2014 Final Op-Cap Budgets Final Approval
COUNCIL REPORT No. CFS14-011
SUBJECT: 2014 Operating and Capital Budgets – Final Approval
FROM: Dan Elliott, Director of Corporate & Financial Services - Treasurer DATE: March 18, 2014
RECOMMENDATIONS
THAT the 2014 Operating Budget summarized in Attachment 2 which reflects all revisions recommended for approval by the Budget Committee, resulting in a
total tax levy of $34,822,700 and a total expenditure plan of $53,470,100, and an
estimated 1.99% residential tax bill increase when combined with the regional and
education shares of the tax bill, be approved; and THAT the Town’s full-time staff complement be increased by two (2) to 207
(excluding Library Board and Central York Fire Services staff) as presented in
Attachment 5 and funded in the 2014 Operating Budget; and
THAT staff prepare the necessary bylaw for adoption by Council to set 2014 tax rates and payment dates.
PURPOSE OF THE REPORT
To present for formal adoption the 2014 Operating and Capital Budgets as
recommended for approval by the Budget Committee on February 24, 2014.
BACKGROUND
On November 4, 2013 staff was provided with direction by Aurora Town Council to
prepare draft operating and capital budgets. The budgets were to be prepared
according to a number of principles and guidelines, which included the following key
elements:
• The overall corporate budget will be prepared on the basis of maintaining existing
service levels to the community, with cost containment and efficiencies to be
priorities.
• Initiatives which advance goals and objectives of the Town’s Strategic Plan will
be highlighted, and all new capital projects will outline their linkage to the
Strategic Plan.
• Capital and Operating budgets will manage the Town’s active and passive capital
TOWN OF AURORA
March 18, 2014 - 2 - Report No. CFS14-011 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.
• As has been done in the last three budgets, within the Operating Budget, tax rate
funding support of capital projects will be consolidated together, without the
detailed identification or association of any specific capital works projects. A single amount referred to as “tax cash to capital” will be identified and assessed
for its impact to the overall Operating Budget and tax rate by the Budget
Committee. A detailed assessment of the proposed capital program and the
funding sources for each individual project will be undertaken within the context
of the capital budget review only. Separating the Capital Budget review from the Operating Budget review will help to streamline and focus the overall review
process. Maintaining a relatively consistent level of capital funding from the tax
rate will enhance the stability of the corporate budget. Capital reserves are used
to hold capital contributions until such time they are required for actual projects,
thus allowing the total value of the capital budget to fluctuate from year to year without having a direct year to year impact on the tax rate. These reserves and
the stable tax rate that they make possible are a key element of the Town’s
financial management strategy.
KEY ISSUES AND PRESSURES AFFECTING THE 2014 BUDGET
i) The economy continues to be sluggish, resulting in taxpayers and Council’s
continued expectation of a strong value for dollar, with a focus on true needs,
rather than wants and “nice-to-have” items. 2014 assessment base growth
revenue was slightly above 2013 levels of 1.3% coming in at 1.63% but continues to be lower than prior year’s budgets (1.75% in 2012 and 2.7% in
2011).
ii) Approximately 25% of the total 2013 Aurora tax levy funded the fire and
emergency services provided by Central York Fire Services (CYFS). For
2014, the cost of Aurora’s share of this service added another 1.13% in tax
rate pressure. In addition, the planned final phase-in of the full cost of the new
fire crew that was added in 2011 is placing additional pressure on the 2014 tax levy. CYFS costs are shared proportionately with the Town of Newmarket.
iii) The assumption of cultural artifacts by the Town and the new Museum
Services contract costs will add new tax rate pressures. Neither these costs
nor any costs in relation to Cultural Master Plan initiatives which may arise from recommendations expected in the 2nd quarter of 2014 have been
included in the 2014 budget.
iv) Lower levels of building and construction activity over the course of the last
two years have supressed the Town’s supplementary tax revenues. These revenues are expected to remain low in 2014 and then begin to recover in the
2015 fiscal year. It is anticipated that a total of $ 250,000 in supplementary
March 18, 2014 - 3 - Report No. CFS14-011 tax revenues will be collected in 2014, $ 325,000 lower than 2013’s estimate.
v) Corporate Overhead cost reallocations to Building Services have been
assessed as aggressive and contributing to the weakening of the Building
Fees reserve. Consequently, the overhead cost allocation methodology has
been revised resulting in a reduced total corporate overhead reallocation to
Building Services of $208,900 which will be phased in over the 2014 and 2015 fiscal years in equal portions. The 2014 tax pressure as a result of this
phase in is estimated at $ 104,500 or 0.31%.
vi) The Town’s Ten Year Capital Plan and Reserve Fund Strategy which has
been endorsed by Council calls for annual direct tax increases in order to ensure that the Town’s existing infrastructure can be properly maintained thus
ensuring continuity of service to the community. The planned tax increase for
2014 in support of this strategy is $208,000, representing a 0.62% tax
pressure. This increase is in alignment with what was proposed in the ten
year capital investment plan.
vii) Escalating benefits and salaries costs: A 1.71% tax rate pressure arises from
existing staffing and benefit costs. This base budget item includes a cost of living adjustment of 2.0% effective April 1, 2014 to the entire compensation
grid of the Town, except Fire Services which is administered by Newmarket.
Also, increased mandated employer share of pension contributions and other
employee benefits are included as part of this pressure.
In response to these anticipated pressures, all departments were asked to submit
budgets which minimized non-personnel expenses, limited new hires, and increased
non-taxation revenues of fees and charges where possible.
The Draft Budget as presented was reviewed and amended by Budget Committee.
On January 11, 2014, an overview of the first draft of the Town’s Business Plans and the Operating budget was presented to the Budget Committee. At that time, the draft
budget had a total deficit of $1,265,900, which if the entire deficit were to be funded
through increased taxation, would equate to a tax rate increase of 3.77%.
