Town of Ajax 2017 Capital Budget & Long Range Capital Forecast

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1 Town of Ajax 2017 Capital Budget & Long Range Capital Forecast December 12, 2016 ARC PHASE 2 ajax.ca/budgets

2 2017 Capital Budget Capital Budget Project Categories: Studies and Initiatives Technology Town Buildings Parking Lots Vehicles & Equipment Road Network Bridges and Culverts Stormwater Network Parks & Open Spaces 2

3 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 24% Town Buildings $9,696,800 34% Parks & Open Spaces $6,981,600 24% Road Network $6,924,500 3

4 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 Technology $616,300 Vehicles & Equipment $1,837,800 Studies and Other Initiatives $897,000 Parking Lots $1,390,000 4

5 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 TOTAL $8,395,800 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 TOTAL $4,211,500 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 TOTAL $5,125,000 5

6 2017 Capital Budget Project Funding Capital Reserves $15,166,700 Debt Reduction Reserve (Slots) $5,500,000 Federal Gas Tax $4,752,000 Other $2,097,300 Development Charges $1,347,700 6

7 Federal Gas Tax Revenues (FGT) Over the next 5 years, $19.7M of FGT Revenues will be invested in our transportation network, energy efficiencies, and stormwater initiatives Key investments are: Project Local Road Resurfacing & Reconstruction Streetlighting LED Conversion LEED Certification ARC Phase 2 Stormwater Initiatives Amount $7.2M $4.6M $2.1M $1.1M 7

8 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 There are 4 significant projects that were not included in the spending caps for the following reasons: Projects Pat Bayly Square Doric Masonic Lodge Rehabilitation Ajax Community Centre Roof Paradise Park Redevelopment Explanation Prefunded in the 2014 implementation of the Financial Sustainability Plan Grant funding opportunity Single priority project that exceeded the annual cap Key Council and Community initiative 8

9 Capital Reserve Allocations The Financial Sustainability Plan (FSP) established sustainable contributions capital reserves 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 9

10 Reserve Contributions by Source Budget - $14,949,300 $7,028,300 $5,450,900 $2,470,100 General Levy Veridian Slots 10

11 General Levy Allocations to Reserves Budget - $5,450,900 $200,000 $387,000 $738,400 $882,500 $88,400 $60,000 $1,436,700 $1,657,900 Veh./Equip. Replacement Roads Maintenance General Infrastructure Mtce. Building Maintenance Strategic Initiatives Development Post Growth Election To reflect lower than expected assessment growth and to achieve the approved 2.25% tax rate increase, the increase to the reserve allocations have been reduced from $216,300 to $117,

12 Veridian Allocations to Reserves Budget - $2,470,100 $123,500 $370,500 $370,500 $494,000 $617,600 $494,000 Veh./Equip. Replacement Building Maintenance Development Roads Maintenance General Infrastructure Mtce. Strategic Initiatives 100% of Veridian revenue is allocated to capital reserves 12

13 Slots Allocations to Reserves Budget - $7,028,300 $351,400 $702,800 $702,900 $702,800 $1,054,200 $1,757,100 $1,757,100 Development Debt Reduction Veh./Equip. Replacement Roads Maintenance General Infrastructure Mtce. Building Maintenance Strategic Initiatives 96% of the $7,329,800 in revenue is allocated to capital reserves 13

14 Slots Revenue Grants Program ( Grandfathered ) Agency Amount Rouge Valley Hospital Foundation $125,000 Ajax-Pickering Road Watch 5,000 Home Week 2,500 Total $132,500 IMPACT Ajax & Ajax Community Fund Use Amount IMPACT Ajax $104,100 Community Fund Flow Through Grants 32,450 Community Fund Perpetual Fund 32,450 Total $169,000 14

15 Slots Revenue and Property Tax Slots revenue directly lowers property tax increases by: 1. Debt = 4.64% Lowering amount of Long Term Debt Reducing Impact of Existing Debt 2. Funding of Grants Programs =.51% Existing grant program IMPACT Ajax 15

16 Property Tax Increases Funded by Slots Revenue 4.64% 5.15% 0.51% 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 16

17 Town of Ajax 2017 Capital Budget & Long Range Capital Forecast December 12, 2016 Thank you ARC PHASE 2