2017 Operating Budget Final Approval Town of Aurora
General Committee Report No. FS16-039
Subject: 2017 Operating Budget Final Approval
Prepared by: Dan Elliott, Director of Financial Services - Treasurer
Department: Financial Services
Date: December 13, 2016
Recommendation
1. That Report No. FS16-039 be received; and
2. That the 2017 Operating Budget summarized in Attachment 1 which reflects all
revisions recommended for approval by the Budget Committee, resulting in a
total tax levy of $41,821,700 and a total expenditure plan of $60,814,800, and
an estimated 3.1% tax increase on the Aurora share, and a 2.4% residential tax
bill increase when combined with the regional and education shares of the tax
bill, be approved; and
3. That the Town’s full-time staff complement be increased by nine (9) to 221
(excluding Library Board and Central York Fire Services staff) as presented in
Attachment 2 and funded in the 2017 Operating Budget; and
4. That staff prepare the necessary bylaw for adoption by Council to set 2017 tax
rates and payment dates.
Executive Summary
To present for approval the 2017 Operating Budget as amended by the reviews and
deliberations of General Committee – Budget at its recent series of meetings.
Background
General Committee – Budget has concluded its review and discussions of the staff
presented draft 2017 Operating Budget. Amendments made to the draft budget during
the deliberations are summarized on Attachment 1.
Council Meeting Agenda Tuesday, December 13, 2016 Item 3 Page 1 of 12
December 13, 2016 Page 2 of 5 Report No. FS16-039
Analysis
Early in 2016, Council adopted two foundational documents: Council Budget
Principles, and Council Budget Process.
Council adopted these two foundational documents to set out clearly the principles to be
followed in preparing and reviewing its annual operating and capital budgets, and the
detailed process which would be followed in conducting those reviews. The budget
processes document outlines the additional role that the Finance Advisory Committee
fulfils in performing detailed departmental reviews outside of the annual budget review
and approval process.
Council directed staff to keep budget to inflation, and to add 1% for fiscal
strategies
At its July 2016 meeting, guided by the Council Budget Principles foundational
document, Council approved specific budget preparation directions for staff. The base
budget was to result in a tax increase of not more than inflation, with a further 1%
increase to assist in funding the Town’s long term financial strategies related to
unsustainable revenues and needed funding for infrastructure sustainability.
Staff presented a budget of 1.9% tax increase, plus 1% for fiscal strategies
Despite inflation reported at 2.1% for twelve months to June 2016, staff presented
Council with a base operating budget proposal with a resulting tax increase of 1.9%,
plus the 1% for fiscal strategies. In addition to this draft budget, Council was presented
with several options for consideration for increases in service levels in various areas.
The Base Budget accommodated services extension to accommodate all growth, while
also making significant budget adjustments to several specific budget lines which had
become substantially out of line with historical expense or revenue realities.
The Budget Committee made adjustments
The budget committee made several adjustments, both budget reductions, as well as
budget increases. Several options presented by staff for consideration were added to
the budget, including some service level enhancements. All budget adjustments made
to the draft budget are detailed in Attachment #3.
The key elements affecting the budget increase are graphically presented in Attachment
#4, while the sources of revenue and net operating budget by service is presented in
graphs in Attachment #5 and 6, respectively.
Council Meeting Agenda Tuesday, December 13, 2016 Item 3 Page 2 of 12
December 13, 2016 Page 3 of 5 Report No. FS16-039
Advisory Committee Review
The Finance Advisory Committee is not involved in the detailed budget reviews of the
annual budget. However, this Committee is expected to review the detailed budgets of
each operating department and budget section once per term of Council. It will continue
these reviews in the new year. The 2017 reviews will include the detailed review of the
Infrastructure and Environmental Services department. All such meetings are open to
the public, and to all members of Council.
Financial Implications
The 2017 Operating Budget sets out planned expenditures totalling $60,814,800,
funded with non-tax revenues of $18,993,100, such as investment income, user fees,
Federal Gas Tax grants, and fines & penalties. The remaining $41,821,700
requirement is to be raised through property taxes.
The final approved budget results in an average increase to the Aurora share of the
residential tax bill of 3.1%. When combined with the Region of York’s estimated tax
increase of 2.87%, and the expected net 0% increase on the provincial education share
of the tax bill, the combined effect on the overall tax bill in Aurora is expected to be
approximately 2.4% on average. For each $100,000 of assessment, these increases
will add $10.46 to the Aurora share, and $21.86 total overall. For an average home
assessed at $770,000, the impacts are $80.52 to the Aurora share, and $168.29 total
overall, on average. All reports, presentations and materials presented to Budget
Committee remain available to the public on the Town’s Budget and Financial
Information website page. Attachment #7 outlines Aurora’s history of increases to its
property tax levies.
