Item - 2026.EC27.8

The Economic and Community Development Committee recommends that:

1. City Council adopt and certify the 2026 recommended Operating Budgets and Levy requirements of the following Business Improvement Areas:

2. City Council adopt and certify the amended 2026 recommended Levy Funds requirements of the Upper Avenue Business Improvement Area to $187,298.

3. City Council elect to have the subclasses for the commercial and industrial property classes apply for 2026, and to apply the respective Business Improvement Area special levy rate reductions to the subclasses, all as set out in Appendix C to the report (March 23, 2026) 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 BIA 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 BIA 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 86 established BIAs in the City of Toronto. City Council previously approved the 2026 Operating Budgets for 64 BIAs through Report 1 at its meeting on February 4, 2026 (Item 2026.CC36.5). Included in this Report 2 is the 2026 Operating Budgets for the 21 BIAs for City Council approval. One BIA, Historic Queen East, is inactive. Report 2 also contains a recommended technical adjustment to 2026 Levy Funds Required outlined in Recommendation 1 of Report 1, specifically pertaining to the Upper Avenue BIA. 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 BIA boundaries.

Under current Chapter 19 of the Toronto Municipal Code, the Business Improvement Areas By-law does not have specific provision requiring a BIA maintain a certain amount in their accumulated surplus. Should a BIA 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 BIA 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.

The recommendation in this report reflects the board-adopted 2026 Operating Budgets by the respective BIAs’ Boards of Management and General Membership. Complete budgets and supporting documentation have been reviewed by City staff to ensure that the 2026 Operating Budgets for BIAs reflect Council’s approved policies and practices.