Loading...
Agenda - Audit Committee - 20220628Town of Aurora Audit Committee Meeting Agenda Date:Tuesday, June 28, 2022 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 2.Land Acknowledgement 3.Approval of the Agenda 4.Declarations of Pecuniary Interest and General Nature Thereof 5.Delegations 6.Consideration of Items Requiring Discussion 6.1.FIN22-024 - 2021 Audited Financial Statements and Audit Report 1 (Presentation to be provided by Giselle Bodkin, Partner, and Andrea Nauss, Manager, Assurance and Accounting, BDO Canada LLP) That Report No. FIN22-024 be received; and1. That the 2021 Audit Reports and Financial Statements for the year ended December 31, 2021, be approved and published on the Town’s website. 2. 6.2.FIN22-022 - 2021 Year-end Operating and Capital Results – As of Dec. 31, 2021 66 That Report No. FIN22-022 be received for information.1. 7.Adjournment 100 John West Way Aurora, Ontario L4G 6J1 (905) 727-3123 aurora.ca Town of Aurora Audit Committee Report No. FIN2 2 -0 24 Subject: 2021 Audited Financial Statements and Audit Report Prepared by: Elizabeth Adams-Quattrociocchi, CPA, CGA, Manager of Financial Reporting & Revenue / Deputy Treasurer Department: Finance Date: June 28, 2022 Recommendation 1. That Report No. FIN22-024 be received; and 2. That the 2021 Audit Reports and Financial Statements for the year ended December 31, 2021 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, 2021 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  Procurement for external audit services for 2022, 2023 and 2024 is in progress Background The entire audit package as presented by our auditors BDO Canada LLP is attached, this package includes the 2021 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 BDO Canada LLP. These statements Page 1 of 98 June 28, 2022 2 of 6 Report No. FIN22-024 have been marked DRAFT by the auditors as the audit cannot technically be completed until 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. Then financial statements will be made publicly available by being placed 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, BDO performed a review of all Council minutes, including closed session minutes, prior year’s internal control letters and consider 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 2021, as currently drafted, reflect an operating surplus of $46,247,000. This amount reconciles to the internal report combined tax and user rate funded operating budget surplus of $3,296,600 as shown in Table 1. Page 2 of 98 June 28, 2022 3 of 6 Report No. FIN22-024 Table 1 Public Sector Accounting Board 2020 Surplus Reconciliation Description Amount Tax levy supported budget surplus 2,962,200 User rate supported budget surplus 334,400 Traditional Balanced Consolidated Budget Surplus 3,296,600 Add Back: Debt principal repaid included 1,105,139 Add: Transfers to/from reserves 10,080,000 Add: Capital assets assumed through development 17,590,930 Add: Net deferred revenue adjustment – DC, CIL, FGT 27,378,000 Add: Investment income allocated directly to reserves 2,457,700 Add: Net capitalization of assets adjustment 2,159,700 Deduct: Amortization of capital assets (17,323,000) Deduct: Loss on disposal of capital assets (498,000) PSAB 2021 “Annual Surplus”: Audited (Draft) $46,247,000 Of note, the operating budgeted transfers to/from reserves amount of $10,080,000 represent budgeted 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 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 its assets. In these instances, the PSAS require that the Town record a revenue equivalent to the value of the assets that it has 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 2021 annual surplus. Page 3 of 98 June 28, 2022 4 of 6 Report No. FIN22-024 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 2021, the auditor has defined the Aurora’s materiality thresholds as $10,685,000 for areas surrounding tangible capital assets and $3,000,000 for all other financial statement areas. There were no misstatements identified in 2021. Procurement for external audit services for 2022, 2023 and 2024 is in progress The 2022 yearend audit plan is outside of the current contract with BDO. The procurement for upcoming audit services for 2022, 2023 and 2024 is currently underway and is expected to be completed in the beginning of quarter three of 2022. The requirement of the RFP is an audit plan that includes the scope and approach to the planned audit. Staff are not in a position to comment or challenge the approach that the auditors develop in order to fulfil their professional obligations required when rendering an audit opinion report. From the perspective of the 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. 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 Municipal Act. Page 4 of 98 June 28, 2022 5 of 6 Report No. FIN22-024 Financial Implications There are no financial implications relating to the 2021 yearend audit report. The statements included are presented for receipt by the Audit Committee, as well as to obtain approval of the Consolidated 2021 Financial Statements so that the statements may be published as required by legislation. The cost for the 2022 audit has been provided for within the 2022 budget. An amount of $40,900 has been budgeted for the 2022 audit with anticipated fees of $31,500 for the audit of the consolidated financial statements, excluding administration charges and taxes. Additional audit expenses from this budget include independent actuarial valuations separately commissioned by staff. Communications Considerations In accordance with the Municipal Act, 2001, S.O.2001, c25, Section 295, the 2021 audited financial statements will be published on the Town’s website. The Town of Aurora will use ‘Inform’ as the level of engagement for the Town’s 2021 audited financial statements. There are five different levels of community engagement to consider, with each level providing the community more involvement in the decision making process. These levels are: Inform, Consult, Involve, Collaborate and Empower. Examples of each can be found in the Community Engagement Policy. These options are based on the International Association of Public Participation (IAP2) Spectrum and assist in establishing guidelines for clearly communicating with our public and managing community engagement. In order to inform the public, this report will be posted 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 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. Page 5 of 98 June 28, 2022 6 of 6 Report No. FIN22-024 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, 2021. 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 – 2021 Year-End Auditor’s reporting package Attachment #2 – 2021 Draft Financial Statements Previous Reports FIN21-032 – 2012 Audited Financial Statements with Audit Report, June 22, 2021 Pre-submission Review Agenda Management Team review on June 16, 2022 Approvals Approved by Rachel Wainwright-van Kessel, CPA, CMA, Director, Finance Approved by Doug Nadorozny, Chief Administrative Officer Page 6 of 98 START Audit final report to the Audit Committee for the year ended December 31, 2021 The Corporation of the Town of Aurora Attachment 1 Page 7 of 98 Page 8 of 98 Back to contents 3 | The Corporation of the Town of Aurora Table of contents APT Next Gen We use our APT Next Gen software and documentation tool to save time, streamline processes, and go paperless with your audit. LEARN MORE DISCOVER THE DIGITAL DIFFERENCE For the year ended December 31, 2021 Audit at a glance1 4 Status of the audit2 5 Audit findings3 6 Internal control matters4 7 Unadjusted differences5 8 Other required communications6 9 How we audit financial statements7 10 Appendices8 11 Page 9 of 98 Back to contents Audit at a glance As communicated to you in our Planning Report to the Audit Committee, preliminary materiality was assessed as: $9,866,000 for financial statement areas surrounding tangible capital assets based on 2% of tangible capital assets $2,222,000 for remaining financial statement areas based on 2% of revenues. Final materiality was assessed as: $10,685,000 for financial statement areas surrounding tangible capital assets based on 2% of tangible capital assets $3,000,000 for remaining financial statement areas based on 2% of revenues. We are not aware of any fraud affecting the Town. If you have become aware of changes to processes or are aware of any instances of actual, suspected, or alleged fraud since our discussions held at planning, please let us know. We have complied with relevant ethical requirements and are not aware of any relationships between the Town and our Firm that may reasonably be thought to bear on our independence. For the year ended December 31, 2021 4 | The Corporation of the Town of Aurora Page 10 of 98 Back to contents Status of the audit We have substantially completed our audit of the year ended December 31, 2021, consolidated financial statements, pending completion of the following items: Receipt of signed management representation letter Subsequent events review through to the consolidated financial statements approval date Approval of consolidated financial statements by the Audit Committee. We conducted our audit in accordance with Canadian generally accepted auditing standards. The objective of our audit was to obtain reasonable, not absolute, assurance about whether the consolidated financial statements are free from material misstatement. See Appendix A The scope of the work performed was substantially the same as that described in our Planning Report to the Audit Committee dated June 22, 2021. For the year ended December 31, 2021 5 | The Corporation of the Town of Aurora Page 11 of 98 Back to contents DISCOVER THE DIGITAL DIFFERENCE We use BDO Portal to help you collaborate with your audit team in a seamless way placing everything you need in one accessible, secure place. BDO Portal LEARN MORE Audit findings As part of our ongoing communications with you, we are required to have a discussion on our views about significant qualitative aspects of the Town's accounting practices, including accounting policies, accounting estimates and consolidated financial statements disclosures. We look forward to exploring these topics in depth and answering your questions. A summary of the key discussion points are below: Financial statement areas Risks noted Audit findings Management override of internal controls A common significant risk in all audit engagements is the risk of management override of controls. Management is in a unique position to perpetrate fraud because indirectly manipulate accounting records and prepare fraudulent financial statements by overriding controls that otherwise appear to be operating effectively. In accordance with auditing standards, BDO has performed specific procedures that include testing journal entries, reviewing accounting estimates for biases and obtaining and evaluating the business rationale for transactions that are outside the normal course of operations for the Town, if any. No issues were noted in the performance of these procedures. Revenue recognition assumed lands, developer charges and gas tax revenues There is a significant risk regarding the fair value estimates of the land assumed by the town as the transactions are not officially There is a significant risk related to revenue recognized with respect to development charges and gas tax revenue as judgement is required in determining the timing of revenue recognition. In accordance with auditing standards, BDO has performed specific procedures that include reviewing fair value estimates for bias and obtaining and evaluating the business rationale of transactions that are outside the normal course of operations for the Town, if any. No issues were noted in the performance of these procedures. BDO also reviewed deferred revenue recognition policies for the Town and noted that their treatment is consistent with Public Service Accounting Standards. BDO Portal We use BDO Portal to help you collaborate with your audit team in a seamless way placing everything you need in one accessible, secure place. LEARN MORE DISCOVER THE DIGITAL DIFFERENCE For the year ended December 31, 2021 6 | The Corporation of the Town of Aurora Page 12 of 98 Back to contentsBack to contents Internal control matters internal control environment: Documented operating systems to assess the design and implementation of control activities that were relevant to the audit. Discussed and considered potential audit risks with management. We considered the results of these procedures in determining the extent and nature of audit