TAMRMS#: B06
8.3
REQUEST FOR DECISION
title
Bylaw 15/2026 - 2026 Business Improvement Tax and Tax Rate Bylaw (1st, 2nd & 3rd Readings)
Presented by: Stephen Bannerman, City Assessor, Financial and Strategic Services
label
RECOMMENDED MOTION(S)
recommendation
1. That Bylaw 15/2026 be read a first time.
2. That Bylaw 15/2026 be read a second time.
3. That unanimous consent be given for consideration of third reading of Bylaw 15/2026.
4. That Bylaw 15/2026 be read a third time.
body
SUMMARY
In accordance with the Business Improvement Area Regulation 93/2016 and Bylaw 16/2026, as amended - Downtown Business Improvement Area Bylaw:
• The St. Albert Downtown Business Association (DBA) submitted its proposed budget for Council approval on March 17, 2026. St. Albert City Council has approved both the BIA budget and the 2026 SA-DBA Board of Directors.
• The budget is then used to establish a Business Improvement Area (BIA) Tax and Tax Rate Bylaw for a designated district of downtown St. Albert in the 2026 taxation year.
• Details of the (2025) tax year have previously been reported to St. Albert City Council, ratepayers, and businesses owners as part of the overall review and amendments of Bylaw 21/2023 on March 17th, 2026.
ALIGNMENT TO COUNCIL DIRECTION OR MANDATORY STATUTORY PROVISION
The Business Improvement Area Regulation 93/2016 provides that:
11(1) A board must submit a proposed budget for each calendar year to the council for the council’s approval.
(2) The proposed budget must be submitted at the time and in the form specified by council.
(3) The proposed budget must be a balanced budget and include
(a) the estimated amount of the board’s revenue from every source, including the amount that the board will receive from the municipality in respect of the business improvement area tax, and
(b) the estimated amount of all operating and capital expenditures planned for the year.
20(1) A council of a municipality must pass a business improvement area tax bylaw if there is a business improvement area within the municipality.
(2) A business improvement area tax bylaw or an amendment to it applies to the year in which it is passed only if it is passed before May 1 of that year.
…
(6) A business improvement area tax bylaw may establish maximum and minimum amounts to be paid under it.
21(1) Each council that has passed a business improvement area tax bylaw must pass a business improvement area tax rate bylaw annually.
…
BACKGROUND AND DISCUSSION
Summary of St. Albert’s BIA
A Business Improvement Area (BIA) is a specific geographic area of the city in which businesses combine resources and work together, through a formal association, to enhance the economic development of their area. The St. Albert Downtown Business Association (DBA) is an independent non-profit organization, made up of downtown business owners, that is responsible for the St. Albert BIA.
The DBA receives its revenue from business owners within the BIA. This revenue is collected by means of a Business Improvement Area tax. The annual BIA tax bill is not requesting payment for municipal tax; rather, it is levied for business improvement funds which the City of St. Albert Taxation Department collects on behalf of the BIA.
The BIA is self-described as:
“The St. Albert Business Improvement Area is dedicated to revitalizing and promoting the downtown area as a vibrant community center. Through strategic partnerships, innovative marketing, and community-focused events, we aim to enhance the visibility and appeal of downtown, encouraging both residents and visitors to explore, shop, and engage with local businesses. By fostering an environment that supports business growth, cultural enrichment, and sustainable urban development, we are committed to making Downtown St. Albert a thriving, accessible, and attractive place for everyone.” *
*www.downtownstalbert.ca
In the St. Albert context, the establishment of a Downtown Business Improvement Area has evolved from the following recent steps:
• On September 19, 2023, City Council unanimously approved Bylaw 21/2023, a Bylaw to create a Downtown Business Improvement Area.
• On November 27, 2023, Council approved PM-24-06: That the City matches the downtown Business Improvement Area operating budget up to $50,000 at 100% for 2024, 75% in 2025, and 50% in 2026.
• On April 16th, 2024, Council approved the 2024 Business Improvement Area Tax and Tax Rate Bylaw (PM-24-06).
• April 8th, 2025, Administration and DBA Board members provided a review of the inaugural year of the BIA to the Committee of the Whole.
• March 17th, 2026, Presentation of the BIA Budget, Board, and proposed amendments to Bylaw 21/2023, and approval of proposed amendments to Bylaw 16/2026.
Preparations for the 2026 Combined Tax and Tax Rate Bylaw:
Creating a business tax through the BIA Regulation requires the assessment of businesses within the BIA boundary and creation of the 2025 Business Improvement Area Tax Roll. This has been completed by the Assessment Department. The Department has produced an assessed value for each space a business occupies within the BIA based on square footage and the typical rent for a space (net annual rent value). The assessment is used for taxation purposes only and does not reflect the profitability of a business.
All businesses within the BIA boundary are assessable and will receive an assessment notice. A sample calculation is provided:
• Area(ft²) x Tax Rate = Business Assessment
Business owners within the BIA boundary will be mailed combined assessment and tax notices on May 20th, 2026. Tax notices will have a similar look and feel to property tax notices; however, they differ significantly as these notices will be mailed to the business owner, not the property owner.
