Special General Committee Minutes

Meeting Number: 10

Tuesday, April 04, 2023 at 2:00 P.m. - 5:00 P.m.

Live streamed

Roll Call

• Mayor Frank Scarpitti
• Deputy Mayor Michael Chan
• Regional Councillor Jim Jones
• Regional Councillor Joe Li
• Regional Councillor Alan Ho
• Councillor Keith Irish
• Councillor Ritch Lau
• Councillor Reid McAlpine
• Councillor Karen Rea
• Councillor Andrew Keyes
• Councillor Amanda Collucci
• Councillor Juanita Nathan
• Councillor Isa Lee

Staff

• Andy Taylor, Chief Administrative Officer
• Trinela Cane, Commissioner, Corporate Services
• Arvin Prasad, Commissioner, Development Services
• Claudia Storto, City Solicitor and Director of Human Resources
• Bryan Frois, Chief of Staff
• Kimberley Kitteringham, City Clerk
• Sumon Acharjee, Chief Information Officer
• Adam Grant, Fire Chief
• Stephanie DiPerna, Director, Building Standards
• Ned Sirry, Acting Chief Information Officer
• Mary Creighton, Director, Recreation Services
• Hersh Tencer, Manager, Real Property
• Frank Clarizio, Director, Engineering
• Graham Seaman, Director, Sustainability & Asset Management
• Darryl Lyons, Acting Director, Planning & Urban Design
• Alex Moore, Manager of Purchasing & Accounts Payable
• Shane Manson, Senior Manager, Revenue & Property Taxation
• Giulio Cescato, Director of Panning & Urban Design
• Mark Visser, Sr Manager Strategy Innovation ＆ Investments
• Eddy Wu, Acting Director, Environmental Services
• Hristina Giantsopoulos, Election/Council & Committee Coordinator
• John Wong, Technology Support Specialist II
• Jay Pak, Sr. Manager, Financial Planning & Reporting, Financial Services

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1.

CALL TO ORDER

INDIGENOUS LAND ACKNOWLEDGEMENT

We begin today by acknowledging the traditional territories of Indigenous peoples and their commitment to stewardship of the land. We acknowledge the communities in circle. The North, West, South and Eastern directions, and Haudenosaunee, Huron- Wendat, Anishnabeg, Seneca, Chippewa, and the Mississaugas of the Credit peoples. We share the responsibility with the caretakers of this land to ensure the dish is never empty and to restore relationships that are based on peace, friendship, and trust. We are committed to reconciliation, partnership and enhanced understanding.

General Committee convened at 2:01 PM with Councillor Keith Irish presiding as Chair. 

At Item 3, 2023 Operating and Capital Budget, the Chair delegated his position to Councillor Andrew Keyes in recognition of his role as the Chair of the Budget Committee.  

Councillor Keyes assumed the role of Chair at 2:10 PM.

2.

DISCLOSURE OF PECUNIARY INTEREST

There were none disclosed.  

3.

2023 OPERATING AND CAPITAL BUDGET

The Chair, Councillor Keyes, provided opening remarks regarding the budget presentation and noted that he looks forward to its approval at the April 5, 2023 Council Meeting.  The Chair introduced Jay Pak, Senior Manager, Financial Planning and Reporting who addressed the Committee to provide an abbreviated 2023 Operating and Capital Budget presentation that provided an overview of the 2023 Primary Operating Budget, 2023-2026 Forecast, Municipal Property Tax Comparison, the Impact to Residential Property, highlights of the 2023 Capital Budget as well as the recommended tax increase for 2023.

There was a deputation made by Barry Nelson, who expressed concerns with the budget process in relation to balance sheets and the protection of City resources and their future use with respect to the recent acquisition of the Shouldice property.

The Committee thanked the Chair of the Budget Committee, Councillor Andrew Keyes and staff for their work in the preparation of the budget.  Mark Visser, Acting Treasurer and Jay Pak, Senior Manager, Financial Strategy and Investments, were recognized for their contributions and their commitment during this challenging year and in consideration of the financial impacts that may be realized with the implementation of Bill 23.  

The Mayor raised a motion to move forward with a 3% tax increase and that there be a hold placed until 2024 on the aspects that would address the financial impacts from Bill 23 in the event there are changes to the legislation and to allow the Province to complete their audit of the City where the financial impact will be demonstrated.  

