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191024 BIA AGDTillsonburg Business Improvement Area Meeting Agenda Board Meeting of Thursday, October 24th, 2019 Carriage Hall 7:30 am – 9:30 am Breakfast at 7:00 am 1.CALL TO ORDER: Time: _______ QUORUM:Count members present Guests present: 2.ADOPTION OF THE AGENDA: a.moved by: ______________seconded by: _____________ And resolved that the agenda as prepared for the BIA Board of Management meeting for Thursday, October 24th, 2019 be adopted. 3.DISCLOSURE OF PECUNIARY INTEREST AND THE GENERAL NATURE THEREOF: 4.ADOPTION OF THE MINUTES from the board meeting of September 19th, 2019: (Attached) a.moved by: _______________ seconded by: _______________ And resolved that the minutes, as prepared for the meeting of September 19th, 2019 be adopted. 5.DELEGATIONS: (10 minutes) a.Chris Appleton – Good, Redden, Klosler: presentation and discussion of 2018 BIA audited financial statements. There is no material change vs. the draft originally received back on June 11, 2019. As discussed previously, we began the 2019 FY with more of surplus than previously thought and budgeted for due to timing issues of FIP payments, debt servicing costs which did not get allocated to 2018 properly and the shortage of staffing throughout 2018 FY. Discussion. 1 b. moved by: _______________ seconded by: _______________ And resolved that the 2018 audited financial statements, as prepared by Chris Appleton of Good, Redden, Klosler be received; and further, that the statements be presented to the full AGM membership at the upcoming AGM on November 26th, 2019. 6. FINANCIAL REPORT: Funds on deposit at CIBC: as at 9/30/2019: $109,666.70 Funds on deposit at First-Ontario: as at 9/30/2019: $65,794.82 Remaining funds due to the BIA from the Town: Sobey’s: $2,500 + YTD shortfall from incorrect EFT: $12,465.75 + Rona overpayment discrepancy: $1,600 + Q4 payment: $34,155.45 + HST reimbursement: +/- $21,000 = $71,721.20 All capital projects for 2019 have been paid with the exception of the aluminum chairs. There is one outstanding invoice for refurbishment of the focal point signs which will be paid with the next run of payables – on or about November 1st, 2019. We are still awaiting reimbursement of student/summer labour: $6,000 +/- estimated (in process of being paid from the Multi-Service Centre). Monthly income and expense statements will be handed out at the meeting. 7. 2020 BUDGET: The approved budget now moves to the AGM presentation in November. The changes have been made and attached to the minutes for the September 19th, 2019 meeting. Any questions or comments from the board? See attached AGM agenda. 8. AGM preparations: BIA staff will be making all of the necessary preparations for the upcoming AGM. The evening will be multi-purposed to including awards. There will be a social hour followed by hot meal and then the awards and business meetings. The proposed AGM agenda, budget summary, voting & ID guidelines and other information is attached for the Board’s review. 9. COUNTY OF OXFORD PLANNING REPORTS: Follow-up and feedback. 2 10. EXECUTIVE DIRECTOR’S REPORT: To coincide with the Fall Home Tour, the downtown furniture, tables, plants, pots and trees will be taken down on Sunday, October 27th. I need volunteers to help us get this done. The Board Chair is getting us a truck and trailer. Help is necessary as staff cannot do this on their own; without great difficulty. The ED has been meeting with various stakeholders on the 2020 initiatives. BIA staff met with the Tillsonburg Horticultural Society and they will no longer be undertaking the 4-season urn program in 2020. The BIA will be taking over the leadership of this program as it does work, (aesthetically), and can possible be a way to increase revenues. BIA staff has begun the process of applying for various grants. Both BIA staff continues to sit on the Turtlefest Executive Committee to ensure successful execution of the 10th anniversary Turtlefest event in 2020. It has not yet been determined whether the event will be a 2 or 3 day event. The ED has written the town regarding issues with the levy funds being received fully, properly and with the requisite details necessary for proper bookkeeping. See the financial report above for specifics. The ED is still working on a complete report of issues that are apparent in the BIA assessment role documentation. The ED has started a logging system for any assessment changes that are visible in the downtown such as new uses, vacant spaces filed, new assessed properties – (253 Broadway, Tillsonburg Dental), etc. The BIA office has still not received a corrected invoice from Staples Corporate for the aluminum chairs received back in May. The Rona overpayment issue has still not been corrected. The ED is following up on this issue. The summer students will have their last shift on Sunday, October 27th.. There are several new businesses downtown which have opened in the past few weeks. BIA staff has visited each of these businesses and have welcomed them to our downtown. BIA staff has been active with communication blasts about various matters. A great deal of work has been undertaken by the Promotions Committee. The EMC has spent a great deal of time on the award nominations for presentation at the AGM. BIA staff will be ordering the awards to ensure they are received in advance of award night. BIA staff will be testing alternative holiday decorations since there are available plug-ins. There is a 2020 beautifications planning meeting on Friday, October 25th at town corporate offices which the ED will be attending. There has been no town feedback received about the 2020 budget asks other that all key staff have been made aware of what the board has approved. The ED has written and sent letters to key stakeholders to ask them to make contributions to our programs for 2020 including the power upgrades, plaza refurbishment, Brent Raynor of the digital sign supplier believes the LED signs can be made to work properly. He’s away on vacation and will be working with the EMC to download updated software and finding a solution to our conundrum. 