Final 2015 Approved Operating Budget Report COUNCIL REPORT No. CFS15-018
SUBJECT: 2015 Final Operating Budget Approval
FROM: Dan Elliott, Director, Corporate & Financial Services - Treasurer
DATE: May 26, 2015
RECOMMENDATIONS THAT Report No. CFS15-018 be received; and
THAT the 2015 Operating Budget summarized in Attachment #2 which reflects all
revisions recommended for approval by the Budget Committee, resulting in a total tax levy of $36,996,300 and a total expenditure plan of $56,020,700, generating a 3.91% Town of Aurora share tax increase, which results in an
estimated 2.69% 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 four (4) (two of which have already been preapproved by Council for hiring) and reduced by one
(1) to 211 (excluding Library Board and Central York Fire Services staff) as
presented in Attachment #6 and funded in the 2015 Operating Budget; and
THAT a general wage increase of 2.0% effective April 1, 2015, be applied to the Salary Schedule for Full-time Permanent Non-Bargaining Unit Positions, and to
the Rate Schedule for Other-Than-Continuous-Full-time Non-Bargaining Unit
Positions, both being Attachments to Policy #7; and
THAT By-law Number 5729-15 be adopted to set 2015 tax rates and payment dates.
PURPOSE OF THE REPORT To present for formal adoption the 2015 Operating Budget as recommended for
approval by the Budget Committee on May 4, 2015.
BACKGROUND
The Town prepares three distinct budgets each year: The Capital Budget, the Water
and Sewer utilities budget, and the Operating Budget. Council has already approved the
2015 capital and utilities budgets. This report focuses only on the 2015 operating budget for the Town of Aurora.
TOWN OF AURORA
May 26, 2015 - 2 - Report No. CFS15-018 Within the annual operating budget for Aurora, there are three distinct components
which must be considered separately.
1. Base Operations budget includes all services, programs and activities of the Town
operating departments which are in direct funding control of Aurora Council. This
includes Library operational funding provided to the Aurora Public Library for their
delivery of local services, as well as funding provided under an operating agreement with the Aurora Cultural Centre Board for delivery of cultural services at the Town
owned Aurora Cultural Centre facility. This budget must accommodate increasing
demand for services and resources arising from community growth, as well as
addressing continuing inflationary pressures on the costs of materials, goods,
services and human resources. This budget benefits from growth revenue arising from the increased assessment from community growth.
2. Central York Fire Services is the third distinct component of the Town’s annual
operating budget. This joint, seamless service provides Fire and Emergency response, prevention and education services to the communities of Newmarket and
Aurora in an efficient manner. This collaborative shared services model for fire
services is unique in Ontario. The operations and budget for the shared service is
managed by a Joint Council Committee (JCC) with three representatives from each
Council. Their budget is controlled by JCC, and is ultimately approved by Newmarket. Aurora has influence in the budget through their equal participation on
JCC, as well as being able to provide Newmarket Council with any comments or
suggestions regarding the annual budget prior to Newmarket making their final
approval. The costs of CYFS are shared on a pro-rata type formula, using a four
year weighted rolling average, using shares of assessment value, population and number of calls for services in the calculation.
The cost of Fire and Emergency Services is a significant cost for taxpayers,
representing in excess of 25% of the total Town property taxes. Over the next six
years, operational costs for CYFS costs is expected to increase by just over $8Million, with Aurora’s share of this being estimated at $3.25Million. These costs
arise due to the necessary implementation of Fire Master Plan recommendations,
and the operation of new fire hall to be constructed in the next few years. At 2014
tax rates, this represents over 9% tax increase to residents. Although the exact
timing of the on-lining of these costs is at the control of the JCC, Aurora Council has agreed to phase this tax pressure in over the next six years at a pace of 1.3%
dedicated tax increase just for emergency services. Capital costs for the land,
facility, equipment and truck/apparatus will be funded substantially through
development charges collected from builders of new construction in Town, and will
be shared with Newmarket.
3. The Fiscal strategy component includes strategic financial planning items to
progressively secure a sustainable financial future for the Town of Aurora. Some of
the tax pressure in this area arises from historical underfunding of reserve funds for
May 26, 2015 - 3 - Report No. CFS15-018 the sustainability of the Town’s infrastructure assets. These aging assets deteriorate
over time, and require periodic restoration, rehabilitation or replacement.
