Section E Creating a Business Plan and Budget
• Sample: BIA Business Plan Table of Contents • Sample: Annual General Meeting (AGM) Notice, Including Budget • Samples: BIA Budget Forms
Eglinton Hill BIA
• Sample: Budget Approval Schedule • Sample: BIA Budget Declaration Form • Samples: Financial Statements
Greektown on the Danforth BIA BIA Operating Handbook – Creating a Business Plan and Budget June 2003 E
Sample: BIA Business Plan Table of Contents
1. Business Development Objectives 1.1 Description and background of BIA 1.2 Major objectives and initiatives 1.3 BIA analysis - strengths, weaknesses, opportunities and threats Market Analysis 2.1 Market research and analysis 2.2 Retail sales analysis 2.3 BIA outlook BIA Program of Activities 3.1 Promotion and advertising 3.2 Public relations 3.3 Streetscaping 3.4 Commercial research 3.5 Training - seminars and conferences 3.6 Festivals and events 3.7 Administration Organization Plan 4.1 Structure of BIA 4.2 Organization Chart 4.3 Outside resources Financial Plan 5.1 Funding Requirements 5.2 Current and future funding requirements - capital, operating and maintenance 5.3 Sources of funding Overall Schedule 6.1 Realistic Schedule showing timing of major events 6.2 Impact of schedule changes of plan Critical Risks and Problems
2.
3.
4.
5.
6.
7.
Appendix 1 - Historical Financial Data Existing Commitment, Financial Statements for 2000, 2001 and 2002, Capital Expenditure Budget for year 2003 Operating Expenditure Budget for year 2003 Appendix 2 – Acknowledgements
Please note: BIAs established after January 1, 2002 are required to document a business plan within the first 18 months. Updating your Business Plan should be an ongoing process, as the City requires annual budgets for approval.
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Sample: AGM Letter of Notice to Members
The annual General Meeting notice is typically mailed on one page and printed double-sided with the proposed budget on the flip side.
NAME Business Improvement Area (BIA)
As a member of the NAME BIA, you are invited to attend the Annual General Meeting: Monday, September 22, 2003 7:00 p.m. MAIN STREET RESTAURANT, 1234 MAIN STREET
AGENDA
1. 2. 3. 4. 5. 6. Call to Order and Introductions Approval of Minutes of 2002 Annual General Meeting Treasurer’s Report/Work Undertaken in 2003 Proposed Program for 2004 Approval of 2004 Budget (see over) New Business Adjournment
7.
The purpose of this meeting is to decide on the BIA budget for 2004 (see over) and general program.This program is paid for by a special levy charged to you as well as other commercial/industrial property owners and businesses in the BIA. The best way to participate in the decisions which your BIA is making on your behalf is to get involved. Please forward a copy of this notice to your commercial/industrial tenants. For more information, call Mary Jones, (BIA Chair or BIA Co-ordinator ) at 416-123-4567.
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(NAME) BIA BUSINESS IMPROVEMENT AREA
2003
ADMINISTRATION CAPITAL MAINTENANCE PROMOTION & ADVERTISING TOTAL EXPENSES $ 2,400 $ 27,500 $ 26,000 $ 53,500 $109,400
Proposed 2004 Budget
$ 15,588 $ 27,500 $ 14,000 $ 52,300 $109,388
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SAMPLE: 2003 BIA Budget Summary
2002
Council (Name of BIA) BIA Levy REVENUE Add 10% of Above Line as Provision for Assessment Appeal Reductions & Write-offs Total BIA Levy Government Grants Federal and/or Province of Ontario City of Toronto (eg. Commercial Research
Grant, Banner and Mural Program, Community Festivals and Special Events or other)
2003
Projected Actual Results $ Column B Proposed Budget $ Column C
Approved Budget $ Column A
Other Revenue (Non-government)
Donations and Sponsorships GST Recovery Interest (eg. Term Deposit interest) Festival and Miscellaneous
Contribut'n from Prior Years' Accum. Surplus Use of One-time Receipt of City Funds (2001 & Prior Years BIA Levies) to offset 2003 expenditures
Appeal Provision Surplus - Prior Years (from p. 5 Item A)
TOTAL REVENUE EXPENDITURES
Administration (from p. 2) Capital (from p. 3) Maintenance (from p. 3) Promotion & Advertising (from p. 4) Appeal Provision Deficit - Prior Years (from p. 5 Item B) Expenditure Sub-Total Add 10% of BIA Levy (Line 2) as Provision for Assessment Appeal Reductions & Write-offs
TOTAL EXPENDITURES (including GST)
SURPLUS/(DEFICIT) - Total Revenues minus Total (Line 22 = Line 13 - Line 21) Expenditures One-time Receipt of City Funds (2001 and Prior Years BIA Levies held by the City, remitted back to the BIA in 2002) Prior Years' Accumulated Surplus (see Balance Sheet of 2001 Audited Financial Statements) Cumulative Surplus/(Deficit) - End of Year . (Line 25 = Line 22 + Line 23 + Line 24) Cost Share Payables & Commitments at Year End (see Note 4 to 2001 Audited Financial Statements) Funds Reserved by BIA for Capital Cost-Share Projects at Year-End
Signature of Chair
Day
Month
Year
Phone No.
