THIRD MEETING OF THE
2009 BUDGET SUB-COMMITTEE
CANADA ROOM,
MINUTES
|
Budget
Sub-Committee: Mayor F. Scarpitti ( Deputy Mayor J. Heath Regional Councillor J. Jones Regional Councillor T. Wong Councillor V. Burke Councillor E. Shapero Councillor J. Virgilio Councillor J. Webster Councillor C. Moretti Councillor D. Horchik, Chair Councillor L. Kanapathi Councillor A. Chiu Regrets: Regional Councillor G. Landon |
Staff J. Livey, Chief Administrative Officer J. Baird, Commissioner of Development Services A. Taylor, Commissioner of Corporate Services B. Librecz, Commissioner of Community and Fire Services S. Laing, Director, Human Resources J. Lustig, Director of Financial and Client Services D. Taylor, Acting Director, Strategic Initiatives S. Tam, Manager, Business Planning and Innovation A. Tang, Manager, Financial Planning J. Kee, Committee Clerk |
The Third 2009 Budget
Sub-Committee meeting convened at the hour of
1. PURPOSE
OF THIS MEETING
The Chair explained that staff has prepared a list of options, both
plausible and problematic, to reduce the Operating Budget Shortfall, and the
purpose of the meeting this date was for Committee to discuss the list and give
staff some direction on these options.
Members were asked to listen to all of the presentation before
discussing items individually.
Mr. John Livey, Chief Administrative Officer, advised that staff were
only recommending a few of the items, as some have many implications and
consequences.
2. MINUTES OF BUDGET SUB-COMMITTEE
MEETING HELD
Moved by Councillor J. Webster
Seconded by Councillor C. Moretti
That the minutes of the Second Budget Sub-Committee meeting held
CARRIED
3. STATUS OF THE 2009 OPERATING BUDGET SHORTFALL
Mr. Joel Lustig, Director of
Financial and Client Services, distributed a handout of the staff presentation
providing details of the current status of the 2009 Operating Budget Shortfall.
Members were
advised that the tax rate increase had originally been 6.68%, however, after
the inclusion of the E3 initiatives and the 10% Non-growth portion of Planning
Studies funded from Development Fees, the revised shortfall is now $3.79M, or a
tax rate increase of 3.69%.
4. OPTIONS TO REDUCE THE OPERATING BUDGET SHORTFALL
The Director of Financial and Client Services reviewed the options, with estimated $ amounts, which would reduce the Operating Budget shortfall, in three categories: revenue enhancements; service level reductions; and budget policies and procedures modifications. The options included those being plausible and those that were problematic and not recommended.
Staff also provided the following information regarding tax rate increases;
- Budget shortfall currently at $3,790K, or tax rate increase of 3.69%
- For 0% tax rate increase, requires a $3,790K reduction in the operating budget shortfall
- For 1% tax rate increase generates $1,026K leaving a $2,764K operating budget shortfall
- For 2% tax rate increase generates $2,052K leaving a $1,738K operating budget shortfall
The Chair directed Members to the beginning of the list of options and asked that each option be dealt with individually. It was noted that the options had been put forward by staff in consultation with the Commissioners and Chief Administrative Officer during the last few weeks, and Directors have been made aware of the proposals.
After consideration of the first few options, Committee expressed concern regarding “nickel and diming”, and following some deliberation, the Members agreed that the “big ticket items” (those over $125K) would be discussed first.
OPTIONS TO REDUCE THE OPERATING BUDGET SHORTFALL -
REVENUE ENHANCEMENTS
INCLUDED:
E3 Revenue Enhancements - $975 – previously included
PLAUSIBLE:
Earlier Tax Installment Dates from 3rd week to 1st week of the month for the last three installments of 2009 (in addition to the $250K included – annualized $600K) - $50K- Staff will investigate several other options, including the feasibility of payments on a monthly basis, administrative fees and interest charges.
Moved by Regional Councillor J. Jones, Seconded by Councillor E. Shapero
That earlier tax installment dates, from 3rd week to 1st week of the month for the last three installments of 2009, be approved.
CARRIED
Increase Library Overdue Fines (from $0.25/item/day to $0.30/item/day) - $30K – Staff was requested to provide the date of the last increase to Members of Committee.
Moved by Mayor F. Scarpitti, Seconded by Councillor J. Webster
That the Markham Public Library Board be requested to increase their library overdue fines from $0.25/item/day to $0.30/item/day.