The Town has a comprehensive Asset Management Plan and long range capital
planning regimen in place to optimize the service levels provided by these assets
over time at the most cost effective plan of investment. Unfortunately past
underfunding of infrastructure reserves requires incremental tax pressures in current times to bring annual tax funding up to necessary levels to sustain these assets.
This tax pressure is being experienced by every municipality across Canada to
varying degrees. Tax increases necessary in this regard must be considered above
and beyond the tax rate pressures of the Base Operational Budget.
In addition, Council has seen it appropriate to reduce Operating Budget reliance
upon interest income earned by the hydro proceeds reserves. This approximate
$34Million of proceeds has no specific identified purposes, however drawing interest
earned from it is slowly eroding its purchasing power for future use. Small annual
reduction in the amount of interest drawn into the Operating Budget as a revenue source is appropriate to slowly eliminate this unsustainable source of revenue.
COMMENTS
Fiscal Sustainability Index or Service Level Sustainability Index.
The City of Edmonton recently developed a budget indicator they called the “Fiscal
Sustainability Index”. It looks at gross expenditures in the budget, and measures growth
of expenditures relative to the combination of inflationary pressure, and growth of the community (which demands additional operational services and costs).
An index value greater than one suggests:
- that expenditures are growing at an unsustainable level beyond the pressures of
inflation and community growth; or - reflects the impact of increasing service levels to the community; or
- reflects having to catch-up on historical underfunding of municipal needs; or
- some combination of the above.
An index less than one suggests: - that timing of the impact of growth on costs is delayed; or
- the municipality has developed and leveraged operational efficiencies; or
- services have been reduced; or
- some combination of the above.
May 26, 2015 - 4 - Report No. CFS15-018
In the event that services have not been significantly affected, and that no major identifiable efficiency was reported, an index value of less than one suggests:
- significant general cost reductions in delivery of services; or
- funding reductions which may jeopardize the future provision of the expected
service levels.
For this reason, the Fiscal Sustainability Index might be better referred to as the Service
Level Sustainability Index. Index values significantly below one indicate potentially
noticeable service level reductions are being made or will result due to funding
curtailment.
The following table outlines the Town’s Fiscal Sustainability Index values from 2012
through to 2015. Additional research and refinement on this index and its calculations
will be conducted during 2015 for use during the 2016 budget process.
To preserve service levels while attempting to curtail tax rate increase pressures in the budget, rather than focus heavily on cost containment or funding reductions, the
revenue side of the budget needs to be carefully examined to ensure all sources of
revenue are increasing with inflation and with growth in a balance with the expenditure
increases. For 2015, the non-tax revenues for the town are not increasing at a pace
which matches the increase of expenses, causing increased pressure on the tax rate.
0.000
0.500
1.000
1.500
2.000
2.500
2012 2013 2014 2015
Town of Aurora's FSI (2012 to 2015)
Fiscal Strategy Fire Services Base Budget
Target FSI = 1
May 26, 2015 - 5 - Report No. CFS15-018 2015 Operating Budget
Attached to this report are several detailed schedules.
Attachment #1 details the value and tax rate impact of all budget adjustments made by
General Committee reviews of the original staff draft budget. This tracks changes to all
three components together, including Base Operating, Fiscal Strategy and Emergency Services.
Attachment #2 summarizes the combined budget by operating department and by
expenses from revenues. Item x and x totalling $110,000 from Attachment #1 are
included on this schedule under Corporate Expenses, and have not yet been allocated internally to specific departments at time of preparation of this report.
Attachment #3 graphically identifies the three separate components of the budget and
highlights key elements.
Attachment #4 outlines the combined budget, identifying all significant budgetary
changes to allow better understanding of the budget pressures causing tax increases.
Attachment #5 identifies staffing changes recommended or pre-approved for inclusion
during the budget review processes.
Attachment #6 shows a graphical history of the Town’s tax rate increases over the past
number of years for context.
Traditional Municipal Budget structure differs from Financial Accounting
Requirements
Accounting standards and reporting requirements have undergone significant change
since 2009, including the introduction of accounting for tangible capital assets, and their amortization. These new standards, however, do not require that budgets be prepared
on this same, changed basis. The Town of Aurora, like most municipalities, prepared its
2014 budget in the traditional, cash based, balanced budget approach.
