3.             2010 BUDGETS AND SPECIAL LEVIES FOR BUSINESS IMPROVEMENT AREAS AND SPARKS STREET MALL AUTHORITY

 

                BUDGETS DE 2010 POUR LES ZONE D’AMÉLIORATION COMMERCIAL ET       L’ADMINISTRATION DU MAIL DE LA RUE SPARKS

 

 

COMMITTEE RECOMMENDATIONS

 

1.                  That Council approve the 2010 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;

Glebe BIA;

Manotick BIA;

Heart of Orléans 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.         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 2010 tax ratios are approved by Council.

 

 

RECOMMANDATIONS DU COMITÉ

 

1.         Que le Conseil approuve les budgets de 2010  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 de Glebe;

ZAC de Manotick;

ZAC de la rue Preston;

ZAC du cśur 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; et

 

2.            Que le Conseil adopte les rčglements municipaux concernant le prélčvement d’impôts visant les ZAC et le rčglement du mail de la rue Sparks visant l’administration des ZAC et du mail énoncés dans la recommandation 1, lorsque les coefficients fiscaux de 2010 seront approuvés par le Conseil.

 

 

 

 

 

 

Documentation

 

1.                  City Treasurer’s report dated 7 April 2010 (ACS2010-CMR-FIN-0015).

 

 

 

Report to/Rapport au :

 

Audit, Budget and Finance Committee

Comité de la vérification, du budget et des finances

 

and Council / et au Conseil

 

7 April 2010 / le 7 avril 2010

 

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

 

Contact Person/Personne ressource : Joanne Farnand, Manager, Financial Services, Infrastructure Services and Community Sustainability/ Gestionnaire, Services financiers,

 Services d'infrastructure et viabilité des collectivités

Finance Department / Service des finances

(613) 580-2424 x 22712, joanne.farnard@ottawa.ca

 

City Wide/ŕ l’échelle de la Ville

Ref N°: ACS2010-CMR-FIN-0015

 

 

 

SUBJECT:

2010 BUDGETS AND SPECIAL LEVIES FOR BUSINESS IMPROVEMENT AREAS AND SPARKS STREET MALL AUTHORITY

 

 

 

 

OBJET :

BUDGETS DE 2010 POUR LES ZONE D’AMÉLIORATION COMMERCIAL ET L’ADMINISTRATION DU MAIL DE LA RUE SPARKS

 

 

REPORT RECOMMENDATION

 

1.                  That the Audit, Budget and Finance Committee recommend Council approve the 2010 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;

Glebe BIA;

Manotick BIA;

Heart of Orléans 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.         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 2010 tax ratios are approved by Council.

 

 

RECOMMANDATION DU RAPPORT

 

Que le Comité de la vérification, du budget et des finances recommande au Conseil municipal d’approuver :

 

1.         Les budgets de 2010  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 de Glebe;

ZAC de Manotick;

ZAC de la rue Preston;

ZAC du cśur 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; et

 

2.            Que le Conseil adopte les rčglements municipaux concernant le prélčvement d’impôts visant les ZAC et le rčglement du mail de la rue Sparks visant l’administration des ZAC et du mail énoncés dans la recommandation 1, lorsque les coefficients fiscaux de 2010 seront approuvés par le Conseil.

 

 

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 2010 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 2010 BIAs and Sparks Street Mall Authority levy requirements have been computed with reference to the 2010 assessment roll, the 2010 approved board budgets, the audited 2008 surplus/deficit, and the 2009 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 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 BIA Board of Management has approved a minimum rate of two hundred and fifty dollars ($250) 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 operations of the Sparks Street Mall Authority are funded by way of a special metre-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 January 13, 2010, Council enacted By-law No. 2010-22, to designate Bells Corners BIA.  Board approved budgets have been received, and are 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.  The Downtown Rideau BIA has requested a levy of $698,689 for the 2010 year; this does not exceed the cap of $698,726.