Communications Considerations
A press release and information kit has been prepared related to the approval of the
Town’s 2017 Operating Budget. Updated budget information will be included on the
reverse side of the Interim Tax Brochure included with all mailed tax billings issued in
January. The full budget details have been updated to the Town’s Budget and Financial
Information page on our website, including the capital budget approval report and
detailed capital sheets of all approved projects.
Council Meeting Agenda Tuesday, December 13, 2016 Item 3 Page 3 of 12
December 13, 2016 Page 4 of 5 Report No. FS16-039
Link to Strategic Plan
Approval of the 2017 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 Recommendation
Council may make further adjustments to the budget than those recommended by
Budget Committee.
Conclusions
General Committee – Budget has concluded its review of the annual budget for 2017.
The result of the recommended budget is a 3.1% tax increase on the Aurora share of
the tax bill. When combined with the expected increases for the Region of York and the
provincial education portions, the expected overall tax impact for Aurora residents is
2.4%.
Attachments
Attachment #1 - 2017 Operating Budget Summary by Department
Attachment #2 - New Full Time Staff Additions
Attachment #3 - Details of Adjustments made to the Budget by Committee
Attachment #4 - Key Budget Elements affecting tax increase
Attachment #5 - Total Revenues by Source
Attachment #6 - Net Operating Budget by Service
Attachment #7 - History of Tax Rate Increases – Aurora Share
Previous Reports
FS16-036 “2017 Operating Budget” presented and referred to Budget Review
November 8, 2016
Pre-submission Review
CAO and Treasurer only
Council Meeting Agenda Tuesday, December 13, 2016 Item 3 Page 4 of 12
Council Meeting Agenda Tuesday, December 13, 2016Item 3 Page 5 of 12
Attachment 1
Town of Aurora
2017 Operating Budget
Summary by Department
2016 2017 Tax
Shown in $000's Approved Draft Dollar Pressure
Budget Budget Change Change
(adjusted) favourable / (unfavourable)
Gross Expenses
Council 532.8$ 546.9$ (14.1)$ (0.0 %)
CAO's Office 1,077.7$ 1,242.7$ (165.0)$ (0.4 %)
Corporate Services 6,994.4$ 7,345.8$ (351.4)$ (0.9 %)
Election 2018 82.5$ 82.5$ -$ -
Financial Services 1,500.1$ 1,565.4$ (65.3)$ (0.2 %)
Planning and Building Services 4,555.1$ 4,691.6$ (136.5)$ (0.3 %)
Infrastructure & Environmental Services 13,620.6$ 14,528.3$ (907.7)$ (2.2 %)
Parks, Recreation & Cultural Services 8,824.2$ 9,336.4$ (512.2)$ (1.3 %)
Corporate Expenses 7,548.7$ 7,482.5$ 66.2$ 0.2 %
Fire Services 9,774.8$ 10,225.0$ (450.2)$ (1.1 %)
Funding Provided for Library Operations 3,659.0$ 3,767.7$ (108.7)$ (0.3 %) #REF!
Gross Expenditure (Increase) /
Decrease 58,169.9$ 60,814.8$ (2,644.9)$ (6.5 %)
Gross Revenues
Council -$ -$ -$ -
CAO's Office -$ -$ -$ -
Corporate Services (518.7)$ (372.3)$ (146.5)$ (0.4 %)
Election 2018 -$ -$ -$ -
Financial Services (177.6)$ (181.4)$ 3.8$ 0.0 %
Planning and Building Services (4,688.3)$ (4,696.0)$ 7.7$ 0.0 %
Infrastructure & Environmental Services (1,607.7)$ (1,799.3)$ 191.6$ 0.5 %
Parks, Recreation & Cultural Services (5,410.5)$ (5,354.8)$ (55.7)$ (0.1 %)
Corporate Revenues (6,808.1)$ (6,589.3)$ (218.8)$ (0.6 %)
Corporate Expenses & Revenues -$
CYFS -$ -$ - - - -
(19,210.9)$ (18,993.1)$ (217.8)$ (0.6 %) -
Taxation - 2016 (38,959.0) (38,959.0)$ -
Taxation - Growth from New Assessment - (1,597.3)$ 1,597.3 4.0 %
Taxation - Increase for 2016 - -$
Gross Revenue Increase / (Decrease)(58,169.9)$ (59,549.4)$ 1,379.5$ 3.4 %
Net Expenditures/(Revenues)
Council 532.8$ 546.9$ (14.1)$ (0.0 %)
CAO's Office 1,077.7$ 1,242.7 (165.0)$ (0.4 %)