testing required. We are required to report to you in writing about any significant deficiencies in internal control that we have identified during the audit. A significant deficiency is defined as a deficiency or combination of deficiencies in internal control that merits the attention of those charged with governance. result, it does not cover every aspect of internal controls only those relevant to preparing the consolidated financial statements and designing appropriate audit procedures. This work was not for the purpose of expressing an opinion on the effectiveness of internal control. No control deficiencies were noted that, in our opinion, are of significant importance to discuss. For the year ended December 31, 2021 7 | The Corporation of the Town of Aurora Page 13 of 98 Back to contentsBack to contents Unadjusted differences Summary of unadjusted differences There were no unadjusted differences noted during the course of our audit engagement. For the year ended December 31, 2021 8 | The Corporation of the Town of Aurora Page 14 of 98 Back to contentsBack to contents Other required communications Professional standards require independent auditors to communicate with those charged with governance certain matters in relation to an audit. In addition to the points communicated within this letter, the attached table summarizes these additional required communications. For the year ended December 31, 2021 9 | The Corporation of the Town of Aurora Issue BDO response Potential effect on the financial statements of any material risks and exposures, such as pending litigation, that are required to be disclosed in the consolidated financial statements. No items in this area to note during the audit. Matters involving non-compliance with laws and regulations. No items in this area to note during the audit. Subsequent events that have caused changes to the audit report. No subsequent events to note. Emphasis of matters paragraph or other matters paragraphs. No such paragraphs Significant matters arising form the audit that were discussed or subject to correspondence with management.No items to note. Page 15 of 98 Back to contents How we audit financial statements: Our six-step audit process 1 SCOPING Complete a preliminary review to plan the audit, determine the materiality level, and define the audit scope 2 IDENTIFY AND ASSESS RISK Focus on those areas of financial statements that contain potential material misstatements as a consequence of the risks you face 3 DESIGN AUDIT PROCESS Design an appropriate audit strategy to obtain sufficient assurance and enable us to report on the financial statements 4 OBTAIN AUDIT EVIDENCE Perform audit procedures while maintaining appropriate degree of professional skepticism, to conclude whether or not the financial statements are presented fairly 5 FORM OPINION Evaluate whether we have enough evidence to conclude that the financial statements are free from material misstatement, and consider the effect of any potential misstatements found 6 REPORT Communicate our opinion and details of matters on which we are required to report New Standard for Audit Quality ISQM 1 The quality of an audit depends not only on the people conducting it but also on the systems underpinning it. These new rules up the ante for your audit quality. SEE THE STANDARD For the year ended December 31, 2021 10 | The Corporation of the Town of Aurora Page 16 of 98 Back to contents Appendices For the year ended December 31, 2021 11 | The Corporation of the Town of Aurora Appendix B: Representation letter Appendix C: Year-end Report Page 17 of 98 Back to contents For the year ended December 31, 2021 12 | The Corporation of the Town of Aurora Back to contents Page 18 of 98 Page 19 of 98 Page 20 of 98 Back to contentsBack to contents For the year ended December 31, 2021 13 | The Corporation of the Town of Aurora Appendix B: Representation letter Page 21 of 98 Page 22 of 98 Page 23 of 98 Page 24 of 98 Page 25 of 98 Back to contentsBack to contents For the year ended December 31, 2021 14 | The Corporation of the Town of Aurora Appendix C: Year-end Report Page 26 of 98 Page 27 of 98 Page 28 of 98 Page 29 of 98 Page 30 of 98 Page 31 of 98 Page 32 of 98 Page 33 of 98 Page 34 of 98 Page 35 of 98 Page 36 of 98 Page 37 of 98 Page 38 of 98 The Corporation of the Town of Aurora Consolidated Financial Statements For the year ended December 31, 2021 Attachment 2 Page 39 of 98 The Corporation of the Town of Aurora Consolidated Financial Statements For the year ended December 31, 2021 Contents Independent Auditor's Report 1-2 Consolidated Financial Statements Consolidated Statement of Financial Position 3 Consolidated Statement of Operations and Accumulated Surplus 4 Consolidated Statement of Change in Net Financial Assets 5 Consolidated Statement of Cash Flows 6 Notes to the Consolidated Financial Statements 7 - 23 Schedule 1 - Consolidated Schedule of Segmented Disclosure 24 - 25 Page 40 of 98 Page 41 of 98 Page 42 of 98 The Corporation of the Town of Aurora Consolidated Statement of Financial Position December 31 2021 2020 (Dollar amounts presented in '000's) Financial assets Cash (note 3) $ 12,161 $ 10,046 Taxes receivable 11,546 15,228 User fees receivable (note 5)5,919 6,659 Accounts receivable 13,969 8,677 Portfolio investments (note 6) 155,972 130,181 199,567 170,791 Liabilities Notes payable and bank indebtedness (note 8) 9,338 2,700 Accounts payable and accrued liabilities 28,717 25,270 Deposits (note 9) 7,701 3,592 Deferred revenue (note 10) 51,007 49,910 Employee benefits liabilities (note 11) 1,830 1,690 Net long-term liabilities (note 12) 11,452 7,582 110,045 90,744 Net financial assets 89,522 80,047 Non-financial assets Tangible capital assets (note 23) 534,266 497,632 Prepaid expenses 217 79 534,483 497,711 Accumulated surplus (note 13) $ 624,005 $ 577,758 Contingencies and contractual obligations (notes 19 and 20) Approved by Council Mayor Chief Administrative Officer The accompanying notes are an integral part of these consolidated financial statements 3 Page 43 of 98 The Corporation of the Town of Aurora Consolidated Statement of Operations and Accumulated Surplus Budget For the year ended December 31 2021 2021 2020 (Dollar amounts presented in '000's) (note 4) Revenue Taxation (note 14) $ 52,381 $ 51,875 $ 52,715 User fees 35,642 51,601 36,432 Grants (note 15) 3,192 13,658 3,205 Loss on tangible capital asset disposal -(498)(607) Assumed infrastructure assets -17,591 9,730 Other (note 16) 7,013 16,211 8,686 98,228 150,438 110,161 Expenses General government 19,251 18,145 15,679 Protection to person and property 15,163 14,804 14,565 Transportation services 11,089 10,950 10,014 Environmental services 35,198 35,291 31,897 Leisure and cultural services 23,131 22,393 19,619 Planning and development 2,667 2,608 1,749 106,499 104,191 93,523 Annual surplus (deficit)(8,271)46,247 16,638 Accumulated surplus, beginning of year 577,758 577,758 561,120 Accumulated surplus, end of year $ 569,487 $ 624,005 $ 577,758 The accompanying notes are an integral part of these consolidated financial statements 4 Page 44 of 98 The Corporation of the Town of Aurora Consolidated Statement of Change in Net Financial Assets Budget For the year ended December 31 2021 2021 2020 (Dollar amounts presented in '000's) (note 4) Annual surplus (deficit)$ (8,271)$ 46,247 $ 16,638 Amortization of tangible capital assets 17,323 17,323 16,044 Net proceeds on disposal of tangible capital assets -250 32 Loss on disposal of tangible capital assets -498 607 Acquisition of tangible capital assets -(37,114)(32,888) Assumed infrastructure assets -(17,591)(9,730) Change in prepaid expenses -(138)235 Change in net financial assets 9,052 9,475 (9,062) Net financial assets, beginning of year 80,047 80,047 89,109 Net financial assets, end of year $ 89,099 $ 89,522 $ 80,047 The accompanying notes are an integral part of these consolidated financial statements 5 Page 45 of 98 The Corporation of the Town of Aurora Consolidated Statement of Cash Flows For the year ended December 31 2021 2020 (dollar amounts presented in '000's) Operating transactions Annual surplus $ 46,247 $ 16,638 Non-cash charges to operations: Amortization of tangible capital assets 17,323 16,044 Loss on disposal of tangible capital assets 498 607 Assumed infrastructure assets (17,591)(9,730) Changes in non-cash operating working capital: Taxes receivable 3,682 (5,577) User fees receivable 740 (1,135) Accounts receivable (5,292)(1,297) Accounts payable and accrued liabilities 3,447 7,047 Deposits 4,109 (441) Deferred revenue 1,097 5,366 Employee benefits liabilities 140 127 Prepaid expenses (138)235 Total Operating Transactions 54,262 27,884 Capital transactions Acquisition of tangible capital assets (37,114)(32,888) Net proceeds on disposal of tangible capital assets 250 32 Total Capital Transactions (36,864)(32,856) Investing transactions Decrease (increase) in portfolio investments (25,791)4,042 Financing transactions Advances / (principal repayments) on long-term liabilities 3,870 (1,072) Advances / (principal repayments) of notes payable and bank indebtedness 6,638 2,700 Total Financing Transactions 10,508 1,628 Increase in cash 2,115 698 Cash, beginning of year 10,046 9,348 Cash, end of year $ 12,161 $ 10,046 The accompanying notes are an integral part of these consolidated financial statements 6 Page 46 of 98 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2021 (Dollar amounts presented in '000's) 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 comprise all of the organizations that are accountable for the administration of their financial affairs and resources to the Town and are owned or controlled by the Town. These boards include: The Aurora Public Library Board All inter-organizational and inter-fund transactions and balances are eliminated. 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. Tangible Capital Assets Tangible capital assets are recorded at cost, less accumulated amortization. Cost includes all costs directly attributable to acquisition or construction 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. 7 Page 47 of 98 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2021 (Dollar amounts presented in '000's) 1. Summary of Significant Accounting Policies (continued) Tangible Capital Assets (continued) Buildings 10 - 50 years Landscaping & Other 5 - 20 years Vehicles 7 - 15 years Other Machinery and Equipment 7 - 20 years Library Collection 7 years Computer Equipment 4 - 10 years Facilities (excluding Buildings) 5 - 50 years Transportation Infrastructure Roads 20 - 36 years Signage 1 - 36 years Bridges and Other Structures 15 - 40 years Environmental Infrastructure Underground and Other Networks 15 - 100 years One half of the annual amortization is charged in the year of acquisition and in the year of disposal. 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. 8 Page 48 of 98 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2021 (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). 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 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 assumed infrastructure assets and valuation of tangible capital assets. Actual results could differ from management's best estimates as additional information becomes available in the future. Assumed Infrastructure 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. 9 Page 49 of 98 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2021 (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 credits. 2. Uncertainty due to COVID-19 The global pandemic, as a result of COVID-19 has disrupted economic activities and supply chains. As the impacts of COVD-19 continue, there could be further impact on the Town, its citizens, employees, suppliers and other third party associates that could impact the timing and amounts realized on the Town's assets and future ability to deliver services and projects. At this time, the full potential impact of COVID-19 on the Town is not known. Although the disruption from the virus is expected to be temporary, given the dynamic nature of these circumstances, the duration of disruption and the related financial impact cannot be reasonably estimated at this time. The Town's ability to continue delivering non- essential services and employ related staff, will depend on the legislative mandates from the various levels of government. The Town will continue to focus on collecting receivables, managing expenditures and leveraging existing reserves and available credit facilities to ensure it is able to continue providing essential services to its citizens. 