Under the authority of section 20(6) of the BIA Regulation, the minimum and maximum amount payable on a business roll located in the BIA boundary will remain $200.00.
BIA Assessment and Tax Notices are also subject to a 60-day review period where assessors are available to answer questions about the BIA and the details of the assessed value.
Similar to property tax, the BIA tax will be due on June 30, 2026.
A proposed change for the 2026 Business Improvement Area Tax and Tax Rate Bylaw includes a proposed $100 penalty for business owners paying after June 30, 2026. Proposed changes from years 2025 to 2026 are found in “Draft Changes to 2025 BIA Bylaw Tax Rate and Tax Rate Bylaw” attached to this report.
STAKEHOLDER COMMUNICATIONS OR ENGAGEMENT
Over the course of the past three years, Administration worked with DBA directors and business within the BIA boundary to assist with implementation of initial downtown beautification projects, the DBA’s strategic plan, and to administer the collection and transfer of BIA taxes and Council approved matching funds to the DBA, in alignment with council direction and motions.
Assessment and Taxation staff created an assessment roll, maintained collection of the levies, and remained available for questions regarding the details of BIA assessments and tax account inquiries.
Administration consulted with municipal peers in the areas of Economic Development and Assessment & Taxation, as well as established downtown business associations.
Best practices from similar municipalities and downtown business associations were incorporated into St. Albert’s approach and process.
The addition of a penalty for the 2026 tax has been communicated with the DBA board of directors. Additional communications occurred at the March 17th council meeting, April 7th Tax Rate Bylaw presentation, and will occur directly through the mailing of Assessment and Taxation notices mailed on May 20th, 2026.
IMPACTS OF RECOMMENDATION(S)
Financial:
The Downtown Business Improvement Area Tax and Tax Rate Bylaw (Bylaw 15/2026) is required annually by the Municipal Government Act and the associated BIA regulation in order for the City of St. Albert to collect tax on behalf of the BIA and transfer the collected tax to the BIA.
Similar to the 2025 tax year, financial risk and considerations include:
• Vacant, exempt, or properties owned by the municipality do not contribute tax to the BIA.
• When a business within the BIA closes or leaves with an outstanding balance owing to the BIA, the municipality and BIA budget will have a shortfall.
• The BIA may be eligible for grant funding from other organizations or other levels of government that could benefit downtown St. Albert.
• It is anticipated that the 2026 recommended penalty will decrease shortfalls and increase collections rates from 65% historically to 85% (projected).
Compliance & Legal:
A BIA is created under the authority of the MGA and the MGA Business Improvement Area Regulation (AR 93/2016). To meet the legislative requirements, the following must be completed for BIA taxes to be collected by the municipality and transferred to a BIA:
• BIA Establishing Bylaw passed by Council (September 2023). Revisions contained in Bylaw 16/2026 passed on March 17th, 2026.
• BIA Board and Budget approval by Council (March 17th, 2026).
• BIA Tax and Tax Rate Bylaw to be passed by Council (Anticipated- April 7th).
Program or Service:
Services associated with municipal Assessment & Taxation were impacted in the initial (2024-2025) tax year with the introduction of the new BIA tax; however, those existing service levels are now in place to continue with the 2026 tax year and beyond. Should the number of BIA businesses expand in future years the City of St. Albert may investigate additional software.
Organizational:
The City of St. Albert wishes to work with BIA directors to pass the future 2027 BIA Budget to better align with the City of St. Albert Budget deliberations in the fall of 2026.
Risks
Legislation requires the BIA Tax Rate and Tax Rate Bylaw to be passed by May 1st annually.
ALIGNMENT TO PRIORITIES IN COUNCIL’S STRATEGIC PLAN
As outlined in the St. Albert Council Strategic Plan (2022-2025):
Strategic Priority Two: Downtown Vibrancy
Foster a downtown where people come to live, gather, celebrate, shop, and do business.
Promote our heritage, arts, and culture by providing a variety of community events and gathering places that build connections and bring people together downtown. Facilitate and support the downtown business community to leverage collaborative opportunities and promote businesses that help create a vibrant downtown.
ALIGNMENT TO LEVELS OF SERVICE DELIVERY
- Property Assessments
- Tax Account Management
- Business Retention and Expansion
- Stakeholder Relations
- Economic Strategy, Planning and Policies
IMPACTS OF ALTERNATIVES CONSIDERED
If Council does not wish to support the motion, the following alternatives could be considered:
ALTERNATIVE 1: Council may direct Administration to provide additional changes to the Bylaw 15/2026 at a meeting of council prior to May 1st, 2026.
Financial:
Administration’s recommendations are based on the content of the 2025 BIA Assessment Roll as of December 31, 2025.
Compliance & Legal:
Per Alberta Regulation 93/2016 the BIA Tax Rate and Tax Rate Bylaw must be passed by May 1st annually.
Program or Service:
N/A
Organizational:
N/A
Risks
N/A
body
Report Date: April 7, 2026
Author(s): Stephen Bannerman
Department: Financial and Strategic Services
Department Director: Anne Victoor
Managing Director: Diane McMordie
Chief Administrative Officer: William Fletcher