Report to/Rapport au :

 

Finance and Economic Development Committee

Comité des finances et du développement économique

 

and Council / et au Conseil

 

24 March 2011 / le 24 mars 2011

 

Submitted by/Soumis par : Marian Simulik, City Treasurer/Trésorière municipale

 

Contact Person/Personne ressource : Joanne Farnand, Manager, Financial Services/

Gestionnaire, services financiers

Finance Department/Service des finances

613-580-2424, ext./poste 22712, joanne.farnand@ottawa.ca

 

City Wide/à l'échelle de la Ville

Ref N°: ACS2011-CMR-FIN-0019

 

 

SUBJECT:

2011 BUDGETS AND SPECIAL LEVIES FOR BUSINESS IMPROVEMENT AREAS AND SPARKS STREET MALL AUTHORITY

 

 

OBJET :

BUDGETS DE 2011 POUR LES ZONE D’AMÉLIORATION COMMERCIAL ET L’ADMINISTRATION DU MAIL DE LA RUE SPARKS

 

 

REPORT RECOMMENDATIONS

 

That the Finance and Economic Development Committee recommend Council:

 

1.   Approve the 2011 budgets and special levies, as presented in Document 1, for the following:

Bank Street BIA

Barrhaven BIA

Bells Corners BIA

ByWard Market BIA

Carp BIA

Carp Road Corridor BIA

Glebe BIA

Manotick BIA

Orleans BIA

Preston BIA

Rideau BIA

Sparks Street BIA

Sparks Street Mall Authority

Somerset Village BIA

Somerset Chinatown BIA

Vanier BIA

Wellington West BIA

Westboro BIA

 

2.   Enact the BIA levy by-laws and the Sparks Street Mall Authority by-law for the BIAs and mall authority listed in Recommendation 1 once the 2011 tax ratios are approved by Council.

 

RECOMMANDATIONS DU RAPPORT

 

Que le Comité des finances et du développement économique recommande au Conseil municipal :

 

1. d’approuver les budgets de 2011 tels que présentés dans le document no 1, pour les organismes suivants :

ZAC de la rue Bank

ZAC de Barrhaven

ZAC de Bells Corners

ZAC du marché By

ZAC de Carp

ZAC du corridor Carp

ZAC de Glebe

ZAC de Manotick

ZAC de la rue Preston

ZAC d’Orléans

ZAC de la rue Rideau (centre-ville)

ZAC du village de Somerset

ZAC de la rue Somerset Chinatown

ZAC de la rue Sparks

Administration du mail de la rue Sparks

ZAC de Vanier

ZAC du village de Westboro

ZAC de Wellington

 

2.   d’adopter les règlements municipaux concernant le prélèvement d’impôts visant les ZAC et le règlement du mail de la rue Sparks visant l’administration des ZAC et du mail énoncés dans la recommandation 1 lorsque les coefficients fiscaux de 2011 seront approuvés par le Conseil.

 

 

BACKGROUND

 

The Municipal Act Section 205 (2) requires that City Council approve the annual budgets for all Business Improvement Areas (BIAs) and Mall Authority.

 

This submission constitutes the approval required for the 2011 BIA and Sparks Street Mall Authority Budgets as shown in Document 1.  There are a maximum of 28 property classes that would be subject to a BIA levy in the City of Ottawa.  A rate has been assigned to each property class even if there are currently no properties assessed in the class in order to ensure that if assessment moves into these classes, either through an appeal or on a supplementary roll, a rate of taxation will exist.  The 2011 BIA and Sparks Street Mall Authority levy requirements have been computed with reference to the 2011 assessment roll, the 2011 approved board budgets, the audited 2009 surplus/deficit, and the 2010 unaudited year-end disposition.

 

 

DISCUSSION

 

Public Works and Government Services Canada (P.W.G.S.C.) have paid the BIA levy as a payment in lieu of taxes pursuant to or in accordance with the Payments In Lieu of Taxes (PIL) Act in prior years and will continue to review these payments on a yearly basis.  

 

Levy requirements have been calculated using the assumption that Payments In Lieu of Tax properties will be paid at the rate equivalent to the BIA levy.  The only exception being ByWard Market BIA, which has chosen not to budget for payment in lieu revenue for the following properties: United States Embassy, National Art Gallery, Royal Canadian Mint, War Museum and the Connaught Building. 

 

In accordance with subsection 208(3) of the Municipal Act, the Barrhaven Board of Management has approved a minimum rate of two hundred and fifty dollars ($250) per property.

 

The BIAs are funded through a levy on all rateable property in the area that is within a prescribed business property class. The operations of the Sparks Street Mall Authority are funded by way of special meter-frontage charge imposed on properties fronting on a special area of the mall. The City collects these special levies on behalf of these outside agencies. 

