Report to/Rapport au :

 

Finance and Economic Development Committee

Comité des finances et du développement économique

 

and Council / et au Conseil

 

27 March 2012 / le  27 mars 2012

 

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 22712, joanne.farnand@ottawa.ca

 

City Wide/à l’échelle de la Ville

Ref N°: ACS2012-CMR-FIN-0012

 

 

SUBJECT:

2012 BUDGETS AND SPECIAL LEVIES FOR BUSINESS IMPROVEMENT AREAS AND SPARKS STREET MALL AUTHORITY

 

 

OBJET :

BUDGETS DE 2012 POUR LES ZONE D’AMÉLIORATION COMMERCIAL ET L’ADMINISTRATION DU MAIL DE LA RUE SPARKS

 

REPORT RECOMMENDATIONS

 

1.                  That the Finance and Economic Development Committee recommend Council approve the 2012 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.                  That Council 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 2012 tax ratios are approved by Council.

 

 

RECOMMANDATIONS DU RAPPORT

 

1.                  Que le Comité des finances et du développement économique recommande au Conseil municipal d’approuver les budgets de 2012 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.         Que le Conseil adopte 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 2012 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 2012 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 2012 BIA and Sparks Street Mall Authority levy requirements have been computed with reference to the 2012 assessment roll, the 2012 approved board budgets, the audited 2010 surplus/deficit, and the 2011 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 ratable 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. 

 

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 $719,000 for the 2012 year; this does not exceed the cap of $727,032.

 

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 2012 levies for the BIAs and Sparks Street Mall Authority will be placed on the Agenda of Council once Council approves the 2012 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.

 

 

LEGAL IMPLICATIONS

 

There are no legal impediments to approving the recommendations in this report.

 

 

RISK MANAGEMENT IMPLICATIONS

 

There are no risk management implications.

 

 

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.

 

 

ACCESSIBILITY IMPLICATIONS

 

There are no accessibility impacts associated with this report.

 

 

TECHNICAL IMPLICATIONS

 

There are no technical implications associated with this report.

 

 

CITY STRATEGIC PLAN

 

There are no implications to the City’s Strategic Plan.

 

 

SUPPORTING DOCUMENTATION

 

Document 1    Summary of BIA and Mall Authority Budgets.

 

 

DISPOSITION

 

The Finance Department will set the BIA levies by applying the 2012 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 2012 tax ratios are established. 


2012 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

            172,710

92,250

129,594

185,500

                    1,755

72,000

Promotions/Maintenance

            395,888

152,000

161,764

219,500

                            -

28,000

Reserve Contribution

            152,549

-

-

-

                            -

0

Debt Service

                        -

-

-

-

                    9,145

0

Prior-Year Deficit

                        -

-

-

-

                    2,575

0

Total Expenditures

          721,147

244,250

291,358

405,000

                13,475

100,000

Sources of Financing

Contribution From Surplus

              55,000

24,500

121,908

68,000

                            -

                            -

Contribution From Reserve Fund

                        -

-

-

-

                            -

                            -

Misc. Revenues (including Grants)

            108,664

32,000

21,200

70,000

                    2,475

                            -

2012 Proposed Levy

            557,553

187,750

150,000

277,000

                  11,000

                100,000

Vacancy Rebate

                        -

-

(1,500)

(5,000)

                            -

                            -

Tax Remissions

               (7,070)

(2,000)

(250)

(5,000)

                            -

                            -

Supplemental Tax Bills

                7,000

2,000

-

-

                            -

                            -

Total Revenue

          721,147

244,250

291,358

405,000

                13,475

              100,000

2011 Levy

542,237

187,750

150,000

270,000

9,800

100,000

Percentage Increase/ Decrease 2011 to 2012

2.82%

0.00%

0.00%

2.59%

12.24%

0.00%

 

Disposition

2010 Audited Surplus/(Deficit)

            534,940

43,093

111,672

   474,393

                       785

-

2010 Audited Reserve Fund

                        -

-

-

                            -

                            -

-

2011 Contribution To(From) 2011 Operating Budget

2011 Year-End Disposition (Unaudited)

           (158,635)

36,228

32,636

26,774

                  (3,360)

                  23,008

2011 Total Disposition (Unaudited)

            376,305

79,321

144,308

501,167

                  (2,575)

                  23,008

Net Contribution To/(From) 2012 Operating Budget

              97,549

(24,500)

(121,908)

(68,000)

                    2,575

 -

2012 Year-End Forecast

          473,854

54,821

22,400

433,167

                            -

                23,008


 

 

