HomeMy WebLinkAboutFIN-2022-216 - Downtown Kitchener BIA and Belmont BIA 2022 Budgets Referenced in teh 2022 Tax Rate By-lawStaff Report
Financia( Services Department www.kitchener.ca
REPORT TO: Committee of the Whole
DATE OF MEETING: May 9, 2022
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 2, 2022
REPORT NO.: FIN -2022-216
SUBJECT: Downtown Kitchener BIA and Belmont BIA 2022 Budgets
Referenced in the 2022 Tax Rate By-law
RECOMMENDATION:
That the 2022 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 HIGHLIGHTS:
This report supports the delivery of core services.
REPORT:
The Downtown Kitchener BIA 2022 Budget was reviewed by the Board on April 19, 2022 and
includes the following:
Levy $ 1,379,000
Other revenue $ 315,000
Expenses $ 1,694,000
(refer to Appendix A — Downtown Kitchener BIA)
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
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The Belmont BIA 2022 Budget was reviewed by the Board on April 26, 2022 and includes the
following:
Levy
Other revenue
From Surplus
Expenses
$ 41,890
$ 35,000
$ 10,960
$ 87,850
(refer to Appendix B — Belmont Business Improvement Area).
Approving the budget is the last step required to be able to levy taxes on behalf of the BIAs.
STRATEGIC PLAN ALIGNMENT:
The recommendation of this report supports the achievement of the city's strategic vision
through the delivery of core service.
FINANCIAL IMPLICATIONS:
The 2022 BIA levy, once approved, will be used to determine BIA tax rates to be incorporated
into the 2022 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.
PREVIOUS REPORTS/AUTHORITIES:
There are no previous reports/authorities related to this matter.
APPROVED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
ATTACHMENTS:
Attachment A — Downtown Kitchener BIA
Attachment B — Belmont Business Improvement Area
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Appendix A
Downtown Kitchener BIA
Downtown Kitchener BIA Proposed Budget 2022
2022 Draft Budget
REVENUE
BIA Levy 1,379,000
RT04 Grant (2022 DTK Art Walk) 95,000
Injection from Surplus 220,000
Injection from surplus for Organic Waste Diversion
TOTAL INCOME $ 1,694,000
EXPENSES
Attracting Urban Shops and Restaurants - Priority#1
Graffiti Removal
12,000
Patio Program 290,000
Horticultural (Contribution to the City of Kitchener) 50,000
Advertising/Promotion 170,000
Own It Magazine
Business Start-up Grant Program
Total Attracting Urban Shops and Restaurants - Priority #1 $ 522,000
Foster and Support Heartfelt Urban Experiences - Priority #2
Canada Day
Kitchener -Waterloo Oktoberfest
10,000
Kitchener Blues Festival
35,000
City of Kitchener Events
50,000
December Programming
35,000
Holiday Window Decorating
8,000
Downtown Dollars
11,000
Downtown Dollar support for UNZIPPED
Community Builder Grant Program
50,000
Winter Programming (February to April)
12,000
Art Walk Project
180,000
Live Music/Entertainment
70,000
Total Foster and Support Heartfelt Urban Experiences - Priority #2 $
461,000
Champion a Caring & Collaborative Community - Priority #3
Discovery Team
Keeping Downtown Clean (After Spm collection) 60,000
DTK Pilot Program - Ambassadors (New) 38,000
Organic Waste Diversion (Climate change initiative) 30,000
COVID-19 Fund - Business Continuity (DTK Artwalk, and grant funding for main
street level businesses
Total Caring & Collaborative Community - Priority #3 $ 128,000
Total Member Relations $ 10,000
Downtown Improvement
Queen Street Placemaking Project
Downtown Improvement Project (Capital Reserve)
Total Downtown Improvement
Total General & Admin $ 106,500
Total Meetings & Professional Development $ 4,000
Total wages / Benefits $ 417,500
Levy Claw Back (tax adjustment) $ 45,000
TOTAL EXPENSES $ 1,694,000
Net Income $ -
2022 Budget Preparation
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Page 1 of 1
Appendix B
BELMONT BUSINESS IMPROVEMENT AREA
Belmont Business Improvement Area
(Belmont BIA)
*Figures provided by the Belmont BIA April 26, 2022. Deficit will be funded from the accumulated surplus.
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Budget
Actual
Budget
2021
2021
2022
REVENUES
City of Kitchener BIA Levy
$
40,670
$
40,670
$
41,890
Grants
8,500
18,000
Other Revenue
5,840
35,000
Total Revenue
$
49,170
$
64,510
$
76,890
EXPENSES
Admin & General
30,750
29,526
39,400
Improvement Projects
2,000
15,277
40,300
Marketing
6,800
12,485
8,150
Total Expenses
$
39,550
$
57,288
$
87,850
Net Revenue (Expenses)
$
9,620
$
7,222
$
(10,960)
Accumulated Surplus, beginning of year
55,908
55,908
63,130
Accumulated Surplus, end of year
$
65,528
$
63,130
$
52,170
*Figures provided by the Belmont BIA April 26, 2022. Deficit will be funded from the accumulated surplus.
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Notes on Belmont BIA 2022
Proposed Budget
REVENUE:
The BIA Levy includes a $1,220 increase over last year's amount and remains the main source
of income for Belmont Village.
In 2021, the BIA received an $18,000 Digital Main Street Grant for funding to expand the BIA's
digital footprint. There will be a Digital Main Street Grant for 2022 and at this time the amount is
unknown
The $5,840 Other Revenue in 2021 is a policy holder dividend received from the
demutualization of the Economical Mutual Insurance Company.
The BIA has begun fundraising to help offset patio expenses in 2022. They have secured
donation pledges totaling $35,000.
EXPENSES:
The increase in the Administration and General Expense Budget compared to the 2021 Actuals
is largely tied to two factors. First, the snow removal costs are anticipated to be $3,000 higher
in 2022, mainly due to the frequent snow days already experienced between January and
March this year. Second, the storage costs will increase from $798 in 2021 to $4,650 in 2022.
The BIA has two storage units on Gage Street for the patios. In 2021, storage was provided by
a local business at a nominal fee.
The Improvement Project expense line includes streetscape/patio costs. In 2021, the City
provided the BIA with $45,000 worth of patio related services for $5,000. Beginning with 2022,
the BIA is now responsible for those expenses which include patio slip -lane setup/takedown,
garbage/litter/maintenance and watering costs. Those costs amount to $37,400 which makes
up the majority of the 2022 $40,300 budget.
The balance of the total expenses, $10,960, will come from surplus funds.
The patios were a huge success, and we are hopeful we will be able to continue them.
Our marketing expenses are mainly our website expense.
* Figures and comments provided by the Belmont BIA April 26, 2022
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