10 Page 50 of 98 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2021 (Dollar amounts presented in '000's) 3. Cash The Town's bank accounts are held at one chartered bank. The bank accounts earn interest at composite prime rate minus 1.75%. As at December 31, 2021, the rate is 0.70% (2020 - 0.70%). The Town has an overdraft credit facility agreement with TD 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, 2021, the rate is 2.20% (2020 - 2.20%) and the outstanding balance is $Nil (2020 - $Nil). The Town has letters of credit outstanding with the bank as at December 31, 2021 of $486,208 (2020 - $486,208), which were required by its utilities provider for security on a development project. 4. Budget Reconciliation The Budget for 2021 adopted by Council on December 15, 2020 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 2021 budget adopted by Council with adjustments as follows: 11 Page 51 of 98 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2021 (Dollar amounts presented in '000's) 4. Budget Reconciliation (continued) Revenue Expense Net Council approved budget: Operating - Town & Library $ 102,352 $ 102,352 $ - Operating - water/sewer - - - Capital (for multiple years) - 24,078 (24,078) Total Council approved budget 102,352 126,430 (24,078) Less: Multiple years capital - (24,078) 24,078 debt principal payments1 - (1,105) 1,105 Plus: 2021 Non-TCA capital - 2,160 (2,160) transfers to/from other funds2 (4,151) (14,231) 10,080 transfers from deferred revenue 27 - 27 amortization expense3 - 17,323 (17,323) Adjusted budget per the consolidated statement of operations $ 98,228 $ 106,499 $ (8,271) 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. 5. User Fees Receivable As of the end of 2021 the Town's water receivables that are in dispute and provided for are $Nil. 6. Portfolio Investments Portfolio investments are comprised of fixed income securities that are primarily federal, provincial and municipal government bonds, debentures and promissory notes and bearer deposits that mature after more than 90 days. Portfolio investments are valued at the lower of cost or market value. Portfolio investments of $155,972 (2020 - $130,181) have a market value of $165,830 (2020 - $140,627). 12 Page 52 of 98 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2021 (Dollar amounts presented in '000's) 7. Land Listed for Sale As of December 31, 2021 the Town has no land listed for sale. 8. Notes Payable and Bank Indebtedness For the purposes of constructing Town Square consisting of a new multi-purpose building, new outdoor square, bridge between the existing library and new multi-purpose building and enhancements to existing nearby buildings, the Town has arranged for a construction line of credit through Infrastructure Ontario. The line of credit is fully open, bears a monthly variable interest rate which was 0.96 percent as of December 31, 2021, interest is paid monthly, and the 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. As of December 31, 2021 the Town has received a total of $9,338 in advances from Infrastructure Ontario resulting in an outstanding balance of $9,338 related to this line of credit. 9. Deposits Beginning Ending Balance 2021 2021 Balance 2021 Inflows Outflows 2021 Refundable Damage Deposits $ 3,592 4,706 (597)$ 7,701 13 Page 53 of 98 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2021 (Dollar amounts presented in '000's) 10. Deferred Revenue Beginning Balance 2021 2021 Inflows 2021 Outflows Ending Balance 2021 Development charges $ 23,402 11,095 (15,799)$ 18,698 Parkland purposes 14,787 5,054 (68)19,773 Federal Gas Tax 7,529 3,609 (5,945)5,193 Revenue Deferral - General 2,375 6,967 (4,484)4,858 Provincial Grants 1,817 1,750 (1,082)2,485 $ 49,910 28,475 (27,378)$ 51,007 14 Page 54 of 98 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2021 (Dollar amounts presented in '000's) 11. Employee Benefits Liabilities 2021 2020 Post-employment benefits $ 1,118 $ 1,074 Accrued sick leave 638 552 1,756 1,626 WSIB benefits 74 64 $ 1,830 $ 1,690 Post-employment benefits 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, 2021 are as follows: 2021 2020 Accrued benefit obligation, beginning of year $ 2,038 $ 1,999 Add: Benefit expense 176 167 Interest cost 71 69 Less: Benefits paid for the period (194)(197) Accrued benefit obligation, end of year 2,091 2,038 Unamortized actuarial losses (335)(412) Accrued benefit liability $ 1,756 $ 1,626 15 Page 55 of 98 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2021 (Dollar amounts presented in '000's) 11. Employee Benefits Liabilities (Continued) The accrued benefit obligations for the Town's post-employment benefits liability and accrued sick leave as at December 31, 2021 are based on actuarial valuations for accounting purposes as at December 31, 2019 with projections to December 31, 2022. 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: 2021 2020 Expected future inflation rates 1.75%1.75% Discount on accrued benefit obligations 3.50%3.50% Drug costs escalation 6.75%6.75% Other health care costs escalation 6.75%6.75% Dental costs escalation 3.75%3.75% The amount of benefits paid by the Town during the year was $73 (2020 - $83). 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, 2021 are based on actuarial valuations for accounting purposes as at December 31, 2019 with projections to December 31, 2022. These actuarial valuations were based on assumptions about future events. 16 Page 56 of 98 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2021 (Dollar amounts presented in '000's) 12. Net Long-term Liabilities 2021 2020 Debenture, bearing interest at 2.29%, maturing in March 2026. Principal and interest is repayable in semi-annual installments of $184.$ 1,563 $ 1,889 Debenture, bearing interest at 4.37%, maturing in September 2025. Principal and interest is repayable in semi-annual installments of $160.1,165 1,426 Debenture, bearing interest at 2.85%, maturing in May 2023. Principal and interest is repayable in semi-annual installments of $318.3,749 4,267 Debenture, bearing interest at 2.65%, maturing in July 2041. Principal and interest is repayable in semi-annual installments of $109.3,375 - Debenture, bearing interest at 2.42%, maturing in July 2036. Principal and interest is repayable in semi-annual installments of $64.1,600 - $ 11,452 $ 7,582 Principal repayments for each of the next five years and thereafter are as follows: 2022 $ 1,359 2023 1,399 2024 1,441 2025 1,485 2026 1,021 Thereafter 4,747 $ 11,452 The interest expense related to the above long-term debt was $219 (2020 - $243). One debenture was issued by The Regional Municipality of York in the name of the Town to fund the construction of a recreation complex. The remaing four 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 Joint Operations Centre, 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-law. 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. 17 Page 57 of 98 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2021 (Dollar amounts presented in '000's) 13. Accumulated Surplus Accumulated surplus is comprised of the following: 2021 2020 Non Financial Surpluses General revenue $(13,606)$ (22,714) Invested in tangible capital assets 534,266 497,632 Less: financed by long-term liabilities (11,452)(7,582) Total non-financial surpluses 509,208 467,336 Reserves set aside by Council for Infrastructure Infrastructure Sustainability - Water Rate Funded 22,930 18,408 Infrastructure Sustainability - Tax Rate Funded 23,964 21,286 46,894 39,694 Reserve funds, set aside for specific purposes by Council 34,064 37,752 Proceeds of sale of Aurora Hydro 33,839 32,976 Total reserves and reserve funds 114,797 110,422 Accumulated surplus $ 624,005 $ 577,758 14. Net Taxation 2021 2020 Total taxes levied by the Town $ 151,221 $ 151,527 Less: Taxes levied on behalf of the Boards of Education 39,202 39,618 Taxes levied on behalf of the Region of York 60,144 59,194 $ 51,875 $ 52,715 15. Grants Revenue 2021 2020 Federal $ 6,157 $ 599 Provincial 4,614 1,442 Other 2,887 1,164 $ 13,658 $ 3,205 18 Page 58 of 98 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2021 (Dollar amounts presented in '000's) 16. Other Revenue 2021 2020 Penalties and interest on taxes $ 1,702 $ 1,148 Fines 187 172 Licenses, permits and fees 4,255 3,054 Interest income 3,687 3,256 Other 6,380 1,056 $ 16,211 $ 8,686 17. Pension Agreements OMERS provides pension services to almost 500,000 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, 2021. The results of this valuation disclosed total actuarial liabilities of $120,796 million in respect of benefits accrued for service with actuarial assets at that date of $117,665 million indicating an actuarial deficit of $3,131 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 2021 ranged from 9.0% to 14.6% depending on the level of earnings. As a result, $2,411 (2020 - $2,264) 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 $37 (2020 - $47). 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, 2021 was $9,306 (2020 - $8,256). 19 Page 59 of 98 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2021 (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 $37,509 during 2021, 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 $11,956 (2020 - $11,044). 21. Segment 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 Segment Disclosure. The nature of the segments and the activities they encompass are as follows: Taxation Revenue The Town's primary source of funding for its operations is achieved through property taxes levied against property owners. Governance & Corporate Support 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. Fire & Emergency Services Central York Fire Services provides fire and emergency services to the residents of Aurora and Newmarket. The cost the Town paid for these services is described in Note 20. Building, Bylaw & Licensing Services The Town issues a variety of licenses and permits. This segment ensures an acceptable quality of building construction and maintenance of properties 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. Roads & Related 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. 20 Page 60 of 98 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2021 (Dollar amounts presented in '000's) 21. Segment Information (continued) Environmental Services This segment represents the water/sewer services and waste management services provided by the Public Works Department. Community Programs & Events This segment represents the services that the Parks & Recreation Services Department provided through community programs and special events. Parks & Facilities This segment maintains numerous recreation facilities, as well as indoor community space for booking and community use. It also maintains parks and playgrounds, open spaces and a vast trail system. Public Library Services This segment of library services covers the Library Board and The Town's library expenses. The funding from the Town to the Library Board is eliminated before the segment amount is determined. 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. 22. Tangible Capital Assets Under Construction Tangible capital assets under construction and other capital work in progress by the Town having a value of $82,772 (2020 - $61,923) 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. 