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HomeMy WebLinkAboutFIN-2021-30 - Downtown Kitchener BIA and Belmont BIA 2021 Budgets REPORT TO: COUNCIL DATE OF MEETING: May 17, 2021 SUBMITTED BY: Saleh Saleh, Director of Revenue, 519-741-2200 x 7346 PREPARED BY: John Sonser, Revenue Analyst, 519-741-2200 x 7954 WARD (S) INVOLVED: Ward(s) 8 & 10 DATE OF REPORT: May 3, 2021 REPORT NO.: FIN-2021-30 SUBJECT: Downtown Kitchener BIA and Belmont BIA 2021 Budgets Referenced in the 2021 Tax Rate By-law ___________________________________________________________________________ RECOMMENDATION: That the 2021 Budgets for the Downtown Kitchener Business Improvement Area (BIA) and the Belmont Business Improvement Area (BIA) be approved pursuant to Section 205 (2) of the Municipal Act, 2001. BACKGROUND: Section 205 (2) of the Act states that the board of management shall submit the budget to council by the date and in the form required by the municipality and the municipality may approve it in whole or in part but may not add expenditures to it. REPORT: The Downtown Kitchener BIA 2021 Budget was reviewed by the Board on April 28, 2021 and includes the following: Levy $ 1,379,000 Other revenue $ 265,000 Expenses $ 1,617,298 (refer to Appendix A – Downtown Kitchener BIA) The Belmont BIA 2021 Budget was reviewed by the Board on April 28, 2021 and includes the following: Levy $ 40,670 Other revenue $ 8,500 Expenses $ 39,550 *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. (refer to Appendix B – Belmont Business Improvement Area). The BIAs may adjust their detailed budget allocations based on COVID-19 response priorities as the year unfolds. Approving the budget is the last step required to be able to levy taxes on behalf of the BIAs. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: The recommendation of this report supports the achievement of the city’s strategic vision through the delivery of core service. FINANCIAL IMPLICATIONS: The 2021 BIA levy, once approved, will be used to determine BIA tax rates to be incorporated into the 2021 tax rate by-law. COMMUNITY ENGAGEMENT: INFORM – This report has been posted to the City’s website with the agenda in advance of the council / committee meeting. ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services Appendix A Figures and comments provided by the Downtown Kitchener BIA April 28, 2021 BudgetActualBudget 202020202021 REVENUES BIA Levy$ 40,665$ 40,616$ 40,670 Grants - 12,850 8,500 Other Revenue (Events) 7,800 2,336 - Total Revenue$ 48,465$ 55,802$ 49,170 EXPENSES Admin & General 33,863 28,155 30,750 Improvement Projects 15,000 1,081 2,000 Marketing 6,000 10,581 6,800 Total Expenses$ 54,863$ 39,817$ 39,550 Net Revenue (Expenses)$ (6,398)$ 15,985$ 9,620 Accumulated Surplus, beginning of year 40,179 39,923 55,908 Accumulated Surplus, end of year$ 33,781$ 55,908$ 65,528 * Figures provided by the Belmont BIA April 28, 2021. Appendix B BELMONT BUSINESS IMPROVEMENT AREA Notes on Belmont BIA 2021 Proposed Budget REVENUE: The BIA Levy remains fairly consistent with last year and remains the main source of income for Belmont Village. In 2020, the BIA received an $12,850 Digital Main Street Grant, funding to expand the BIA’s digital footprint. An additional $8,500 is anticipated for 2021. With the COVID shutdowns, there will be limited fundraising opportunities in 2021. We are hoping that we can have Christmas in the Village in November but that depends on restrictions. EXPENSES: The Administration and General Expense budget includes $5,000 to be paid to the City of Kitchener at $1,000 a month, starting in May, for help with garbage collection and patio plant * Figures and comments provided by the Belmont BIA April 28, 2021 watering. This assumes we are allowed to have patios, including $5,000 for flowers and flowerpots to replace the hanging baskets we used to have. The reduction of the Administration and General Expense in 2020 is due to the cancellation of flower baskets and planters and related summer maintenance costs. The budgeted Streetscape Improvement Project was not undertaken in 2020 due to Covid-19 restrictions. The Improvement Project for this year is to add to the lighting in the trees and around the proposed patio area to make it even more welcoming than last year. The patios were a huge success, and we are hopeful that they will be allowed again this year. Our marketing expenses are mainly our website expense.