TAMRMS#: B06
10.2
REQUEST FOR DECISION
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Bylaw 14/2025 - Business Improvement Area Budget and Tax Rate Bylaw (1st, 2nd & 3rd Readings)
Presented by: Stephen Bannerman, City Assessor, Financial and Strategic Services
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RECOMMENDED MOTION(S)
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1. That the proposed 2025 BIA Budget, as attached to the agenda report entitled “Business Improvement Area Budget & Tax Rate Bylaw” dated April 15, 2025, be approved.
2. That Bylaw 14/2025 be read a first time.
3. That Bylaw 14/2025 be read a second time.
4. That unanimous consent be given for consideration of third reading of Bylaw 14/2025.
5. That Bylaw 14/2025 be read a third time.
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SUMMARY
In accordance with the Business Improvement Area Regulation and Bylaw 21/2023 - Downtown Business Improvement Area Bylaw, the St. Albert Downtown Business Association (DBA) must submit their proposed budget for Council’s approval.
The budget is used to establish a Business Improvement Area (BIA) Tax Rate Bylaw for a designated district of downtown St. Albert in the 2025 taxation year. The BIA budget is established by the SA-DBA Board of Directors and approved by St. Albert City Council.
Details of the initial (2024) tax year have been reported to St. Albert City Council, ratepayers, and businesses owners on the April 8th, at the Standing Committee of the Whole meeting.
ALIGNMENT TO COUNCIL DIRECTION OR MANDATORY STATUTORY PROVISION
The Business Improvement Area Regulation 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.
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 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 involved 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 March 5th the 2024 purposed BIA Budget and Board was approved by Council. Note that Council approved the DBA Board of Directors term from March 5, 2024, to December 31, 2025; There are no proposed changes to the Board membership for 2025.
• On April 16th, 2024, Council approved the 2024 Business Improvement Area Tax and Tax Rate Bylaw (PM-24-06).
• In March of 2025, the DBA prepared the 2025 annual budget for the BIA which includes operational costs, such as services and programs for members.
• April 8th, 2025, Administration and DBA Board members provided a review of the inaugural year of the BIA to the Committee of the Whole.
Preparations for the 2025 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 28th, 2025. 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 be $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, 2025.
STAKEHOLDER COMMUNICATIONS OR ENGAGEMENT
Downtown Stakeholder Communications and Engagement
Over the course of the BIA’s inaugural year, 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 initial year’s approach and process. Both successes and challenges have been identified in 2024 which have been detailed in the April 8th Standing Committee of the Whole One Year Review presentation.
IMPACTS OF RECOMMENDATION(S)
Financial:
The Downtown Business Improvement Area Tax Rate Bylaw (Bylaw 14/2025) 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 2024 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.
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)
- BIA Board and Budget approval by Council (April 2025)
- BIA Tax Rate Bylaw to be passed by Council (April 2025).
In order for the BIA Tax Rate Bylaw to be applicable in 2025, it must be passed before May 1 of this year. First, second, and third readings of Bylaw 14/2025 are scheduled for the same day (April 15, 2025). The MGA provides that a proposed bylaw must not have more than two readings at a Council meeting unless the Council members present unanimously agree to consider third reading at the same meeting.
If unanimous consent for third reading of Bylaw 14/2025 is not granted on April 15, 2025, a special council meeting will have to be scheduled prior to May 1 to receive third reading of Bylaw 14/2025.
Program or Service:
Services associated with municipal Assessment & Taxation were impacted in the initial (2024) tax year with the introduction of a new BIA tax; however, those existing service levels are now in place to continue with the 2025 tax year and beyond. Should the number of BIA business expand in future years the City of St. Albert may investigate additional software.
Organizational:
The City of St. Albert is eager to partner with BIA directors to pass the future 2026 BIA Budget prior to the closing of the City of St. Albert Budget deliberations in December of 2025.
Risks
Legislation requires the BIA 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.
- Initiatives: Downtown Stakeholder Coordination
- Initiative aligned with Strategic Plan: Regional and Sub-Regional Economic Development
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 convene a special meeting of council prior to May 1st to deliberate possible changes to Bylaw 14/2025.
Financial:
Administration’s recommendations are based on the content of the 2024 BIA Assessment Roll as of December 31, 2024.
Compliance and Legal:
None at this time.
Program or Service:
None at this time.
Organizational:
None at this time.
Risks:
None at this time.
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Report Date: April 15, 2025
Author(s): Stephen Bannerman, Senior Manager/City Assessor
Department: Financial and Strategic Services
Department Director: Anne Victoor
Senior Director: Diane McMordie
Chief Administrative Officer: Bill Fletcher