21 Page 61 of 98 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2021 (Dollar amounts presented in '000's) 23. Tangible Capital Assets 2021 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 $ 111,958 $ 116,325 $ 11,820 $ 9,096 $ 31,007 $ 108,381 $ 251,067 $ 23,207 $ 61,923 $ 724,784 Add: Additions during the year 1,363 2,131 774 59 46 85 - 32,656 37,114 Add: Donations and transfers - 33 - 51 7,445 9,212 11,530 778 (11,458)17,591 Add: Net TCA adjustment - - - - 8 1 (5)25 - 29 Less: Disposals during the year -(219)(934)(368)(39)(263)(121)(36)(349)(2,329) Balance, end of year 111,958 117,502 13,017 9,553 38,480 117,377 262,556 23,974 82,772 777,189 Accumulated amortization Balance, beginning of year -50,667 6,770 6,071 13,516 48,269 84,669 17,190 -227,152 Add: Amortization during the year - 5,207 953 908 1,204 3,683 4,722 646 - 17,323 Add: Net TCA adjustment - - - - - - 108 36 - 144 Less: Amortization on disposals -(90)(906)(368)(39)(153)(107)(33)-(1,696) Balance, end of year -55,784 6,817 6,611 14,681 51,799 89,392 17,839 -242,923 Net book value of tangible capital assets $ 111,958 61,718 6,200 2,942 23,799 65,578 173,164 6,135 82,772 534,266 22 Page 62 of 98 The Corporation of the Town of Aurora Notes to the Consolidated Financial Statements December 31, 2021 (Dollar amounts presented in '000's) 23. Tangible Capital Assets (continued) 2020 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 $ 111,495 $ 106,415 $ 11,515 $ 8,845 $ 30,320 $ 103,565 $ 244,832 $ 22,074 $ 44,547 $ 683,608 Add: Additions during the year 463 7,708 488 608 730 45 434 - 22,412 32,888 Add: Donations and transfers - 2,190 - - 15 4,697 5,640 1,024 (3,836) 9,730 Add: Net TCA adjustment - 86 - - - 86 343 143 - 658 Less: Disposals during the year - (74) (183) (357) (58) (12) (182) (34) (1,200) (2,100) Balance, end of year 111,958 116,325 11,820 9,096 31,007 108,381 251,067 23,207 61,923 724,784 Accumulated amortization Balance, beginning of year -46,318 6,041 5,543 12,494 44,781 80,268 16,466 -211,911 Add: Amortization during the year - 4,417 912 886 1,064 3,492 4,608 665 - 16,044 Add: Net TCA adjustment - - - - - - (39) 61 - 22 Less: Amortization on disposals - (68) (183) (358) (42) (4) (168) (2) - (825) Balance, end of year -50,667 6,770 6,071 13,516 48,269 84,669 17,190 -227,152 Net book value of tangible capital assets $ 111,958 $ 65,658 $ 5,050 $ 3,025 $ 17,491 $ 60,112 $ 166,398 $ 6,017 $ 61,923 $ 497,632 23 Page 63 of 98 The Corporation of the Town of Aurora Consolidated Schedule of Segmented Disclosure Schedule 1 December 31, 2021 (Dollar amounts presented in '000's) 2021 Taxation Revenue Governance & Corporate Support Fire & Emergency Services Bylaw & Licensing Services Roads & Related Services Environmental Services Community Programs & Events Parks & Facilities Public Library Services Planning & Development Consolidated Revenue Taxation $ 51,875 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 51,875 User fees - 720 560 497 1,288 29,638 3,012 10,870 2,757 2,259 51,601 Grants - 268 2,425 50 6,232 616 3,931 91 45 - 13,658 Loss on tangible capital asset adjustment - - - -(1)(105)-(8)- -(114) Loss on disposal of tangible capital assets - - - -(349)(35)- - - -(384) Assumed infrastructure assets - - - - 7,532 10,010 - 50 - - 17,592 Other - 7,451 2,757 2,772 242 939 265 458 4 1,322 16,210 Total Revenue 51,875 8,439 5,742 3,319 14,944 41,063 7,208 11,461 2,806 3,581 150,438 Expenses Salaries, wages and benefits - 8,099 - 3,585 3,583 984 3,154 6,664 2,693 1,702 30,464 Amortization - 6,334 305 - 3,889 5,163 - 1,204 545 - 17,440 Materials and supplies - 541 35 49 1,245 2,409 268 501 272 5 5,325 Contracted services - 2,677 10,552 274 2,207 26,456 1,035 5,392 348 685 49,626 Interest on long-term liabilities - - - - - - - 196 - - 196 Others - 494 - 3 26 280 89 32 - 216 1,140 Total Expenses -18,145 10,892 3,911 10,950 35,292 4,546 13,989 3,858 2,608 104,191 Annual Surplus (Deficit)$ 51,875 $(9,706)$(5,150)$(592)$ 3,994 $ 5,771 $ 2,662 $(2,528)$(1,052)$ 973 $ 46,247 24 Page 64 of 98 The Corporation of the Town of Aurora Consolidated Schedule of Segmented Disclosure Schedule 1 December 31, 2021 (Dollar amounts presented in '000's) 2020 Taxation Revenue Governance & Corporate Support Fire & Emergency Services Bylaw & Licensing Services Roads & Related Services Environmental Services Community Programs & Events Parks & Facilities Public Library Services Planning & Development Consolidated Revenue Taxation $ 52,715 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 52,715 User fees - 355 459 462 770 28,006 246 4,004 355 1,775 36,432 Grants - 171 945 19 1,692 202 131 - 45 - 3,205 Loss on disposal of tangible capital assets - (607) - - - - - - - - (607) Assumed infrastructure assets - - - - 3,162 6,568 - - - - 9,730 Other - 4,104 - 2,029 383 754 223 318 15 860 8,686 Total Revenue 52,715 4,023 1,404 2,510 6,007 35,530 600 4,322 415 2,635 110,161 Expenses Salaries, wages and benefits - 7,056 - 3,292 3,168 874 2,943 6,211 2,461 1,440 27,445 Amortization - 5,390 319 - 3,684 5,081 - 1,064 506 - 16,044 Materials and supplies - 475 - 62 1,072 2,305 182 343 206 6 4,651 Contracted services - 2,607 10,725 161 2,091 23,482 925 4,187 316 172 44,666 Interest on long-term liabilities - - - - - - - 183 - - 183 Other - 149 - 5 - 155 92 2 - 131 534 Total Expenses -15,677 11,044 3,520 10,015 31,897 4,142 11,990 3,489 1,749 93,523 Annual Surplus (Deficit)$ 52,715 $ (11,654)$ (9,640)$ (1,010)$ (4,008)$ 3,633 $ (3,542)$ (7,668)$ (3,074)$ 886 $ 16,638 25 Page 65 of 98 100 John West Way Aurora, Ontario L4G 6J1 (905) 727-3123 aurora.ca Town of Aurora Audit Committee Report No. FIN 22-022 Subject: 2021 Year-end Operating and Capital Results – As of Dec 31, 2021 Prepared by: Tracy Evans, Financial Management Advisor Department: Finance Date: June 28, 2022 Recommendation 1. That Report No. FIN22-022 be received for information. Executive Summary This report presents to Council the year end financial performance of the Town’s 2021 operating and capital budgets. COVID-19 had a material impact on operations. In addition, information is provided on the disposition of the Town’s operating budget surplus in accordance with the 2021 Surplus Control By-law 6379-21.  Tax levy funded operations ended the year with a surplus of $2,962,200  Water, wastewater and storm water operations closed the fiscal year with an operating surplus of $334,400  COVID-19 had a significant financial impact on the Town’s operations  The pandemic’s public health measures have mostly impacted the final financial results for facilities and community programs  The surplus control bylaw authorizes the CAO and Treasurer to allocate portions of a yearend operating surplus to specific reserve accounts  The Town’s actual 2021 capital spend of $34.7M was $57.2M lower than its original planned spend of $91.9M Page 66 of 98 June 28, 2022 2 of 15 Report No. FIN22-022 Any operational budget surpluses remaining at year end will require an offsetting adjustment from/to the tax rate stabilization reserve as defined in the Town’s 2021 surplus / deficit management bylaw. Background To keep Council informed as to the financial status of the operating budget, Council was presented with interim forecast updates over the course of 2021. This report includes the yearend results now that the external audit is substantially complete. The magnitude of the impact of COVID-19 on the Town of Aurora continued to be unclear over the course of 2021 resulting in some forecast volatility over this period. On April 8th, the province instituted a province wide stay at home order that ended on June 2nd which saw the prohibition of most indoor activities and many outdoor activities. On May 20, 2021 the office of the premier issued a new 3 step roadmap to safely reopen the province. The first step opened on June 11th when it is expected that 60 percent of Ontario adults have received one dose of the COVID-19 vaccine. The province moved to step two on June 30th and has subsequently moved to step three of the roadmap to reopen on July 16th, based on 70-80 percent being vaccinated. On October 25, 2021, Ontario lifted capacity limits in settings where proof of vaccinations is required in places such as restaurants, indoor areas of sports and recreational facilities including gyms. The Town’s auditors will present its 2021 draft financial statements to the Audit Committee on June 28th for review and approval. It should be noted that these audited financial statements are presented in a format consistent with the Public Sector Accounting Standards (PSAS), whereas this report is presented in a format consistent with the “traditional balanced municipal budget” approach. Analysis Tax levy funded operations ended the year with a surplus of $2,962,200 The Town’s tax levy funded operations finished the year with a surplus of $2,962,200, representing an increase of $798,700 from the surplus that was reported as of October 31, 2021. Most of this surplus is the result of COVID-19 driven savings on staffing, contracts, and utilities in Community Services and higher than anticipated development Page 67 of 98 June 28, 2022 3 of 15 Report No. FIN22-022 driven engineering revenues in Planning and Development Services. The savings in Community Services are not expected to continue as the Town continues to recover from the pandemic. The revenues in Planning and Development Services are market driven fluctuate from year-to-year. A detailed break-down of the Town’s variance by division can be found in Attachment #1. This report has been simplified to show only the net budget amount, the ending position for each item, and the variance to budget. Overall, the tax-funded budget for 2021 includes $73,577,200 in approved expenditures, funded by $21,471,400 in revenues consisting of user fees, charges, and investment income, and a total tax levy of $52,105,800. Table 1 presents a departmental summary of the variances. Table 1 2021 Tax-Funded Operating Yearend Results $000s Budget Final Actuals Variance Surplus/(Deficit) Council 580.8 567.8 13.0 CAO 1,426.1 1,416.2 9.9 Corporate Services 9,467.2 9,107.3 359.9 Finance 2,247.4 2,123.9 123.5 Fire 11,961.6 11,955.6 6.0 Operational Services 11,028.9 10,966.4 62.5 Community Services 11,014.6 9,364.4 1,650.2 Planning & Development Services 826.7 (225.2) 1,051.9 Corporate Revenue & Expenses 3,552.4 3,688.6 (136.2) Tax Levy 52,105.8 51,927.4 (178.4) Total Operating 2,962.2 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 2021 budget was an additional $127,000 Page 68 of 98 June 28, 2022 4 of 15 Report No. FIN22-022 for the salary gapping on new positions to account for the July 1st start date. This amount was budgeted in Corporate Revenue & Expenditures. The Town recognized higher salary and benefit savings at year end, driven mostly by COVID-19 restrictions. The following identifies the 2021 year-end variances by department: CAO and Council Council and the Office of the CAO budgets ended 2021 with a surplus of $22,900 on a net operating budget of $2,006,900. This surplus mostly relates to COVID-19 driven sponsorship grants, conference savings, as well as favourable savings in promotion and events materials. Corporate Services Corporate Services ended 2021 with a surplus of $359,900 on a total net operating budget of $9,467,200. This surplus is mostly attributable to savings from outside legal services for personnel administration and from salaries & benefits. Other contributors to this variance are recognized insurance and postage cost savings, as well as larger than anticipated administration fee revenues. These savings are partially offset by COVID-19 driven advancement of software license and maintenance costs. Finance Finance ended 2021 with a surplus of $123,500 on a net operating budget of $2,247,400. This surplus mostly results from salary savings arising from temporary vacancies as well as higher than budgeted revenue from fees and services. Fire Services As of December 31, 2021, overall Central York Fire Services (CYFS) concluded the year with an operating surplus of $134,200 on a total approved operating budget of $28,864,300. This surplus was mostly attributable to savings in salary and benefits resulting from delays in staff hiring. Aurora’s share of CYFS’ total approved budget is $11,955,600. As per normal practice, the CYFS surplus will be offset by an equal contribution to the shared CYFS asset replacement fund (ARF) reserve, thus leaving the Town’s portion of the Fire Services requirements as budgeted. Aurora’s total noted Fire Services budget of $11,961,600 includes an additional $6,000 for parking lot winter management services at each Aurora Fire Hall location that is provided directly through the Town, which was not billed for 2021 resulting in the surplus. Page 69 of 98 June 28, 2022 5 of 15 Report No. FIN22-022 Operational Services Operational Services, excluding water, wastewater & storm water services, ended 2021 with a surplus of $62,500 on a net operating budget of $11,028,900. Key contributors to this surplus are COVID-19 driven salary savings relating to Crossing Guard services, savings in waste collection as a result of the 3-bag limit and other overall contract savings. These favourable variances are partially offset by higher than anticipated salary costs in winter maintenance offset partially by salary savings in Roads Network Operations. These savings are further offset by reduced ball diamond/soccer field permit revenues as a result of COVID-19 restrictions and additional security costs. Fleet Management also experienced increased fuel costs and vehicle repairs. As per the Town’s winter control reserve policy, if the overall Town operating budget is unable to accommodate the full reported winter management deficit, any required funding shortfall can be drawn from this reserve. As the Town’s overall positive position was sufficient to offset the experienced shortfall, a draw from the winter control reserve is not necessary for 2021. Salaries and wages