The Province of Ontario enacted a regulation (O.Reg. 284/09, s.1.) that allows the exclusion of costs related to amortization expense, post-employment benefits and solid
waste landfill closure and post-closure expenses from a municipality’s annual budgeted
expenses. However, the regulation does require that the municipality report on the
impact of these excluded costs.
May 26, 2015 - 6 - Report No. CFS15-018
The combined operating budget being approved by this report excludes the following costs to the Town:
1. An amount for the 2015 amortization of the Town’s tangible capital assets. The
Town owns $443,584,000 of depreciating capital assets (excluding land), with an
expected 2015 amortization of $10,906,800. (See Attachment #8) In the 2015 Operating, Utilities and Library budgets, transfers to reserves for preservation of
existing infrastructure is included which is short of the expected amortization by
$3,123,000. This amount is often referred to as the Current Year Infrastructure
Deficit or Underfunding. This amount is understated in reality, as it is calculated
using original cost of the assets, rather than factoring the much higher cost of replacing the asset.
This Underfunding is being addressed through the Fiscal Strategy over a long term plan.
2. The current year’s post-employment benefit obligation in relation to eligible
employee early retirement and/or accrued sick leave is estimated to grow by
approximately $3,000 during 2015, creating a related accounting expense. This amount is not included in the combined operating budget of this report as these
future actuarial costs will not be realized in the current year.
(Levy Funded)(Rate Funded)(Self Funded)
Book Value of Owned Assets (Excl. Land)224,537$ 214,951$ 4,096$ 443,584$
Less: Accumulated Amortization (86,670) (57,896) (2,444) (147,010)
Net Book Value 137,867 157,055 1,652 296,574
Add: Land 99,153 - - 99,153
Total Asset Value, As of Dec. 31, 2014 237,020$ 157,055$ 1,652$ 395,727$
2014 Budgetted Contributions in support of Assets (incl. Fire)4,374 2,800 130 7,304
2015 Increase in contributions 180 300 - 480
2015 Budgetted Contributions in support of Asset 4,554 3,100 130 7,784
Estimated 2015 Amortization 6,413 4,054 441 10,907
Current Year Infrastructure Funding Deficit (1,858)$ (954)$ (311)$ (3,123)$
Operating Water &
Sewer Library Total
($000's)
Town of Aurora - 2015 Budget
Infrastructure Funding Deficit
++=
May 26, 2015 - 7 - Report No. CFS15-018
The 2015 budget was prepared on the cash basis of accounting whereby total revenues (including taxation) equal total expenditures, resulting in a “balanced” budget.
Attachment #9 illustrates the differences between the 2015 Budget as prepared (on a
cash basis) to what it would be if prepared under the PSAB guidelines on an accrual
basis budgeting. The schedule shows the Town’s Operating Budget, the Library and the
Water/Sewer Utilities budgets combining for a “Consolidated Municipal Standard Balanced Budget”. This technical required schedule then shows various puts and takes
to identify and reconcile to the expected 2015 Accrual Based PSAB compliant budget.
The accrual basis approach would result in an annual budget surplus before considering
the above noted excluded non-cash items. If these items were included in the 2014
Budget, the result would be a $2.222Million deficit for the year.
Detailed Budget Binder to be updated and 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 2014
actuals and will be circulated to all existing binder holders. A copy of the Budget Detail
Binder will be available for inspection by the public upon request at 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 2015 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 2015 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. Council may make any changes to the budget as deemed appropriate prior to its
final approval.
May 26, 2015 - 8 - Report No. CFS15-018 FINANCIAL IMPLICATIONS
The approval of the 2015 Operating Budget will provide the funding for approved Town
programs, services and operational needs for the year.
Council previously approved the three 2015 capital budgets totalling $17,932,600. The
Water, Wastewater and Stormwater utility services budgets and rates have also already been approved under report IES15-022 on March 31, 2015.
The total approved expenditures for 2015 are as follows:
Operating Budget expenditures (this report) $56,020,700 Utilities Operations budget expenditures 18,392,000
2015 Capital Budget approvals (incl. conditional approvals) 17,932,600
$92,345,300
In addition to the above, a recent report to Council showed an outstanding amount of $27,956,900 of approved funding remaining available to complete open capital projects
from 2014 and prior.
