WSIB 4,584 4,823 5,402 6,071 5,684 282 5.2%61104: BENEFITS - CPP 23,694 26,459 30,795 28,056 29,493 (1,302) (4.2%)61105: BENEFITS - EI 9,318 10,271 11,726 10,315 10,896 (829) (7.1%)61106: BENEFITS - DENTAL 8,826 8,646 10,004 11,088 9,415 (589) (5.9%)61107: BENEFITS - HEALTH 14,897 14,013 17,062 17,424 15,374 (1,688) (9.9%)61108: BENEFITS - LTD/ADD 16,726 19,640 24,666 18,078 20,880 (3,786) (15.4%)61109: BENEFITS - OTHER 1,707 - - 2,683 - - -Subtotal: 61000: SALARIES ANDBENEFITS888,269 936,121 1,083,669 1,010,714 946,101 (137,568) (12.7%)62001: OFFICE SUPPLIES 450 710 827 1,500 578 (249) (30.1%)62005:SUBSCRIPTIONS/PUBLICATIONS53,457 48,624 59,264 40,000 45,735 (13,529) (22.8%)62007: OFFICE EQUIPMENT 2,065 3,002 478 3,000 2,158 1,680 351.4%62045: MEETING EXPENSES 599 618 586 450 1,007 421 71.8%Subtotal: 62000: MATERIALS ANDSUPPLIES56,572 52,954 61,155 44,950 49,478 (11,677) (19.1%)64008: MOBILE PLAN CHARGES 2,285 1,250 1,247 2,192 1,123 (124) (9.9%)64014: MANDATORY COURSES &SEMINARS3,086 5,171 8,136 6,745 4,693 (3,443) (42.3%)64015: MEMBERSHIPS 6,993 7,429 9,353 10,000 9,182 (171) (1.8%)64016: MILEAGE - 37 - 500 171 171 -64017: VEHICLE ALLOWANCE - - - - 2,198 2,198 21977900.0%64026: INSURANCE FEES 653,372 780,782 657,205 854,961 851,413 194,208 29.6%Insurance fee increases and allocation of additional funds to insurance reserve in 202464027: INSURANCE ADJUSTER 34,037 64,635 92,648 75,000 122,610 29,962 32.3%Higher in 2024 due to extra legal fees being incurred on behalf of a contractor, which will be recovered from the contractor in 2025.64032: PHOTOCOPIER CHARGES 4,142 4,094 4,104 4,094 682 (3,422) (83.4%)64039: SEARCHES &REGISTRATIONS25,688 17,919 81,598 21,224 12,913 (68,685) (84.2%)An expense for a transaction was incorrectly recorded to the 2023 Searches and Registrations account. In 2024, there were less searches and registrations that were required. 64040: GENERAL LEGAL - 1,071 - - - - -64041: PLANNING &DEVELOPMENT97,622 41,991 89,554 51,000 149,160 59,606 66.6%Higher planning & development legal costs due to legal fees for a planning hearing in 2024 and legal fees to obtain an injunction for 95 Dunning Avenue.64042: ADVOCACY 27,157 110,570 10,172 53,450 9,399 (774) (7.6%)64044: RISK MANAGEMENT - - 2,137 - 10,316 8,179 382.7%64045: CONTRACTS - 1,723 - 15,000 2,500 2,500 -65901: COST RECOVERY - - (6,627) - (38,451) (31,824) (480.2%)Subrogation of claims is based on how many claims are received related to damage to Town property Increased costs to collect and therefore selective on what claimsSubtotal: 64000: SERVICES ANDCONSULTANTS854,380 1,036,672 949,528 1,094,166 1,137,909 188,381 19.8%45003: TRANSFERS TO RESERVES - - 181,679 - - (181,679) 100.0%Subtotal: 45000: TRANSFERS TO - - 181,679 - - (181,679) 100.0%Expenses Budgeted 1,799,221 2,025,747 2,276,031 2,149,830 2,133,488 (142,543) (6.3%)Revenues:52102: ADMINISTRATIVE FEEREVENUE(148,274) (86,540) (87,964) (90,000) (31,036) 56,928 (64.7%) Fewer development agreements required in 2024 than 202354001: FEDERALGRANTS/CONTRIBUTION(3,367) - - - - - -56600: INSURANCE CLAIMSREIMBURSED(613) (2,796) - - (2,823) (2,823) -56126: OTHER USER FEES (4,822) 1,591 - - - - -Subtotal: 50000: REVENUES (157,076) (87,744)(87,964) (90,000) (33,858) 54,105 (61.5%)Revenues Budgeted (157,076) (87,744)(87,964) (90,000) (33,858)54,105 61.5%Total Levy 1,642,145 1,938,003 2,188,068 2,059,830 2,099,630 (88,438) 4.0%Page 12 of 16 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 612,155 580,845 605,850 683,969 641,053 35,203 5.8%61002: SALARIES - O/T - 2,696 235 - - (235) (100.0%)61003: SALARIES - P/T - 4,595 - 21,807 3,636 3,636 -61004: VACATION PAY - 10,570 2,190 - 3,197 1,007 46.0%61005: SICK PAY 833 806 3,583 - 8,597 5,014 140.0%61006: LIEU TIME - - 1,333 - - (1,333) (100.0%)61090: YEAR END ACCRUALS (17,811) (5,303) 3,167 - - (3,167) (100.0%)61101: BENEFITS - OMERS 67,272 62,362 