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RFD- 4287 Bylaws   Item #   10. g.    
Regular Council Meeting Agenda   
Meeting Date: 04/12/2021  
Title:    C-1157-21 - 2021 Business Improvement Area Tax Rate Bylaw - Second Reading - Frostad
Department: Corporate Services  
Strategic Vision Element: This topic relates to all three of the City’s strategic vision elements contained in Council’s Strategic Plan Related Goal: Spruce Grove has a robust, growing economic base that generates increased revenues to support the City’s high standards for services and programs.

Information
Request for Decision Summary
Second reading of Bylaw C-1157-21 - 2021 Business Improvement Area Tax Rate Bylaw is being brought forward for Council's consideration.  This bylaw will approve a tax rate sufficient to raise the funds to cover the City Centre Business Association 2021 budget request.  The approved amount to be raised through taxation is first paid to the Association and then recovered by the City through the collection of the Business Improvement Area Tax levies.

Proposed Motion
That second reading be given to Bylaw C-1157-21 - 2021 Business Improvement Area Tax Rate Bylaw.

Background/Analysis
The 2021 approved budget for the Business Improvement Area (BIA) includes $32,000 to be raised through taxation.  Legislation provides for 3 methods of calculating a BIA tax rate, each having their own effect on equity in distribution of the tax burden.
  1. Application of a tax rate to the assessment valuations, as done with property taxes, which would result in levies ranging between $43.27 and $4,355.76.
  2. Multiple tax rates if Council considers that some BIA activities are of greater benefit to businesses in one or more parts of the area.
  3. A uniform rate throughout the zone, determined by dividing the approved amount to be raised through taxation by the number of taxable businesses as recorded on the Assessment Roll.
In consideration of the inclusive activities of the City Centre Business Association, Administration recommends a uniform rate (method #3) for 2021 as the most equitable approach.  This approach has been used annually since the commencement of the BIA tax rate in 2016. The BIA Assessment Roll contains:
  • 208 total roll count; each roll represents individual sites within the BIA.
  • 155 of the 208 are taxable business sites.
  • 37 of the 208 sites are vacant/inactive sites.
  • 16 of the 208 are occupied sites which are exempt from taxation as explained in the report presented to Council on March 23, 2021 supporting first reading of Bylaw C-1156-21 - 2021 Business Improvement Area Tax Bylaw.
Options/Alternatives
Council may direct Administration to prepare a new bylaw in support of either method #1 or #2.  A decision to support method #2 would require the designation of areas based on benefit to businesses.
Consultation/Engagement
N/A
Implementation/Communication
The City will notify the City Centre Business Association of the date notices will be mailed.  Advertising will be done through the Examiner, City website, social media, and reader boards.
Impacts
N/A

Fiscal Impact
Financial Implications:
$32,000 will be raised through taxation, paid to the City Centre Business Association for the 2021 approved requisition and recovered by the City through collection of the Business Improvement Area Tax levies.
Attachments
Proposed Bylaw C-1157-21 2021 BIA Tax Rate Bylaw

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