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AGENDA - General Committee - 20150126SPECIAL GENERAL COMMITTEE 2015 BUDGET REVIEW MEETING AGENDA MONDAY,JANUARY 26,2015 7 P.M. COUNCIL CHAMBERS AURORA TOWN HALL PUBLIC RELEASE January 23,2015 TOWN OF AURORA SPECIAL GENERAL COMMITTEE 2015 BUDGET REVIEW MEETING AGENDA Monday,January 26,2015 7 p.m. Council Chambers 1.DECLARATION OF PECUNIARY INTEREST AND GENERAL NATURE THEREOF 2.APPROVAL OF THE AGENDA RECOMMENDED: THAT the agenda as circulated by the Legal and Legislative Services be approved. 3.DELEGATIONS RECOMMENDED: THAT the requirements of section 3.8(c)of the Procedural By-law be waived to permit the delegation of Neil Garbe,Chief Administrative Officer,and Dan Elliott, Director,Corporate &Financial Services,to speak for more than five (5)minutes. (a)Neil Garbe,Chief Administrative Officer,and Dan Elliott,Director,Corporate &Financial Services -Treasurer Re:Item 3 –Report No.CFS15-003 –Draft 2015 Business Plan with Operating and Capital Budgets –Overview Report 4.PUBLIC CONSULTATION –OPEN SESSION –OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO PROVIDE INPUT REGARDING THE 2015 BUDGET 5.CONSIDERATION OF ITEMS 6.ADJOURNMENT Special General Committee –2015 Budget Review Meeting Agenda Monday,January 26,2015 Page 2 of 2 AGENDA ITEMS 1.CAO15-002 –Results of Citizen Budget Survey pg.1 RECOMMENDED: THAT Report No.CAO15-002 be received for information. 2.CFS15-004 –Proposed Changes to Annual Budget Approach and Timing pg.14 RECOMMENDED: THAT Report No.CFS15-004 be received;and THAT staff be directed to implement the changes to the annual Budget process as set out in this report;and THAT Special General Committee (Budget)meetings be scheduled for Monday September 28,2015 at 9:00 a.m.and Monday October 5,2015 at 9:00 a.m.,and that the official meeting schedule of Council be amended accordingly. 3.CFS15-003 –Draft 2015 Business Plan with Operating and Capital pg.20 Budgets –Overview Report RECOMMENDED: THAT Report No.CFS15-003 and accompanying presentation be received as an overview of the 2015 Operating Budget and Capital Investment Plan;and THAT the detailed Draft Capital Plan and departmental Operating Budgets be reviewed at Special General Committee meetings scheduled over the period covering from January through to March 2015;and THAT,following the Budget deliberation meetings,staff prepare an updated consolidated Budget report and presentation for Council reflecting all Budget changes approved by General Committee. TOWN OF AURORA GENERAL COMMITTEE REPORT No.CAO15-002 SUBJECT:Results of Citizen Budget Survey FROM:Neil Garbe,Chief Administrative Officer DATE:January 26,2015 RECOMMENDATIONS THAT Report No.CAO15-002 be received for information. PURPOSE OF THE REPORT To provide Council the results of the recent Citizen Budget resident survey. BACKGROUND In July 2014,Town staff formed a working group to design and implement a Citizen Budget online interactive survey with staff from Open North,a non-profit company that creates online tools for citizen engagement. The survey was designed to inform residents on how the Town allocates tax dollars for various programs and services,provide homeowners the opportunity to provide feedback,and serve as a broad gauge of resident satisfaction with municipal spending. The survey was built with the potential to re-deploy annually or as required. The Citizen Budget survey offered interested residents the option to provide feedback on 13 core programs and services offered by the Town,by indicating whether funding should be increased,reduced,or remain the same. Citizen Budget calculated the selections instantaneously,displaying the effect the choices would have on the resident’s tax levy. The survey was online from September 15 to November 30,2014 and was promoted in the Town Notice Board,articles in local newspapers,Town website,and social media feeds. Residents who completed the survey were entered into a draw for an Apple IPad Air. Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 1 Page -1 -1 - January 26,2015 -2 -Report No.CAO15-002 COMMENTS The Town received 104 unique completed surveys,verified and screened IP address. Citizen Budget posed the following 13 questions,providing examples of programs and services in each area. “How would you adjust your property tax funding to …” 1)Community Planning? 2)Enforcement and Licensing? 3)Animal Control? 4)Road Network Operations? 5)Snow Management and Plowing Operations? 6)Solid Waste Management? 7)Municipal Facilities? 8)Community Programs? 9)Parks,Trails and Open Spaces? 10)Cultural Services? 11)Fire and Emergency Services? 12)Infrastructure Rehabilitation and Replacement Contributions? 13)Aurora Public Library? The survey questions allowed nine options for response: •A selection of 100%indicated zero or no change •A selection below 100%indicated a reduction •A selection above 100%indicated an increase 90%92.5%95%97.5%100%102.5%105%107.5%110% 10%7.5%5%2.5%0 2.5%5%7.5%10% Survey Options Reduce Increase Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 1 Page -2 -2 - January 26,2015 -3 -Report No.CAO15-002 Results: Community Planning:Most common response:No change Second most common:10%Reduction Median selection:No change Average of responses:1.6%Reduction Enforcement and Licensing:Most common response:No change Second most common:10%Reduction Median selection:2.5%Reduction Average of responses:2%Reduction Animal Control:Most common response:No change Second most common:10%Reduction Median selection:2.5%Reduction Average of responses:2.8%Reduction Road Network Operations:Most common response:No change Second most common:2.5%Increase Median selection:No change Average of responses:0.2%Reduction Snow Management/Plowing:Most common response:No change Second most common:2.5%Increase Median selection:No change Average of responses:0.2%Increase Solid Waste Management:Most common response:No change Second most common:2.5%Increase Median selection:No change Average of responses:1.4%Decrease Municipal Facilities:Most common response:No change Second most common:2.5%Reduction Median selection:2.5%Reduction Average of responses:2.5%Reduction Community Programs:Most common response:No change Second most common:10%Reduction Median selection:No change Average of responses:1%Reduction Parks,Trails/Open Spaces:Most common response:No change Second most common:2.5%Increase Median selection:No change Average of responses:1%Reduction Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 1 Page -3 -3 - January 26,2015 -4 -Report No.CAO15-002 Cultural Services:Most common response:10%Reduction Second most common:No change Median selection:5%Reduction Average of responses:3.7%Reduction Fire and Emergency:Most common response:No change Second most common:2.5%Increase Median selection:No change Average of responses:1.1%Reduction Rehab and Replacement:Most common response:No change Second most common:2.5%Increase Median selection:No change Average of responses:0.1%Increase Aurora Public Library:Most common response:No change Second most common:10%Reduction Median selection:No change Average of responses:1.5%Reduction Observations: Across all 13 program and service areas: •No change was the most common response in 12 of the 13 areas •10%spending reduction and 2.5%spending increase were tied for second most common responses,with 5 responses each in the 13 areas •In terms of Total Overall Responses: •No change was the most popular response,comprising 31%of the combined responses;twice the next most popular selection •10%spending reduction was the next most popular response,selected nearly 15%of the time •Cultural Services garnered the lowest overall results with: •Lowest average score 96.3%(recommending a spending reduction of 3.7%) •10%spending reduction selected as most common response •Snow Management and Plowing and Infrastructure Rehab and Replacement had the highest averages,recommending modest spending increases 0.2%and 0.1% respectively) Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 1 Page -4 -4 - January 26,2015 -5 -Report No.CAO15-002 Breakdown by respondent: •26 respondents opted for no change or decreased spending in all service areas •12 respondents opted for decreased spending in all service areas •Four respondents selected 10%spending reduction as most common response, including two respondents who selected this option for all service areas •Nine respondents opted for no change or increased spending in all service areas •Four respondents selected 10%spending increase as the most common response,including one respondent who selected this option for all service areas LINK TO STRATEGIC PLAN The Citizen Budget survey supports the following elements of the Town of Aurora Strategic Plan: Goal:Enhancing Communication between Staff and the Public Key Outcome:Enhancing Stakeholder Co-operation and Communication Guiding Principle:Broad community outreach and engagement with partners, businesses,newcomers and community groups to ensure inclusiveness Pillars of Success:Identify new formats,methods and technologies to effectively and regularly engage the community ALTERNATIVE(S)TO THE RECOMMENDATIONS None. FINANCIAL IMPLICATIONS The cost to design,build and execute the Citizen Budget Survey was $6,000. CONCLUSIONS The data from the Citizen Budget responses point strongly towards maintaining the Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 1 Page -5 -5 - Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 1 Page - 6 - 6 - January 26, 2015 -6-Report No. CA015-002 status quo on spending levels. No change was the most common response in 12 of the 13 areas and garnered 31% of the overall responses -double the next most popular selection. The exception to status quo spending was Cultural Services, where respondents recommended the sharpest decreases in spending. Cultural Services was the lone category where the most common response was a 10% spending reduction. While the data suggests that status quo is preferable in the majority of program and service areas in the survey, there were a prominent number of responses recommending a 10% spending reduction. 