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APTD AGENDA - Finance Advisory Committee - 20220118Town of Aurora Finance Advisory Committee Meeting Agenda Date:January 18, 2022 Time:5:45 p.m. Location:Video Conference Due to the COVID-19 pandemic, meetings will be available to the public via live stream only on the Town’s YouTube Channel. To participate electronically please visit aurora.ca/participation. Pages 1.Call to Order 2.Appointment of Committee Chair That the Committee elect a Chair for year 2022 of the Finance Advisory Committee (2018-2022 term). 3.Approval of the Agenda 4.Declarations of Pecuniary Interest and General Nature Thereof 5.Receipt of the Minutes 5.1.Finance Advisory Committee Meeting Minutes of December 7, 2021 1 That the Finance Advisory Committee meeting minutes of December 7, 2021, be received for information. 6.Delegations 7.Matters for Consideration 7.1.Memorandum from Senior Advisor, Financial Systems and Policy; Re: Property Tax and Water Bill Payment Options Update 4 That the memorandum regarding Property Tax and Water Bill Payment Options Update be received for information; and 1. That the Finance Advisory Committee comments regarding Property Tax and Water Bill Payment Options be received and referred to staff for consideration and further action as appropriate. 2. 8.New Business 9.Adjournment 1 Town of Aurora Finance Advisory Committee Meeting Minutes Date: Time: Location: Tuesday, December 7, 2021 5:45 p.m. Video Conference Committee Members: Councillor Harold Kim (Chair) Mayor Tom Mrakas Councillor Michael Thompson Other Attendees: Rachel Wainwright-van Kessel, Director of Finance Jason Gaertner, Manager, Financial Management Linda Bottos, Council/Committee Coordinator _____________________________________________________________________ 1. Procedural Notes This meeting was held electronically as per Section 19. i) of the Town's Procedure By-law No. 6228-19, as amended, due to the COVID-19 situation. The Chair called the meeting to order at 5:47 p.m. 2. Approval of the Agenda Moved by Councillor Thompson Seconded by Mayor Mrakas That the agenda as circulated by Legislative Services be approved. Carried 3. Declarations of Pecuniary Interest and General Nature Thereof There were no declarations of pecuniary interest under the Municipal Conflict of Interest Act, R.S.O. 1990, c. M.50. 4. Receipt of the Minutes Page 1 of 7 2 4.1 Finance Advisory Committee Meeting Minutes of October 12, 2021 Moved by Mayor Mrakas Seconded by Councillor Thompson That the Finance Advisory Committee meeting minutes of October 12, 2021, be received for information. Carried 5. Delegations None. 6. Matters for Consideration 6.1 Memorandum from Manager, Financial Management; Re: 2022 Draft Work Plan for the Finance Advisory Committee Staff provided an overview of the memorandum and draft work plan for 2022. The Committee expressed support for the work plan and inquired about whether there were other initiatives for which the Committee could provide assistance. Staff agreed to consider any opportunities and advise. The Committee suggested that a report outlining the 2018-2022 term accomplishments of the Finance Advisory Committee (FAC) be provided to Council in 2022. Staff noted that the Committee report planned for the June 2022 FAC meeting would form a good basis for providing that information. The Committee inquired about whether any further financial assistance is anticipated from the province, and staff advised they were not aware of any available assistance at this time. Moved by Councillor Thompson Seconded by Mayor Mrakas 1. That the memorandum regarding 2022 Draft Work Plan for the Finance Advisory Committee be received; and 2. That the 2022 Draft Work Plan for the Finance Advisory Committee be approved. Carried Page 2 of 7 3 7. New Business The Committee inquired about the format of the upcoming Finance Advisory Committee meetings in 2022, and the Mayor advised that clarification would be provided on whether the meetings will be held in person or electronically. 8. Adjournment Moved by Councillor Thompson Seconded by Mayor Mrakas That the meeting be adjourned at 5:59 p.m. Carried Page 3 of 7 100 John West Way Aurora, Ontario L4G 6J1 (905) 727-3123 aurora.ca Town of Aurora Memorandum Finance Re: Property Tax and Water Bill Payment Options Update To: Finance Advisory Committee From: Matthew Shum, Senior Advisor Financial Systems and Policy Date: January 18, 2022 Recommendations 1. That the memorandum regarding property tax and water bill payment options update be received for information; and 2. That the Finance Advisory Committee comments regarding the report on property tax and water bill payment options be received and referred to staff for consideration and further action as appropriate. Background The Town of Aurora collects $30 million in water billings and $145 million in taxes annually (before remittances to the Boards of Education