CARRIED
Align Milne Park Rental and Parking Fees to other TRCA conservation parks - $40K – Staff was requested to provide costs related to staff being on-site versus no staff on site; the percentage of outside groups using the park; and to provide more details regarding this option.
Moved by Councillor C. Moretti, Seconded by Regional Councillor J. Jones
That this matter be referred back to staff for additional information, including impacts and implications, and report back to the Budget Sub-Committee.
CARRIED
Exterior Naming
Rights (Theatre, Community Centres,
Moved by Mayor F. Scarpitti, Seconded by Regional Councillor T. Wong
That the Exterior Naming Rights proposal be approved in principle, (not to be included in the 2009 Operating Budget until Council approval of a future report) and that staff be requested to report back with additional information.
CARRIED
Increase Parking Fines – increase from $35 to $40 - $125K (increase by $10 = $225K, $15 = $300K) – Staff was requested to investigate the inclusion of fines in other areas as well
Moved by Mayor F. Scarpitti, Seconded by Councillor E. Shapero
That the $35 parking ticket fee be increased to $40, and that staff be requested to investigate increasing other parking violations, including the impact of necessary enforcement, and report back.
CARRIED
Eliminate the Contribution of $500 from New Tax Assessment to capital program funded from the merger incremental PowerStream dividends - $500K –
Moved by Mayor F. Scarpitti, Seconded by Councillor J. Virgilio
That the contribution of $500 be eliminated from new tax assessment to capital program funded from the merger incremental PowerStream dividends, and that this matter be reviewed annually.
CARRIED
PROBLEMATIC & NOT RECOMMENDED:
Waste Collection Fee – TBD – Members generally agreed that this option would be problematic.
Moved by Councillor J. Webster, Seconded by Deputy Mayor J. Heath
That the Waste Collection Fee option not be considered.
CARRIED
City of
a)
Red Light Camera – It was noted that the implementation of red light cameras at
intersections would be beneficial. Staff
noted that as this would be a decision of the
Moved by Councillor J. Webster, Seconded by Regional Councillor T. Wong
That staff be requested to investigate the matter of red light cameras at intersections matter further, including the position of York Regional Police, and report back to Committee.
CARRIED
b)
Land Transfer Tax
Moved by Councillor C. Moretti, Seconded by Councillor A. Chiu
That the Land Transfer Tax option not be considered.
CARRIED
c) Vehicle Ownership Tax – It was generally agreed that this matter should be reviewed for potential revenue, but there was no urgency at this time.
Moved by Councillor E. Shapero, Seconded by Councillor V. Burke
That staff be requested to report back on the possible
implementation of Vehicle Ownership Tax in the Town of
CARRIED
Allocate Additional PowerStream Dividends to Operating – TBD – There was considerable discussion regarding this option, and it was agreed that this is not good practice, and that the matter be deferred. Staff was requested to provide a presentation to a future meeting of the Budget Sub-Committee providing details on the allocation of dividends from PowerStream, and the status of reserves.
OPTIONS TO REDUCE THE OPERATING BUDGET SHORTFALL -
SERVICE LEVEL REDUCTIONS
PLAUSIBLE:
Reduce Road Maintenance in the areas of asphalt repairs, pavement marking, traffic signals, catch basin cleaning and sign maintenance – 500 less work orders completed (50% reduction in the current practice for additional growth) - $135K – Staff advised that staff would undertake a detailed mapping and document service levels in these areas, however, Committee expressed concern regarding a reduction in service levels.
In response to a concern that some residents are putting leaves from their properties on the roads, causing catch basin issues, staff was requested to provide education and information to the public in future newsletters and flyers, including the Waste Management publication.
Moved by Councillor A. Chiu, Seconded by Regional Councillor J. Jones
That staff be directed to reduce Road Maintenance.
MOTION LOST
Reduce Parks Maintenance in the areas of turf and streetscape maintenance – standards reduced (50% reduction in the current practice for additional growth) - $125K – Staff noted that a detailed service plan, with pricing models, is being undertaken to review the current practices to provide the service more efficiently, rather than reducing the service. The following suggestions were put forward for consideration: outsourcing of service; new parks to be designed to require less maintenance; a full operational grow house; and the purchase of land in greenbelt to grow trees rather than purchasing grown trees. Staff was also requested to promote the “Adopt a Park” program.