Throughout the months of January and February, the Budget Committee deliberated on the operating budget and made a number of changes. The impacts of two previously
unidentified budget pressures totalling $195,500 were successfully mitigated by
committee. In addition, the budget committee was able to reduce the town’s operational
reliance on the interest earned from the Hydro Fund by a further $100,000. With these
additional items included, the town’s revised draft operating budget deficit reached a total value of $1,561,400 (4.65% effective tax rate increase) prior to the application of
any mitigating measures. After all budget committee recommended mitigating measures
had been applied, the town’s revised funding deficit was reduced by 19% to $1,259,900,
resulting in a reduced effective tax rate increase of 3.75%. Attachment 1 details all
changes made to the original draft budget by the budget committee.
March 18, 2014 - 4 - Report No. CFS14-011 On February 24, 2014, the Budget Committee approved the 2014 Operating Budget for
recommendation to Council.
Attachment 2 shows the recommended 2014 Operating Budget Summary by
Department. Attachment 3’s Tax Rate Pressures Summary graphically provides general
information on the Base Budget for running today’s Aurora, and preparing for the
future’s Aurora. Reviewing year-over-year changes in related groups assists in understanding the source of tax rate increase pressures; Attachment 4 outlines the
Expenditure Pressures and Revenue Changes which details the increases in the 2014
Budget from the 2013 Approved Budget.
“Effective Tax Rate Increase” requires clarification.
With the introduction of annual phase-in’s of assessment changes for each property, the town begins each budget by reducing its published tax rate from the prior year to the degree necessary to produce the same amount of tax revenue from the same properties
as last year, but on the updated assessment values for those properties. This restated
rate is often referred to as the “revenue neutral tax rate”. It is from this revenue neutral
restated tax rate that the town calculates any pending tax change arising from its new annual budget. The effective tax rate increase, or simply “tax rate increase” as used in the balance of this report, is the expected increase to the town share of the tax bill that
the average residential property will experience.
THE OPERATING BUDGET
The 2014 Operating Budget provides for an increase in total expenditures of $1,907,000 or 3.70%, tax pressure change from $51,563,100 in 2013 to $53,470,100 in 2014.
$20,998,400 or 39% of these total expenditures are for direct personnel related costs.
The Operating Budget includes an increase in non-taxation revenues of $100,000.
Taxation revenue has been budgeted to increase by $1,806,900. This increase is comprised of two components: assessment growth and tax rate increase. Assessment
growth is the result of an increasing number of assessable properties and structures
within Town. Aurora’s assessment base growth resulted in a 1.63% change in its
identified tax pressure, with $547,000 in additional taxation revenue. The $1,259,900
balance of the increase in taxation revenue will be generated by the 3.75% tax rate increase on all properties.
Town share of the tax bill to increase by 3.75%
To achieve a tax rate increase of 3.75% staff and the Budget Committee effectively
managed the costs of providing existing levels of services or service enhancements
which would apply upward pressure to the tax rate. The 3.75% tax rate increase, or
$1,259,900 deficit, is broken down into the following elements:
March 18, 2014 - 5 - Report No. CFS14-011
A graphical presentation of the Tax Rate Increases is set out in Attachment 3, with further detail in Attachment 4.
Town of Aurora
2014 Operating Budget
CORPORATE SUMMARY OF TAX PRESSURE FOR 2014
Shown in $,000's Tax Rate Impact
1) A.Running Today's Town of Aurora
Current Staffing Cost Increases 546,300 1.63%
Impact of last year's added staff 28,500 0.08%
One new & one PT conversion to Full Time 63,300 0.19%
Changes in Contract Staffing - three net additions 30,500 0.09%
Staff related cost pressures 668,600 1.99%
All other expenses net of all revenues, including
non-growth tax revenues 184,800 0.54%
TOTAL TOWN PROVIDED SERVICES 853,400 2.53%
B.SERVICES PROVIDED BY OTHERS:
Fire & Emergency Services 519,800 1.55%
Library Services 125,700 0.37%
TOTAL SERVICES PROVIDED BY OTHERS 645,500 1.92%
Net (Surplus) / Deficit before Growth 1,498,900$ 4.46%
C.GROWTH TAXES FROM NEW PROPERTIES:(547,000)$
TAX PRESSURES OF RUNNING TODAY'S AURORA 951,900$ 2.83%
2) Preparing for the Future Aurora
Additional contribution to reserves for maintaining our
infrastructure assets 208,000 0.62%
Reduction of operational reliance on Hydro Reserve
interest 100,000 0.30%
1,259,900$ NET TAX PRESSURE INCREASE
Town Provided Services*
* Includes the accomodation of growth and inflationary pressures.
Tax Pressure
Amount
(1.63%)
3.75%
March 18, 2014 - 6 - Report No. CFS14-011 Running Today’s Town of Aurora Running Today’s Town of Aurora requires a modest inflationary tax increase.
Town services are delivered in Aurora through the corporate administrative budget. In
addition to directly controlled service departments, the Town of Aurora makes payments
to the Town of Newmarket for the provision of Fire & Emergency Services through the shared and jointly managed Central York Fire Services budget, and a payment to the
Aurora Library Board for the provision of library services.
The Town experiences inflation in all of its operating, capital and utility services
budgets. Staffing and related benefits represent a significant component of the town’s expenditures. Related pressures include inflationary wage adjustments, increases in the
costs of existing pension and benefits plans (without enhancement to the plans), as well
as bringing on additional staff necessary in order to meet the service needs of our
expanding community facilities, population and the associated volume of activities. The
2014 budget provides for one new staff position, and the conversion to full time employment status of one position which is currently staffed with a temporary contract
employee. The total staffing related tax pressure in 2014 is 1.99%.
All departments were challenged to accommodate these personnel cost pressures, yet
maintain our existing service levels by actually reducing non-personnel expenses where possible, while also reviewing revenue fees and volumetric estimates for non-tax
revenues. The net impact of these reviews on the overall Town controlled budget was a
net operating cost increase of non-personnel costs of $184,800 or 0.54%, bringing the
tax impact of the Town’s administered department costs to only 2.53%, without the
benefit of any new tax revenue from the new properties which are driving the growth component of these noted pressures.
