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Agenda - Audit Committee - 20250624Town of Aurora Audit Committee Meeting Revised Agenda Date:Tuesday, June 24, 2025 Time:6:15 p.m. Location:Council Chambers, Aurora Town Hall Meetings are available to the public in person and via live stream on the Town’s YouTube channel. To participate, please visit aurora.ca/participation. Pages 1.Call to Order Note: Added items are marked with an asterisk (*). 2.Land Acknowledgement 3.Approval of the Agenda 4.Declarations of Pecuniary Interest and General Nature Thereof 5.Delegations *5.1 Shawn Deane, Resident; Re: Risk and Surpluses 1 6.Consideration of Items Requiring Discussion 6.1 FIN25-035 - 2024 Audited Financial Statements and Audit Report 2 (Presentation to be provided by Maria Khoushnood, Lead Audit Engagement Partner, KPMG) That Report No. FIN25-035 be received; and1. That the 2024 Audit Report and Financial Statements for the year ended December 31, 2024, be approved and published on the Town’s website. 2. 6.2 FIN25-037 - 2024 Year-End Operating and Capital Results - as of Dec. 31, 2024 77 That Report No. FIN25-037 be received for information.1. 103 6.3 FIN25-036 - 2024 Aurora BIA Audit Report and Financial Statements That Report No. FIN25-036 be received; and1. That the Aurora BIA’s 2024 Audit Report and Financial Statements for the year ended December 31, 2024, be approved. 2. 7.Adjournment 100 John West Way Aurora, Ontario L4G 6J1 (905) 727-3123 aurora.ca Delegation Request This request and any written submissions or background information for consideration by either Council or Committees of Council is being submitted to Legislative Services. Council or Committee (Choose One) * Audit Committee Council or Committee Meeting Date *  2025-6-24 Subject * risk and surpluses Full Name of Spokesperson and Name of Group or Person(s) being Represented (if applicable) * Shawn Deane Brief Summary of Issue or Purpose of Delegation * risk and surpluses Have you been in contact with a Town staff or Council member regarding your matter of interest? * Yes No Full name of the Town staff or Council member with whom you spoke John Gallo Date you spoke with Town staff or a Council member 2025-6-20 I acknowledge that the Procedure By-law permits five (5) minutes for Delegations. * Agree I acknowledge that I understand and accept the delegate conduct expectations as outlined in Section 32(b) of the Procedure By-law 6228-19, as amended (link below) * Agree Click to view Procedure By-law 6228-19, as amended.   Page 1 of 115 100 John West Way Aurora, Ontario L4G 6J1 (905) 727-3123 aurora.ca Town of Aurora Audit Committee Report No. FIN2 5 -0 35 Subject: 2024 Audited Financial Statements and Audit Report Prepared by: Elizabeth Adams-Quattrociocchi, CPA, CGA, Manager, Financial Reporting and Revenue / Deputy Treasurer Department: Finance Date: June 24, 2025 Recommendation 1. That Report No. FIN25-035 be received; and 2. That the 2024 Audit Report and Financial Statements for the year ended December 31, 2024, be approved and published on the Town’s website. Executive Summary The Town of Aurora’s audited financial statements and auditor’s report for the year ended December 31, 2024 are presented for approval.  The audited statements combine all of the Town’s financial results into one set of statements  The full accrual version of the financial statement presents a much larger surplus than budget variance reporting  The summary of unadjusted misstatements is below the materiality threshold Background The entire audit package as presented by our auditors KPMG LLP is attached. This package includes the 2024 Yearend Audit Report, Letter to the Audit Committee and the audited financial statements which can all be found under Attachment 1. The financial statements were prepared by staff and audited by KPMG LLP. These statements have been marked DRAFT by the auditors as the audit cannot technically be completed until Page 2 of 115 June 24, 2025 2 of 6 Report No. FIN25-035 after the approval of the statements by Council. Council is required to approve these statements as part of the finalization of the audit. After the approval, the auditors will sign their final report in the coming days. The financial statements will then be made publicly available by being posted on the Town website, a requirement under Section 295 of the Municipal Act, 2001, S.O. 2001, c. 25 as amended (the Act). Analysis The Audited Statements combine all of the Town’s financial results into one set of statements The audited financial statements present a consolidation of the Aurora’s finances including the combined results of tax and rate funded operating and capital activities and financial results for the Aurora Public Library. The results shown in these consolidated statements differ from the yearend financial performance report to budget because of the inclusion of tangible capital assets and other Public Sector Accounting Standards (PSAS) reporting differences. As part of the annual audit, KPMG performed a review of all Council minutes, prior year’s internal control letters and considered any concerns raised therein during their current audit. Their audit looks for continuing circumstances, weaknesses or concerns as raised in the prior year and how they may affect the outcome of their current audit. The full accrual version of the financial statement presents a much larger surplus than budget variance reporting The audited Public Sector Accounting Board (PSAB) basis financial statements for 2024, as currently drafted, reflect an operating surplus of $32,410,000. This amount reconciles to the internal report combined tax and user rate funded operating budget surplus of $2,373,700 as shown in Table 1. Page 3 of 115 June 24, 2025 3 of 6 Report No. FIN25-035 Table 1 Public Sector Accounting Board 2024 Surplus Reconciliation Description Amount Tax levy supported budget surplus 1,450,400 User rate supported budget surplus 923,300 Traditional Balanced Consolidated Budget Surplus 2,373,700 Add: Contributed assets 8,779,000 Add: Transfers to/from reserves 16,077,400 Add: Net deferred revenue adjustment – DC, CIL, CCBF 25,704,300 Add: Debt principal repaid included 878,000 Add: Net capitalization of asset adjustment 1,811,000 Add: Unrealized gain on investments 1,427,000 Deduct: Amortization & accretion (24,437,000) Deduct: Employee benefit liability adjustment (182,400) Deduct: Loss on disposal of capital assets (21,000) PSAB 2024 “Annual Surplus”: Audited (Draft) 32,410,000 Of note, the operating budgeted transfers to/from reserves amount of $16,077,400 represent contributions that are considered expenses or revenues under the Town’s traditional balanced budget. However, under the Public Sector Accounting Standards (PSAS) in consideration that these transfers simply represent the movement of Town surpluses, they are not considered to be true expenses or revenues and therefore any net contributions to reserves of this nature should be removed as expenses from the calculated operating surplus resulting in a larger surplus. In addition, in some instances PSAB requires that the Town recognize expenses and revenues that do not result in a cash inflow or outflow such as in the cases of the Town’s assumption of assets from developers and the annual amortization of assets. In these instances, the PSAS require that the Town record a revenue equivalent to the value of the assets assumed from a developer and an expense equivalent to how much value of its existing asset book value that is estimated to have been consumed for the year. Because these two items do not result in a cash impact to the Town, they are not included under the traditional balanced budget surplus calculation and therefore the surplus needs to be increased or decreased by any PSAS generated revenues or expenses, respectively to arrive at the Town’s PSAB 2024 annual surplus. Page 4 of 115 June 24, 2025 4 of 6 Report No. FIN25-035 The summary of unadjusted misstatements is below the materiality threshold During the annual audit, the auditor generates a list of misstatements for which the presented financial statements have not been adjusted for. They are considered to be material if individually, or in aggregate, could reasonably be expected to influence the economic decisions of financial statement users. For 2024, the auditor has defined the Aurora’s materiality thresholds as $3,300,000 for all financial statement areas. In 2024 an unadjusted misstatement was identified relating to work-in-progress tangible capital assets in the amount of $2,376,000 with 2,316,000 relating to contract services expense and 60,000 relating to amortization of tangible capital assets. Management with the agreement from KPMG decided that this misstatement was not material and will be corrected and accounted for in the 2024 yearend financial statements. The 2025 audit will be performed by KPMG KPMG will be returning to complete the 2025 financial audit. Their audit plan includes the scope and approach to their planned audit. Staff are not in a position to comment or challenge the approach that the auditors have chosen in order to fulfil their professional obligations required when rendering an audit opinion report. From the perspective of Finance, we continue to be committed to provide the auditors with the documentation requested in an effort to facilitate the audit in a timely manner. Audit fees are always quoted on the presumption that staff will have completed all requested schedules and support materials in advance of the audit, and that the financial statements and associated notes have been properly and fully prepared by staff. The fee also anticipates not finding any item of substance requiring extensive additional audit effort to resolve or report. KPMG included the additional work required for the system conversion as part of their contract with the Town. Advisory Committee Review Not applicable. Legal Considerations The annual audit of the Aurora’s financial statements fulfils the statutory requirements set out in Section 296 of the Act. Page 5 of 115 June 24, 2025 5 of 6 Report No. FIN25-035 Financial Implications There are no financial implications relating to the 2024 yearend audit report. The statements included are presented for receipt by the Audit Committee, as well as to obtain approval of the Consolidated 2024 Financial Statements so that the statements may be published as required by legislation. The cost for the 2025 audit has been provided for within the 2025 budget. An amount of $62,000 has been budgeted for the 2025 audit of the consolidated financial statements, excluding administration charges and taxes. Communications Considerations In accordance with section 295 of the Act, the 2024 audited financial statements will be published on the Town’s website. Climate Change Considerations The information contained within this report does not impact greenhouse gas emissions or impact climate change adaption. Link to Strategic Plan The annual audit is a statutory requirement that is guided by professional standards applicable to all Canadian licensed audit practitioners. Preparation and publication of the annual audited financial statements support the Strategic Plan principles of integrity, progressive corporate excellence and continuous improvement. Alternative(s) to the Recommendation Not Applicable. Conclusions The auditors are ready to issue an unqualified opinion on the fairness and completeness of the corporation’s financial statements for the year ended December 31, 2024. Staff recommend the approval of the statements. Once approved and final versions are prepared, the Mayor and CAO will sign the statements. Page 6 of 115 June 24, 2025 6 of 6 Report No. FIN25-035 Attachments Attachment 1 – 2024 Presentation Audit Findings Report Attachment 2 – 2024 Draft Consolidated Financial Statements Previous Reports FIN24-031 – 2023 Audited Financial Statements and Audit Report Pre-submission Review Agenda Management Team review on June 13, 2025 Approvals Approved by Rachel Wainwright-van Kessel, CPA, CMA, Director, Finance Approved by Doug Nadorozny, Chief Administrative Officer Page 7 of 115 1© 2024 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The Corporation of The Town of AuroraAudit Findings Reportfor the year endedDecember 31, 2024Prepared as of June 4, 2025 for presentation to the Audit Committee on June 24, 2025kpmg.ca/auditLicensed Public AccountantsAttachment 1Page 8 of 115 2© 2025 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. KPMG contactsKey contacts in connection with this engagementMaria KhoushnoodLead Audit Engagement Partner416-228-7082mkhoushnood@kpmg.caMuhammad SaqibSenior Manager416-468-6745msaqib@kpmg.caPage 9 of 115 3© 2024 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Table of contents4Highlights6Risks and results15Appendices12Policies and practices5StatusDigital use informationThis Audit Findings Report is also available as a “hyper-linked” PDF document. If you are reading in electronic form (e.g. In “Adobe Reader” or “Board Books”), clicking on the home symbol on the top right corner will bring you back to this slide. Click on any item in the table of contents to navigate to that section.14Audit quality13MisstatementsPage 10 of 115 4© 2025 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Audit highlightsStatusWe have completed the audit of the consolidated financial statements of The Corporation of Town of Aurora (“financial statements”), with the exception of certain remaining outstanding procedures, which are highlighted on the ‘Status’ slide of this report.Misstatements -CorrectedCorrected misstatements• Refer management representation letterMatters to report – see link for detailsNo matters to reportSignificant unusual transactionsSignificant risksOther risks of material misstatement Going concern mattersRisks and results&Significant unusual transactionsThe purpose of this report is to assist you, as a member of the Audit Committee, in your review of the results of our audit of the financial statements. This report is intended solely for the information and use of Management, the Audit Committee, and should not be used for any other purpose or any other party. KPMG shall have no responsibility or liability for loss or damages or claims, if any, to or by any third party as this report has not been prepared for, and is not intended for, and should not be used by, any third party or for any other purpose.Audit QualityLearn more about how we deliver audit quality. Significant changesSignificant changes since our audit planControl deficienciesSignificant deficienciesMisstatements -uncorrectedUncorrected misstatementsPolicies and practices&Specific topicsAccounting policies and practicesOther financial reporting mattersHighlightsAudit qualityAppendicesStatusRisks and resultsPolicies and practices• Refer management representation letterPage 11 of 115 5© 2025 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. StatusAs of June 4, 2025, we have completed the audit of the consolidated financial statements, with the exception of certain remaining procedures, which include amongst others:• Completing our discussions with the Audit Committee• Completion of audit quality control procedures• Obtaining evidence of the Council’s approval of the financial statements• Completion of subsequent event review procedures• Receipt of signed management representation letter (to be signed upon approval of the financial statements)We will update the Audit Committee, and not solely the Chair, on significant matters, if any, arising from the completion of the audit, including the completion of the above procedures.A draft of our auditor’s report is provided in Appendix: Draft Auditor’s Report.Learn moreOn our audit we used KCc to coordinate requests with management.HighlightsAudit qualityAppendicesStatusRisks and resultsPolicies and practicesPage 12 of 115 6© 2025 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. • Our procedures included:• testing of journal entries and other adjustments• performing a retrospective review of estimates•evaluating the business rationale of significant unusual transactions•evaluating the design and implementation and test operating effectiveness of selected relevant controls•taking a risk-based approach tailored to the City when designing substantive procedures and selecting specific transactions for testing•continue to make use of technology to extract our risk-based sample from the entire population of journal entries•continue to identify areas which may be subject to additional risk whether due to fraud or error in this regardSignificant riskEstimate?We highlight our significant findings in respect of significant risks.Significant risks and resultsNo issues identified as a result of the audit procedures. Management is in a unique position to perpetrate fraud because of its ability to manipulate accounting records and prepare fraudulent financial statements by overriding controls that otherwise appear to be operating effectively. Although the level of risk of management override of controls will vary from entity to entity, the risk nevertheless is present in all entities.NoRisk assessmentManagement Override of Controls (non-rebuttable significant risk of material misstatement)RISK OFFRAUDOur responseOur findings HighlightsAudit qualityAppendicesStatusRisks and resultsPolicies and practicesPage 13 of 115 7© 2025 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. • Our audit methodology incorporates the required procedures in professional standards to address the risk.• Our audit approach consists of evaluating the design and implementation and test operating effectiveness of selected relevant controls• We tested journal entries that meet specific criteria. These criteria are designed during the planning phase of the audit and are based on areas and accounts that are susceptible to manipulation through management override and we designed search filters that allowed us to identify any unusual journal entries.• As part of our audit approach to address the inherent risk of error in revenue recognition, we substantively tested revenues (both recognized and amounts held as deferred at year end). We also incorporated an element of uncertainty into the journal entries and revenue testing.Significant riskEstimate?We highlight our significant findings in respect of significant risks.Significant risks and resultsNo issues identified as a result of the audit procedures.The primary risk of fraudulent revenue recognition resides with manual journal entries for revenue recognition not in the normal course of business, specifically related to the management’s calculation of the deferred revenue-obligatory reserve fundsNoRisk assessmentPresumption of the risk of fraud involving improper revenue recognitionRISK OFFRAUDOur responseOur findings HighlightsAudit qualityAppendicesStatusRisks and resultsPolicies and practicesPage 14 of 115 8© 2025 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Other risks of material misstatement and resultsEmployee future benefits represent a liability computed by management’s actuarial experts. As the employee future benefits liabilities are significant and complex estimates, KPMG actuarial specialists were involved in completing the audit procedures.Our response• We assessed the participant data supplied by management to the actuary for completeness and accuracy.