CONCLUSIONS
In order to fund the needs of the Town in 2015, the total 2015 Operating Budget
benefits from $782,100 of new growth revenue, however still requires an increase in tax
levy of $1,391,500 for a total Municipal Tax Levy of $36,996,300. This results in a tax
rate increase to residents on average of 3.91% on the Town portion of the tax bill. When combined with the Region and School taxes, it is estimated the residential tax bill in total
will increase by 2.69% on average. Some differences will occur due to differing
assessment value changes for individual properties. Draft By-law #5729-15 necessary
to set actual tax rates is included in the By-laws section of tonight’s agenda.
PREVIOUS REPORTS
CFS15-003: Draft 2015 Business Plan with Operating and Capital Budgets – Overview
Report for Committee Review, January 26, 2015.
CFS15-007: 2015 Final Capital Budget Report for Council Review & Approval, February
24, 2015
ATTACHMENTS
Attachment # 1 – Budget Committee Changes made to Draft Budget
Attachment # 2 – 2015 Operating Budget – Summary by Department
Attachment # 3 – Tax Rate Pressures Summary (graphical)
Town of Aurora Attachment 1
2015 Operating Budget
BUDGET COMMITTEE CHANGES
Residential Commercial
STARTING POINT - Draft Budget, As of January 27, 2015 =4.96 % 3.06%1.73%
1 Jan. 26 CYFS 202,100 1,969,800 0.57 % 5.53 % 3.27%1.85%
2 Mar. 2 AHS 10,000 1,979,800 0.03 % 5.56 % 3.28%1.86%
3 Mar. 2 ACC 10,000 1,989,800 0.03 % 5.59 % 3.29%1.86%
4 Mar. 9 Corporate (9,900) 1,979,900 (0.03 %) 5.56 % 3.28%1.86%
5 Mar. 9 Various (167,700) 1,812,200 (0.47 %) 5.09 % 3.11%1.76%
6 Mar. 23 PRS Purchase of equipment for a community Rebound Class 18,000 1,830,200 0.05 % 5.14 % 3.13%1.77%
7 Mar. 23 PRS (18,000) 1,812,200 (0.05 %) 5.09 % 3.11%1.76%
8 May. 4 PDS (100,000) 1,712,200 (0.28 %) 4.81 % 3.01%1.70%
9 May. 4 PDS (8,000) 1,704,200 (0.02 %) 4.79 % 3.00%1.70%
10 May. 4 PRS (15,000) 1,689,200 (0.05 %) 4.74 % 2.98%1.69%
11 May. 4 PRS 7,000 1,696,200 0.02 % 4.76 % 2.99%1.69%
12 May. 4 Various (100,000) 1,596,200 (0.28 %) 4.48 % 2.89%1.64%
13 May. 4 LLS (30,000) 1,566,200 (0.08 %) 4.40 % 2.86%1.62%
14 May. 4 Various (50,000) 1,516,200 (0.14 %) 4.26 % 2.81%1.59%
15 May. 4 PRS (10,000) 1,506,200 (0.03 %) 4.23 % 2.80%1.59%
16 May. 4 (108,000) 1,398,200 (0.30 %) 3.93 % 2.69%1.52%
17 May. 4 Council (6,750) 1,391,450 (0.02 %) 3.91 % 2.69%1.52%
18 May. 4 PRS 15,000 1,406,450 0.04 % 3.95 % 2.70%1.53%
19 May. 4 PRS (15,000) 1,391,450 (0.04 %) 3.91 % 2.69%1.52%
(376,250) (1.05 %)
Estimated
Tax Rate Share Weighted Share Weighted
Pressure of Tax Rate of Tax Rate
(from above)Tax Bill Pressure Tax Bill Pressure
3.91%36.0 % 1.41%20.4 % 0.80%
2.97%43.1 % 1.28%24.4 % 0.72%
0.00%21.0 % 0.00%55.3 % 0.00%
2.69%1.52%
CALCULATION OF IMPACT ON
OVERALL TAX BILL
RESIDENTIAL COMMERCIAL
Education
Region of York
Town of Aurora
Removal of Economic Development Committee awards provision
Reduction in community grants fund
Payment to AKBA for enhanced baseball diamond maintenance services
Reduction in training & development
Receipt of provincial grant in support of Elderly Persons Centre Operations
Receipt of federal grant in support of community rebount class equipment
purchase
Reduction in external legal services
