2018 2021 General Levy Forecast - Town of Ajax

Town of Ajax
2018 – 2021 General Levy Forecast

ajax.ca

2018 General Levy Forecast
Operating Budget Item                                                                              Budget Inc./(Dec.)

Existing Full & Part Time Staff Costs                                                                     $1,474,000
Library Grant                                                                                                  147,500
Hydro Electricity                                                                                            (140,500)
Pat Bayly Square (excludes staffing)                                                                             90,000
New Debenture – Quaker Meeting House                                                                             77,600
Infrastructure Growth and Maintenance                                                                            75,800
Other Operating Budget Expenditures/Revenues                                                                   131,200
                                                    Total Operating Budget                                $1,855,600
General Levy Funded Reserve Allocations                                                                          89,000
Forecasted Additional Full & Part Time Staff Resources                                                         241,500
                                                           Total General Levy                             $2,186,100
    Forecasted base tax rate impact before assessment growth                                                     3.64%
                                             Estimated assessment growth                                       (1.04%)
                                    Net forecasted base tax rate impact*                                         2.60%
*Excludes new/expanded programs and initiatives; subject to change as detailed budgets are finalized and submitted
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Significant Budget Impacts

Hydro Electricity Savings of $140,500
• Elimination of Provincial Portion of HST ($56,500)
• Continued investment in LED Streetlight Conversion
  ($84,000)

New/Renovated Facilities
• Pat Bayly Square
   • Opening in the Fall of 2018
   • 2018 costs, including new staff, $136,000

• Quaker Meeting House
    • Completion of renovations will require issuance of internal
        debenture
    •   Annual costs of debenture will be approximately $77,600     3

Assessment Growth - Historical

3.00%    2.71%    2.70%
                                    2.50%
2.50%
                                                      2.11%

2.00%                      1.67%

1.50%                                        1.31%
                                                                       1.04% Est
                                                               0.97%
1.00%

0.50%

0.00%
        2011     2012     2013     2014     2015     2016     2017     2018

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Council List

• Council, as in past years, have provided a number of
 ideas, suggestions and requests to inform the budget
 process, some of which are consistent with capital and
 operating budgets being considered, such as

   • Walkway lighting in the vicinity of Magill Drive and McLean
     Community Centre

   • Accessibility of trail network at road intersections

   • Counting devices used to measure the volume of trail users and
     cyclists (Ontario Municipal Commuter Cycling grant applications)
                                                                   5

Council List (con’t)

There are two Council initiatives that will be dealt
with separately from this report:
1. Litter Management in the Town’s Park System
   • Presentation at November 13, 2017 General Government
     Committee – Waste Management in Outdoor Public Spaces

2. Widening and Transfer of Rossland Road to the
   Region of Durham
   • The Road Rationalization undertaken between the Region and
     local municipalities is being updated. Staff will provide an
     update once available

                                                                    6

Tax Rate Increases

• Council approved a base tax rate increase of 1.75%
    for 2018
•   Previous reports and practice have identified significant
    expenditures that cannot be funded with the base
    increase
•   Exceptions are intended to be limited in scope and
    would generally fall into one of the following categories:
      • Legislative Changes (Federal and Provincial)
      • Opening of New Town Facilities/Buildings
      • New Services or Increases in Existing Service Levels

                                                            7

Recent and Proposed
Tax Rate Increases

     2.75%
                   2.52%
                                 2.25%
                                                   1.00%

                                                   1.75%

     2015          2016          2017       2018

 • 2018 tax rate increase includes:
    Base Budget                               1.75%
    Legislative Change – Bill 148 – Fair
      Workplaces, Better Jobs Act, 2017        1.00%
                                               2.75%
                                                           8

Legislative Change – Bill 148
Fair Workplaces,
Better Jobs Act, 2017

• The Legislation has not yet been passed, however
    there are proposed changes effective January 1, 2018
•   The Legislation has broad reaching changes however
    the minimum wage increase only impacts the Town’s
    Part Time Wage Scales
•   The 3 major impacts for the 2018 Operating Budget
    are:
      • Part time minimum hourly wage increase from $11.40 to
       $14.00
     • Ripple effect – maintaining wage differentials between part
       time job bands/scales to avoid compression
     • Equal Pay for Equal Work
                                                                     9

Legislative Change –
Bill 148 (con’t)

• The 2018 Operating Budget impact of Bill 148 has
    been limited to the 3 major impacts – there is not
    sufficient information to properly quantify and estimate
    the financial impact of other proposed changes
•   This significant legislative change cannot be funded by
    the base tax rate increase
•   The 2018 budget impact is $685,800
•   A tax rate increase of 1%, equivalent to $600,000 is
    needed to fund the impact of Bill 148. The balance of
    $85,800 will be offset through revenues and staff
    vacancies
                                                           10

2018 Operating Budget

• The progression from the General Levy Forecast to the
 submission of the 2018 Operating Budget includes:
  • Eliminating the gap between the forecasted tax rate impact
     and the approved tax rate increase
   • Identifying post forecast items, events, etc. that will affect the
     budget submission
   • Consideration and decisions on new / expanded programs
     and initiatives

• The 2018 Operating Budget will be presented at public
 meeting on February 12, 2018

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