2021 Budget City of Markham Ontario, Canada Heintzman House, Markham, Ontario GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation A w ard PRESENTED TO City of Markham Ontario For the Fiscal Year Beginning January 1, 2020 Executive Director TABLE OF CONTENTS Section Page Executive Summary 1 1. City Overview Markham Street Map 16 Markham Coat of Arms and Motto 17 Markham Council 18 Organizational Structure 19 2021 Budget Full Time Complement 20 History of Markham 22 Economic Profile 24 Financial Report Card 34 New Dwelling Units and Construction Values 35 2. Corporate Strategic Plan Strategic Plan and Initiatives – Building Markham’s Future Together 36 Goal 1 – Exceptional Services by Exceptional People 37 Goal 2 – Engaged, Diverse, Thriving and Vibrant City 39 Goal 3 – Safe, Sustainable and Complete Community 40 Goal 4 – Stewardship of Money and Resources 41 3. 2021 Budget 2021 Budgeting Process 47 2021 Budget Overview 49 2021 Operating Budget by Account 52 Relationship Between Functional Units, Major & Non-Major Funds 53 2021 Corporate-Wide Budget and Consolidated Budget by Department 55 3a. Funds Summary Summary of Funds 59 Reserves Description of Reserves 60 Continuity Schedule 62 Section Page Explanation of Changes 63 2019 to 21 Summary of Reserve and Reserve Funds 64 Trust Funds & Description 65 3b. 2021 Operating Budget Operating Budget Overview 66 Operating Budget Expenditures 70 Operating Budget Revenues 73 2021 Operating Budget Schedule - Consolidated 78 2021 Operating Budget Summary - Expenditures 79 2021 Operating Budget Summary - Revenues 80 Long Term Operating Budget Forecast 81 3c. 2021 Capital Budget Capital Budget Overview 85 2021 Capital Budget by Department and by Funding Source 87 2021 Capital Budget Other Reserves Breakdown 88 2021 Capital Induced Operating Costs / Savings 89 Long Term Capital Budget Forecast 92 2021 Capital Budget Project Listing 94 Capital Project Requests for Projects Over $1 Million 99 3d. Building Standards, Planning & Design, Engineering and Waterworks Budget Building Standards Budget 121 Planning & Design Budget 124 Engineering Budget 127 Waterworks Budget 130 4. Budget Policies and Guidelines Financial Policies Summary 133 5. Commission Overview Section Page Business Plans Introduction 135 Mayor and Council 138 Office of the Chief Administrative Officer 139 Human Resources 143 Legal Services 155 Corporate Services 164 Financial Services 168 Information Technology Services 179 Legislative Services and Communications 191 Sustainability and Asset Management 205 Development Services 218 Building Standards 224 Culture and Economic Development 235 Engineering 247 Planning and Urban Design 259 Traffic Operations 271 Community and Fire Services 272 Environmental Assets 283 Environmental Services – Waste Management and Waterworks 284 Fire and Emergency Services 296 Markham Public Library 307 Operations 322 Recreation Services 334 6. Glossary Acronyms 345 Glossary of Terms 348 7. Appendices Appendix 1 – Financial Planning and Budgeting Policy 352 Appendix 2 – Capital Budget Control Policy 363 Appendix 3 – Investment Policy 371 Section Page Appendix 4 – Development Charge Borrowing Policy 384 Appendix 5 – Investment Interest Allocation Policy 387 Appendix 6 – Reserve Policy 391 Appendix 7 – Debt Policy 395 Appendix 8 – Expenditure Control Policy 397 Appendix 9 – Tangible Capital Assets Policy 406 2021 EXECUTIVE SUMMARY The City of Markham is the 16th largest City in Canada, located in the Region of York (York Region) within the Greater Toronto Area (GTA). With a population of over 350,000 and a land area of 212 square kilometres, it is the fourth most populous community within the GTA after Toronto, Mississauga and Brampton. Founded in the 1790s, today Markham is Canada’s most diverse city and enjoys a rich heritage, outstanding community planning and services, and a vibrant local economy. Markham has received the Excellence Canada Gold Award for Organizational Quality & Healthy Workplace, and multiple heritage and environmental awards. Home to more than 10,000 companies, including over 400 corporate head offices specializing in technology, life sciences, financial services and communications, the City employs a diverse and highly skilled labour force. It has the highest concentration of Information, Communication and Technology (ICT) employers per capita in Canada. The presence of a range of multinational companies such as IBM, Aviva Insurance, GM Canada, Honda Canada, Honeywell, Huawei and Johnson & Johnson has elevated the City to becoming a sought after location reinforced by its pro-business environment, highly skilled and educated workforce and exceptional quality of life. On the international stage, the City has increased its profile from several economic