ADMINISTRATIVE REPORT
Date: February 13, 1997
Dept. File No. FW
C.C. File: 1601-1/8000
TO: Vancouver City Council
FROM: Director of City Plans
SUBJECT: Approval of Business Improvement Area (BIA) Budgets
RECOMMENDATION
THAT Council approve the BIA Business Promotion Schemes and Budgets
for the 1997-1998 year listed below and instruct staff to bring
forward the appropriate rating by-laws:
BIA LEVY
Downtown $500,000
Robson 227,000
Kerrisdale 132,000
Mount Pleasant 91,000
Gastown 244,000
GENERAL MANAGER'S COMMENTS
The General Manager of Community Services RECOMMENDS approval.
COUNCIL POLICY
Each Fall, BIA Boards are required to obtain approval of their
forthcoming year's promotion plan and budget from their members at a
general meeting and from City Council.
PURPOSE
The purpose of this report is to request Council's approval of the
1997-1998 budgets for all five BIAs, and to instruct staff to prepare
appropriate rating by-laws.
BACKGROUND
Funding for Business Improvement Areas is advanced by Council and
recovered through property taxes. Each year Council approves BIA
budgets and staff prepare rating by-laws for Council's enactment. After
the rating by-laws are enacted, funds are released to the BIA societies
in April and recovered through subsequent property taxes. The 1997-98
budgets for the five BIAs are presented in this report.
DOWNTOWN BIA BUSINESS PROMOTION SCHEME AND BUDGET 1997-98
The Downtown Vancouver Business Improvement Association (DVBIA) has
submitted the following business promotion scheme and budget for
Council's approval and has requested a recoverable grant of $500,000 for
1997-1998.
REVENUE
a. Levy Request $500,000
b. Carried over funds, projected interest,
GST rebate 120,151
TOTAL $620,151
EXPENDITURES
a. Retail Marketing and Promotion $139,681
b. Research 8,000
c. Commercial/Business Development 193,180
d. Communications 70,991
e. Office Expenses & Administrative Costs 140,000
TOTAL $551,852
Projected Operating Fund at Year End $ 68,299
The business promotion scheme was approved by the majority of members
present at the annual general meeting held on September 26, 1996. The
Downtown Vancouver BIA accrued a surplus in its first year of operation,
when the manager changed. It took several months to find a suitable
replacement and as a result some programs were not completed. The BIA
has been slowly consuming its surplus by spending an extra $45,000 a
year on programs. Details of the budget are provided in Appendix A.
This is the third year of their second five-year mandate.
ROBSON STREET BIA BUSINESS PROMOTION SCHEME AND BUDGET 1997-1998
The Robson Street Business Association (RSBA) has submitted the
following business promotion scheme and budget for Council's approval
and has requested a recoverable grant of $227,000 for 1997-1998.
EXPENDITURES
a. Marketing, Promotions $138,704
b. Community Relations 19,750
c. Street Enhancement 51,500
d. Office Expenses, Administrative Costs,
and Contingency 67,046
TOTAL $277,000
REVENUE
a. Levy Request $227,000
b. Carried over funds, projected
interest & GST rebate 50,000
TOTAL $277,000
Projected Operating Fund at Year End $ NIL
The business promotion scheme was approved by the majority of members
present at the annual general meeting held on September 25, 1996. See
Appendix B page one. At the time of the annual general meeting the BIA
had a surplus of $166,547. The members approved spending this surplus,
before March 31, 1997 on: the items described in Appendix B page two,
and on reducing the 1997-98 levy request from $238,296 to $227,000.
However, BIA representatives now anticipate that they will not be able
to complete all of the projects by March 31, 1997 and a surplus of
$40,000 is expected. The BIA will carry forward this $40,000 (plus an
estimated $10,000 from interest and GST rebates) into the 1997-98
revenue, resulting in a $277,000 budget for 1997-98. The incomplete
projects will be undertaken during the 1997-98 year. This is the second
year of their second five-year mandate.
KERRISDALE BIA BUSINESS PROMOTION SCHEME AND BUDGET FOR 1997-98
The Kerrisdale Business Association (KBA) has submitted the following
business promotion scheme and budget for Council's approval and has
requested a recoverable grant of $132,000 for 1997-1998.
REVENUE
a. Levy Request $132,000
b. Carried over funds, projected interest,
and GST rebate 20,000
TOTAL $ 152,000
EXPENDITURES
a. Marketing, Promotions, Communications $60,000
b. Planning, Beautification 53,000
c. Office Expenses & Administrative Costs 29,000
d. Contingency 10,000
TOTAL $152,000
Projected Operating Fund at Year End $ NIL
The business promotion scheme was approved by the majority of members
present at the annual general meeting held on September 25, 1995. The
Kerrisdale BIA acquired surplus funds after receiving a $20,000
donation. These funds are earmarked to buy benches. Further details of
the budget are provided in Appendix C. This is the second year of their
second five-year mandate.
GASTOWN BIA BUSINESS PROMOTION SCHEME AND BUDGET FOR 1997-98
The Gastown Business Improvement Society (GBIS) has submitted the
following business promotion scheme and budget for Council's approval
and has requested a recoverable grant of $244,000 for 1997-1998.
REVENUE
a. Levy Request $244,000
b. Carried over funds, projected interest,
and GST rebate 134,000
TOTAL $378,000
EXPENDITURES
a. Marketing and Promotion, Research $144,000
b. Street Enhancement, Security Program 124,000
c. Salaries and Operating Expenses 86,000
d. Contingency 10,000
TOTAL $364,000
Projected Operating Fund at Year End $14,000
The business promotion scheme was approved by the majority of members
present at the annual general meeting held on September 18, 1996. At
the annual general meeting the GBIS president discussed the surplus
funds and how they would be spent on a traffic study, marketing studies
and a visioning exercise. The surplus accrued because of delays in the
completion of some programs. As well, the BIA has been very successful
in obtaining government grants. Details of the budget are provided in
Appendix D. This is the fourth year of their second five-year mandate.
MOUNT PLEASANT BIA BUSINESS PROMOTION SCHEME & BUDGET FOR 1997-98
The Mount Pleasant Commercial Improvement Society (MPCIS) has submitted
the following business promotion scheme and budget for Council's
approval and has requested a recoverable grant of $91,000 for 1997-1998.
REVENUE
a. Levy Request $ 91,000
b. Carried over funds, projected interest,
and GST rebate 20,000
TOTAL $111,000
EXPENDITURES
a. Marketing & Promotions, Communications $20,400
b. Street Enhancement 37,900
c. Office Expenses 15,700
d. Salaries 37,000
TOTAL $111,000
Projected Operating Fund at Year End $ NIL
The business promotion scheme was approved by the majority of members
present at the annual general meeting held on October 16, 1996. The BIA
reports that it accrued a surplus because the completion of some
programs are taking longer than originally expected. In addition, the
BIA received a $5,000 provincial grant. The board anticipates that the
surplus will be consumed within the 1997-98 fiscal year. Details of the
budget are provided in Appendix E. This is the fourth year of their
second five-year mandate.
SUMMARY
All the BIAs have complied with the requirements set out in the City's
BIA Grant Allocation By-law and the City's operational guidelines (see
Appendices F and G). City staff have reviewed the audited financial
statements of all the BIAs. The proposed Business Promotion Schemes are
in keeping with the spirit of BIA legislation. Staff recommend approval
of the BIAs' 1997-1998 budgets.
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