3 11. EVENTS AND MARKETING CO-ORDINATOR’S REPORT: Update on all activities including the planning and execution of remaining 2019 initiatives: a. Halloween at the BIA office: promote a stop for the kids at the BIA office on October 31st – there will be downtown goody-bags and draws for prizes just for people visiting the BIA office on Halloween afternoon/evening. b. BIA AGM awards – final voting is underway c. Christmas Crawl upcoming December 6/7th d. 2020 planning underway e. Social media metrics update 12. Façade Improvement Program update: David Frei has been busy working on the various renderings – the last project drawings for 2019 are for Joseph’s Furniture. The weather will prevent remaining works to be completed for projects that are in the pipeline with the exception of J. Goosen’s project which is underway and is expected to be completed prior to the end of 2019. 13. ROUNDTABLE: 14. NEXT MEETINGS: a. Regular: Thursday, November 21st, 2019 at Carriage Hall – 7:00 am breakfast, 7:30 am meeting b. Annual General Meeting: Tuesday, November 26th. 2019 – Proposed genda attached. 15. MOTION TO ADJOURN: Time of adjournment: __________ a.m. a. moved by: _______________ b. seconded by: ________________ 4 Downtown Tillsonburg BIA As a member of the Tillsonburg BIA, you are invited to attend our Annual General Meeting. Please note that only one person, per member organization is permitted to vote. ANNUAL GENERAL MEETING AGENDA Tuesday, November 26, 2019 5:00 to 8:00 pm – Social hour 5-6 pm; dinner at 6 pm; business meeting and awards at 7 pm CARRIAGE HALL, 25 Brock Street West, Tillsonburg 1. Call to order 2. Declaration of pecuniary interest/conflict of interest 3. Welcome & introductions 4. Motion to adopt the Agenda MOTION 5. Motion to approve the Minutes of the 2018 AGM MOTION 6. Chair’s Report MOTION 7. Treasurer’s Report MOTION *Approval of FY 2018 Audited Statements (Good, Redden, Klosler) *Appointment of FY 2019 Auditor (Millard, Rouse, Rosebrugh) 8. 2020 Budget MOTION *Attached: 2020 budget 9. New business 10. Motion to adjourn the meeting MOTION The purpose of this meeting is to decide on the Downtown Tillsonburg BIA’s programs and budget for 2020 (see over) and general program. This program is paid for by a special levy charged to commercial and industrial property owners and non-residential tenants of such properties. As a member of the Downtown Tillsonburg BIA, the best way to participate in the decisions of the BIA is making on your behalf, is to get involved. If you wish to obtain a copy of the audited financial statement, please contact BIA staff. To attend, please RSVP to the BIA office, Mark Renaud or Karlee Slattery at: m.renaud@tillsonburgbia.ca or k.slattery@tillsonburgbia.ca Please forward a copy of this notice to your non-residential tenants. 5 Proof of BIA membership may be required. Please bring photo ID and either a business card, utility bill showing business name/tenant name and address or your Town of Tillsonburg property tax bill. Only members of the Downtown Tillsonburg BIA, and legal representatives of BIA members (proof required), are eligible to vote at the Annual General Meeting. The Ontario Municipal Act states that Business Improvement Area Members are defined as “all persons who own rateable property in a business property class who are non- residential tenants of a rateable property in a business property class in a business improvement area.” Downtown Tillsonburg BIA - 2020 BIA Budget Summary of Revenues & Expenditures 2018 Actual Audited 2019 Approved Budget 2019 Projected (forecast) 2020 Proposed Budget Revenues: BIA Levy (requirement from taxation) 127,217 136,621 136,621 139,450 Town contribution to Façade Program 25,000 25,000 25,000 31,000 Other income & funding inc. SJS, sponsorships, Turtlefest, banner program 3,525 13,264 19,137 55,220 HST rebate 13,111 15,000 20,063 14,336 Interest income 77 2,220 960 1,010 Rock Developments-Sobey’s agreement 2,500 2,500 2,500 2,500 Contribution from accumulated surplus 0 0 70,000 46,000 Total Revenues: 171,722 194,605 274,281 289,516 Levy as % of total revenues 74.1% 70.2% 53.7% 48.2% Expenditures: General, administrative + operations (including payroll, office and day to day expenses) 29,593 84,673 84,377 125,691 Debt principle & interest 8,989 11,628 25,067 22,504 Debt P&I payment as a % of levy: 7.1% 8.5% 18.3% 17.6% HST (1.76%) 100% of GST, 78% of PST 14,251 20,000 21,808 15,583 Capital, repair & special projects 6,734 500 15,978 23,000 Marketing, events & advertising (includes cost of running events) 7,806 18,250 9,191 24,000 Façade Improvement Program 8 addresses: Cameron/Curtis/Goosens/VanRiesen- Pembleton & $2,500 in renderings 25,000 50,000 81,000* 62,000 Beautifications – plants, street furniture, umbrellas, trees, waste containers 6,785 13,250 39,000 11,000 Capital reserve provision (*NEW) 0 0 0 2,869 Operating reserve provision (*NEW) 0 0 0 2,869 Total Expenditures: 94,158 194,605 284,281 289,516 Net Revenue/(Deficit) +77,564 0 0 0 Summary of Accumulated Surplus: (cash based) *timing of payment for FIP projects *final payment of $4,495 due 03/31/20 from refinancing Beginning Balance 106,284 192,783 220,345 170,345 Change in Accumulated Surplus +114,061 0 -70,000 -40,262 Ending Balance 220,345 192,783 170,345 130,083 Downtown Tillsonburg BIA – 20 Oxford Street, TILLSONBURG, ON N4G2G1 Executive Director – Mark Renaud m.renaud@tillsonburgbia.ca 519-403-6352 Event’s & Marketing Co-ordinator – Karlee Slattery k.slattery@tillsonburgbia.ca 519-494-6882 6 Tillsonburg Business Improvement Area Meeting Minutes Board Meeting of Thursday, September 19th, 2019 Carriage Hall 7:30 am – 9:26 am 1. CALL TO ORDER: Time: 7:36 a.m. QUORUM: YES, 8/9 MEMBERS PRESENT Members present: C. Tomico, C. Heutinck, M. Tedesco, J. Tilson, M. Van Geertruyde, A. Hicks, D. Rasokas, D. Gilvesy Members absent: W. Cameron Guests present: S. Lamb, IOOF Lodge #50, A. Piggott – Town of Tillsonburg, D. Frei – Southridge Concept Renderings (FIP) 2. ADOPTION OF THE AGENDA: a. moved by: M. Tedesco seconded by: C. Heutinck and resolved that the agenda as prepared for the BIA Board of Management meeting for Thursday, September 19th, 2019 be adopted. “CARRIED” 3. DISCLOSURE OF PECUNIARY INTEREST AND THE GENERAL NATURE THEREOF: Note any disclosures: none declared 4. ADOPTION OF THE MINUTES from the board meeting of July 18th, 2019 a. moved by: D. Gilvesy seconded by: M. Tedesco and resolved that the minutes, as prepared for the meeting of July 18th, 2019 be adopted. “CARRIED” 1 5. DELEGATIONS: (15 minutes) a. David Frei – Southridge Rendering – update on 2019 Façade Improvement Program projects – Mr. Frei presented a visual display of the projects to date and the work plan. There was a lengthy discussion of the projects that were undertaken or those being contemplated for the balance of 2019. b. Alex Piggott – Transit Co-ordinator, Town of Tillsonburg – gave a powerpoint presentation on the transit structured routes and the proposal to have the BIA sponsor the Saturday service extension from the last Saturday in November until the Saturday before Christmas. The BIA board gave direction to sponsor 2 x $600 for the gold sponsorship. The BIA board was very supportive of the new town transit service. There was also some discussion at to where the bus stops will be in the longer term. The ED spoke about the inconvenience for Broadway businesses if the mall stop is moved to the back of the mall. It makes sense to have the main stop on Broadway for centricity to the library, banks & other businesses. 