• We obtained the actuarial valuation report and engaged our KPMG actuarial specialist team to audit the method and assumptions applied in the valuation.• We evaluated the discount rate in comparison with rates issued by the Canadian Institute of Actuaries (“CIA”) and KPMG LLP.• We assessed the qualifications, competence, and objectivity of the actuary as required by the Canadian Auditing Standards.• We assessed the disclosures in the financial statements against the requirements of the PSAS.Yes – Employee future benefits obligation/liability Our findings• Based on our review of the report prepared by the actuary, we noted that the method applied for the estimate is acceptable per the Canadian Institute of Actuaries and Public Sector Accounting Standards (PSAS) 3250 Retirement Benefits. • We assessed the key assumptions used by the actuary in light of the Town’s financial results. We also performed a sideways glance to compare the assumptions used by the actuary for the Town with other Ontario municipalities and we did not note any significant differences. • We noted that the discount rate used by the actuary is a key assumption. Discount rates of 5.0% (2023 – 5.0%) were used for the determination of the liability. Our actuarial specialists assessed the discount rate and other assumptions using actuarial techniques and market data. Based on this evaluation, we concluded that the discount rates used are reasonable. • The disclosures included in the financial statements are in accordance with the requirements of the public sector accounting standards. • Based on the audit work performed, we did not note any issues related to the calculation of the Town’s employee benefits liability as at December 31, 2024. • The employee benefit liability as at December 31, 2024 are outlined in note 10 to the financial statements.Other risk of material misstatement Estimate?Employee benefits liabilities HighlightsAudit qualityAppendicesStatusRisks and resultsPolicies and practicesPage 15 of 115 9© 2025 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Other risks of material misstatement and resultsPSAS 3300 Contingent Liabilities requires that the Town recognize a liability when “it is likely that a future event will confirm that a liability has been incurred at the date of the financial statements; and the amount can be reasonably estimated.” At any point in time, the Town is subject to a number of matters which could potentially result in the determination of a contingent liability as defined above, including, but not limited to matters such as legal claims, etc. The Town has disclosed the self insurance liability in note 19 of the financial statements.Our response• We obtained and evaluated the Town’s assessments and claims listing that are used to develop and record these estimated liabilities. • We obtained a legal confirmation from internal legal counsel and evaluated the assessments made by internal legal counsel on the pending legal matters in terms of determination of likelihood and measurability. • We reviewed Council and committee meeting minutes to determine the completeness of contingencies and held discussions thereon with senior management, including internal legal representatives.Estimation uncertainty exists related to the likelihood and measurement of the contingent liability. However, this estimation uncertainty does not result in a risk of material misstatement. Our findings• We reviewed the listing of active litigation and potential claims provided by internal legal counsel and reviewed assessments of each matter and the process employed to develop and record the related estimated liabilities. Management has recorded an accrual based on the likely amounts of loss after accounting for insurance coverage.• As these items are resolved, it is possible that the final amounts recorded for these liabilities may change, however the amounts currently recorded represent management’s best estimates of exposure given the information presently available.• Based on the work performed, the contingent liabilities reported by the Town are reasonable.Other risk of material misstatement Estimate?ContingenciesHighlightsAudit qualityAppendicesStatusRisks and resultsPolicies and practicesPage 16 of 115 10© 2025 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Other risks of material misstatement and resultsTangible capital assets present the biggest non-financial asset for the Town. There is a risk of material misstatement related to the existence and accuracy of tangible capital assets and accuracy of timing of revenue recognition, particularly related to funds intended for tangible capital assets.Our response and findings• KPMG noted that certain assets were not transferred out of work-in-progress, to in-service, when they had been placed into service. • In response management performed a detailed assessment of their asset transfers for the year and assets in work-in-progress to identify items that should have been moved to tangible capital assets. As a result of this detailed assessment, management identified additional items that should be moved from work-in-progress to tangible capital assets with a corresponding adjustment related to the impact on depreciation. Secondly, an immaterial out of period adjustment was identified in the current year based on management’s assessment where they identified amounts recorded in work-in-progress in the prior year that should have been reported in expenses. Management has made all of these corrections through the current year statement of operations and statement of financial position. Ending balances of accumulated surplus and tangible capital assets as at December 31, 2024 are correct. • KPMG audited management’s assessment including an assessment of reasonability of the inputs to management’s calculations and completeness and accuracy of the information used for management’s assessment. We agree with management’s adjustments noted above and agree that due to the immaterial nature of the prior period adjustments, it is reasonable to report these adjustments through the current year financial statements. • The amounts reported for tangible capital assets are reasonable and disclosures in the financial statements are in accordance with the public sector accounting standards.Yes – limited to Contributed assets Other risk of material misstatement Estimate?Tangible capital assetsHighlightsAudit qualityAppendicesStatusRisks and resultsPolicies and practicesOur response• We tested, on a sample basis, the additions to tangible capital assets and noted that management has appropriately capitalized the additions including transfers from work in progress to tangible capital assets. We obtained assurance related to the accuracy and existence of these additions and also assessed if these additions met the criteria for capitalization. • We tested on a sample basis the work in progress to ensure amounts are properly transferred to correct capital asset classes and amortization commences on a timely basis.• We tested on a sample basis contributed and assumed assets to assess if these assets had been recognized at fair market value on the date of contribution. • We assessed financial statement note disclosure in line with the PSAS.• We obtained the Town’s amortization policy and assessed reasonableness of estimated useful lives. Page 17 of 115 11© 2025 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Other risks of material misstatement and resultsThe Town consolidates the following entities and organizations in the consolidated financial statements for the Town: • The Corporation of Aurora Public Library Board (the ‘Library Board’)Inter-departmental and inter-organizational transactions and balances are between these entities and organizations are eliminated. Our response and findings• The Library Board is considered a non-significant component to the Town’s financial statements. For the Library Board, there is a required statutory audit performed. The statutory audit is performed by the same audit team as for the main Town.• We obtained an understanding the consolidation process in place by management including the review and approval controls, checks and balances, and information system being utilized for the consolidation process and the financial reporting process. • We obtained the consolidation workbook from management and completed our audit procedures related to consolidation including elimination of inter-departmental and inter-organizational transactions, pick-up of government business enterprises and any other transactions that are relevant for consolidation. • Based on the work performed, we did not identify any issues or errors. NoOther risk of material misstatement Estimate?ConsolidationHighlightsAudit qualityAppendicesStatusRisks and resultsPolicies and practicesPage 18 of 115 12© 2025 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Accounting policies and practicesDescription of new or revised significant accounting policies and practicesNone in 2024Significant accounting policies are disclosed in Note 1 to the consolidated financial statementsInitial selection of significant accounting policies and practices The following new accounting standards came into effect for the year ended December 31, 2024 and were implemented by the Town:• PS 3160 Public private partnerships• PS 3400 Revenue• Public Sector Guidelines 8Impact on adoption of new accounting policies are disclosed in Note 2 to the consolidated financial statementsSignificant qualitative aspects Significant accounting policies are disclosed in Note 1 to the financial statementsEstimates and assumptions are disclosed in Note 1HighlightsAudit qualityAppendicesStatusRisks and resultsPolicies and practicesPage 19 of 115 13© 2025 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Uncorrected misstatementsUncorrected misstatements include financial presentation and disclosure omissions. As required by professional standards, we request these misstatements be corrected.Impact of uncorrected misstatements – Not material to the financial statements• Out of period error in the amount of $2,376,380 to reflect an error related to work-in-progress tangible capital assets that was corrected in the current year but should have been corrected in the prior year. Error pertains to items that were incorrectly capitalized to work-in-progress tangible capital assets when they should have been expensed. HighlightsAudit qualityAppendicesStatusRisks and resultsPolicies and practicesPage 20 of 115 14© 2025 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Audit quality -How do we deliver audit quality?Quality essentially means doing the right thing and remains our highest priority. Our Global Quality Framework outlines how we deliver quality and how every partner and staff member contributes to its delivery.The drivers outlined in the framework are the ten components of the KPMG System of Quality Management (SoQM). Aligned with ISQM 1/CSQM 1, our SoQM components also meet the requirements of the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA) and the relevant rules of professional conduct / code of ethics applicable to the practice of public accounting in Canada, which apply to professional services firms that perform audits of financial statements. Learn more about our system of quality management and our firm’s statement on the effectiveness of our SoQM: We define ‘audit quality’ as being the outcome when:•audits are executed consistently, in line with the requirements and intent of applicable professional standardswithin a strong system of quality management; and •all of our related activities are undertaken in an environment of the utmost level of objectivity, independence, ethics andintegrity. KPMG Canada Transparency ReportDoing the right thing. Always.HighlightsAudit qualityAppendicesStatusRisks and resultsPolicies and practicesPage 21 of 115 15© 2024 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. AppendicesARequired communications InsightsEDNew auditing standardsDraft Audit ReportBTechnologyFManagement Rep LetterCHighlightsAudit qualityAppendicesStatusRisks and resultsPolicies and practicesPage 22 of 115 16© 2025 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Appendix A: Other required communicationsEngagement termsA copy of the engagement letter and any subsequent amendments has been provided to the Audit Committee.CPAB communication protocolThe reports available through the following links were published by the Canadian Public Accountability Board to inform Audit Committees and other stakeholders about the results of quality inspections conducted over the past year:• CPAB Regulatory Oversight Report: 2023 Annual Inspections Results• CPAB Audit Quality Insights Report: 2024 Interim Inspections Results• CPAB Regulatory Oversight Report: 2024 Annual Inspections ResultsHighlightsAudit qualityAppendicesStatusRisks and resultsPolicies and practicesPage 23 of 115 17© 2025 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Required inquiries of the audit committee• Is the Audit Committee aware of any instances where the Company entered into any significant unusual transactions? • What is the Audit Committee’s understanding of the Company’s relationships and transactions with related parties that are significant to the Company?• Is the Audit Committee concerned regarding relationships or transactions with related parties? If so, what is the substance of those concerns?• Is the Audit Committee aware of or have they received tips or complaints regarding the Company’s financial reporting (including those received through the Audit Committee’s internal whistleblower program, if such programs exist)? If so, what was the Audit Committee’s responses to such tips and complaints?• Has the Company complied with all covenants during the financial statement period and before the date of the auditor's report?Have there been any events of default during the financial statement period and before the dates of the auditor's report?HighlightsRisk assessmentAppendicesAudit strategyIndependenceAudit strategy – Group auditAudit qualityKey milestones and deliverablesInquiries regarding risk assessment, including fraud risks• What are the Audit Committee’s views about fraud risks, including management override of controls, in the Company? And have you taken any actions to respond to any identified fraud risks?• Is the Audit Committee aware of, or has the Audit Committee identified, any instances of actual, suspected, or alleged fraud, including misconduct or unethical behavior related to financial reporting or misappropriation of assets? • If so, have the instances been appropriately addressed and how have they been addressed?• How does the Audit Committee exercise oversight over management’s assessment of fraud risk and the establishment of controls to address/mitigate fraud risks?• Is the Audit Committee aware of any instances of actual or possible violations of laws and regulations, including illegal acts (irrespective of materiality threshold)?• Is the Audit Committee aware of any correspondence with regulators or licensing authorities?• Is the Audit Committee aware of any additional matters relevant to the audit?Inquires regarding related parties and significant unusual transactionsInquiries regarding company processesPage 24 of 115 18© 2025 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Appendix B: Draft auditor’s reportSee draft auditors opinion as part of the financial statements under a separate cover. HighlightsAudit qualityAppendicesStatusRisks and resultsPolicies and practicesPage 25 of 115 19© 2025 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Appendix C: Management representation letterHighlightsAudit qualityAppendicesStatusRisks and resultsPolicies and practicesSee draft financial statements under a separate cover. Page 26 of 115 20© 2025 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Appendix D: Newly effective and upcoming changes to auditing standardsISA 600/CAS 600Effective for periods beginning on or after December 15, 2023Revised special considerations –Audits of group financial statementsHighlightsAudit qualityAppendicesStatusRisks and resultsPolicies and practicesPage 27 of 115 21© 2025 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Appendix E: Audit and assurance insightsKPMG Audit & Assurance InsightsCurated research and insights for audit committees and boards.Board Leadership CentreLeading insights to help board members maximize boardroom opportunitiesCurrent DevelopmentsSeries of quarterly publications for Canadian businesses including Spotlight on IFRS, Canadian Assurance & Related Services, Canadian Securities Matters, and US Outlook reports.Audit Committee Guide – Canadian EditionA practical guide providing insight into current challenges and leading practices shaping audit committee effectiveness in Canada.Sustainability ReportingResource centre on implementing the new Canadian reporting standardsIFRS Breaking News A monthly Canadian newsletter that provides the latest insights on accounting, financial reporting and sustainability reporting.Our latest thinking on the issues that matter most to Audit Committees, board of directors and management.Accelerate - The key issues driving the audit committee agendaDiscover the most pressing risks and opportunities that face audit committees, boards and management teams.HighlightsAudit qualityAppendicesStatusRisks and resultsPolicies and practicesPage 28 of 115 22© 2025 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. StandardizationEnhanced audit qualityData and techenablementCenter forAudit SolutionsNext-genauditorMethodology and ApproachQuality Management SystemExceptional experiencesIncreased efficiencyOur investment:We are in the midst of a five-year investment to develop our people, digital capabilities, and advanced technology.Responsive delivery modelTailored to you to drive impactful outcomes around the quality and effectiveness of our audits.Result: A better experienceEnhanced quality, reduced disruption, increased focus on areas of higher risk, and deeper insights into your business.CentralizationAutomationAppendix F: Continuous evolutionHighlightsAudit qualityAppendicesStatusRisks and resultsPolicies and practicesPage 29 of 115 23© 2024 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. https://kpmg.com/ca/en/home.html© 2024 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. Page 30 of 115 The Corporation of the Town of Aurora Consolidated Financial Statements For the year ended December 31, 2024 DRAFTAttachment 2 Page 31 of 115 The Corporation of the Town of Aurora Consolidated Financial Statements For the year ended December 31, 2024 Contents Independent Auditor’s