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HomeMy WebLinkAboutFIN-2023-235 - Downtown Kitchener BIA and Belmont BIA 2023 Budgets Referenced in the 2023 Tax Rate By-lawStaff Report Financia( Services Department www.kitchener.ca REPORT TO: Committee of the Whole DATE OF MEETING: May 15, 2023 SUBMITTED BY: Saleh Saleh, Director of Revenue, 519-741-2200 x 7346 PREPARED BY: Faye West, Manager, Taxation & Payment Processing, 519-741-2200 x 7306 WARD(S) INVOLVED: Ward(s) 8 & 10 DATE OF REPORT: May 4, 2023 REPORT NO.: FIN -2023-235 SUBJECT: Downtown Kitchener BIA and Belmont BIA 2023 Budgets Referenced in the 2023 Tax Rate By-law RECOMMENDATION: That the 2023 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. REPORT HIGHLIGHTS: This report supports the delivery of core services. 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 2023 Budget was reviewed by the Board on April 10, 2023, and includes the following: Levy $ 1,485,000 Other revenue $ 80,000 Expenses $ 1,565,000 (refer to Attachment A — Downtown Kitchener BIA) The Belmont BIA 2022 Budget was reviewed by the Board on March 28, 2023 and includes the following: *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 4 of 8 Levy Other revenue Expenses $ 44,822 $ 14,100 $ 58,922 (refer to Attachment 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: This report supports the delivery of core services. FINANCIAL IMPLICATIONS: The 2023 BIA levy, once approved, will be used to determine BIA tax rates to be incorporated into the 2023 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 Business Improvement Area Attachment B — Belmont Business Improvement Area Page 5 of 8 "Figures provided by the Belmont BIA May 1, 2023. Deficit will be funded from the accumulated surplus Page 6 of 8 Appendix B Belmont Business Improvement Area (Belmont BIA) Budget Actual Budget 2022 2022 2023 REVENUE City of Kitchener BIA Levy $41,890 $41,890 $44,822 Governance Training $800 Other Revenue $35,000 $48,100 $14,100 Total Revenue $76,890 $90,790 $58,922 EXPENSES Administration and General $39,400 $43,768 $39,688 Improvement Projects $40,300 $38,600 $1,900 Summer Projects $17,950 Marketing $8,150 $10,640 $17,334 Total Expenses $87,850 $93,008 $76,872 Net Revenue (Expenses) ($10,960) ($2,218) ($17,950) Accumulated Surplus, beginning of year $63,130 $63,130 $60,912 Accumulated Surplus, end of year $52,170 $60,912 $42,962 "Figures provided by the Belmont BIA May 1, 2023. Deficit will be funded from the accumulated surplus Page 6 of 8 Attachment B — Belmont Business Improvement Area Notes on Belmont BIA 2023 Proposed Budget RF\IFNIIF The BIA Levy includes a $2,932 increase over last year's amount and remains the main source of income for Belmont Village. The $14,100 Other Revenue is the sale of six benches to various sponsors. EXPENSES The $1,900 2023 Budget for Improvement Projects is the remaining budget not spent in 2022. The $17,950 Summer Project budget will cover the following projects: Flowers, watering $ 7,100 Summer Money Camp - Kids 2,500 PT Social Media help $20/hr/month 4,200 Labour Day Festivities 1,850 Christmas in the Village 2,300 $ 17,950 With the increase of $9,184 in the marketing expense the BIA is hoping to bring more events to the Village. As the Belmont BIA is planning on expansion in the near future our plan is to make a more robust and professional social media and digital presence as one of the incentives to our potential membership. The balance of the total expenses, $17,950, will come from surplus funds. "Figures and comments provided by the Belmont BIA May 1, 2023. Page 7 of 8 Attachment A- Downtown Kitchener Business Improvement Area Downtown Kitchener BIA Proposed 2023 Budget (Draft) 2023 Draft Budget BIA Levy 1,485,000 Grant Funding 10,000 Injection from Surplus 70,000 Total Income $ 1,565,000 EXPENSES Keeping Downtown Clean & Attractive Graffiti Removal 15,000 Patio Program 200,000 Horticultural (Contribution to the City of Kitchener) 50,000 DTK Street Squad 10,000 Keeping Downtown Clean (after 5pm wasted removal) 50,000 Total Beautification $ 325,000 Destination Events Kitchener -Waterloo Oktoberfest 30,000 Kitchener Blues Festival 40,000 City of Kitchener Events 50,000 December Programming 40,000 DTK Hut Repair 10,000 Downtown Dollars 11,000 Community Builder Grant Program 60,000 Marketing and Promotion 170,000 Total Events $ 411,000 Supporting Members through Recovery NEW Social Media Program 48,000 NEW Enhanced Live Entertainment 90,000 NEW Winter Wonderland Windows with Conestoga College 30,000 Total Recovery $ 168,000 Total Member Relations $ 7,000 Total General & Admin $ 139,000 Total Meetings & Professional Development $ 19,000 Office Move $ 18,000 Total HR Expenses $ 443,000 TOTAL EXPENSES $ 1,530,000 Tax Write Off Reserve $ 35,000 Total Proposed Budget $ 1,565,000 Page 1 Page 8 of 8