Business Improvement Areas - 2023 Operating Budgets - Report 3

There are currently 84 established Business Improvement Areas in the City of Toronto. City Council previously approved the 2023 Operating Budgets for 77 Business Improvement Areas through Report 1 and Report 2 at its meeting on February 7, 2023 (Item EC1.2 ) and March 29, 2023 (Item EC2.2 ). One Business Improvement Area, Historic Queen East, is inactive. Included in this Report 3 is the 2023 Operating Budgets for the remaining 6 Business Improvement Areas for City Council approval. Financing of individual Business Improvement Area Operating Budgets is raised by a special levy on the commercial and industrial properties within the respective Business Improvement Area boundaries. Under current Chapter 19 of the Toronto Municipal Code, the Business Improvement Areas By-law does not have specific provision requiring a Business Improvement Area maintain a certain amount in their accumulated surplus. Should a Business Improvement Area 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 Business Improvement Area 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. As directed by City Council at its meeting on July 19, 2022, the General Manager, Economic Development and Culture will conduct additional review and consultation on other issues impacting Business Improvement Areas. To ensure prudent stewardship of public resources and further strengthen financial management and oversight, the issue of maintaining a minimum balance requirement in the Business Improvement Area accumulated surplus reserves will be part of the By-law review. Based on the outcome of the review, City staff will present recommendations including the potential for amendment to the current Chapter 19 of the Toronto Municipal Code, and report back to Council by the fourth quarter of 2023 or first quarter of 2024. The recommendation in this report reflects the board-adopted 2023 Operating Budgets by the respective Business Improvement Areas' Boards of Management and General Membership. Complete budgets and supporting documentation have been reviewed by City staff to ensure that the 2023 Operating Budgets for Business Improvement Areas reflect Council's approved policies and practices.