are split between the tax levy and user rate (water, wastewater & storm water services) funded programs. In any given year, the exact extent of operational service staff support of tax levy or rate funded programs is difficult to accurately predict as such some variability is not unusual. Overall, the department’s salaries and benefits for tax supported programs finished the year under budget by $40,600. This is mainly due to the reduced hiring of seasonal staff within Park Operations due to COVID-19, as well as crossing guard salary savings. Community Services Community Services ended 2021 with a $1,650,200 surplus on a net operating budget of $11,014,600. The key contributors to this surplus relate to COVID driven salary and contract savings, as well as savings in facility operation utility/heating costs. An increase in lease revenue that was not budgeted for also contributes to this positive variance. These surpluses are offset by reduced community program, sponsorship/advertising, ice rental and special events revenues due to COVID-19. Aurora Town Square savings were recognized relating to the implementation of the Town’s financial strategy to phase in its projected incremental operating costs prior to it becoming fully operational in 2022. These surplus funds were contributed to the Town’s tax rate stabilization reserve as per the 2021 surplus control bylaw. These funds will remain available to be drawn upon as required in future years in the management of Aurora Town Square one-time implementation and ongoing operating costs. Page 70 of 98 June 28, 2022 6 of 15 Report No. FIN22-022 Planning & Development Services Planning & Development Services ended 2021 with a surplus of $1,051,900. This surplus is mostly attributable to higher than anticipated development driven engineering revenues and vacant position savings being partially attributable to COVID-19. Not included in this variance is a Building Services’ surplus of $1,035,400 resulting from larger than anticipated development driven revenues and salary savings. 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 surplus has been contributed to its dedicated reserve. Corporate Revenues & Expenses Corporate Revenues and Expenses ended 2021 with a deficit of $136,200 on a net operating budget of $3,552,400. The primary driver of this deficit relates to Town wide salary and benefit adjustments including the $127,000 salary gapping savings relating to new positions during the first six months of the year. The offsetting gapping savings are reflected in the departmental variances. Furthermore, tax adjustments are a significant contributor to the final recognized deficit as MPAC strives to settle the Town’s outstanding commercial property assessment appeals. The Aurora Town Square debt carrying costs over the next two years are expected to be under budget. In 2021, the only debt related costs were interest costs arising from the use of the construction line of credit. As a result, most of the allocated amount for the Aurora Town Square debt carrying costs will not be needed in 2021; these unspent funds have been contributed to the Facilities Repair & Replacement reserve as planned. Aurora Public Library Contribution The Aurora Public Library experienced a surplus of $271,400 from a total approved net operating budget of $3,896,100, mostly attributable to salary savings due to COVID-19. As per the Town’s surplus / deficit management bylaw, this surplus was returned to the Town and contributed to the Facility Repair & Replacement reserve. Page 71 of 98 June 28, 2022 7 of 15 Report No. FIN22-022 Total Tax Levy Overall, the Town of Aurora tax levy funded operations ended the year with a surplus of $2,962,200 with no noticeable adverse impacts to service levels. Under the guidelines as presented in the Surplus/Deficit Management By-law, as the tax rate stabilization reserve balance has reached its maximum ceiling of 10 percent of the tax levy, the CAO and Treasurer have approved a contribution of this equivalent amount across the Town’s tax funded reserves. Water, wastewater and storm water operations closed the fiscal year with an operating surplus of $334,400 The Town’s user rate funded operations ended 2021 with a surplus $334,400, representing an increase of $135,400 from the surplus that was reported as of October 31, 2021. The final reported operating budget surplus is driven by a favorable variance in storm water services. The key contributors to this variance were larger than anticipated storm water revenues and contract savings. The higher revenues stem from a larger number of new customers being added than was anticipated. Delays in planned repair work contributed to the contract savings; this delayed work is to be completed in 2022. The storm water services surplus is partially offset by an operating shortfall in water and wastewater due to COVID-19 driven increased wholesale water and sewer discharge fees arising from greater water demands because of residents working from home, partially offset by salary and contract savings. The user rate funded operations budgets include fixed operational costs, funded by the net proceeds from the sale of water, wastewater and storm water services. These fixed operational costs include staff and service maintenance costs related to maintaining the infrastructure systems, 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 fee funded operations. More detail can be found in attachment #2. Page 72 of 98 June 28, 2022 8 of 15 Report No. FIN22-022 Table 2 2021 User Rate Yearend Results $000s Forecast Surplus/(Deficit) Water Services 72.3 Wastewater Services (148.0) Storm Water Services 410.1 Total User Rate Surplus (Deficit) 334.4 As required by legislation, each of these individual service budget variances must be brought into a balanced position at yearend. The appropriate contribution to or from the user rate funded reserves will be undertaken by the CAO and Treasurer to balance each of these service line budgets as per the Town’s 2021 surplus / deficit management bylaw. COVID-19 had a significant financial impact on the Town’s operations The pandemic had a significant impact on the Town’s final financial results. Table 3 offers a summary of the Town’s experienced COVID-19 financial impacts. Table 3 COVID-19 Revenue Losses & Mitigation Savings $000s Tax Levy Funded Operations: Lost senior, aquatics, camp & fitness membership revenues 1,045.4 Lost ice rental revenues 151.9 Lost sponsorship & advertising revenues 214.3 Lost baseball diamond/soccer field rental revenues 14.8 Lost special event revenues 59.9 Safe Recovery Grant revenue (1,004.1) Revenue Losses 482.2 Page 73 of 98 June 28, 2022 9 of 15 Report No. FIN22-022 $000s Community program part-time and contract savings $1,014.7 Town facility closure net operating savings 1,262.1 Salary savings resulting from delayed recruitment of new staff 250.0 Business Support salary and other cost savings 314.9 Special event contract savings 37.4 Crossing guard services salary & contract savings 116.3 Expenditure Savings 2,995.4 Net Tax Funded Savings 2,513.2 User Rate Funded Operations: Increased water/wastewater revenues 1,042.2 Revenue Increase 1,042.2 Increased water volume costs offset by operational savings 1,117.9 Expenditure Losses 1,117.9 Net User Rate Funded Losses (75.7) The overall identified COVID-19 net savings for tax levy funded operations has increased by $1,220.4 and user rate funded operations decreased by $220.9 from what was reported as of October 31, 2021. The increased net savings for tax levy funded operations is mostly driven by stronger than anticipated recreation revenues resulting from a faster relaxation of provincial pandemic public health measures than previously assumed, as well as the application of Safe Restart grant funding to eligible COVID-19 short-falls. The final user rate funded operations net COVID variance change from a net savings of $145.2 to a final net loss of $75.7 mostly relates to larger sewer discharge fees and wholesale water costs arising from an increased water demand as residents continued to work from home. The pandemic’s public health measures have mostly impacted the final financial results for facilities and community programs As can be seen from Table 3, COVID-19 had the most profound impact on the Town’s facility and community program functions. The financial performance of these two functions hinged on the timing of the province’s relaxation or tightening of its pandemic health measures. The Town was able to find more than sufficient mitigating savings to offset its significant COVID-19 driven deficits. Page 74 of 98 June 28, 2022 10 of 15 Report No. FIN22-022 The surplus control bylaw authorizes the CAO and Treasurer to allocate portions of a yearend operating surplus to specific reserve accounts On October 26, 2021, the Surplus / Deficit Management By-law 6379-21 was passed. This bylaw authorizes the CAO and Treasurer to allocate portions of a yearend surplus to specific reserve accounts, or to offset a yearend operating deficit through a draw from specific reserve accounts as part of the yearend accounting processes. This is done to separate a previous year’s budget variance from that of the upcoming year’s budget. The year end surpluses and wastewater services deficit were then adjusted by transfers from/to reserves in accordance with the 2021 surplus / deficit management by-law as follows: Table 4 2021 Surplus Disposition Reserve Transfer Amount Transfer TO Growth & New reserve fund 573,213 Transfer TO IT R&R reserve fund 300,000 Transfer TO Studies & Other reserve fund 65,174 Transfer TO Fleet reserve fund 1,781,019 Transfer TO ATS Operating Contingency 242,881 Transfer TO Water reserve fund 72,325 Transfer FROM Wastewater reserve fund (148,029) Transfer TO Storm Water reserve fund 410,135 $3,296,717 The Town’s actual 2021 capital spend of $34.7M was $57.2M lower than its original planned spend of $91.9M. The original planned spend of $91.9M represents the planned 2021 capital project cash outlay that was presented to Council as part of the Town’s 2021 approved capital budget. As many projects span multiple years, any planned amounts that are not spent in 2021 can be rolled forward to the following future years through the capital budget process, if needed. The Town’s 2021 actual capital spending for the year ending is $57.2M (62%) lower than what was originally planned for all approved capital projects. There may be many different reasons for why a given capital project’s original planned spend may not happen. A detailed breakdown of the Town’s actual capital spend by individual capital Page 75 of 98 June 28, 2022 11 of 15 Report No. FIN22-022 project can be found in Attachment 3. A summary of the planned vs. actual capital spend in 2021 can be found under Table 5. Table 5 Planned vs. Actual 2021 Capital Spending $000s Planned Spend for 2021 Actual Spend for 2021 Variance Growth & New 61,113.5 26,930.3 34,183.2 Rehab & Replacement 28,968.7 7,104.7 21,864.0 Studies & Other 1,838.2 682.0 1,156.2 Total 91,920.4 34,717.0 57,203.4 Attachment 3 presents the variance between each individual active capital project’s actual spend for compared to its planned spend for 2021 and provides a brief explanation for each identified material variance. The 2021 actual capital spend does not include any projects that were proposed for closure prior to April 30th, 2021; the list of the projects identified for closure over the course of 2021 was included under chapter 20 of the 2022 budget binder that was provided to Council on October 26, 2021. The following summary presents the Town’s key recognized 2021 capital variances by department for its active capital projects. CAO The office of the CAO does not have any material variances of note. Fire Services Fire Services had lower than expected spending for Fire HQ, Hall and Training Construction of $3.6M, which is a shared project between the Town of Aurora and Newmarket. This project is now expected to be completed in 2022 and the Town of Aurora is expected to issue roughly $3.6M in payments to the Town of Newmarket by the end of 2022. Page 76 of 98 June 28, 2022 12 of 15 Report No. FIN22-022 Operational Services Overall, Operational Services had actual capital spending of $5.6M in 2021, which is $9.6M lower than the planned annual spend. Significant contributors to this variance include the David Tomlinson Nature Reserve (Phase 1-5) for approximately 2.4M, Non- Programmed Park in 2C for approximately 1.5M, and Hallmark Lands baseball diamonds for approximately $1.2M. In addition, planned capital spending of $1.5M was deferred to 2022 