THIRD MEETING OF THE

2007 BUDGET SUB-COMMITTEE

TOWN OF MARKHAM

Canada Room, Markham Civic Centre

FEBRUARY 19, 2007

MINUTES

Budget Sub-Committee Councillor D. Horchik, Chair Regional Councillor J. Heath Regional Councillor T. Wong (1:10 pm) Councillor V. Burke Councillor J. Virgilio (1:10 pm) Councillor J. Webster Councillor L. Kanapathi Councillor A. Chiu Deputy Mayor J. Jones – Ex Officio

Staff J. Livey, Chief Administrative Officer J. Baird, Commissioner of Development Services J. Sales, Commissioner of Community & Fire Services A. Taylor, Commissioner of Corporate Services B. Cribbett, Treasurer J. Lustig, Director of Financial and Client Services B. Roth, Director, Recreation & Culture Services C. Biss, Chief Executive Officer, Markham Public Libraries D. Taylor, Acting Director, Strategic Initiatives S. Laing, Director, Human Resources F. Wong, Manager, Financial Planning G. Taylor, Manager, Facilities A. Tang, Senior Financial Analyst D. Gadjanov, Financial Analyst S. Skelcher, Financial Analyst J. Kee, Committee Clerk

The third 2007 Budget Sub-Committee meeting convened at the hour of 1:05 p.m. with Councillor D. Horchik in the Chair.

1. REVIEW AND APPROVAL OF MINUTES OF BUDGET

SUB-COMMITTEE MEETING #2 OF FEBRUARY 5, 2007

Moved by Councillor A. Chiu

Seconded by Councillor V. Burke

That the minutes of the Budget Sub-Committee meeting of February 5, 2007 be adopted.

CARRIED

2. 2007 CAPITAL BUDGET STATUS

Mr. Joel Lustig, Director of Financial and Client Services, reviewed the status of the 2007 Capital Budget. The approved Capital Budget on February 5, 2007 (all funding sources) totaled $87,536,000; and the Operating Budget Funded Capital Remaining ($4.8M - $4.5M) totaled $286,000. He presented the list of project items not included, in the amount of $6,799,000, and those project items deferred from the February 5, 2007 Budget Sub-Committee meeting totaling $1,206,300.

3. 2007 OPERATING BUDGET STATUS

The Director of Financial and Client Services reviewed the status of the 2007 Operating Budget, both for Revenue; and Expenditures – (Personnel, Non-Personnel); and additional staff, resulting in a projected Shortfall/Tax Increase of $3.59M or 3.97%.

A high level summary of the 2007 Operating Budget was also presented providing details of Existing Staff & Services (2.89% - $2.61M); Growth & New Programs (0.08% - $0.08M); and Ramp-ups (1.0% - $0.90M).

The list of items not included in the Operating Budget was presented, namely: turf maintenance program; recreation re-organization; auditor general position; and the Councillor requests. A graph indicating Markham’s current position among other municipalities regarding 2007 property tax rate increases was briefly reviewed. It was noted that three municipalities have approved their 2007 Budgets to date: East Gwillimbury, Halton and Caledon at 2.40%, 2.50% and 2.80% respectively.

4. 2007 + THREE YEAR OPERATING FORECAST

The Director of Financial and Client Services provided a three-year operating forecast for potential tax rate increases to 2010, based on various assumptions, including: grid movement; growth of staff; fire station ramp-up, inflation, and growth related to waste, parks, roads and streetlights.

The Chair, noting that the projected tax rate increase to date is 3.97%, urged Members to consider and comment on whether this would be an acceptable percentage increase.

In response to a request by Committee for details of costings and percentage increases relating to items not included in the Operating Budget, staff provided details relating to the anticipated phased-in expenditures for the turf maintenance program; the recreation re-organization and the auditor general position.

5. RESPONSES TO COUNCILLOR REQUESTS

Members were advised that the eight-page document listing the Councillor Requests and the staff comments had been emailed directly to Councillors on Friday, February 16 for their information and review. The Chair directed that the document would be reviewed this date one page at a time, on an exception basis and requested comments from Members.