10% spending reduction was the most popular response in one category, the second most popular response in five categories and garnered nearly 15% of the overall responses (second overall). PREVIOUS REPORTS None. ATTACHMENTS Attachment #1 -All Responses PRE-SUBMISSION REVIEW Executive Leadership Team meeting-January 15, 2015 Prepared by: Michael Kemp, Manager of Corporate Communications -Ext. 4238 Neil Garbe Chief Administrative Officer Page 1 of 7 Attachment #1 Community Planning –All Responses Enforcement and Licensing –All Responses 17 7 12 15 25 14 2 3 9 0 5 10 15 20 25 30 35 40 45 50 90.0%92.5%95.0%97.5%100.0%102.5%105.0%107.5%110.0% 19 7 14 13 27 10 5 2 7 0 5 10 15 20 25 30 35 40 45 50 90.0%92.5%95.0%97.5%100.0%102.5%105.0%107.5%110.0% Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 1 Page -7 -7 - Page 2 of 7 Animal Control –All Responses Road Network Operations –All Responses 26 6 13 14 28 6 2 2 7 0 5 10 15 20 25 30 35 40 45 50 90.0%92.5%95.0%97.5%100.0%102.5%105.0%107.5%110.0% 12 1 8 11 30 29 5 1 7 0 5 10 15 20 25 30 35 40 45 50 90.0%92.5%95.0%97.5%100.0%102.5%105.0%107.5%110.0% Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 1 Page -8 -8 - Page 3 of 7 Snow Management and Plowing Operations –All Responses Solid Waste Management –All Responses 7 4 6 9 38 23 10 3 4 0 5 10 15 20 25 30 35 40 45 50 90.0%92.5%95.0%97.5%100.0%102.5%105.0%107.5%110.0% 11 2 12 12 47 15 4 0 1 0 5 10 15 20 25 30 35 40 45 50 90.0%92.5%95.0%97.5%100.0%102.5%105.0%107.5%110.0% Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 1 Page -9 -9 - Page 4 of 7 Municipal Facilities –All Responses Community Programs –All Responses 13 7 15 24 30 10 3 0 2 0 5 10 15 20 25 30 35 40 45 50 90.0%92.5%95.0%97.5%100.0%102.5%105.0%107.5%110.0% 18 4 9 15 25 10 12 3 8 0 5 10 15 20 25 30 35 40 45 50 90.0%92.5%95.0%97.5%100.0%102.5%105.0%107.5%110.0% Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 1 Page -10 -10 - Page 5 of 7 Parks and Trails and Open Spaces –All Responses Cultural Services –All Responses 12 5 11 15 30 17 6 3 5 0 5 10 15 20 25 30 35 40 45 50 90.0%92.5%95.0%97.5%100.0%102.5%105.0%107.5%110.0% 30 12 11 12 26 2 3 2 6 0 5 10 15 20 25 30 35 40 45 50 90.0%92.5%95.0%97.5%100.0%102.5%105.0%107.5%110.0% Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 1 Page -11 -11 - Page 6 of 7 Fire and Emergency Services –All Responses Infrastructure Rehabilitation and Replacement Contributions –All Responses 12 5 8 11 39 22 2 1 4 0 5 10 15 20 25 30 35 40 45 50 90.0%92.5%95.0%97.5%100.0%102.5%105.0%107.5%110.0% 5 3 8 17 36 19 8 2 6 0 5 10 15 20 25 30 35 40 45 50 90.0%92.5%95.0%97.5%100.0%102.5%105.0%107.5%110.0% Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 1 Page -12 -12 - Page 7 of 7 Aurora Public Library –All Responses Cumulative Totals of All Responses (104 surveys X 13 responses each) 19 2 7 14 39 9 9 0 5 0 5 10 15 20 25 30 35 40 45 50 90.0%92.5%95.0%97.5%100.0%102.5%105.0%107.5%110.0% 201 65 134 182 420 186 71 22 71 0 50 100 150 200 250 300 350 400 450 90.0%92.5%95.0%97.5%100.0%102.5%105.0%107.5%110.0% Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 1 Page -13 -13 - GENERAL COMMITTEE REPORT No.CFS15-004 SUBJECT:Proposed Changes to Annual Budget Approach and Timing FROM:Dan Elliott,Director,Corporate &Financial Services -Treasurer DATE:January 26,2015 RECOMMENDATIONS THAT Report CFS15-004 be received;and THAT staff be directed to implement the changes to the annual budget process as set out in this report;and That Special General Committee (Budget)meetings be scheduled for Monday September 28,2015 at 9:00 a.m.and Monday October 5,2015 at 9:00 a.m.,and that the official meeting schedule of Council be amended accordingly. PURPOSE OF THE REPORT This report will propose changes to the annual budget cycle for Aurora,and changes in focus for the annual operating budget.Specifically,there are five changes to propose as follows: Introduction of the Asset Management Plan (AMP)document,merging it with the current annual Ten Year Capital Investment Plan Combining together the annual capital budget with the review of the combined Asset Management Plan and Ten Year Capital Investment Plan documents,and completing this review and approval of capital into late September of each year. Maintaining the review of the Annual Operating Budget in the late Fall Introduction of multi-year operating budgets Incorporation of a focus on budget changes,and service levels,and Key Performance Indicators (KPI’s)rather than detailed departmental operational budget reviews. Transferring the detailed departmental budget reviews to the new Finance Advisory Committee,to be conducted on a periodic basis at the discretion of the Finance Advisory Committee outside of the operating budget review and approval process. TOWN OF AURORA Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 2 Page -1 -14 - January 26,2015 -2 -Report No.CFS15-004 BACKGROUND Several changes in the budget environment have occurred in the last number of years for Aurora.A major new requirement of the Provincial Government requires all municipalities seeking Provincial or Federal funding must have an Asset Management Plan (AMP)A draft of that plan was complete and available on December 31,2014 as required,but must be approved by Council by December 31,2015.This document is to outline the processes and analysis of the Town’s approach to managing its existing infrastructure for sustainability.In addition to this new requirement,Council members have expressed an interest in finding a more streamlined approach to budget review and approvals,minimizing the number of meetings required for such.Also,Council has expressed interest in incorporating service levels and KPI’s into the budget review process,particularly for Operating Budget. COMMENTS Introduction of the Asset Management Plan document,and merging it with the current annual Ten Year Capital Investment Plan As noted above,the AMP is a document now required of all municipalities seeking infrastructure funding grants or loans.The Town has prepared the plan,and will be presenting it to Budget Committee at its February 7th budget meeting.The Asset Management Plan couples extremely well with the current format of the Town’s annually updated Ten Year Capital Investment Plan.Staff recommend that these two documents be merged together formally into a single publication,to be available on the website. The combined document will comprehensively outline how the Town plans,manages, and makes decisions regarding capital infrastructure,while ensuring financial sustainability,and the current plans for investment.The current draft AMP addresses all current asset categories except Information Technology (IT)assets,and the AMP minimum requirements did not require this category be included.During 2015,staff will make the necessary changes to include full and similar discussion for the IT assets as is included in the other categories of assets. Combining together the annual capital budget with the review of the combined Asset Management Plan and Ten Year Capital Investment Plan documents. Currently,staff have been presenting the annual updated Ten Year Capital Investment Plan in June for Council receipt.Due to the timing delay between this update report to Council and the late fall budget,a number of Capital budget changes occur.To improve the alignment between the plan and the actual next year’s budget,staff are recommending that at the time of presentation of the combined AMP and Ten Year Plan documents,that the forthcoming year’s capital budget be approved,and that this be scheduled with Budget Committee for late September of each year.Actual funding for Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 2 Page -2 -15 - January 26,2015 -3 -Report No.CFS15-004 the projects would not become available until the following January,however all tender documents (even award of contracts)and project planning can move forward knowing that the funding has already been allocated and approved to start in January. Accordingly,staff propose scheduling Budget Committee meetings for September 28, and October 5,2015. Introduction of multi-year operating budgets Section 291 of the Municipal Act,2001,S.O.2001,c.25 as amended (the “Act”)makes provision for multi-year budgets to be used by Municipalities.A council may approve a multi-year budget for a period of two to five years,in which each year’s details are shown separately.Annually thereafter,Council must review and “re-adopt”that year’s budget,reflecting any changes necessary to reflect the surplus or deficit actual results of the prior year’s budget (Section 290(4)(b)changes).Any multi-year budget which reaches beyond an election,the budget for the first year following the election must be reviewed and re-adopted by the newly elected Council. A number of municipalities are beginning to utilize formal multi-year budgets.The Town of Aurora have been working for a couple of years to forecast key pressures facing the municipality in the following three years,and provide Council with this tax pressure forecast.Staff are now in the position to improve upon this and actually present Council with formal detailed multi-year budgets beginning with the presentation for the 2016 budget year.For 2015,staff will show the three year forecast,and undertake a detailed review of this with Committee.Committee will be asked to approve the budget forecast, which will mean that Council is prepared to accept and approve the forecasted tax increases on the basis of the forecast presented.Staff will then undertake to present a detailed multi-year budget which reflects the forecast target tax increases for review and approval by Committee.Such an approach will assist Committee in reducing the time taken in numerous budget meetings each year.The budget presented for 2016 will be a continually rolling four year multi-year budget. The process would be as follows: 1.2015 Operating budget reviewed and approved (spring 2015) 2.Three year operating forecast presented,reviewed and approved (spring 2015) 3.2016-2019 four year rolling operating budget reviewed and approved (fall 2015) 4.2017-2020 four year rolling operating budget reviewed and re-adopted (fall 2016) 5.2018-2021 four year rolling operating budget reviewed and re-adopted (fall 2017) 6.2019-2022 four year rolling operating budget reviewed and approved (new Council spring 2019) All assumptions of growth,new staffing proposals,and key pressures included will be disclosed for each year of the outlook years.Any significant changes of regulations, requirements,major decisions of Council,or newly approved initiatives will result in a variance in the final budget from the previously approved budget and forecast. Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 2 Page -3 -16 - January 26,2015 -4 -Report No.CFS15-004 Moving to multi-year budgets will improve the operational efficiency of the municipalities through improved long range planning,and integration of Strategic Plan objectives,and discussion of service levels,rather than annually looking at each budget line item throughout the corporation. Incorporation of a focus on budget changes,and service levels,and KPI’s rather than detailed departmental operational budget reviews. Recently,staff began to incorporate Key Performance Indicators (KPI’s),and a discussion of goals and objectives into the annual business plan and budget document. Service levels have also been a focus of Council in the last few years,and staff are now responding by incorporating discussion and cost allocation by service levels.While the corporation has not been in the practice of allocating all overhead costs to each public service offering,(and are not proposing on moving in this direction),staff will nonetheless present information about service levels and costs divided on service levels within that department’s binder section.As the budget binder is already very long and detailed,including this additional information and discussion on service levels would only make the binder even thicker.For 2015,staff have eliminated the previous budget details by managerial division,but replaced such with the service level information. Accordingly,the Budget Committee reviews will focus on changes in budget from the prior year,the KPI’s,service levels and goals and objectives of each department.This approach will streamline the annual budget review for operational issues. Transferring the detailed departmental budget reviews to the new Finance Advisory Committee In the event that Budget Committee would like detailed reviews of departmental, managerial,divisional,or cost centre budgets,staff propose that select base operating budgets be referred to the new Finance Advisory Committee of Council for a cyclical detailed review off-line from the annual budget review process of Council.Such recommendations will come to Council by way of meeting minutes allowing all members of Council to see and discuss such recommendations prior to approval.Any recommendations of the Finance Advisory Committee would be incorporated into the next presented four year operating budget. LINK TO STRATEGIC PLAN The proposed modifications to the annual budget process are intended to streamline the efficiency of the preparation and Committee’s review and approval processes of the Town’s annual operating and capital budgets and the ten year capital planning.These changes are intended to assist with improving the efficiency of government, transparency to the public of the process and enhancing accountability of the administration to Council. Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 2 Page -4 -17 - January 26,2015 -5 -Report No.CFS15-004 ALTERNATIVE(S)TO THE RECOMMENDATIONS 1.May receive the report only,making no changes to the budget process. 2.May provide alternative direction regarding budget process change. 3.Other alternatives which may be desirable. FINANCIAL IMPLICATIONS Staff can make the recommended changes to the budget cycle without additional costs to the Corporation.Fewer budget meetings may result,however cost savings would be minimal as a result. CONCLUSIONS The proposed changes would allow consistent and comprehensive review of the Town’s capital program during late September by Committee,including the approval of the forthcoming year’s capital budget.Changes to the Operating Budget review process will enhance Committee’s focus on core issues with impacts to the budget,service levels and KPI’s.Detailed line by line base budget reviews could be referred to the new Finance Committee for cyclical detailed reviews to occur outside of the primary annual budget process. Moving to multi-year budgets will improve fiscal and operational planning,as well as improving the transparency of the budget process. PREVIOUS REPORTS None ATTACHMENTS None Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 2 Page -5 -18 - Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 2 Page - 6 -19 - January 26, 2015 -6-Report No. CFS15-004 PRE-SUBMISSION REVIEW Executive Leadership Team-Thursday, January 22, 2015 Prepared by: Dan Elliott, Director of Corporate & Financial Services -_ easurer nffbil _tf/1-----~.-· __ Dan Elliott, CPA, CA Neil Garbe Director of Corporate & Financial Chief Administrative Officer Services -Treasurer GENERAL COMMITTEE REPORT No.CFS15-003 SUBJECT:Draft 2015 Business Plan with Operating and Capital Budgets -Overview Report FROM:Dan Elliott,Director,Corporate &Financial Services -Treasurer DATE:January 26,2015 RECOMMENDATIONS THAT report CFS15-003 and accompanying presentation be received as an overview of the 2015 Operating Budget and Capital Investment Plan;and THAT the detailed Draft Capital Plan and departmental Operating Budgets be reviewed at Special General Committee meetings scheduled over the period covering from January through to March 2015;and THAT following the budget deliberation meetings,staff prepare an updated consolidated budget report and presentation for Council reflecting all budget changes approved by Committee. PURPOSE OF THE REPORT To present to Committee the 2015 Draft Business Plan and accompanying Operating and Capital Budgets. BACKGROUND The draft operating and capital budgets were prepared according to a number of principles and guidelines,which included the following key elements: 1.The overall corporate budget will be prepared on the basis of maintaining existing service le vels to the community,with cost containment and efficiencies to be priorities. 2.Initiatives which advance goals and objectives of the Town’s Strategic Plan will be highlighted,and all new capital projects will outline their linkage to the Strategic Plan. 3.Capital and Operating budgets will manage the Town’s active and passive capital infrastructure and investments in a prudent manner,with the goal to efficiently maintain their levels of serviceability for both the long and the short term. TOWN OF AURORA Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 3 Page -1 -20 - January 26,2015 -2 -Report No.CFS15-003 4.As has been done in the past,within the Operating Budget,tax rate funding support of capital projects will be consolidated together,without the detailed identification or association of any specific capital works projects.A single amount referred to as “tax cash to capital”will be identified and assessed for its impact to the overall Operating Budget and tax rate by the Committee.A detailed assessment of the proposed capital program and the funding sources for each project will be undertaken in the context of the capital budget review only. Separating the Capital Budget review from the Operating Budget review will help to streamline and focus the review process.Maintaining a relatively consistent level of capital funding from tax rate will enhance the stability of the corporate budget.Capital reserves are used to hold capital contributions until required for actual projects,allowing the capital budget total value to fluctuate year to year without year to year impact directly to the tax rate.These reserves and the stability to the tax rate that they provide is a key element of the Town’s financial strategy. Budget Development Process Planning for the 2015 budget began following final approval by Council of the 2014 Budgets.An on-line budget consultation tool was developed and promoted to the public through various methods.A separate report outlining the outcomes of this consultation is included in tonight’s agenda. Previously,Council asked that staff include clear linkages of planned and new initiatives to the Town’s approved Strategic Plan.Accordingly for 2015,each new capital project description and each departmental budget section includes these linkages. The Executive Leadership Team (ELT)worked hard to develop overarching business objectives for 2015.Each department is expected to contribute by way of undertaking or championing initiatives which will move either their department or the corporation towards attaining the goals and objectives of the Strategic Plan.Such initiatives were to be considered within the context of finalizing the departmental budgets and work plans. Each department was required to prepare a detailed account by account operating budget.They were to attribute budget increases/decreases as follows: base budget changes to reflect inflation or operating efficiencies costs or revenues related to prior commitments of Council new programs,initiatives or one-time expenses. Each department also reviewed and amended their fees and charges or other revenues where allowable and appropriate.A separate report on fees and charges updates has been presented directly to Council for adoption. Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 3 Page -2 -21 - January 26,2015 -3 -Report No.CFS15-003 Operating Budgets have been prepared by each department and have been subject to a review undertaken by our Financial Planning staff for clarification,understanding and completion.As part of these reviews the key contributing causes for newly arising tax rate pressures were flushed out and categorized as either: Decision Unit –a separate new initiative or staffing request included in budget.All financial impacts are included in the Decision Unit. Notable Pressure –a tax rate pressure of significance,but for which the corporation has little influence,such as a steep cost increase for insurance as an example. Other Tax Rate Pressure –these include all other minor increases and decreases in costs or revenues,netted together. For all identified Decision Unit Tax Rate Pressures,a micro business case has been prepared.For all identified Notable Tax Rate Pressures,a separate narrative outlining in more detail the reason(s)for the pressure is provided.Following this initial review period,each department’s respective budget is further scrutinized by the Executive Leadership Team.One key goal of both the ELT’s and the Financial Planning team’s reviews were to identify all areas of expenditure reductions,refining revenue forecasts, examining fees and charges,and any other strategies which could be used by the Town to mitigate identified key pressures. For Capital budget items,departments were to prepare detailed capital budget requests in a standard budget form for evaluation.Projects were organized into three investment type categories:Repair &Replacement (R&R)of Infrastructure,Growth &New Infrastructure,and Studies &Other Initiatives.Following that,the ELT undertook a detailed review of all proposed capital projects which included the application of the Town’s capital budget scoring tool to each Growth &New and Studies &Other capital project by consensus. COMMENTS Draft 2015 Operating Budget Upon completion of its review,the ELT has successfully reduced the town’s tax rate pressure from the forecasted 5.3%down to 4.96%,or $1,767,700 increased requirement.This amount is 0.43%,or $152,500 lower than what was originally projected in 2014 for the 2015 tax pressure. Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 3 Page -3 -22 - January 26,2015 -4 -Report No.CFS15-003 The draft operating budget is broken into two sections:Base Budget and New Items. The Base Budget reflects existing 2014 service levels and staff levels as approved in 2014.This section also includes all costs and revenues related to meeting growth needs,excluding the additional tax revenue arising from assessment base growth.A “Cash to Capital”reserve allocation from the tax levy has been included in the base 2015 budget.Minor adjustments to prior year budgets were made in order to reflect inter-departmental transfers of responsibilities and/or for the creation of separate reporting groups,if applicable.Changes arising from the Town’s strategy to reduce its reliance upon a volatile revenue source such as supplementary revenue would be captured under this category. New Items reflect any changes to service levels,all new staff requests,or any other new initiatives or significant budget impacts.Items such as the Town’s strategy to continue reducing its operational reliance on Hydro Reserve interest would fall under this category. The 2015 Draft Operating Budget –Summary by Department is outlined in Attachment 1.Fully summarized,the 2015 Draft Operating Budget is as follows: Shown in $,000's 2014 Approved 2015 Proposed Variance Fav / (Unfav) 2015 Tax Rate Equivalent 1)Base Budget: -Expenditures $53,628.5 $54,899.6 $(1,271.2)(3.57%) -Non-Taxation Revenues (18,805.8)(18,761.6)(44.1)(0.12%) -Taxation Revenues (no growth)(34,822.7)(34,822.7)--% Base Budget (Surplus)/Deficit -1,315.3 (1,315.3)(3.69%) 2)New Items Recommended -1,234.5 (1,234.5)(3.47%) -2,549.8 (2,549.8)(7.16%) Levy Growth from New Assessment -(782.1)782.1 2.20% Net (Surplus)/Deficit $-$1,767.7 $(1,767.7)(4.96%) Including the new growth assessment revenues,a 1%increase in the tax rate represents a $356,048 mitigation of the above noted Net Deficit.If no adjustments to revenues or expenditures are made by council during its reviews,a 4.96%tax rate increase is required in order to balance the 2015 Budget. Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 3 Page -4 -23 - January 26,2015 -5 -Report No.CFS15-003 Key Issues and Pressures Affecting The 2015 Budget i.In 2014,Central York Fire Services (CYFS)requirements represented 25%of the total Town tax levy.For 2015,the CYFS operating budget is not yet known;as a result,staff are presently estimating a budget increase of 3.1%,creating a direct tax rate pressure of $270,700.The CYFS budget has yet to be introduced to the Joint Council Committee (JCC)and the Town of Newmarket for its review and approval.It will be forwarded to Aurora Committee for comments once JCC has approved the budget.The budget will need to address the recommendations of a recently completed Fire Master Plan,also which has not been formally reviewed by JCC,as a Public Information Consultation has just been completed.In addition,the Town’s share of the total CYFS 2015 budget has grown from 39.95%in 2014 to 40.23%in 2015 which will have a direct impact on its share of the approved CYFS operating budget. ii.Escalating benefits and salaries costs:A 1.08%tax rate pressure arises from existing staffing and benefits costs.This base budget item includes a cost of living adjustment (COLA)of 2%effective April 1,2015 for the unionized work group as per their contract,as well as extended to all non-union staff,except for CYFS which is administered by the Town of Newmarket.The annualization of previously approved positions added in 2014 but funded in 2014 for only part year have also affected the 2015 budget. iii.The anticipated opening of the Town’s Dedicated Youth Space at the AFLC has generated new on-going operating funding requirements for the town as well as some new revenues. iv.Similar to all organizations or individuals who consume goods and services,the Town’s operational costs have been subject to inflationary pressures.The general rate of inflation for 12 months to November (latest reported)was 2.7%. Staff have used that in preparing the budget. It is important to note that the Town does not purchase the full normal basket of consumer goods in the same proportions as do families.The town purchases health care plans,commercial liability insurance (for the government sector), structural steel,concrete and granulars,and a lot of petrochemicals such as roofing,asphalt,and fuels and lubricants.In particular,the Town is experiencing inflation driven expenditure pressures in sidewalk snow removal service,energy, software licenses,and facility repair,maintenance &supply. v.The Town’s Ten Year Capital Plan and Reserve Fund Strategy endorsed by Council calls for annual direct tax increases to ensure the Town’s existing infrastructure can be properly maintained ensuring continuity of service to the community. Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 3 Page -5 -24 - January 26,2015 -6 -Report No.CFS15-003 vi.The continuation of the Town’s strategy to reduce its operational reliance on Hydro Reserve interest. The 2015 Draft Operating Budget Summary by Department can be found in Attachment 1. Attachment 2,Graphic Summary of Tax Pressures for 2015,graphically provides general information on the Base Budget increases,Previous Council Commitments,and New Items amounts.Reviewing year-over-year changes in each category helps us understand the source of tax rate increase pressures,and will assist Council in its budget deliberations in the coming weeks. Attachment 3,Corporate Summary of Tax Pressure for 2015,summarizes the increases in the 2015 Draft Budget from the 2014 Approved Budget. Key Changes and Inclusions in the 2015 OPERATING BUDGET 1.Base Budget -3.69%tax rate pressure The base budget delivers the same services at the same levels as 2014 with the same staffing.The base budget is impacted by staffing costs,economic factors, inflation,growth of volume of services and activity,and new or increased fees and other revenues.The Base Budget is not off-set by any additional tax levy which arises from the growth of the community’s assessment base from development. Staffing Costs will increase by $178,500 due to cost of living adjustment provisions,step rates for newer staff,benefit rate increases.These staffing cost increases result in a 0.50%tax rate pressure.These salary costs exclude any new items. Overall,the non-personnel costs in 2015 are anticipated to be $1,136,800 above 2014’s budget level.This results in a 3.19%tax rate pressure for 2015.This pressure is attributable to predominantly inflationary impacts on the following town expenses: a.Energy Costs (Hydro,Heating,Fleet Fuel )$278,700 b.Software Licensing &Maintenance 186,700 c.Facility Related Repair,Maintenance &Supplies 132,200 d.Insurance Fee Increases 58,300 A budgeting correction decline in recreational program revenues of $99,900 and the recognition of the full planned reduction in the Town’s overhead cost recovery from Building Services totalling $97,200 is also contributing to the non-personnel cost tax levy pressure. Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 3 Page -6 -25 - January 26,2015 -7 -Report No.CFS15-003 Combined,net of new revenues,the entire Base Budget represents a net tax rate pressure of 3.69%,with no consideration of growth revenue. Section 1 of Attachment 4 details the financial impact of the 2015 Base Budget. 2.New Items Proposed –3.47%tax rate pressure The New Items section of the budget represents new initiatives or new items to be considered for 2015. i.Annualization of Positions approved in 2014:0.58%tax rate pressure This represents the additional budget needs of new 2014 hires which were only budgeted from their mid-year start date.These costs relate to 3 Town Positions totalling $205,900. ii.New staffing needs:0.33%tax rate pressure To meet operational needs,the CAO has considered a number of staffing requests from all departments.Three permanent full time and three contract positions are requested for approval.The net 2015 part-year cost of these recommended positions is $116,500,with a further $116,500 cost pressure deferred to 2016.Attachment 5,Converted &New Positions Listing,outlines all requested positions and the fiscal impacts of each,and includes a staffing needs forecast for the period 2016 through 2018. iii.Increased Contributions to Capital:0.51%tax rate pressure For 2015,the tax levy cash to capital contribution of $4,212,200 represents an increase of $180,300 from 2014’s contribution amount of $4,031,900. These increases are necessary in order to ensure the long term viability of the Town’s assets and were incorporated into the Town’s ten year capital investment plan to be presented to the budget committee shortly.During the operating budget review,no consideration will be given to which projects this funding will be used for.All capital projects will be evaluated independent of the tax cash to capital amount. This approach which is used by many municipalities,helps to stabilize the contribution to capital infrastructure made from the levy,as well as separates the capital budget discussion from the operating budget discussion.For 2015,staff continue to recommend separating the cash to capital amount into three components,to assist in clearly separating the funding of each capital project category being Repair &Replacement,Growth or New Infrastructure, and major or recurring Studies &Other Projects. New for 2015 is the formula portion of the recently announced Ontario Community Infrastructure Funding program (OCIF).This funding represents what appears to be permanent new infrastructure funding intended specifically for the purpose of repair,restoration or rehabilitation of existing Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 3 Page -7 -26 - January 26,2015 -8 -Report No.CFS15-003 community infrastructure.For budget purposes,this must show as an Operating Revenue,and is then added to the Transfer to Reserves line as an additional increase in contributions to Capital Reserves. iv.Central York Fire Services:0.76%tax rate pressure Under the joint services agreement between Newmarket and Aurora,the operating costs of Central York Fire are shared on a proportional basis,using three factors combined:share of call volume,share of combined population, share of combined assessment values.For 2015,Aurora’s proportionate share increased from 39.95%to 40.23%of the Central York Fire operating budget approved by the Joint Council Committee (JCC).Based upon the present estimated 2015 CYFS operating budget,this share increase adds $65,910 to Aurora’s operating budget,or a 0.19%tax rate pressure. As noted above,the draft budget for CYFS has yet to be finalized, consequently,staff have included in the Town’s draft budget an estimated CYFS budget increase of 3.1%,based upon historical trends.This amount is equal to the original amount that was projected in 2014 for the 2015 tax pressure.As the CYFS budget proceeds through its process,staff will keep the Committee informed of any developments and budget changes as necessary. v.Library Board Services:0.29%tax rate pressure The Aurora Public Library Board has approved a budget funding requisition of $3,542,300,being $103,100 or 3.0%higher than 2014’s funding provided from the Aurora tax base.Representatives of the Library will make a presentation to the budget Committee as part of the budget deliberations in order to explain their request.The Town of Aurora Council does not approve how these funds are spent,but rather determines what the tax funding allocation amount for library services each year.The amount requested for 2015 is less than the amount originally projected in 2014 for 2015. vi.Further reduction in Operational Reliance on Hydro Reserve Interest: 0.28%tax pressure During the 2014 budget process,Council agreed to again work toward reducing the annual budgetary reliance on the interest earned from the Hydro Reserve Funds as a source of revenue to mitigate tax pressures in the operating budget.For 2015,it is recommended that operational reliance be reduced by a further $100,000 moving from $400,000 in 2014,to $300,000 of interest reliance. vii.Sidewalk Snow Removal Services:0.69%tax rate pressure The cost for the provision of sidewalk snow removal services has grown significantly for 2015 increasing by a total of $246,000 over the established 2014 budget.The drivers of this increase are attributable to a requirement to Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 3 Page -8 -27 - January 26,2015 -9 -Report No.CFS15-003 service an increased number of kilometers of sidewalk as well as contract cost pressures,in spite of slight service reductions as recently approved by Council. 3.Growth Tax Revenue –2.20%tax rate pressure relief During the course of 2014,new construction and other development activities have resulted in new assessment value being added to the community representing an estimated 2.20%,or $782,100 in tax revenue growth.This growth amount does not stem from the phase-in of reassessment adjustments for individual properties.This additional growth revenue reduces the combined tax pressure of the foregoing budget changes. Overall,the Draft 2015 Operating Budget presents a proposed budget which requires an additional $1,767,700 to be raised from the tax levy by way of a 4.96%tax rate increase to fund new and existing services and initiatives. 2015 Water and Wastewater Budgets Significant rate pressures continue in the Water,Wastewater and Stormwater budgets. These pressures stem mostly from the infrastructure funding and sustainability pressures being exerted by the City of Toronto,York Region and of those being experienced by the Town of Aurora.Wholesale costs for water and wastewater have increased by 10%for 2015.In addition,Town contributions to reserves in support of future infrastructure needs have been increased and operational budget reliance on reserve subsidization has been reduced further.These above noted pressures result in a combined water and wastewater rate increase of 9.7 percent being recommended by staff with 70 percent of this increase being directly attributable to regional wholesale cost increases.It is recommended that stormwater rates remain unchanged for 2015 as operating costs and reserve balances continue to remain stable.Staff will finalize the budget for presentation to Council in the coming weeks.It is the goal of staff to present these utility budgets to Council prior to the final adoption of the operating budget. 3-Year Operating Budget Outlook As part of the 2015 Operating Budget process,each department was asked to identify any items of note which are expected to have an operating impact on the 2016,2017 or 2018 budget years.Using this information,and making informed projections of assessment growth revenue,inflation,infrastructure pressures,and other budget drivers,Finance has prepared a three year outlook.W hen combined with the 2015 draft budget provides the budget committee with a complete four year operational requirement plan.A more detailed account of the Town’s four year operational requirement plan can be found in Attachment 9.The following chart outlines the Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 3 Page -9 -28 - January 26,2015 -10 -Report No.CFS15-003 expected tax rate pressures for each separate fiscal year,with the assumption that the tax pressure of the prior year was approved. Draft 2015 Capital Budgets For 2015,the capital budget continues to be segregated into the following three components in recognition of the fundamental differences in capital project funding sources thus allowing for a more focussed examination: -Repair and Replacement Infrastructure Capital -Growth and Other New Infrastructure Capital -Major Studies and Other Non-Infrastructure Projects Repair and Replacement Infrastructure Program -$13.6 million recommended for investment in existing infrastructure The Draft Repair and Replacement Capital program for 2015 represents a gross cost of $13,592,400,to be funded from various revenue sources which include R&R reserves and grant programs such as the Federal Gas Tax and the Ontario Community Infrastructure Fund (OCIF).This program includes restoration work to roads,water lines,sewer lines,storm water management systems,pavement and hardscaping, some fleet vehicle and equipment replacement,various park fixture repairs and/or replacement;as well as some town facility work.Facility and Road related projects represent the two largest components of the 2015 budget,with a consolidated requirement of $4,867,100 and $5,199,000,respectively.Management has confirmed that they have the resource capacity to deliver the proposed capital program. Management have also confirmed that these are their priority projects.Included within this program’s list of recommended capital projects are three projects that have been pre-approved by council.Attachment 6 outlines the recommended 2015 Repair and Replacement Capital program by project. Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 3 Page -10 -29 - January 26,2015 -11 -Report No.CFS15-003 Growth and Other New Infrastructure Program -$4.1 million recommended investment in new capital additions The Draft Growth &New Infrastructure Capital program represents a gross cost of $4,090,200,to be funded from various related town reserves.This capital program includes funding for the construction of new sections of sidewalk and/or illumination at multiple town locations.Also,funding is planned in support of the Town’s Community Improvement Plan and the new Queen’s Jubilee Park Accessible playground.In addition,funding has been proposed for the Wildlife Park and for the design and implementation of the promenade streetscape,among other projects.Included within this program’s list of recommended capital projects is one project that has been pre- approved by council.Attachment 7 outlines the recommended 2015 Growth and New Capital program by project. Major Studies and Other Projects -$0.8 million recommended investment in strategic studies The Draft Studies and Other program represent a gross cost of $830,000,to be funded from various related town reserves.New projects proposed for this year include the update of the Town’s Strategic Plan and Parks &Recreation Master Plan.In addition, studies are planned in relation to wastewater and storm water management;as well as for the undertaking of a baseline building condition assessment for the Town’s various facilities.Attachment 8 outlines the recommended 2015 Major Studies and Other Projects program by project. A Capital Budget Detail Binder will be distributed to members of Council at the January 26,2015 kick-off meeting.Members will want to review this detail prior to the first scheduled budget deliberation meeting to be held 9:00 a.m.Saturday,February 7th.At that meeting,Committee will review the proposed capital programs in detail.A second and third meeting on Monday,February 9th and Monday,February 23rd have been scheduled to review any remaining capital items not addressed on the 7th.If any meeting is not required,staff will commence the operating budget review on that day instead.The detailed operating budget binder is targeted for distribution on or about February 13,2015,leaving sufficient time for review prior to the first operating budget discussions. Reserve and Reserve Funds The Town’s Reserve and Reserve Funds schedule has been included as Attachment 10 for reference and discussion.While the Town has a total unaudited reserve balance of $59.2 million at the end of 2014,careful examination will reveal some areas of particular concern. Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 3 Page -11 -30 - January 26,2015 -12 -Report No.CFS15-003 Development charge (DC)reserve funds are statutory funds,to be used only for eligible growth related capital projects and/or studies as permitted by legislation and as broadly set out in the Town’s approved Developmental Charges Background Study.They must be used for the categories for which they are collected.For example,DCs collected for Fire purposes cannot be invested in recreation infrastructure. Special purpose reserves are primarily stabilization reserves for various purposes,to provide the town with an ability to absorb unusual and material financial costs which may arise,such as major WSIB claims,or to stabilize the budgets through periods of building activity downturns,or sudden increases in ongoing operating costs,such as the expansion of fire services through addition of new fire truck and crew. LINK TO STRATEGIC PLAN The review and challenge of the budget by Committee,and the association opportunities for public consultation helps to ensure that planned costs are reasonable and aligned with council and town strategic goals and priorities.The ultimate approval of the 2015 Capital and Operating Budget provides funding support and approval for all initiatives,services and operations of the Town,all of which support and advance Strategic Plan objectives.Overall,the budget leads to improving the quality of life of the community we serve. ALTERNATIVE(S)TO THE RECOMMENDATIONS 1.General Committee or Council may make any changes to the budget as deemed appropriate prior to its final approval. FINANCIAL IMPLICATIONS The 2015 Draft Operating Budget proposes a 4.96%tax rate increase on the Town portion only of the tax billing,which translates into an extra 24 cents per day,$7.20 per month,or about $86.34 per year for a home assessed at $500,000. The Region and School tax rates for 2015 have yet to be finalized.However,if it is assumed that the Region adopts a 3.80%tax increase,and the province continues its practice of zero net tax rate increases for the school portion,the net consolidated impact to the tax billing would be approximately 3.42%or $33.10 per year for each $100,000 of assessment. Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 3 Page -12 -31 - January 26,2015 -13 -Report No.CFS15-003 The 2015 Draft Capital Budget proposes a total capital program of $18,512,600.The recent six years of approved capital budget totals are outlined below for comparison. Figure 1 Approved Capital Funding by Year ($millions) CONCLUSIONS This report has summarized the proposed 2015 Operating and Capital Budgets.Eight subsequent budget review and deliberation meetings have been scheduled (see Attachment 11).All meetings are open to the public.Members of the public interested in providing input to these proceedings have been encouraged to attend as early in the process as possible,or to provide their comments by email through the Town’s website at www.Aurora.ca or by email to OurTownBudget@Aurora.ca .All constructive input related to the 2015 Operating and Capital Budgets is welcomed.Any email submission comments will be summarized and presented to Council as they are submitted.A separate report outlining the outcomes of the recent on-line budget input consultation program will be presented in the January 26th agenda. PREVIOUS REPORTS Nil 0 5 10 15 20 25 30 2009 2010 2011 2012 2013 2014 2015 Draft Special Projects "Normalized" Capital Program 6 year Avg. Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 3 Page -13 -32 - Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 3 Page -14 -33 - January 26, 2015 -14-Report No. CFS15-003 ATTACHMENTS Attachment 1 -2015 Draft Operating Budget-Summary by Department Attachment 2-Graphic Summary of Tax Pressures for 2015 Attachment 3-Corporate Summary of Tax Pressure for 2015 Attachment 4-Detail Expenditure Pressures and Revenue Changes Attachment 5-Converted and New Positions in 2015 Budget Attachment 6-Repair and Replacement Capital Investment Program Attachment 7-Growth and New Infrastructure Capital Investment Program Attachment 8-Studies and Other Capital Investment Program Attachment 9-Four Year Operating Budget Details 2015-2018 Attachment 10-Reserve and Reserve Fund Schedule-Forecast 2015 Attachment 11 -Budget Deliberation Meeting Schedule 2015 PRE-SUBMISSION REVIEW Executive Leadership Team-Thursday, January 22, 2015 Prepared by: Dan Elliott, Director of Corporate & Financial Services -Treasurer Dan Elliott, CPA, CA Director of Corporate & Financial Services -Treasurer Neil Garbe Chief Administrative Officer Town of Aurora 2015 DRAFT Operating Budget Operating Summary by Department 2014 2015 New 2015 Tax Shown in $,000's Approved Base Recommended Dollar Pressure Budget Budget Budget Change Change (adjusted)favourable /(unfavourable) Gross Expenses Council 624.6$632.6 -632.6$(8.0)$(0.02 %) Chief Administrative Office 1,894.6$1,908.3 -1,908.3$(13.8)(0.04 %) Legal &Legislative Services 2,419.3$2,573.3 -2,573.3$(154.0)(0.43 %) Elections 262.5$82.5 -82.5$180.0 0.51 % Corporate &Financial Services 2,971.6$3,211.8 3.8 3,215.6$(244.0)(0.69 %) Building &By-law Services 3,809.6$3,990.5 27.4 4,017.9$(208.3)(0.58 %) Planning &Development Services 1,998.6$2,041.4 -2,041.4$(42.8)(0.12 %) Infrastructure &Environmental Services 11,931.5$12,456.7 288.0 12,744.7$(813.1)(2.28 %) Parks &Recreation 8,064.5$8,235.6 85.3 8,320.9$(256.4)(0.72 %) Corporate Expenses 7,397.8$7,849.0 180.3 8,029.3$(631.5)(1.77 %) Central York Fire Services 8,814.6$9,085.3 -9,085.3$(270.7)(0.76 %) Funding Provided for Library Operations 3,439.2$3,542.3 -3,542.3$(103.1)(0.29 %) Gross Expenditures 53,628.5$55,609.3$584.8$56,194.1$(2,565.7)$(7.21 %) Gross Revenues Council (5.0)$(5.0)$-$(5.0)$-$- Chief Administrative Office -$--$-$-- Legal &Legislative Services (128.5)$(190.7)-$(190.7)$62.1 0.17 % Elections (180.0)$--$-$(180.0)(0.51 %) Corporate &Financial Services (119.0)$(129.0)-$(129.0)$10.0 0.03 % Building &By-law Services (2,553.2)$(2,661.9)-$(2,661.9)$108.6 0.31 % Planning &Development Services (1,577.9)$(1,510.5)-$(1,510.5)$(67.5)(0.19 %) Infrastructure &Environmental Services (1,132.3)$(1,181.9)-$(1,181.9)$49.6 0.14 % Parks &Recreation (5,553.0)$(5,393.0)(30.0)$(5,423.0)$(129.9)(0.36 %) Corporate Revenues (7,556.8)$(7,819.7)100.0$(7,719.7)$163.0 0.46 % (18,805.8)$(18,891.6)$70.0$(18,821.6)$15.9$0.04 % Taxation Base (34,822.7)(34,822.7)-(34,822.7)$- Taxation -Growth from New Assessment -(782.1)(782.1)(782.1)$782.1 2.20 % Gross Revenues (53,628.48)$(54,496.5)$(712.1)$(54,426.5)$798.0$2.24 % Net Expenditures/(Revenues) Council 619.6$627.6$-$627.6$(8.0)$(0.02 %) Chief Administrative Office 1,894.6 1,908.3 -1,908.3 (13.8)(0.04 %) Legal &Legislative Services 2,290.7 2,382.6 -2,382.6 (91.9)(0.26 %) Elections 82.5 82.5 -82.5 -- Corporate &Financial Services 2,852.6 3,082.8 3.8 3,086.6 (234.0)(0.66 %) Building &By-law Services 1,256.4 1,328.7 27.4 1,356.1 (99.7)(0.28 %) Planning &Development Services 420.7 531.0 -531.0 (110.3)(0.31 %) Infrastructure &Environmental Services 10,799.2 11,274.8 288.0 11,562.8 (763.6)(2.14 %) Parks &Recreation 2,511.6 2,842.6 55.3 2,897.9 (386.3)(1.09 %) Corporate Expenses (159.0)29.2 280.3 309.5 (468.5)(1.32 %) Central York Fire Services 8,814.6 9,085.3 -9,085.3 (270.7)(0.76 %) Funding Provided for Library Operations 3,439.2 3,542.3 -3,542.3 (103.1)(0.29 %) 34,822.7$36,717.7$654.8$37,372.5$(2,549.8)$(7.16 %) Taxation (34,822.7)$(34,822.7)$(782.1)(35,604.8)782.1$2.20 % NET -$1,895.0$(127.3)$1,767.7$(1,767.7)$(4.96 %) Attachment 1 Decision Unit Items Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 3 Page -15 -34 - Town of Aurora 2015 DRAFT Operating Budget GRAPHIC SUMMARY OF TAX PRESSURE FOR 2015 1.05% 0.79% =Total Town Share LESS:New tax revenue from tax 2.20% base growth '=Net 4.17% Tax Increase 1.63% 4.96% Future Services Provided Preparing for the By Others Attachment 2a (Base ) Running Aurora Today (Growth ) Running Aurora Today 3.69% •Aurora Combined Tax Bill Increase is 3.42%for residential properties (estimated) •Infrastructure Sustainability Funding •Long term plan to keep our Town in good condition &working well •Reducing our reliance on interest earned from Hydro Sale proceeds,while protecting the purchasing power of those proceeds. •Status-Quo Service Levels •Increased energy cost •Increased insurance,employee wage & benefit Cost •Increased software licensing &maintenance costs •Increased facility repair,maintenance Cost •See Attachment 2b for more detail •Central York Fire Services •Aurora Public Library •Annualization of positions approved in 2014 •New staffing needs •Sidewalk snow removal services •Other items •Growth from new tax assessment value being added to the community Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 3 Page -16 -35 - Town of Aurora 2015 DRAFT Operating Budget GRAPHIC SUMMARY OF BASE TAX PRESSURE FOR 2015 Facility Repair & Maintenance 0.37% Budgetted Revenue Correction Building Services Overhead reduction 0.27% Insurance Fees 0.28% =Running Aurora Today 3.69% (Base ) 0.16% 0.81% All Other Net Expenses &Revenues Attachment 2b 0.50% 0.78% Existing Employee Salaries &Benefits 0.52% Energy Software Licensing & Maintenance •Existing employee salary &benefit cost increases in relation to COLA,step rates •Combined Tax Bill Increase is 2.96%for residential properties (estimated) •Existing and new facility repair & maintenance contracts •Facility supply cost increases •Recognition of full planned reduction in the Town's overhead cost recovery from Building Services •Pressure include items such as Road & Sidewalk maintenance,waste management,snow removal,among others •Energy cost pressures in relation to Hydro,Heating and Fleet Fuel Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 3 Page -17 -36 - Attachment 3 Town of Aurora 2015 Operating Budget CORPORATE SUMMARY OF TAX PRESSURE FOR 2015 Shown in $,000's 2014 Approved 2015 Proposed Variance Fav /(Unfav) 2015 Tax Rate Equivalent 1)Base Budget: -Expenditures:53,628.5$54,899.6$(1,271.2)$(3.57%) -Non-Taxation Revenues:(18,805.8)(18,761.6)(44.1)(0.12%) -Taxation Revenues (no growth ):(34,822.7)(34,822.7)--% Base Budget Deficit -$1,315.3$(1,315.3)$(3.69%) 2)New Items Recommended:-1,234.5 (1,234.5)(3.47%) Net (Surplus)/Deficit before Growth -$2,549.8$(2,549.8)$(7.16%) 3)Levy Growth from New Assessment:-$(782.1)$782.1$2.20% -$1,767.7$(1,767.7)$(4.96%) Detailed Changes by Categories 1 and 2 can be found on Attachment #4 NET Deficit Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 3 Page -18 -37 - Town of Aurora 2015 DRAFT Operating Budget Impacts Detail of Expenditure Pressures and Revenue Changes 1.BASE BUDGET a)Full-Time and Equivalent Staffing Costs: Cost of Living Allowance and Step Increases on existing positions (144,200) Other Employee Benefits:(34,300) Total Staffing Costs (178,500)(0.50%) b)Changes to all other expenses net of other revenue: Reduced reliance on Rate Stabilization Reserve*(361,500) Supplementary Revenue Increases 325,000 Energy Cost Increases (278,700) Software Licensing &Maintenance