2017 Capital Budget 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 Town Buildings 34% 24% $9,696,800 Parks & Open Spaces $6,981,600 Road Network 24% $6,924,500
2017 Capital Budget • 6 project categories utilize the remaining 18% ($5,260,800) of the capital budget Bridges and Culverts $248,200 Storm Water Network $271,500 Vehicles & Equipment Technology $616,300 $1,837,800 Studies and Other Initiatives $897,000 Parking Lots $1,390,000
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 $2,097,300 $1,347,700 Capital Reserves Debt Reduction Federal Gas Tax Development Other Reserve (Slots) Charges
Federal Gas Tax Revenues (FGT) Over the next 5 years, $19.7M of Federal Gas Tax Revenues will be invested in our 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 Cap Guidelines 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: Pat Bayly Square Prefunded in the 2014 implementation of 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 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
Reserve Contributions by Source Budget - $14,949,300 General Levy $5,450,900 Veridian $7,028,300 $2,470,100 Slots
General Levy – Allocations to Reserves Budget - $5,450,900 $88,400 Veh./Equip. Replacement $60,000 $200,000 Roads Maintenance $387,000 General Infrastructure Mtce. $1,657,900 $738,400 Building Maintenance Strategic Initiatives $882,500 Development $1,436,700 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 Budget - $2,470,100 Veh./Equip. Replacement $123,500 Building Maintenance $370,500 $617,600 Development $370,500 $494,000 Roads Maintenance $494,000 General Infrastructure Mtce. Strategic Initiatives 100% of Veridian revenue is allocated to capital reserves
Slots – Allocations to Reserves Budget - $7,028,300 $351,400 Development $702,800 Debt Reduction $1,757,100 $702,900 Veh./Equip. Replacement $702,800 Roads Maintenance $1,757,100 $1,054,200 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
Slots Revenues Grants Program (“Grandfathered”) Agency Amount Rouge Valley Hospital Foundation $125,000 Ajax-Pickering Road Watch 5,000 Home Week 5,000 Total $135,000 IMPACT Ajax Fund & Ajax Community Fund Use Amount IMPACT Ajax Fund $101,600 Community Fund – Flow Through Grants 32,450 Community Fund – Perpetual Fund 32,450 Total $166,500
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 6.00% 5.15% 5.00% 4.64% 4.00% 3.00% 2.00% 1.00% 0.51% 0.00% 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
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