alliances and frequent business missions to and from Asia, the USA and Europe with the goal of attracting global investment, as well opening doors for local businesses to help expansion. In the first quarter of 2020, the impact of the pandemic was experienced all across the globe. Markham faced a range of different challenges brought about from the rise of COVID-19, however, the main priority was, and still remains, keeping residents and employees safe. On March 17th, 2020, the City activated its Emergency Operations Centre in response to the COVID-19 pandemic. On the same day the Provincial Government declared a State of Emergency, and in response Markham announced full closure of all its facilities across the City to the public. Essential municipal services continued to operate normally and business activities also continued as normal, but via other means as the majority of City staff continued with their daily work activities working remotely. Some services were modified in order to help break the chain of transmission in the community and help protect the City’s senior and vulnerable populations. As this unprecedented situation continued to evolve, the City’s Emergency Management Team worked closely with Public Health officials to ensure public safety and provide comprehensive information updates to the Markham community. The potential negative financial impact on residents became evident soon after the start of the pandemic, and to help lessen this unexpected financial burden, the City implemented a number of tax relief measures following Council approval. These included: Waiving of late payment charges on 2020 property taxes up until the end of December 2020; Eliminating the 2020 Stormwater Fee; Maintaining the April 1st water rate (scheduled to increase April 1st, 2020); 1 Suspending the Municipal Accommodation Tax (MAT) from April 1, 2020 to December 31, 2020, to provide relief to hoteliers – the MAT relief will continue throughout the 2021 taxation year. While 2020 may have been highly challenging, by continuing to provide exemplary leadership, Markham has maintained its reputation for prudent fiscal management while continuing to maintain or enhance service levels to its residents through investment in state of the art facilities, strategic community planning, substantial infrastructure investment, and a commitment to innovative green initiatives. “Innovative” is how the City is perceived, and this has continued despite the challenges faced during the pandemic. In April 2020, the City was the first across Canada to partner with high-tech giant IBM using the artificial intelligence-driven virtual agent “IBM Watson Assistant for Citizens” to offer 24-hour customer service for residents looking for COVID- 19 information. The solution uses artificial intelligence (AI) and machine learning to enable the City of Markham to deliver reliable, consistent and accurate information conveniently to residents via online text chat and voice calls – 24 hours a day, 7 days a week. On May 28, 2020, the City became the first municipality to join the Canada-wide “ShopHERE” program to help support local businesses negatively impacted by COVID- 19. This program helps independent businesses and artists develop and launch a professional online store, at no cost to the business, with the help and support of marketing and business students. In Q3-2020, the City announced it would be partnering with popular online food ordering and delivery companies (Ritual, DoorDash and SkipTheDishes) to further support local businesses. In October 2020, the City was proud to be recognized as a Top7 Intelligent Community of 2020 by the Intelligent Community Forum (ICF). The ICF award recognizes Markham’s leadership and vision in leveraging information and communications technology to build an inclusive, prosperous and healthy community. This award evaluates and ranks communities across the globe on their progress in 6 areas which determine the competitiveness and success of a community within a digital economy setting. These indicators are Connectivity, Knowledge Workforce, Digital Inclusion, Sustainability, Engagement (Engage) and Innovation. At the forefront is the Digital Markham Strategy which defines the vision of a “Frictionless City” where services are delivered seamlessly, the community is engaged, staff have the necessary digital tools and innovation is key. At the start of 2020, Council endorsed the 2019 Integrated Leisure Master Plan (ILMP) which builds upon the outstanding achievements of the original 2010 ILMP and identifies priorities and provides direction for service delivery through to 2031 in order to meet the evolving needs of a diverse, growing community, whilst at the same time, keeping pace with leisure trends.