Two factors affected the costs of Fire & Emergency Services totalling 1.55%
Inflation and growth pressures: The Fire & Emergency Services budget is affected by inflation, salary and benefits pressures. The Joint Council Committee for Central York
Fire Services (CYFS) approved a 2014 operating budget which was 7.87% higher than
the 2013 approved budget. This year’s approved CYFS budget adds $381,600 to the
Aurora budget being inflationary and growth costs pressures. Aurora achieved a
savings of $2,000 from its community emergency management program which is required to be in place by the province.
Planned phase-in of costs of 2011’s new crew: From 2011 to 2013, Aurora drew from
our Stabilization Reserve in order to cushion the impact of the significant tax rate
pressure that was created by the addition of a new full-time fire crew. It was previously anticipated that the required draw from Stabilization would be reduced to zero for 2013,
effectively phasing in the new crew over three years. In response to the economic
climate at the time, the Budget Committee decided to split the last portion that was due
to be phased in fully in 2013 over two years, 2013 and 2014. Consequently, the final
March 18, 2014 - 7 - Report No. CFS14-011 piece of this related tax pressure valued at $140,200 is being phased in 2014.
Combined, these two factors represent a total related tax pressure of $519,800 or 1.55%.
Library Services funding increases by 3.79% from 2013, adding 0.37% to tax
pressure
The Library Board originally brought forward a budget funding requisition of $3,424,200, being $110,700 or 3.34% higher than last years’ funding from the tax base. This
amount was increased by a further $15,000 to $3,439,200 in order to reflect a
previously unanticipated employee benefits pressure which arose subsequent to the
Library board’s initial funding requisition submission to the Town. The Town of Aurora
Council does not approve how Library funds are spent, but rather determines the tax funding allocation for library services each year. The net result is an increase in Library
funding over 2013 of $125,700 resulting in a 0.37% tax rate pressure.
Growth Tax Revenues – 1.63% tax rate pressure relief due to taxes from new development
During the course of 2013, new construction and other development activities have
resulted in new assessment value being added to the community representing an
estimated 1.63%, or $547,000 in tax revenue growth. This growth amount does not
stem from the phase-in of reassessment adjustments for individual properties. This additional growth revenue reduces the combined tax pressure of the foregoing budget
changes by 1.63%.
Described above, the total costs to run Aurora today have increased by $951,900,
requiring a tax rate increase of 2.83%.
Preparing for the Future Aurora
Increased Contributions to Capital: 0.62% tax rate pressure
In June, 2013, Council received for information an updated 10 Year Capital Investment
Plan. This Plan outlined expected and required capital investments separately for the
repair and replacement of existing infrastructure, investment in new infrastructure to meet the needs of growth of the community, as well as for investment in major studies
or other projects that are required from time to time by the Town. The 10 Year Plan
demonstrated that the existing reserves for infrastructure renewal require annual
increases to the tax sourced contributions. The Plan outlined that a 0.6% of tax levy
increase annually for 10 years should bring the annual contribution to a sustainable level moving into the future.
To improve the accountability for managing scarce capital funding, each asset manager
has been internally apportioned a pro rata share of this scarce capital funding. This
strategy ensures that only assets that are at risk of impacting community service levels are brought forward for capital renewal funding.
March 18, 2014 - 8 - Report No. CFS14-011 Reduced reliance on Hydro Reserve Fund interest for day to day operations: 0.30% tax
rate pressure
In late 2012, Council agreed to again work toward reducing the annual budgetary
reliance on the interest earned from the Hydro Reserve Funds as a source of revenue
to mitigate tax pressures in the operating budget. For 2014, operational reliance was
reduced by a further $100,000 moving from $500,000 in 2013, to $400,000 of interest reliance.
Overall, the 2014 Operating Budget requires an additional $1,259,900 to be raised from
the tax levy. This represents a 3.75% tax rate increase.
3-YEAR OPERATING BUDGET OUTLOOK
As part of the 2014 Operating Budget process, each department was asked to identify any items of note which are expected to have an operating impact on the 2015, 2016 or
2017 budget years. Using this information, and making informed projections of
assessment growth revenue, inflation, infrastructure pressures, and other budget
drivers, Finance has prepared a three year outlook. The following chart outlines the
expected tax rate pressures in each separate year, with the assumption that the tax pressure of the prior year was approved.
Key pressures in 2015 which will be evaluated during 2014 include proposed new position additions, a reduced reliance on supplemental tax and Hydro Fund Interest
revenues, the onset of operating costs for the newly renovated Aurora Family Leisure
Complex (AFLC) scheduled to re-open in late 2014, as well as other inflationary
pressures. The year is also expected to see an increase in Planning Application Fees
as the work on the 2C lands around St. John’s Sideroad and Leslie Street moves past the planning stages and into the construction phases which is expected to provide some
tax pressure relief in 2015. Building permit revenues do not impact tax rates due to
March 18, 2014 - 9 - Report No. CFS14-011 regulations from the Province.
CAPITAL BUDGETS
On December 17, 2013, prior to the commencement of discussions on the Operating
Budget, Council approved the recommendations arising from Budget Committee’s
review of the 2014 Capital Budget. The capital budget was presented in the following three components in recognition of the fundamental differences in funding sources thus
allowing for a more focussed examination:
- Repair and Replacement Infrastructure Capital
- Growth and Other New Infrastructure Capital
- Major Studies and Other Non-Infrastructure Projects
Through the adoption of the concept of a “Cash to Capital” reserve allocation from the
tax levy, and the internal funding of capital coming from this resultant “infrastructure”
and other reserves, there is no longer a direct tax impact arising from the capital budget.
As such, the Budget Committee recommended capital budget is driven by asset need
rather than impact on taxes. A number of projects have been noted in the schedules as “approved subject to further report from staff”. These projects have been approved in
principle, yet Council has asked staff to provide additional information prior to any
financial commitment for the project taking place. Where a satisfying report to Council
has already been presented subsequent to Council’s capital approval, the item is so
noted in the attachments to this report.