Signature of Treasurer
Day
Month
Year
Phone No.
If the budget is prepared by someone other than the Treasurer, please provide the name and telephone number of that person below. Name Phone No.
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SAMPLE: 2003 BIA Budget Summary Cont’d
Administration Expenditures - Supporting Information
2002
Administration Expenses Council Approved Budget $ Projected Actual Total $
2003
Proposed Budget $
Staff
Permanent Temporary & Part-time
Other Admin. Exp.
Accounting Fees Audit Fees Bank Charges & Interest Conferences & Seminars Consultants Legal Fees Insurance Directors' Liability Insurance Meeting Expenses (non-AGM) Memberships Subscriptions Office Equipment, Mtce. & Repairs Postage/Courier/Delivery Rent and Storage Gen. Office Stationery & Supplies Telephone Transportation and Travel Utilities - Office Other Administrative Expenses
Total Administration Expenses
(transfer to Line 14 on Page 1) Notes: (Use a separate sheet(s) of paper, if necessary):
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SAMPLE: 2003 BIA Budget Summary Cont’d
Capital and Maintenance Expenditures - Supporting Information
2002
Capital and Maintenance Expenses Council Approved Budget $ Projected Actual Total $
2003
Proposed Budget $
Capital
(BIA 50% share of Original Project Cost)
Banners or Murals Benches Christmas Decorations Consulting & Professional Fees Landscaping & Planters Tree Lighting Street Signs Streetscape Improvements Other Capital Projects
(Capital Projects Not Cost Shared with City - BIA 100%)
Other Capital Project Other Capital Project Other Capital Project
Total Capital Expenditures
(transfer to Line 15 on Page 1)
Maintenance
Snow Clearing Christmas Decoration (maintenance,
storage, installation & removal)
Flowers & Floral Care for Planters Hydro (tree & pedestrian lights) Repairs & Maintenance Other Maintenance Expenses
Total Maintenance Expenses
(transfer to Line 16 on Page 1) Notes (Use a separate sheet(s) of paper, if necessary):
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SAMPLE: 2003 BIA Budget Summary Cont’d
Promotion and Advertising Expenditures - Supporting Information
2002
Advertising, Marketing and Promotional Expenses Council Approved Budget $ Projected Actual Total $
2003
Proposed Budget $
Advertising and Marketing Expenses
AGM Expenses Advertising - Radio/TV/Newspapers Advertising - Other Brochures/Flyers/Bulletins Equipment Rental Market Research (Total Cost; see Note 1) Membership Directory Newsletter Printing
Promotional Events
Canada Day Christmas Easter Festival - Spring Festival - Summer Festival - Fall/Hallowe'en Festival - Other Mother's Day Sidewalk Sale Sidewalk Sale Other Promotion & Advertising
Total Promotion & Advertising
(transfer to Line 17 on Page 1) Note 1: City Commercial Research Grant funds up to 50% of project cost. Enter total project cost on this page and enter amount of City funding as grant revenue on Page 1. Notes (Use a separate sheet(s) of paper, if necessary):
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SAMPLE: 2003 BIA Budget Summary Cont’d
2003 BIA Levy and Provision for Assessment Appeal Reductions & Write-offs - Information and Calculation
2002
Calculation of 2003 BIA Levy and Provision for Assessment Appeal Reductions & Write-offs Council Approved Budget $ Projected Actual Total $
2003
Proposed Budget $
Enter dollar amount in this column, in line A or B, whichever is applicable
Required Information to complete Lines A or B:
(from letter sent out in August 2002 from City Finance, to the BIA, notifying the BIA of the Adjustments to the Provision Requirement)