Report...........................................................................................1 Consolidated Financial Statements ..................................................................................4 Consolidated Statement of Financial Position..................................................................4 Consolidated Statement of Operations and Accumulated Surplus.................................5 Consolidated Statement of Change in Net Financial Assets ...........................................6 Consolidated Statement of Change in Remeasurement Gains (Losses)........................7 Consolidated Statement of Cash Flows............................................................................8 Notes to the Consolidated Financial Statements..........................................................10 Schedule 1 – Consolidated Schedule of Segmented Disclosure...................................43DRAFTPage 32 of 115 1 Independent Auditor’s Report Page 1 of auditor’s report to be replaced DRAFTPage 33 of 115 Page 2 of auditor’s report to be replaced DRAFTPage 34 of 115 Page 3 of auditor’s report to be replaced DRAFTPage 35 of 115 The accompanying notes are an integral part of these consolidated financial statements 4 Consolidated Financial Statements The Corporation of the Town of Aurora Consolidated Statement of Financial Position December 31 2024 2023 (Dollar amounts presented in '000's) Financial assets Cash (note 4)$ 16,113 $ 17,231 Taxes receivable 15,251 13,861 User fees receivable 8,925 6,648 Accounts receivable 7,364 9,162 Investments (note 6) 128,492 154,795 176,145 201,697 Liabilities Loans payable (note 7) 12,200 10,921 Accounts payable and accrued liabilities 30,242 29,629 Deposits (note 8) 5,592 4,812 Deferred revenue (note 9) 39,733 59,026 Employee benefits liabilities (note 10) 2,344 2,161 Net long-term liabilities (note 11) 5,148 6,026 Asset retirement obligation liabilities (note 12) 447 394 95,706 112,969 Net financial assets 80,439 88,728 Non-financial assets Tangible capital assets (note 22) 624,573 582,581 Prepaid expenses 434 300 625,007 582,881 Accumulated surplus Accumulated remeasurement gains (losses) 598 (829) Accumulated surplus from operations (note 13) 704,848 672,438 $ 705,446 $ 671,609 Contingencies and contractual obligations (notes 19 and 20) Approved by Council Mayor Chief Administrative OfficerDRAFTPage 36 of 115 The accompanying notes are an integral part of these consolidated financial statements 5 The Corporation of the Town of Aurora Consolidated Statement of Operations and Accumulated Surplus For the year ended December 31 Budget 2024 2024 2023 (Dollar amounts presented in '000's)(note 5) Revenue Taxation (note 14)$60,502 $61,234 $57,883 User fees 87,222 68,786 54,989 Grants (note 15)7,937 7,635 7,707 Loss on tangible capital asset disposal -(21)(700) Contributed assets -8,779 21,999 Other (note 16)19,499 18,177 15,638 175,160 164,590 157,516 Expenses General government 21,253 21,848 19,921 Protection to persons and property 17,900 18,476 17,711 Transportation services 16,492 18,864 15,922 Environmental services 36,701 36,359 34,773 Leisure and cultural services 33,712 34,470 30,444 Planning and development 2,063 2,163 1,953 128,121 132,180 120,724 Annual surplus 47,039 32,410 36,792 Accumulated surplus, beginning of year 672,438 672,438 635,646 Accumulated surplus, end of year $719,477 $704,848 $672,438 DRAFTPage 37 of 115 The accompanying notes are an integral part of these consolidated financial statements 6 The Corporation of the Town of Aurora Consolidated Statement of Change in Net Financial Assets Budget For the year ended December 31 2024 2024 2023 (Dollar amounts presented in '000's)(note 5) Annual surplus $47,039 $32,410 $36,792 Amortization of tangible capital assets 24,377 24,418 23,719 Net proceeds on disposal of tangible capital assets 148 740 Loss on disposal of tangible capital assets 21 700 Acquisition of tangible capital assets (57,800)(32,714) Contributed assets (8,779)(21,999) Change in prepaid expenses (134)234 Change in net financial assets excluding net remeasurement gains 71,416 (9,716)7,472 Net remeasurement gain/(loss)1,427 (829) Change in net financial assets 71,416 (8,289)6,643 Net financial assets, beginning of year 88,728 88,728 82,085 Net financial assets, end of year $160,144 $80,439 $88,728 DRAFTPage 38 of 115 The accompanying notes are an integral part of these consolidated financial statements 7 The Corporation of the Town of Aurora Consolidated Statement of Change in Remeasurement Gains (Losses) Budget For the year ended December 31 2024 2024 2023 (Dollar amounts presented in '000's) Accumulated remeasurement losses, beginning of year $$(829)$- Unrealized gains (losses) on portfolio investments 1,427 (829) Accumulated remeasurement gains (losses), end of year $$598 $(829)DRAFTPage 39 of 115 The accompanying notes are an integral part of these consolidated financial statements 8 The Corporation of the Town of Aurora Consolidated Statement of Cash Flows For the year ended December 31 2024 2023 (Dollar amounts presented in '000s) Operating transactions Annual surplus $32,410 $36,792 Non-cash charges to operations: Amortization of tangible capital assets 24,418 23,719 Accretion for asset retirement obligation liabilities 19 19 Loss on disposal of tangible capital assets 21 700 Contributed assets (8,779)(21,999) Changes in non-cash operating working capital: Taxes receivable (1,390)(4,145) User fees receivable (2,277)(763) Accounts receivable 1,798 3,623 Accounts payable and accrued liabilities 613 9,258 Deposits 780 (4,269) Deferred revenue (19,293)(656) Employee benefit liabilities 183 180 Prepaid expenses (134)234 Total Operating Transactions 28,369 42,693 Investing transactions Acquisitions of tangible capital assets (57,800)(32,714) Net proceeds on disposal of tangible capital assets 148 740 Asset retirement obligations 34 15 Sale/(Purchase) of porfolio investments, net 27,730 14,545 Total investing trasactions (29,888)(17,414)DRAFTPage 40 of 115 The accompanying notes are an integral part of these consolidated financial statements 9 Financing transactions Advances / (principal repayments) on long-term liabilities (878)(4,067) Advances of loans payable 1,279 (14,655) Total financing transactions 401 (18,722) Increase (decrease in cash)(1,118)6,557 Cash, beginning of year 17,231 10,674 Cash, end of year $16,113 $17,231 DRAFTPage 41 of 115 10 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2024 (Dollar amounts presented in '000's) Notes to the Consolidated Financial Statements 1. Summary of Significant Accounting Policies The Corporation of the Town of Aurora (the “Town”) is a municipality in the Province of Ontario. The Town conducts its operations guided by the provisions of provincial statutes such as the Municipal Act, Municipal Affairs Act, and related legislation. Management's Responsibility The consolidated financial statements of the Town are the responsibility of management. They have been prepared in accordance with Canadian public sector accounting standards established by the Public Sector Accounting Board ("PSAB") of The Chartered Professional Accountants of Canada. Basis of Consolidation The consolidated financial statements reflect the assets, liabilities, revenue, expenditures and fund balances of the Town and the Aurora Public Library Board (the "Board"). The Board is accountable for the administration of its financial affairs and resources to the Town and it owned by the Town. All inter- organizational and inter-fund transactions and balances are eliminated. All inter-organizational and inter-fund transactions and balances are eliminated. Non-consolidated entities The following regional municipality and local boards are not consolidated and should be contacted directly if examination of their annual financial statements is desired: ·The Regional Municipality of York ("York Region"); ·The York Region District School Board; ·The York Catholic District School Board; ·Aurora Business Improvement Area Inc. The Town collects and administers tax levies on behalf of these entities. These tax levies are not recorded in the Town's financial statements.DRAFTPage 42 of 115 11 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2024 (Dollar amounts presented in '000's) 1. Summary of Significant Accounting Policies (continued) Basis of Accounting Revenue and expenses are reported on the accrual basis of accounting whereby revenue is recognized as it is earned and measurable; and expenses are recognized in the period that goods and services are acquired, a liability is incurred, or transfers are due. Cash Cash and cash equivalents are comprised of cash on hand, cash held in financial institutions and temporary investments with maturities of 90 days or less. Government Transfers Government transfers, which include legislative grants, are recognized in the consolidated financial statements in the period in which the events giving rise to the transfers occur, providing the transfers are authorized, any eligibility criteria have been met, and reasonable estimates of the amounts can be made, except to the extent possible that the transfer stipulations give rise to an obligation that meets the definition of a liability. Transfers are recognized as deferred revenue when transfer stipulations give rise to a liability. Transfer revenue is recognized in the consolidated statement of operations as the stipulated liabilities are settled.DRAFTPage 43 of 115 12 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2024 (Dollar amounts presented in '000's) 1. Summary of Significant Accounting Policies (continued) Financial Instruments PS 3450 Financial Instrument establishes standards on how to account for and report all types of financial instruments including derivatives. Financial instruments include primary instruments (such as receivables, payables, and equity instruments) and derivative financial instruments (such as financial options, futures and forwards, interest rate swaps and currency swaps). The Town’s investments in Principal Protected Notes (PPN) meet the requirements of a financial instrument that has an embedded derivative included in the financial instrument. The standards allow for the financial instruments that contain one or more embedded derivatives; the Town may designate the entire hybrid (combined) instrument carried at fair value. This designation is irrevocable. The Town has made an election for the PPN to report the combined instrument at fair value. Any unrealized gains and losses are reported through a new statement called statement of remeasurement gains and losses. Unrealized gains and losses are realized upon settlement of the financial instrument when the financial instrument is sold or reaches maturity. Tangible Capital Assets Tangible capital assets are non-financial assets that are not generally available to discharge existing liabilities and are held for use in the provision of services. They have useful lives extending beyond the current year and are not intended for sale in the ordinary course of operations. Tangible capital assets are recorded at cost, less accumulated amortization. Cost includes all costs directly attributable to acquisition, construction, development or betterment of the tangible capital asset including transportation costs, installation costs, design and engineering fees, legal fees, and site preparation costs. Contributed tangible capital assets are recorded at fair value at the time of the donation, with a corresponding amount recorded as revenue. Amortization is recorded on a straight-line basis over the estimated life of the tangible capital asset using the following rates.DRAFTPage 44 of 115 13 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2024 (Dollar amounts presented in '000's) 1. Summary of Significant Accounting Policies (continued) Tangible Capital Assets (continued) General Buildings 10 - 50 years Landscaping & Other 5 - 20 years Vehicles 7 - 15 years Computer and other 4 - 10 years Machinery and Equipment 7 - 20 years Library Collection 7 years Facilities (excluding Buildings)5 - 50 years Infrastructure Roads 20 - 36 years Signage 1 - 36 years Underground and Other Networks 15 - 100 years Bridges and Other Structure 15 - 40 years One half of the annual amortization is charged in the year of acquisition and in the year of disposal. Tangible capital assets under construction are not amortized until such a time that they are available for productive use. Tangible capital assets are reviewed for impairment whenever events or changes in circumstances indicate that a tangible capital asset no longer contributes to the Town's ability to provide goods and services or that the value of the future economic benefits associated with the tangible capital assets is below the carrying value. Tangible capital assets to be disposed of would be separately presented in the statement of financial position and reported at the lower of carrying amount or fair market value less costs to sell and are no longer amortized. The tangible capital assets classified as held-for-sale would be presented separately in the appropriate asset section of the statement of financial position. No impairment was identified during the year.DRAFTPage 45 of 115 14 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2024 (Dollar amounts presented in '000's) 1. Summary of Significant Accounting Policies (continued) Asset Retirement Obligation Liabilities An asset retirement obligation liability is recognized when, as at the financial reporting date, all the following criteria are met: There is a legal obligation to incur retirement costs in relation to a tangible capital asset; ·The past transaction or event giving rise to the liability has occurred; ·It is expected that future economic benefits will be given up; and ·A reasonable estimate of the amount can be made. The Town ARO liability stems from the removal of asbestos in several of the buildings owned by the Town. The ARO liability for removal of asbestos has been based on actual demolition cost of a building containing asbestos and has been recognized under modified retroactive method. The Town has also identified associated costs related to the asbestos disposal and calculated a cost per square foot, which was applied to the remaining buildings built before 1990. Where renovations had taken place, the gross area of the structure was pro-rated to account for partial abatement. Assumptions used in the calculations are revised on an annual basis. The liability is discounted using a present value calculation and adjusted annually for accretion expense. The recognition of a liability resulted in an accompanying increase to the respective tangible capital assets. The buildings tangible capital assets affected by the asbestos liability are being amortized with the building following the amortization accounting policies outlined in note.DRAFTPage 46 of 115 15 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2024 (Dollar amounts presented in '000's) 1. Summary of Significant Accounting Policies (continued) Non-pension Post-employment Benefits, Compensated Absences &Termination Benefits The Town accrues its obligations under employee benefit plans as the employees render the services necessary to earn employee future benefits. The Town has adopted the following valuation methods and assumptions: a) Actuarial cost method: Accrued benefit obligations are computed using the projected benefit method prorated on service, as defined in PSAB 3250 and PSAB 3255. The objective under this method is to expense each member's benefit under the plan taking into consideration projections of benefit costs to and during retirement. Under this method an equal portion of total estimated future benefit is attributed to each year of service. b) Accounting policies: Actuarial gains and losses are amortized on a linear basis over the expected average remaining service life ("EARSL") (expected remaining payment period in respect of the retiring allowance) of members expected to receive benefits under the plan, with amortization commencing in the period following the determination of the gain or loss. Obligations are attributed to the period beginning on the member's date of hire and ending on the expected date of termination, death or retirement, depending on the benefit value. c) Workplace Safety and Insurance Board (WSIB): The costs of WSIB obligations are actuarially determined and are expensed in the period they occur. Any actuarial gains and losses that are related to WSIB benefits are recognized immediately in the period they arise.DRAFTPage 47 of 115 16 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2024 (Dollar amounts presented in '000's) 1. Summary of Significant Accounting Policies (continued) Pension agreements The Town makes contributions to the Ontario Municipal Employees' Retirement System ("OMERS"), a multi-employer public sector pension fund, based on the principles of a defined benefit plan, which specifies the amount of the retirement benefit to be received by the employees on the basis of predefined retirement age, length of eligible service and rates of remuneration over a fixed period of time. Because OMERS is a multi-employer pension plan, any pension plan surpluses or deficits are a joint responsibility of all participating Ontario municipalities and their employees. As a result, the Town does not recognize any share of the OMERS pension surplus or deficit. Accordingly, contributions made during the year are expensed. Deposits The Town receives deposits on building permits and site plan applications that ensure restitution of any potential damage caused by the developer. These deposits are held in trust until the work has been completed, at which point in time, the deposit is returned. Deferred Revenue Deferred revenue represents user charges and fees which have been collected, but for which the related services have yet to be performed. These amounts will be recognized as revenue in the fiscal year the services are performed. The Town receives development charges under the authority of provincial legislation and Town by-laws. These funds, by their nature, are restricted in their use and, until applied to specific capital works, are recorded as deferred revenue (formerly obligatory reserve funds).DRAFTPage 48 of 115 17 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2024 (Dollar amounts presented in '000's) 1. Summary of Significant Accounting Policies (continued) Use of Estimates The preparation of financial statements in accordance with Canadian public sector accounting standards requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The principal estimates used in the preparation of these financial statements are the allowance for doubtful accounts, taxes receivable, post-employment benefits liabilities, accrued liabilities, the net amount of development charges, the estimated useful lives of tangible capital assets, fair value of contributed assets and valuation of tangible capital assets. Actual results could differ from management's best