Item - 2024.EC11.6

The Economic and Community Development Committee recommends that: 

1. City Council adopt and certify the 2024 recommended Operating Budgets and Levy requirements of the following Business Improvement Areas:
 

2.  City Council elect to have the subclasses for the commercial and industrial property classes apply for 2024, and to apply the respective BIA special levy rate reductions to the subclasses, all as set out in Appendix C, to the report (March 14, 2024) from the Chief Financial Officer and Treasurer.

This report brings forward Business Improvement Area (BIA) annual Operating Budget for approval by City Council as required by the City of Toronto Act, 2006. City Council approval is required to permit the City to collect funds through a special levy on the rateable commercial and industrial properties within the respective Business Improvement Area boundaries. Special levy rate reductions for the subclasses have been set out in Appendix C, for properties in the subclasses of the commercial and industrial property classes.

The Business Improvement Area is an association, independently managed from the City and operated by local businesses and property owners, joining together to organize, finance, and deliver capital streetscape improvements, and to promote economic development in a district with its own governance structure as set out in Chapter 19 of the Toronto Municipal Code and the City of Toronto Act, 2006.

There are currently 84 established Business Improvement Areas in the City of Toronto. City Council previously approved the 2024 Operating Budgets for 60 Business Improvement Areas through Report 1 at its meeting on February 6, 2024 (Item EC9.2). One Business Improvement Area, Historic Queen East, is inactive. Included in this Report 2 is the 2024 Operating Budgets for the remaining 23 Business Improvement Areas for City Council approval. No City funding is required since the financing of individual Business Improvement Area Operating Budgets is raised by a special levy on the rateable commercial and industrial properties within the respective Business Improvement Area boundaries.

Under current Chapter 19 of the Toronto Municipal Code, the Business Improvement Areas By-law does not have specific provision requiring a Business Improvement Area maintain a certain amount in their accumulated surplus. Should a Business Improvement Area find itself in a deficit, be dissolved or becomes inactive, City Council has the authority to collect funds required and liabilities including interests, through the Business Improvement Area levy as stipulated under the By-law. If a board is dissolved and the liabilities exceed the assets assumed by the City, Council shall recover the difference. As directed by City Council at its meeting on July 19, 2022, the General Manager, Economic Development and Culture will conduct additional review and consultation on other issues impacting Business Improvement Areas. To ensure prudent stewardship of public resources and further strengthen financial management and oversight, the issue of maintaining a minimum balance requirement in the Business Improvement Area accumulated surplus reserves will be part of the By-law review. Based on the outcome of the review, City staff will present recommendations including the potential for amendment to the current Chapter 19 of the Toronto Municipal Code, and report back to Council by the second quarter of 2024.

The recommendation in this report reflects the board-adopted 2024 Operating Budgets by the respective Business Improvement Areas’ Boards of Management and General Membership. Complete budgets and supporting documentation have been reviewed by City staff to ensure that the 2024 Operating Budgets for Business Improvement Areas reflect Council’s approved policies and practices.