and York Region). There are five ways property tax and water bills can be paid: 1. Online or telephone banking; 2. At local bank branch by teller or automatic teller machine (ATM); 3. Pre-authorized payment plans for direct debit from their bank accounts; 4. By mail; and 5. Through our after-hours drop box or in person. Currently, cash is accepted at the local bank branches or in person at Access Aurora. Cash is not accepted by mail or through the after-hours drop box. Page 4 of 7 Property Tax and Water Bill Payment Options Update January 18, 2022 Page 2 of 4 Analysis The use of cash at Access Aurora to pay these bills is declining compared to other forms of payment Finance has observed a decline in cash payment transactions at Access Aurora counters for property tax and water bill payments in recent years. In 2019, less than $2.3 million of the gross $175 million combined water and tax revenues were collected through cash. Payments by cheque is the most popular method of payment followed by debit/credit cards, with cash being the least used method. Table 1 Transactions Processed by Access Aurora at Town Hall 2015 … 2018 2019 2020* # % … # % # % # % Cash 3,390 14% … 2,433 13% 2,962 14% 793 6% Debit/Credit 4,332 18% … 3,961 22% 5,029 25% 1,543 11% Cheques 16,612 68% … 12,000 65% 12,510 61% 11,551 83% Grand Total 24,334 100% … 18,394 100% 20,501 100% 13,887 100% During the pandemic, the Town continued to receive property tax and water bill payments despite the public’s limited access to Aurora’s Town Hall as alternative payment options were available including cash payments at financial institutions by teller or ATM. A survey of other Ontario municipalities show support for moving away from cash towards other payment options The increasing trend towards digital payments has also been observed by neighbouring municipalities. Some of these municipalities have already adopted policies to eliminate cash transactions for some or all their services as shown in the table below: Page 5 of 7 Property Tax and Water Bill Payment Options Update January 18, 2022 Page 3 of 4 Table 2 Acceptance of cash payments at other municipalities Municipality Eliminating Cash Comments Brampton Jan 1, 2021 Property tax + Building division fees Caledon Considering/discourage cash Georgina No Markham Partial - Jan 1, 2020 Property tax Milton March 1, 2021 Property tax Mississauga June 24, 2020 Cashiers at Civic Centre Newmarket Estimated 2022 with report going to Council in 2021 Cashless during COVID Oakville Partial - Jan 1, 2021 Town Hall only Parry Sound No Has seen a decrease, but will continue to accept cash Peterborough Considering Currently preparing additional research on cashless options Pickering Considering Richmond Hill No Thunder Bay No Cashier in Civic Centre was closed throughout 2021 Toronto No Vaughan Yes – effective immediately Passed at Sept 14, 2021 Committee of the Whole Whitby No Believes cash transactions will naturally lessen Windsor No Trending towards cashless Page 6 of 7 Property Tax and Water Bill Payment Options Update January 18, 2022 Page 4 of 4 There are many benefits to eliminating cash transactions for property tax and water bill payments There are benefits to not accepting cash for payment of tax and water bills at Access Aurora. These include:  Reduced risk of theft  Reduced risk of fraud from counterfeit bills  Reduced foot traffic at Town Hall  Reduced health and safety risks with handling cash  Reduced frequency and cost for armoured car services Most of the cash collected at Town Hall are in the days that lead up to the due date of a tax installment. The risks of theft and fraud from counterfeit bills will both be greatly reduced if cash is eliminated as a payment method at Access Aurora. Bill payments for tax and water make up for over half to three quarters of the cash transactions processed by Access Aurora. Greatly reducing the volume of cash transactions at Access Aurora will reduce foot traffic and the handling of cash, both of which will improve health and safety as demonstrated during the pandemic. Cash will continue to be an option for payment by property owners and water customers at their financial institution. Financial institutions have better tools and expertise to manage potential theft, fraud and counterfeit cash. In addition, they have a responsibility to report large cash deposits to Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) where municipalities do not. A communication plan will be developed to provide information on how to pay bills to property owners and water customers Finance will work closely with Communications to develop a plan to inform the public of updated ways to pay their property tax and water bills will be rolled out along with the elimination of cash transactions at on-site cashiers for tax and water bills but still having the option to pay by cash at their financial institution. Attachments None Page 7 of 7