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RFD- 3984 Bylaws   Item #   10. e.    
Regular Council Meeting Agenda
Meeting Date: 05/25/2020  
Title:    C-1115-20 - 2020 Business Improvement Area Tax Rate Bylaw - Second and Third Reading - Boje
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.

Request for Decision Summary
Second and third readings of the 2020 Business Improvement Area Tax Rate Bylaw are being brought forward for Council's consideration. The 2020 Business Improvement Area Tax Rate Bylaw will authorize the tax rate sufficient to raise the amount approved to be raised through taxation in the recommended City Centre Business Association's (CCBA) budget which was approved by Council. The approved amount to be raised through taxation is first paid to the Association and this cost is recovered by the City through collection of the Business Improvement Area Tax levies.

Proposed Motion
That second reading be given to Bylaw C-1115-20 - 2020 Business Improvement Area Tax Rate Bylaw.
That third reading be given to Bylaw C-1115-20 - 2020 Business Improvement Area Tax Rate Bylaw.
The 2020 approved budget for the Business Improvement Area (BIA) includes $32,000 to be raised through taxation.  Legislation provides for three 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 $14.64 - $1,706.73.
  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 CCBA, Administration recommends a uniform rate (method #3) for 2020 as the most equitable approach. The BIA Assessment Roll contains:
  • 210 total roll count; each roll represents individual sites within the BIA.
  • 163 of the 210 are taxable business sites.
  • 31 of the 210 sites are vacant and non taxable sites.
  • 16 of the 210 are occupied sites which are exempt from taxation as explained in the report presented to Council on May 11, 2020 supporting first reading of bylaw C-1114-20 - 2020 Business Improvement Area Tax Bylaw.
Council may request that Administration 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.

If a new bylaw to support a different rate structure is required, billing of the levy will have to occur later than May 31.
The City will notify the CCBA of the date notices will be mailed. Advertising will be done through the Examiner, City website, social media and reader boards.

Combined Assessment and Tax Notices for the BIA will be issued prior to the end of May and would be due within 37 days following the date of mailing.
Proposed Bylaw C-1115-20

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