6. TREASURER’S REPORT: There were no questions or comments on the treasurer’s report and the board moved quickly for a discussion of the 2020 financial budget and business plans. The ED had previously highlighted a $4,000 overpayment to Rona which was credited back to the Town of Tillsonburg which will need to be repaid to the BIA forthwith. As of October 7th, 2019 – these funds have not been repaid to the BIA. 7. 2020 BUDGET: Each board member was provided with a budget binder with detailed worksheets, financial documents and the business plan documents prior to the meeting. The Executive Director presented the budget summary. The top line levy increase is 5.0% which includes a 4% reserve calculation. The ED highlighted the main budget deficiencies being; a) a severe deficiency of “other revenues” and b) the high level of debt. Also, there was discussion of reducing the overall increase to the rate of inflation as per D. Rasokas and D. Gilvesy. The ED spoke about the importance of ensuring compliance to all government regulations, tax laws and the Municipal Act. The budget document ensures compliance with all legislation. Effective January 1st, 2020; all contract employees are converted to BIA employees. The EMC will be a full-time position as of 01/01/2020 at an annual salary of $40,000 plus benefits (including retirement plan, medical & life insurance). The ED will be a full-time position at 40 hours per week at an annual salary of $52,500 plus benefits (including 2 retirement plan, medical & life insurance). All employment costs are included in the “General & Administrative” cost center. The ED discussed the initiatives to be undertaken to add additional revenues in 2020 including holding more events that generate revenues; with Turtlefest; leveled sponsorships, additional events, AGM Gala, banner sponsorship program similar to the Exeter BIA, umbrella & table advertising, and other initiatives to increase revenues beyond those of the municipal levy. The group made the decision to postpone the LED sign panel replacement until 2021. D. Gilvesy asked to have the $12,000 expenditure removed. D. Rasokas concurred with D. Gilvesy and wanted the year-over-year levy increase at the rate of inflation or less. The ED also informed the board that the BIA has its own CRA number (77306-8333) for both remittance and GST accounts. One of the requirements of Summer Job Service funding is having a CRA number for tax purposes. The BIA is exempt from WSIB premiums as per a letter received from WSIB head office. The ED also highlighted a number of errors and omissions relating to the BIA assessment role provided to the BIA from the Town of Tillsonburg. There are some BIA zone properties that are not paying the levy that should be. Any building with a business use should attract the BIA levy. The ED will follow-up and schedule a meeting with the town’s Revenue Manager, Denis Duguay, forthwith. A subsequent report will be brought to the board at a future meeting. The ED will also follow-up with partners THI, 3E Power and ERTH Corporation regarding partner funding for the 6 required heritage fixtures on Brock Street East & W est, the Broadway node power improvements for food trucks and the refurbishment of the Broadway Plaza in front of the Tillsonburg Town Centre Mall. The ED informed the board that the BIA will take over full planning and control of the Turtlefest Block Party and will run the VIP area itself. The key strategy is to monetize the value of the Block Party as a key revenue generator for the BIA. The 2020 budget also includes the purchase of a work truck which will be debentured and cost-recovered through annual sponsorships. The budget details attached to these minutes drills down into the details of the “ancillary revenues” contemplated in the overall budget. Again, the ED stressed the importance of maximizing government funding programs including Summer Jobs Service, Job Connect, TVDSB community hours (40 hour per student, per calendar year), co-op placements with both universities and colleges and grants available from the OTF (Ontario Trillium Foundation) and others. The ED reviewed the capital plan and the importance of having the tools to do the job. To this end, the BIA will develop virtually almost all the operational capacity with the exception of garbage pick-up and banner installation and removal. The budget also contains a 10-year financial forecast which sees all debts fully retired by 2028 with no need to borrow any monies for projects going forward. The ED also spoke about expanding the BIA zone to 3 leverage costs and to harmonize promotions for the town so there is no conflict between the retail areas of North Broadway, TILLCON, Simcoe Street and the existing downtown area. This would be an initiative for 2021 and beyond. There are also businesses on the cusp of the existing BIA boundaries which should be in the BIA zone and this includes Verhoeve’s CJDL Engineering, Tillsonburg KIA to name a few. The Façade Improvement Program saw heightened activity and pay-outs in 2019. The ED spoke about the need for the rear façade details to be finalized, (program elements), the increased costs for rear improvements due to building and fire code requirements. To this end, the budget “asks” the Town of Tillsonburg to increase its portion of FIP funding in 2020 to $31,000 from $25,000 to match the BIA allocation. This also provides for an inflationary adjustment given that the town portion has been static since 2013. The ED also spoke about the need to implement a capital cost sharing arrangement with the Town of Tillsonburg similar to what other BIA’s do in Ontario. The ED also delivered the budget and