and 2023 due to construction and delivery delays in various operational services capital projects. This includes $708K for a cold storage building to be located at the Joint Operations Center, $600K for Board Walk Resurfacing at McKenzie Marsh, and $210K for Trails Signage Strategy Study & Implementation. Community Services Community Services had actual capital spending of $15.2M in 2021, which is $22.8M lower than the planned annual spend. This variance is heavily driven by the actual 2021 spending for the Aurora Town Square project being $18.5M less than forecasted. This outstanding planned amount will be spent in 2022 and 2023, with the project expected to be substantially completed in 2023. The other major projects whose 2021 planned spending has been deferred to 2022 and beyond include the new Aquatic Center, the replacement of roof sections and skylight sealant at Town Hall and the implementation of recommendations identified in the Security Risk Assessment audit. Planning & Development Services Planning and Development Services had actual capital spending of $5.7M in 2021, which is $16.3M lower than the planned annual spend. The primary driver of this variance is that $10.4M in planned capital spending relating to roads, traffic and storm sewer projects which will be carried forward into 2022 as a result of construction delays. A further $4.1M in project costs were not incurred as these projects were completed under budget. Finance Finance had actual capital spending of $286K in 2021, which is $2.3M lower than the planned annual spend. The key contributor to this variance is the Advanced Metering Infrastructure project, whose contract was still under negotiation at the end of 2021. The planned spend for this project is anticipated to now take place over 2022 and 2023. Page 77 of 98 June 28, 2022 13 of 15 Report No. FIN22-022 Corporate Services Overall, Corporate Services had actual capital spending of $687K in 2021, which is $1.9M lower than the planned annual spend. The key contributors to this variance include an overestimation of 2021 requirements for computer & related infrastructure renewal and a delay in the implementation of the Technology Strategic Plan, Accessibility plan, Business process automation and Data integration projects into future years. Advisory Committee Review Not applicable. Legal Considerations None. Financial Implications The Town’s final tax levy or user rate funded operating budget surplus or deficit will be allocated by the CAO and Treasurer to / from various reserves as per the Surplus/Deficit Management bylaw. In an effort to minimize the impact to the Town’s reserves resulting from COVID -19, it has used its available Safe Restart grant funding accordingly to offset any of its experienced eligible COVID short-falls. A total of $1,004,100 in Safe Recovery grant funding was allocated in support of the Town’s 2021 operating budgets. All final 2021 capital project expenditures have now been fully funded with their approved funding sources. Also, the next budget process will consider any unspent 2021 planned expenditures as part of its 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. Council fulfills its role, in part, by receiving and reviewing this financial status report on the operations of the municipality relative to the approved budget. Page 78 of 98 June 28, 2022 14 of 15 Report No. FIN22-022 Communications Considerations The Town of Aurora will use ‘Inform’ as the level of engagement for this project. There are five different levels of community engagement to consider, with each level providing the community more involvement in the decision-making process. These levels are: Inform, Consult, Involve, Collaborate and Empower. Examples of each can be found in the Community Engagement Policy. These options are based on the International Association of Public Participation (IAP2) Spectrum and assist in establishing guidelines for clearly communicating with our public and managing community engagement. In order to inform, this report will be posted 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 1. Not applicable. Conclusions Tax levy funded operations has concluded the fiscal year with a surplus of $2,962,200 arising primarily from larger than anticipated development driven revenues such as engineering fees for lot grading, subdivisions and site plans, as well as salary and contract savings. These surpluses have been partially offset by COVID-19 driven operating losses. User rate funded budget operations finished the fiscal year with a favourable budget variance of $334,400. The Town has spent $57.2M less than what was planned for all active capital projects in 2021. These capital cash outflows will be deferred and spent in 2022 and beyond. Page 79 of 98 June 28, 2022 15 of 15 Report No. FIN22-022 Attachments Attachment #1 – Tax Levy Funded Net Operating Forecast Update Attachment #2 – Water Rate Funded Net Operating Forecast Update Attachment #3 – Capital Project Forecast Update Previous Reports FIN21-021 – Use of Safe Restart Grant Funding FIN21-033 – 2021 Interim Forecast Update – as of April 30, 2021 FIN21-042 – 2021 Interim Forecast Update – as of August 31, 2021 FIN21-051 – 2021 Interim Forecast Update – as of October 31, 2021 Pre-submission Review Agenda Management Team review on June 2, 2022 Approvals Approved by Rachel Wainwright-van Kessel, CPA, CMA, Director, Finance Approved by Doug Nadorozny, Chief Administrative Officer Page 80 of 98 Attachment 1 Shown in $,000's COUNCIL Council Administration 568.8$ 569.5$ (0.7)$ (0.1 %) Council Programs/Grants 4.0 - 4.0 100.0 % Advisory Committees 8.0 (1.7) 9.7 121.2 % Council Office Total 580.8$ 567.8$ 13.0$ 2.2 % CHIEF ADMINISTRATIVE OFFICE CAO Administration 578.4$ 534.0$ 44.4$ 7.7 % Communications 847.7 882.2 (34.5) (4.1 %) Chief Administrative Office Total 1,426.1$ 1,416.2$ 9.9$ 0.7 % Council and C.A.O. Combined 2,006.9$ 1,984.1$ 22.8$ 1.1 % CORPORATE SERVICES Corporate Services Administration 455.7$ 489.2$ (33.5) (7.3 %) Legal Services 1,736.5 1,642.3 94.2 5.4 % Legislative & Administrative Services 778.2 767.8 10.4 1.3 % Human Resources 1,089.7 969.4 120.3 11.0 % Elections 92.5 92.8 (0.3) (0.3 %) Information Technology 3,128.5 2,958.1 170.4 5.4 % Telecommunications 164.6 133.3 31.3 19.0 % By-law Services 726.4 745.8 (19.4) (2.7 %) Animal Control 306.1 339.3 (33.2) (10.8 %) Customer Service 946.3 918.9 27.4 2.9 % Emergency Preparedness 42.7 50.3 (7.6) (17.8 %) Corporate Services Total 9,467.2$ 9,107.3$ 359.9$ 3.8 % FINANCE Policy & Planning Administration 384.0$ 391.7$ (7.7)$ (2.0 %) Financial Reporting & Revenue 618.5 543.2 75.3 12.2 % Financial Management 699.5 677.3 22.2 3.2 % Procurement Services 545.4 511.7 33.7 6.2 % Finance Total 2,247.4$ 2,123.9$ 123.5$ 5.5 % FIRE SERVICES Town of Aurora Final NET Tax Levy Funded Operations Results as at December 31, 2021 NET ADJUSTED BUDGET FINAL ACTUAL Variance Favourable / (Unfavourable) Page 81 of 98 Attachment 1 Shown in $,000's Town of Aurora Final NET Tax Levy Funded Operations Results as at December 31, 2021 NET ADJUSTED BUDGET FINAL ACTUAL Variance Favourable / (Unfavourable) Central York Fire 11,961.6 11,955.6 6.0 0.1 % Total Fire Services 11,961.6 11,955.6 6.0 0.1 % Operational Services Operational Services Administration 302.0$ 319.1$ (17.1)$ (5.7 %) Fleet & Equipment 900.1 1,062.2 (162.1) (18.0 %) Winter Management 1,730.1 1,802.1 (72.0) (4.2 %) Road Network Operations 2,707.3 2,460.1 247.2 9.1 % Parks/Open Spaces 2,819.7 2,846.4 (26.7) (0.9 %) Waste Collection & Recycling 2,569.7 2,476.6 93.1 3.6 % Operational Services Total 11,028.9$ 10,966.4$ 62.5$ 0.6 % Community Services Community Services Administration 1,309.9$ 1,242.3$ 67.6$ 5.2 % Business Support (146.7) (89.9) (56.8) (38.7 %) Recreational Programming/Community Dev.2,687.6 2,310.3 377.3 14.0 % Facilities 7,163.8 5,901.7 1,262.1 17.6 % Community Services Total 11,014.6$ 9,364.4$ 1,650.2$ 15.0 % PLANNING & DEVELOPMENT SERVICES Development Planning (420.6)$ (1,540.7)$ 1,120.1$ 266.3 % Long Range & Strategic Planning 733.4 677.4 56.0 7.6 % Engineering Service Operations 513.9 638.1 (124.2) (24.2 %) Net Building Department Operations 629.4 (406.0)$ 1,035.4 164.5 % Contribution To Building Reserve (629.4) 406.0 (1,035.4) (164.5 %) Total Building Services - - - - Planning & Development Services Total 826.7$ (225.2)$ 1,051.9$ 127.2 % CORPORATE REVENUE & EXPENSE Corporate Management (3,732.5) (4,031.2) 298.7$ 8 % Fiscal Strategy 5,960.8 5,960.8 -$ - Non-Levy Tax Items (392.0) 42.9 (434.9)$ (111 %) Cost Recovery from Rate (2,180.0) (2,180.0) -$ - Net Library Services Operations 3,896.1 3,624.7 271.4$ 7 % Library net contribution to Town reserves - 271.4 (271.4)$ n/a Page 82 of 98 Attachment 1 Shown in $,000's Town of Aurora Final NET Tax Levy Funded Operations Results as at December 31, 2021 NET ADJUSTED BUDGET FINAL ACTUAL Variance Favourable / (Unfavourable) 3,552.4$ 3,688.6$ (136.2)$ (3.8 %) TOTAL TAX LEVY FUNDED OPERATIONS 52,105.8$ 48,965.1$ 3,140.7$ 6.0 % TOTAL TAX LEVY (52,105.8)$ (51,927.4)$ (178.4)$ (0.3 %) OPERATING (SURPLUS) DEFICIT - (2,962.3)$ 2,962.2$ 4.9 % Surplus Surplus Page 83 of 98 Attachment 2 Shown in $,000's Water Services Retail Revenues (11,110.8) (11,574.1) 463.3$ 4.2 % Penalties (175.0) (168.5) (6.5) (3.7 %) Other (100.1) (273.1) 173.0 172.8 % Total Revenues (11,385.9) (12,015.7) 629.8$ 5.5 % Wholesale water purchase 6,978.3 7,522.6 (544.2) (7.8 %) Operations and maintenance 878.1 1,346.3 (468.2) (53.3 %) Administration and billing 1,044.7 589.7 455.0 43.6 % Corporate overhead allocation 784.9 784.9 - - Infrastructure sustainability reserve contributions 1,700.0 1,700.0 - - Total Expenditures 11,385.9 11,943.3 (557.4)$ (4.9 %) Net Operating Water Services -$ (72.3) 72.3$ n/a Waste Water Services Retail Revenues (14,205.5) (14,677.7) 472.2$ 3.3 % Other (114.3) (54.5) (59.8) (52.3 %) Total Revenues (14,319.8) (14,732.2) 412.4$ 2.9 % Sewer discharge fees 10,638.3 11,467.9 (829.7)$ (7.8 %) Operations and maintenance 1,257.1 987.8 269.2$ 21.4 % Administration and billing 261.4 261.4 -$ - Corporate overhead allocation 613.1 613.1 (0.0) (0.0 %) Infrastructure sustainability reserve contributions 1,550.0 1,550.0 - - Total Expenditures 14,319.8 14,880.3 (560.4)$ (3.9 %) Net Operating Waste Water Services - 148.0 (148.0)$ n/a Total Water and Waste Water Services - 75.7 (75.7)$ n/a Storm Water Services Retail Revenues (2,518.8) (2,805.2) 286.4$ 11.4 % Penalties - - - n/a Other - - - n/a Total Revenues (2,518.8) (2,805.2) 286.4$ 11.4 % Town of Aurora Final Net User Rate Funded Operations Results as at December 31, 2021 Variance Favourable / (Unfavourable) FINAL ACTUAL ADJUSTED BUDGET Page 84 of 98 Attachment 2 Operations and maintenance 1,015.0 891.2 123.8 12.2 % Administration and billing 105.4 105.4 - - Corporate overhead allocation 38.2 38.2 (0.0) (0.0 %) Infrastructure sustainability reserve contributions 1,360.2 1,360.2 - - Total Expenditures 2,518.8 2,395.0 123.8$ 4.9 % Net Operating Storm Water Services (0.0) (410.1) 410.1$ n/a OPERATING (SURPLUS) DEFICIT (0.0) (334.4)$ 334.4$ 1.2 % Surplus Surplus Page 85 of 98 ($)(%) Chief Administrative Office 12026 Organization Structural Review 36,569$ -$ 36,569$ 100.0 % 12032 Resident Survey - 2019 30,000 - 30,000 100.0 % 12037 Town of Aurora Website 44,144 - 44,144 100.0 % 12042 Municipal Levels of Service Review 100,000 102,458 (2,458) (2.5 %) Project fully funded with Provincial grant. Chief Administrative Office Total 210,713$ 102,458$ 108,255$ 51.4 % Fire Services Property 21006 Fire HQ, Hall and Training Construction 10,764,954$ 7,127,093$ 3,637,861$ 33.8 % Construction is now expected to be completed by mid-2022. Total Property 10,764,954 7,127,093 3,637,861$ 33.8 % Equipment 21106 Pumper for Fire Hall 4-5 410,000 - 410,000 100.0 % Project completed in 2021. Awaiting billing from Town of Newmarket for $407K. 21107 Fire Hall 4-5 Turn Out Gear 75,600 - 75,600 100.0 % Project completed in 2021. Awaiting billing from Town of Newmarket for $40K. 21109 Fire - Smaller Vehicles 26,900 - 26,900 100.0 % 21114 Fire Master Plan - 2019 51,250 - 51,250 100.0 % Project ongoing. Expected completion in 2022. Total Equipment 563,750 - 563,750 100.0 % Fire Services Total 11,328,704$ 7,127,093$ 4,201,611$ 37.1 % Operational Services Yard/Office 12041 89 Mosley St 12,582 3,129 9,453 75.1 % 72285 JOC - Additional Work 745,019$ 37,092$ 707,927 95.0 % Cold storage building is currently in design phase (95% complete) and construction will be completed in 2022. Total Yard/Office 757,601 40,221 717,380$ 94.7 % Town of Aurora Budgeted Capital Spend vs. Actuals as at December 31, 2021 2021 Actuals Variance Variance Explanation Planned/Budgeted Capital Spend for 2021 1 of 13 Attachment 3 Page 86 of 98 ($)(%)2021 Actuals Variance Variance Explanation Planned/Budgeted Capital Spend for 2021 Operations 31151 Streetlights 14,827 - 14,827 100.0 % 34004 Safety Railing - Yonge St north of Orchard Heights 375,578 402,755 (27,177) (7.2 %) Additional funding provided from project #34005 for work within scope and contingency. 