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RFD- 4220 Business Items   Item #   11. b.    
Regular Council Meeting Agenda   
Meeting Date: 03/08/2021  
Title:    Business Improvement Area - Section 347 Cancellations - Frostad
Department: Corporate Services  
Strategic Vision Element: n/a Related Goal: n/a

Request for Decision Summary
Council's authorization is requested to cancel uncollectible Business Improvement Area levies for 2018 - 2020.

Proposed Motion
That Council authorize cancellation of listed uncollectible Business Improvement Area levies for 2018 - 2020 under section 347 of the Municipal Government Act.
City Council approved the establishment of the City Center Business Improvement Area (BIA) in August 2016 for the purpose of promoting the revitalization and redevelopment of the Spruce Grove City Center.  The Bylaw (C-966-16) further provided for the establishment of the City Center Business Association (CCBA) as the Board for the BIA including the corporate bylaws under which the Board will operate.  The Board determines an annual budget which is submitted to City Council for approval.  At least part of the annual budget is funded by a Business Improvement Levy on businesses located in the BIA zone.  In 2017 the City fully funded the levy as a grant and then began billing for the levy in subsequent years once the assessment roll of businesses could be established.  Thus the City has been billing businesses in the zone for three years from 2018 – 2020.  At this time there are remaining outstanding levies that the City must determine how to deal with.
A Business Improvement Levy is allowed under Section 381 of the Municipal Government Act (MGA) and is governed by the Business Improvement Area Regulation.  Under that regulation the amounts levied to businesses are considered a tax and as such are treated as a business tax under the MGA.  As such if uncollectible amounts are to be reversed, Council would have to make the decision for cancellation under section 347 of the MGA.

Total amounts billed to businesses in the BIA over the last three years amount to $96,000.  Analysis of outstanding accounts has determined that $5,652.16 (5.8%) should be considered for cancellation due to moves out of the area or closures of business or subsequent proof of exempt status.  These amounts and the years involved are shown in the attachment.
If Council chose not to cancel these amounts, they would remain on the City's books as uncollectible accounts.
Finance has worked closely with Economic Development and the CCBA to determine the listing of businesses that are active within the Business Improvement Area  This enabled the determination of amounts that should be recommended for cancellation.  
Economic Development is working collaboratively with the CCBA to address efficiencies in the administration of the Business Improvement Levy.  Addressing these outstanding accounts is part of that wok.

Fiscal Impact
Financial Implications:
The cancellation of these accounts will result in a loss of $5,652.16 to the City of Spruce Grove.
2018-2020 Business Improvement Area Levies Listing

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