Request Item #1, Main Street Markham Central Square Feasibility Study – Issues relating to property ownership; joint venture opportunities; working with the landowners; construction and maintenance costs; sewers; striking of a small committee; and consulting services were raised.

Moved by Councillor J. Webster

Seconded by Regional Councillor J. Heath

That $15,000 be included in the 2007 Budget for the purposes of a feasibility study for the Main Street Markham Central Square development, subject to a staff report to the Development Services Committee.

CARRIED

Committee raised some concerns relating to the current Councillor Request process. It was suggested that there would be some benefit to raising major requests, such as new or expanded programs, during the year so that staff reports can be prepared in advance to determine any issues and preliminary consequences. Staff explained the current process noting that following the deadline for receipt of Councillor Requests, they are reviewed by Finance staff and then forwarded to the appropriate department for comments. These comments were then placed, verbatim, on the document presented this date.

It was suggested that Members could discuss their requests with staff in advance of the Budget process. Staff noted that the process is being reviewed and other options are being considered, however, it was pointed out that the Budget process this year had been unusual due to the 2006 Election.

Members agreed that more discussion was required on this matter, including the feasibility of establishing clear guidelines relating to the Councillor Requests, and staff was directed to place this matter on the agenda of the next Budget Sub-Committee meeting. It was also suggested that in future, the Councillor Requests be sorted by Commission.

Request Item #7 – Floral Greeting Program – Staff to prepare report for General Committee regarding funding options, including potential corporate partnerships, and the “Friends” initiative.

Request Item #8 – Snow Plowing of Local Roads – Change Policy of 7.5cm – Some concern expressed regarding current snow plowing threshold. Staff will present a workshop for all Members of Council to provide an overview of current policy for winter operations and the rational behind the current levels of service, following which, a staff report will be prepared for General Committee.

Request Item #9 – Bus Shelters on Highway 48 – Highglen and Middlefield – Members were advised that bus shelters are constructed and maintained by York Region Transit. Deputy Mayor J. Jones advised that he would raise this matter with the Region.

Request Item #10 – Graffiti Eradication – Committee expressed concern that more could be done by staff to raise awareness of the fight against graffiti in the Town. Suggestions included: the printing of flyers and sign programs (civic centre, community centres and libraries); committee of volunteers to help get word out; and establishing a “graffiti telephone number.

Moved by Regional Councillor J. Heath

Seconded by Councillor L. Kanapathi

That $2,000 be included in the 2007 Budget for the purposes of graffiti eradication, subject to a report from the Director of Corporate Communications outlining further options available that would raise resident awareness and solicit reporting of graffiti and other Town tidiness issues.

CARRIED

Request Item #11 – Street Signs – Sign streets with new green road signs – Staff reviewing sign inventory database; sign replacement strategy to be developed. Concern expressed regarding some Markham streets without signs and many fading signs. Staff will prepare a report for General Committee, before the summer recess, on the status of the Town’s sign inventory, including level of installation, maintenance, locations and challenges.

Request Item #12 – Stoplights at 9^th Line and Steeles Avenue – Concern was expressed with the delay in cost sharing negotiations between the City of Toronto, the Region of York and the Town. It was understood that warrants have been met, and following some discussion, staff was directed to prepare a recommendation for consideration of General Committee, at its next meeting, with respect to requesting the Region of York to meet with the City of Toronto as soon as possible to discuss the sharing of costs on this project.

Request Item #14 – Volunteer Community Centre Boards – Funding Increase Request - Concern expressed regarding funds allocated to satellite community centres, and the funding relating to contractual relationship with Information Markham. Commissioner of Corporate Services will provide a report on the current status between the Town and Information Markham, and also prepare a chart outlining the operating costs of each of the satellite community centres.