Adoption of mandatory four month vacant position gapping
Change to
Operating
Budget
Increase in CYFS requirement based upon draft budget
Increased Town grant in support of additional staffing need
Rate stabilization fund draw to balance CYFS tax pressure to 1.30%
CAO's proposed budget adjustments
Increased Town Grant in support of outreach educational program
Additional growth related development revenues anticipated
Reduction in level of tax rate subsidization of various user pay town services
Elimination of full time position
Reduction in Council Training/Conferences
Additional Senior Centre Operating Expenditures
1,767,700
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
2015 Operating Budget
OPERATING BUDGET - SUMMARY BY DEPARTMENT
2014 2015 New 2015 Tax
Shown in $,000's Approved Base Items Recommended Dollar Pressure
Budget Budget for 2015 Budget Change Change
(adjusted) favourable / (unfavourable)
Gross Expenses
Council 528.6$ 526.9 - 526.9$ 1.8$ 0.00 %
Chief Administrative Office 1,894.6$ 1,908.3 - 1,908.3$ (13.8) (0.04 %)
Legal & Legislative Services 2,419.3$ 2,543.3 - 2,543.3$ (124.0) (0.35 %)
Election 2018 262.5$ 82.5 - 82.5$ 180.0 0.51 %
Corporate & Financial Services 2,971.6$ 3,212.3 3.8 3,216.1$ (244.5) (0.69 %)
Building & By-law Services 3,809.6$ 3,990.5 27.4 4,017.9$ (208.3) (0.58 %)
Planning & Development Services 1,998.6$ 1,933.5 - 1,933.5$ 65.2 0.18 %
Infrastructure & Environmental Services 11,931.5$ 12,427.7 288.0 12,715.7$ (784.1) (2.20 %)
Parks & Recreation 8,160.5$ 8,358.1 85.3 8,443.4$ (282.9) (0.79 %)
Corporate Expenses*7,397.8$ 7,601.2 205.9 7,807.1$ (409.3) (1.15 %)
Central York Fire Services 8,814.6$ 9,287.4 - 9,287.4$ (472.8) (1.33 %)
Funding Provided for Library Operations 3,439.2$ 3,439.2 99.5 3,538.7$ (99.5) (0.28 %)
Gross Expenditures 53,628.5$ 55,310.8 709.9$ 56,020.7$ (2,392.2)$ (6.72 %)
Gross Revenues
Council -$ -$ -$ -$ -$ -
Chief Administrative Office -$ - -$ -$ - -
Legal & Legislative Services (128.5)$ (190.7) -$ (190.7)$ 62.1 0.17 %
Election 2014 (119.0)$ - -$ -$ (119.0) (0.33 %)
Corporate & Financial Services (2,553.2)$ (129.0) -$ (129.0)$ (2,424.2) (6.81 %)
Building & By-law Services (1,577.9)$ (2,661.9) -$ (2,661.9)$ 1,083.9 3.04 %
Planning & Development Services (1,132.3)$ (1,610.5) -$ (1,610.5)$ 478.1 1.34 %
Infrastructure & Environmental Services (5,553.0)$ (1,181.9) -$ (1,181.9)$ (4,371.1) (12.28 %)
Parks & Recreation (7,561.8)$ (5,490.9) (30.0)$ (5,520.9)$ (2,040.8) (5.73 %)
Corporate Revenues -$ (7,729.6) -$ (7,729.6)$ 7,729.6 21.71 %
(18,805.8)$ (18,994.4)$ (30.0)$ (19,024.4)$ 218.7$ 0.61 %
Taxation - 2014 (34,822.7) (34,822.7) - (34,822.7)$
Taxation - Growth from New Assessmen - - (782.1) (782.1)$ 782.1
Taxation - Increase for 2015 - - - -$
Gross Revenues (53,628.48)$ (53,817.2)$ (812.1)$ (54,629.3)$ 1,000.8$ 2.81 %
Net Expenditures/(Revenues)
Council 528.6$ 526.9$ -$ 526.9$ 1.8$ 0.00 %
Chief Administrative Office 1,894.6$ 1,908.3 - 1,908.3 (13.8) (0.04 %)
Legal & Legislative Services 2,290.7$ 2,352.6 - 2,352.6 (61.9) (0.17 %)
Election 2014 82.5$ 82.5 - 82.5 - -
Corporate & Financial Services 2,852.6$ 3,083.3 3.8 3,087.1 (234.5) (0.66 %)
Building & By-law Services 1,256.4$ 1,328.7 27.4 1,356.1 (99.7) (0.28 %)
Planning & Development Services 420.7$ 323.0 - 323.0 97.7 0.27 %