Repair and Replacement Infrastructure Projects - $8.1 million approved for
investment in existing infrastructure The proposed Repair and Replacement Capital Budget for 2014 represents a gross cost of $8,138,100, funded mainly from capital reserves including the specific R & R
reserves. The program includes restoration work to roads, water lines, sewer lines,
storm water management systems, pavement and hardscaping, some fleet vehicle and
equipment replacement, various park fixture repairs and/or replacement; as well as some town facility work. Other projects, such as the reconstruction of part of the ACC Parking Lot and the rehabilitation of a culvert on Yonge Street are planned for design
work to be done in 2014, with construction to be considered in the 2015 budget process.
Management has confirmed that they have the resource capacity to deliver the
proposed capital program. Management have also confirmed that these are their priority projects in light of the new allocation of R&R reserves by asset group, and the asset managers agree with the limited submissions. Attachment 6 outlines the approved
Repair and Replacement Capital program by project.
March 18, 2014 - 10 - Report No. CFS14-011 Growth and Other New Infrastructure Projects - $1.2 million investment approved for new capital additions
The proposed Growth and New Capital Budget represents a gross cost of $1,161,400,
to be funded from various town reserves. This capital program includes funding for the
construction of new sections of sidewalk and/or illumination in multiple town locations.
Also, funding is planned in support of the Town’s Community Improvement Plan and the new Queen’s Jubilee Park Accessible playground. In addition, funding has been
allocated toward the purchase of Records & Information and Human Resource
management systems, among other small projects. Attachment 7 outlines the approved
Growth and New Capital program for 2014.
Major Studies and Other Projects - strategic investments approved for $230,000
The proposed Major Studies Capital Budget represents a gross cost of $230,000. The
plan includes six items, a N6 Shared Service Study, Tree Inventory Update, Employee
Engagement Survey, an update of the Town’s Strategic IT Plan and a Study of Aurora’s Promenade North. Attachment 8 outlines the approved Major Studies and Other Projects program for 2013.
Ten Year Capital Plan and financial forecast is continuously updated
In June 2013, staff presented an updated consolidated 10 year capital plan and funding
proposals for review. This plan is continuously updated and used by the managers responsible for the condition and renewal of our existing assets and planning our future
asset investments. The 10 Year Capital Plan will be updated in early 2014. The June
2013 version of the Plan is available for public reference on the Town’s website.
2014 BUDGET RECOMMENDATION Overall, the Budget Committee recommends a 2014 Operating Budget which presents a
proposed operational services bundle requiring an additional $1,259,900 to be raised
from the tax levy. This represents a 3.75% tax rate increase which is required in order
to fund new and existing services and initiatives.
Residential tax bill Impacts can be quantified.
The 2014 Draft Operating Budget proposes a 3.75% tax rate increase on the Town
portion only of the tax billing. This year’s 3.75% increase applies to all classes of
property, but only to the Town’s share of the 2014 tax billing. For reference, Attachment
10 outlines graphically the Aurora tax rate changes since 2001.
For 2014, the Region of York has approved a net effective tax rate increase of 1.54%,
applied to their share of the tax billing only.
The province's education rate is designed to be dollar neutral to the taxpayer despite
their assessment increases. For 2014, the 2013 education rate of 0.212% has been
reduced to remain revenue neutral with the higher assessment values.
March 18, 2014 - 11 - Report No. CFS14-011 When considering the budget changes for the Town and the Region, together with the
revenue neutral change to the education tax rate, staff estimate the effective taxpayer impact to be a 1.99% increase on their overall residential tax billing. This increase
applies to properties which experienced the average reassessment change from 2013
to 2014. Those properties with a higher than average reassessment change will
experience tax increases higher than 1.99%, while those with lower changes will see
lower tax increases.
Budget Binder of details to be reissued
Staff are in the process of updating the entire budget binder of details which was
previously circulated to members of Budget Committee at the beginning of budget
deliberations. The update will reflect all changes to budgets and updates to 2013 actuals and will be circulated to all existing binder holders. Copies of the Budget Detail
Binder will be available for inspection by the public at the Clerk’s Counter on the Second
Floor, the Access Aurora Counter on the Ground Floor of Town Hall, and at the Aurora
Public Library.
The Town’s website will be updated shortly to reflect any key 2014 budget highlights.
Once the detailed binder material is completed, that too will be posted under the Budget
section of the Town’s website.
LINK TO STRATEGIC PLAN
Approval of the 2014 Operating Budget provides funding support and approval for all
initiatives, services and operations of the Town, all of which support and advance the
Strategic Plan objectives. Overall, the budget leads to improving the quality of life of the
community we serve.
ALTERNATIVE(S) TO THE RECOMMENDATIONS
1. General Committee or Council may make any changes to the budget as deemed
appropriate prior to its final approval.
FINANCIAL IMPLICATIONS
The approval of the 2014 Operating Budget will provide the necessary funding for
approved Town programs, services and operational needs for the year.
CONCLUSIONS
In order to fund the needs of the Town in 2014, the total 2014 Operating Budget
requires an increase in tax levy from 2013 of $1,259,900 for a total Municipal Tax Levy of $34,822,700. This results in a tax rate increase of 3.75%. Council previously
approved the three 2014 capital budgets totalling $9,529,500. The Water, Wastewater
and Stormwater utility services budgets and rates have already been approved under
report IES14-007 on January 20, 2014.
