Creating a Business Plan and Budget

1.0 Business development objectives

1.1 Description and background of BIA

1.2 Major objectives and initiatives

1.3 BIA analysis – strengths, weaknesses, opportunities and threats

2.0 Market analysis

2.1 Market research and analysis

2.2 Retail sales analysis

2.3 BIA outlook

3.0 BIA program of activities

3.1 Promotion and advertising

3.2 Public relations

3.3 Streetscaping

3.4 Commercial research

3.5 Training – seminars and conferences

3.6 Festivals and events

3.7 Administration

4.0 Organization plan

4.1 Structure of BIA

4.2 Organization chart

4.3 Outside resources

5.0 Financial plan

5.1 Funding requirements

5.2 Current and future funding requirements – capital, operating and maintenance

5.3 Sources of funding

6.0 Overall schedule

6.1 Realistic schedule showing timing of major events

6.2 Impact of schedule changes on plan

7.0 Critical risks and problems

Appendix 1 – Historical financial data

Existing commitments
Financial statements for three years
Capital expenditure budget for past year
Operating expenditure budget for past year

Appendix 2 – Acknowledgements

1. General principles

  • The statements should be prepared on the basis of generally accepted accounting principles for local governments as prescribed by the Public Sector Accounting Board of the Canadian Institute of Chartered Accountants
  • Revenues and expenditures should be recorded using the accrual basis of accounting
  • Fixed asset expenditures should be recorded as an operating expenditure in the year of acquisition

2. Requirements

  • Signed audit report
  • Balance sheet
  • Statement of revenue, expenditure and operating surplus
  • Statement of changes in financial position

Notes to the financial statements should be consistent with those of previous years and should include:

  • Description of the purpose of the BIA
  • Significant accounting policies
  • Details of outstanding special charges
  • Details of components of the expenditure for special charges
  • Insurance requirements
  • Outstanding commitments with respect to the capital streetscape program.

3. Submission deadline

  • Audited financial statements are due each year by March 14
  • To assist your BIA in the preparation of your annual financial statements, the City of Toronto’s accounting services will mail a list of transactions that took place between your BIA and the City
  • The City of Toronto’s Audit Committee has requested that BIAs provide their audited financial statements no later than April 30 annually
  • BIAs that do not submit their audited financial statements by June 30 will not receive their third levy installment until the audited financial statements are provided

4. Board of management meetings and monthly treasurer’s reports

BIA board of management monthly meeting agendas must include a treasurer’s report containing, but not limited to, the following information:

  • levies received from the City to date
  • expenditures incurred to date not cost shared by the City. Note that the City’s capital cost share
  • billing is approximated every six months
  • report on actual expenditures incurred to date compared to the approved budget projection.

Each board should determine the level of detail required for reporting on the above.

To file a GST rebate claim, have your BIA complete and submit the consent forms to:

Katherine Feng
City of Toronto
Accounting Services
Tel:: 416-397-7489
E-mail: kfeng@toronto.ca

The remainder of the process is as follows:

  • Once a BIA consent form has been received, the City of Toronto applies for municipal status for your BIA
  • The Canada Revenue Agency (CRA) approves the municipal status for the BIAs
  • Once approved, the BIAs must register with the local office by calling 1-800-959-5525 with the full name, for example,  “The Board of Management for the Main Street Business Improvement Area”
  • Once registered, the BIA will file a municipal rebate claim (100% GST rebate plus 78% of the 8% Ontario part of HST) to the Summerside Office, using Form GST66E and Form RC7066.

Annual general meeting (AGM) notice sample

The AGM notice is typically mailed on one page and printed double-sided with the meeting coordinates on the front and the proposed budget on the reverse.

Sample: AGM notice, including simplified budget

Detailed BIA budget forms sample

Contact the BIA Office at 416-392-1291.

Budget approval schedule sample

Sample: Budget approval process

BIA financial statement sample

Sample: Financial statements