 

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 2010 levies for the BIAs and Sparks Street Mall Authority will be placed on the Agenda of Council once Council approves the 2010 tax ratios and these ratios are applied to the approved budgets of the BIAs.

 

 

CONSULTATION

 

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

 

 

LEGAL/RISK IMPLICATIONS

 

There are no legal/risk implications.

 

 

FINANCIAL IMPLICATIONS

 

The submissions of BIA and Mall Authority budgets and 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 2010, Westboro BIA deficit is funded through existing levy, Vanier is funded through a contribution from their surplus and Manotick is funded via miscellaneous revenues.  Downtown Rideau’s unaudited reserve fund balance is $39,600, which includes the contribution to fund the 2009 disposition.

 

 

RURAL IMPLICATIONS

 

N/A

 

 

SUPPORTING DOCUMENTATION

 

Document 1 - Summary of BIA and Mall Authority Budgets.

 

 

DISPOSITION

 

The Finance Department to set the BIA levies by applying the 2010 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 2010 tax ratios are established.

 

Summary of BIA and Mall Authority Budgets

 

 

 

 

 

Document 1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bank Street BIA

Barrhaven BIA

Bells Corners BIA

Byward Market BIA

Carp BIA

Downtown Rideau BIA

Expenditures

 

 

 

 

 

 

Administration

          157,300

            69,290

            90,000

          144,000

                925

          240,595

Promotions/Maintenance

          491,968

          106,500

            60,000

          143,000

                    -

          455,694

Reserve Contribution

          152,549

                    -

                    -

                    -

                    -

                    -

Debt Service

                    -

                    -

                    -

                    -

              8,875

                    -

Prior-Year Deficit

                    -

                    -

                    -

                    -

                    -

 

Total Expenditures

        801,817

        175,790

        150,000

        287,000

            9,800

        696,289

 

 

 

 

 

 

 

Sources of Financing

 

 

 

 

 

 

Contribution From Surplus

          155,000

            49,553

                    -

            27,000

                    -

                    -

Contribution From Reserve Fund

                    -

                    -

                    -

                    -

                    -

 

Misc. Revenues

          104,151

              2,000

                    -

                    -

                    -

            27,000

2010 Proposed Levy

          542,666

          126,737

          150,000

          270,000

              9,800

          698,689

Vacancy Rebate

                    -

                    -

                    -

            (5,000)

                    -

            (5,000)

Tax Remissions

            (7,000)

            (2,500)

                    -

            (5,000)

                    -

          (24,400)

Supplemental Tax Bills

              7,000

                    -

                    -

                    -

                    -

                    -

Total Revenue

        801,817

        175,790

        150,000

        287,000

            9,800

        696,289

 

 

 

 

 

 

 

Disposition

 

 

 

 

 

 

Audited Surplus/(Deficit) December 2008

          610,673

            49,553

                    -

          372,653

              9,844

            66,860

2009 Year-End Disposition (Unaudited)

          (36,094)

              3,917

                    -

            55,626

            (6,242)

          (28,251)

2009 Total Disposition (Unaudited)

          574,579

            53,470

                    -

          428,279

              3,602

            38,609

Net Contribution to/(from) 2010 Operating Budget

            (2,451)

          (49,553)

                    -

          (27,000)

                    -

                    -

2010 Year-End Forecast

        572,128

            3,917

                    -

        401,279

            3,602

          38,609

 

 

 

 

 

 

 

 

Glebe BIA

Heart of Orleans BIA

Manotick BIA

Preston Street BIA

Sparks Street BIA

Sparks St. Mall Authority

Expenditures

 

 

 

 

 

 

Administration

          147,000

            47,200

            53,150

          134,395

            87,650

          153,210

Promotions/Maintenance

            90,000

            98,250

          124,751

          250,100

          429,150

          262,730

Reserve Contribution

                    -

                    -

                    -

          100,000

                    -

                    -

Debt Service

                    -

                    -

                    -

                    -

                    -

                    -

Prior-Year Deficit

                    -

                    -

            20,859

                    -

                    -

                    -

Total Expenditures

        237,000

        145,450

        198,760

        484,495

        516,800

        415,940

 

