Mark Renaud, Executive Director, Tillsonburg BIA, appeared before Council to provide an overview of the Tillsonburg BIA's request. The Board is requesting a one-time consideration of and by the Town of Tillsonburg to fund the 2020 BIA tax-adjustment in the amount of $16,331.41 from the Town’s tax stabilization reserve.
Cedric Tomico, BIA Board Chair and Dan Rasokas, BIA Board Treasurer, were also present.
Opportunity was provided for comments and questions from Council.
Mr. Renaud noted that the tax-adjustment was unexpected and has resulted in a cash flow challenge. The next tax levy payment will not be received until March 31, 2021 which will impact the BIA's 2021 business plan if the Town does not provide assistance in the interim. Mr. Renaud noted that the Board would like the Town to consider a change to the current payment schedule to help mitigate cash flow challenges in the future.
It was asked what the normal Q4 tax levy payment amount is compared to what the Board received in December 2020.
There was discussion regarding forgiveness of the entire amount or requiring the BIA to repay the amount by year end in accordance with the Municipal Act.
There was discussion about developing a tax levy write off policy.
Staff were asked to provide a recommendation. Staff recommended borrowing from the tax rate stabilization reserve would be ideal, as the interest rate would be minimal and it would require less paperwork which could allow monies to be provided within a week's time.
Staff noted the tax-adjustment covered the past three years (2017-2020).