How the town's casino revenue is spent
A political point of view
Brian Jackson Mayor, Town of Innisfil

Mayor Brian Jackson

One of the most frequently asked questions concerning the Town of Innisfil's financial management of the Ontario Lottery and Gaming Corporation (OLG) revenue is how is the money spent?

The town receives five per cent of net winnings from the slot machines and these revenues are commonly referred to as the Alternative Revenue Source (ARS). Since signing the agreement with the OLG the town has received approximately $27 million dollars in additional revenues which may be used at the discretion of council.

A policy of how these ARS funds are to be managed was developed in February, 2002 and can be summarized as follows:

• These funds many be used for capital purposes only, not to offset operational costs except for debt retirement purposes.

• These funds may only be expended after they have been received.

• Funds need not be spent in the year received, however must be held in a separate reserve for allocation.

• A direct accounting process must be put in place to provided identification of funds received and what expenditures have been made with these funds;

• A Community Reinvestment Fund must be created.

• These funds may be applied to one time exceptional expenses approved by a resolution of council.

As a result, the ARS Reserve Fund was created to segregate the OLG funds from the town's other general revenues and provide for transparency surrounding the disposition of the funds.

The ARS policy approved by Council does not allocate the funds to subsidize the ongoing operating budget expenditures of the town.

This prudent financial decision was made in an effort to protect the town's taxpayers from the possibility of a huge tax rate increase should these funds not be received as budgeted.

If, for some reason in the future, the ARS funds are no longer received, the town would still be able to undertake its daily operations.

As outlined above and demonstrated below, Council does expend the ARS funds for the benefit of the community through the annual capital budget. For example, the ARS funds are being utilized for the following initiatives;

• About $2 million is annually funded to partially pay the long term debt costs for the Innisfil Recreational Complex and the New Town Hall;

• Maintaining the town's roadways and related infrastructure at safe and acceptable standards;

• Ensuring that the Innisfil Fire and Rescue Services have the proper vehicles and equipment to fulfill their responsibilities in protecting the community.

• Providing for the development of playgrounds, parks and other recreation amenities such as our arenas and community centres;

• Directing financial support of various community groups and benevolent causes through annual $100,000 commitments to the Community Reinvestment Fund and $58,200 in community assistance grants each year.

• Keeping our public libraries outfitted with the necessary resources to meet the needs of the community.

• Providing for planning studies to guide the future growth and redevelopment of the town.

• Ensuring that the town is keeping up with technological changes to provide staff with the tools required to provide service to the residents and also assist in the provision of information to the residents through technology on a 24 hour a day, seven day per week basis.

If questions remain concerning the ARS funds, please contact the Mayor's Office at 436-3710 or visit the town's website at www.innisfil.ca.