Economic Growth, Culture & Entrepreneurship 2020 Budget Presentation and Capital Budget Items
Stephen Chait, Director of Economic Growth, Culture & Entrepreneurship presented the 2020 Budget Director's Presentation.
Discussion
Staff provided the following responses to Committee inquires:
VentureLAB
Staff advised that the budget for VentureLAB is 1.5 - 2.0 million dollars per year. Markham's contribution is $300K. Some of Markham's funding partners include York University, Seneca College, and the National Research Council. The VentureLAB helps entrepreneurs start up their businesses and find venture capital, and it also helps promote awareness of Markham.
Budget for Business Development Missions, Programs, and Conferences
Staff advised that there is one budget for business development missions, programs, and conferences. Some of the cost of business development missions is offset by sponsorship. The budget unfavourable variance in 2018 was partially due to Rogers Home Town Hockey and the Japan Business Development Mission.
Culture Venues
Staff advised that economically sustainable communities have a vibrant culture that includes cultural venues. Many cultural facilities or events operate in a deficit or require some level of subsidy, but have a positive economic impact on the community at large. Sponsorship can help offset losses, but most large corporations are interested in sponsoring larger cultural venues.
To reduce the amount of subsidy required by the City, Markham's cultural venues now practice project based budgeting, and programs that are offered free of charge are continuously being re-evaluated to ensure they are providing the City with value.
Celebrate Markham Grant Program
Staff advised that the Celebrate Markham Grant Program is funded through another cost centre. Economic Growth, Culture and Entrepreneurship’s contribution to the program is the staff time required to administer the grant program.
Amortization of Capital Assets
Staff advised that it currently presents the budget on an accrual basis based on the provincial requirements. Staff agreed to investigate the possibility of including the amortization of capital assets for all City business units in the future budgets.
Fundraising Staff
Staff advised that both the Varley Art Gallery and the Flato Markham Theatre have staff dedicated to fundraising. The employee that assists with fundraising for the Gallery is an employee of the Varley-McKay Art Foundation of Markham. The employee that assists with fundraising for the Theatre is a City employee that has a marketing position. No City staff receive commission or bonuses for raising funds, or for any other purposes. Providing commission or bonuses is against City procedure, but is permitted by provincial legislation.
Cultural Venue Pricing
Staff advised that Markham's pricing at its cultural venues is in the top 20% for the Greater Toronto Area. The cost to rent the theatre has become too expensive for some community groups.
Investment in the Theatre
Staff suggested that the City should look at the feasibility of building a new theatre prior to investing in any major enhancement to the existing theatre.
Review of Capital Budget Items
The following feedback was provided on the Capital Budget Items listed below:
20001 - Economic Strategy
Staff advised that the expertise of a consultant is required to update the City's Economic Strategy and to engage stakeholders in the process. A nine month contract for a Senior Business Development Coordinator is required to manage the project.
20002 - Public Art Master Plan
Committee agreed to approve the funds for the Public Art Master Plan in principle, but requested that the funds be withheld until Council approves the plan. The plan will be implemented in five phases. This Capital Budget request is for phase one of five. The funds have not been allocated to specific areas of Markham.
20003 - 20005 - Museum Capital Budget Items
Committee asked for a status update on the CN railcar.
20010 - Theatre Swing Gates
Staff advised that swing gates are required at the entrances to the Theatre parking lot to manage the lot when events are being held during the day. Currently, staff control access to the parking lot when events are being held at this time. The gates will eliminate the requirement for staff to manage the parking lot. Committee requested to see the plans/ design of the gates prior to them being installed.
20007 - Courtyard Replacement
Committee suggested that consideration be given to the entire Theatre outdoor landscape when redesigning the theatre courtyard.
Staff advised that the design consultant will consider this when designing the courtyard.
20014 - McKay Accessibility Consultant
Committee requested that a staff member with expertise in the Accessibility for Ontarians with Disabilities Act, 2005 come to a future Budget Committee meeting to explain the City's responsibility in regards to making the McKay House, and other City facilities accessible. The Committee also noted the importance of providing an accessible space for the artist. However, it suggested that the space could be provided at another City facility that is accessible rather than investing in making the McKay House accessible, as it would be difficult to make the house accessible due to it being a heritage property.
Staff advised that a consultant is required to provide meaningful solutions to this matter.
Committee deferred the approval of this item to a future Budget Committee.