APPEAL PROVISION SURPLUS - PRIOR YEARS
(transfer to Line 12, in column C, on Page 1)
APPEAL PROVISION DEFICIT - PRIOR YEARS
(transfer to Line 18, in column C, on Page 1)
PERCENTAGE FOR 2003 LEVY PROVISION
10%
Calculation of 2003 BIA Levy:
Expenditure Sub-Total (from Line 19, column C, on Page 1) Minus: All Government Grants and Other Revenues (the Sum of Lines 4 to Line 12, column C, on Page 1)
2003 BIA Levy
(transfer to Line 1, column C, on Page 1)
(F) = (D) - (E)
Calculation of 2003 Provision for Assessment Appeal Reductions & Write-offs
BIA Levy (from above (Item F)) % for 2003 Levy Provision
10%
Multiply (F) x (C)
Provision for Assessment Appeal Reductions & Write-offs
(transfer to Line 2, in column C, on Page 1)
Total BIA Levy
(transfer to Line 3, in column C, on Page 1)
(H) = (F) + (G)
Notes (Use a separate sheet(s) of paper, if necessary):
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Sample: BIA Budget Approval Schedule
Time sensitive and updated annually. Please contact Sheila Robinson at the City BIA Office for a current form: 416-392-1291; srobinso@toronto.ca
Business Improvement Areas 2002 Annual General Meeting & 2003 Budget Preparation Approval Process
Responsible
Action
Deadline
BIA Board of Management
Prepare 2003 Budget and 2002 AGM Notice
BIA Board of Management
Forward Notice & Budget to City BIA Office: Forward 2002 Annual General Meeting notice (including proposed 2003 budget) indicating date, time and location to the City BIA Office for mailing*
September 12, 2002
City BIA Office
Mail AGM notice: Including the proposed 2003 budget to commercial/industrial property owners (minimum of ten days notice required)
September 26, 2002
BIA Board of Management
Distribute AGM notice: Including the proposed 2003 budget to business operators & board members including Councillors (minimum of ten days notice required)
September 26, 2002
BIA Membership
Annual General Meeting: Approve proposed 2003 budget
October 10, 2002
BIA Board of Management
Forward Approved Budget: Complete approved budget with signed declaration form to City BIA Office
**October 11, 2002
City Econ. Dev. & Parks Committee
Approve BIA Budget
November 7, 2002
City Council
Approve BIA Budget
November 28, 2002
City Finance
Forward 50 Percent Budget Advance to BIA
January 2003
*Attention: Sheila Robinson, City of Toronto, Economic Development BIA Office, 77 Elizabeth Street, Toronto, ON M5G 1P4, Tel: 416-392-1291, Fax: 416-392-1380 **BIA budgets received after October 11, 2002, will be reported to Council for approval in 2003. This will result in BIAs receiving their budget advance after February 2003.
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Sample: BIA Budget Declaration Form
2004 Operating Budget Declaration Form
Name of BIA _______________________________________________________
I hereby certify that at a duly constituted and called meeting of the Board of Management, at which there was a quorum present, held on _____________________ the attached 2003 Operating Budget was approved.
________________________________ Chairperson
__ __ __ D M Y
____________________ Phone No.
__________________________________ Secretary (or Treasurer)
__ __ __ D M Y
____________________ Phone No.
______________________________________________________________________________ I hereby certify that at a duly constituted and called meeting of the General Membership, at which there was a quorum present, held on _____________________ the attached 2003 Operating Budget was approved.
