Downtown Red Deer businesses will see their 2024 levy increase by five per cent.
City council approved a larger budget for the new year for the Red Deer Downtown Business Association on Monday after hearing the DBA cannot go on as it has, withdrawing from reserves to cover expenses.
Executive-director Amanda Gould told council the association is stretched to the limit, responding to more queries from businesses at a time when the overall budget is down.
“We have zero full-time staff,” said Gould. Yet, in 2023 the DBA had 1,200 interactions with businesses, compared to 634 in 2020.
Over the same time, the total amount collected in business levies had fallen by about 40 per cent — largely because the province stopped priding a grant in lieu of playing a levy since the provincial building takes up space within Red Deer’s Business Improvement Area.
The BIA was established for Downtown Businesses in accordance to the Municipal Government Act. The Downtown Business Association, which markets the downtown and provides a clean-up team, administers improvements programs etc has the right to charge an annual levy to cover these costs.
The City completes the business assessment, invoices and collects the BIA Tax for the Board, with invoices sent out in May. (The due date for payment is June 30).
The additional five per cent to be collected in 2024 from about 370 businesses will bring an estimated $13,225 to pay for DBA projects. The DBA’s total approved budget for 2024 is $775,160, with $277,725 funded through the BIA with the remaining amount funded through items such as grants and contracts.
Gould believes this will help re-balance things, as much work is over-spilling into staff volunteer time. She told council that staff are paid for 78 weekly hours, but they are putting in an average of 110 hours per week running successful programs — such as the business street facade improvements grants, as well as marketing the downtown and co-ordinating festivals and other major events, responding to business concerns and running a regular Green Team to clean up debris.
The size of the BIA levy is calculated on the square footage of each business. Council heard it was not charged to landlords of empty buildings when there is no business currently operating in the space.
“You have a small but mighty team and we appreciate all the work you do on a modest budget,” said Coun. Victor Doerksen.