business plans to Ron Shaw & Dave Rushton so that they are fully in the loop. The board will now need to present the board-approved budget at the November AGM to gain member support and approval before being forwarded to Tillsonburg Town Council for their consideration during the town’s budgetary deliberations to be scheduled. The budget and business plan will be posted on the town’s website, there will be a mailer to all BIA members and there will be a notice in the Tillsonburg News. Management will ensure that there is full and complete communication for all financial and governance initiatives so as to continue to build more awareness and trust with the members. Management will also meet with all key stakeholders including the Tillsonburg Horticultural Society, Town of Tillsonburg, Tillsonburg Garden Gate, Oxford Small Business Centre, Tillsonburg Chamber of Commerce, OBIAA and other partners to ensure that all partnerships and resources area fully utilized for all BIA operations. The ED will also be working with the Ontario Trillium Foundation for grant funding for cultural projects in the BIA zone and to write said grant applications so that they fit and meet all of the required criteria. Proposed resolution #Sep-01-2020 Budget: a. Moved by: D. Gilvesy and seconded by: J. Tilson And resolved that the BIA Board of Management hereby approves the adjusted 2020 Budget with a levy requirement from the Town of Tillsonburg of $139,450 and total revenues of $289,561. The year-over-year levy increase is 1.0% 4 comprised of an inflation factor while also creating reserve accounts for future use. The actual net effect to the average BIA member assessment is a decrease of 5.0% accounting for a correction of errors & omissions with the 2018 assessment roll. The budget includes the conversion of all contract staff to employees as at January 1st, 2020 and the conversion of the Events and Marketing Co-ordinator to full-time status (40 hours per week) effective January 1st, 2020. The HR changes contained in the budget will ensure compliance with CRA, MOL/Employment Standards Act & other government legislation. “CARRIED” NOTE: The revised 2020 budget and business plan are attached to the minutes at the end of this document. 8. COUNTY OF OXFORD PLANNING REPORTS: There were no comments. 9. EXECUTIVE DIRECTOR’S REPORT: The ED presented a truncated report given the timelines of today’s meeting. 2020 BUDGET: The ED and EMC have been working diligently on the 2020 budget. The document draft was completed the week of September 9th. The budget has several key structural components and it was highlighted about the human resources being converted to salary from contract to be compliant with CRA and mitigation of risk to the BIA Board of Management; including allocation for health benefits & retirement plan and life insurance & to increase EMC to full-time status as of Jan 1, 2020 to effect heightened promotional activity, stronger social media presence, BIA to take over 100% control, planning and revenues for the Block Party, etc. The EMC & ED will be working together to ensure the “other revenue” line of the budget is met or exceeded. Also, the ED spoke about the need for volunteers for the clean-up and storage of the new beautification elements. The proposed storage area is the basement of the IOOF Lodge on south Broadway. The BIA management team is working on the balance of year, (BOY), operational plan including the remaining promotional events culminating in a refreshed and larger Christmas Crawl. The ED also had a discussion with the Turtlefest Executive Committee about a reduction in funding to Turtlefest for 2020 given that we are employing the EMC to plan and execute the Block Party. The ED has not committed any amounts to Turtlefest for 2020. Note: in 2019, the BIA paid a $5,000 sponsorship fee to Turtlefest. The ED and EMC will be working on tallying the nominations for the Downtown Awards to be presented at the upcoming AGM in November. The AGM will have a more robust agenda to include the budget, business plans and to celebrate the achievements of our downtown members. The EMC and 5 ED will be working with the CEO of the Tillsonburg Chamber of Commerce about the physical awards to be presented. The AGM will also feature a “year in review” to highlight all BIA accomplishments and to produce a “report card” of both positives and areas requiring improvement. 10. Façade Improvement Program business: a. FIP: request for approval of FIP application for Jesse Goosens for the municipal address of 58 Broadway St. (the building containing Tillsonburg Memorials, Hurley’s and the relocation of Millard, Rouse, Rosebrugh from Harvey Street). Motion: Moved by: M. Van Geertruyde and Seconded by: C. Heutinck and resolved that the Board of Management of the Tillsonburg BIA approves in principle, the grant application in the amount of $30,000 pending successful construction and inspection(s) of said project at 54-58 Broadway/15-19 Oxford Street – operating as Millard’s, Hurley’s and Tillsonburg Memorials. “CARRIED” b. FIP: request for approval of FIP application for Wendy & John Cameron for the rear of municipal address of 93-95 Broadway in the amount of $10,000. and resolved that the Board of Management of the Tillsonburg BIA approves in principle, the grant application in the amount of $10,000 pending successful construction and inspection(s) of said project at 93-95 Broadway. Motion: Moved by: M. Van Geertruyde and Seconded by: C. Heutinck “CARRIED” 11. ROUNDTABLE: there were no items brought forward for discussion. 