Request Item #15 – Freeze Recreation User Fees for Two Years – Town Policy has been to increase user fees every year in accordance with the CPI; Council resolution would be required to change policy. Rather than freezing fees, it was suggested that the Town’s fee assistance program be re-visited, and staff was directed to provide an updated version of this document to Members.

Request Item #19 – Sewer Facilities in Thornhill – Staff described the on-going rehabilitation program being carried out in Thornhill relating to the sanitary sewer system. A report will be prepared for General Committee detailing each of the projects being undertaken, and will also provide information regarding a communications plan.

Request Item #20 – Wireless in York Room – Committee expressed concern that there are no plans to provide wireless equipment in the York Room this year. Members were advised that the focus for 2007 is to improve the audio/visual needs of the Council Chamber, however, as it is understood that all meetings rooms should be accessible, staff will further investigate the York Room requirements, and also work individually with Councillor Chiu.

Request Item #22 – Animal Shelter in Markham – Committee requested staff to bring forward the matter of establishing an animal shelter in Markham. Staff described the current three-year contract with the Town of Whitby, and noted that a strategy, including fund-raising is to be developed. A report will be presented to Council either in late 2007 or early 2008 on the feasibility of a facility in Markham. A copy of the staff report presented to Council on this matter in 2006 will be forwarded to Councillor Burke.

Request Item #23 – Policy Review of Second Suites – It was agreed that such a policy review would be a major undertaking, and be referred to the upcoming strategic planning session at the end of March.

Moved by Regional Councillor J. Heath

Seconded by Councillor L. Kanapathi

That the matter of a policy review of second suites be referred for discussion to the Council Information Workshop being held March 26, 2007.

CARRIED

Request Item #25 – Gangs in Markham – Plan a “Dealing with Gangs” Summit – Concern was expressed regarding the operations of gangs in Markham, and it was suggested that a Summit be held in the fall of 2007, which would be a positive step towards this problem. Staff advised that the Town should partner with the Region of York and York Regional Police on this matter, and that the Mayor’s Youth Task Force be involved. A report will be prepared for Council with respect to the extent of the gang problem in Markham, youth programs available through the Town’s Recreation Department and potential funding available.

Request Item #26 – Growth Summit – Staff advised that a preliminary proposal has been developed, and Committee discussed exploring potential partnerships and/or cost recoveries.

Moved by Regional Councillor J. Heath

Seconded by Regional Councillor T. Wong

That $25,000 be included in the 2007 Budget for the establishment of a Growth Summit which would include stakeholders from every municipality across the Greater Toronto area.

CARRIED

Request Item #27 – Economic Development Ambassador – Committee agreed to defer this initiative until the overall Economic Development strategy has been considered. Staff will then bring forward a report to Development Services Committee.

Request Item #31 – Bury Hydro Wires in Heritage Area of Yonge Street – Cost Sharing with City of Vaughan – Committee was advised that this matter is under discussion with Viva, the Region of York, PowerStream and the City of Vaughan. Staff will prepare a report for Development Services Committee.

Request Item #33 – Markham Transportation Strategic Review – Committee was advised that this matter will be discussed during the Strategic Planning Session in March. Staff was asked to consider using the East Markham model in this review and to also consider the establishment of a committee to assist with the issues.

6. NEXT STEPS

The Chair advised that if any Members wished to make comments either on the status of the 2007 Budget or the proposed tax rate increase to forward them prior to the next meeting of the Budget Sub-Committee. The Director of Financial and Client Services advised that the following items would be brought forward to the March 5^th meeting:

• Development Fee Model
• Revenue Strategy
• Fire Station Needs Analysis

Committee suggested that the Development Fee Model and Revenue Strategy should be presented to General Committee for consideration.

7. RESPONSES TO QUESTIONS FROM BUDGET

SUB-COMMITTEE MEETING #2

Committee had before it for information, the staff responses to questions raised at the second Budget Sub-Committee meeting held on February 5, 2007.

ADJOURNMENT

The third 2007 Budget Sub-Committee meeting adjourned at 4:05 p.m.

JH/FWW