TAMRMS#: B06
9.2
REQUEST FOR DECISION
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Bylaw 16/2026 Downtown Business Improvement Area Bylaw Amendment
Presented by: Jared Huston, Manager, Business Retention & Expansion; Mike Erickson, Director, Economic Development.
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RECOMMENDED MOTION(S)
recommendation
1. That Bylaw 16/2026 be read a first time.
2. That Bylaw 16/2026 be read a second time.
3. That unanimous consent be given for consideration of third reading of Bylaw 16/2026.
4. That Bylaw 16/2026 be read a third time.
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SUMMARY
The St. Albert Downtown Business Association (DBA) is an independent non-profit organization consisting of downtown business owners that governs and administers the Business Improvement Area (BIA) in downtown St. Albert.
The DBA has been in operation for approximately two years. Through their establishment and inaugural years of operation, Administration and the DBA Board have identified opportunities to amend the Downtown Business Improvement Area Bylaw to help enhance the governance, financial management, and reporting of the DBA and coordination between the two organizations.
Additionally, in accordance with the Municipal Government Act Business Improvement Area Regulation and the Downtown Business Improvement Area Bylaw, the DBA must submit their proposed Board and budget annually for Council’s approval.
The budget is used to establish the BIA’s tax rate through the Business Improvement Area Tax & Rate Bylaw, which will be presented to Council at a future Council meeting.
ALIGNMENT TO COUNCIL DIRECTION OR MANDATORY STATUTORY PROVISION
The Municipal Government Act Business Improvement Area Regulation governs how municipalities establish, operate, or disestablish BIAs.
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. Plus an additional $10,000 for the same three years to support the Snowflake Festival and the funds come from the tax base.
On September 19, 2023, Council approved the Downtown Business Improvement Area Bylaw (Bylaw 21/2023), establishing the Downtown Business Improvement Area within downtown St. Albert and approved the following Postponed Motion:
PM-24-004
That $24,000 and a 0.2 FTE is added to the 2024 operating budget for the development and management of a Business Improvement Area.
BACKGROUND AND DISCUSSION
On November 27, 2023, Council approved PM-24-06, which provided matching municipal dollars to the downtown Business Improvement Area operating budget at:
• 100% of the BIA operating budget in 2024,
• 75% of the BIA operating budget in 2025,
• and 50% of the BIA operating budget in 2026.
On March 5, 2024, Council approved the BIA’s inaugural Board of Directors and budget. Later that year, members of the Board, registered the St. Albert Downtown Business Association. The DBA serves as the non-profit organization that manages the Business Improvement Area.
On April 8, 2025, Administration and DBA Board members provided a review of the inaugural year of the BIA to the Standing Committee of the Whole.
On April 15, 2025, Council approved the Board and annual budget of the St. Albert Downtown Business Association.
As a volunteer-led organization in its first two years of operation, the DBA has been developing its governance structure, financial management practices, and reporting processes while beginning to deliver programming and initiatives to support downtown businesses. City Administration has supported the organization through regular coordination, attendance at Board meetings, and assistance with governance and reporting expectations associated with operating within a legislated BIA structure.
Governance Enhancements
Since the DBA’s inception, their governance practices have matured as the organization has worked to build operational capacity. The table below shows the Board composition, since establishment.
|
Period |
Roles |
|
|
President |
Vice President |
Events / Secretary |
Marketing Director |
Treasurer |
Members-at-Large |
|
2024 |
Shannon Roche |
Alena Brown |
Leah Louden |
Gwen Wilkinson, Jeannine Borrowmans |
|
Jennifer Parker |
|
2025 |
Shannon Roche |
Alena Brown |
Leah Louden |
|
|
Jennifer Parker, Kim Cardinal, Dan St. Pierre, Mike Killick |
|
2026 (proposed) |
Shannon Roche |
Alena Brown |
Leah Louden |
Chelsea Tipping |
|
Jennifer Parker, Kim Cardinal, Dan St. Pierre, Mike Killick |
The DBA introduced Members-at-Large to the structure of their Board to assist with administrative needs. While Members-at-Large support volunteer participation and provide additional capacity and expertise to the DBA, distinction from voting Board positions has not always been formally documented.
To provide greater clarity and consistency moving forward, Administration has worked with the DBA to develop supporting governance tools, to help guide the election and documentation of Board positions. The proposed BIA Bylaw amendments support these efforts by providing clearer expectations for Board composition and governance practices while maintaining the volunteer-driven nature of the organization. The addition of “Non-voting Members” to the BIA Bylaw will help delineate between appointed Board members who have the authority to vote on BIA decisions, and those members who do not have the authority to vote, but may provide assistance to the BIA as well as attend meetings, participate in discussions, provide advice or expertise to the Board, and receive non-confidential Board materials.
Financial Enhancements
Revenue for the BIA is collected from business owners within the business improvement area by means of a Business Improvement Area tax, which is collected by the City’s Assessment & Taxation branch and transferred to the DBA.