66,016 72,781 69,575 3,559 5.4%61102: BENEFITS - EHT 12,014 11,761 11,953 13,737 12,834 881 7.4%61103: BENEFITS - WSIB 4,172 4,158 4,197 5,284 4,704 507 12.1%61104: BENEFITS - CPP 21,192 25,355 22,621 27,030 27,508 4,887 21.6%61105: BENEFITS - EI 8,376 10,000 8,586 10,278 9,318 732 8.5%61106: BENEFITS - DENTAL 9,243 6,453 7,089 12,012 8,162 1,073 15.1%61107: BENEFITS - HEALTH 14,175 10,261 12,006 18,876 13,161 1,155 9.6%61108: BENEFITS - LTD/ADD 15,653 14,886 16,263 17,484 15,602 (661) (4.1%)61109: BENEFITS - OTHER 1,302 - - 2,595 - - -Subtotal: 61000: SALARIES ANDBENEFITS748,575 739,446 765,087 885,853 817,346 52,258 6.8%62001: OFFICE SUPPLIES 207 960 614 1,500 398 (216) (35.3%)62005:SUBSCRIPTIONS/PUBLICATIONS- - - 500 83 83 -62007: OFFICE EQUIPMENT - 471 108 1,000 931 823 763.6%62045: MEETING EXPENSES - 50 44 450 1,142 1,098 2481.0%Subtotal: 62000: MATERIALS ANDSUPPLIES207 1,481 766 3,450 2,554 1,788 233.4%64008: MOBILE PLAN CHARGES 874 822 460 1,200 823 363 78.9%64013: COURSES & SEMINARS 2,464 2,174 6,282 7,500 3,416 (2,866) (45.6%)64014: MANDATORY COURSES &SEMINARS- - 279 - - (279) (100.0%)64015: MEMBERSHIPS 1,720 824 2,277 2,000 1,167 (1,111) (48.8%)64016: MILEAGE - - - 500 83 83 -64029: ADVERTISING SERVICES 1,249 994 3,833 1,500 1,584 (2,249) (58.7%)64032: PHOTOCOPIER CHARGES 10,618 11,504 10,306 11,504 11,504 1,198 11.6%64033: PRINTING - 132 - 1,500 182 182 -64045: CONTRACTS 8,147 11,200 12,966 16,500 11,179 (1,786) (13.8%)64080: INTEGRITY COMMISIONER 5,055 6,070 8,449 17,250 16,084 7,635 90.4%65901: COST RECOVERY - - - (10,100) (5,050) (5,050) -Subtotal: 64000: SERVICES ANDCONSULTANTS30,127 33,722 44,852 49,354 40,972 (3,880) (8.7%)Expenses Budgeted 778,909 774,649 810,705 938,657 860,871 50,166 6.2%Revenues:52114: FOI REVENUES (976) (1,113) (1,408) (1,500) (971) 437 (31.0%)54001: FEDERALGRANTS/CONTRIBUTION(4,041) (2,100) - - - - -54100: OTHER GRANTS - - - (51,000) (25,500) (25,500) -56122: CIVIL MARRIAGESREVENUE(6,064) (15,012) (5,650) - - 5,650 (100.0%)56126: OTHER USER FEES - 988 - - - - -56998: (GAINS)/LOSSES ONDISPOSALS(6,325) (988) - - - - -Subtotal: 50000: REVENUES (17,405) (18,225) (7,058) (52,500) (26,471) (19,413) 275.0%Revenues Budgeted (17,405) (18,225) (7,058) (52,500) (26,471)(19,413) (275.0%)Total Levy 761,504 756,424 803,647 886,157 834,400 30,753 (3.8%)Page 13 of 16 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 - 11,774 325,557 345,018 338,885 13,328 4.1%61002: SALARIES - O/T - - - - 664 664 -61005: SICK PAY - - 4,719 - 2,232 (2,487) (52.7%)61090: YEAR END ACCRUALS - 4,6698,931 - - (8,931) (100.0%)61101: BENEFITS - OMERS - 1,304 35,569 38,999 38,280 2,712 7.6%61102: BENEFITS - EHT - 232 6,466 6,728 6,685 219 3.4%61103: BENEFITS - WSIB - 89 2,382 2,588 2,571 189 7.9%61104: BENEFITS - CPP - 683 11,904 12,024 11,439 (465) (3.9%)61105: BENEFITS - EI - 269 4,489 4,421 4,115 (374) (8.3%)61106: BENEFITS - DENTAL - 428 5,205 5,544 5,358 153 2.9%61107: BENEFITS - HEALTH - 739 8,939 8,712 8,766 (173) (1.9%)61108: BENEFITS - LTD/ADD - 797 9,821 8,832 9,387 (433) (4.4%)61109: BENEFITS - OTHER - - - 1,311 221 221 -Subtotal: 61000: SALARIES ANDBENEFITS- 20,983 423,981 434,177 428,604 4,622 1.1%62045: MEETING EXPENSES - - 572 450 450 (122) (21.3%)Subtotal: 62000: MATERIALS ANDSUPPLIES- - 572 450 450 (122) (21.3%)64002: CONFERENCES - - 15 - - (15) (100.0%)64008: MOBILE PLAN CHARGES - - 768 1,800 932 164 21.3%64013: COURSES & SEMINARS - - 2,342 2,250 3,222 880 37.6%64015: MEMBERSHIPS - - 15,462 16,139 13,738 (1,725) (11.2%)64016: MILEAGE - - 698 - 681 (17) (2.5%)64083: ACCESSIBILITY COSTS - - 26,010 27,258 27,877 1,867 7.2%Subtotal: 64000: SERVICES ANDCONSULTANTS- - 45,296 47,447 46,450 1,154 2.5%Expenses Budgeted - 20,983 469,849 482,074 475,504 5,655 1.2%Revenues:41003: TRANSFERS FROMRESERVES- - (141,030) (141,030) (141,030) - -Subtotal: 41000: TRANSFERS FROMRESERVE- - (141,030) (141,030) (141,030) - -Revenues