estimates as additional information becomes available in the future. Contributed Assets Subdivision streets, lighting, sidewalks, drainage, and other infrastructure and in some instances park fixtures and trail networks are required to be provided by subdivision developers. Upon completion they are assumed by the Town and recorded at fair value at the date of assumption. The Town is generally not involved in the construction of these assets. In some instances, the Town may construct these assets on the developer's behalf on a fully cost recoverable basis. Under either scenario the Town does not budget for the contributions from the developer or the capital expenditure.DRAFTPage 49 of 115 18 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2024 (Dollar amounts presented in '000's) 1. Summary of Significant Accounting Policies (continued) Revenue Recognition Revenues are recognized as follows: a) Taxation revenue is recognized as revenue when it is authorized and the taxable event occurs. For property taxes, the taxable event is the period for which the tax is levied. Related penalties and interest are recognized as revenue in the year that they are earned. As the Town's total taxes receivable are based on management's best estimates at the time, it is possible for the final amount collected to differ as a result of property value reassessments arising from audits, appeals or court decisions. b) User fees and other revenues are reported when a performance obligation has been satisfied through the delivery of a good or service or when authority to claim or retain an economic inflow exists and a past transaction or event that gives rise to an asset has been identified. c) Grants - Conditional grant revenue is recognized to the extent the conditions imposed on it have been fulfilled. - Unconditional grant revenue is recognized when monies are receivable. d)Investment income earned on surplus funds is reported as revenue in the period earned. Investment income earned on deferred revenue amounts such as development charges and parkland allowances, is added to the associated funds and forms part of the respective deferred revenue balance. Investment income earned on the Town's reserve fund balances is added to the associated funds and forms part of the respective period ending reserve fund balance. Reserve fund balances in a debit (over-allocated) position are similarly charged interest. e) Development related fees and charges are recognized over the period of services or when required expenses occur if applicable, net of development. DRAFTPage 50 of 115 19 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2024 (Dollar amounts presented in '000's) 2. Future Accounting Pronouncements These standards and amendments were not effective for the year ended December 31, 2024 and have therefore not been applied to these Consolidated Financial Statements. Management is currently assessing the impact of the following accounting standards updates on the future Consolidated Financial Statements. PS 1202 Financial Statement Presentation was approved in March 2023. This standard supersedes PS 1201 - Financial Statement Presentation and covers a new conceptional framework and reporting model. Prior period amounts would need to be restated to conform to the presentation requirements for comparative financial information. This standard is effective for fiscal years beginning on or after April 1, 2026 (the first effective year for the Town is being the year ending December 31, 2027). PS 3251 Employee Benefits will replace PS 3250 - Retirement Benefits and PS 3255 – Postemployment Benefits, Compensated Absences and Termination Benefits. The proposed standard is currently undergoing discussions where further changes are expected as a result of the re-exposure comments. Effective date is currently not determined.DRAFTPage 51 of 115 20 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2024 (Dollar amounts presented in '000's) 3. Adoption of New Accounting Standards PS 3160 On January 1, 2024, the Town adopted 3160 – Public Private Partnerships ("P3"). This new accounting standard identifies requirements on how to account for and disclose transactions in which public sector entities procure major infrastructure assets and/or services from private sector entities. Recognition of assets arising from P3 arrangements is ultimately dependent on whether public sector entities control the purpose and use of the assets, access to the future economic benefits and exposure to the risks associated with the assets, and significant residual interest in the asset, if any, at the end of the P3 term. Measurement of the asset and related liability will also be dependent on the overall model used to compensate the private sector entity. The Town adopted the standard prospectively. The implementation of this new standard did/did not result in identification of transactions that would meet the definition of P3. PS 3400 On January 1, 2024, PSAS 3400 – Revenue became effective. This new accounting standard establishes how to account for and report on revenue. Specifically, it differentiates between revenue arising from transactions that include performance obligations and those that do not. The Town already recognizes revenue from these exchange transactions when it satisfies its performance obligations. Adoption of this standard has resulted in no change in the Town’s financial statements. Public Sector Guideline 8 On January 1, 2024, the Town adopted Public Sector Guideline 8 – Purchased Intangibles. This new guideline allows public sector entities to recognize intangibles purchased through an exchange transaction. The Town adopted the standard prospectively. The implementation of this new standard did not result in identification of assets that would meet the definition of purchased intangibles.DRAFTPage 52 of 115 21 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2024 (Dollar amounts presented in '000's) 4. Cash The Town's bank accounts are held at a chartered bank. The bank accounts earn interest at composite prime rate minus 1.95%. As at December 31, 2024, the rate is 3.50% (2023 – 5.25%). The Town has an overdraft credit facility agreement with a chartered Bank, to be used for day to day operations. The maximum credit limit is $1,000 with interest calculated using the composite prime rate minus 0.25%. As at December 31, 2024, the rate is 5.00% (2023 – 7.20%) and the outstanding balance is $Nil (2023 - $Nil). The Town has letters of credit outstanding with the bank as at December 31, 2024 of $486,208 (2023 - $486,208), which were required by its utilities provider for security on a development project.DRAFTPage 53 of 115 22 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2024 (Dollar amounts presented in '000's) 5. Budget Reconciliation The Budget for 2024 adopted by Council on December 12, 2023 was prepared on a basis not consistent with that used to report actual results (Canadian public sector accounting standards). The budget was prepared on a modified accrual basis, while Canadian public sector accounting standards now require financial statements to be prepared on a full accrual basis. Accordingly, the budget expensed all tangible capital expenditures rather than including amortization expense. As a result, the budget figures presented in the statements of operations and change in net financial assets represent the 2024 budget adopted by Council with adjustments as follows: Revenue Expense Net Council approved budget: Operating - Town & Library $83,530 $83,530 $ - Operating - water /sewer 35,111 35,111 - Capital (for multiple years)36,929 (36,929) Total Council approved budget 118,641 155,570 (36,929) Less: Multiple years capital (36,929) 36,929 debt principal payment 1 (877) 877 Plus: Non-TCA capital 2,200 (2,200) transfers to/from other funds2 (3,638) (16,220) 12,582 transfers from deferred revenue 60,157 60,157 amortization expense3 24,377 (24,377) Adjusted budget per the consolidated statement of operations $175,160 $128,121 $47,039 DRAFTPage 54 of 115 23 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2024 (Dollar amounts presented in '000's) 5. Budget Reconciliation (continued) 1 “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 under accrual accounting. 2 'Transfers to/from other funds" represents transfer to/from reserves for expenditures and is not considered a revenue source under accrual accounting. 3 Under accrual accounting, costs related to the acquisition of "Tangible Capital Assets" are recorded on the balance sheet - only the amortization of existing Tangible Capital Assets is included as an expense. 6. Financial Instruments All financial instruments must be classified in accordance with the significance of the inputs used in making fair value measurements. The fair value hierarchy prioritizes the valuation techniques used to determine the fair value of a financial instrument based on whether the inputs to those techniques are observable or unobservable: ·Level 1: when valuation can be based on quoted prices in active markets for identical assets and liabilities; ·Level 2: when they are valued using quoted prices for similar assets and liabilities, quoted prices in markets that are not active, or models using inputs that are observable; and ·Level 3: when their values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable.DRAFTPage 55 of 115 24 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2024 (Dollar amounts presented in '000's) 6. Financial Instruments (continued) Fair value inputs are taken from observable markets where possible, but if they are unavailable, judgement is required in establishing fair value. The Town's fair value hierarchy is classified as Level 2 for PPN. The classification for disclosure purposes has been determined in accordance with generally accepted pricing models, based on discounted cash flow analysis, with the most significant inputs being the contractual terms of the instrument and the market discount rates that reflect the credit risk of counterparties. All other financial instruments are classified as Level 1. The carrying amount of cash & cash equivalents, investments, property tax receivables, accounts receivable, customer deposits, accounts payable and accrued liabilities, employee future benefits liabilities, long-term liabilities, and contract holdbacks approximate their fair value due to the short-term maturity of these financial instruments. The carrying value and fair value of the Corporation’s other financial instruments are as follows: 2024 2023 Carrying Value Fair Value Carrying Value Fair Value Assets: Level One: Portfolio investments $ 83,683 $ 84,503 $ 94,116 $ 92,930 Bonds 1,624 2,369 2,374 2,226 GICs 31,841 33,205 39,887 39,932 Level Two: Principal protected notes 11,344 11,344 18,418 18,418 $ 128,492 $ 131,421 $ 154,795 $ 153,506 DRAFTPage 56 of 115 25 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2024 (Dollar amounts presented in '000's) 6. Financial Instruments (continued) Credit Risk Credit risk is the risk of a financial loss to the Town if a customer or counterparty to a financial instrument fails to meet its contractual obligations. Such risks arise principally from certain financial assets held by the Town consisting of accounts receivables. As at December 31, 2024 there were no significant balances of accounts receivable due from any single customer. There were no write-offs during the year including any for the write offs related to section 354 of the Municipal Act, 2001 which was approved by the Town Council. The Town actively monitors accounts receivable and has the right to enforce payment as per the contract. Liquidity Risk Liquidity risk is the risk that the Town will not be able to meet its obligations as they become due. The Town’s objective is to have sufficient liquidity to meet these liabilities when due. The Town monitors its cash balance and cash flows generated from operations to meet its liquidity requirements. DRAFTPage 57 of 115 26 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2024 (Dollar amounts presented in '000's) 6. Financial Instruments (continued) 2024 Carrying Value Within 1 Year 1-5 Years Later than 5 Years Total Liabilities Loans payable $ 12,200 $ 12,200 - - $ 12,200 Accounts payable and accrued liabilities 30,242 30,242 - - 30,242 Deposits 5,592 2,181 3,411 - 5,592 Net long-term liabilities 5,148 904 1,461 2,783 5,148 $ 53,182 $ 45,527 $ 4,872 $ 2,783 $ 53,182 2023 Carrying Value Within 1 Year 1-5 Years Later than 5 Years Total Liabilities Loans payable $ 10,921 $ 10,462 $ 459 - $ 10,921 Accounts payable and accrued liabilities 29,629 29,629 - - 29,629 Deposits 4,812 1,873 2,939 - 4,812 Net long-term liabilities 6,026 877 2,097 3,052 6,026 $ 51,388 $ 42,841 $ 5,495 $ 3,052 $ 51,388 DRAFTPage 58 of 115 27 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2024 (Dollar amounts presented in '000's) 6. Financial Instruments (continued) Market Risk Market risk is the risk that changes in market price, such as foreign exchange rates, interest rates and other price risks, will affect the Town’s net results of operations or the fair value of its holdings of financial instruments. ·Foreign currency risk – the Town is not exposed to any significant currency risk due to limited foreign currency transactions. ·Interest rate risk – the Town limits its exposure to interest rate risk by issuing long-term fixed rate debt in the form of debentures, and promissory notes. At December 31, 2024, the Town did not hold financial assets or financial liabilities that expose it to significant variation in cash flow due to fluctuations in interest rates. 7. Loans payable For the purposes of constructing Town Square consisting of a new multi-purpose building, new outdoor square, bridge between the existing library and new multipurpose building and enhancements to existing nearby buildings, the Town arranged for a construction line of credit (LOC #1) through Infrastructure Ontario on October 19, 2020. This line of credit is fully open with no security covenant or other conditions, bears a monthly variable interest rate and interest is paid monthly. As of December 31, 2024, the interest rate is 4.20% (2023 – 5.61%). This line of credit is to be refinanced within 120 days of completion of the project. It is the Town's intent to refinance any balance remaining on its line of credit upon substantial completion of this project, which was September 20, 2024. As of December 31, 2024, the outstanding balance on the Aurora Town Square construction line of credit (LOC #1) is $4,000 (2023 - $10,462). DRAFTPage 59 of 115 28 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2024 (Dollar amounts presented in '000's) 7. Loans payable (continued) Further, for the purpose of constructing a new gymnasium at the Town’s Stronach Aurora Recreation Centre, the Town arranged for a second construction line of credit (LOC #2) through Infrastructure Ontario on June 7, 2021. This line of credit is fully open with no security covenant or other conditions, bears a monthly variable interest rate and interest is paid monthly. As of December 31, 2024, the interest rate is 4.20% (2023 – 5.61%). This line of credit is to be refinanced within 120 days of completion of the project. It is the Town's intent to refinance any balance remaining on its line of credit upon substantial completion of this project, which was February 13, 2025. As of December 31, 2024, the outstanding balance of the Stronach Aurora Recreation Centre gymnasium construction line of credit (LOC#2) is $8,200 (2023 - $459). 8. Deposits 2024 2023 Opening balance 4,812 9,081 Receipts 1,480 1,965 Refunds (700) (6,234) Ending balance 5,592 4,812 DRAFTPage 60 of 115 29 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2024 (Dollar amounts presented in '000's) 9. Deferred Revenue 2024 Beginning Ending Balance Inflows Outflows Balance Development charges $ 23,391 $ 7,182 $(7,776)$ 22,797 Other developer revenue - 1,050 (143) 907 Parkland purposes 26,416 1,056 (16,343) 11,129 Canada Community Building Fund 2,004 2,038 (3,800) 242 Revenue deferral - general 6,293 28,526 (30,949) 3,870 Other grants 922 1,552 (1,686) 788 $ 59,026 $ 41,404 $(60,697)$ 39,733 2023 Beginning Ending Balance Inflows Outflows Balance Development charges $ 23,893 $ 6,951 $(7,453)$ 23,391 Parkland purposes 25,127 4,916 (3,627) 26,416 Canada Community Building Fund 3,667 1,937 (3,600) 2,004 Revenue deferral - general 5,462 29,195 (28,364) 6,293 Other grants 1,533 369 (980) 922 $ 59,682 $ 43,368 $(44,024)$ 59,026 DRAFTPage 61 of 115 30 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2024 (Dollar amounts presented in '000's) 10.Employee Benefit Liabilities 2024 2023 Post-employment benefits $1,179 $1,172 Accrued sick leave 833 777 2,012 1,949 WSIB benefits 332 212 $2,344 $2,161 Post-employment Benefits and Accrued Sick Leave Post-employment benefits are health and dental benefits that are provided to early retirees and employees currently on a long-term disability. The Town recognizes these post- employment costs as they are earned during the employee's tenure of service. The accrued benefit obligations for the Town’s post-employment benefits and accrued sick leave liabilities as at December 31, 2024 are as follows: 2024 2023 Accrued benefit obligation, beginning of year $ 2,187 $ 2,153 Add: Benefit expense 139 129 Interest cost 66 65 Less: Benefits paid for the period (163) (160) Accrued benefit obligation, end of year 2,229 2,187 Unamortized actuarial losses (217) (238) Accrued benefit liability $2,012 $1,949 DRAFTPage 62 of 115 31 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2024 (Dollar amounts presented in '000's) 10.Employee Benefit Liabilities (continued) Post-employment Benefits and Accrued Sick Leave (continued) The accrued benefit obligations for the Town's post-employment benefits liability and accrued sick leave as at December 31, 2024 are based on actuarial valuations for accounting purposes as at December 31, 2022 with projections to December 31, 2025. These actuarial valuations were based on assumptions about future events. The economic assumptions used in these valuations are management's best estimates of expected rates of: 2024 2023 Expected future inflation rates 2.00%2.00% Discount on accrued benefit obligations 5.00%5.00% Drug costs escalation 5.67%6.00% Other health care costs escalation 5.67%6.00% Dental costs escalation 4.00%4.00% Amortization of actuarial losses during the year was $ 21 (2023 - $21). The value of benefits paid by the Town during the year was $83 (2023 - $84). Workplace Safety and Insurance Board (WSIB) benefits The Town is a Schedule 2 employer under the Workplace Safety and Insurance Act and, as such, assumes responsibility for financing its workplace safety and insurance costs. The accrued WSIB benefit obligations for the Town's WSIB benefits liability as at December 31, 2024 are based on actuarial valuations for accounting purposes as at December 31, 2022 with projections to December 31, 2025. These actuarial valuations were based on assumptions about future events.DRAFTPage 63 of 115 32 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2024 (Dollar amounts presented in '000's) 11.Net Long-term Liabilities 2024 2023 Debenture, bearing interest at 2.65%, maturing in July 2041. Principal and interest is repayable in semi-annual installments of $109.