HomeMy WebLinkAboutFIN-2024-196 - Downtown Kitchener BIA and Belmont BIA 2024 Budgets Referenced in the 2024 Tax Rate By-lawStaff Report
Financia( Services Department www.kitchener.ca
REPORT TO: Committee of the Whole
DATE OF MEETING: April 29, 2024
SUBMITTED BY: Saleh, Saleh, Director of Revenue, 519-741-2200 ext. 7346
PREPARED BY: Yang, Shanna, Revenue Analyst, 519-741-2200 ext. 7954
WARD(S) INVOLVED: Ward(s) 8 & 10
DATE OF REPORT: April 16, 2024
REPORT NO.: FIN -2024-196
SUBJECT: Downtown Kitchener BIA and Belmont BIA 2024 Budgets Referenced in
the 2024 Tax Rate By-law
RECOMMENDATION:
That the 2024 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 2024 Budget was reviewed by the Board on August 23, 2023, and
includes the following:
Levy $ 1,816,000
Expenses $ 1,816,000
(refer to Attachment A — Downtown Kitchener BIA)
The Belmont BIA 2024 Budget was reviewed by the Board on January 30, 2024 and includes
the following:
Levy $ 48,624
Expenses $ 60,774
*** 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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(refer to Attachment B — Belmont BIA).
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 2024 BIA levy, once approved, will be used to determine BIA tax rates to be incorporated
into the 2024 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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Downtown Kitchener BIA
Draft 2024 Budget
REVENUE
BIA Levy
Grant Funding
Injection from Surplus
TOTAL REVENUE
EXPENSES
BEAUTIFY (ENHANCE)
Graffiti Removal
Patio Program
Horticulture (Contribution to the City of Kitchener)
DTK Street Squad
DTK Art Walk
Window Decorating with Conestoga College
Keeping Downtown Clean (after 5pm waste removal)
TOTAL BEAUTIFY (ENHANCE)
ACTIVATE
Kitchener -Waterloo Oktoberfest
Kitchener Blues Festival
Festivals (Contribution to the City of Kitchener)
Christkindl Market (Contribution to the City of Kitchener)
Hut Repair
Live Music Member Grant
Arts and Culture Activation
Community Builder Grant
TOTAL ACTIVATE
CONNECT
DTK Resident Club
Marketing and Promotions
Social Media Program (Contract)
Downtown Safety
Downtown Dollars
TOTAL CONNECT
GENERAL & ADMIN
OFFICE MOVE
MEMBER RELATIONS
MEETINGS & PROFESSIONAL DEVELOPMENT
HR EXPENSES
TOTAL EXPENSES
2023 Budget
2024 Budget
1,485,000
1,816,000
10,000
-
220,000
-
$1,715,000
$1,816,000
15,000
20,000
200,000
40,000
50,000
50,000
10,000
-
-
155,000
30,000
20,000
50,000
60,000
$405,000
$345,000
30,000
30,000
40,000
45,000
50,000
50,000
40,000
40,000
10,000
-
90,000
60,000
150,000
225,000
60,000
30,000
$470,000
$480,000
-
30,000
170,000
200,000
48,000
-
11,000
20,000
$229,000
$250,000
$139,000
$155,000
$18,000
$0
$7,000
$7,000
$19,000
$20,000
$443,000
$566,000
$1,730,0001
$1,816,000
2024 DRAFT BUDGET Page 22 of R451 of 1
City of Kitchener BIA 2024 Budget Comments
August 14, 2023
The BIA team, and the BIA Board are significant contributors to the life and vibrancy of downtown
Kitchener. The economic development team would be unable to realize its downtown objectives
without the BIA's investments. Please accept the follow comments as background and context as the
Board considers the BIA's 2024 expenditures.
Horticulture/Operations
Pre -pandemic there was a request from the downtown businesses to enhance and upgrade the plant
materials in DTK to support beautification efforts. The city's horticulture team was able to do this with
horticulture support from the BIA. In 2020, the city received a written complaint from several
developers and building owners requesting that the city further enhance and address the DTK
beautification efforts.
Over the last 3 years the Parks/Operations team from the City of Kitchener has added resources (human
and financial) to support the maintenance and horticulture efforts in downtown Kitchener. For many
years, both Economic Development (Downtown) and the Downtown Kitchener BIA have contributed to
these efforts. The BIA has contributed $50,000/year in support of this work.