___________________________________ __ __ __ Chairperson D M Y
________________ Phone No.
__________________________________ Secretary (or Treasurer)
__ __ __ D M Y
_________________ Phone No.
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Sample: Financial Statement
The Board of Management for the (NAME) Business Improvement Area:
Financial Statement: Year ended December 31, 2002
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THE BOARD OF MANAGEMENT FOR THE (SAMPLE) BUSINESS IMPROVEMENT AREA STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2002
2002 $ 2001 $
Assets Current
Cash and short-term investments Accounts receivable City of Toronto – special charges (note 3) Other receivables – trade 30,000 44,000 1,000 75,000 15,000 28,000 2,000 45,000
Liabilities Current
Accounts payable and accrued liabilities City of Toronto Other trade payables 20,000 5,000 25,000 14,000 1,000 15,000
Accumulated Surplus
Operating surplus 50,000 75,000 30,000 45,000
Approved on behalf of the Board of Management:
Chair
Treasurer
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THE BOARD OF MANAGEMENT FOR THE (SAMPLE) BUSINESS IMPROVEMENT AREA STATEMENT OF REVENUE, EXPENDITURE AND OPERATING SURPLUS FOR THE YEAR ENDED DECEMBER 31, 2002
2002 $ 2001 $
Revenue
City of Toronto – Special Charges Donations and sponsorship Municipal grants Other revenue 105,000 3,000 2,000 110,000 100,000 2,000 2,000 1,000 105,000
Expenditure
Administration Promotion and advertising Capital and maintenance Provision for uncollected levies 7,000 35,000 45,000 3,000 90,000 8,000 36,000 35,000 1,000 80,000
Excess of revenue over expenditure for the year Operating surplus, beginning of year Operating surplus, end of year
20,000 30,000 50,000
25,000 5,000 30,000
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THE BOARD OF MANAGEMENT FOR THE (SAMPLE) BUSINESS IMPROVEMENT AREA STATEMENT OF CHANGES IN FINANCIAL POSITION FOR THE YEAR ENDED DECEMBER 31, 2002 2002 $ 2001 $
Cash Provided by (Used In) Operations
Excess of revenue over expenditure for the year Increase (decrease) resulting from changes in Accounts receivable - City of Toronto Accounts receivable – other Accounts payable and accrued liabilities – City Accounts payable and accrued liabilities – other 20,000 (16,000) 1,000 6,000 4,000 15,000 15,000 25,000 5,000 1,000 (20,000) (1,000) 10,000 5,000
Cash Provided by Operations Cash and short-term investments, beginning of year Cash and short-term investments, end of year
30,000
15,000
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THE BOARD OF MANAGEMENT FOR THE (SAMPLE) BUSINESS IMPROVEMENT AREA NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2002
1.
ESTABLISHMENT AND OPERATIONS
The (Sample) Business Improvement Area (BIA) is established as a Business Improvement Area under the management and control of a Board of Management appointed by Council of the City of Toronto. The Board is entrusted with the improvements, beautification and maintenance of municipally owned lands, buildings and structures in the area, together with the promotion of the area as a business or shopping area. Funding is provided by property owners of the BIA who are levied a special charge based on an annual operating budget prepared by the Board and approved by Council under Section 220(17) of the Municipal Act, as amended.
2.
SIGNIFICANT ACCOUNTING POLICIES These financial statements are the representation of management and have been prepared in accordance with generally accepted accounting principles for local governments as prescribed by the Public Sector Accounting Board (PSAB) of the Canadian Institute of Chartered Accountants (CICA), the most significant of which are as follows: (a) (b) (c) Revenues and expenditures are recorded using the accrual basis of accounting. Capital expenditures are charged to operations in the year of acquisition. Services provided without charge by the City of Toronto and others are not recorded in these financial statements.
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THE BOARD OF MANAGEMENT FOR THE (SAMPLE) BUSINESS IMPROVEMENT AREA NOTES TO THE FINANCIAL STATEMENTS, CONT’D For the Year Ended December 31, 2002
3.
CITY OF TORONTO – SPECIAL CHARGES Special charges levied by the City are collected and remitted to the Board by the City. The total special charges outstanding consist of amounts collected by the City not yet remitted to the Board and amounts uncollected by the City. The Board records special charges receivable net of an allowance for uncollected amounts. The special charges receivable from the City of Toronto are comprised of: 2002 $ Total special charges outstanding Less: allowance for uncollected special charges Special charges receivable 48,000 (4,000) 44,000 2001 $ 29,000 (1,000) 28,000
4.
COMMITMENTS The Board, in co-operation with the City, has implemented cost-shared capital improvement projects on publicly owned property for several years. The projects are long-term in nature and are usually completed subsequent to the year of Council’s approval. The Board is committed to capital improvement projects of which the Board’s share of $ 20,000 is outstanding as at December 31, 2002.
5.
INSURANCE The Board is required to deposit with the City Treasurer, City of Toronto, insurance policies indemnifying the City against public liability and property damage in respect of the activities of the Board. Insurance coverage providing $5,000,000 for each occurrence or accident has been obtained by the Board through the City of Toronto.
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