Town of Aurora Attachment 1
2014 Operating Budget
BUDGET COMMITTEE CHANGES
Residential Commercial
STARTING POINT - CAO's draft budget January 11, 2014 =3.77 % 2.00%1.13%
1 Jan. 20 CLS 15,700 1,281,591 0.05 % 3.82 % 2.02%1.14%
2 Jan. 11 IES (71,715) 1,209,876 (0.22 %) 3.60 % 1.94%1.10%
3 Jan. 11 IES (75,830) 1,134,046 (0.22 %) 3.38 % 1.86%1.05%
4 Jan. 13 PRS 19,000 1,153,046 0.06 % 3.44 % 1.88%1.07%
5 Jan. 20 CR&E 100,000 1,253,046 0.29 % 3.73 % 1.99%1.12%
6 Jan. 28 ACS Increase in Annual Grant Funding 7,000 1,260,046 0.02 % 3.75 % 1.99%1.13%
7 Jan. 28 AHS 10,000 1,270,046 0.03 % 3.78 % 2.00%1.13%
8 Feb. 10 CLS/IES 75,100 1,345,146 0.23 % 4.01 % 2.09%1.18%
9 Feb. 14 All 120,400 1,465,546 0.36 % 4.37 % 2.21%1.25%
10 Feb. 14 Corp. Accts (100,000) 1,365,546 (0.30 %) 4.07 % 2.11%1.19%
11 Feb. 14 PRS (16,700) 1,348,846 (0.05 %) 4.02 % 2.09%1.18%
12 Feb. 14 COUNCIL (20,000) 1,328,846 (0.06 %) 3.96 % 2.07%1.17%
13 Feb. 14 W/WW (10,000) 1,318,846 (0.03 %) 3.93 % 2.06%1.16%
14 Feb. 14 Corp. Accts (36,500) 1,282,346 (0.11 %) 3.82 % 2.02%1.14%
15 Feb. 14 All (22,000) 1,259,946 (0.07 %) 3.75 % 1.99%1.13%
(5,945) (0.02 %)
Estimated
Tax Rate Share Weighted Share Weighted
Pressure of Tax Rate of Tax Rate
(from above)Tax Bill Pressure Tax Bill Pressure
3.75%35.3 % 1.32%20.0 % 0.75%
1.54%43.5 % 0.67%24.6 % 0.38%
0.00%21.2 % 0.00%55.4 % 0.00%
1.99%1.13%
CALCULATION OF IMPACT ON OVERALL TAX BILL
RESIDENTIAL COMMERCIAL
Education
Region of York
Town of Aurora
Increase in Health Benefits ( including related Library related ask of $15K )
CLS Re-organization Savings
Deferral of the PT to FT conversion of Special Event Asst. to May 31st
Utilization of Council 2014 Contingency Budget
Increase in AHS/Museum Grant Funding from $50 to $70K; $10K of the total
$20K increase to be funded from Council Contingency Account
Bill Additional Portion of Insurance Increase to W/WW & Storm
Stabilize Jan to March portion of increased GWL rates prior to Sun Life
Rates becoming effective with Stabilization Reserve draw
Program Savings
Change to Operating
Budget
Additional Postage Charge Costs
Remove planned Supervisor Fixed & Mobile Assets
Additional Part Time Salary Funding for Senior Cenre
Reduce Reliance on Hydro Reserve Fund
Deferral of 3 seasonal Snow Removal Crew pending report back to council
Increase in Liability Insurance Premiums
1,265,891
A D J U S T M E N T S R E S U L T S
Ref.Date of
Decision Department I T E M
Running
Revised
Budget Increase
Impact on Town
Rate
Running
Town
Rate Pressure
Effective Combined Tax Impact
Town of Aurora
2014 Operating Budget
OPERATING BUDGET - SUMMARY BY DEPARTMENT
2013 2014 New 2014 Tax
Shown in $,000's Approved Base Items Recommended Dollar PressureBudgetBudgetfor 2014 Budget Change Change
(adjusted) favourable / (unfavourable)
Gross Expenses
Council 594.6$ 603.5 21.1 624.6$ (30.0)$ (0.09 %)
Chief Administrative Office 1,840.0$ 1,870.0 3.6 1,873.6$ (33.6) (0.10 %)
Legal & Legislative Services 2,546.6$ 2,513.0 83.5 2,596.5$ (49.9) (0.15 %)
Election 2014 62.5$ - 262.5 262.5$ (200.0) (0.60 %)
Corporate & Financial Services 2,904.3$ 2,960.5 7.5 2,968.0$ (63.7) (0.19 %)
Building & By-law Services 3,460.3$ 3,584.5 51.5 3,636.0$ (175.7) (0.52 %)
Planning & Development Services 2,023.8$ 1,992.6 6.0 1,998.6$ 25.2 0.08 %
Infrastructure & Environmental Services 11,675.0$ 11,892.9 21.1 11,914.0$ (239.0) (0.71 %)
Parks & Recreation 7,868.2$ 7,863.0 60.7 7,923.7$ (55.5) (0.17 %)
Corporate Expenses 6,818.3$ 7,390.8 7.0 7,397.8$ (579.5) (1.73 %)
Fire & Emergency Operations 8,456.0$ 8,454.0 381.6 8,835.6$ (379.6) (1.13 %)
Funding Provided for Library Operations 3,313.5$ 3,424.2 15.0 3,439.2$ (125.7) (0.37 %)
Gross Expenditures 51,563.1$ 52,811.5$ 921.1$ 53,470.1$ (1,907.0)$ (5.68 %)
Gross Revenues
Council (13.5)$ (13.5)$ -$ (5.0)$ (8.5)$ (0.03 %)
Chief Administrative Office -$ - -$ -$ - -
Legal & Legislative Services (67.0)$ (79.5) (87.0)$ (166.5)$ 99.5 0.30 %
Election 2014 -$ - (180.0)$ (180.0)$ 180.0 0.54 %
Corporate & Financial Services (130.0)$ (119.0) -$ (119.0)$ (11.0) (0.03 %)
Building & By-law Services (2,540.8)$ (2,518.2) -$ (2,518.2)$ (22.6) (0.07 %)
Planning & Development Services (1,314.7)$ (1,577.9) -$ (1,577.9)$ 263.2 0.78 %
Infrastructure & Environmental Services (1,003.1)$ (1,129.3) -$ (1,129.3)$ 126.2 0.38 %
Parks & Recreation (5,493.9)$ (5,395.5) -$ (5,395.5)$ (98.5) (0.29 %)
Corporate Revenues (7,984.3)$ (7,555.9) -$ (7,555.9)$ (428.4) (1.28 %)
(18,547.4)$ (18,388.9)$ (267.0)$ (18,647.4)$ 100.0$ 0.30 %
Taxation - 2013 (33,015.8) (33,015.8) - (33,015.8)$