Beginning in the fall of 2020 a dedicated DTK Operations team was established. This team works directly
with the horticulture team within the city's Parks department. The following investments have been
made by the municipality over the last three years:
Capital
Tree, concrete and paver replacements
Electrical and irrigation system upgrades
Carl Zehr Square updates
Operating
Addition of downtown operations staff and resources
Expanded horticulture efforts (plant materials, watering, seasonal plantings)
Support for BIA patio planters (material and maintenance)
The BIA's continued support of the horticulture program is essential to maintaining the current
standard. Changes in funding would directly hinder the operational and horticulture efforts in DTK.
Current funding is required to maintain staffing and service levels.
Special Events
The BIA has a tradition of support and collaboration with the Economic Development Special Events
team, and the numerous community partners who host, run, and animate large scale events in
Page 23 of 45
downtown Kitchener. The vibrancy we have come to expect is the result of both large- and small-scale
activations. Large scale activations will continue to draw thousands of people to the core who will
experience DTK in new ways. Each impression is critical in shaping the DTK story and furthering the
feeling that DTK is safe, vibrant, and open for business. The 2023 edition of Cruising on King is a perfect
example, where nearly 16,000 individual cell phone users were captured.
The Special Events team, under Manager Steve Roth, has been using the 2023 season to assess, collect
data, and review operational processes to consider how best to strategically deliver exceptional event
experiences. The Special Events (SE) team co-ordinates and/or supports all aspects of the large-scale
events. In 2023, these include, but is not limited to:
• Tri -Pride
• KW Multicultural Festival
• Canada Day
• Ribfest
• Cruising on King
• Wayback Festival
• KidsPark
• Oktoberfest
• Christkindl
The SE team has embarked on a data collection exercise to assess and understand the reach and impact
of each event. 2023 was a first step toward gathering and understanding the data, with the aim of
tailoring the event activities, understanding event demographics, and expanding the data collection
exercise into 2024 and 2025.
The BIA's support for DTK activations is critical and necessary to realize the breadth and scale of the
events that animate the downtown. It has always been essential to draw upon many partners,
collaborators, and contributors and this will be even more critical as the cost to support events and
community partners increases.
In a recent meeting with city staff, Linda Jutzi, BIA ED shared that moving forward the BIA would
welcome opportunities to:
• add or tweak event programming to animate King Street during business operating hours.
• work more collaboratively to review event outcomes to align better with shared objectives.
The city is open to a dialogue on how to incorporate the BIA's concerns and to address the evolving
needs of downtown businesses and partners. The city believes that there is significant synergy between
the BIA's recently approved strategic priorities, the community led DTK Visioning exercise, and the
strategic priorities set out for the SE team. Council recently approved strategic priorities (2023-2027)
that include a focus on special events, highlighting the significance of this community benefit. The city
welcomes the opportunity to work in partnership with the BIA.
The BIA's support ($50,000 for large events, and $40,000 for Christkindl) is essential to the event
portfolio. It is the city's request that the BIA continue its support of special events and the vibrancy and
economic contribution that activations provide to DTK.
Page 24 of 45
Belmont Business Improvement Area
(Belmont BIA)
RFVFNI IF
City of Kitchener BIA Levy
Other Income
Total Revenue
EXPENSES
Administration and General
Improvement Projects
Digital Marketing
Events & Promotions
BIA Boundary Expansion Project
Finance
Marketing
Summer Project
Total Expenses
Net Revenue (Expenses)
Accumulated Surplus, beginning of year
Accumulated Surplus, end of year
Budget Actual Budget
2023 2023 2024
44,822.00 $44,797 48,624
14,100.00 $9,773
58,922.00 $54,570 48,624
39,688.00
$43,005
39,774
1,900.00
$226
3,300
$3,962
9,500
7,750
450
17, 334.00
$0
17, 950.00
$0
76,872.00 $47,193 60,774
-17,950.00 $7,377 -12,150
60,912.00 $60,912 68,289
42,962.00 $68,289 56,139
Note: the $68,289 surplus is made up of $14,789 cash and the $53,500 fixed assets.
Page 25 of 45
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