Corporate Services 6,475.7$ 6,973.5 (497.9)$ (1.2 %)
Election 2018 82.5$ 82.5 -$ -
Financial Services 1,322.5$ 1,384.0 (61.5)$ (0.2 %)
Planning and Building Services (133.2)$ (4.5) (128.7)$ (0.3 %)
Infrastructure & Environmental Services 12,012.9$ 12,729.0 (716.1)$ (1.8 %)
Parks, Recreation & Cultural Services 3,413.7$ 3,981.5 (567.8)$ (1.4 %)
Corporate Revenues & Expenses 740.6$ 893.2 (152.6)$ (0.4 %)
Fire Services 9,774.8$ 10,225.0 (450.2)$ (1.1 %)
Funding Provided for Library Operations 3,659.0$ 3,767.7 (108.7)$ (0.3 %)
Funding Provided for Library Operations -$ - -$ -
38,959.0$ 41,821.7$ (2,862.7)$ (7.1 %)
Taxation (38,959.0)$ (40,556.3) 1,597.3$ 4.0 %
NET Tax Increase Required -$ 1,265.4$ (1,265.4)$ (3.1 %)
Town of Aurora Attachment 2
2017 Operating Budget Impacts
CONVERTED AND NEW POSITIONS IN 2017 BUDGET
2017 Budget Requests
Full-Time
Net Cost Complement
2016 Budget Approved Full-Time Complement 212
FULL-Time Staffing - Conversion Requests
Communications Specialist 109,700 1
Parks Operations Crew Leader ( costed for 7 months)47,800 1
Part-Time to Full Time Uplift of Special Events Coordinator ( costed for 7 months )30,100 1
Building Services Clerical Support 38,500 1
Position will be funded 100% from Building Services and costed for 7 months (38,500)
Capital Delivery Project Manager 60,200 1
Position will be funded 30% from Capital and costed for 7 months (18,100)
Museum Services Support ( costed for 9 months )58,635 1
Economic Development Officer 76,895 1
Position will be funded 100% from Capital and costed for 10 months (76,895)
Program Manager, Records Management and Policy Development 116,100 1
Procurement Clerical Assistant 59,900 1
Position will be funded 85% from water rates and costed for 7 months (44,400)
597,830$ (177,895)$
Net Full-Time 419,935$ 221
CONTRACT Staffing - Requests
Financial Services Part Time Clerical Assistance 9,000$
Back-Fill Contract for Manager of Revenue 42,900
Contract will be funded 100% from water rates (42,900)
Museum Services Part Time Student 10,000
Additional Part Time Recreation Customer Service Hours 58,200
120,100$ (42,900)$
Net Part-Time / Contracts 77,200$
Total Net 2017 Budget Requests 717,930$ (220,795)$ 497,135$
D o l l a r s
Gross Cost Offsets
Town of Aurora Attachment 3
2017 Operating Budget
BUDGET COMMITTEE CHANGES
Residential Commercial
STARTING POINT - Draft Budget, As of November 8, 2016 =2.9 % 2.3 % 1.3 %
9 Nov.14/16 IES (60,200) 1,131,437 (0.15 %) 2.8 % 2.3% 1.3%
Nov.14/16 Council 7,900 1,139,337 0.02 % 2.8 % 2.3% 1.3%
Nov. 22/16 PRCS / IES (7,500) 1,131,837 (0.02 %) 2.8 % 2.3% 1.3%
17 Nov. 29/16 ALL (70,000) 1,061,837 (0.17 %) 2.6 % 2.2% 1.2%
8 Nov.29/16 PBS 76,895 1,138,732 0.19 % 2.8 % 2.3% 1.3%
8 Nov.29/16 PBS (76,895) 1,061,837 (0.19 %) 2.6 % 2.2% 1.2%
5 Nov.29/16 PRCS 15,000 1,076,837 0.04 % 2.7 % 2.2% 1.3%
2 Nov. 29/16 PRCS 24,400 1,101,237 0.06 % 2.7 % 2.2% 1.3%
10 Nov. 29/16 PBS 10,000 1,111,237 0.02 % 2.7 % 2.2% 1.3%
4 Nov.29/16 PRCS 15,500 1,126,737 0.04 % 2.8 % 2.3% 1.3%
6 Nov. 29/16 PRCS 5,000 1,131,737 0.01 % 2.8 % 2.3% 1.3%
7 Nov. 29/16 PRCS 25,000 1,156,737 0.06 % 2.9 % 2.3% 1.3%
11 Nov. 29/16 PBS 2,500 1,159,237 0.01 % 2.9 % 2.3% 1.3%
3 Nov. 29/16 PRCS 58,635 1,217,872 0.14 % 3.0 % 2.3% 1.3%
12 Nov. 29/16 PRCS 2,500 1,220,372 0.01 % 3.0 % 2.3% 1.3%
1 Nov. 29/16 CS 45,000 1,265,372 0.11 % 3.1 % 2.4% 1.3%
13 Nov. 29/16 PRCS 50,500 1,315,872 0.12 % 3.2 % 2.4% 1.4%
16 Nov. 29/16 PRCS 93,700 1,409,572 - 3.5 % 2.5% 1.4%
Nov. 29/16 PRCS (144,200) 1,265,372 (0.36 %) 3.1 % 2.4% 1.3%
Note(s):
1) Sport Aurora sustainability funding has been conditionally approved subject to further information coming back to council.
