Business Improvement Areas Operating Budget

The Economic Development Committee recommends the adoption of the reports (March 23, 1999 and April 1, 1999) from the Chief Financial Officer and Treasurer.

The Committee reports, for the information of Council, having forwarded a copy of the foregoing reports to the Budget Committee for its information.

The Economic Development Committee submits the following report (March 23, 1999) from the Chief Financial Officer and Treasurer:

Purpose:

This report brings forward the Business Improvement Area (BIA) annual budgets, which have been received and reviewed to date, for approval by Council as required by Section 220 of the Municipal Act, as amended. Council approval is required to permit the City to collect funds through the tax levy on behalf of the BIAs. Subsequent reports will bring forward BIA budgets received after this date.

Source of Funds:

No City funding is required since Business Improvement Area budgets are raised by a special levy on members.

Recommendations:

It is recommended that:

(1)the Economic Development Committee adopt and certify to City Council the 1999 expenditure requests of the following Business Improvement Areas:

(2)the Economic Development Committee adopt and certify to City Council the 1999 expenditures of the Parkdale Village, Pape Village and St. Lawrence Neighbourhood BIAs of $110,000, $36,000 and $70,000, respectively, subject to documentation being provided to the satisfaction of the Chief Financial Officer and Treasurer that the BIAs' budgets were duly approved by their Boards of Management and Membership at their annual general meetings;

(3)a copy of this report be forwarded to the Budget Committee for its information; and,

(4)the appropriate City officials be authorized and directed to take the necessary action to give effect thereto.

BIA Budget Process:

The Municipal Act requires that BIA budgets be approved by the Association's general membership and Board of Management. Membership and Board of Management meetings at which the BIA 1999 budgets were approved are set out below:

Once approved by the membership and Board of Management, BIA budgets are submitted to the BIA Office of the Economic Development, Culture and Tourism Department for processing, after which they are reviewed by the Finance Department and reported to the Economic Development Committee for recommendation to Council. Following Council approval, the funds required by each BIA are raised by a special realty tax levy on the commercial and industrial property owners within the boundaries of the Business Improvement Area. Details of each BIA budget submission, including the net 1999 levy requirements, are set out in Appendix A. Appendix B sets out the status of BIA budget submissions.

Capital Projects:

Some Business Improvement Areas participate in capital projects, such as tree lighting, streetscaping and benches, which are 50% cost-shared with the City. Funding for the BIAs' share of cost-shared projects, and other capital projects, is contained in their budgets as set out in Appendix A.

BIA Budgets:

Most BIA budgets do not reflect major changes over 1998. However, several propose significant increases in expenditures.

The proposed 50% ($20,000) increase in the Gerrard India Bazaar BIA 1999 budget was approved unanimously at their annual membership meeting held on March 2, 1999, and reflects increases in promotion and advertising costs.

The Junction Gardens BIA 1999 budget proposes an increase of 91% ($45,260) over the 1998 budget and includes an assumed $15,000 municipal grant. The Junction Gardens BIA's budget was approved unanimously by its membership at their annual membership and Board of Management meetings held on October 20, 1998. The proposed expenditure increase will allow Junction Gardens to capitalize on the burial of overhead wiring and reconstruction of Dundas Street by Toronto Hydro and the City.

The Little Italy BIA 1999 budget reflects an increase of 29% ($23,000) over its 1998 budget. This increase includes the cost of introducing a street festival, as well as the final phase of installing tree lighting. Little Italy's budget was approved by its Board of Management and general membership on October 22, 1998.

The Parkdale Village and St. Lawrence Neighbourhood BIAs' proposed 1999 budgets have been received by City staff, but have yet to be considered at their Board of Management or annual general members meetings. To facilitate the operations of these BIAs, it is recommended that the proposed Parkdale Village and St. Lawrence Neighbourhood BIA budgets be certified by the Committee to Council subject to the provision of satisfactory documentation indicating that the proposed budgets were approved at their Board of Management and annual general membership meetings.

The net levy requirements for the BIAs are included in the tables in Appendix A.

The status of the BIA budget submissions is summarized in Appendix B. Budgets received to date have been reviewed and are included in this report. BIA budgets received after this date will be brought forward in subsequent reports.

Conclusion:

The City's Business Improvement Areas (BIAs) are self financing through a special tax levy on their membership, with no City funds required for operating purposes. BIA capital projects are considered as part of the Economic Development, Culture and Tourism capital budget and are cost-shared with the BIAs on a 50/50 basis.

Council approval of the Business Improvement Area (BIA) expenditures is required pursuant to Section 220 of the Municipal Act, as amended, so the City may levy to collect funds on behalf of the BIAs.

BIA budgets not reflected in this report have not been received and will be reported on in future.

Contact Names:

Joe Borowiec, Budget Services Division, Finance Department, 397-4298

Ingrid Girdauskas, Economic Development, Culture and Tourism Department, 392-1134

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Appendix A

Bloor/Bathurst-Madison BIA Budget Summary

and

Bloor by the Park BIA Budget Summary

Bloorcourt Village

and

Bloordale

Bloor West Village

and

Bloor-Yorkville

Corso Italia

and

Danforth by the Valley

Eglinton Way

and

Gerrard India Bazaar

Greektown on the Danforth

and

Harbord Street

Junction Gardens

and

Keele-Eglinton

Kennedy Road

and

Kingsway

Lakeshore Village

and

Little Italy

Mimico Village

and

Old Cabbagetown

Pape Village

and

Parkdale Village

Roncesvalles Village

and

St. Lawrence Neighbourhood

Weston

Appendix B

A -Budget Included in this Report

NA -No budget submitted

The Economic Development Committee also submits the following report (April 1, 1999) from the Chief Financial Officer and Treasurer:

Purpose:

This report brings forward the proposed 1999 operating budget for the Upper Village BIA (York) Business Improvement Area (BIA) for Council's approval. This budget was received after submission of a report on the 1999 BIA budgets to the Committee at its meeting of March 29, 1999. Council approval of this budget is required by the Municipal Act to permit the City to collect funds on behalf of the BIA through a special tax levy.

Source of Funds:

No City funding is required since Business Improvement Area budgets are raised by a special levy on members.

Recommendations:

It is recommended that:

(1)the Economic Development Committee adopt and certify to City Council the 1999 expenditures of the Upper Village (York) BIA of $55,000, subject to documentation being provided to the satisfaction of the Chief Financial Officer and Treasurer that the BIA's budget was duly approved by its Board of Management and Membership at their annual general meeting;

(2)a copy of this report be forwarded to the Budget Committee for its information; and

(3)the appropriate City officials be authorized and directed to take the necessary action to give effect thereto.

1999 Upper Village (York) BIA Budget:

The general membership and Board of Management meetings to consider and approve the 1999 budget of the Upper Village (York) BIA have yet to be scheduled. However, the proposed budget has been submitted so that the levy may be included on the final 1999 realty tax bill to provide their members with three instalments for payment. The BIA did not have an approved budget in 1998. The Upper Village (York) BIA's proposed 1999 budget, including the net 1999 levy requirement, is set out below.

Upper Village (York)

Contact Name:

Joe Borowiec, Budget Services Division, Finance Department, 397-4298