12. NEXT MEETING – Thursday, October 24th, 2019 at Carriage Hall – 7:00 am breakfast, 7:30 am meeting 13. MOTION TO ADJOURN : a. moved by: D. Gilvesy b. seconded by: M. Tedesco “CARRIED” 6 Tillsonburg BIA - 2020 BIA Budget Financial Summary Summary of Revenues & Expenditures 2018 Actual Audited 2019 Budget 2019 Projected (forecast) 2020 Proposed Budget Revenues: BIA Levy (requirement from taxation) 127,217 136,621 136,621 139,450 Town contribution to Façade Program 25,000 25,000 25,000 31,000 Other income & funding inc. SJS, sponsorships, Turtlefest, banner program 3,525 13,264 19,137 55,220 HST rebate 13,111 15,000 20,063 14,336 Interest income 77 2,220 960 1,010 Rock Developments-Sobey’s agreement 2,500 2,500 2,500 2,500 Contribution from accumulated surplus 0 0 70,000 46,000 Total Revenues: 171,722 194,605 254,281 289,516 Levy as % of total revenues 74.1% 70.2% 53.7% 47.6% Expenditures: General, administrative + operations (including payroll, office and day to day expenses) 29,593 84,673 84,377 125,691 Debt principle & interest 8,989 11,628 25,067 22,504 Debt P&I payment as a % of levy: 7.1% 8.5% 18.3% 16.1% HST (1.76%) 100% of GST, 78% of PST 14,251 20,000 21,808 15,583 Capital, repair & special projects 6,734 500 15,978 23,000 Marketing, events & advertising (includes cost of running events) 7,806 18,250 9,191 24,000 Façade Improvement Program 25,000 50,000 81,000* 62,000 Beautifications – plants, street furniture, umbrellas, trees, waste containers 6,785 13,250 39,000 11,000 Capital reserve provision (*NEW) 0 0 0 2,869 Operating reserve provision (*NEW) 0 0 0 2,869 Total Expenditures: 94,158 194,605 254,281 289,516 Net Revenue/(Deficit) +77,564 0 0 0 Summary of Accumulated Surplus: (cash based) *timing of payment for FIP projects *final payment of $4,495 due 03/31/20 from refinancing Beginning Balance 106,284 192,783 220,345 150,345 Change in Accumulated Surplus +114,061 0 -70,000 -40,262 Ending Balance 220,345 192,783 150,345 110,083 *FIP expenses in 2019 (actual), include 3 projects carried over from 2018 (5 storefronts) & 3 storefronts (Hurley’s building) 7 2020 BIA Budget - key objectives: 1. To develop non-levy revenues through increased event, fundraising, sponsorships, partnerships & other sources of funding: a. Turtle-fest Block Party to be maximized as a revenue enhancement tool b. Banner sponsorship programs: i.e. Exeter BIA program, table, umbrella ads c. Initiate & implement leveled sponsorship programs similar to the Chamber of Commerce to build long-lasting relationships for stability of funding. d. Maximize available government funding programs including Summer Jobs Service, OMAFRA, Digital Main-street, provincial programs, etc. e. Increase the frequency and quality of all promotional/event activities 2. Implement tools to self-finance capital projects internally & via sponsorship offset: a. Plan for annual reserves in all budgets going forward b. Negotiate a 50/50 capital cost-sharing agreement with the town council c. Prepare 5 & 10 year capital project list with identified funding sources 3. To be in compliance with CRA, Municipal Act, Town Code of Conduct: a. Conversion of human resources to employee from contract b. Drives ability for additional grant-funding opportunities (availability of funding) & ensures adherence to the Employment Standards Act c. Ensures integrity of the BIA operations and reduces risk 4. To invest in our strengths & building on the pro-activity & strengths of our people: a. Retention of existing human resources is key our future success(es) b. Increase the EMC to 1.0 FTE (funded internally) c. Maintain 0.4 FTE for Spring/Summer/Fall student labour (funded externally) d. Add seasonal co-op student for Marketing & Promotions (funded externally) e. Provide medical, life, health and retirement benefits to FTE’s f. Continue to recruit new Board Members to improve board efficacy 5. To providing the tools necessary to do the job & developing self-sufficiencies for self- sustaining operational capabilities within the BIA organization: a. Watering apparatus including tank, sprayer hose & truck mounts b. Full-size, regular cab work truck – capital cost offset 100% by sponsorships c. Graphic design hardware & software tools (new Mac for EMC) d. Investment in FTE’s to ensure plan execution & to increase work output 6. Preparations to expand the BIA boundary for effect on January 1st, 2021 a. Work with the Town Clerk and Legislative Services Department on the necessary steps required for a successful implementation plan b. Implement a communications plan for said expansion 8 Other revenue breakdown: Employment programs Includes full-year allocation of part- time student labour plus one co-op horticultural student Programs can be staggered or stacked beginning with March break 2020 & Youth Job Connect $10,500 Summer Job Service (SJS) Youth Job Connect – (YJC) Fanshawe/Guelph/Ridgetown TVDSB co-op placements Turtlefest VIP area tickets $5,000 100 tickets @ $50 All revenues to BIA Turtlefest Block Party food truck permits $1,220 5 x $244 Revenue shared with Turtlefest Committee Work truck sponsorship (commensurate with purchase of truck May 1, 2020) $6,000 6 sponsors x $1,000 DeGroote-Hill, Garden Gate & 4 others (for 5 years to cover debenture payments of the work truck) Leveled sponsorship program (similar to Chamber of Commerce) $7,000 1 Gold sponsor - $1,500 = $1,500 2 Silver sponsors - $1,000 = $2,000 5 Bronze sponsors - $500 = $2,500 Media partner - $1,000 (1) AGM Gala & Awards $5,000 100 tickets @ $50 Banner program (similar to Exeter BIA) $10,000 50 banners @ $200/each Term: per year, per banner Affiliate member program $5,000 20 @ $250 OMAFRA project funding $5,500 BIA will apply for various available program funding. *New event revenues TBD Ideas: Wine & Food Fest Cruise Nights d/t Indoor Farmer’s Market Fashion Show(s) $10,000 *not included in budget, will plan as contingency to achieve “other revenue” target Totals: $55,220 9 2020 Budget introduction: The context of which the 2020 budget was written and devised is critical to understanding the details presented. Further to this, it is the job of management to prepare the annual budget and for the board to review, discuss, provide feedback, suggest changes and then approve the document prior to the required member notification & presentation at the November AGM and finally, subsequent approval by Town Council during their 2020 budget process. The budget was compiled after reviewing the recent financial results, however, & more importantly, it was critical in looking forward to the future & specifically, devising a long-term forecast & plan towards 2030. At present, there is a high level of debt caused by an inability to finance capital improvements internally. Also, other BIA’s notably those in the City of Toronto, have a 50/50 cost-share plan with the city for all capital improvements. It is the view of management that long term debt is too high given the limited resources that the BIA has to pay such debt. One of the structural improvements of having a longer-term financial view is that by the beginning of 2028, there will be no long term debt if the BIA adopts the recommendations in this budget document. The 2020 budget includes a 4% reserve - comprised of 2% for each of operating and capital expenditures. Management also recommends including this allocation annually as shown in the attached 10-year financial forecast. The primary benefit of having an annual reserve calculation and plan, is that by 2028, there is no debt, there will be a significant reserve in place for any/all capital spending that is required, and the BIA can weather any period of economic difficulty or to deal with assessment rebates due to members. There will also be no need to finance any type of debt going forward due to the planning & reserve calculations included therein. The BIA and Town of Tillsonburg should have a similar, if not identical policy of a 50/50 cost share for all BIA capital improvements. With direction from the board, management will bring a resolution forward for consideration of adopting a policy for the BIA with Town Council/Town of Tillsonburg. 