2) Contribution from the Council Discretionary Reserve amount of $144,200 includes sustainability funding for both the Aurora Sports Hall of Fame and Sport Aurora.
Contribution FROM Capital (CIP Capital Project to fund)
1,191,637
Move Facilities Supervisor to Option List (Remove)
Remove Southlake Event Costs
Reduction in training & development
Position Addition - Economic Development Position (Capital Funded)
Increase Council Administration Conference Budget
I T E M
Running
Revised
Budget
Increase
Impact on
Town
Rate
Running
Town
Rate
Pressure
Effective Combined
Tax Impact
A D J U S T M E N T S R E S U L T S
Ref.Date of
Decision
Change to
Operating
Budget
Department
Celebration 150 Town Park
Sponsorship of Women in Business Conference (Chamber of Commerce)
Position Addition - FT Museum Position, plus training
Multi-cultural Event
Sponsorship of Technology Expo (Chamber of Commerce)
Animal Control service level increase
Sponsorship of Business Excellence Awards (Chamber of Commerce)
Additional Exhibition and online museum
Pet Cemetary establishment & annual maintenance
Sport Aurora - Sustainability Operating Grant1
Reduction in Ribfest Revenues
Contribution FROM Council Discretionary Reserve2
Aurora Sports Hall of Fame - Sustainability Operating Grant
Attachment 4
Town of Aurora
2017 Operating Budget
KEY BUDGET DRIVERS
Core Operations:
Service Enhancements:
Fiscal Strategy:
1.1%
Fire
Services
Core Budget
Right-Sizing
1.6%
Reduction in
Development
Related
Revenues
0.3%
Other Changes
(Including
inflation and
expansion of
service to new
communities)
2.7%4.1%
Taxes from
new growth to
extend services
Net 1.6%
Tax
Increase
The 3.1% increase to the tax levy translates to an
additional $80.52 on a home with an average
assessed value of $770,000.
Cash to Capital
0.6%
Hydro
Interest
Reduction
0.4%
Net 1.0%
Tax
Increase
0.3%
Cultural
Services
Annimal
Control
Services
0.1%
Other
0.1%Net 0.5%
Tax
Increase
Net 3.1%
Tax
Increase
Attachment 5
Town of Aurora
2017 Operating Budget
Total Revenues by Source
Shown in $000's
* User Fees include revenue received in relation to the utilization of the town's various service
offerings such as its parks and facilities, building permit issuances and development application
fees.
Total Tax Levy
(41,821.7)
68.8%
User Fees
(11,545.8)
19.0%
Grants & Gas Tax
(2,436.4)
4.0%
Reserve Draws
(2,300.9)
3.8%
Investment
Income (1,550.0)
2.5%
Fines & Penalties
(1,060.0)
1.7%
Hydro Fund
Proceeds (100.0)
0.2%
Attachment 6
Town of Aurora
2017 Operating Budget
Net Operating Budget by Service
Shown in $000's
Planning &
Building Services
(4.5)
0%
Infrastructure &
Environmental
Services
$12,729.0
30%
Parks, Recreation
& Cultural Services
$3,981.5
10%
Internal Support
Services $6,285.2
15%
Contributions to
Infrastructure
$4,837.8
12%
Central York Fire
Services $10,225.0
24%
Town of Aurora
Library Board
$3,767.7
9%
Town of Aurora
2017 Operating Budget
HISTORY OF AURORA TAX RATE INCREASES
Attachment 7
5.5%
7.9% 7.9%
4.3%
5.0%
1.8%
2.8%
3.8%
4.8%
3.4%
3.8%3.9%
1.8%
3.1%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017