January 5, 2000

To: Economic Development and Parks Committee

From: W. A. Liczyk, Chief Financial Officer and Treasurer

Subject: 2000 Budgets - Business Improvement Areas

Purpose:

This report brings forward the Business Improvement Area (BIA) annual operating 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.

Financial Implications and Impact Statement:

No City funding is required since BIAs fund their operating budgets by raising a special levy on their members.

Recommendations:

It is recommended that:

1. the Economic Development and Parks Committee adopt and certify to City Council the 2000 expenditure requests of the following Business Improvement Areas:

Business Improvement Area 2000 Budget Request

($)

Bloorcourt Village 57,500

Bloor West Village 247,908

Bloor-Yorkville 1,100,000

Corso Italia 160,000

Eglinton Way 153,820

Elm Street 36,731

Harbord Street 26,500

Junction Gardens 250,200

Kennedy Road 234,401

Kingsway 206,100

Lakeshore Village 40,650

Mimico Village 11,441

Old Cabbagetown 180,300

Queen/Broadview Village 75,000

Roncesvalles Village 108,555

Upper Village (Toronto) 162,000

Weston 144,549

York-Eglinton 37,110

2. a copy of this report be forwarded to the Policy and Finance Committee for its information;

3. authority be granted for the introduction of the necessary bill in Council; and,

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

Background:

BIA Operating Budget Process:

The Municipal Act requires that BIA operating budgets be approved by Council. General membership and Board of Management meetings at which the BIA 2000 budgets were approved are set out below:

Approved by Approved by

Board of Management Membership

Bloorcourt Village October 27, 1999 October 27, 1999

Bloor West Village October 5, 1999 October 20, 1999

Bloor-Yorkville August 26, 1999 October 18, 1999

Corso Italia October 12, 1999 November 23, 1999

Eglinton Way October 13, 1999 November 3, 1999

Elm Street November 30, 1999 November 30, 1999

Harbord Street November 29, 1999 November 29, 1999

Junction Gardens November 8, 1999 November 24, 1999

Kennedy Road October 13, 1999 November 23, 1999

Kingsway October 6, 1999 November 4, 1999

Lakeshore Village November 3, 1999 November 3, 1999

Mimico Village November 10, 1999 November 10, 1999

Old Cabbagetown November 16, 1999 November 24, 1999

Queen/Broadview Village October 5, 1999 October 25, 1999

Roncesvalles Village October 19, 1999 November 25, 1999

Upper Village (Toronto) September 15, 1999 October 13, 1999

Weston October 21, 1999 November 15, 1999

York-Eglinton November 1, 1999 November 30, 1999

Once approved by the general membership and Board of Management, BIA budgets are submitted to the Finance Department for review and processing, after which they are reported to the Economic Development and Parks 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 2000 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 capital programs, combining their share of cost-shared projects and other capital projects funded 100% by the BIAs, is identified in their budgets as set out in Appendix A.

The City's share of this capital funding is contained in the Economic Development BIA Streetscape Improvement Program for which $2.073 million was recommended by the Budget Advisory Committee at its meeting held on December 9 and 10, 1999.

Comments:

BIA Budgets:

Complete 2000 BIA operating 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. Summaries of the BIA budgets, including their net levy requirements, are in Appendix A. The status of BIA budget submissions is summarized in Appendix B.

Most BIA 2000 budgets do not reflect major changes over 1999. However, some propose significant increases in expenditures.

The Queen/Broadview Village BIA proposes a $75,000 budget for 2000; the last budget Queen/Broadview BIA submitted was in 1998 for $39,000. Queen/Broadview's 2000 budget is intended to fund capital improvements and allow repayment to the City of advanced funding for 1999. Queen/Broadview's 2000 budget was approved by its Board of Management on October 5, 1999 and by its membership at an annual meeting held on October 25, 1999.

The Kingsway BIA proposes a $75,100 (57.3%) increase over the 1999 BIA budget approved by Council. This increased levy is to fund $21,000 in increased promotional expenditures and implementation of the first phase of a five-year, $569,000 capital program featuring: reconstruction of the Bloor Street median ($180,000); street lighting ($144,000); intersection improvements at Willingdon Gardens and Royal York Road ($25,000); banners ($20,000), and new trees and related infrastructure ($200,000). Kingsway's promotional plans include building on the success of this year's "Taste of the Kingsway" festival to include the closure of Bloor Street. The BIA's 2000 budget was approved by its Board of Management on October 6, 1999 and by its membership at a general meeting held on November 4, 1999.

The Junction Gardens BIA 2000 budget proposes a $120,940 (93.6%) increase over the 1999 budget approved by Council. The increased expenditure reflects the hiring of a full-time staff person, continued investment in the capital program featuring streetlighting and increased promotional activities. The Junction Gardens BIAs 2000 budget was approved by its Board of Management on November 8, 1999 and by its membership at their annual membership meeting held on November 24, 1999.

It should be noted that the Old Cabbagetown BIA exceeded its 1999 budgeted expenditures and revenues due to the Cabbagetown Film Festival, flag and t-shirt sales and the receipt of grants. Expenditures exceeded budgeted revenues in 1999 resulting in a deficit which will be funded by cash on hand and not carried forward against the 2000 levy.

Conclusions:

The Citys 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 received to date are discussed in this report; future submissions will be the subject of later reports.

Contact:

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

Ingrid Girdauskas, Sr. Commercial Area Advisor, Small Business and Local Partnerships, Economic Development, Culture and Tourism Department, 392-1134

W. A. Liczyk

Chief Financial Officer and Treasurer

List of Attachments:

Appendix A - BIA Budget Summary

Appendix B - Status of BIA Budget Submissions

Appendix A

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APPENDIX B