Taxation - Growth from New Assessmen - - (547.0) (547.0)$ 547.0
Taxation - Increase for 2014 - - -$
Gross Revenues (51,563.12)$ (51,404.6)$ (814.0)$ (52,210.2)$ 647.0$ 1.93 %
Net Expenditures/(Revenues)
Council 581.1$ 590.0$ 21.1$ 619.6$ (38.5)$ (0.11 %)
Chief Administrative Office 1,840.0 1,870.0 3.6 1,873.6 (33.6) (0.10 %)
Legal & Legislative Services 2,479.6 2,433.5 (3.5) 2,430.0 49.6 0.15 %
Election 2014 62.5 - 82.5 82.5 (20.0) (0.06 %)
Corporate & Financial Services 2,774.3 2,841.5 7.5 2,849.0 (74.7) (0.22 %)
Building & By-law Services 919.5 1,066.3 51.5 1,117.8 (198.3) (0.59 %)
Planning & Development Services 709.1 414.7 6.0 420.7 288.4 0.86 %
Infrastructure & Environmental Services 10,671.9 10,763.6 21.1 10,784.7 (112.7) (0.34 %)
Parks & Recreation 2,374.3 2,467.5 60.7 2,528.2 (154.0) (0.46 %)
Corporate Expenses & Revenues (1,166.0) (165.1) 7.0 (158.1) (1,007.9) (3.00 %)
Fire & Emergency Operations 8,456.0 8,454.0 381.6 8,835.6 (379.6) (1.13 %)
Funding Provided for Library Operations 3,313.5 3,424.2 15.0 3,439.2 (125.7) (0.37 %)
33,015.8$ 34,422.6$ 654.1$ 34,822.7$ (1,806.9)$ (5.38 %)
Taxation (33,015.8)$ (33,015.8)$ (547.0) (33,562.8) 547.0$ 1.63 %
NET 0.0$ 1,406.9$ 107.1$ 1,259.9$ (1,259.9)$ (3.75 %)
Attachment 2
Attachment 3
Town of Aurora
2014 Operating Budget
GRAPHIC SUMMARY OF TAX PRESSURE FOR 2014
FuturePreparing for the
Today
Running Aurora
Community Safety
Today
1.28%
1.55%
Tax Increase
0.92%
Total Town Share
3.75%
•Aurora Combined Tax Bill Increase is
1.99% for residential properties
(estimated)
•Infrastructure Sustainability Funding •Long term plan to keep our Town in good condition & working well •Reducing our reliance on interest earned from Hydro Sale proceeds, while protecting the purchasing power of those
•Improving Services, Meeting Growth
•Increased insurance, employee benefit &
postage costs
•Central York Fire Services
•Emergency Preparedness
Town of Aurora Attachment 4
2014 Operating Budget
DETAILED OPERATING PRESSURES FOR 2014
1.RUNNING TODAY'S TOWN OF AURORA
A. TOWN PROVIDED SERVICES
Salaries & Wages:
Cost of Living Allowance and Step Increases on existing positions (174,400)
Benefits:
Rate Increase - OMERS Pension (53,800)
Rate Increase - Other Benefits (311,300)
Benefits increases on COLA and Step Increases (6,800) (371,900)
2014 Annualization of Approved Postions ( part year in 2013 ):
Town Staff (28,500)
Converted and New Position Requests (see Schedule 5 ):
One new & one PT Conversion to Full Time (63,300)
New contracts and part time staffing requests (30,500) (93,800)
Total Staff Related Pressures (668,600)
Changes to all Other:
Prior Year Commitments (536,200)
Phased in Corporate Overhead Cost Allocation to Building Services Reduction (104,500)
All other expenses net of other revenue 455,900 (184,800)
TOTAL TOWN PROVIDED SERVICES (853,400) (0.89%)
B. SERVICES PROVIDED BY OTHERS:
- Central York Fire Services (CYFS):
Aurora's Share of CYFS 2014 Budget Increase (381,600)
Emergency Preparedness Program Savings 2,000
Aurora's Planned Decrease in Reserve Draw for Fire Support (140,200) (519,800) (1.55%)(0.55 %)
- Library Operational Funding:(125,700) (0.37%)(0.13 %)
TOTAL SERVICES PROVIDED BY OTHERS (645,500) (0.68%)
C. GROWTH TAXES FROM NEW PROPERTIES:
Growth in Taxes From New Properties 547,000 1.63%0.58 %
TAX PRESSURES OF RUNNING TODAY'S AURORA (951,900) (1.00%)
2.PREPARING FOR THE FUTURE AURORA
Additional Contribution to Reserves for the Maintenance of
the Town's Infrastructure Assets (208,000)
Reduction of operational reliance on Hydro Reserve Interest (100,000) (308,000) (0.92%)(0.32 %)
NET TAX PRESSURE INCREASE (1,259,900) 1.32%
(1.99%)
(0.54%)
(2.53%)
F a v o u r a b l e / ( U n F a v o u r a b l e )
C h a n g e
percentage = tax pressure
Estimated
Impact to Blended Res. Tax Rate
(3.75%)
(2.83%)
(1.92%)
Changes to Full-Time Equvalent Staffing Costs:
(1.11%)
(0.08%)
(0.28%)
(0.52%)
Town of Aurora Attachment 5
2014 Operating Budget
CONVERTED AND NEW POSITIONS IN 2014 BUDGET
2014 Budget Requests
Full-Time
Net Cost Complement
2014 Base Full-Time Compliment 205
FULL-Time Staffing - Conversion Requests
Licensing & Court Administrator 49,855 1
Position will be funded 20% from Building and costed for 7 months (9,970)
Special Event Assistant - Conversion to Full Time 36,315 1
Position request offset by a reduction in part-time and costed for 7 months (12,908)
86,170$ (22,878)$
Net Full-Time 63,292$ 207
CONTRACT Staffing - Requests
Additional Part Time support of Senior Cenre 19,000$ -