10 The board has traditionally been an “operating board” vs. being a “governance board”. This budget reflects the need to develop and implement the policies, procedures and an updated constitution so that there is a sustainable platform for the BIA operations into the longer term. Members of the board cannot and should not be expected to perform day-to-day operational tasks of the BIA. As a point of reference, the Uptown Waterloo BIA has gone through a similar transition during the past couple of years. Management has also undertaken a review of other BIA’s financial performance and one key area where we are severely deficient, is the generation of revenue outside of the municipal levy. To this end, management will be focused on developing sponsorships, government funding, employment program revenues, monetization of the Turtlefest Block Party, and where feasible; fully offset the cost of any new debt (i.e. work truck); via 100% cost recovery plan including external sponsorship(s). Also, the board has a fiduciary responsibility to mitigate risk and to ensure compliance with all applicable government legislation. To this end, the budget contemplates & includes the conversion of all human resources to employees from contractors. This ensures compliance with CRA, Ministry of Labour/ Employment Standards Act and significantly improves access to government funding. General & administration costs are forecast to increase by a change to the Events & Marketing Co-ordinator to full-time status as of January 1st, 2020 in addition to providing medical, dental and retirement benefits to both full-time employees. We are in a digital marketplace with a heavy influence of social media. It is critical to have the staff & team to focus on marketing & events. The budget contemplates the BIA taking over the entire planning and operations of the Block Party to include a VIP area and to maximize revenues for the BIA from this point forward. There is a separate tab for the Human Resources Plan, which shows the net changes to FTE’s for 2020. All capital items in the budget are financed internally other than the cost of the work truck – which will be fully offset by direct sponsorships. Façade Improvement Program funding is forecasted to be above budget in 2019 due to carryover projects from previous years. There are outstanding FIP expenses from 2017 & 2018 from projects not yet fully invoiced & paid with respect to Roka Billiards & Ronson’s Audio in addition to the $30,000 payment for the old Prouse Furniture building on Brock St. E. 11 The is a separate tab in the budget binder for the Human Resources Plan, Capital Expenditure (CAPEX) projects, current long term debt and supporting documents as well as the proposed governance changes contemplated, new board directory and finally, the 2020 meeting schedule which includes the 2020 Annual General Meeting. 12 2020 Budget & Business plan key summary points: 1) Municipal levy increase to $139,450 or 1.0%; which is comprised of a 1% inflation factor plus 4% reserve. See point #2 below. 2) Work with the town’s Revenue Manager to correct errors and omissions with the assessment roll. This will equate to a net decrease per BIA member from $594 in 2019 to $585 in 2020. 3) Increase non-levy revenues to $55,220 through sponsorships, government employment programs, event sales/income, & other funding sources. See attached. 4) Increase the budget for FIP projects to 6 from 5 in anticipation of the roll-out of the rear- façade improvement category including an inflationary adjustment. 5) Ask the Town of Tillsonburg to increase their FIP funding portion to $31,000 per annum with a matching contribution by the BIA. 6) Developing virtually 100% internal BIA self-sufficiency with operations and maintenance including watering, floral care and planning/implementation of all capital improvements. 7) The proposed debt required to pay for the work truck is offset by annual sponsorships. 8) The 2004 Broadway node/reconstruction debt is fully paid for as of 03/31/2020. 9) Implement monthly BIA programs and events like a fashion show in the mall; more sidewalk sales; new website; new communication tools; new banner program; new umbrella and table marketing materials, etc. 10) Conversion of all human resources to employees + provide medical, dental, life insurance and retirement benefits to full-time staff. 11) Implement a change to the EMC position to salary from contract as well as full-time status as of January 1st, 2020 @ $40,000 per year. (plus pension, medical & life) 12) Convert the ED to salary from contract as of January 1st, 2020 @$52,500 per year. (plus pension, medical & life) 13) Re-configure the existing office to create a new work-space for the EMC. 14) Build on the successful beautification plan by implementing all learnings and continuous improvement tactics in subsequent years. 15) Develop and implement new branding and logo for the BIA. 16) Make full use of the Summer Job Service student employment program. 17) Implement leveled sponsorships (i.e. Chamber of Commerce), to add non-levy revenues. 18) Negotiate a revised Memorandum of Understanding (MOU) with the Town of Tillsonburg to take effect early in 2020 including regular gross levy payments by by-law. 19) Prepare to expand the BIA boundaries for effect on January 1st, 2021. 13 BIA Human Resource Plan - Historical & 2020 budget *FTE analysis detail (*FTE = full-time equivalent) BIA Staff Position: 2018 Actual 2019 Budget 2019 Actual 2020 Budget Net change: Executive Director 0.25 1.0 1.0 1.0 n/c Events & Marketing Co-ordinator 0 0.25 0.3 1.0 +0.7 “Keep it Beautiful” & seasonal student labour 0 0 0.4 1.0 +0.6 Co-op student (horticulture) 0 0 0 .4 +0.4 Totals: 0.3 1.25 1.7 3.4 +1.7 History of total net FTE change: -1.1 FTE +0.9 FTE +0.5 FTE +1.7 FTE Notes: 1. Seasonal student & co-op student labour is funded externally to $1,000 per person and can begin as early as March break 2020. 