 

Since last Council approval of BIA budgets, one additional BIA has been created:

 

·         On December 8, 2010, Council enacted By-law No. 2010-380, amended by By-Law 2011-35 and 2011-36 to designate the Carp Road Corridor BIA.  Board approved budget has been received, and is included with this report. 

 

On October 30, 1992, the Ontario Municipal Board imposed a cap of the Downtown Rideau BIA’s levy for twenty years as described in By-law 7-93.  The cap is equal to the 1992 base levy of $490,566 plus an annual increase not to exceed the increase in the Consumer Price Index (CPI) for Ottawa-Carleton as published by Statistics Canada.  This restriction was passed to limit the tax burden on property owners.  Downtown Rideau BIA has requested a levy of $718,155 for the 2011 year; this does not exceed the cap of $720,000.

 

BIA levies are charged to owners who may apportion it back to their tenants based on a formula prescribed by legislation.

 

The by-law establishing the 2011 levies for the BIAs and Sparks Street Mall Authority will be placed on the Agenda of Council once Council approves the 2011 tax ratios and these ratios are applied to the approved budgets of the BIAs.  Minor adjustments of the rates may occur due to finalization of tax ratios.

 

 

RURAL IMPLICATIONS

 

The levies associated in this report will support the ongoing activities of the Manotick BIA, the Carp Road Corridor BIA and the Carp BIA.

 

 

CONSULTATION

 

All BIA Executive Directors are aware of the contents of this report.

 

 

COMMENTS BY WARD COUNCILLOR(S)

 

N/A

 

 

LEGAL/RISK MANAGEMENT IMPLICATIONS

 

There are no legal/risk management impediments to implementing the recommendations of this report.  Section 205 of the Municipal Act, 2001 deals with the budget of the BIA’s while Section 208 sets out the process to raise funds for the BIA’s.

 

 

CITY STRATEGIC PLAN

 

N/A

 

 

TECHNICAL IMPLICATIONS

 

N/A

 

 

FINANCIAL IMPLICATIONS

 

The BIA and Mall Authority budgets and levy requirements have no direct financial impact on the City.

 

Pursuant to subsection 205 (3) of the Municipal Act, a BIA shall not incur any indebtedness extending beyond the current year.  Any deficit positions shown on Document 1 are funded through an increase in the BIA tax levy or contribution from previous years’ surplus and/or reserve fund.   

 

 

SUPPORTING DOCUMENTATION

 

Document 1 – Summary of BIA and Mall Authority Budgets.

 

 

DISPOSITION

 

The Finance Department to set the BIA levies by applying the 2011 tax ratios to the approved BIA budgets once these ratios are established by City Council, and apply the meter-frontage charge to properties in the Sparks Street Mall Authority.

 

Legal Services to prepare and place the BIA levy and Sparks Street Mall Authority by-laws on the Agenda of Council for enactment by Council once the 2011 tax ratios are established.

 

 

2011 Summary of BIA and Mall Authority Budgets

Document 1

Bank Street BIA

Barrhaven BIA

Bells Corners BIA

Byward Market BIA

Carp BIA

Carp Road Corridor BIA

Expenditures

Administration

          167,100

            94,544

            96,684

          180,000

                925

            75,500

Promotions/Maintenance

          391,968

          132,000

          172,266

          139,000

                    -

24,500

Reserve Contribution

          152,549

                    -

                    -

                    -

                    -

                    -

Debt Service

                    -

                    -

                    -

                    -

              8,875

                    -

Prior-Year Deficit

                    -

                    -

                    -

                    -

                    -

                    -

Total Expenditures

        711,617

        226,544

        268,950

        319,000

            9,800

        100,000

Sources of Financing

Contribution From Surplus

            63,000

            38,794

          110,700

            59,000

                    -

                    -

Contribution From Reserve Fund

                    -

                    -

                    -

                    -

                    -

                    -

Misc. Revenues

          106,380

              2,000

            10,000

                    -

                    -

                    -

2011 Proposed Levy

          542,237

          187,750

          150,000

          270,000

              9,800

          100,000

Vacancy Rebate

                    -

                    -

            (1,500)

            (5,000)

                    -

                    -

Tax Remissions

            (7,000)

            (2,000)

               (250)

            (5,000)

                    -

                    -

Supplemental Tax Bills

              7,000

                    -

                    -

                    -

                    -

                    -

Total Revenue

        711,617

        226,544

        268,950

        319,000

            9,800

        100,000

Disposition

2009 Audited Surplus/(Deficit)

          570,875

            49,141

                    -

          428,189

              8,764

 -

2010 Year-End Disposition (Unaudited)

            50,569

            (4,817)