Infrastructure & Environmental Services 10,799.2$ 11,245.8 288.0 11,533.8 (734.6) (2.06 %)
Parks & Recreation 2,607.6$ 2,867.2 55.3 2,922.5 (314.9) (0.88 %)
Corporate Expenses & Revenues*(164.0)$ (128.4) 205.9 77.5 (241.4) (0.68 %)
Central York Fire Services 8,814.6$ 9,287.4 - 9,287.4 (472.8) (1.33 %)
Funding Provided for Library Operations 3,439.2$ 3,439.2 99.5 3,538.7 (99.5) (0.28 %)
34,822.7$ 36,316.4$ 679.9$ 36,996.3$ (2,173.6)$ (6.10 %)
Taxation (34,822.7)$ (34,822.7)$ (782.1) (35,604.8) 782.1$ 2.20 %
NET -$ 1,493.7$ (102.2)$ 1,391.5$ (1,391.5)$ (3.91 %)
* Includes $110,000 of budget reductions not yet administratively allocated to individual departments
Attachment 2
Attachment 3
Town of Aurora
2015 Operating Budget
GRAPHIC SUMMARY OF TAX PRESSURE FOR 2015
Fiscal
Services
Running Aurora
Expanding Fire
Today
1.82%
1.30%
0.79%
Strategy
•Infrastructure Sustainability Funding - Closing historical underfunding gap - 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 proceeds.
•Improving Services, meeting Growth
•Increased insurance, employee benefit
& software maintenance costs
•Increased facility costs
•Increased snow removal costs
•Increased library services costs
•Efficient & Accountable Government
•Closely aligned with inflation
•First of six years of phase in plan -
operational costs only
•Capital expansion funded by
development charges
Attachment 4
Town of Aurora
2015 Operating Budget
CORPORATE SUMMARY OF TAX PRESSURE FOR 2015
Shown in $,000's 2014
Approved
2015
Proposed
Variance
Fav / (Unfav)
2015 Tax Rate
Equivalent
1) Running Today's Town of Aurora
- Changes to Full-Time Equvalent Staffing Costs:20,816.2$ 21,211.7$ (395.5)$ (1.11%) - Changes to all Other: 1,560.0 1,812.8 (252.8) (2.01%)
- Taxation Revenues ( no growth ): (34,822.7) (34,822.7) - - %
- Growth taxes from new properties: (782.1) 782.1 2.20%
TOTAL TOWN PROVIDED SERVICES (12,446.5)$ (11,798.3)$ (648.3)$ (1.82%)
2) Expanding Fire Services 8,814.6 9,277.5 (462.9) (1.30%)
3) Fiscal Strategy
- Increased contribution towards asset renewal:4,031.9 4,212.2 (180.3) (0.51%)
- Reduced Reliance upon Hydro Reserve Interest: (400.0) (300.0) (100.0) (0.28%)
Total Fiscal Strategy 3,631.9$ 3,912.2$ (280.3)$ (0.79%)
-$ 1,391.5$ (1,391.5)$ (3.91%)
Detailed Changes by each Category can be found on Schedule 5
NET TAX PRESSURE INCREASE
Town of Aurora
2015 Operating Budget Impacts
Detail of Expenditure Pressures and Revenue Changes
1.RUNNING AURORA TODAY
BASE BUDGET
a) Full-Time and Equivalent Staffing Costs:
Cost of Living Allowance and Step Increases on existing positions (144,200)
Other Employee Benefits:(34,300)
Budget Committee Directed Salary Savings:158,000
Total Staffing Costs (20,500) (0.06%)
b) Changes to all other expenses net of other revenue:
Reduced reliance on Rate Stabilization Reserve*(361,500)
Supplementary Revenue Increases 325,000
Energy Cost Increases (268,700)
Software Licensing & Maintenance Cost Increases (186,700)
Facility Related Repair & Maintenance Contract & Supply Increases (132,200)
Training & Development Reduction Savings 100,000
Insurance Fee Increases (58,300)
Recognition of a further adjustment to overhead cost recovery from Building (50,000)
Road & Sidewalk Maintenance Contract & Supply Increases (48,800)