34005 Traffic Protection Guide Rail - Kennedy St W.100,000 68,844 31,156 31.2 % Funding transfered to Safety Railing - project #34004. 34007 Webster Drive Curb/Road Drainage Repair 65,000 8,729 56,271 86.6 % Final invoice paid in April 2022 for #38K. 34008 Roads Operations Infrastructure Inspection, Repair and Maintenance Program 180,576 48,848 131,728 72.9 % To continue in 2022. Two retaining walls will be repaired in 2022. 34616 Side Walk /Engineered Walkway Reconstruction 171,916 163,022 8,894 5.2 % 34713 Street Light Pole Identification 25,124 1,568 23,556 93.8 % 42073 Stormwater Pond Maintenance Program - 2019 105,450 136,425 (30,975) (29.4 %) Completed. 2021 cash flows were $30,975 higher than planned capital spend for 2021, however, project spending remained within approved CBA. 43039 Backflow Prevention Program 4,458 - 4,458 100.0 % 43057 Installation of Backflow Prevention Meters in Town Facilities 125,000 - 125,000 100.0 % Project in progress, to be completed in Fall 2022. Total Operations 1,167,929 830,191 337,738$ 28.9 % Parks 72281 AFLC - Skate Park Reconstruction 554,465 12,924 541,541 97.7 % Council report on options for repair in Q1 2023. 73085 Arboretum Development 134,931 50,056 84,875 62.9 % COVID-19 delayed planned projects - to be completed in 2022. 73107 Former Kwik Kopy Trail Connection 341,072 508,877 (167,805) (49.2 %) 2021 cash flows were $167,805 higher than planned capital spend for 2021, however, project spending remained within approved CBA. 73119 Street /Park Tree Planting Contract 118,292 21,884 96,408 81.5 % The remaining approved CBA of $96,408 will be spent in 2022. 73134 Parks/ Trails Signage Strategy Study & Implementation 242,341 31,892 210,449 86.8 % Trails portion of this project will be completed in 2022. Parks portion will be completed in 2023. 73147 Trail Construction as per Trail Master Plan 50,206 17,956 32,250 64.2 % Project to be completed in 2022 73160 Emerald Ash Borer Management Program 435,290 348,625 86,665 19.9 % The remaining approved CBA of $86,665 will be spent in 2022. 2 of 13 Page 87 of 98 ($)(%)2021 Actuals Variance Variance Explanation Planned/Budgeted Capital Spend for 2021 73169 David Tomlinson Nature Reserve (Phase 1-5)2,460,549 51,886 2,408,663 97.9 % The remaining approved CBA of $2,408,663 will be spent in 2022 and 2023. 73175 Walkway Lights - Graham Parkette 60,000 - 60,000 100.0 % The remaining approved CBA of $60,000 will be spent in 2022. 73177 Regionally Approved Pedestrian Underpasses 242,394 38,939 203,455 83.9 % The project was completed in 2021 and was under budget by $203K. 73192 Board Walk Resurface McKenzie Marsh 600,000 - 600,000 100.0 % $335K of approved budget authority will be spent in 2022 and 2023, with estimated savings of $275K. 73215 Playground Replacement, Walkway Repaving- L Willson Park 180,000 73,195 106,805 59.3 % The remaining approved CBA of $106,805 will be spent in 2022. 73232 Trail/Playground Re-design - Jack Wood Park 102,400 - 102,400 100.0 % This is no longer required and $102,400 in approved CBA will not be spent. 73240 Walkway/Basketball Repaving- Tamarac Park 30,000 - 30,000 100.0 % 73242 Reconstruction of Fleury Park Washroom Facility 425,048 235,461 189,587 44.6 % The remaining approved CBA of $189,587 will be spent in 2022. 73247 Trail Construction (Pandolfo/Glen Ridge development area)100,000 35,022 64,978 65.0 % The remaining approved CBA of $64,978 will be spent in 2022. 73260 Environmental Monitoring of 2C Lands 98,058 8,548 89,510 91.3 % 10 year project, in year 8 of monitoring. 73287 Hallmark Lands - Baseball Diamonds 3,647,755 2,479,581 1,168,174 32.0 % The remaining approved CBA of $1,168,174 will be spent in 2022. 73290 Tree Inventory 4,648 2,605 2,043 44.0 % 73292 Picnic Tables/Benches/Garbage Receptacles 23,395 20,042 3,353 14.3 % 73296 Trails - Joseph Hartman Trail Connection (DG Group)299,877 135,122 164,755 54.9 % The remaining approved CBA of $164,755 will be spent in 2022. 73299 Non - Programmed Park in 2C 1,488,357 27,485 1,460,872 98.2 % Project required additional funding approved in May 2022, project to be awarded and construction to start in 2022 with completion in 2023. 73315 Sheppards Bush Parking Lot Resurface 250,000 - 250,000 100.0 % The remaining approved CBA of $250,000 will be spent in 2022. 73323 Mattamy Phase 4/5 Trail 100,000 - 100,000 100.0 % The remaining approved CBA of $100,000 will be spent in 2022. 73327 DeGraaf Cres Trail 75,000 - 75,000 100.0 % The remaining approved CBA of $75,000 will be spent in 2022. 81016 Aurora Promenade Streetscape Design & Implementation Plan Capital Works 471,832 26,509 445,323 94.4 % Streetscape report from consultant will be prepared and presented to Council in 2023. Total Parks 12,535,910 4,126,609 8,409,301$ 67.1 % 3 of 13 Page 88 of 98 ($)(%)2021 Actuals Variance Variance Explanation Planned/Budgeted Capital Spend for 2021 Fleet Management 24023 Cameras for Parking Enforcement 60,000 53,120 6,880 11.5 % Project complete, lower than budget due to market value of tender bids. 34440 Roads - 6 Ton Diesel Dump with Sander (#33- 20)- 263,904 (263,904) n/a 2021 cash flows were $263,904 higher than planned capital spend for 2021, however, project spending remained within approved CBA. 34441 Roads - Street Sweeper (#40-21)305,000 288,266 16,734 5.5 % Project complete, lower than budget due to market value of tender bids. 34188 Trackless Sidewalk Snow Blower Attachment 150,000 - 150,000 100.0 % This equipment is no longer required and $150,000 in approved CBA will not be spent. 34432 Roads - 2 Ton (#24-21)90,000 - 90,000 100.0 % Delivery delayed to 2022. 71060 Facilities - 1/2 ton Truck (New)45,000 - 45,000 100.0 % Delivery delayed to 2022. 71136 Parks - 1 Ton Pick Up Crew Cab (#203-21)62,800 - 62,800 100.0 % Delivery delayed to 2022. Total Fleet Management 712,800 605,290 107,510$ 15.1 % Operational Services Total 15,174,240$ 5,602,311$ 9,571,929$ 63.1 % Community Services Economic Development 12044 Aurora Economic Development Corporation Marketing Campaign 20,000 - 20,000 100.0 % This project is complete. Actual expenses of $20K were posted to the Operating Budget. Total Economic Development 20,000 - 20,000$ 100.0 % Leisure Services 73324 Pet Cemetery Restoration 29,415 14,109 15,306 52.0 % 73329 Building Condition Assessment & Energy Audits 175,000 9,864 165,136 94.4 % Consulting services in 2021 only. This study will now be completed in 2022. Total Leisure Services 204,415 23,973 180,442$ 88.3 % Programs 74007 AFLC Fitness Equipment Replacement 18,689 - 18,689 100.0 % 74015 Cultural Services Master Plan 44,134 660 43,474 98.5 % 74017 Aurora Sports Hall of Fame 1,926 - 1,926 100.0 % 74019 Active Net Scan System 20,000 5,511 14,489 72.4 % Total Programs 84,749 6,171 78,578$ 92.7 % 4 of 13 Page 89 of 98 ($)(%)2021 Actuals Variance Variance Explanation Planned/Budgeted Capital Spend for 2021 Facilities 72113 New Recreation Facility-Aquatic center 1,310,794 - 1,310,794 100.0 % $2.3M in approved budget authority remaining. 72146 215 Industrial Parkway Exterior Works (Roof and Front Door System)138,334 - 138,334 100.0 % Project is out for tender and will be complete by 2022. 72172 ACC- Sport Flooring 73,900 - 73,900 100.0 % Some scope of work will be complete in 2022. Full CBA will not be spent. 72201 Work Station Refresh Carpet Paint (2021 Budget Conditionally Approved)514,744 85,834 428,910 83.3 % The remaining approved CBA of $423,888 will be spent in 2022 ($250K) and 2023 ($173,888) 72204 Security Audit & Implementation 460,313 - 460,313 100.0 % The remaining approved CBA of $460,313 will be spent in 2022 (50%) and 2023 (50%). 72206 Back Up Generation for Evacuation Centre 50,000 - 50,000 100.0 % The remaining approved CBA of $50,000 will be spent in 2022. 72213 ASC - LED Lighting 45,828 29,054 16,774 36.6 % Project complete. 72223 Electric Vehicle (EV) Charging Stations at Aurora Town Square 13,800 10,583 3,217 23.3 % 72226 AFLC HVAC Arena 120,016 - 120,016 100.0 % Project complete. AFLC requires further investigation and mechanical consultant review in 2022. Approved CBA to be transferred to project #72263 in 2022 within Facilities capital program. 72263 SARC - Cooling Evaporator Tower 90,000 20,726 69,274 77.0 % Project in progress, to be completed in 2022. 72283 SARC - Replacement of Pylon Sign Message Board 47,761 1,323 46,438 97.2 % Project in progress, to be completed in 2022. 72297 ACC - Ice Resurfacer Room Heater 16,379 - 16,379 100.0 % 72302 AFLC - Replacement of Arena Seating 51,200 - 51,200 100.0 % The remaining approved CBA of $51,200 will be spent in 2022. 72305 SARC - West Roof Area - Window Sealant 10,200 - 10,200 100.0 % 72323 SARC - Repair of concrete walkways 20,000 - 20,000 100.0 % 72324 AFLC - Replace hollow metal doors & exterior exit doors 55,000 - 55,000 100.0 % Project in progress, to be completed in 2022. 72328 AFLC - Replace built up roofing above Arena dressing rooms 90,100 - 90,100 100.0 % The remaining approved CBA of $90,100 will be spent in 2023. 72340 ACC - Reseal exterior windows 13,500 - 13,500 100.0 % 72342 ACC - Replace thermoplastic membrane roofing - - - n/a 72346 ACC - Reseal concrete floors 28,700 - 28,700 100.0 % 72372 215 Industrial - Refurbishment of Generator 50,000 6,937 43,063 86.1 % 5 of 13 Page 90 of 98 ($)(%)2021 Actuals Variance Variance Explanation Planned/Budgeted Capital Spend for 2021 72381 CYFS 4-3 - Replace windows 28,800 - 28,800 100.0 % 72393 ASC - Replacement of roofing sections - - - n/a 72404 Town Hall - Replacement of exterior entrance doors 16,500 10,408 6,092 36.9 % Project complete. 72405 Town Hall - Replacement of roof sections and Skylight Sealant 243,716 - 243,716 100.0 % The remaining approved CBA of $243,716 will be spent in 2022 ($100K) and 2023 ($143,716) 72410 SARC - 7500sqft. Gymnasium MPR Admin.- 35,274 (35,274) n/a Project in progress. 2021 cash flows were $35,274 higher than planned capital spend for 2021, however, project spending remained within approved CBA. 72419 Town Hall - Repair of concrete/stone walkways 33,500 - 33,500 100.0 % 72441 AFLC - Pool Boiler Replacement 150,000 - 150,000 100.0 % Under review by Consultants. 72443 AFLC - Pylon Sign 57,456 5,342 52,114 90.7 % Project in progress, to be completed in 2022. 72445 CYFS - Firehall 4-3 Pylon Sign 30,000 49,354 (19,354) (64.5 %) Complete. Project came in over budget and there were unforeseen electrical conditions on site during installation. 72448 Town Hall - Interior Conversion to LED 87,572 85,180 2,392 2.7 % Complete 72449 SARC - Interior LED Retrofit 21,961 27,721 (5,760) (26.2 %) Complete. 2021 cash flows were $5,760 higher than planned capital spend for 2021, however, project spending remained within approved CBA. 72450 SARC - Low-E Ceiling - Arenas - - - n/a 72452 Energy and Demand Management Plan Implementation 100,000 - 100,000 100.0 % In progress 72453 Unplanned - Emergency Repairs Contingency 146,557 47,877 98,680 67.3 % Funding to be used if required. 72454 Victoria Hall - Accessible Ramp - Accessibility Plan Implementation 20,000 - 20,000 100.0 % 72457 Lane Ropes for SARC & AFLC and new diving board at SARC 75,000 16,276 58,724 78.3 % Complete 72459 Facilities Study 90,000 - 90,000 100.0 % In progress 72460 Aurora Sports Dome Retrofit - - - n/a 72469 COVID-19 Related Facility Improvements 72,550 - 72,550 100.0 % Project in progress, to be completed in 2022. 74021 SARC - Comprehensive Sound/Audio/Public Address System Upgrade 45,200 2,544 42,656 94.4 % Project in progress, to be completed in 2022. 81019 Aurora Town Square 33,267,317 14,755,460 18,511,857 55.6 % In progress Total Facilities 37,686,698$ 15,189,893 22,496,805 59.7 % Community Services Total 37,995,862$ 15,220,037$ 22,775,825$ 59.9 % 6 of 13 Page 91 of 98 ($)(%)2021 Actuals Variance Variance Explanation Planned/Budgeted Capital Spend for 2021 Planning & Development Services Environment/ Waste 42810 Climate Change Adaptation Plan 100,000 49,129 50,871 50.9 % Plan preparation ongoing. To be completed in 2022/2023. Total Environment/ Waste 100,000 49,129 50,871$ 50.9 % Water 43040 Water Hydraulic Model for the Town 17,512 - 17,512 100.0 % 43048 St John's Sdrd - Leslie to 2C 246,297 - 246,297 100.0 % This contract is managed by York Region. Aurora was expecting to pay its contribution in 2021, however, the Region has not issued any invoices in 2021. Total Water 263,809 - 263,809$ 100.0 % Storm Sewer 42059 Storm Sewer Reserve Fund and Rates Study 102,308 - 102,308 100.0 % The remaining approved CBA of $102,308 will be spent in 2022 (50%) and 2023 (50%). 