2. There was no Executive Director for most of 2018. 3. There were no Community Living costs for the “Keep it Beautiful” program associated in 2018’s fiscal year. 4. The 2020 budget proposes external funding for 1.4 FTE’s. 14 Capital equipment & project list: Priority: PRIORITY Item/equipment/project: How is it paid for? 1 2020 Silverado W/T (sponsored: DeGroote-Hill, Garden Gate & 4 others) Debentured, cost recovered 100% for the entire term of the debenture (5 year term) 1 iMAC desktop & printer for EMC $4,000, funded internally 1 Purchase & installation of 6 additional heritage light fixtures for Brock St. E & W to address lighting concerns brought forward by BIA members $11,250, funded internally 2 Broadway power upgrades (Brock Street to Baldwin Street) To facilitate proper, quiet and safe operation of food trucks for special events $4,000, may be sponsored by THI & ERTH Corporation & funded internally 3 Watering apparatus for downtown plants/trees This will allow for internal operational capabilities $500, funded internally may be sponsored by Agrospray 4 Additional street furniture & replacement steel tables to supplement existing capital assets and to replace damaged/broken tables from 2019 weather events $2,000, funded internally Other items under consideration: Downtown music system $4,000, may be sponsored Wi-Fi re-implementation including hardware $6,000, may be sponsored T-Go transit shelter for Tillsonburg Town Centre The TTC is one of the main T-GO stops for both routes. $8,000, (cost-share offset by some advertising revenue) Total: $23,000 (internal +$5,000 funded externally) 15 Downtown infrastructure upgrades & capital spending plan details: 1) Procure work truck to effect daily operations including watering, maintenance, special event operations, moving of goods and services required for daily operations of the BIA. At present, the BIA team is using personal vehicles for bulky and awkward event, equipment and other items. Purchase timing: May 1st, 2020. 2) Install new hydro connections on Broadway from Baldwin/Oxford northerly to Brock Street including availability of 220v power for food trucks. Operational target: Prior to Turtlefest 2020 3) Refurbish the Broadway plaza including removal of the hemlock trees to be replaced by lower maintenance species and the potential installation of LED lighting, overhead canopy & heritage fixtures – (funded internally, with town, sponsorship & partner support). Operational target: May 24th, 2020 4) In conjunction with T-Go; purchase of transit/bus shelter for the front of the Tillsonburg Town Centre Mall Operational target: January 1st, 2020 5) Re-implementation of WiFi system in conjunction with town and county. 6) Replace focal point signage panels which are technically obsolete/unreliable. 7) Installation and test of downtown music. 8) Begin replacement of glass-top tables with steel-inlayed types. 9) Equip the Events & Marketing Co-ordinator with MAC desktop, printer & software. 16 Key 2019 BIA accomplishments: 1. Successful implementation of the beautification plan with learnings for 2020 and beyond. 2. Planned and executed 6 additional events throughout the year. 3. 2020 budget planning completed in advance of end of calendar year including approvals as required. 4. Strengthened the organization with addition of summer students 5. Completion of multi-year capital plan to 2030. 6. Completion of multi-year budget to 2030. 7. Strengthened the Board with 4 additional members. 8. Strengthened and added new members to all sub-committees. 9. Found zero cost storage for BIA assets at 79 Broadway (basement). 10. Reviewed, updated and improved assessment roll listing for BIA levy which had several important errors. 11. Transition to a new financial institution. 12. Improved downtown cleanliness and aesthetics. 13. Successful Turtlefest Block Party. 14. Successful Canada Day activities. 15. Completed draft update for BIA constitution for approval at the AGM. 16. Worked with the Clerk’s Office to update BIA by-laws. 17. Sent numerous resolutions to Town Council for consideration and action. 17 10 YEAR FINANCIAL FORECAST: Summary of Revenues & Expenditures 2021 2022 2023 2024 2025 Revenues: 150th town anniversary 200th settlement anniversary BIA Levy 143,000 146,500 150,175 154,000 158,000 Town contribution to FIP 31,000 31,000 32,000 32,000 32,000 Sponsorships, events & other funding 70,000 80,000 80,000 81,000 82,000 HST rebate 16,907 20,001 17,100 17,442 21,088 Interest income 1,300 1,400 1,500 1,600 1,700 Rock Developments – Sobey’s agreement 2,500 2,500 2,500 Agreement expired Agreement expired Contribution from surplus 0 0 0 0 0 Total Revenues: 264,707 281,401 283,275 286,042 294,788 Levy as % of total revenues 56.1% 51.7% 51.2% 52.3% 53.5% Expenditures: General & administrative 128,189 128,864 130,399 132,285 136,550 Debt principle & interest 20,423 20,046 19,669 19,297 12,914 HST (1.76%) 100% of GST, 78% of PST recoverable 18,377 20,631 18,587 18,800 22,004 Capital & special projects 10,000 15,000 15,000 15,000 16,500 Marketing, special events, & general advertising 10,000 16,000 15,000 16,000 20,000 Façade Improv’t Program 62,000 62,000 64,000 64,000 64,000 Beautifications – plants, furniture, umbrellas, trees, waste containers 10,000 13,000 14,000 14,500 16,500 Capital reserve (2% of levy) 2,859 2,930 3,004 3,080 3,160 Operating reserve (2% of levy) 2,859 2,930 3,004 3,080 3,160 Total Expenditures: 264,707 281,401 283,275 286,042 294,788 Net Revenue/(Deficit) 0 0 0 0 0 Summary of Accum’d Surplus: Beginning Balance 110,083 115,261 121,121 127,125 133,285 Change in Accumulated Surplus +5,178 +5,860 +6,004 +6,160 +6,320 Ending Balance 115,261 121,121 127,125 133,285 139,605 18 10 YEAR FINANCIAL FORECAST CONTINUED…… Summary of Revenues & Expenditures 2026 2027 2028 2029 2030 Revenues: BIA Levy 162,000 166,000 171,000 175,000 179,000 Town contribution to Façade Program 33,000 33,000 33,000 34,000 34,000 Sponsorships, events & other funding 80,000 80,000 81,000 82,000 86,000 HST rebate 22,001 22,450 22,899 23,357 23,824 Interest income 1,800 1,900 2,000 2,125 2,300 Rock Developments – Sobey’s agreement Nil Nil Nil