          111,672

            55,561

            (2,791)

 -

2010 Total Disposition (Unaudited)

          621,444

            44,324

          111,672

          483,750

              5,973

 -

Net Contribution To/(From) 2011 Operating Budget

            89,549

          (38,794)

         (110,700)

          (59,000)

                    -

 -

2011 Year-End Forecast

        710,993

            5,530

               972

        424,750

            5,973

 -


 

Downtown Rideau BIA

Glebe BIA

Heart of Orleans BIA

Manotick BIA

Preston Street BIA

Sparks Street BIA

Expenditures

Administration

          270,795

          152,500

            48,550

            55,050

          132,232

            89,050

Promotions/Maintenance

          452,360

            84,500

            96,900

          109,045

          292,660

          427,750

Reserve Contribution

            20,000

                    -

                    -

                    -

            60,000

                    -

Debt Service

                    -

                    -

                    -

                    -

                    -

                    -

Prior-Year Deficit

                    -

                    -

                    -

              1,715

                    -

                    -

Total Expenditures

        743,155

        237,000

        145,450

        165,810

        484,892

        516,800

Sources of Financing

Contribution From Surplus

                    -

            61,000

                    -

                    -

                    -

          138,495

Contribution From Reserve Fund

                    -

                    -

                    -

                    -

                    -

                    -

Misc. Revenues

            55,000

            10,000

                    -

                    -

                    -

                    -

2011 Proposed Levy

          718,155

          176,000

          150,700

          167,310

          484,892

          387,069

Vacancy Rebate

            (5,000)

                    -

            (4,500)

            (1,500)

                    -

               (764)

Tax Remissions

          (25,000)

          (10,000)

               (750)

                    -

                    -

            (8,000)

Supplemental Tax Bills

                    -

                    -

                    -

                    -

                    -

                    -

Total Revenue

        743,155

        237,000

        145,450

        165,810

        484,892

        516,800

Disposition

2009 Audited Surplus/(Deficit)

          (35,675)

          104,250

            43,305

          (24,149)

          393,057

          161,060

2010 Year-End Disposition (Unaudited)

            74,691

              8,675

            25,090

            22,434

          (25,166)

              6,284

2010 Total Disposition (Unaudited)

            39,016

          112,925

            68,395

            (1,715)

          367,891

          167,344

Net Contribution To/(From) 2011 Operating Budget

            20,000

          (61,000)

                    -

              1,715

            60,000

         (138,495)

2011 Year-End Forecast

          59,016

          51,925

          68,395

                    -

        427,891

          28,849


 

Sparks St. Mall Authority

Somerset Village BIA

Somerset Chinatown BIA

Vanier BIA

Westboro Village BIA

Wellington West BIA

Expenditures

Administration

            89,050

              2,800

            81,200

          150,994

          130,300

            69,300

Promotions/Maintenance

          334,334

              7,200

            90,700

          186,400

          235,000

          123,350

Reserve Contribution

                    -

                    -

                    -

            11,696

                    -

                    -

Debt Service

                    -

                    -

                    -

                    -

            15,300

                    -

Prior-Year Deficit

                    -

                    -

                    -

                    -

            15,900

                    -

Total Expenditures

        423,384

          10,000

        171,900

        349,090

        396,500

        192,650

Sources of Financing

Contribution From Surplus

            55,084

                    -

                    -

                    -

                    -

            31,200

Contribution From Reserve Fund

                    -

                    -

                    -

                    -

                    -

                    -

Misc. Revenues

            52,015

                    -

            10,000

            32,924

                    -

            10,000

2011 Proposed Levy

          324,285

            10,000

          169,900

          315,760

          400,000

          151,450

Vacancy Rebate

                    -

                    -

                    -

                    -

                    -

                    -

Tax Remissions

            (8,000)

                    -

            (8,000)

                    -

            (3,500)

                    -

Supplemental Tax Bills

                    -

                    -

                    -

                406

                    -

                    -

Total Revenue

        423,384

          10,000

        171,900

        349,090

        396,500

        192,650

Disposition

2009 Audited Surplus/(Deficit)

            63,688

            55,395

          211,678

          (26,250)

          (67,065)

            32,672

2010 Year-End Disposition (Unaudited)

          102,851

              6,925

                    -

            45,801

            51,165

            13,287

2010 Total Disposition (Unaudited)

          166,539

            62,320

          211,678

            19,551

          (15,900)

            45,959

Net Contribution To/(From) 2011 Operating Budget

          (55,084)

                    -

                    -

            11,696

            15,900

          (31,200)

2011 Year-End Forecast

        111,455

          62,320

        211,678

          31,247

                    -

          14,759