$2,975 $ 3,111 Debenture, bearing interest at 2.42%, maturing in July 2036. Principal and interest is repayable in semi-annual installments of $64.1,324 1,419 Debenture, bearing interest at 2.29%, maturing in March 2026. Principal and interest is repayable in semi-annual installments of $184.539 888 Debenture, bearing interest at 4.37%, maturing in September 2025. Principal and interest is repayable in semi-annual installments of $160.310 608 $5,148 $6,026 Principal repayments for each of the next five years and thereafter are as follows: 2025 $904 2026 425 2027 249 2028 256 2029 262 Thereafter 3,052 $5,148DRAFT Page 64 of 115 33 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2024 (Dollar amounts presented in '000's) 11.Net Long-term Liabilities (continued) The interest expense related to the above long-term debt was $157 (2023 - $229). The Town's debenture maturing in September 2025 was issued by The Regional Municipality of York in the name of the Town to fund the construction of a recreation complex. The remaining three debentures were issued by Infrastructure Ontario in the name of the Town of Aurora to fund the Town's conversion of all streetlights to LED, construction of Hallmark Baseball Diamonds and purchase and fit-up of the Aurora Sports Dome, respectively. These long-term liabilities have been approved by municipal and regional by-laws. The annual principal and interest payments required to service these liabilities are within the annual debt repayment limit prescribed by the Ministry of Municipal Affairs and Housing. 12.Asset Retirement Obligation Liabilities The Town’s asset retirement obligation liabilities consist of the following: Opening balance, December 31, 2023 $ 394 Accretion for asset retirement obligation in the year 19 Additional asset retirement obligation recognized in the year 34 Closing balance, December 31, 2024 $ 447 DRAFTPage 65 of 115 34 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2024 (Dollar amounts presented in '000's) 13.Accumulated Surplus From Operations Accumulated surplus is comprised of the following: 2024 2023 Non financial surpluses General revenue $ (4,841)$ (4,752) Invested in tangible capital assets 624,573 582,581 Less: financed by liabilities (17,348) (16,947) Total non-financial surpluses 602,384 560,882 Reserves set aside by Council for infrastructure Infrastructure sustainability - water rate funded 34,746 30,083 Infrastructure sustainability - tax rate funded 35,130 32,686 69,876 62,769 Reserve funds, set aside for specific purposes by Council 31,063 34,845 Proceeds of sale of Aurora Hydro 2,123 13,113 Total reserves and reserve funds 103,062 110,727 Less: Accumulated remeasurement gains (losses) 598 (829) Accumulated surplus from operations $704,848 $672,438 DRAFTPage 66 of 115 35 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2024 (Dollar amounts presented in '000's) 14.Net Taxation 2024 2023 Gross taxes levied $113,065 $108,142 Less amounts levied on behalf of: Boards of Education 42,494 41,369 Regional Municipality of York 70,496 66,754 Aurora Business Improvement Area 75 19 Net taxes levied for the Town $61,234 $57,883 15.Grants Revenue 2024 2023 Federal $3,948 $3,840 Provincial 3,046 3,032 Other 641 835 $7,635 $7,707 16.Other Revenue 2024 2023 Penalties and interest on taxes $2,126 $1,725 Fines 354 324 Licenses, permits and fees 6,148 7,495 Interest income 5,173 5,739 Other 4,376 355 $18,177 $15,638DRAFTPage 67 of 115 36 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2024 (Dollar amounts presented in '000's) 17.Pension Agreements OMERS provides pension services to almost 640,000 active and retired members and their approximately 1,000 employers. Each year an independent actuary determines the funding status of OMERS Primary Pension Plan (the Plan) by comparing the actuarial value of invested assets to the estimated present value of all pension benefits that members have earned to date. The most recent actuarial valuation of the Plan was conducted at December 31, 2024. The results of this valuation disclosed total actuarial liabilities of $136,185 million in respect of benefits accrued for service with actuarial assets at that date of $131,983 million indicating an actuarial deficit of $4,202 million. Because OMERS is a multi-employer plan, any pension plan surpluses or deficits are a joint responsibility of Ontario municipal organizations and their employees. As a result, the town does not recognize any share of the OMERS pension surplus or deficit. Contributions in 2024 ranged from 9.0% to 14.6% depending on the level of earnings. As a result, $2,998 (2023 - $2,754) was contributed to OMERS for current year services. 18.Insurance Coverage The Town is self-insured for insurance claims up to $10 for any individual claim and for any number of claims arising out of a single occurrence. Claim costs during the year amounted to $123 (2023 - $131). The Town has made provisions for reserves for self-insurance claims under $10 to be used for those claims that exceed the sum provided for in the annual budget. These reserves are reported on the Financial Statement Operations and Accumulated Surplus under reserves set aside by Council. In 2013, the Insurance stand alone reserve was collapsed into the Town's general Tax Rate Stabilization Reserve; this reserve will be similarly accessible for this purpose. The balance of the Tax Rate Stabilization Reserve as of December 31, 2024 was $6,405 (2023 – $6,890).DRAFTPage 68 of 115 37 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2024 (Dollar amounts presented in '000's) 19.Contingencies The Town is subject to various legal claims arising in the normal course of its operations. The ultimate outcome of these claims cannot be determined at this time; therefore, no amounts have been recorded in these financial statements. The Town's management believe that the ultimate disposition of these matters will not have a material adverse effect on its financial position. 20.Contractual Obligations The Town committed contractual obligations on major capital projects of approximately $21,160 during 2024, which have various contract completion dates. Effective January 1, 2002, the Town entered into an agreement with the Town of Newmarket with respect to the provision of Fire and Emergency services. Under the Agreement, the Town of Newmarket assumed responsibility for the combined Central York Fire Services. The cost of these services is shared between the two municipalities on the basis of a pre-defined cost sharing formula. The Town's share of costs for the year was $13,071 (2023 - $12,723).DRAFTPage 69 of 115 38 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2024 (Dollar amounts presented in '000's) 21.Segmented Information The Town is a diversified municipal government institution that provides a wide range of services to its citizens. Distinguishable functional segments have been separately disclosed in the Consolidated Schedule of Segmented Disclosure. The nature of the segments and the activities they encompass are as follows: Governance Government This functional segment includes The Mayor's office and Council, CAO Office, Legislative Services, Legal, Communication, Information Technology and Financial Services, and all other support services. Protection to Persons and Property Protection to persons and property comprises of fire and emergency services provided to the residents of Aurora and Newmarket by Central York Fire Services. The cost paid by the Town for these services is described in Note 20. This segment also includes building, bylaw and licensing services. The Town issues a variety of licenses and permits to ensure an acceptable quality of building construction and maintenance of properties is achieved through enforcement of construction codes, building standards and by-laws for the protection of occupants. It enforces all zoning by-laws and the processing of building permit applications. Transportation Services This segment represents the reconstruction, repair, maintenance works and winter control services provided to the Town's roads, sidewalks, street lighting, walkways and bridges. Environmental Services This segment represents the water/sewer services and waste management services provided by the Public Works Department.DRAFTPage 70 of 115 39 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2024 (Dollar amounts presented in '000's) 21.Segment Information (continued) Leisure and Cultural Services This segment combines the services of Parks & Recreation, Facilities, and Public Library Services. Parks & Recreation provides community programs and special events. Facilities maintains numerous recreation facilities and community spaces as well as making them available for booking and community use. It also maintains parks and playgrounds, open spaces, and a vast trail system. Public Library Services covers the administration and operations of the Town’s libraries. Planning & Development This functional segment manages the Town's urban development through the development application process. It also oversees community economic development, environmental concerns, heritage matters, local neighbourhoods, and the Town's Official Plan.DRAFTPage 71 of 115 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2024 (Dollar amounts presented in '000's) 40 22.Tangible Capital Assets 2024 General Infrastructure Total Land Buildings Vehicles Computer and other Facilities Roads Underground and Other Networks Bridges and Other Structures Assets Under Construction Cost Balance, beginning of year $115,363 $141,051 $15,861 $10,412 $49,294 $155,710 $286,943 $28,865 $61,091 $864,592 Add: Additions 13,811 43,022 1,496 3,269 15,340 4,844 11,150 2,912 (38,044)57,800 Add: Contributed Assets -5 62 415 -1,979 4,968 1,350 -8,779 Less: Disposals (5)(6)(631)(432)-(359)(72)(188)(1,693) Balance, end of year 129,169 184,072 16,788 13,664 64,634 162,174 302,989 32,939 23,047 929,478 Accumulated amortization Balance, beginning of year -67,896 8,368 7,469 17,458 62,751 98,905 19,164 -282,011 Add: Amortization -6,620 1,284 1,148 2,365 6,560 5,370 1,071 -24,418 Less: Disposals -(6)(608)(432)-(254)(40)(184)-(1,524) Balance, end of year -74,510 9,044 8,185 19,823 69,057 104,235 20,051 -304,905 Net book value of tangible capital assets $129,169 $109,562 $7,744 $5,479 $44,811 $93,117 $198,754 $12,888 $23,047 $624,573DRAFTPage 72 of 115 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2024 (Dollar amounts presented in '000's) 41 22.Tangible Capital Assets (continued) 2023 General Infrastructure Total Land Buildings Vehicles Computer and other Facilities Roads Underground and Other Networks Bridges and Other Structures Assets Under Constructio n Cost Balance, beginning of year $111,959 $139,736 $13,127 $9,934 $44,712 $127,705 $270,935 $25,845 $69,243 $813,196 Add: Additions 3,404 690 1,577 711 1,021 5,706 1,036 -18,569 32,714 Add: Contributed Assets -625 1,205 167 4,134 22,692 15,958 3,197 (25,981)21,999 Less: Disposals --(48)(400)(573)(393)(986)(177)(740)(3,317) Balance, end of year 115,363 141,051 15,861 10,412 49,294 155,710 286,943 28,865 61,091 864,592 Accumulated amortization Balance, beginning of year -61,438 7,291 7,103 15,698 56,270 93,952 18,417 -260,169 Add: Amortization -6,458 1,125 766 2,004 6,797 5,652 917 -23,719 Less: Disposals --(48)(400)(244)(316)(699)(170)-(1,877) Balance, end of year -67,896 8,368 7,469 17,458 62,751 98,905 19,164 -282,011 Net book value of tangible capital assets $115,363 $73,155 $7,493 $2,943 $31,836 $92,959 $188,038 $9,701 $61,091 $582,581DRAFTPage 73 of 115 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2024 (Dollar amounts presented in '000's) 42 22.Tangible Capital Assets (continued) Tangible capital assets under construction and other capital work in progress by the Town having a value of $23,047 (2023 - $61,091) have not been amortized. Amortization of these assets will commence when these noted assets are put into service. This value excludes any developer constructed assets which have yet to be assumed. 23.Comparative Information The consolidated financial statements have been reclassified, where applicable, to conform to the presentation used in the current year.DRAFTPage 74 of 115 The Corporation of the Town of Aurora Schedule 1 - Consolidated Schedule of Segmented Disclosure December 31, 2024 (Dollar amounts presented in '000's) 43 Schedule 1 – Consolidated Schedule of Segmented Disclosure 2024 General Governement Protection to Persons and Property Transportation Services Environmental Services Leisure and Cultural Services Planning & Development Consolidated Revenue Taxation $61,234 $-$-$-$-$-$61,234 User fees 16,664 56 1,443 35,597 12,633 2,393 68,786 Grants 2,050 (1)4,860 384 342 -7,635 Loss on disposal of tangible capital asset (166)-145 ---(21) Contributed assets -477 1,979 6,323 --8,779 Other 3,829 2,611 374 288 10,074 1,001 18,177 Total Revenue 83,611 3,143 8,801 42,592 23,049 3,394 164,590 -- Expenses -- Salaries, Wages and benefits 12,407 3,412 4,762 1,498 17,750 1,876 41,705 Amortization & Accretion 5,387 504 6,994 6,170 5,382 -24,437 Materials and supplies (2,030)992 1,378 2,472 3,844 11 6,667 Contracted services 5,295 475 5,708 26,235 6,587 274 44,574 Interest 816 22 22 (16)35 -879 Others (27)13,071 --872 2 13,918 Total Expenses 21,848 18,476 18,864 36,359 34,470 2,163 132,180 Annual Surplus (Deficit)$61,763 $(15,333)$(10,063)$6,233 $(11,421)$1,231 $32,410DRAFTPage 75 of 115 The Corporation of the Town of Aurora Schedule 1 - Consolidated Schedule of Segmented Disclosure December 31, 2024 (Dollar amounts presented in '000's) 44 2023 General Governement Protection to Persons and Property Transportation Services Environmental Services Leisure and Cultural Services Planning & Development Consolidated Revenue Taxation $57,883 $-$-$-$-$-$57,883 User fees 10,607 88 1,166 32,637 9,342 1,149 54,989 Grants 2,817 499 3,630 323 438 -7,707 Loss on disposal of tangible capital asset (700)-----(700) Contributed assets --9,713 12,286 --21,999 Other 26,355 2,848 (157)542 (15,215)1,265 15,638 Total Revenue 96,962 3,435 14,352 45,788 (5,435)2,414 157,516 -- Expenses -- Salaries, Wages and benefits 12,110 3,105 4,326 1,402 15,651 1,780 38,374 Amortization & Accretion 5,221 437 7,088 6,318 4,674 -23,738 Materials and supplies (1,648)882 1,607 2,244 3,793 10 6,888 Contracted services 3,645 545 2,874 24,794 5,503 160 37,521 Interest 860 19 27 15 36 -957 Others (267)12,723 --787 3 13,246 Total Expenses 19,921 17,711 15,922 34,773 30,444 1,953 120,724 Annual Surplus (Deficit)$77,041 $(14,276)$(1,570)$11,015 $(35,879)$461 $36,792DRAFTPage 76 of 115 100 John West Way Aurora, Ontario L4G 6J1 (905) 727-3123 aurora.ca Town of Aurora Audit Committee Report No. FIN2 5 -0 37 Subject: 2024 Year-End Operating and Capital Results – as of Dec. 31, 2024 Prepared by: Tracy Evans, Financial Management Advisor Department: Finance Date: June 24, 2025 Recommendation 1. That Report No. FIN25-037 be received for information. Executive Summary This report presents to Council the year-end financial performance of the Town’s 2024 operating and capital budgets. In addition, information is provided on the disposition of the Town’s operating budget surplus in accordance with the 2024 Surplus Control By-law No. 6607-24.  Tax levy funded operations ended the year with a surplus of $1,450,400  Water, wastewater and storm water operations closed the fiscal year with an operating surplus of $923,300  The year-end surplus/deficit management bylaw authorizes the CAO and Treasurer to allocate portions of a yearend operating surplus to specific reserve accounts  The Town’s actual 2024 capital spend of $35.7 million was $7.0 million lower than the previously forecasted spend of $42.7 million  The Town spent $84,000 in unplanned capital emergency repairs to facility assets and IT infrastructure Page 77 of 115 June 24, 2025 2 of 12 Report No. FIN25-037 Background To keep Council informed as to the financial status of the operating budget, it was presented with interim forecast updates over the course of 2024. This report includes the final year-end results. The Town’s auditors will present the 2024 draft financial statements to the Audit Committee for review and approval later this month. The audited financial statements will be presented in a format consistent with the Public Sector Accounting Standards (PSAS). This budget is presented in a format consistent with the “traditional balanced municipal budget” approach. A reconciliation between these two formats will be presented within the 2024 Audited Financial Statements and Audit report. Analysis Tax levy funded operations ended the year with a surplus of $1,450,400 The Town’s tax levy funded operations finished the year with a surplus of $1,450,400, representing an increase of $166,000 from the surplus that was reported as of October 31, 2024. Most of this reported surplus consists of staffing, contract and utility expense savings, and increased Community Service and development revenues. Development revenues are market driven and fluctuate from year-to-year. A detailed break-down of the Town’s variance by department and division can be found in Attachment #1. This simplified report shows only the net budget amount, the ending position for each item and the variance to budget. Overall, the tax-funded budget for 2024 includes $80,901,100 in approved expenditures, funded by $21,057,600 in revenues consisting of user fees, charges, investment income and a total tax levy of $59,843,500. Table 1 presents a departmental summary of the final budget variances. The budget includes $150,000 for salary gapping savings which is distributed across the departments. This recognizes that during the year there will be some staff turnover and periodic vacancies. Also included in the 2024 budget was an additional $50,000 for the additional salary gapping based on previous years trends. This amount has been budgeted within Corporate Revenue & Expenditures. The following identifies the 2024 year-end variances by department: Page 78 of 115 June 24, 2025 3 of 12 Report No. FIN25-037 Table 1 2024 Tax-Funded Operating Year-end Results $000s Budget Final Result Variance Surplus/(Deficit) Council 648.8 641.8 7.0 CAO 1,622.0 1,654.1 (32.1) Corporate Services 6,380.7 6,355.4 25.3 Finance 7,241.2 6,807.5 433.7 Fire 13,063.9 13,070.7 (6.8) Operational Services 12,389.6 12,351.7 37.9 Community Services 12,782.4 12,383.0 399.4 Planning & Development Services (522.8) (699.6) 176.8 Corporate Revenue & Expenses 6,237.7 5,981.8 255.9 Tax Levy (59,843.5) (59,996.8) 153.3 Total Operating 1,450.4 CAO and Council Council and the Office of the CAO budgets ended 2024 with a deficit of $25,100 on a net operating budget of $2,270,800. This deficit relates to increased salary accruals for vacation and lieu banks and not