Budgeted - - (141,030) (141,030) (141,030) - -Total Levy - 20,983 328,819 341,044 334,474 5,655 (1.7%)Page 14 of 16 100 John West Way Aurora, Ontario L4G 6J1 (905) 727-3123 aurora.ca Town of Aurora Memorandum Finance Re: ONE JIB Update – Transition to Outsourced Chief Investment Officer (OCIO) To: Finance Advisory Committee From: Laura Sheardown, Financial Management Advisor Date: February 18, 2025 Recommendation 1. That the memorandum regarding ONE JIB Update – Transition to Outsourced Chief Investment Officer (OCIO) be received; and 2. That the Finance Advisory Committee comments regarding ONE JIB Update – Transition to Outsourced Chief Investment Officer (OCIO) be received and referred to staff for consideration and further action as appropriate. Background In 2023, Council approved the transition of Aurora’s long-term investments to the ONE Joint Investment Board (ONE JIB) which was completed in September 2023 with Aurora’s investments seeing returns of 14.9% since inception (as per Sept 2024 statement). The ONE JIB’s Strategic Plan includes a key goal of growing the assets under management through the attraction of new large municipal members to the Prudent Investor Program. On February 28, 2024, the ONE JIB agreed to proceed with the implementation of an Outsourced Chief Investment Officer (OCIO). In support of the transition to the OCIO model, the ONE JIB undertook a review process resulting in the identification of Phillips, Hager & North Investment Management Ltd, (PH&N), a wholly owned subsidiary of RBC Global Asset Management Inc. The ONE JIB’s engagement of an OCIO further supports this goal as well as strengthens its governance. Page 15 of 16 ONE JIB Update – Transition to OCIO February 18, 2025 Page 2 of 2 Analysis Transition to OCIO The transition to an OCIO model allows the ONE JIB to offer participating municipalities access to the full suite of funds offered by PH&N. PH&N will provide a wide range of investment products and services as part of the OCIO framework. Through the OCIO framework, PH&N will provide a much broader range of investment funds beyond the five currently available to the ONE JIB, offering many more options to build and customize its various investment its portfolios. Currently, ONE JIB offers five different investment funds to municipalities, compared to the anticipated 36 different investment funds that will be offered by PH&N under the OCIO framework. The ONE JIB will strive to ensure that its OCIO framework offers maximum flexibility in its implementation of Investment Plans while achieving operational efficiency in support of its growing number of municipal members of the Prudent Investment Program. Alternative investments are available under the OCIO offerings ONE JIB is also offering alternative investments under the OCIO offerings such as real estate and infrastructure. Alternative investments tend to be higher-risk profile investments that offer potentially larger returns but tend to have strong diversification benefits. The addition of alternative investments to a diversified portfolio will improve the risk-adjusted returns of a portfolio. Due to the higher risk profile and more limited liquidity of alternative investments, they are not considered for all investors. Staff are looking for direction from FAC to decide if they would like to include alternative investments in the revised investment policy or not. Next steps of the transition to OCIO As part of the transition to OCIO, all participating municipalities are required to update their respective investment policies to allow for the outsourcing of management of the combined holdings of the ONE JIB. Staff are currently completing all necessary changes to the Town’s investment policy to this effect and are scheduled to bring the updated investment policy to the FAC for review in April. Page 16 of 16