The DBA’s fiscal year ends December 31. It is Administration’s understanding that the 2026 BIA budget was prepared using estimated 2025 closing figures. Administration has noted some financial discrepancies between the 2025 closing figures and the proposed 2026 budget. The BIA 2025 audited financial statements are being prepared by organization’s external accountant.
The BIA proposed 2026 budget reflects three primary sources of funds:
• BIA Tax - $22,400
These funds collected by the City from businesses within the BIA through annual BIA Tax and transferred to the DBA.
• City Matching Funds - $11,200
The City provides supplemental matching funds to the DBA, in accordance with 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.
• Carry Forward - $32,800
As a budgetary practice, the DBA has carried forward unspent funds from previous budget years.
Funds carried forward from previous years:
o $10,400 carried forward from their 2024 budget to their 2025 budget.
o $32,800 is proposed to be carried forward from their 2025 budget to their 2026 budget.
Note that the City transferred $24,000, associated with BIA taxes, to the DBA in December of 2025. This contributed to the larger carry-forward in their proposed 2026 budget.
As Administration’s assessment of the DBA’s financial records are limited to the information provided DBA, Administration is proposing amendments to the BIA Bylaw, aimed at improving consistency and clarity of financial reporting for the benefit of BIA members, City Council, and City Administration.
Additionally, Administration has identified an opportunity to provide improved clarity for disbursements of funding to the DBA, creating defined milestones that initiate payments, rather than relying on the written requests. Amendments propose that:
• the City will issue 50% following Council approval of the BDA’s budget, and
• the City will issue the remaining 50% following receipt of an annual report and financial statement.
This approach provides predictable operating funds early in the year while ensuring continued compliance with governance and reporting requirements before the full amount is disbursed.
BIA Tax Compliance
Compliance of payment of the BIA tax by businesses within the St. Albert BIA, has historically been around 60%, which is lower than other municipal comparators. Despite Administration’s increased communication efforts to raise awareness and understanding of the BIA tax amongst downtown business owners in 2025, compliance remained relatively unchanged.
Under the current BIA legislation, the City is responsible for remitting approved funding to the DBA regardless of the rate of BIA tax collection compliance, meaning that the City has incurred additional expenditures of $19,200 over the last two years, to account for the BIA tax collection shortfall.
|
Year |
Total Funding |
Total Collected |
Uncollected |
|
2024 |
$25,000 |
$14,600 |
$10,400 |
|
2025 |
$22,400 |
$13,600 |
$8,800 |
Through the BIA Tax and Tax Rate Bylaw, which will be presented at a future Council meeting, Administration intends to bring forward a new $100 late payment penalty to assist with compliance and reduce the shortfall. The goal of this new measure is to increase compliance to approximately 85%, which is in-line with municipal comparators.
Reporting Enhancements
Currently, the BIA Bylaw allows reporting timelines to be determined by Council direction. This has resulted in some ambiguity between the City and the DBA. The proposed amendment to the BIA Bylaw establishes a defined reporting window, within six months of the DBA’s fiscal year end, unless otherwise directed by Council. This amendment provides greater clarity for both Administration and the DBA and supports improved planning for reporting and funding timelines.
STAKEHOLDER COMMUNICATIONS OR ENGAGEMENT
Administration has discussed the proposed governance and operational amendments in principle with DBA Board, including clarifying funding disbursement timing, establishing defined reporting timelines, and strengthening Board documentation practices.
IMPACTS OF RECOMMENDATION(S)
Financial:
Administration expects new late penalties and enforcement measures to help increase BIA tax payment compliance rates. If compliance rates are increased to the target of 85%, it is expected that the City would collect more in taxes, reducing the City’s annual shortfall.
It is unlikely that 100% compliance would be realized, as it expected that a few businesses will relocate outside of the downtown or close before taxes are collected each year.
Additionally, Administration can exercise provisions within the Business Licence Bylaw, which will permit the City to not renew business licences for businesses within the BIA that do not pay their BIA tax.
Compliance & Legal:
The proposed amendments to the BIA Bylaw are aligned with the Municipal Government Act and Business Improvement Area Regulation.
Program or Service:
None.
Organizational:
Proposed amendments are expected to provide organizational and operational efficiencies, as clearer processes, defined timelines, and improved documentation standards are expected to reduce the Administration’s workload in supporting the Downtown Business Association with governance, financial, and operation maturation.
Risks
Proposed governance enhancements may increase administrative workload and cost to the DBA, thus reducing their operational capacity to enhance downtown vibrancy.
ALIGNMENT TO PRIORITIES IN COUNCIL’S STRATEGIC PLAN
Aligns to Council’s priorities:
• Economic prosperity
• Downtown vibrancy
• Financial sustainability
ALIGNMENT TO LEVELS OF SERVICE DELIVERY
• Business Retention and Expansion
• Stakeholder Relations
• Economic Strategy, Planning and Policies
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Report Date: March 17, 2026
Author(s): Jared Huston, Manager Business Retention & Expansion
Department: Economic Development
Department Director: Michael Erickson
Managing Director: Adryan Slaght
Chief Administrative Officer: William Fletcher