Administrator of Construction Projects 62,270
Position will be funded 100% from Engineering Fees and costed for 8 months (62,270)
Elections Coordinator 83,610
Costed for 12 months and offset by Reserve Contribution (83,610)
Customer and Legislative Summer Students 11,500
176,380$ (145,880)$
Net Part-Time 30,500$
Total Net 2014 Budget Requests 262,550$ (168,758)$ 93,792$
Staffing - Conversion Requests Not Approved
Supervisor of Fixed & Mobile Assets 75,830
Costed for 8 months
3 Roads Seasonals
Costed for 6 months each 71,715$
Total 147,545
D o l l a r s
Gross Cost Offsets
Attachment 6
Town of Aurora
2014 Capital Budget
REPAIR & REPLACEMENT PROJECTS
14047 Computer & Related Infrastructure CFS (73,200)73,200
43044 Bulk Water Meter Installation CFS (180,000)180,000
72167 Expand Referees Room at SARC Facilities (40,000)40,000
72177 ACC - Fire and Security Panels Facilities (20,000)20,000
72197 Town Hall Access Control System Facilities (20,000)20,000
72199 Library Entrance Doors Facilities (95,000)95,000
34237 Replacement of Asphault Box (#135)Fleet (60,000)60,000
71098 Dump (#252)Fleet (60,000)60,000
71123 Tow Behind Wide Area Mower Fleet (95,000)95,000
31096 Recon - Bluegrass Drive, Steeplechase Ave, Woodsend Cres IES (137,700)137,700
31099 Reconstruction - Tyler Street & George St IES (140,200)140,200
31103 Design - Centre St (Yonge to Walton Dr)IES (28,000)28,000
31112 Reconstruction - Industrial Pkwy South IES (89,700)89,700
31139 Intersection - Wellington/ John West Way IES (112,100)112,100
34609 Sidewalk & Blvd - Gurnett (Harrison to Cousins)IES (168,200)168,200
34710 Street Light Poles St John's IES (84,100)84,100
42052 Channel Improvements - Child Drive IES (44,900)44,900
42055 Machell Park Storm Outfall IES (112,100)112,100
43029 Structural Watermain Relining IES (392,500)392,500
73117 Parks Pathway System - various replacements P & R (55,000)55,000
73152 Bowling Green Perimeter Border Repair P & R (10,000)10,000
73153 Replace Shade Structure Hamilton P & R (35,000)35,000
73154 Playground Surface Restoration P & R (40,000)40,000
73160 Emerald Ash Borer Management Program P & R (243,000)243,000
73194 Case Woodlot Retaining Wall (trail repair)P & R (25,000)25,000
73197 Fencing - Diamonds 1/2/3 P & R (75,000)75,000
73199 Field Drainage - Diamonds/ Soccer P & R (35,000)35,000
73205 Playground Replacement - Khamissa Park P & R (85,000)85,000
73225 Splash Pad Surface Upgrade - Ada Johnson Park P & R (30,000)30,000
74007 AFLC Fitness Equipment Replacement P & R (40,000)40,000
81013 Plotter Equipment PDS (10,000)10,000
72133 ACC - Re-pave Lot Facilities (75,000)75,000
42053 Rehabilitation of Culvert on Yonge St IES (56,100)56,100
12002 Accessibility Committee Allocation (detail decided by Committee)CLS (100,000)100,000 **
72198 ACC 1 Bench Configuration Facilities (55,000)55,000 **
34160 1/2 Tonne Pick-up (#13) - Replacement Fleet (30,000)30,000 **
71069 1 Tonne Dump Truck Replacement Fleet (60,000)60,000 **
71070 1/2 Tonne Pick-up Replacement Fleet (50,000)50,000 **
71097 Light Industrial Loader to Replace Agricultural Tractor (#221)Fleet (120,000)120,000 **
31079 Recon - Elderberry Tr (part), Springmaple Chase & Houdini
Way IES (1,906,300)1,906,300 **
34709 Street Light Conversion to LED IES (3,000,000)3,000,000 **
73134 Parks/ Trails Signage Strategy Study P & R (50,000)50,000 **
(5,138,100)(3,000,000)8,138,100
Reserve Funding Outside Funding
** Approved subject to further report from staff
Project ID Project Dept Total Cost
Attachment 7
Town of Aurora
2014 Capital Budget
GROWTH & NEW PROJECTS
34610 Sidewalk, Multi-use Trail & Illumination on Leslie St from
Wellington to Don Hillock Dr IES (10,000)10,000
34635 Sidewalk, Multi-use Trail & Illumination on St John's Sdrd -
Bayview to Hwy 404 IES (32,700)32,700
41006 Sanitary Sewer on Leslie St to Service 2C Lands IES (58,300)58,300
12028 HRIS/Payroll System CAO (80,000)80,000
73233 Natural Ice Rink Cells P & R (54,000)54,000
73151 Pathway Lighting - Lambert Willson to Optimists P & R (48,000)48,000
34608 Sidewalk on Golf Links IES (123,400)123,400
14035 Records & Information Management CLS (250,000)250,000 **
73085 Arboretum Development P & R (50,000)50,000 **
71089 3/4 Tonne Pick-up Fleet (60,000)60,000 **
81015 Community Improvement Plan PDS (140,000)(80,000)220,000 **
73252 Queens Jubilee Park Accessible Playground P & R (150,000)150,000 **
12029 Streaming Sub-Committees Live Via Internet CAO (25,000)25,000 **
(1,081,400)(80,000)1,161,400
Total Cost
