2017 Capital Budget The format of the Capital Budget is by project - - PowerPoint PPT Presentation

The format of the Capital Budget is by project categories:

Studies and Initiatives Technology Town Buildings Parking Lots Parks & Open Spaces Vehicles & Equipment Road Network Bridges and Culverts Storm Water Network

2017 Capital Budget

• The total 2017 Capital Budget is $28,863,700
• 82% ($23,602,900) of the capital budget is dedicated to

3 project categories

34% 24% 24%

Town Buildings $9,696,800 Parks & Open Spaces $6,981,600 Road Network $6,924,500

2017 Capital Budget

• 6 project categories utilize the remaining 18%

($5,260,800) of the capital budget

Vehicles & Equipment $1,837,800 Parking Lots $1,390,000 Studies and Other Initiatives $897,000 Technology $616,300 Storm Water Network $271,500 Bridges and Culverts $248,200

2017 Capital Budget

Significant 2017 Projects

2017 Budget Town Buildings: Audley Recreation Centre – Phase 2 (Total $29,774,600) $5,500,000 Ajax Community Centre Partial Roof Replacement $1,700,000 Doric Masonic Lodge Rehabilitation (Total $1,406,800) $1,195,800 Parks & Open Spaces: Pat Bayly Square / Civic Space (Total $7,908,000) $2,861,500 Paradise Park Redevelopment (Total $3,600,000) $1,350,000 Roads Network: Road Resurfacing and Reconstruction – 8 streets $2,500,000 Range Road Reconstruction $1,360,000 Conversion to LED Streetlights (Total $5,140,000) $1,265,000

2017 Capital Budget Project Funding

$15,166,700 $5,500,000 $4,752,000 $1,347,700 $2,097,300 Capital Reserves Debt Reduction Reserve (Slots) Federal Gas Tax Development Charges Other

Federal Gas Tax Revenues (FGT)

Over the next 5 years, $19.7M of Federal Gas Tax Revenues will be invested in

• ur transportation network, energy efficiencies, and stormwater initiatives

Key investments are:

Project Amount Local Road Resurfacing & Reconstruction $7.2M Streetlighting LED Conversion $4.6M LEED Certification – ARC Phase 2 $2.1M Stormwater Initiatives $1.1M

• Spending caps of 65% of annual revenues for the six main capital reserves

were set under the Financial Sustainability Plan in order to fund capital demands and still grow the reserve balances

• The spending caps have been met for all 5 years of the capital program

whereas in the 2016 capital budget, all spending caps were exceeded.

• There are 4 significant projects that were not included in the spending caps for

the following reasons:

Spending Cap Guidelines

Pat Bayly Square Prefunded in the 2014 implementation

• f the Financial Sustainability Plan

Doric Pickering Masonic Lodge Rehabilitation Grant funding opportunity Ajax Community Centre Roof Priority project that singly exceeded the annual cap Paradise Park Redevelopment Key Council and Community initiative

• Capital reserve allocations are the back bone supporting the Town’s

current robust capital program

• The Financial Sustainability Plan (FSP) established sustainable

contributions to maintain the long term health of the reserves

• Three sources of reserve contributions:
• General Levy
• Veridian Revenue
• Slots Revenue
• General Levy reserve allocations are approved as part of the Capital

Budget/LRCF process

Capital Reserve Allocations

Reserve Contributions by Source

$5,450,900 $2,470,100 $7,028,300

Budget - $14,949,300

General Levy Veridian Slots

General Levy – Allocations to Reserves

$1,657,900 $1,436,700 $882,500 $738,400 $387,000 $200,000 $88,400 $60,000

Budget - $5,450,900

Veh./Equip. Replacement Roads Maintenance General Infrastructure Mtce. Building Maintenance Strategic Initiatives Development Post Growth Election

The identified increase in the 2017 budget general levy reserve allocation was $216,300, representing 25% of forecasted assessment growth. To reflect lower than

expected assessment growth and to achieve the approved 2.25% tax rate increase, the reserve allocations have been reduced to $117,900. Further reductions may be required.

Veridian – Allocations to Reserves

$617,600 $494,000 $494,000 $370,500 $370,500 $123,500

Budget - $2,470,100

Veh./Equip. Replacement Building Maintenance Development Roads Maintenance General Infrastructure Mtce. Strategic Initiatives

100% of Veridian revenue is allocated to capital reserves

Slots – Allocations to Reserves

$1,757,100 $1,757,100 $1,054,200 $702,800 $702,900 $702,800 $351,400

Budget - $7,028,300

Development Debt Reduction Veh./Equip. Replacement Roads Maintenance General Infrastructure Mtce. Building Maintenance Strategic Initiatives

Assumes existing facility remains in Ajax for next 5 years, at current revenue levels 96% of the $7,329,800 in revenue is allocated to capital reserves

Grants Program (“Grandfathered”) IMPACT Ajax Fund & Ajax Community Fund

Agency Amount Rouge Valley Hospital Foundation $125,000 Ajax-Pickering Road Watch 5,000 Home Week 5,000 Total $135,000 Use Amount IMPACT Ajax Fund $101,600 Community Fund – Flow Through Grants 32,450 Community Fund – Perpetual Fund 32,450 Total $166,500

Slots Revenues

Slots Revenue and Property Tax

Slots revenue directly lowers property tax increases by: 1) Debt:

• Lowering amount of Long Term Debt
• Reducing Impact of Existing Debt

2) Funding of Grants Programs

• existing grant program
• IMPACT Ajax

Property Tax Increases fund by Slots Revenue

4.64% 0.51% 5.15% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Debt Funding of Grants Program Total

Since 2006, Property tax increases of 5.15% are directly funded by Slots Revenue Based on the average residential property, this is an estimated savings of $72 annually