Recreation program revenue decreases (40,000)
Waste Management Contract & Supply Increases (38,000)
Snow Removal Contract Increases (19,200)
Other General Operational Cost Savings 18,500
Payment to AKBA for enhanced diamond maintenance services (7,000)
Increase in Grant Funding to Aurora Historical Society (7,500)
Other Revenue Increases 44,400
Total Other Expense (730,000) (2.05%)
2015 BASE OPERATING BUDGET (750,500) (2.11%)(0.76%)
NEW RECOMMENDED ITEMS:
Staff Related:
2015 Annualization of Approved Postions ( part year in 2014 ):(205,900)
Converted and New Position Requests ( 3 FTEs ) (1.1 to 1.6):
(1.1) Plan Examiner / Inspector ( 1 FTE ) (100% Bldg)-
(1.2) Customer Service Representative ( PT )(27,400)
(1.3) Water & Administration Clerk ( 1 FTE ) (90% rate, 10% Tax)(3,800)
(1.4) Facility Booking Administrator ( 1 FTE )(19,000)
(1.5) Youth Room Climbing Wall Staff ( PT )(27,000)
(1.6) Youth Programmer ( 1 FTE )(39,300) (116,500)
Total Staff Related (322,400)
Library Operational Funding:(99,500) (0.28%)
Other New Items:
(2.3) Waste Management Advertising Increase (22,000)
(2.4) Sidewalk Snow Removal Services cost increase (246,000)
(2.5) Road Maintenance - Crack Filling Contract Increase (20,000)
(2.6) Increase in Special Event Revenues 30,000
Total Other New Items (258,000) (0.72%)
2015 RECOMMENDED NEW ITEMS (679,900) (1.91%)
GROWTH TAX REVENUE FROM NEW ASSESSEMENT 782,100 2.20%
NET TAX PRESSURE FOR RUNNING AURORA TODAY (648,300) (1.82%)(0.65%)
2.EXPANDING FIRE SERVICES (462,900) 1.30%0.47%
3.FISCAL STRATEGY
(2.1) Increased Contribution to Reserves for the Maintenance of
the Town's Infrastructure Assets (180,300) (0.51%)
(2.2) Reduction of operational reliance on Hydro Reserve Interest (100,000) (0.28%)
NET TAX PRESSURE IN SUPPORT OF FISCAL STRATEGY (280,300) (0.79%)
NET TAX PRESSURE RECOMMENDED FUNDING INCREASE (1,391,500) (1.41%)
Attachment 5
(3.91%)
(0.58%)
F a v o u r a b l e / ( U n F a v o u r a b l e )
percentage = tax pressure
Estimated
Impact to
Blended Res.
Tax Rate
C h a n g e
(0.33%)
(0.91%)
Town of Aurora Attachment 6
2015 Draft Operating Budget Impacts
CONVERTED AND NEW POSITIONS IN 2015 BUDGET
2015 Budget Requests
Full-Time
Net Cost Complement
2014 Budget Approved Full-Time Complement 207
Add: Heritage Curator*1
Less: Deleted Full Time Position as per Budget Committee (May 2015)(1)
Revised 2015 Base Full-Time Complement 207
FULL-Time Staffing - Conversion Requests
Water & Tax Administrative Clerk 37,648 1
Position will be funded 90% from water and is costed for 6 months (33,883)
Facility Bookings Administrator 18,971 1
Plan Examiner / Inspector ( Previously approved by Council )51,238 1
Position will be funded 100% from Building Services and is costed for 6 months (51,238)
Youth Programer ( Previously approved by Council )39,300 1
Position will be funded 100% from the Tax Levy and costed for 6 months -
147,158$ (85,122)$
Net Full-Time 62,036$ 211
CONTRACT Staffing - Requests
Customer Service Representative 27,418$
Youth Leader - Climbing Wall ( Previously approved by Council )27,000
54,418$ -$
Net Part-Time 54,418$
Total Net 2015 Budget Requests 201,576$ (85,122)$ 116,454$
* Heritage Curator was approved by Council on July 29, 2014 via report PR14-036.