** Approved subject to further report from staff
Project ID Project Dept Reserve Funding Outside
Funding
Attachment 8
Town of Aurora
2014 Capital Budget
STUDIES & OTHER PROJECTS
12027 N6 Shared Service Study CAO (10,000)20,000
73148 Update Tree Inventory P & R (32,700)10,000
12003 Employee Engagement Survey CAO (58,300)20,000 **
12024 Resident Survey CAO (80,000)30,000 **
14063 IT Strategic Plan CFS (54,000)80,000 **
81014 Special Study - Aurora Promenade North PDS (48,000)70,000 **
(283,000)- 230,000
Total Cost
** Approved subject to further report from staff
Project ID Project Dept Reserve Funding Outside
Funding
Town of Aurora Attachment 9
2014 Operating and Capital Budget
CONTINUITY of RESERVES & RESERVE FUNDS - Estimate
Budgeted
Revenue
( + )
Budgeted
Expenditures
( - )
Closing
Balance As of
Mar. 31, 2014
A. Reserves for Existing Infrastructure
Infrastructure Sustainability (Repair & Replacement)
Tax Rate Funded
Roads & Related R & R $2,113.0 $1,187.9 $363.5 $2,937.4
Federal Gas Tax Reserve $666.9 $1,461.0 $2,134.6 ($6.7)
Facilities R & R $523.1 $884.8 $345.0 $1,062.9
Fleet R & R $744.5 $517.0 $475.0 $786.5
Parks & Rec R & R $1,190.3 $422.9 $440.0 $1,173.2
Information Technology R & R $47.5 $121.7 $73.2 $96.0
Emerald Ash Borer Remediation R & R $100.3 $235.0 $243.0 $92.3
Discretionary R & R $148.1 $70.5 $110.0 $108.6
Total Tax Rate Funded Reserves $5,533.7 $4,900.8 $4,184.3 $6,250.2
Utility Rate Funded
Water ($1,527.9)$1,300.0 $572.5 ($800.4)Wastewater ($3.5)$500.0 $624.0 ($127.5)
Stormwater $2,615.0 $1,000.0 $490.6 $3,124.4
Total Utility Rate Funded Reserves $1,083.6 $2,800.0 $1,687.1 $2,196.5
Library Managed R & R $563.7 $130.0 $112.0 $581.7
Church St School $1.4 $0.0 $0.0 $1.4
War Memorial $3.5 $0.0 $0.0 $3.5
St Max Artificial Turf - Special $63.9 $31.5 $0.0 $95.4
Total Infrastructure Sustainability Reserves $7,249.8 $7,862.3 $5,983.4 $9,128.7
B. Reserves for New Infrastructure
Development Charges Reserve Funds
General Government ($1,130.2)$178.5 $402.0 ($1,353.7)
Fire Services $654.3 $98.5 $0.0 $752.8
Parks Dev. & Fac.($6,714.5)$663.5 $366.0 ($6,417.0)
Indoor Recreation ($9,504.0)$1,388.9 $1,883.9 ($9,999.0)
Library $988.4 $300.9 $399.5 $889.8
IES Admin & Fleet $2,666.3 $196.5 $0.0 $2,862.8Roads & Related ($676.8)$1,103.6 $166.1 $260.7
Water System ($885.0)$520.9 $0.0 ($364.1)Sanitary Sewer $1,558.4 $363.3 $58.3 $1,863.4
Total Development Charges ($13,043.1)$4,814.6 $3,275.8 ($11,504.3)
Dev/Sale of Municipal Lands ($1,570.7)$0.0 $0.0 ($1,570.7)
Cash in Lieu of Parkland $12,580.9 $0.0 $40.0 $12,540.9
Cash in Lieu of Parking $74.8 $0.0 $0.0 $74.8Parks Master Plan $583.6 $0.0 $10.0 $573.6
Growth & New Capital Reserve $1,254.9 $574.2 $518.0 $1,311.1Studies & Other Capital Reserve $340.0 $70.9 $78.0 $332.9
Green Initiatives $22.8 $20.0 $0.0 $42.8
Total New Infrastructure Reserves $243.2 $5,479.7 $3,921.8 $1,801.1
C. Reserve Funds for Special Purposes
Stabilization
Estimated
Dec. 31, 2013
Balance
2014
Shown in $000's
Tax Rate Stabilization $2,550.8 $0.0 $606.7 $1,944.1
Election Reserve $212.2 $0.0 $180.0 $32.2WSIB$1,221.8 $0.0 $85.0 $1,136.8
Debt Deferral (internal borrowing) Library ($1,776.9)$289.5 $0.0 ($1,487.4)
Total Stabilization Reserves $2,207.9 $289.5 $871.7 $1,625.7
Unearned Revenue
Building Department - Bill 124 $203.0 $0.0 $256.9 ($53.9)Engineering Inspections Fees $2,236.8 $0.0 $270.7 $1,966.1
Landscape Inspection Fees $349.6 $0.0 $19.9 $329.7
Total Stabilization Reserves $2,789.4 $0.0 $547.5 $2,241.9
Special Purposes Accounts
Whitwell Donation for Downtown $142.7 $0.0 $140.0 $2.7
Arts & Culture $64.1 $0.0 $10.0 $54.1
Fire Service Training $111.0 $0.0 $0.0 $111.0
Library Donation & Bequests $28.0 $0.0 $0.0 $28.0
Heron Annuity (Parks and IES)$49.4 $0.0 $0.0 $49.4
Zoning Bylaw Review $0.2 $0.0 $0.0 $0.2
Accessibility Advisory Committee $0.5 $0.0 $0.0 $0.5
Heritage Fund $0.0 $50.0 $0.0 $50.0
Parks & Rec Participant Sponsorship $5.4 $0.0 $0.0 $5.4
Total Stabilization Reserves $401.3 $50.0 $150.0 $301.3
Total Special Purposes Reserves $5,398.6 $339.5 $1,569.2 $4,168.9
D. Other Reserve Funds
Council Discretionary Reserve Fund $1,034.0 0.0 0.0 $1,058
Hydro Sale Investment Reserve Fund $33,752.7 0.0 400.0 $34,145
Total Reserve Funds $34,786.7 0.0 400.0 $35,202.9
TOTAL RESERVES & RESERVE FUNDS $47,678.3 $13,681.5 $11,874.4 $50,301.6
Town of Aurora
2014 Operating Budget
HISTORY OF AURORA TAX RATE INCREASES
Attachment 10
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
9.00% 8.80%
6.00%
5.50%
7.90% 7.90%
4.30%
5.00%
1.80%
2.82%
3.79%
4.77%
3.42% 3.75%