 

 

 

 

 

 

Sources of Financing

 

 

 

 

 

 

Contribution From Surplus

            61,000

                    -

                    -

                    -

          138,495

            47,687

Contribution From Reserve Fund

                    -

                    -

                    -

                    -

                    -

                    -

Misc. Revenues

            10,000

                    -

            35,000

                    -

                    -

            51,967

2010 Proposed Levy

          176,000

          150,700

          166,260

          484,495

          387,069

          324,286

Vacancy Rebate

                    -

            (4,500)

            (2,500)

                    -

               (764)

                    -

Tax Remissions

          (10,000)

               (750)

                    -

                    -

            (8,000)

            (8,000)

Supplemental Tax Bills

                    -

                    -

                    -

                    -

                    -

                    -

Total Revenue

        237,000

        145,450

        198,760

        484,495

        516,800

        415,940

 

 

 

 

 

 

 

Disposition

 

 

 

 

 

 

Audited Surplus/(Deficit) December 2008

            94,840

              3,176

          (20,841)

          270,056

          138,495

            47,687

2009 Year-End Disposition (Unaudited)

            14,372

            44,802

                (18)

          109,251

            33,759

            21,802

2009 Total Disposition (Unaudited)

          109,212

            47,978

          (20,859)

          379,307

          172,254

            69,489

Net Contribution to/(from) 2010 Operating Budget

          (61,000)

                    -

            20,859

                    -

         (138,495)

          (47,687)

2010 Year-End Forecast

          48,212

          47,978

                    -

        379,307

          33,759

          21,802


 

 

Somerset Village BIA

Chinatown BIA

Vanier BIA

Westboro Village BIA

Wellington West BIA

 

Expenditures

 

 

 

 

 

 

Administration

              4,700

            87,700

          175,150

          113,700

            58,800

 

Promotions/Maintenance

              5,300

            92,200

          141,350

          219,229

            91,950

 

Reserve Contribution

                    -

                    -

            24,225

                    -

                    -

 

Debt Service

                    -

                    -

                    -

                    -

                    -

 

Prior-Year Deficit

                    -

                    -

                    -

            67,071

                    -

 

Total Expenditures

          10,000

        179,900

        340,725

        400,000

        150,750

 

 

 

 

 

 

 

 

Sources of Financing

 

 

 

 

 

 

Contribution From Surplus

                    -

                    -

                    -

                    -

            19,585

 

Contribution From Reserve Fund

                    -

                    -

                    -

                    -

                    -

 

Misc. Revenues

                    -

            10,000

            31,760

                    -

            12,000

 

2010 Proposed Levy

            10,000

          169,900

          308,559

          400,000

          121,165

 

Vacancy Rebate

                    -

                    -

                    -

                    -

            (2,000)

 

Tax Remissions

                    -

                    -

                    -

                    -

                    -

 

Supplemental Tax Bills

                    -

                    -

                406

                    -

                    -

 

Total Revenue

          10,000

        179,900

        340,725

        400,000

        150,750

 

 

 

 

 

 

 

 

Disposition

 

 

 

 

 

 

Audited Surplus/(Deficit) December 2008

            46,438

                    -

            88,221

          (40,955)

            34,148

 

2009 Year-End Disposition (Unaudited)

              9,110

                    -

          (77,964)

          (26,116)

            (1,407)

 

2009 Total Disposition (Unaudited)

            55,548

                    -

            10,257

          (67,071)

            32,741

 

Net Contribution to/(from) 2010 Operating Budget

                    -

                    -

                    -

            67,071

          (19,585)

 

2010 Year-End Forecast

          55,548

                    -

          10,257

                    -

          13,156