D o l l a r s
Gross Cost Offsets
Town of Aurora
2015 Operating Budget
HISTORY OF AURORA TAX RATE INCREASES
Attachment 7
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
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% 3.91%
Category
User Rate Supported Assets
Water Mains / Sanitary Sewer 2,000.6$
Storm Sewer / Ponds 1,751.8
Pumping Station/Water Meters 301.2
4,053.6$
Tax Supported Assets
Buildings 2,015.9$
Roads/Sidewalks/Street Lighting 2,655.7
Parks (Land Improvement)742.7
Other Vehicles 509.5
Furniture & Fixtures 125.6
Computer Related Equipment 187.4
6,236.7
Sub Total - Directly Supported Assets 10,290.3$
Indirectly Supported Assets (from Taxes)
Fire Vehicles & Equipment 175.7$
Aurora Public Library Assets 440.8
616.4
10,906.8$
Attachment #8
Estimate of Tangible Capital Asset Amortization Expense for 2015:
Estimated Amortization Expense for 2015
Amortization
Amount
in $'000's
Consolidated Under
In $ 000 's Town Library "Water"Municipal Reporting PSAB
Budget Budget Budget "Standard"Change Guidelines
Revenues:(excl Library)Rate Funded (cash basis)(accrual basis)
Operating - Tax Levy / Water Rates 33,559.3$ 3,538.7$ 18,392.0$ 55,490.0$ -$ 55,490.0$
Operating - Receipts From Outside Sources 15,728.7 120.0 334.0 16,182.7$ - 16,182.7
Operating - Transfers From Other Funds 3,194.0 - 523.8 3,717.8$ (3,717.8) (1)-
Capital - Receipts From Outside Sources - - - -$ - -
Capital - Transfers From Other Funds 17,932.6 290.0 - 18,222.6$ (18,222.6) (1)-
Total Revenues 70,414.6$ 3,948.6$ 19,249.8$ 93,613.1$ (21,940.4)$ 71,672.7$
Expenses:
Operating Expenses 43,686.7$ 3,528.6$ 16,149.8$ 63,365.1$ -$ 63,365.1$
Operating - Transfers To Capital Funds 4,551.8 130.0 - 4,681.8 4,681.8 (2)-
Operating - Transfers To Other Funds 2,359.4 - 3,100.0 5,459.4 5,459.4 (2)-
Operating - Debt Principal Payment 1,703.4 - - 1,703.4 1,703.4 (3)-
Operating - Debt Interest Payment 180.7 - - 180.7 - 180.7
Tangible Capital Additions 17,102.6 290.0 - 17,392.6 17,392.6 (4)-
Non-Tangible Capital Additions 830.0 - - 830.0 - (5)830.0
Total Expenses 70,414.6$ 3,948.6$ 19,249.8$ 93,613.1$ 29,237.2$ 64,375.9$
Annual Surplus / (Deficit) with Exclusions -$ -$ -$ -$ 7,296.8$ 7,296.8$
per O.Reg 284/09
Exclusions Add Back:
- Amortization of Tangible Capital Assets (4)(10,906.8)$
- Post Employee Benefits and Sick Leave liabilities (3.0)
- Workplace Safety & Insurance Board Benefits (141.9)
Total Exclusions (10,909.8)$
Annual Surplus / (Deficit) - full PSAB Compliance - Audited Financial Statement Result (3,613.0)$
Foot Notes:
1."Transfers From Other Funds" represents transfers from reserves for expenditures and is not considered a revenue source under accrual accounting.
2."Transfers To Other Funds" represents the contribution to reserves and is not considered an expense under accrual accounting.
3."Debt Principal Payments" are considered a repayment of a long term liability and are not considered an expense under accrual accounting - only the related Interest portion
remains a valid expense
4.Under accrual accounting, costs related to the acquisition of "Tangible Capital Assets" are recorded on the balance sheet - only the amortization of existing Tangible Assets
is included as an expense. This amortization is generally excluded from traditionally prepared, cash basis, municipal budgets.
5.Studies and Reports are examples on non-Tangible Assets and their acquisition is included as an expense.
Attachment #9
2015 Budget Presentation Differences
"Standard" Cash-Basis Budget vs. Presentation Requirement under P.S.A.B.
Under O.Reg 284/09, this schedule is to be presented
prior to or as part of the budget approval process
++=
Town of Aurora - 2015 Budget