There was discussion on the following in relation to the presentation:

• The mechanism in which the corporate stabilization reserve operates;
• The repayment of the temporary tax relief that was provided during the Covid-19 pandemic and the length of time remaining to defer it;
• The components that made up the infrastructure investment;
• The benefits of increasing the contingency funds; 
• Timing of the implementation of Bill 23 and the potential provisions from the Province to assist the City with financial shortfalls without impacting property taxes;
• The implications of delaying a larger property tax increase now versus in 2024; and,
• The importance of comprehensive communication to address any questions from the public and media.

The Committee consented to amend recommendation as indicated below to provide considerations for provisions related to Bill 23 in the budget process for 2024 which will begin in the coming months.  

• Moved By Mayor Frank Scarpitti
  Seconded By Councillor Isa Lee
  1. That the report dated April 4, 2023 titled, “2023 Operating and Capital Budgets” be received; and,
  2. That Council approve a 3.0% property tax rate increase to the City’s tax levy as follows:
     1. 1. 93% for Markham’s day-to-day operations; and,
        2. 60% infrastructure investment; and,
        3. 47% for the payback of the Corporate Stabilization Reserve; and,
  3. That Council give further consideration in budget 2024 for provisions related to Bill 23, More Homes Built Faster Act, 2022 as follows: 
     1. 1. 97% for salary recoveries previously funded through Development Charges; and,
        2. 03% provision for future Bill 23 impacts related to parkland, growth studies and reduced Development Charge collection impacts; and, 
  4. That Council approve the 2023 Primary Operating Budget for City services of $271,147,876, as detailed in Appendix 1; and,
  5. That Council approve the remaining 2023 Capital Budget of $164,103,400 for a total of $223,943,300 ($164,103,400 + $59,839,900 pre-approved), as per projects detailed in Appendix 2; and,
  6. That Council approve the 2023 Planning & Design Operating Budget totalling $13,235,215, as detailed in Appendix 3; and,
  7. That Council approve the 2023 Engineering Operating Budget totalling $11,130,096, as detailed in Appendix 4; and,
  8. That Council approve the 2023 Building Standards Operating Budget totalling $11,346,072, as detailed in Appendix 5; and,
  9. That Council approve the 2023 Waterworks Operating Budget totalling $141,242,580, as detailed in Appendix 6; and,
  10. That Council approve project funding for asphalt resurfacing (Project Number 23005) in the amount of $7,801,389 be changed from Life Cycle reserve to Canada Community-Building Fund (CCBF); and,
  11. That a copy of the budgets be made available to the public through the Clerk’s Department, the City website and each of the Markham Public Libraries; and,
  12. That the restated budget as detailed in Appendix 7, “Additional Financial Disclosure Requirements Pursuant to Ontario Regulation 284/09” be adopted; and,
  13. That the minutes from the Special General Committee Meeting, Budget Committee and Budget Public Consultation meetings on January 23, January 27, January 30, February 6, February 17, March 9, 2023 be received; and,
  14. That the deputation from Barry Nelson be received; and,
  15. That Staff bring forward the report “2023 Operating and Capital Budgets” at the April 5^th, 2023 Council Meeting; and further,
  16. That Staff be authorized and directed to do all things necessary to give effect to this resolution.
  Carried
• Moved By Mayor Frank Scarpitti
  Seconded By Councillor Isa Lee

  That the deputation from Barry Nelson be received.

  Carried

4.

DEPUTATIONS

There was a deputation from Barry Nelson on the 2023 Operating and Capital Budget.  Please refer to item 3 for details.

5.

COMMUNICATIONS

There were no communications.

6.

CONFIDENTIAL ITEMS

The Committee resolved into Confidential Session at 3:08 PM.

• Moved By Councillor Reid McAlpine
  Seconded By Councillor Juanita Nathan

   

  That, in accordance with Section 239 (2) of the Municipal Act, General Committee resolve into a confidential session to discuss the following matters:

   

  Carried

6.1

FINANCE AND ADMINISTRATIVE MATTERS

6.1.1

LITIGATION OR POTENTIAL LITIGATION, INCLUDING MATTERS BEFORE ADMINISTRATIVE TRIBUNALS, AFFECTING THE MUNICIPALITY OR LOCAL BOARD [Section 239 (2)(e)]

Moved by Councillor Reid McApline

Seconded by Councillor Ritch Lau

That the information update provided by staff be received.

Carried

Moved by Councillor Reid McApline

Seconded by Councillor Ritch Lau

That the Confidential Session adjourn at 3:23 PM.

Carried

7.

ADJOURNMENT

The Committee returned to Open Session at 3:24 PM.

• Moved By Councillor Juanita Nathan
  Seconded By Councillor Amanda Collucci

  The the Special General Committee Meeting adjourn at 3:25 PM.

  Carried