achieving the gapping budget since the department did not have any vacancies throughout the year. Corporate Services Corporate Services ended the fiscal year with a surplus of $25,300 on a total net operating budget of $6,380,700. This surplus is mostly attributable to salary savings due to temporary position vacancies, partially offset by a shortfall in legal revenues and increased salary costs in Bylaw Services. Further, Animal Control’s deficit is the result of prior year animal shelter payments taking place this year. Finance Finance concluded 2024 with a surplus of $433,700 on a net operating budget of $7,241,200. This surplus is mostly attributable to anticipated software maintenance savings and higher than anticipated revenues for tax and water administration fees. Page 79 of 115 June 24, 2025 4 of 12 Report No. FIN25-037 Fire Services As of December 31, 2024, overall Central York Fire Services (CYFS) concluded the year with an operating surplus of $23,030 on a total approved operating budget of $31,335,899. Aurora’s share of CYFS’ total approved budget is $13,063,936. As per normal practice, the CYFS surplus will be contributed to the shared CYFS general reserve, thus leaving the Town’s portion of the Fire Services requirements as budgeted. The $6,800 shortfall relates to facility expenditures that were mis-coded to Fire Services. Operational Services Operational Services, excluding water, wastewater and storm water services, ended 2024 with a surplus of $37,900 on a net operating budget of $12,389,600. Key contributors to this surplus are higher than anticipated road access permit fee revenue, contract savings and higher than anticipated recycling grant revenue within Waste Collection and Recycling. These favourable variances are offset by larger than anticipated streetlight and sidewalk repair costs, as well as a salary shortfall. The Town experienced a gross surplus of $453,300 from its winter management operations. This surplus included $365,000 in salary savings. As staff are shared between winter management and road operations, any salary savings are firstly shared between these two functions. Upon application of these salary savings toward the road operations deficit, winter management experienced a net surplus of $88,300. As per the Town’s winter control reserve policy, these net savings were contributed to the winter management reserve. Community Services Community Services experienced a year end surplus of $399,400 surplus on a net operating budget of $12,782,400. The key contributors to this surplus relate to increased ice rental and community program revenues as well as utility savings. These surpluses are offset by additional salary and benefits costs as well as increased postage costs. The Aurora Town Square budget (ATS) saw a deficit in 2024 as a result of reduced ATS program revenue due to a later than scheduled facility opening. Planning & Development Services Page 80 of 115 June 24, 2025 5 of 12 Report No. FIN25-037 Planning & Development Services ended 2024 with a surplus of $176,800 on a net operating budget of $522,800. This surplus is mostly attributable to higher than anticipated development revenues, offset by higher than anticipated contract costs. Not included in this variance is a Building Services’ deficit of $83,000 resulting from lower than anticipated development driven revenues of $431,700 and salary savings of $348,700. As Building Services is a self-funded function as per provincial legislation, if it is unable to recognize sufficient revenues to offset its expenses in a given fiscal year, it will draw from its dedicated reserve to balance its operating budget. If it recognizes excess revenues, these revenues are used to replenish its reserve. As per legislation, this deficit has been contributed to its dedicated reserve. Corporate Revenues & Expenses Corporate Revenues and Expenses ended 2024 with a surplus of $255,900 on a net operating budget of $6,237,700. The primary driver of this surplus was tax penalty revenues. Of the budgeted $510,000 for the Aurora Town Square’s debt carrying costs, $344,100 was used for the payment of the construction line of credit interest costs. As per the town’s 2024 surplus/deficit management bylaw, the unrequired balance of $165,900 was contributed toward the facility asset management reserve in support of future ATS asset management costs. Aurora Public Library Contribution The Aurora Public Library experienced a deficit of $159,400 from a total approved net operating budget of $4,122,200, mostly attributable to HR related matters and unexpected legal costs. As per the Town 2024 surplus / deficit management bylaw, the library funded this deficit from its general capital reserve. Total Tax Levy Overall, the Town collected $153,300 more than what was budgeted in 2024. More specifically, this increase was attributable to the Town’s final 2023 tax assessment growth upon which the 2024 tax levy is built, coming in higher than what was anticipated when the 2024 budgeted tax levy was established. Page 81 of 115 June 24, 2025 6 of 12 Report No. FIN25-037 Water, wastewater and storm water operations closed the fiscal year with an operating surplus of $923,300 The Town’s user rate funded operations ended 2024 with a surplus $923,300, representing an increase of $638,300 from the surplus that was reported as of October 31, 2024. This most significant contributors to this surplus are a lower than anticipated wholesale water and sewer discharge cost savings which were partially offset by reduced retail revenues. Further surpluses are attributable to a reduced operating and maintenance costs. The wastewater surplus of $448,900 was mainly driven by contract savings, which stem from fewer emergency repairs than anticipated. These savings were partially offset by a retail revenue shortfall as a result of lower-than-expected demand. The key contributors to the storm water services’ surplus of $325,900 was cost savings due to a reduction in storm pond maintenance. Similarly, reduced water demand was a key driver of the $148,500 water surplus, as well as lower contract costs. The user rate funded operating budgets include fixed operating costs that are funded from the sale of water, wastewater and storm water services. These fixed operating costs include staff and service asset management and maintenance costs, water quality testing, and the billing and customer service functions. These costs are not directly impacted by the volume of water flowing through the system. Table 2 presents a summary of the Town’s final year financial results for its user rate funded operations. More detail can be found in Attachment 2. Table 2 2024 User Rate Year-end Results $000s Forecast Surplus/(Deficit) Water Services 148.5 Wastewater Services 448.9 Storm Water Services 325.9 Total User Rate Surplus (Deficit) 923.3 As required by legislation, each of these individual service budget variances must be brought into a balanced position at year-end. The appropriate contribution to or from the Page 82 of 115 June 24, 2025 7 of 12 Report No. FIN25-037 appropriate user rate funded reserve will be used to balance each of these service line budgets as per the Town’s 2024 surplus / deficit management bylaw. The year-end surplus/deficit management bylaw authorizes the CAO and Treasurer to allocate portions of a yearend operating surplus to specific reserve accounts On May 28, 2024, the 2024 Surplus/Deficit Management By-law No. 6606-24 was approved by Council. This bylaw authorizes the CAO and Treasurer to allocate portions of a year-end surplus to specific reserve accounts, or to offset a year-end operating deficit through a draw from specific reserve account(s) as part of the year-end accounting processes. This separates a previous year’s budget variance from that of the upcoming year’s budget. The year end surpluses and water services deficit were adjusted by transfers from/to reserves in accordance with the 2024 surplus/deficit management as follows: Table 3 2024 Surplus Disposition Reserve Transfer Amount Transfer to Roads Asset Management reserve 427,000 Transfer to Studies & Other reserve 128,100 Transfer to Fleet reserve 213,485 Transfer to Water reserve 148,500 Transfer to Wastewater reserve 448,900 Transfer to Storm Water reserve 325,900 Allocation to DC reserve 596,415 Transfer to IT reserve 85,400 Total $2,373,700 The Town’s actual 2024 capital spend of $35.7 million was $7.0 million lower than the previously forecasted spend of $42.7 million The forecasted spend of $42.7 million represents the planned 2024 capital project cash outlay that was presented to Council as part of the Interim Forecast Update as of October 31, 2024. As many projects span multiple years, any planned amounts that are not spent in 2024 can be rolled forward to the following future years through the capital budget process, if needed. Page 83 of 115 June 24, 2025 8 of 12 Report No. FIN25-037 The Town’s 2024 actual capital spending for the year ending is $7.0 million (16.3 per cent) lower than what was forecasted on October 31, 2024, for all approved capital projects. There are many different reasons for why a given capital projects forecasted spend may not happen. A detailed breakdown of the Town’s actual capital spend by individual capital project can be found in Attachment 3. A summary of the forecasted vs. actual capital spend in 2024 can be found under Table 4. Table 4 Forecasted vs. Actual 2024 Capital Spending $000s Planned / Budgeted Spend 2024 Forecasted Spend for 2024 Actual Spend for 2024 Variance: Forecast vs. Actuals Growth & New 35,374.6 23,773.3 18,480.3 5,292.9 Asset Management 44,101.8 18,015.9 16,631.9 1,384.0 Studies & Other 2,210.2 857.9 573.2 284.7 Total 81,686.7 42,647.1 35,685.4 6,961.6 Attachment 3 presents the variance between each individual active capital project’s actual spend compared to its forecasted spend for 2024 and provides a brief explanation for each identified material variance. The 2024 actual capital spend does not include any projects that were proposed for closure prior to April 30, 2024; the list of the projects identified for closure over the course of 2024 was included under chapter 19 of the 2025 budget binder. The following summary presents the 2024 capital variances between the most recent forecasted spend from October 31, 2024, and actual spend by department for its active capital projects. CAO The office of the CAO deferred $63,100 in previously approved capital spending from 2024 to 2025 relating to Project SO0002 Organization Structural Review. Corporate Services Overall, Corporate Services had actual capital spending of $87,300 in 2024, which is $84,400 lower than the forecasted annual spend. The key contributors to this variance Page 84 of 115 June 24, 2025 9 of 12 Report No. FIN25-037 include the Facilities & Trails Accessibility Assessment and Administrative Monetary Penalty System (AMPS) Implementation which will continue into 2025. Finance Finance had actual capital spending of $1,266,900 in 2024, which is $514,400 lower than the forecasted annual spend. The key contributors to this variance include delays in the delivery and installation of multiple IT infrastructure renewal projects. In addition, $256,600 in planned spending towards the Town’s new Financial System is now expected in 2025. Fire Services Fire Services completed 2024 with a total of $45,800 in expenditures which were $387,100 lower than what was forecasted as of the end of October. The Town is awaiting final billing from Newmarket, which is now expected in 2025. In addition, actual expenses will be lower than originally forecasted. Operational Services Overall, Operational Services had actual capital spending of $6,127,400 in 2024 which was $4,948,100 lower than the forecasted annual spend. Planned capital spending of $2,500,000 is deferred to 2025 for the construction of St Anne’s School Park and Artificial Turf – Aurora Barbarians. The Town is also awaiting billing from the School Board for the Artificial Turf at G.W. Williams School, which is now expected in 2025. Community Services Community Services had actual capital spending of $14,925,700 in 2024, which is $273,400 lower than the forecasted annual spend. This planned capital spending is deferred to 2025 and 2026 to reflect updated project delivery timelines related to multiple Facilities and Programs-related projects as highlighted in Attachment 3. Planning & Development Services Planning and Development Services had actual capital spending of $13,232,400 in 2024, which is $691,200 lower than the forecasted annual spend. The primary driver of this variance is $509,800 in forecasted capital spending relating to Poplar Crescent Reconstruction being deferred to 2025. Project completion is planned for 2025. Page 85 of 115 June 24, 2025 10 of 12 Report No. FIN25-037 The Town spent $84,000 in unplanned capital emergency repairs to facility assets and IT infrastructure There are two active unplanned capital emergency repair projects within the Town’s capital plan. The purpose of these projects is to fund unexpected minor rehabilitation and replacement requirements within a capital program. These project’s scope is restricted to only unplanned expenditures stemming from existing or new minor capital expenses that occur during the year. Each emergency repair project must be closed at each fiscal year-end and a new contingency project may be established in the following year. A summary of the town’s unplanned emergency repairs contingency spending in 2024 can be found under Table 5. Table 5 Unplanned Emergency Repairs Contingency Spending Project Name Planned / Budgeted Spend 2024 Actual Spend for 2024 Variance: Budget vs Actuals AM0333: Unplanned – Emergency Repairs Contingency (2024) 100,000 82,856 17,144 AM0371: Unplanned – IT Emergency Repairs Contingency 2024 20,000 1,094 18,906 Total 120,000 83,950 36,050 Advisory Committee Review Not applicable. Legal Considerations None. Financial Implications The Town’s final tax levy or user rate funded operating budget surplus will be allocated by the CAO and Treasurer to / from various reserves as per the Surplus/Deficit Management bylaw. Page 86 of 115 June 24, 2025 11 of 12 Report No. FIN25-037 All final 2024 capital project expenditures have now been fully funded from their approved funding sources. Also, the 2026 budget process will consider any unspent 2024 planned expenditures as part of the update to identified future year requirements for approved projects as part of the 10-year capital plan. There are no other immediate financial implications arising from this report. Communications Considerations The Town of Aurora will use ‘Inform’ as the level of engagement for this project and will post this report to the Town’s website. Climate Change Considerations The information contained within this report does not impact greenhouse gas emissions or impact climate change adaption. Link to Strategic Plan Outlining and understanding the Town’s present financial status at strategic intervals throughout the year contributes to achieving the Strategic Plan guiding principle of “Leadership in Corporate Management” and improves transparency and accountability to the community. Alternative(s) to the Recommendation Not applicable. Conclusions Tax levy funded operations have concluded the fiscal year with a surplus of $1,450,400 arising primarily from increased Community Program, development and tax penalty revenues, as well as consulting, and contract expenditure savings. User rate funded budget operations finished the fiscal year with an overall favourable budget variance of $923,300. The Town spent $6,961,600 less than what was forecasted for all active capital projects in 2024. Since the forecast was used to develop the 2025 capital budget, these capital Page 87 of 115 June 24, 2025 12 of 12 Report No. FIN25-037 cash outflows will be deferred and spent in 2025 and beyond resulting in no required change to the capital budget authority. Attachments Attachment 1 – 2024 Year-End – As of December 31, 2024 (Final) – Tax Funded Attachment 2 – 2024 Year-End – As of December 31, 2024 (Final) – Water Funded Attachment 3 – 2024 Forecasted Capital Spend vs. Actuals – As of December 31, 2024 Previous Reports FIN24-033 – 2024 Interim Forecast Update – as of April 30, 2024 FIN24-046 – 2024 Interim Forecast Update – as of August 31, 2024 FIN24-060 – 2024 Interim Forecast Update – as of October 31, 2024 Pre-submission Review Agenda Management Team review on May 22, 2025 Approvals Approved by Rachel Wainwright-van Kessel, CPA, CMA, Director, Finance Approved by Doug Nadorozny, Chief Administrative Officer Page 88 of 115 Shown in $,000's COUNCIL Council Administration 611.8$ 615.2$ (3.4)$ (0.6 %) Council Programs/Grants 4.0 -$ 4.0$ 100.0 % Advisory Committees 33.0 26.6$ 6.4$ 19.4 % Council Office Total 648.8$ 641.8$ 7.0$ 1.1 % -$ CHIEF ADMINISTRATIVE OFFICE -$ CAO Administration 607.6$ 604.1$ 3.5$ 0.6 % Communications 1,014.4 1,050.0$ (35.6)$ (3.5 %) Chief Administrative Office Total 1,622.0$ 1,654.1$ (32.1)$ (2.0 %) Council and C.A.O. Combined 2,270.8$ 2,295.9$ (25.1)$ (1.1 %) CORPORATE SERVICES Corporate Services Administration 332.4$ 276.8$ 55.6$ 16.7 % Legal Services 2,059.8 2,126.8$ (67.0)$ (3.3 %) Legislative & Administrative Services 886.1 826.1$ 60.0$ 6.8 % Human Resources 1,245.6 1,124.2$ 121.4$ 9.7 % Elections 105.5 105.5$ -$ - By-law Services 979.0 1,064.3$ (85.3)$ (8.7 %) Animal Control 387.6 470.7$ (83.1)$ (21.4 %) Project Management & Business Transformation 341.1 321.2$ 19.9$ 5.8 % Emergency Preparedness 43.6 39.8$ 3.8$ 8.7 % Corporate Services Total 6,380.7$ 6,355.4$ 25.3$ 0.4 % FINANCE Finance Director's Office 441.6$ 458.9$ (17.3)$ (3.9 %) Information Technology 4,127.3 3,880.5$ 246.8$ 6.0 % Telecommunications 208.2 219.4$ (11.2)$ (5.4 %) Financial Reporting & Revenue 1,011.0 821.3$ 189.7$ 18.8 % Financial Management 805.7 802.5$ 3.2$ 0.4 % Procurement Services 647.4 624.9$ 22.5$ 3.5 % Finance Total 7,241.2$ 6,807.5$ 433.7$ 6.0 % FIRE SERVICES Central York Fire 13,063.9 13,070.7$ (6.8)$ (0.1 %) Total Fire Services 13,063.9 13,070.7$ (6.8)$ (0.1 %) Favourable / (Unfavourable) Town of Aurora Final NET Tax Levy Funded Operations Results as at December 31, 2024 NET ADJUSTED BUDGET FINAL Variance Attachment 1 Page 89 of 115 OPERATIONAL SERVICES Operational Services Administration 354.5$ 394.6$ (40.1)$ (11.3 %) Fleet & Equipment 1,185.2 1,174.4$ 10.8$ 0.9 % Winter Management 1,593.8 1,140.5$ 453.3$ 28.4 % Road Network Operations 3,229.1 3,698.0$ (468.9)$ (14.5 %) Parks/Open Spaces 3,438.2 3,632.8$ (194.6)$ (5.7 %) Waste Collection & Recycling 2,588.8 2,311.4$ 277.4$ 10.7 % Operational Services Total 12,389.6$ 12,351.7$ 37.9$ 0.3 % COMMUNITY SERVICES Community Services Administration 418.2$ 471.7$ (53.5)$ (12.8 %) Cultural Services 1,623.6 2,086.3$ (462.7)$ (28.5 %) Customer Service 766.5 793.8$ (27.3)$ (3.6 %) Business Support (150.9) (114.5)$ (36.4)$ (24.1 %) Recreational Programming/Community Dev.3,148.8 2,258.8$ 890.0$ 28.3 % Facilities 6,976.2 6,886.9$ 89.3$ 1.3 % Community Services Total 12,782.4$ 