Cost Increases (186,700) Facility Related Repair &Maintenance Contract &Supply Increases (132,200) Recreation program revenue decreases (99,900) Recognition of full adjustment to overhead cost recovery amount from Building (97,200) Road &Sidewalk Maintenance Contract &Supply Increases (48,800) Waste Management Contract &Supply Increases (38,000) Insurance Fee Increases (58,300) Snow Removal Contract Increases (19,200) Contribution to N6 Shared Waste Management Resource (10,000) Other General Operational Cost Inflationary Increases (75,700) Other Revenue Decreases (55,600) Total Other Expense (1,136,800)(3.19%) 2015 BASE OPERATING BUDGET (1,315,300)(3.69%)(1.33%) 2.NEW ITEMS RECOMMENDED: Staff Related: 2015 Annualization of Approved Postions (part year in 2014 ):(205,900) Converted and New Position Requests (3 FTEs )(1.1 to 1.6): (1.1)Plan Examiner /Inspector (1 FTE )(100%Bldg)- (1.2)Customer Service Representative (PT )(27,400) (1.3)Water &Administration Clerk (1 FTE )(90%rate,10%Tax)(3,800) (1.4)Facility Booking Administrator (PT )(19,000) (1.5)Youth Room Climbing Wall Staff (PT )(27,000) (1.6)Youth Programmer (1 FTE )(39,300)(116,500) Total Staff Related (322,400) Services Provided by Others: Central York Fire Service (CYFS): -Increase in Allocation Percentage (40.23%vs 39.95%)(65,910) -Share of CYFS Estimated 2015 Budget Increase (204,790)(270,700)(0.76%) Library Operational Funding:(103,100)(0.29%) Total Services Provided by Others (373,800)(1.05%) (2.1)Increased Contribution to Reserves for the Maintenance of the Town's Infrastructure Assets (180,300)(0.51%) (2.2)Reduction of operational reliance on Hydro Reserve Interest (100,000)(0.28%) Other New Items: (2.3)Waste Management Advertising Increase (22,000) (2.4)Sidewalk Snow Removal Services cost increase (246,000) (2.5)Road Maintenance -Crack Filling Contract Increase (20,000) (2.6)Increase in Special Event Revenues 30,000 Total Other New Items (258,000)(0.72%) 2015 PROPOSED NEW ITEMS (1,234,500)(3.47%)(1.25%) Total Net Budget Increase,before growth tax revenues (2,549,800)(7.16%) 3.GROWTH TAX REVENUE FROM NEW ASSESSMENT 782,100 2.20%0.79 % NET TAX PRESSURE RECOMMENDED FUNDING INCREASE (1,767,700)(1.79%) Attachment 4 (4.96%) (0.58%) F a v o u r a b l e /(U n F a v o u r a b l e ) percentage =tax pressure Estimated Impact to Blended Res. Tax Rate C h a n g e (0.33%) (0.91%) Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 3 Page -19 -38 - Town of Aurora 2015 DRAFT Operating Budget Impacts Converted and New Positions in 2015 Budget 2015 Budget Requests Full-Time Net Cost Complement 2015 Base Full-Time Compliment 207 FULL-Time Staffing -New Positions Water &Tax Administrative Clerk 37,648 1 Position will be funded 90%from water and is costed for 6 months (33,883) Plan Examiner /Inspector 51,238 1 Position will be funded 100%from Building Services and is costed for 6 months (51,238) Youth Programer 39,268 1 Position will be funded 100%from the Tax Levy and costed for 6 months - 128,154$(85,122)$ Net Full-Time 43,033$210 CONTRACT Staffing -Requests Customer Service Representative 27,418$ Facility Bookings Administrator 18,971 Youth Leader -Climbing Wall 27,000 73,390$-$ Net Part-Time 73,390$ Total Net 2015 Budget Requests 201,544$(85,122)$116,422$ Attachment 5a D o l l a r s Gross Cost Offsets Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 3 Page -20 -39 - Town of Aurora Three Year Proposed Converted and New Positions (2016 -2018 ) Dept.Position Title Salary &Benefits Start Date F/T or P/T CFS Telephone &Mobility Solutions Analyst 73,242.16 May 1/16 F/T BBS By-Law Officers-Uplift 2 P/T to 1 F/T 27,958.26 May 1/16 F/T BBS Customer Service Rep (Convert p/t to f/t)36,883.79 May 1/16 F/T LLS Records Management Administrator 13,137.02 Nov 1/16 F/T IES Building Operations Supervisor 51,015.66 July 1/16 F/T IES Operations Technician 52,511.50 May 1/16 F/T IES Water Operator/PCI (0%Tax Levy)-May 1/16 F/T IES Flexible Serviceperson 10,522.20 Jan 1/16 F/T PRS Flexible Serviceperson 8,334.03 Jan 1/16 F/T PRS Facility Bookings Clerk (Convert p/t to f/t)24,176.01 Apr 1/16 F/T PRS Parks Supervisor 90,169.00 Apr 1/16 F/T Total Tax Levy Impact 387,949.63 Dept.Position Title Salary &Benefits Start Date F/T or P/T CAO Webmaster &Electronic Comm.Coordinator 39,138.60 July 1/17 F/T BBS By-Law Officers-Uplift 3 P/T to 2 F/T 30,255.57 May 1/17 F/T IES Roads Operator 53,962.10 May 1/17 F/T IES Administrator,Construction Projects Uplift 50,000.00 Jun 1/17 F/T IES Supervisor Fixed &Mobile Assets 78,540.12 Apr 1/17 F/T PRS Crew Leader Arborist 58,890.00 Apr 1/17 F/T Total Tax Levy Impact 310,786.39 Dept.Position Title Salary &Benefits Start Date F/T or P/T IES Roads Operator 55,456.38 May 1/18 F/T PRS Youth Centre Facility Worker 27,576.24 May 1/18 F/T LLS Elections Coordinator 82,500.00 Jan 1/18 Contract Total Tax Levy Impact 165,532.62 2018 Attachment 5b 2016 2017 Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 3 Page -21 -40 - Attachment 6 Facilities 72133 ACC -Re-pave Lot 1,419,500 72151 52/56 Victoria Master Plan 280,000 72164 SARC -Rubber Flooring 134,600 72201 Work Station Refresh,Carpet,etc 90,000 72203 TH -Building Humidifiers 35,000 72204 Cameras -HDIP 25,000 72205 TH -Elevator Card Access 10,000 72219 22 Church St/Library -Exterior Repairs 35,000 72226 AFLC -Arena Dehumidifiers 135,000 72228 AFLC -Rink Floor 30,000 72232 Library -Exterior Concrete Re &Re 40,000 72233 Library -Horizontal Interior Drain 50,000 72235 ACC -Roof Top H &S Equipment 48,000 72236 SARC -Ice Plant,Starters,Motors etc 35,000 72238 TH -Council Chambers A/V System 65,000 72239 ACC -Elevator Cab and Mech Controller 70,000 72241 89 Mosley -Condition Assessment Report Recommendations 250,000 72242 AFLC -Roofing 2,000,000 72243 Mould Abatement 100,000 72244 Sign Board -Yonge &Orchard Hts 15,000 Facilities Sub Total 4,867,100 Fleet 34155 1/2 Tonne Pick-Up #500 30,000 34156 Ice Resurfacer Replacement #591 85,000 34189 GMC Savana #11 45,000 34190 GMC Savana #12 45,000 34191 GMC Savana #501 35,000 34194 Frt/FL80 #29 180,000 Fleet Sub-Total 420,000 Roads1 31025 Asphalt Paving -Old Bloomington Rd 25,000 31096 Recon -Bluegrass,Steeplechase et al2 1,800,000 31103 Recon -Centre St -Spruce St to Walton2 802,000 31105 Recon -Haida Dr &Trillium Dr 75,000 31107 Recon -Brookland -Yonge -Banbury 48,000 31108 Recon -Algonquin Cres &Haida Dr 100,000 31111 Recon -Catherine Ave 50,000 31112 Recon -Industrial Pkwy S -Wellington to Industry St 1,995,000 31144 Field Asset Data Wireless Devices 90,000 31147 Pavement Condition Assessment 104,000 34710 Streetlight Poles -St John's 35,000 34711 Streetlight Poles -Bayview 75,000 Roads Sub-Total 5,199,000 2015 Draft R&R Capital Investment Project Listing Project ID Project New 2015 Requests Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 3 Page -22 -41 - Parks &Recreation 73134 Parks/Trails Signage Strategy Study 157,500 73154 Playground Surface Restoration 10,000 73160 Emerald Ash Borer Management Program 235,000 73193 Parks -Bridge Assessment 50,000 73206 Playground Replacement -E Hadar Park 100,000 73268 Wildlife Park -North Dam Rehabiliation 100,000 73269 Case Woodlot Perimeter Fencing 70,000 73272 Hillary House Heritage Fencing Repair 20,000 Parks &Recreation Sub-Total 742,500 Information Technology 14047 Computer &Related Infrastructure 72,800 Information Technology Sub Total 72,800 Discretionary 12002 Accessibility Committee 125,000 Discretionary Sub Total 125,000 Rate Funded Program 41007 Decommission Sewer -Wells St PS 300,000 41009 3 Phase Electrical Power 30,000 42052 Channel Improvements -Child Drive 721,000 42053 Rehabilitation of Culvert on Yonge St2 445,000 42054 Maintenance of Culverts -Yonge/Batson 100,000 42058 Bridge Assessment 100,000 43038 Water Meter Replacement 400,000 43053 Reconnection -Bathurst/Orchard Hts 70,000 Rate Sub-Total 2,166,000 Total R &R 13,592,400 Note(s): (1)Some roads projects may contain funding from water rates. (2)Denotes capital projects that have received early council approval. Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 3 Page -23 -42 - Attachment 7 12030 Hydro-Seeding Leslie St Lands CAO 100,000 14065 Mobility Solutions CFS 30,000 13008 Meeting Mgmt Software LLS 26 75,000 14035 Records &Information Mgmt System LLS 54 200,000 72194 Water Bottle Fill Stations Facilities 30 40,000 24009 Pick-Up Truck Fleet 26 30,000 34182 Additional 2 Tonne Flatbed Truck w Plow Fleet 54 80,000 31101 Recon -Vandorf Sdrd2 IES 49 1,200,000 34522 Speed Message Board IES 12,000 34614 S/W -Murray -Kennedy -275m north IES 50 57,700 34615 S/W -Edward St -Firehall -Dunning IES 50 109,800 34621 S/W -Bayview Ave -Hartwell to St.John's IES 50 152,000 34642 S/W -Civic Square Gate IES 50 15,000 43048 St John's Sdrd -Leslie to 2C IES 62 216,700 73085 Arboretum Development P &R 43 100,000 73107 Former Kwik Kopy Trail Connection P &R 50 35,000 73147 Trail Construction as per Trail Master Plan P &R 58 150,000 73161 Site Surfacing -Stewart Burnett P &R 28 200,000 73169 Wildlife Park -Phase 1/2/3 P &R 49 200,000 73252 Queen's Diamond Jubilee Park -Accessible Playground P &R 27 387,000 73271 Hartwell Way Overpass Contribution P &R 300,000 81015 Community Improvement Plan Planning 200,000 81016 Promenade Streetscape Design & Implementation Planning 37 200,000 Total Growth and New Projects 4,090,200 Note(s): (2)Denotes capital projects that have received early council approval. Project ID Project Dept New 2015 Requests (1)Excludes three CYFS projects totalling $60,000 for which there is no decision to be made as those decisions are 2015 Draft Growth and New Capital Investment Project Listing1 Priority Score Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 3 Page -24 -43 - Attachment 8 12015 Town of Aurora Strategic Plan CAO 42 50,000 12026 Organization Structural Review CAO 29 100,000 14062 Business Continuity/IT Disaster Recovery CFS 17 25,000 14064 Contamination Investigations CFS 22 65,000 72202 Building Condition Report Facilities 10 150,000 72237 Library -LED Light Study Facilities 10 15,000 41004 Wastewater Hydraulic Model IES 22 100,000 42057 Town Wide Stream Erosion Master Plan IES 20 100,000 43040 Water Hydraulic Model IES 22 100,000 73195 Community Buildings Use Study P &R 13 50,000 73270 Parks &Rec Master Plan Review P &R 50 75,000 Total Studies and Other Projects 830,000 2015 Draft Studies and Other Capital Investment Project Listing Priority ScoreProjectIDProjectDept New 2015 Requests Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 