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7. 2009 BUDGETS AND SPECIAL LEVIES FOR BUSINESS
IMPROVEMENT AREAS AND SPARKS STREET MALL AUTHORITY BUDGETS DE 2009 POUR LES ZONE D’AMÉLIORATION
COMMERCIAL ET L’ADMINISTRATION DU MAIL DE LA RUE SPARKS |
COMMITTEE
RECOMMENDATIONS
That Council:
1. Approve
the 2009 budgets and special levies, as presented in Document 1, for the
following:
Bank Street BIA;
Barrhaven BIA;
ByWard Market BIA;
Carp
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; and
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 2009 tax
ratios are approved.
RECOMMANDATIONS
DU COMITÉ
Que le
Conseil :
1.
approuve
les budgets de 2009 tels que présentés
dans le document no 1, pour les organismes suivants :
ZAC de
la rue Bank;
ZAC de
Barrhaven;
ZAC du
marché By;
ZAC de
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 Somerset;
ZAC de
la rue Somerset Chinatown;
ZAC de
la rue Sparks;
ZAC de
Vanier;
ZAC du
village de Westboro; et
ZAC de
Wellington; et
2. adopte
les
règlements municipaux concernant le prévlèment
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 2009 seront
approuvés.
DOCUMENTATION
1.
City
Treasurer’s report dated 30 March 2009 (ACS2008-CMR-FIN-0014).
Report
to/Rapport au :
Corporate Services and
Economic Development Committee
Comité des services
organisationnels et du développement économique
and Council / et au Conseil
Submitted by/Soumis par : Marian Simulik,
City Treasurer/ et Trésorière municipale
Contact Person/Personne resource: Claudio
Colaiacovo, Manager Financial Services/
gestionnaire services
financiers
Financial Services/Services financiers
(613) 580-2424 x22331, claudio.colaiacovo@Ottawa.ca
REPORT
RECOMMENDATIONS
That the Corporate Services
and Economic Development committee recommend Council:
1.
Approve the 2009 budgets and special levies, as
presented in Document 1, for the following:
Bank Street BIA;
Barrhaven BIA;
ByWard Market
BIA;
Carp 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; and
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 2009 tax ratios are approved.
RECOMMANDATIONS DU RAPPORT
Que le Comité des services organisationnels et du développement économique
recommande au Conseil municipal :
1. d'approuver les budgets de
2009 tels que présentés dans le
document no 1, pour les organismes suivants :
ZAC de la rue Bank;
ZAC de Barrhaven;
ZAC du marché By;
ZAC de 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; et
ZAC de Wellington; et
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 2009 seront approuvés.
BACKGROUND
The Municipal Act 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 2009 BIA and Sparks Street Mall Authority
Budgets as shown in Document 1. There
are a maximum of 21 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 2009 BIA’s and
Sparks Street Mall Authority levy requirements have been computed with
reference to the 2009 assessment roll, the 2009 approved board budgets, the
audited 2007 surplus/deficit, and the 2008 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.
Rates 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 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 ($250.00) per property and a maximum rate of two thousand dollars ($2,000) per tenant.
The BIAs are funded through a levy on all ratable property in the area that is within a prescribed business property class. The Mall Authority is funded through a levy based on meter frontage on Sparks Street Mall. The City collects these special levies on behalf of these outside agencies.
Since last Council approval of BIA budgets, Somerset Chinatown has expanded their boundaries; Council approval for expansion was received September 10th, 2008. Expansion was completed in accordance with all applicable sections of the Municipal Act. Somerset Chinatown BIA is levying an expansion budget for 2009 of $169,900, which represents an increase of 21% over 2008. In addition, on June 27, 2007 Council approved a report for the construction of the Somerset Street Chinatown BIA Gateway Project. In approving the report, the City has been issuing charitable receipts for donations received. As of December 31, 2008 through the Gateway Project, the City is holding $132,000 in a trust account representing contributions toward this project.
As part of the Rideau Street Redevelopment Project, on October 30, 1992, the Ontario Municipal Board imposed a cap of the Downtown Rideau BIA’s levy for twenty years. 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 $690,440 for the 2009 year; this does not exceed the cap of $690,441. Downtown Rideau BIA paid in full the debentures for By-law 186 of 1993 on behalf of the former City of Ottawa, and consolidated by former Regional By-Law 191 of 1993. Final payment and maturity for the aforementioned was on December 17, 2008.
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 2009 levies for the BIAs and Sparks
Street Mall Authority will be placed on the Agenda of
Council once Council approves the 2009 tax ratios and these ratios are applied
to the approved budgets of the BIAs.
The
operations of the Sparks Street Mall Authority are funded by way of special
metre-frontage charge imposed on properties fronting on a special area of the
mall.
LEGAL/RISK IMPLICATIONS
There
are no legal or risk management impediments to implementing the recommendations
in this report. .
CONSULTATION
All BIA Executive Directors are aware of the contents of this report.
FINANCIAL IMPLICATIONS
The submissions of BIA budgets, BIA and Mall Authority levy requirements have no 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. For 2009, Manotick and Westoboro BIA deficits are funded through increased levies and Downtown Rideau is funded through a contribution from their reserve fund. Downtown Rideau reserve fund balance is $80,300, which includes the contribution to fund the 2008 disposition.
SUPPORTING DOCUMENTATION
Document 1 Summary of BIA and Mall Authority Budgets.