Moved by Councillor L. Kanapathi, Seconded by Councillor E. Shapero
That the option to reduce Parks Maintenance in the areas of turf and streetscape maintenance not be considered at this time; and
That staff be directed to implement
appropriate parks maintenance reductions at the
That staff report back with the results of the detailed service plan, and also provide a preliminary assessment regarding the further suggestions raised this date, including contracting out.
CARRIED
PROBLEMATIC & NOT RECOMMENDED:
Closure of
Moved by Councillor V. Burke, Seconded by Councillor E. Shapero
That the Closure of Thornhill Village Library option not be considered.
CARRIED
Baskets & Barrels Program – Eliminate entire beautification program and reinstitute cost recovery strategy if requested - $230K – Committee discussed the issue of cost recovery with respect to the local BIA’s, and staff advised that Council had previously directed that a draft policy be prepared relating to this matter, and a report will come forward in early 2009.
Some concern was expressed with respect to the
ramifications of reducing the beautification programs on the Main Streets in
Unionville and Markham. In addition,
concern was expressed regarding the situation in
Moved by Deputy Mayor J. Heath, Seconded by Councillor J. Webster
That the entire beautification program be reduced by fifty percent (50%) across the Town, reducing the allocation to $115K, and
That each area currently serviced be provided with the same service level, and
That staff be requested to come back with options on how the BIA’s can be involved in the program in the future.
CARRIED
Sidewalk Winter Maintenance – requires property owners to maintain sidewalks fronting and adjacent to their homes and businesses (Nov & Dec 2009 impact) (annualized $690K) - $173K – It was generally agreed that this option would not be considered.
Moved by Councillor A. Chiu, Seconded by Councillor J. Virgilio
That the option requiring owners to provide their own sidewalk winter maintenance not be considered.
CARRIED
Delay the Opening of the Cathedral Fire Station by 3 months (results in $500K transfer to the ramp-up reserve) – Staff advised that because the Town has “ramp-ups”, delaying the opening of the Cathedral Fire Station from January 2010 to April 2010 would result in an additional $500K transfer to the ramp-up reserve. Concern was expressed regarding the reduction of service to the residents if this delay is approved.
Moved by Regional Councillor J. Jones, Seconded by Councillor J. Virgilio that the opening of the Cathedral Fire Station be delayed by 3 months.
CARRIED
Defer the Opening of the
Moved by Regional Councillor J. Jones, Seconded by Councillor J. Virgilio
That the opening of the East Markham Community Centre be deferred by 1 year, from 2012 to 2013.
CARRIED
Closure of the
Moved by Councillor J. Virgilio, Seconded by Councillor E. Shapero
That the
CARRIED
Note: Following
further discussion, Committee agreed that the Markham Theatre and the
Close and/or Sell Satellite Community Centres and/or Under-utilized Assets; Examples could include: Rouge River Community Centre, Buttonville Woman’s Institute, Unionville Train Station, Warden House, Stiver Mill, Box Grove Community Centre, etc.
Moved by Councillor J. Virgilio, Seconded by Councillor E. Shapero
That the option to close or sell satellite community centres and/or under-utilized assets not be considered.
CARRIED
Eliminate Recreation Programming Subsidy for Seniors Services - $200K
Moved by Councillor A. Chiu, Seconded by Councillor E. Shapero
That the option to eliminate recreation programming subsidy for senior’s services not be considered.
CARRIED
Discontinue Aquatics Program at Thornlea Pool and Close Thornlea Pool - $300K – Concern was expressed regarding the closing of the only pool in Thornhill, and it was generally agreed that this matter be deferred. Staff was directed to prepare a report on pool facilities across the Town, in context with the Recreation Master Plan.
Moved by Councillor E. Shapero, Seconded by Councillor V. Burke
That the matter of discontinuing the aquatics program at Thornlea Pool and closing Thornlea Pool be deferred, and
That staff be requested to prepare a report on pool facilities across the Town, in context with the Recreation Master Plan, including the pools at: Centennial, Angus Glen, Milliken, and Thornlea.
CARRIED
5.
NEXT
STEPS
The Director of
Financial and Client Services advised that more meetings of the Budget
Sub-Committee will have to be scheduled so that the remainder of the options
can be discussed. In addition, more
discussion is required regarding the Capital Budget review.
Committee
agreed to schedule an additional meeting of the Budget Sub-Committee on Monday,
December 1st. The
Committee Clerk will advise all members of the time and location.
ADJOURNMENT
Moved by Councillor J. Virgilio
Seconded by Councillor J. Webster
That the Third 2009 Budget Sub-Committee
meeting adjourn. (
CARRIED