FIFTH MEETING OF THE

2007 BUDGET SUB-COMMITTEE

TOWN OF MARKHAM

Canada Room, Markham Civic Centre

APRIL 23, 2007

MINUTES

Budget Sub-Committee Councillor D. Horchik, Chair Regional Councillor J. Heath Regional Councillor T. Wong Councillor V. Burke Councillor E. Shapero (1:20 p.m.) Councillor J. Webster Councillor L. Kanapathi Mayor F. Scarpitti - Ex Officio Councillor J. Virgilio Councillor C. Moretti

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 F. Wong, Manager of Financial Planning D. Gadjanov, Senior Financial Analyst S. Skelcher, Senior Financial Analyst J. Kee, Committee Clerk

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

1. MINUTES OF BUDGET SUB-COMMITTEE

MEETING #4 OF APRIL 2, 2007

Moved by Regional Councillor J. Heath

Seconded by Councillor C. Moretti

That the minutes of the Budget Sub-Committee meeting of April 2, 2007 be adopted.

CARRIED

2. REVIEW PUBLIC FEEDBACK FROM BUDGET BREAKFAST

Mr. Joel Lustig, Director of Financial and Client Services, presented the list of items that had been discussed at the Budget Breakfast held on April 16, 2007. The items discussed were as follows:

• require landscape architect to certify landscaping performed by Developers
• Tree Preservation By-law to be brought forward to Committee
• concerns raised and addressed at the meeting about the Unionville BIA’s payment for baskets and barrels
• desire to see comparative financial results from prior years
• confirmation of the need for the Auditor General position
• question received about the cost of the Recreation Department re-organization
• question received on whether new development pays for development
• Boxgrove sewer project
• the need for public washrooms near the Unionville Bandstand
• snow removal standards
• clarification on plastic bags in recycling bins
• environmentally friendly tips for the Budget Breakfast booklets

Moved by Regional Councillor T. Wong

Seconded by Councillor L. Kanapathi

That the summary of the public feedback from the Budget Breakfast held on April 16, 2007 be received.

CARRIED

3. 2007 CAPITAL BUDGET

Mr. Lustig reported that the item relating to the Turf Maintenance Program (Year 1 of 5 year Phase-in), in the amount of $200,000 had not been included in the 2007 Capital Budget presentation to the Budget Breakfast. A copy of Appendix 1 - The 2007 Capital and Others Programs Budget, as revised, was presented in the amount of: $91,442,300.

4. 2007 OPERATING BUDGET

Mr. Lustig briefly reviewed the status of the 2007 Operating Budget noting that the Expenditures presented this date were divided into three sections, providing a Net Expense Increase of 9.94%:

• Personnel (Wage Settlements, Grid Movement, Ramp-ups, Phase-ins)
• Additional Staff, including Auditor General & Recreation Org. Review
• Non-Personnel, including Turf Maintenance Program

Members were advised that Revenue increases totalled 5.36% and a Shortfall/Tax Rate Increase of 4.59% had been presented at the Budget Breakfast. He noted however that staff had been requested to come back with adjustments and options this date for Committee’s consideration to reduce the 2007 Operating Budget.

5. ADJUSTMENTS AND OPTIONS TO REDUCE THE

2007 OPERATING BUDGET

Mr. Lustig reviewed the following adjustments and options proposed by staff to reduce the 2007 Operating Budget from 4.59% to 3.98%:

Adjustments:

• Deferral of Co-ordinator Business Support in Recreation Re-org
• Reduce maintenance budget for new fleet vehicles from 13 to 3

Options:

• Removal of Communities In Bloom program from Budget
• Defer Phase II of Attraction/Retention Strategy
• New Revenue Strategy Target

It was generally agreed that the two adjustments presented would be acceptable; however, some concern was expressed regarding the loss of the Communities in Bloom program, and the rationale relating to the new revenue strategy target. In addition, a suggestion to defer the appointment of an Auditor General position was raised.

Mr. Jim Sales, Commissioner of Community and Fire Services, advised that Operations staff have developed a strategy that will accomplish Town-wide results similar to the Communities in Bloom program, without the additional funding. He also provided information in support of the proposal for a revenue strategy in the amount of $200,000.

6. NEW BUSINESS

Celebrate Markham Grants - Councillor V. Burke, Chair of the Grants Sub-Committee, reported that, following further review of the financial statements of the festival organizers, the Sub-Committee is recommending that funding be increased by $1,000 for each of the six festivals held in Markham. The total increase of $6,000 was included in the proposed 2007 Operating Budget.

Cedar Grove Community Centre – Regional Councillor J. Heath raised the matter of additional funding for the Cedar Grove Community Centre.

Moved by Regional Councillor J. Heath

Seconded by Councillor J. Webster

That the grant to Cedar Grove Community Centre be increased to $5,000 for 2007.

CARRIED

7. NEXT STEPS – RECOMMENDATION TO GENERAL COMMITTEE

Moved by Mayor F. Scarpitti

Seconded by Councillor J. Webster

That the Budget Sub-Committee recommends the following to General Committee at its meeting scheduled for April 30, 2007:

That the 2007 Property Tax Rate Increase be approved in the amount of 3.98%;

And that the 2007 Operating Budget be approved in the amount of $151.4M;

And that the 2007 Capital Budget be approved in the amount of $91.4M;

And that the 2007 Waterworks Budget be approved in the amount of $50.1M;

And that the 2007 Building Services Budget be approved in the amount of $8.0M;

And further that the recommendation of General Committee be forwarded to Council for consideration at its meeting on May 8, 2007.

CARRIED

ADJOURNMENT

The fifth 2007 Budget Sub-Committee meeting adjourned at 1:50 p.m.