Administration has been working with each BIA in terms of budget development and annual reporting. Each of the nine BIA's are currently preparing their 2020 budget submissions and completion of the financial statements for 2019. Once complete a full report will be brought forward for Council's consideration prior to issuance of the 2020 final tax bills.

Until the 2020 budgets and levy are finalized, the BIA's require funds to proceed with planned expenditures. In keeping with prior years, Administration will be providing each BIA with no more than 50% of the 2019 approved budget. The 2020 balance will be provided once the final levies and notices have been issued to the members. BIA's are required to submit annual audited financial statements to the City before payment of final instalments are made.

Risk Analysis:

There is little risk to the municipality with regards to BIA levies. While funds are advanced to each BIA's, those funds are recovered through a separate charge/levy to the membership on the annual property tax bill. Property taxes are secured in that they are attached to the property and not the member. Therefore should a property owner fail to make a payment of the annual charge, it can be recovered through subsequent property owners or collection action.

As with municipal and education taxes, the BIA final levy is based on the BIA rate and the combined assessment values of member properties located in the BIA district (subject to some min/max values as chosen by the individual BIA's). There may be some risk to the BIA's should there be changes in assessed values, either positive or negative, which may affect the total amount to be recovered. To mitigate this risk and to avoid large fluctuations, which could result in a substantial repayment to the City, Administration withholds a 5% allowance from each year's levy, which is released at the end of each year.

Financial Matters:

Based upon the 2019 approved budgets an instalment of no more than 50% of the prior year approved levy will be provided to each BIA in the first half of 2020. This instalment will be subject to any adjustments as a result of the 2019 reconciliation with the BIA and further subject to compliance with the requirement to provide audited financial statements and satisfactory responses to other Administrative requests. In addition, for those BIA's subject to capital project repayments, the installment will be reduced by 50% of the repayment.