Downtown Rideau BIA

Glebe BIA

Heart of Orleans BIA

Manotick BIA

Preston Street BIA

Sparks Street BIA

Expenditures

Administration

            270,750

                163,200

                  57,850

                  56,950

                126,043

                  91,722

Promotions/Maintenance

            470,400

                  83,000

                  94,650

                122,960

                284,300

                440,583

Special Projects

                540,000

Reserve Contribution

                            -

                            -

                            -

                            -

Debt Service

                        -

                            -

                            -

                            -

                            -

                            -

Prior-Year Deficit

                        -

                            -

                            -

                            -

                            -

                            -

Total Expenditures

          741,150

              246,200

              152,500

              179,910

              950,343

              532,305

Sources of Financing

Contribution From Surplus

              23,550

                  70,200

                            -

                            -

                450,000

                141,864

Contribution From Reserve Fund

                            -

                            -

                            -

                            -

                            -

Misc. Revenues (including Grants)

              23,600

                  10,000

                  10,000

                  10,000

                  15,000

                            -

2012 Proposed Levy

            719,000

                176,000

                150,000

                171,410

                485,343

                398,681

Vacancy Rebate

               (5,000)

                            -

                  (5,000)

                  (1,500)

                            -

                            -

Tax Remissions

             (20,000)

                (10,000)

                  (2,500)

                            -

                            -

                  (8,240)

Supplemental Tax Bills

                        -

                            -

                            -

                            -

                            -

                            -

Total Revenue

          741,150

              246,200

              152,500

              179,910

              950,343

              532,305

                            -

2011 Levy

718,155

176,000

150,700

167,310

484,892

387,069

Percentage Increase/ Decrease 2011 to 2012

0.12%

0.00%

-0.46%

2.45%

0.09%

3.00%

Disposition

2010 Audited Surplus/(Deficit)

              22,394

                109,603

                  65,458

                  (2,493)

                341,170

                155,707

2010 Audited Reserve Fund

              68,860

                            -

                            -

                            -

                            -

                            -

2011 Contribution To(From) 2011 Operating Budget

                (61,000)

2011 Year-End Disposition (Unaudited)

            115,913

                  41,481

                  31,580

                    8,847

                109,336

                  27,848

2011 Total Disposition (Unaudited)

            207,167

                  90,084

                  97,038

                    6,354

                450,506

                183,555

Net Contribution To/(From) 2012 Operating Budget

             (23,550)

                (70,200)

                            -

                            -

              (450,000)

              (141,864)

2012 Year-End Forecast

          183,617

                19,884

                97,038

                   6,354

                      506

                41,691


 

Sparks St. Mall Authority

Somerset Village BIA

Somerset Chinatown BIA

Vanier BIA

Westboro Village BIA

Wellington West BIA

 

Expenditures

 

Administration

              91,722

3,000

                  74,200

                149,800

                121,950

                  69,300

 

Promotions/Maintenance

            344,363

7,300

                104,700

                206,150

                296,550

                137,200

 

Reserve Contribution

                        -

-

                            -

                    8,176

                            -

                            -

 

Debt Service

                        -

-

                            -

                            -

                            -

 

Prior-Year Deficit

                        -

-

                            -

                            -

                            -

                            -

 

Total Expenditures

          436,085

10,300

              178,900

              364,126

              418,500

              206,500

 

 

Sources of Financing

 

Contribution From Surplus

              56,735

-

                            -

                            -

                            -

                  30,000

 

Contribution From Reserve Fund

                        -

-

                            -

                            -

                            -

 

Misc. Revenues (including Grants)

              53,575

-

                  16,000

                  49,470

                  22,500

                  10,000

 

2012 Proposed Levy

            334,015

10,300

                169,900

                314,656

                400,000

                166,500

 

Vacancy Rebate

                        -

-

                            -

                            -

                            -

                            -

 

Tax Remissions

               (8,240)

-

                  (7,000)

                            -

                  (4,000)

                            -

 

Supplemental Tax Bills

                        -

-

                            -

                            -

                            -

                            -

 

Total Revenue

          436,085

10,300

              178,900

              364,126

              418,500

              206,500

 

 

2011 Levy

324,285

10,000

169,900

315,760

400,000

151,450

 

Percentage Increase/ Decrease 2011 to 2012

3.00%

3.00%

0.00%

-0.35%

0.00%

9.94%

 

 

Disposition

2010 Audited Surplus/(Deficit)

            164,710

61,991

250,413

10,245

(16,103)

                  43,060

 

2010 Audited Reserve Fund

                        -

-

-

4,751

-

                            -

 

2011 Contribution To (From) 2011 Operating Budget

 

2011 Year-End Disposition (Unaudited)

              61,487

7,413

n/a

6,643

22,216

                  29,710

 

2011 Total Disposition (Unaudited)

            226,197

69,404

250,413

21,639

6,113

                  72,770

 

Net Contribution To/(From) 2012 Operating Budget

             (56,735)

-

-

8,176

-

                (30,000)

 

2012 Year-End Forecast

          169,462

69,404

250,413

29,815

6,113

                42,770