3 Page -25 -44 - Four Year Draft Operating Budget Details (2015 -2018 ) SUMMARY BY DEPARTMENT 2014 Shown in $,000's Approved Budget (adjusted) Gross Expenses Council 624.6$632.6$(8.0)$641.7$(9.0)$652.5$(10.8)$664.2$(11.7)$ Chief Administrative Office 1,894.6$1,908.3$(13.8)1,947.0$(38.7)$2,029.2$(82.2)$2,116.7$(87.5)$ Legal &Legislative Services 2,419.3$2,573.3$(154.0)2,809.3$(236.1)$2,924.4$(115.0)$2,960.0$(35.6)$ Elections 262.5$82.5$180.0 82.5$-$82.5$-$330.4$(247.9)$ Corporate &Financial Services 2,971.6$3,215.6$(244.0)3,379.7$(164.1)$3,506.6$(126.9)$3,569.4$(62.9)$ Building &By-law Services 3,809.6$4,017.9$(208.3)4,558.2$(540.3)$4,475.8$82.4$4,444.8$31.0$ Planning &Development Services 1,998.6$2,041.4$(42.8)2,116.7$(75.3)$2,197.8$(81.2)$2,275.2$(77.3)$ Infrastructure &Environmental Services 11,931.5$12,744.7$(813.1)13,163.3$(418.6)$13,707.7$(544.3)$14,122.0$(414.3)$ Parks &Recreation 8,064.5$8,320.9$(256.4)8,864.7$(543.8)$9,140.1$(275.3)$9,364.3$(224.3)$ Corporate Expenses 7,397.8$8,029.3$(631.5)6,720.6$1,308.7$6,905.6$(185.0)$7,158.7$(253.1)$ Central York Fire Services 8,814.6$9,085.3$(270.7)9,539.3$(454.0)$10,016.0$(476.7)$10,516.5$(500.5)$ Funding Provided for Library Operations 3,439.2$3,542.3$(103.1)3,725.6$(183.3)$3,846.3$(120.7)$3,961.1$(114.8)$ Gross Expenditures 53,628.5$56,194.1$(2,565.7)$57,548.6$(1,354.5)$59,484.4$(1,935.8)$61,483.2$(1,998.7)$ Gross Revenues Council (5.0)$(5.0)$-$(5.0)$-$(5.0)$-$(5.0)$-$ Chief Administrative Office -$-$--$-$-$-$-$-$ Legal &Legislative Services (128.5)$(190.7)$62.1 (168.2)$(22.5)$(76.1)$(92.1)$(71.1)$(5.0)$ Elections (180.0)$-$(180.0)-$-$-$-$(247.5)$247.5$ Corporate &Financial Services (119.0)$(129.0)$10.0 (129.0)$-$(129.0)$-$(129.0)$-$ Building &By-law Services (2,553.2)$(2,661.9)$108.6 (3,052.0)$390.1$(2,855.0)$(197.0)$(2,749.3)$(105.7)$ Planning &Development Services (1,577.9)$(1,510.5)$(67.5)(1,594.5)$84.0$(1,449.1)$(145.5)$(1,530.8)$81.8$ Infrastructure &Environmental Services (1,132.3)$(1,181.9)$49.6 (1,214.2)$32.3$(1,182.6)$(31.6)$(1,155.7)$(26.9)$ Parks &Recreation (5,553.0)$(5,423.0)$(129.9)(5,494.5)$71.5$(5,474.5)$(20.0)$(5,450.8)$(23.7)$ Corporate Revenues (7,556.8)$(7,719.7)$163.0 (6,058.1)$(1,661.6)$(5,883.1)$(175.0)$(5,785.2)$(97.9)$ (18,805.8)$(18,821.6)$15.9$(17,715.5)$(1,106.2)$(17,054.3)$(661.1)$(17,124.5)$70.2$ Taxation Base (34,822.7)(34,822.7)$(37,372.5)$(39,833.2)$(42,430.1)$ Taxation -Growth from New Assessment -(782.1)$782.1 (891.6)$891.6 (822.5)$822.5 (747.6)$747.6 Gross Revenues (53,628.48)$(54,426.5)$798.0$(55,979.6)$(214.5)$(57,710.0)$161.4$(60,302.2)$817.8$ Net Expenditures/(Revenues) Council 619.6$627.6$(8.0)$636.7$(9.0)$647.5$(10.8)$659.2$(11.7)$ Chief Administrative Office 1,894.6 1,908.3 (13.8)1,947.0 (38.7)$2,029.2 (82.2)$2,116.7 (87.5) Legal &Legislative Services 2,290.7 2,382.6 (91.9)2,641.1 (258.5)$2,848.3 (207.1)$2,888.9 (40.6) Elections 82.5 82.5 -82.5 -$82.5 -$82.9 (0.4) Corporate &Financial Services 2,852.6 3,086.6 (234.0)3,250.7 (164.1)$3,377.6 (126.9)$3,440.4 (62.9) Building &By-law Services 1,256.4 1,356.1 (99.7)1,506.3 (150.2)$1,620.9 (114.6)$1,695.5 (74.6) Planning &Development Services 420.7 531.0 (110.3)522.2 8.8$748.8 (226.6)$744.4 4.4 Infrastructure &Environmental Services 10,799.2 11,562.8 (763.6)11,949.1 (386.4)$12,525.1 (575.9)$12,966.2 (441.2) Parks &Recreation 2,511.6 2,897.9 (386.3)3,370.2 (472.4)$3,665.6 (295.3)$3,913.5 (247.9) Corporate Expenses &Revenues (159.0)309.5 (468.5)662.4 (352.9)$1,022.5 (360.0)$1,373.4 (351.0) Central York Fire Services 8,814.6 9,085.3 (270.7)9,539.3 (454.0)$10,016.0 (476.7)$10,516.5 (500.5) Funding Provided for Library Operations 3,439.2 3,542.3 (103.1)3,725.6 (183.3)$3,846.3 (120.7)$3,961.1 (114.8) 34,822.7$37,372.5$(2,549.8)$39,833.2$(2,460.7)$42,430.1$(2,597.0)$44,358.7$(1,928.6)$ Taxation (34,822.7)$(35,604.8)782.1$(38,264.2)891.6$(40,655.7)822.5$(43,177.7)747.6$ NET -$1,767.7$(1,767.7)$1,569.0$(1,569.0)$1,774.4$(1,774.4)$1,181.0$(1,181.0)$ Tax Pressure Change 4.96%4.10%4.36%2.74% Pressure Break-down: Central York Fire Services 0.76%1.19%1.17%1.16% Aurora Public Library 0.29%0.48%0.30%0.27% Core Town Operations 3.91%2.43%2.90%1.31% Total 4.96%4.10%4.36%2.74% *Assumed Tax Revenue Growth:2.2%2.5%2.3%2.0% Dollar Change Recommend Budget Dollar Change 2017 Recommend Budget Dollar Change Recommend Budget Dollar Change Recommend Budget 2015 2016 2018 Attachment 9 Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 3 Page -26 -45 - Town of Aurora Reserve and Reserve Fund Schedule -Forecast 2015 Operating &Capital Budget Impacts Shown in $000's Budgeted Cash Inflows (+) Budgeted Cash Outflows (-) Ending Balance After Budgeted Cash Flows A.Reserves for Existing Infrastructure Infrastructure Sustainability (Repair &Replacement) Tax Rate Funded Roads &Related R &R RR1 $3,106.5 $988.0 ($1,778.3)$2,316.2 Federal Gas Tax Reserve RR2 $114.3 $1,540.5 ($1,540.5)$114.3 Facilities R &R RR3 $1,315.7 $1,212.4 ($4,370.5)($1,842.4) Fleet R &R RR4 $920.2 $411.4 ($420.0)$911.6 Parks &Rec R &R RR5 $1,229.8 $352.2 ($457.5)$1,124.5 Information Technology R &R RR6 $100.0 $84.2 ($72.8)$111.4 Discretionary R &R RR7 $18.5 $68.5 ($125.0)($37.9) Emerald Ash Borer Remediation R &R RR11 $97.7 $235.0 ($253.0)$79.7 St Max Artificial Turf RR12 $97.4 $31.5 $0.0 $128.9 Total Tax Rate Funded Reserves $7,000.2 $4,923.7 ($9,017.6)$2,906.3 Utility Rate Funded Water RR8 ($563.7)$1,500.0 ($1,031.6)($95.2) Wastewater RR9 $443.8 $600.0 ($735.9)$307.9 Stormwater RR10 $4,148.8 $1,000.0 ($1,815.9)$3,332.9 Total Utility Rate Funded Reserves $4,029.0 $3,100.0 ($3,583.4)$3,545.6 Total Infrastructure Sustainability Reserves $11,029.2 $8,023.7 ($12,601.0)$6,451.9 B.Reserves for New Infrastructure Development Charges Reserve Funds General Government By-Law 5585-14 ($1,322.5)$329.3 ($22.7)($1,015.9) Fire Services $847.6 $240.4 $0.0 $1,088.0 Parks Dev.&Fac.($5,974.3)$1,717.2 ($1,305.4)($5,562.5) Indoor Recreation ($8,820.5)$3,090.6 ($1,884.1)($7,614.0) Library $1,184.1 $658.8 ($404.5)$1,438.4 IES Admin &Fleet $3,156.6 $58.8 ($72.0)$3,143.4 Roads &Related $126.4 $5,781.5 ($1,531.3)$4,376.6 Water System ($18.9)$1,192.3 ($216.7)$956.7 Sanitary Sewer $1,930.0 $1,066.4 $0.0 $2,996.4 Total Development Charges ($8,891.6)$14,135.3 ($5,436.7)($193.0) Growth &New Capital Reserve NI1 $1,367.1 $743.2 ($1,008.2)$1,102.1 Studies &Other Capital Reserve NI2 $405.0 $117.3 ($532.5)($10.2) Dev/Sale of Municipal Lands NI3 ($1,605.3)$0.0 $0.0 ($1,605.3) Cash in Lieu of Parkland2 NI4 $14,845.9 $0.0 ($352.2)$14,493.7 Cash in Lieu of Parking NI5 $75.0 $0.0 $0.0 $75.0 Parks New Capital NI6 $586.2 $0.0 $0.0 $586.2 Total New Infrastructure Reserves $6,782.2 $14,995.8 ($7,329.6)$14,448.4 Estimated Dec.31,2014 Balance1 2015 Attachment 10 Bylaw or Schedule Reference Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 3 Page -27 -46 - C.Reserve Funds for Special Purposes Stabilization Tax Rate Stabilization S1 $1,964.8 $0.0 $0.0 $1,964.8 Election Reserve S2 $32.9 $82.5 $0.0 $115.4 WSIB S3 $1,071.5 $85.0 ($85.0)$1,071.5 Debt Deferral (internal borrowing)Library S4 ($1,520.1)$289.5 $0.0 ($1,230.6) Total Stabilization Reserves $1,549.0 $457.0 ($85.0)$1,921.0 Unearned Revenue Building Department -Bill 124 UR1 $516.7 $154.9 $0.0 $671.6 Engineering Inspections Fees UR2 $2,097.4 $0.0 ($310.9)$1,786.5 Landscape Inspection Fees UR3 $1,188.5 $0.0 ($18.4)$1,170.2 Total Uunearned Revenue Reserves $3,802.6 $154.9 ($329.3)$3,628.3 Special Purposes Accounts Trails Donation SP1 $50 $0 $0 $50.0 Green Initiatives SP2 $56.1 $20.0 $0.0 $76.1 Heritage Fund SP3 $239.2 $0.0 $0.0 $239.2 Arts &Culture SP4 $60.4 $0.0 $10.0 $70.4 Public Art SP5 $0.0 Parks &Rec Participant Sponsorship SP6 $5.5 $0.0 $0.0 $5.5 War Memorial (Cenotaph Restoration)SP7 $3.5 $0.0 $0.0 $3.5 Council Discretionary Reserve Fund By-Law 5440-12 $1,138.6 0.0 0.0 $1,138.6 Hydro Sale Investment Reserve Fund By-Law 5439-12 $34,452.7 0.0 ($300.0)$34,152.7 Total Stabilization Reserves $36,006.1 $20.0 ($290.0)$35,736.1 Total Special Purposes Reserves $41,357.8 $631.9 ($704.3)$41,285.4 TOTAL RESERVES &RESERVE FUNDS3 $59,169.2 $23,651.4 ($20,634.9)$62,185.7 D.LIBRARY MANAGED RESERVE FUNDS Library Managed R &R LIB1 $657.6 130.0$($175.0)612.6$ Library Donation &Bequests LIB2 35.1 -($115.0)($79.9) 692.7 130.0$($290.0)532.7$ Note(s): (1)Unaudited Ending Reserve Balances (2)Unbudgeted revenue from development expected to occur through-out the fiscal year (3)Excludes Library Managed Reserve Funds Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 3 Page -28 -47 - Attachment 11 Date Meeting Purpose Monday,January 26,2015 7:00pm Overview Presentation of 2015 Operating &Capital Budgets Public Consultation Capital Budget Binder Distribution Saturday,February 7,2015 DAYTIME 9:00am Public Consultation,then Review of Town's Asset Management Plan (AMP), Review of 2014 Ten Year Capital Investment Plan, Commence detailed review of 2015 Repair &Replacement,Growth &New and Studies &Other Recommended Investment Listings Monday,February 9,2015 7:00pm Public Consultation,then Continue detailed review of 2015 Repair &Replacement,Growth &New and Studies &Other Recommended Investment Listings Week of February 13,2015 Distribution of Detailed Operating Budget Binders Monday,February 23,2015 DAYTIME 9:00 a.m. Public Consultation,then Review of Key Changes &Tax Pressures Monday,March 2,2015 7:00 pm Support Provided to: Aurora Public Library Board Aurora Historical Society Aurora Cultural Board (Presentations by Each ) Monday,March 9,2015 7:00 pm Budget Committee Deliberations Continue Monday,March 23,2015 7:00 pm (Subject to Cancellation by Committee at Prior Meeting) Budget Committee Deliberations Continue Monday,March 30,2015 7:00 pm (Subject to Cancellation by Committee at Prior Meeting) Budget Committee Deliberations Continue Special Council Meeting Tuesday,April 7,2015 4:00 pm Final Council Budget Approval Any Public Input will be received at the beginning of each meeting.Delegations are encouraged to advise the Clerk's Office in advance to establish order of presentation.Once registered delegations have made their presentations,any other persons will be welcomed to make presentations,time permitting at the discretion of the Chair.OPERATINGCAPITALTown of Aurora -Budget Committee 2015 Budget Presentation &Discussion Timetable All Budget Committee meetings are open to the public.Location of all meetings will be Council Chambers. Special General Committee -2015 Budget Review Meeting Agenda Monday,January 26,2015 Item 3 Page -29 -48 -