12,383.0$ 399.4$ 3.1 % PLANNING & DEVELOPMENT SERVICES Development Planning (1,665.3)$ (2,108.6)$ 443.3$ 26.6 % Long Range & Strategic Planning 810.4 793.1$ 17.3$ 2.1 % Engineering Service Operations 332.1 615.9$ (283.8)$ (85.5 %) Net Building Department Operations 536.4 619.4$ (83.0)$ (15.5 %) Contribution To Building Reserve (536.4) (619.4)$ 83.0$ 15.5 % Total Building Services - -$ -$ - Planning & Development Services Total (522.8)$ (699.6)$ 176.8$ 33.8 % CORPORATE REVENUE & EXPENSE Corporate Management 65.3 320.9$ (255.6)$ (391 %) Fiscal Strategy 6,353.3 6,362.7$ (9.4)$ (0 %) Non-Levy Tax Items (1,613.3) (2,134.2)$ 520.9$ 32 % Cost Recovery from Rate (2,689.8) (2,689.8)$ -$ - Net Library Services Operations 4,122.2 4,281.6$ (159.4)$ (4 %) Library net contribution from Library reserves - (159.4)$ 159.4$ n/a 6,237.7$ 5,981.8$ 255.9$ 4.1 % TOTAL TAX LEVY FUNDED OPERATIONS 59,843.5$ 58,546.4$ 1,297.1$ 2.2 % TOTAL TAX LEVY (59,843.5)$ (59,996.8)$ 153.3$ 0.3 % OPERATING (SURPLUS) DEFICIT - (1,450.4)$ 1,450.4$ 2.4 % Surplus Surplus Page 90 of 115 Shown in $,000's Water Services Retail Revenues (13,644.5) (13,390.1) (254.4)$ (1.9 %) Penalties (175.0) (170.9) (4.1) (2.3 %) Other (135.0) (117.1) (17.9) (13.3 %) Total Revenues (13,954.5) (13,678.1) (276.4)$ (2.0 %) Wholesale water purchase 8,954.8 8,635.2 319.6 3.6 % Operations and maintenance 982.9 977.3 5.6 0.6 % Administration and billing 1,099.5 999.8 99.7 9.1 % Corporate overhead allocation 998.2 998.2 - - Infrastructure sustainability reserve contributions 1,919.1 1,919.1 - - Total Expenditures 13,954.5 13,529.6 424.9$ 3.0 % Net Operating Water Services -$ (148.5) 148.5$ n/a Waste Water Services Retail Revenues (16,219.3) (15,790.5) (428.8)$ (2.6 %) Other (86.9) (88.6) 1.7 2.0 % Total Revenues (16,306.2) (15,879.1) (427.1)$ (2.6 %) Sewer discharge fees 12,147.3 11,821.7 325.6$ 2.7 % Operations and maintenance 1,476.3 925.9 550.4$ 37.3 % Administration and billing 261.4 261.4 -$ - Corporate overhead allocation 820.8 820.8 - - Infrastructure sustainability reserve contributions 1,600.4 1,600.4 - - Total Expenditures 16,306.2 15,430.2 876.0$ 5.4 % Net Operating Waste Water Services - (448.9) 448.9$ n/a Total Water and Waste Water Services - (597.4) 597.4$ n/a Storm Water Services Retail Revenues (4,848.8) (4,898.8) 50.0$ 1.0 % Other (1.0) (49.6) 48.6 - Total Revenues (4,849.8) (4,948.4) 98.6$ 2.0 % Operations and maintenance 1,901.2 1,670.9 230.3 12.1 % Administration and billing 105.4 105.4 - - Corporate overhead allocation 42.9 45.9 (3.0) (7.0 %) Infrastructure sustainability reserve contributions 2,800.3 2,800.3 - - Total Expenditures 4,849.8 4,622.5 227.3$ 4.7 % Net Operating Storm Water Services - (325.9) 325.9$ n/a OPERATING (SURPLUS) DEFICIT - (923.3)$ 923.3$ 3.3 % Surplus Surplus (Unfavourable) Variance Town of Aurora Final Net User Rate Funded Operations Results as at December 31, 2024 ADJUSTED BUDGET FINAL Favourable / Attachment 2 Page 91 of 115 A B ($)(%) Office of the Chief Administrative Officer SO0002: Organization Structural Review 63,138$ 63,138$ -$ 63,138$ 63,138$ 100.0 % Project to continue into 2025 Chief Administrative Office Total 63,138$ 63,138$ -$ 63,138$ 63,138$ 100.0 % Fire Services Property GN0016: Fire Station 4-5 157,237$ 426,000$ 45,805$ 111,433$ 380,195$ 89.2 % Actual 2024 expenses were lower than originally forecasted; awaiting final billing from Newmarket Total Property 157,237 426,000 45,805 111,433 380,195$ 89.2 % Equipment GN0020: Fire Master Plan - 2019 8,988 6,891 - 8,988 6,891 100.0 % Awaiting billing from Newmarket Total Equipment 8,988 6,891 - 8,988 6,891 100.0 % Fire Services Total 166,225$ 432,891$ 45,805$ 120,420$ 387,086$ 89.4 % Town of Aurora Budgeted Capital Spend Forecast Update as at December 31, 2024 Planned/Budgeted Capital Spend for 2024 Variance - Forecast vs. Actuals A - B Variance Explanation Oct. 31, 2024 Forecast 2024 Actuals Variance - Planned vs. Actuals 1 of 11 Attachment 3 Page 92 of 115 A B ($)(%) Planned/Budgeted Capital Spend for 2024 Variance - Forecast vs. Actuals A - B Variance Explanation Oct. 31, 2024 Forecast 2024 Actuals Variance - Planned vs. Actuals Operational Services Operations AM0284: Retaining Wall Repair - 1 Community Centre Lane + 25 Falling Leaf Crt 168,140 125,000 67,380 100,760 57,620 46.1 % Project to be completed in 2025 AM0287: Streetlight Pole Replacement - 2023 35,942 35,942 4,157 31,785 31,785 88.4 % Project to continue into 2025 AM0291: Structural Lining Of Sani Sewermains & Laterals 23-26 918,538 41,752 41,752 876,787 0 0.0 % AM0339: Streetlight Pole Replacement - 2024 180,000 15,000 - 180,000 15,000 100.0 % Project to continue into 2025 AM0341: Sanitary Pumping Station/Water Booster Station Improvements 121,900 - - 121,900 - n/a AM0342: Town Parking Lot Maintenance 300,000 306,678 175,469 124,531 131,209 42.8 % Project to continue into 2025 AM0343: Maze Barrier Replacement - St John's Sdrd W Of Ind Pkwy 100,000 60,000 - 100,000 60,000 100.0 % Project completed in 2024 and final invoice paid in 2025. Savings expected due to scope change. AM0345: Bridge And Culvert Inspections (2024-2026)70,000 28,500 21,718 48,282 6,782 23.8 % GN0058: Street Light Pole Identification 17,880 - - 17,880 - n/a GN0153: Winter Road Monitoring System 61,000 61,000 47,885 13,115 13,115 21.5 % SO0061: Salt Management Plan Update 141,312 141,312 112,511 28,801 28,801 20.4 % Total Operations 2,114,712 815,184 470,870 1,643,842 344,314$ 42.2 % Parks AM0178: Parks/Trails Signage Strategy Study/Implementation 210,449 - - 210,449 - n/a AM0305: Butternut Ridge Trail Construction 333,901 85,593 85,593 248,308 - - AM0355: Playground Replacement & Parking Lot Construction - Evans Park 300,000 - - 300,000 - n/a AM0356: Playground Replacement (Fully Accessible) - Town Park 400,000 565,000 559,309 (159,309) 5,691 1.0 % AM0357: Splash Pad Surface Upgrade - Town Park 75,000 - - 75,000 - n/a AM0358: Boardwalk Upgrade - Benjamin Pearson Parkette 150,000 20,000 - 150,000 20,000 100.0 % Planned consulting & design fees in 2024 will now be spent in 2025. AM0359: Playground, Picnic Shelter & Courts Replacement - Fleury Park 200,000 - 28,315 171,685 (28,315) n/a 2024 cash flows were $28,315 higher than Oct. 31 forecast, however, project spending remained within approved CBA. AM0361: Hickson Park Masonary Pier Refacing 80,000 40,000 20,352 59,648 19,648 49.1 % Project completed under budget in 2024. Savings due to scope change. AM0376: Summit Park Playground Replacement And Bball Crt/Walkway Imp 600,000 440,000 473,601 126,399 (33,601) (7.6 %) 2024 cash flows were $33,601 higher than Oct. 31 forecast, however, project spending remained within approved CBA. GN0078: Arboretum Development 77,253 11,056 21,220 56,033 (10,164) (91.9 %) 2024 cash flows were $10,164 higher than Oct. 31 forecast, however, project spending remained within approved CBA. GN0085: David Tomlinson Nature Reserve (Phase 1- 5)2,335,532 1,427,306 1,446,896 888,636 (19,590) (1.4 %) 2024 cash flows were $19,590 higher than Oct. 31 forecast, however, project spending remained within approved CBA. GN0097: Non Programmed Park In 2C 2,067,758 2,067,758 1,943,249 124,509 124,509 6.0 % Project to be completed in 2025 2 of 11 Page 93 of 115 A B ($)(%) Planned/Budgeted Capital Spend for 2024 Variance - Forecast vs. Actuals A - B Variance Explanation Oct. 31, 2024 Forecast 2024 Actuals Variance - Planned vs. Actuals GN0128: Artificial Turf - G.W. Williams School 1,950,000 1,950,000 - 1,950,000 1,950,000 100.0 % Awaiting billing from school board. Project to be completed in 2025. GN0129: Mattamy Phase 4/5 Trail 866,340 11,167 11,464 854,876 (297) (2.7 %) 2024 cash flows were $297 higher than Oct. 31 forecast, however, project spending remained within approved CBA. GN0130: Degraaf Cres Trail 181,921 50,000 - 181,921 50,000 100.0 % Additional funding required for construction and will be requested through 2026 budget process. GN0150: St. Anne's School Park 7,310,000 2,000,000 - 7,310,000 2,000,000 100.0 % Project to be completed in 2025 GN0157: Multi Use Courts As Per Parks & Rec Master Plan 300,000 - - 300,000 - n/a GN0159: Trail Design (Development North Of St. Johns At Yonge St)275,000 8,762 8,762 266,238 - - GN0161: Arboretum Development - 2024 40,000 - - 40,000 - n/a GN0162: Artificial Turf - Aurora Barbarians 233,535 500,000 455 233,080 499,545 99.9 % Project to be completed in 2025 GN0166: George Street Parkland Site Preparation 415,800 6,500 - 415,800 6,500 100.0 % Project to be completed in 2025 SO0038: Environmental Monitoring Of 2C Lands 51,147 43,792 34,191 16,955 9,601 21.9 % Total Parks 18,453,636 9,226,934 4,633,408 13,820,229 4,593,526$ 49.8 % 3 of 11 Page 94 of 115 A B ($)(%) Planned/Budgeted Capital Spend for 2024 Variance - Forecast vs. Actuals A - B Variance Explanation Oct. 31, 2024 Forecast 2024 Actuals Variance - Planned vs. Actuals Fleet Management AM0242: Vehicle Radio Upgrade 12,292 2,633 2,633 9,659 - - AM0330: Roads - 6 Ton Diesel Dump With Sander (#26-22)416,400 173,746 173,746 242,654 - - AM0346: Facilities - Ice Resurfacer Olympia (#590-26)170,000 170,000 172,765 (2,765) (2,765) (1.6 %) Project complete, to be closed. Project spend exceeded approved CBA by $2,765 AM0347: Roads - 3/4 Ton Pick-Up (#1-23)80,000 78,148 78,148 1,852 - - AM0348: Water - 3/4 Ton Pick Up (#10-23)80,000 60,336 60,336 19,664 - - AM0349: Facilities - 3/4 Ton Pick Up Truck (#504-23)80,000 80,000 62,897 17,103 17,103 21.4 % AM0350: Parks - 3/4 Ton Pick Up (#205-22)80,000 73,158 76,032 3,968 (2,874) (3.9 %) 2024 cash flows were $2,874 higher than Oct. 31 forecast, however, project spending remained within approved CBA. AM0351: Parks - 3/4 Ton Pick Up (#206-23)80,000 80,000 81,273 (1,273) (1,273) (1.6 %) Project complete, to be closed. Project spend exceeded approved CBA by $1,273 AM0352: Parks - 3 Ton Garbage Compactor (#229- 22)300,000 - - 300,000 - n/a AM0353: Parks - Off Road Utility Vehicle (#230-22)36,100 35,056 35,056 1,044 - - AM0354: By-Law - Cargo Van (#405-18)80,000 80,000 76,754 3,246 3,246 4.1 % GN0137: SUV (Roads Technician - New)80,000 65,300 65,300 14,700 - - GN0154: Sidewalk & Parking Lot Vacuum Sweeper 200,000 - - 200,000 - n/a GN0155: Truck (Flex Supervisor - Roads/Parks - New)80,000 65,018 65,018 14,982 - - GN0156: Parks - 3/4 Ton Truck (New)80,000 70,013 73,158 6,842 (3,145) (4.5 %) 2024 cash flows were $3,145 higher than Oct. 31 forecast, however, project spending remained within approved CBA. GN0167: Animal Services Vehicle For East Gwillimbury 100,000 - - 100,000 - n/a Delivery expected in 2025 Total Fleet Management 1,954,792 1,033,408 1,023,116 931,676 10,291$ 1.0 % Operational Services Total 22,523,140$ 11,075,525$ 6,127,394$ 16,395,746$ 4,948,131$ 44.7 % 4 of 11 Page 95 of 115 A B ($)(%) Planned/Budgeted Capital Spend for 2024 Variance - Forecast vs. Actuals A - B Variance Explanation Oct. 31, 2024 Forecast 2024 Actuals Variance - Planned vs. Actuals Community Services Programs AM0203: Pet Cemetery Restoration 59,347 6,000 3,552 55,795 2,448 40.8 % AM0265: Parade Float 27,500 - - 27,500 - n/a AM0306: AFLC Fitness Equipment Replacement - 2023/2024 44,689 31,292 31,292 13,397 - - AM0336: Vehicle Mitigation Equipment 60,000 - - 60,000 - n/a AM0337: Town Hall - Community Reflection Space 25,000 5,000 1,038 23,962 3,962 79.2 % Consulting fees orginally forecasted in 2024 will be spent in 2025 GN0102: Cultural Services Master Plan 16,300 16,410 16,443 (143) (33) (0.2 %) Project complete, to be closed. Project spend exceeded approved CBA by $143 GN0139: Pet Cemetery Fencing 100,000 - - 100,000 - n/a GN0141: AV Equipment For Combined Virtual/In- Person Programming 11,700 8,321 3,321 8,379 5,000 60.1 % Project completed under budget GN0142: Snoezelen Room/Sensory Room 29,250 29,250 - 29,250 29,250 100.0 % Project to be completed in 2025 GN0151: Cultural Action Plan Implementation - 2024 50,800 13,000 - 50,800 13,000 100.0 % Project to be completed in 2025 SO0070: Recreation Needs Assessment For Persons With Disabilities 59,194 59,194 48,592 10,602 10,602 17.9 % SO0076: Sport Plan Update 40,000 34,598 34,598 5,402 - - Total Programs 523,780 203,065 138,836 384,944 64,229$ 31.6 % Facilities AM0128: Town Hall - Space Refresh 340,224 49,083 40,586 299,638 8,497 17.3 % AM0129: Security Audit & Implementation 424,402 25,000 9,252 415,150 15,748 63.0 % Project to continue into 2025 AM0134: AFLC Arena Dehumidifiers 19,363 - - 19,363 - n/a AM0158: ACC Exterior Windows Reseal 10,498 3,136 3,136 7,362 - - AM0159: ACC Themoplastic Membraine Roof Replacement 160,415 - - 160,415 - n/a AM0163: ASC Roofing Sections Replcmnt 25,485 - 1,679 23,806 (1,679) n/a 2024 cash flows were $1,679 higher than Oct. 31 forecast, however, project spending remained within approved CBA. AM0165: Town Hall Roof Sections & Skylight Repairs 54,040 45,625 45,625 8,415 - - AM0217: ACC Sport Flooring 38,298 38,298 - 38,298 38,298 100.0 % Project to be completed in 2025 with savings expected AM0220: CYFS 4-3 Windows Replaced 25,289 - - 25,289 - n/a AM0221: Town Hall Concrete/Stone Walkway Repairs 19,148 19,148 - 19,148 19,148 100.0 % Project completed under budget AM0251: SARC - West Roof Area - Window Sealant 10,200 - - 10,200 - n/a AM0253: AFLC - Replace Roofing Above Arena Dressing Rooms 90,100 - - 90,100 - n/a AM0255: ASC - Replacement Of Security System 28,844 15,000 - 28,844 15,000 100.0 % Project to continue into 2025/2026 AM0257: SARC - Low-E Ceiling - Arenas 128,000 - - 128,000 - n/a AM0258: Energy And Demand Management Plan Implementation 75,269 (19,772) (19,772) 95,041 - - 5 of 11 Page 96 of 115 A B ($)(%) Planned/Budgeted Capital Spend for 2024 Variance - Forecast vs. Actuals A - B Variance Explanation Oct. 31, 2024 Forecast 2024 Actuals Variance - Planned vs. Actuals AM0259: Victoria Hall Refurbishment 20,000 - - 20,000 - n/a AM0295: Building Automation System Replacement 132,000 - - 132,000 - n/a AM0298: SARC - Enclosed Outdoor Preschool Area 58,500 - - 58,500 - n/a AM0300: SARC - Ice Plant Arena Rehabilitation 74,160 74,160 58,583 15,577 15,577 21.0 % AM0301: CYFS - Facilities Placeholder (BCA)100,000 25,000 21,855 78,145 3,145 12.6 % AM0302: Recreation Centre - Facility Placeholder (BCA)250,000 75,000 67,146 182,854 7,854 10.5 % AM0303: Library Elevator Pit Waterproofing 25,313 - - 25,313 - n/a AM0304: Inverter Batteries - Multi-Sites 70,000 - - 70,000 - n/a AM0307: Old Church School Refinishing and Painting Brevik Hall Etc 173,000 173,000 156,057 16,943 16,943 9.8 % AM0308: Aurora Museum & Archives & ACC Admin Refin And Paint 187,000 187,000 139,331 47,669 47,669 25.5 % AM0310: Sports Dome - Air Conditioning 199,565 206,221 206,221 (6,656) - - AM0333: Unplanned - Emergency Repairs Contingency (2024)100,000 82,856 82,856 17,144 - - AM0334: Town Hall Roof Replacement - Phase 1 425,000 26,661 26,661 398,339 - - AM0335: AFLC - Arena Dehumidification Replacement 825,000 50,000 - 825,000 50,000 100.0 % Consulting fees orginally forecasted in 2024 will be spent in 2025. Work to be completed in 2026 AM0377: Petch House Renovations 50,000 - - 50,000 - n/a GN0062: Backflow Prevention Meter Installation 111,568 102,638 102,677 8,891 (39) (0.0 %) 2024 cash flows were $39 higher than Oct. 31 forecast, however, project spending remained within approved CBA. GN0069: Electric Vehicle (EV) Charging Stations 3,217 3,217 - 3,217 3,217 100.0 % Project completed under budget GN0074: SARC Gymnasium 11,033,738 9,033,738 9,162,926 1,870,812 (129,188) (1.4 %) 2024 cash flows were $129,188 higher than Oct. 31 forecast, however, project spending remained within approved CBA. GN0110: Aurora Town Square 4,697,184 4,697,184 4,643,651 53,533 53,533 1.1 % Final project expenses paid in 2025 GN0164: Aurora Letters At Aurora Town Square 250,000 - - 250,000 - n/a SO0041: Building Condition Assessment & Energy Audit 24,972 16,250 16,250 8,722 - - SO0057: Facilities Study 67,562 67,562 22,168 45,394 45,394 67.2 % Project to continue into 2025 SO0077: Town Hall - Accommodation Plan 80,000 - - 80,000 - n/a Total Facilities 20,407,354$ 14,996,005$ 14,786,889$ 5,620,464$ 209,116 1.4 % Community Services Total 20,931,133$ 15,199,070$ 14,925,725$ 6,005,409$ 273,345$ 1.8 % 6 of 11 Page 97 of 115 A B ($)(%) Planned/Budgeted Capital Spend for 2024 Variance - Forecast vs. Actuals A - B Variance Explanation Oct. 31, 2024 Forecast 2024 Actuals Variance - Planned vs. Actuals Planning & Development Services Development Planning GN0165: 15217 Yonge Street Land Acquisition 150,000 10,776 41,783 108,217 (31,006) (287.7 %) 2024 cash flows were $31,006 higher than Oct. 31 forecast, however, project spending remained within approved CBA. Total Development Planning 150,000 10,776 41,783 108,217 (31,006)$ (287.7 %) Environment/ Waste SO0065: Energy Retrofit Program Business Case 191,400 17,000 - 191,400 17,000 100.0 % Project to commence in 2025 SO0066: Natural Capital Asset Management Planning For Muni 80,415 80,415 74,448 5,967 5,967 7.4 % Total Environment/ Waste 271,815 97,415 74,448 197,367 22,967$ 23.6 % Water AM0294: Watermain Decomissioning - 15408/15390 Yonge St 65,000 9,891 9,891 55,109 - - AM0367: Watermain Rehabilitation - Mary St 250,000 - - 250,000 - n/a SO0035: Water Hydraulic Model 17,513 10,000 11,078 6,435 (1,078) (10.8 %) 2024 cash flows were $1,078 higher than Oct. 31 forecast, however, project spending remained within approved CBA. SO0067: Water Hydraulic Model - Upgrade 125,000 30,000 29,734 95,266 266 0.9 % SO0079: Water And Wastewater Master Plan 300,000 40,000 - 300,000 40,000 100.0 % Project to commence in 2025 Total Water 757,513 89,891 50,703 706,810 39,188$ 43.6 % Storm Sewer AM0247: Delayne Drive Channel Rehabilitation 2,380,819 54,335 34,335 2,346,483 20,000 36.8 % AM0292: Sediment Removal And Remediation - Stormwater Ponds C1 And C4 1,396,000 23,000 31,954 1,364,046 (8,954) (38.9 %) 2024 cash flows were $8,954 higher than Oct. 31 forecast, however, project spending remained within approved CBA. AM0293: Sediment Removal And Remediation - Stormwater Ponds SC2 And WC5 1,117,000 23,000 31,956 1,085,044 (8,956) (38.9 %) 2024 cash flows were $8,956 higher than Oct. 31 forecast, however, project spending remained within approved CBA. AM0368: Maintenance Holes In Streams Erosion Protection Works 173,000 - - 173,000 - n/a AM0369: Sediment Removal And Remediation - Ponds NC2, NC12, NC13 100,000 - - 100,000 - n/a AM0370: Remediation Of Stormwater Management Pond C6 75,000 - - 75,000 - n/a Total Storm Sewer 5,241,819 100,335 98,245 5,143,573 2,090$ 2.1 % Sani Sewer AM0332: Yonge St Sani Sewer Rehab & Streetscape Detailed Design 587,233 200,000 52,152 535,081 147,848 73.9 % Design fees orginally forecasted in 2024 will be spent in 2025. Work to be completed in 2027 SO0062: Wastewater Hydraulic Model (2023)125,000 40,000 39,417 85,583 583 1.5 % Total Sani Sewer 712,233 240,000 91,569 620,664 148,431$ 61.8 % 7 of 11 Page 98 of 115 A B ($)(%) Planned/Budgeted Capital Spend for 2024 Variance - Forecast vs. Actuals A - B Variance Explanation Oct. 31, 2024 Forecast 2024 Actuals Variance - Planned vs. Actuals Roads AM0027: Henderson Dr Culvert Replace 2,114,977 2,062,000 2,051,699 63,278 10,301 0.5 % AM0037: Poplar