42064 Storm Sewer Outlet Cleanup 991,342 468,569 522,773 52.7 % Additional works to be completed in 2022 regarding the butternut tree compensation planting and to address some deficiencies during the warranty period. 42066 Damaged Storm Pipe off Henderson Dr 3,896,064 39,052 3,857,012 99.0 % Construction work will be completed in 2023. Waiting on York Region to complete their works first. 42067 Storm Outfall Erosion at Mill Street 59,661 1,347 58,314 97.7 % Completed under budget. 42072 Vandorf Sideroad Culvert and Ditch Repair 49,229 - 49,229 100.0 % Completed under budget. 42075 Performance Monitoring of LID Controls 83,950 77,067 6,883 8.2 % 42079 Devlin Place Stream Rehabilitation 119,457 94,172 25,285 21.2 % 42080 Jones Court Stream Rehabilitation 150,000 45,201 104,799 69.9 % Design ongoing. Construction to be completed in 2023. 42083 Willow Farm Lane Stream Rehabilitation 140,630 77,018 63,612 45.2 % Design ongoing. Construction to be completed in 2023. Total Storm Sewer 5,592,641 802,426 4,790,215$ 85.7 % 7 of 13 Page 92 of 98 ($)(%)2021 Actuals Variance Variance Explanation Planned/Budgeted Capital Spend for 2021 Roads 31054 Road Resurfacing - Ind Pkwy S (Engelhard to Yonge), Vandorf (Ind Pwy S - Bayview)363,749 (27,451) 391,200 107.5 % Project in warranty phase, some deficiencies still to be addressed. To be closed in 2022. 31056 Bloomington Sdrd - Bathurst to Yonge - Sidewalk/ Bikeway/ Illumination 274,693 - 274,693 100.0 % This contract is managed by York Region. Aurora was expecting to pay its contribution in 2021, however, the Region has not issued any invoices in 2021. 31101 Reconstruction - Vandorf Sdrd (Sections)52,692 4,792 47,900 90.9 % Some deficiencies related to road settlement still need to be addressed. 31108 Reconstruction - Algonquin Crescent and Haida Drive (Sections)554,776 - 554,776 100.0 % Completed under budget. 31109 Reconstruction - Kennedy St W & Temperance St 162,126 (36,311) 198,437 122.4 % Completed under budget. 31113 M & O and Underground Infrastructure Rehabilitation - Murray Dr, Kennedy St W, Pinehurst Crt. Wiles Crt. 2,286,652 1,246,375 1,040,277 45.5 % To be completed by November 2022. 31114 Reconstruction - Ransom Court and Ransom Street 667,341 - 667,341 100.0 % This is no longer required and $667,341 in approved CBA will not be spent. 31116 Road Resurfacing - Dunning Ave, Edward St, Golf Links Dr, Ind Pkwy S, McClellan Way, Orchard Hts. Blvd, Tamarac Trail, Yonge St S 712,324 - 712,324 100.0 % Under warranty. Completed under budget. 31118 Reconstruction- Browning Crt, Johnson Rd, Holman Cres, Baldwin Rd 494,453 435,486 58,967 11.9 % Under warranty, plus $25K for as-built preparations. To be completed in 2022. 31119 Reconstruction- Adair Dr, Bailey Cres, Davidson Rd., Harriman Rd.276,800 96,033 180,767 65.3 % Awaiting final invoice and additional works for street lighting in 2022. 31124 Henderson Dr. - Wildlife Passage 166,190 66,534 99,656 60.0 % The remaining approved CBA of $99,656 will be spent in 2022. 31126 M & O - Harmon Ave, Orchard Hts Blvd., Whispering Pine Trail 438,428 - 438,428 100.0 % Under warranty. Completed under budget. 8 of 13 Page 93 of 98 ($)(%)2021 Actuals Variance Variance Explanation Planned/Budgeted Capital Spend for 2021 31134 Road Resurfacing - Yonge St (Golf Links - Orchard Hts)486,465 7,836 478,629 98.4 % Under warranty. Completed under budget. 31140 Road Resurfacing - Archerhill Crt, Jarvis Ave, Gilbert Dr, Westview Dr, McClellan Way 249,569 - 249,569 100.0 % Under warranty. Completed under budget. 31175 Parking Lot Rehabilitation Study 120,409 37,942 82,467 68.5 % Completed under budget. 31177 Recon - Vandorf Sdrd - Monkman Crt - Carisbrooke Cir.947,783 1,334,152 (386,369) (40.8 %) Completed in 2021. 2021 cash flows were $386,369 higher than planned capital spend for 2021, however, project spending remained within approved CBA. 31178 Reconstruction of Poplar Crescent 3,853,779 38,992 3,814,787 99.0 % Construction in 2023. 31199 Road Resurfacing - Gurnett St., Kennedy St. E., Victoria St.,250,000 47,588 202,412 81.0 % Construction in 2023/2024. 31217 Construction of Median at Yonge Street & Ridge Road 150,000 - 150,000 100.0 % The remaining approved CBA of $150,000 will be spent in 2022. 31243 Long Term Remediation for the Pavement Heave Over Vandorf Culvert West of Bayview 230,000 - 230,000 100.0 % The remaining approved CBA of $230,000 may be spent in 2022. 34006 Pave Snow Storage Facility - Lambert Willson Park 850,000 828,012 21,988 2.6 % Project is underway, substantial completion by December 2022. Total Roads 13,588,229 4,079,980 9,508,249$ 70.0 % Traffic 34518 Pedestrian Crossings as per 2019 DC Study 67,209 19,495 47,714 71.0 % Works to continue in 2022. 34519 Traffic Calming as per 2019 DC Study 97,808 36,145 61,663 63.0 % Works to continue into 2022. 34527 Yonge/Wellington Intersection Improvements 448,533 55,093 393,440 87.7 % Project will be substantially completed in 2022. 34533 Traffic Calming Measures in School Zones 17,049 - 17,049 100.0 % 34562 Active Transportation Master Plan 150,000 4,743 145,257 96.8 % To be completed by Fall 2022. Total Traffic 780,599 115,476 665,123$ 85.2 % 9 of 13 Page 94 of 98 ($)(%)2021 Actuals Variance Variance Explanation Planned/Budgeted Capital Spend for 2021 Sidewalks 34610 S/W, Multi-use Trail and Illumination - Leslie St - Wellington St. to Don Hillock Dr 182,836 91,978 90,858 49.7 % Completed under budget. 34620 S/W, Multi-use Trail and Illumination - Leslie St. - Wellington St. E to State Farm 361,580 291,663 69,917 19.3 % Completed under budget. 34626 Sidewalk Construction on Kitimat 45,971 - 45,971 100.0 % Completed under budget. 34635 S/W, Multi-use Trail and Illumination - St. John Sdrd - Bayview to Leslie 73,599 31,301 42,298 57.5 % Project will continue in 2022. 34637 S/W - Leslie St - 600 m north of Wellington to N Town Limit 321,467 (119,855) 441,322 137.3 % To be completed in Summer 2023. Total Sidewalks 985,453 295,087 690,366$ 70.1 % Streetlights 34707 Lighting Upgrade - Wellington, Berczy to West of Mary 398,922 - 398,922 100.0 % Completed under budget. Total Streetlights 398,922 - 398,922$ 100.0 % Studies 81001 Official Plan Review/Conformity to Places to Grow 97,585 168,694 (71,109) (72.9 %) To be completed in 2024. 2021 cash flows were $71,109 higher than planned capital spend for 2021, however, project spending remained within approved CBA. 81032 Town Wide Green Development Guidelines 25,000 36,122 (11,122) (44.5 %) 2021 cash flows were $11,122 higher than planned capital spend for 2021, however, project spending remained within approved CBA. Total Studies 122,585 204,816 (82,231)$ (67.1 %) Community Planning 81027 Municipal Hertiage Register Review and Update 54,612 64,815 (10,203) (18.7 %) 2021 cash flows were $10,203 higher than planned capital spend for 2021, however, project spending remained within approved CBA. Total Community Planning 54,612 64,815 (10,203)$ (18.7 %) 240 Building 24014 Digital Plan Review and E-Permit Applications 91,897 80,219 11,678 12.7 % Total 240 Building 91,897 80,219 11,678 12.7 % Planning & Development Total 21,978,747$ 5,691,948$ 16,286,799$ 74.1 % 10 of 13 Page 95 of 98 ($)(%)2021 Actuals Variance Variance Explanation Planned/Budgeted Capital Spend for 2021 Finance 14012 Financial System 374,000$ 51,000$ 323,000 86.4 % In 2021 the project went through the RFP process, contract negotiation occurred in the beginning of 2022 and resulted in a report to Council revising the total budget. Planned expenditures will commence in June 2022 and are anticipated to be incurred over a 12 month period. 14077 Community Benefit Charge Study and DC update 50,000 18,375 31,625 63.3 % 14080 Procurement Modernization 65,000 59,932 5,068 7.8 % 14087 Town of Aurora-Second Generation Asset Management Plan 70,000 71,232 (1,232) (1.8 %) Project complete. 43038 Water Meter Replacement Program 571,295 85,275 486,020 85.1 % 2021 expenditures were delayed due to the COVID-19 pandemic. Project will continue as planned for 2022 through 2024. 43055 Advanced Metering Infrastructure 1,500,000 - 1,500,000 100.0 % Contract was still under negotiation in 2021 and has been signed in early 2022. The planned spend is anticipated to be incurred in 2022 and 2023. Finance Total 2,630,295$ 285,814$ 2,344,481$ 89.1 % Corporate Services Legal Services 13020 Appraisal of Town Buildings - 2019 8,974$ -$ 8,974$ 100.0 % 13026 Risk Management (Conditionally Approved 2022)30,000 11,702 18,298 61.0 % Total Legal Services 38,974 11,702 27,272$ 70.0 % 11 of 13 Page 96 of 98 ($)(%)2021 Actuals Variance Variance Explanation Planned/Budgeted Capital Spend for 2021 Human Resources 13015 Employee Engagement Survey - 2020 32,033 1,587 30,446 95.0 % 13018 Human Resources Information/Payroll System 225,483 105,357 120,126 53.3 % We have implemented the foundational part of our HRIS system which allows us to keep all the records, process payroll, run reports but there are several other modules that have yet to be implemented and were part of the procurement award. These include Applicant Tracking System, onboarding module, performance evaluation and a learning management system that was discussed but not finalized. We are currently planning to implement two more modules this year which will likely require half of the remaining funds and the rest likely to be used in 2023. 13021 Diversity and Inclusion Strategy Consultant 30,000 33,072 (3,072) (10.2 %) Project complete. 13027 Job Hazard Assessments 30,000 - 30,000 100.0 % Total Human Resources 317,516 140,016 177,500$ 55.9 % Strategic Initiatives 12016 Customer Experience Plan (CEP)111,591 (224) 111,815 100.2 % Delays due to COVID-19. Will be completed in 2022/2023. 13011 Business Continuity Management Program 46,809 - 46,809 100.0 % Delays in project procurement have deferred expenditures to 2022 Total Strategic Initiatives 158,400 (224) 158,624$ 100.1 % Bylaw 24015 Radios for By-Law Officers 35,264 - 35,264 100.0 % 24016 Animal Control Start Up 23,070 20,847 2,223 9.6 % Total Bylaw 58,334 20,847 37,487$ 64.3 % 12 of 13 Page 97 of 98 ($)(%)2021 Actuals Variance Variance Explanation Planned/Budgeted Capital Spend for 2021 IT Department 14047 Computer & Related Infrastructure Renewal 641,055 354,480 286,575 44.7 % Delays in procuring goods due to supply chain issues and delays in completing Phase 2 of Ethernet Switch Refresh project which will now occur in 2022. 14058 Project Management Software 25,000 - 25,000 100.0 % 14068 Wireless Upgrades and Enhancements 74,011 - 74,011 100.0 % Delay in purchase of ARUBA controller. The remaining approved CBA of $74,011 will be spent in 2022 and 2023. 14070 Boardroom Audio/Video Equipment 100,000 6,375 93,625 93.6 % The remaining approved CBA of $93,625 will be spent in 2022 and 2023. 14072 Cityview Portal Implementation 92,100 - 92,100 100.0 % The remaining approved CBA of $92,100 will be spent in Summer 2022 once contract is signed. 14073 Information Technology Strategic Plan Implementation - Studies and Other 208,310 3,778 204,532 98.2 % The remaining approved CBA of $204,532 will be spent in 2022, 2023 and 2024. 14075 Business Process Automation and Data Integration 250,500 20,963 229,537 91.6 % The remaining approved CBA of $229,537 will be spent in 2022, 2023 and 2024. 14076 Digital Education Program 25,000 - 25,000 100.0 % 14082 Data Centre Upgrades - Cybersecurity 60,000 4,134 55,866 93.1 % Waiting for results from consultant to determine what to purchase. The remaining approved CBA of $55,866 will be spent in 2022. 14085 Migration to Cityview Workspace 100,000 72,390 27,610 27.6 % 14089 Business Intelligence 50,000 - 50,000 100.0 % The remaining approved CBA of $50,000 will be spent in 2022 and 2023. 24013 CityView Portal 100,000 21,471 78,529 78.5 % The project is currently in progress and is scheduled to complete in Q2 of 2022. 81025 GIS Scanner 10,000 - 10,000 100.0 % Total IT Department 1,735,976 483,591 1,252,385$ 72.1 % Access Aurora 12002 Accessibility Plan Implementation 232,276 31,413 200,863 86.5 % Revisions to provincial regulations impacted implementation timelines. 12025 Customer Relationship Management (CRM)47,986 - 47,986 100.0 % 13023 Access Aurora Telephony Project 12,328 - 12,328 100.0 % Total Access Aurora 292,590 31,413 261,177 89.3 % Corporate Services Total 2,601,790$ 687,345$ 1,914,445$ 73.6 % Total Capital Projects 91,920,351$ 34,717,006$ 57,203,345$ 62.2 % 13 of 13 Page 98 of 98