DISPOSITION
The Financial Services Branch to set the BIA levies by applying the
2009 tax ratios to the approved BIA budgets once these ratios are established
by City Council and apply the metre-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
2009 tax ratios are established.
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Document
1 |
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Bank Street |
Barrhaven |
Byward Market |
Carp |
Dowtown Rideau |
Glebe |
Heart of Orleans |
Manotick |
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EXPENDITURES |
B.I.A. |
B.I.A |
B.I.A. |
B.I.A |
B.I.A. |
BIA |
BIA |
B.I.A |
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Administration |
161,300 |
64,437 |
151,000 |
1,086 |
225,350 |
123,100 |
51,150 |
46,845 |
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Promotions/Maintenance |
517,759 |
98,750 |
135,500 |
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459,090 |
104,000 |
99,550 |
98,850 |
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Reserve Contribution |
152,549 |
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Debt
Service |
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8,768 |
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Prior-Year
Deficit |
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543 |
169,368 |
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15,805 |
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TOTAL
EXPENDITURES |
831,608 |
163,187 |
286,500 |
10,397 |
853,808 |
227,100 |
150,700 |
161,500 |
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SOURCES OF FINANCING |
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Contribution
From Surplus |
245,000 |
24,471 |
26,500 |
543 |
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75,000 |
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0 |
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Contribution
From Reserve Fund |
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169,368 |
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Misc.
Revenues |
99,977 |
12,000 |
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4,000 |
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2009
Proposed Levy |
486,631 |
126,716 |
270,000 |
9,854 |
690,440 |
162,100 |
150,700 |
164,000 |
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Vacancy
Rebate |
0 |
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-5,000 |
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-5,000 |
-10,000 |
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-2,500 |
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Tax
Remissions |
-7,000 |
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-5,000 |
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-5,000 |
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Supplemental
Tax Bills |
7,000 |
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0 |
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TOTAL
REVENUE |
831,608 |
163,187 |
286,500 |
10,397 |
853,808 |
227,100 |
150,700 |
161,500 |
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DISPOSITION |
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Audited
(Surplus)/Deficit December 2007 |
-544,598 |
-22,303 |
-310,607 |
-7,267 |
91,966 |
0 |
20,569 |
-12,806 |
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2008
Year End-Disposition (Unaudited) |
-67,794 |
-30,391 |
-68,631 |
-3,121 |
77,402 |
-95,524 |
-33,693 |
28,611 |
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2008
Year End-Disposition (Unaudited) |
-612,392 |
-52,694 |
-379,238 |
-10,388 |
169,368 |
-95,524 |
-13,124 |
15,805 |
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Net
Contribution to 2009 Operating Budget |
92,451 |
24,471 |
26,500 |
543 |
169,368 |
75,000 |
0 |
0 |
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2009
Year End Forecast |
-519,941 |
-28,223 |
-352,738 |
-9,845 |
0 |
-20,524 |
-13,124 |
0 |
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Sparks |
Somerset Street |
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EXPENDITURES |
Preston
Street |
Street |
St.
Mall |
Village |
Chinatown |
Vanier |
Westboro
Village |
Wellington
West |
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B.I.A. |
B.I.A. |
Authority |
B.I.A. |
B.I.A. |
B.I.A |
B.I.A. |
BIA |
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Administration |
109,895 |
90,200 |
152,290 |
3,300 |
94,900 |
140,100 |
172,000 |
52,000 |
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Promotions/Maintenance |
275,990 |
378,084 |
246,157 |
6,700 |
85,000 |
154,370 |
198,000 |
90,000 |
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Reserve Contribution |
100,000 |
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1,239 |
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Debt Service |
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Prior Year Deficit |
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38,761 |
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TOTAL EXPENDITURES |
485,885 |
468,284 |
398,447 |
10,000 |
179,900 |
294,470 |
410,000 |
142,000 |
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SOURCES OF FINANCING |
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Contribution From Surplus |
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99,893 |
39,000 |
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34,000 |
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Misc. Revenues |
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49,519 |
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10,000 |
4,800 |
10,000 |
10,000 |
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2008 PROPOSED LEVY |
485,885 |
376,391 |
317,928 |
10,000 |
169,900 |
289,670 |
400,000 |
100,000 |
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Vacancy Rebate |
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-2,000 |
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Tax Remissions |
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-8,000 |
-8,000 |
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Supplemental Tax Bills |
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TOTAL REVENUE |
485,885 |
468,284 |
398,447 |
10,000 |
179,900 |
294,470 |
410,000 |
142,000 |
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DISPOSITION |
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Audited (Surplus)/Deficit December 2007 |
-225,604 |
-104,683 |
-92,189 |
-37,982 |
0 |
-149,604 |
19,284 |
0 |
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2008 Year End-Disposition (Unaudited) |
-42,968 |
-36,139 |
52,664 |
-8,455 |
0 |
85,080 |
19,477 |
-34,171 |
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2008 Year End |
-268,572 |
-140,822 |
-39,525 |
-46,437 |
0 |
-64,524 |
38,761 |
-34,171 |
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Net Contribution to 2009 Operating Budget |
0 |
99,893 |
39,000 |
0 |
0 |
0 |
0 |
34,000 |
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2009 Year End Forecast |
-268,572 |
-40,929 |
-525 |
-46,437 |
0 |
-64,524 |
0 |
-171 |
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Notes: |
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-Payment in Lieu included in 2009
Proposed Levy |
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-Somerset Chinatown shown with
expansion budget |
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-Downtown Rideau contribution to
Operating is from Reserve Fund |
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