Crescent Reconstruction 6,647,703 5,763,000 5,253,213 1,394,490 509,787 8.8 % Project to continue into 2025 AM0038: Road, Storm, Sani and Water Rehabilitation - Gurnett, Kennedy, Victoria 3,574,476 618,000 584,784 2,989,692 33,216 5.4 % AM0238: Rehabilitation - Mill St and Temperance St 1,374,409 37,000 24,792 1,349,617 12,208 33.0 % AM0239: Rehabilitation of Marksbury, Gilbank, Lacey, Mcleod 2,926,673 33,291 50,116 2,876,556 (16,825) (50.5 %) 2024 cash flows were $16,825 higher than Oct. 31 forecast, however, project spending remained within approved CBA. AM0240: Goulding Ave & Eric T. Smith Way - Top Asphalt - - - - - n/a AM0282: M & O - Avondale, Centre, Earl Stewart, Mcmaster, Heathwood Heights 3,750,000 2,535,000 2,915,206 834,794 (380,206) (15.0 %) 2024 cash flows were $380,206 higher than Oct. 31 forecast, however, project spending remained within approved CBA. AM0296: Parking Lot Rehabilitation – SARC 140,400 15,000 - 140,400 15,000 100.0 % Project to commence in 2025 AM0362: Full Road Reconstruction - Centre St - Yonge - Spruce St 950,000 25,000 - 950,000 25,000 100.0 % Design was over 10 years old so peer review required to ensure design still relevent. Design & construction to commence in 2025 AM0363: M & O - Marsh Harbour, Mcclenny Dr, Timpson Dr, Dinsmore Terrace 1,647,140 1,290,000 1,257,626 389,514 32,374 2.5 % AM0366: South Town Hall Parking Lot Rehabilitation 150,000 - - 150,000 - n/a GN0030: Vandorf Sdrd Recon'n 147,900 68,521 68,521 79,379 - - GN0163: Active Transp Facilities - Yonge - Bloomington - Go Bridge Both Sides 200,000 118,000 43,979 156,021 74,021 62.7 % Design fees orginally forecasted in 2024 will be spent in 2025. SO0078: Town-Wide Parking Study 150,000 24,000 16,173 133,827 7,827 32.6 % Total Roads 23,773,677 12,588,812 12,266,110 11,507,568 322,702$ 2.6 % Traffic GN0045: Ped Crossings Per DC Study 47,715 106,000 89,918 (42,203) 16,082 15.2 % GN0046: Traffic Calming Per DC Study 147,036 29,173 26,059 120,977 3,115 10.7 % GN0048: Traffic Calming In School Zones 17,049 - - 17,049 - n/a GN0138: Traffic Control Signals At Wellington St. E & Kaleia/Elyse 360,800 360,800 356,163 4,637 4,637 1.3 % Total Traffic 572,600 495,973 472,140 100,460 23,833$ 4.8 % Sidewalks GN0055: S/W, Multi-Use Trail & Illumination - St John's Sdrd - Bayview To Leslie 42,299 25,000 (62,245) 104,544 87,245 349.0 % Final billing from York Region was less than originally expected GN0124: Sidewalk - Edward/ 100M E Of Yonge- Dunning 498,163 250,000 174,282 323,881 75,718 30.3 % Project to continue into 2025 Total Sidewalks 540,462 275,000 112,038 428,424 162,962$ 59.3 % 8 of 11 Page 99 of 115 A B ($)(%) Planned/Budgeted Capital Spend for 2024 Variance - Forecast vs. Actuals A - B Variance Explanation Oct. 31, 2024 Forecast 2024 Actuals Variance - Planned vs. Actuals Studies SO0044: Official Plan Review/Conformity To Places To Grow 260,097 25,315 25,315 234,782 - - SO0071: Zoning By Law Update 150,000 - - 150,000 - n/a Total Studies 410,097 25,315 25,315 384,782 -$ - Planning & Development Total 32,430,215$ 13,923,518$ 13,232,351$ 19,197,865$ 691,168$ 5.0 % Finance Finance AM0005: Financial System 301,245$ 301,245$ 44,693$ 256,552$ 256,552 85.2 % Project to continue into 2025 AM0090: Water Meter Replacement Program 701,703 602,000 601,605$ 100,099$ 395 0.1 % Project completed, to be closed. AM0248: Advanced Metering Infrastructure 1,681,500 10,000 19,725$ 1,661,775$ (9,725) (97.2 %) 2024 cash flows were $9,725 higher than Oct. 31 forecast, however, project spending remained within approved CBA. SO0030: Storm Sewer Reserve Fund & Rate Study 25,000 - -$ 25,000$ - n/a SO0060: Water Rate Study 45,000 16,399 16,399 28,601 - - Total Finance 2,754,448$ 929,644$ 682,422$ 2,072,027$ 247,222$ 26.6 % 9 of 11 Page 100 of 115 A B ($)(%) Planned/Budgeted Capital Spend for 2024 Variance - Forecast vs. Actuals A - B Variance Explanation Oct. 31, 2024 Forecast 2024 Actuals Variance - Planned vs. Actuals Information Technology Services AM0008: Boardroom Audio/Video Equip 77,259 62,369 26,663 50,596 35,706 57.2 % Project to continue into 2025 AM0009: Bus Process Automtn & Data Intgrtn 214,449 115,729 118,755 95,694 (3,026) (2.6 %) 2024 cash flows were $3,026 higher than Oct. 31 forecast, however, project spending remained within approved CBA. AM0212: Ethernet Switch Redesign 85,595 85,595 85,740 (145) (145) (0.2 %) 2024 cash flows were $145 higher than Oct. 31 forecast, however, project spending remained within approved CBA. AM0213: Data Centre Hardware Refresh (SAN)94,464 94,464 54,619 39,845 39,845 42.2 % AM0231: Trackit Replacement 20,000 - - 20,000 - n/a AM0232: Cybersecurity Software (Defender Identity Mgmt & Cloud Security)90,000 - - 90,000 - n/a AM0235: End User Equipment Replacement - 2023- 2026 113,999 113,999 77,656 36,343 36,343 31.9 % AM0236: Data Centre Equipment Replacement - 2023- 2026 64,615 64,615 29,170 35,445 35,445 54.9 % Project to continue into 2025 AM0237: Mobile Equipment Replacement - 2023-2026 21,387 21,387 17,228 4,159 4,159 19.4 % AM0270: Council Chamber A/V Technology 104,000 25,000 9,919 94,081 15,081 60.3 % Project to continue into 2025 AM0271: Cybersecurity Vulnerability Services 48,400 - - 48,400 - n/a AM0272: Cybersecurity SIEM Services 145,200 74,500 73,072 72,128 1,428 1.9 % AM0274: Cybersecurity (2024) (2nd Firewall At JOC)62,400 - - 62,400 - n/a AM0275: Uninteruptable Power Supply Refresh 47,701 20,000 724 46,977 19,276 96.4 % Project to continue into 2025 AM0276: Legal Management System 100,000 20,000 - 100,000 20,000 100.0 % Project to continue into 2027 AM0277: MS Defender Endpoint Protection 60,000 - - 60,000 - n/a AM0371: Unplanned - IT Emergency Repairs Contingency 2024 20,000 1,100 1,094 18,906 6 0.6 % AM0372: Network Access Control 68,000 - - 68,000 - n/a AM0373: Internet Redundancy 108,000 - - 108,000 - n/a AM0375: CRM Replacement 300,000 - - 300,000 - n/a GN0005: Customer Relationship Mgmt (CRM)12,045 1,431 (127) 12,172 1,558 108.9 % Project completed under budget, to be closed. GN0015: Migration To Cityview Workspace 100,000 - - 100,000 - n/a GN0115: Cityview Portal Implementation 81,090 - - 81,090 - n/a GN0116: Digital Education Program 50,000 10,000 - 50,000 10,000 100.0 % Project to continue into 2025 GN0117: ArcGIS Portal 44,997 - - 44,997 - n/a GN0120: Green/Blue Bin Portal 40,000 - - 40,000 - n/a SO0017: Info Tech Strategic Plan Implementation 121,406 121,406 79,779 41,627 41,627 34.3 % SO0075: Cybersecurity Awareness Training 20,000 20,000 10,176 9,824 9,824 49.1 % Project to continue into 2025 Total Information Technology Services 2,315,006 851,594 584,468 1,730,538 267,126$ 31.4 % Finance Total 5,069,455$ 1,781,238$ 1,266,890$ 3,802,565$ 514,348$ 28.9 % 10 of 11 Page 101 of 115 A B ($)(%) Planned/Budgeted Capital Spend for 2024 Variance - Forecast vs. Actuals A - B Variance Explanation Oct. 31, 2024 Forecast 2024 Actuals Variance - Planned vs. Actuals Corporate Services Legal Services SO0012: Risk Management (Conditionally Approved 2023)16,771 7,500 2,348 14,424 5,153 68.7 % Project to continue into 2027 Total Legal Services 16,771 7,500 2,348 14,424 5,153$ 68.7 % Human Resources AM0004: HR Info/Payroll System 119,719 1,148 1,148 118,571 - - SO0052: Job Hazard Assessment 25,472 - - 25,472 - n/a Total Human Resources 145,191 1,148 1,148 144,043 -$ - Project Management & Business Transformation GN0001: Customer Experience Plan (CEP)74,290 - - 74,290 - n/a GN0152: Facilities & Trails Accessibility Assessment 85,000 76,500 42,230 42,770 34,270 44.8 % SO0006: Emergency Response Plan Update 29,820 - - 29,820 - n/a Total Project Management & Business Transformation 189,110 76,500 42,230 146,879 34,270$ 44.8 % Bylaw GN0025: Bylaw Radios 17,518 4,537 4,537 12,981 - - GN0111: AMPS Implementation 116,695 81,997 36,997 79,698 45,000 54.9 % Project to continue into 2025 Total Bylaw 134,213 86,534 41,534 92,680 45,000$ 52.0 % Access Aurora AM0001: Accessibility Plan 18,071 - - 18,071 - n/a Total Access Aurora 18,071 - - 18,071 - n/a Corporate Services Total 503,356$ 171,682$ 87,259$ 416,096$ 84,423$ 49.2 % Total Capital Projects 81,686,662$ 42,647,063$ 35,685,424$ 46,001,239$ 6,961,639$ 16.3 % 11 of 11 Page 102 of 115 100 John West Way Aurora, Ontario L4G 6J1 (905) 727-3123 aurora.ca Town of Aurora Audit Committee Report No. FIN2 5 -0 36 Subject: Aurora BIA 2024 Audit Report and Financial Statements Prepared by: Jason Gaertner, Manager Financial Management Department: Finance Date: June 24, 2025 Recommendation 1. That Report No. FIN25-036 be received; and 2. That the Aurora BIA’s 2024 Audit Report and Financial Statements for the year ended December 31, 2024, be approved. Executive Summary The Aurora Business Improvement Association (BIA) audited financial statements and auditor’s report for the year ended December 31, 2024, are presented for approval.  The Audit Committee’s approval of the Aurora BIA’s 2024 audited financial statements is required Background The Aurora BIA was established on September 18, 2018, via bylaw 6128-18. As per sections 7.5 and 7.6 of this bylaw, the BIA’s accounts and transactions must be audited by the auditor of the Town and their audited financial statements presented to Council on an annual basis. On January 28, 2025, the Aurora BIA was dissolved and its associated bylaws repealed via By-law Number 6666-25. Page 103 of 115 June 24, 2025 2 of 3 Report No. FIN25-036 Analysis The Audit Committee’s approval of the Aurora BIA’s 2024 audited financial statements is required Historically, the Aurora BIA’s management board was empowered to approve the annual audit report and financial statements. Due to the BIA’s dissolution on January 28, 2025, the board is no longer able to perform this role. As a result, Audit Committee is being asked to approve the Aurora BIA’s 2024 audit report and financial statements. Advisory Committee Review No applicable Legal Considerations The annual audit of the Aurora BIA’s financial statements fulfils the statutory requirements set out in Section 296 of the Act and By-law Numbers 6128-18 and 5356- 21. Financial Implications There are no financial implications relating to the 2024 yearend audit. The statements included are presented for receipt by the Audit Committee, as well as to obtain approval of the 2024 Financial Statements. Communications Considerations The 2024 audited financial statements for the Aurora Business Improvement Association will be published on the Town’s website. Climate Change Considerations The information contained within this report does not impact greenhouse gas emissions or impact climate change adaption. Page 104 of 115 June 24, 2025 3 of 3 Report No. FIN25-036 Link to Strategic Plan The annual audit is a statutory requirement that is guided by professional standards applicable to all Canadian licensed audit practitioners. Preparation and publication of the annual audited financial statements support the Strategic Plan principles of integrity, progressive corporate excellence and continuous improvement. Alternative(s) to the Recommendation Not applicable Conclusions The auditors are ready to issue an unqualified opinion on the fairness and completeness of the Aurora BIA’s financial statements for the year ended December 31, 2024. Staff recommend the approval of the statements. Once approved and final versions are prepared, the Mayor and CAO will sign the statements. Attachments Attachment 1 – 2024 Draft Aurora BIA Financial Statements Previous Reports PDS24-042, Aurora Business Improvement Area Annual Report 2023 PDS24-140, Aurora BIA Governance Review & Downtown Collaboration Model Pre-submission Review Agenda Management Team review on June 13, 2025 Approvals Approved by Rachel Wainwright-van Kessel, CPA, CMA, Director, Finance Approved by Doug Nadorozny, Chief Administrative Officer Page 105 of 115 DRAFT #4 April 29, 2025 Financial Statements of AURORA BUSINESS IMPROVEMENT ASSOCIATION And Independent Auditor's Report thereon Year ended December 31, 2024 Attachment 1 Page 106 of 115 INDEPENDENT AUDITOR'S REPORT To the Directors of the Aurora Business Improvement Association Opinion We have audited the financial statements of the Aurora Business Improvement Association (the Entity), which comprise: • the statement of financial position as at December 31, 2024 • the statement of operations and accumulated surplus for the year then ended • the statement of changes in net financial assets for the year then ended • the statement of cash flows for the year then ended • and notes to the financial statements, including a summary of significant accounting policies (Hereinafter referred to as the "financial statements"). In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Entity as at December 31, 2024, and its financial performance and its cash flows for the year then ended in accordance with Canadian public sector accounting standards. Basis for Opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the "Auditor's Responsibilities for the Audit of the Financial Statements" section of our auditor's report. We are independent of the Entity in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Page 107 of 115 Page 2 Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Entity's ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Entity or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Entity's financial reporting process. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity's internal control. Page 108 of 115 Page 3 • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Entity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Entity to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. • Communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. DRAFT Chartered Professional Accountants, Licensed Public Accountants Vaughan, Canada Page 109 of 115 AURORA BUSINESS IMPROVEMENT ASSOCIATION 1 DRAFT Statement of Financial Position December 31, 2024, with comparative information for 2023 2024 2023 Financial Assets Cash $ 33,479 $ 26,064 Financial Liabilities Accounts payable and accrued liabilities 5,000 5,000 Net financial assets 28,479 21,064 Non-Financial Assets Prepaid expenses 3,201 5,152 Accumulated surplus $ 31,680 $ 26,216 See accompanying notes to financial statements. On behalf of the Board: Director Director Page 110 of 115 AURORA BUSINESS IMPROVEMENT ASSOCIATION 2 DRAFT Statement of Operations and Accumulated Surplus Year ended December 31, 2024, with comparative information for 2023 2024 Budget 2024 Actual 2023 Actual (Note 2) Revenue: Contribution from the town of Aurora $ 74,778 $ 74,778 $ 18,825 Expenses: BIA coordinator fee (note 3) 43,900 43,223 20,409 Advertising 15,000 – – Events 10,100 7,156 26 Website maintenance 10,000 6,077 11,326 Professional fees 5,000 6,859 5,000 Insurance 4,400 4,355 4,209 Materials and supplies 3,042 1,168 791 Website hosting 2,500 – – Memberships 1,700 467 186 Bank charges 200 9 – 95,842 69,314 41,947 Annual surplus (deficit) (21,064) 5,464 (23,122) Accumulated surplus, beginning of year 25,866 26,216 49,338 Accumulated surplus, end of year $ 4,802 $ 31,680 $ 26,216 See accompanying notes to financial statements. Page 111 of 115 AURORA BUSINESS IMPROVEMENT ASSOCIATION 3 DRAFT Statement of Changes in Net Financial Assets Year ended December 31, 2024, with comparative information for 2023 2024 2023 Annual surplus (deficit) $ 5,464 $ (23,122) Change in prepaid expenses 1,951 (2,389) Change in net financial assets 7,415 (25,511) Net financial assets, beginning of year 21,064 46,575 Net financial assets, end of year $ 28,479 $ 21,064 See accompanying notes to financial statements. Page 112 of 115 AURORA BUSINESS IMPROVEMENT ASSOCIATION 4 DRAFT Statement of Cash Flows Year ended December 31, 2024, with comparative information for 2023 2024 2023 Cash provided by (used in): Operating activities: Annual surplus (deficit) $ 5,464 $ (23,122) Change in non-cash operating working capital: Accounts payable and accrued liabilities – 465 Prepaid expenses 1,951 (2,389) Increase (decrease) in cash 7,415 (25,046) Cash, beginning of year 26,064 51,110 Cash, end of year $ 33,479 $ 26,064 See accompanying notes to financial statements. Page 113 of 115 5 AURORA BUSINESS IMPROVEMENT ASSOCIATION DRAFT Notes to Financial Statements Year ended December 31, 2024 On September 18, 2018, the Council of The Corporation of the Town of Aurora passed a by -law pursuant to the Municipal Act to designate an area as an improvement area to be known as the Aurora Business Improvement Association (the "Association"). The Association is committed to improving and promoting the Aurora Historical Business District through investment and advocacy to build and maintain its position as Aurora's premier shopping, business and entertainment destination. The association is economically dependant on the Town for funding its operations. 1. Significant accounting policies: The financial statements of the Association are prepared in accordance with Canadian generally accepted accounting principles for local governments, as recommended by the Public Sector Accounting Board of the Chartered Professional Accountants of Canada. (a) Management responsibility: The financial statements of the Association are the representations of management. (b) Basis of accounting: Sources of revenue and expenses are reported on the accrual basis of accounting. The accrual basis of accounting recognizes revenue as it becomes available and measurable; expenses are recognized as they are incurred and measurable as a result of receipt of goods or services and the creation of a legal obligation to pay. (c) Non-financial assets: Non-financial assets include prepaid expenses. They are not available to discharge existing liabilities and are held for use in the provision of services. 2. Budget figures: The budget figures included in the financial statements were approved by the Council of The Corporation of the Town of Aurora on April 2, 2024. Page 114 of 115 6 AURORA BUSINESS IMPROVEMENT ASSOCIATION DRAFT Notes to Financial Statements (continued) Year ended December 31, 2024 3. BIA coordinator fee: In the prior year, the Association engaged a single firm to carry out key functions of the Association, including, but not limited to: event promotion, advertising, social media coordination, and Association advocacy activities. As a result, expenses that would previously have been incurred directly by the Association, and reported via multiple expense captions, are included within the BIA coordinator fee expense caption. 4. Subsequent events: Subsequent to the year end, the Town of Aurora made a resolution on January __, 2025, to wind up the entity. This decision was made in accordance with the Towns governing documents and applicable laws. The dissolution will involve settling all outstanding obligations, distributing any remaining assets in accordance with the Towns dissolution plan, and formally ceasing operations. The financial statements have been prepared on a going concern basis, and do not reflect any adjustments relating to the dissolution. The operations of the Entity will be acquired by the Town subsequent to the dissolution. Page 115 of 115