Nil Nil Contribution from accum’d surplus 0 0 0 0 0 Total Revenues: 298,801 303,350 309,899 316,482 325,124 Levy as % of total revenues 54.2% 54.7% 55.2% 55.3% 55.1% Expenditures: General & administrative 140,689 143,000 146,000 149,000 152,000 Debt principle & interest 12,914 12,159 11,784 0 0 HST (1.76%) 100% of GST, 78% of PST recoverable 23,924 24,402 24,600 24,810 25,000 Capital & special projects 16,370 16,500 17,500 18,000 19,000 Marketing, events, & general advertising 15,370 16,500 17,500 18,500 19,500 Façade Improv’t Program 66,000 66,000 66,000 68,000 68,000 Beautifications – plants, furniture, umbrellas, trees, waste containers 14,000 15,000 16,000 25,000 25,000 Capital reserve (2% of levy) 3,832 3,908 3,986 4,066 4,147 Operating reserve (2% of levy) 3,832 3,908 3,986 4,066 4,147 Total Expenditures: 296,931 301,377 307,356 311,442 316,794 Net Revenue/(Deficit) +1,870 +1,973 +2,543 +5,040 +8,330 Summary of Accumulated Surplus: Beginning Balance 139,605 149,139 158,928 169,443 182,615 Change in Accumulated Surplus +9,534 +9,789 +10,515 +13,172 +16,624 Ending Balance 149,139 158,928 169,443 182,615 199,239 19 Summary of long-term debt: *Current balance as of September 1st, 2019: Project: Financed by: Total debenture: Current balance*: Payment frequency: Final payment: 2004 Broadway reconstruction (nodes) TD Bank London $43,000 $8,880.78 Twice annually March 31, 2020 2018 heritage streetlights & LED conversion Infrastructure Ontario $115,000 $111,046.60 Twice annually December 3, 2028 20 Governance review & recommendations: 1. Meet with Town Clerk and Legislative Service Department for guidance on adherence to the Ontario Municipal Act; Municipal Code of Conduct; & proper handling of the AGM. Update: first meeting held on August 22nd. 2. Update the BIA Constitution for presentation and adoption at the AGM in November. Status: In progress. 3. Develop a voting proxy for the AGM in increase/improve participation. Town Clerk to provide suggestion(s). Status: In progress. Will report back to the board prior to the AGM for action. 4. Invite the Clerk and Deputy Clerk as a delegation to a board meeting to review the BIA By- law. Status: To be scheduled. 5. Update all BIA policies and procedures for presentation at the AGM in November. Status: In progress. 6. Appoint an Independent Meeting Investigator. This should be a motion for adoption at the AGM. Status: To be added to the AGM agenda. 7. The chart below outlines accountability and responsibility of the partners: TASK BIA STAFF BIA BOARD TOWN CLERK TOWN COUNCIL BIA MEMBERSHIP Developing the Human Resources Plan X Approving the Human Resources Plan X Developing the Annual Budget & Business Plan X Approving the Annual Budget & Business Plan X X X Recruiting new Board Members X X Appointing & Approving New Board Members X Preparing Operating Plans X Approving Operating Plans X Cheque signing authorities X X Presentations to Town Council X X Public Relations & Media Spokesperson X X Posting minutes to the Town website X Ensuring adherence to the Municipal Act X X X Ensuring adherence to the Town’s Code of Conduct X X X Board Member resignations X X Running the Annual General Meeting (AGM) X X 21 2020 Marketing Introduction & Strategic Directions The most important strategic imperative for 2020 is to increase the Events and Marketing Co-ordinator to full-time status effective January 1st. This is critical as we execute the following projects and events in 2020: 1. The BIA to take over full planning and operations of the Block Party. 2. The BIA will monetize the Block Party event to increase revenues. 3. The BIA will operate, itself, the VIP area including the sale of tickets. 4. Undertake a re-branding exercise including development of a new logo. 5. Invest in core marketing activities including: a. Development of a proper & dynamic website b. Strong management and execution of all social media channels. c. Implement a “Shop Tillsonburg First” marketing campaign. 6. Liaise with OMAFRA & other government agencies to procure additional tourism & event funding. 7. Run 12 monthly promotional events in addition to Turtlefest, Canada Day, Fitness Event, Christmas Crawl & other seasonal promotions. 8. Increase the number of sidewalk sale events from 2 to 4 to cover off all of the seasons. 9. Adopt a version of the Exeter BIA banner revenue program for spring 2020. 10. Implement the tiered/leveled sponsorship program (Tillsonburg Chamber of Commerce). 11. Confirm 6 sponsors of the BIA work truck @$1,000 per annum, per sponsor. 12. Testing of Google and Facebook ads. 13. In conjunction with Rogers Community Television; continue the “Downtown Tillsonburg” television show. 14. Continue to implement all best-practices from other BIA’s. BID’s and BIZ’s. 15. Implement regular blog posts for social media. 16. Create and post short videos to all social media channels. By having a full-time resource in the marketing and promotions area will allow the BIA to be more impactful throughout the year and to effect visible downtown events on a more regular & predictable basis. There will be a reduced need to use radio, print, newspaper or other media advertising as the EMC will be utilizing lower-cost digital platforms. As listed above, there will be a testing of Google and Facebook ads which will be evaluated for effectiveness. This will be at minimal cost. 22 Executive Director Salary Analysis – September 1st, 2019 Location: Title: Employer: Annual wage: Date of survey: Index to market value: Woodstock BIA Manager City of Woodstock $47,000 + benefits + pension Current .63 Downtown London BIA Executive Director Downtown London BIA $101,000 + benefits Current 1.35 Milton Downtown BIA Executive Director Town of Milton $51,783 Current .69 London, ON regional survey Executive Director Various: all gov’t & non- profit agencies $74,701 + bonus + benefits Current n/a Midland BIA Contract Manager Midland BIA $29,000 Part-time January 1st, 2019 .58 Leamington BIA Contract Manager Leamington BIA $29,000 Part-time January 1st, 2019 .58 Cobourg BIA Co-ordinator Downtown Town of Cobourg $42,000 37.5 hours/week January 1st, 2019 .56 Kingston Downtown BIA Managing Director Downtown Kingston BIA $83,300 January 1st, 2019 1.12 Tillsonburg BIA current Executive Director Tillsonburg BIA $40,000 (contract) December 3rd, 2018 .55 Tillsonburg BIA proposed for 2020 Executive Director Tillsonburg BIA $52,500 (salaried + benefits/pension) January 1st, 2020 .70 23