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City of Marriott- Slaterville. Business License Fee Study. Zions Bank Public Finance. DRAFT COPY October 18, 2012. Business License Fee Study - Purpose. Update Study – Previous Study 2001 1. Ensure Compliance with Utah Code
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City of Marriott-Slaterville Business License Fee Study Zions Bank Public Finance • DRAFT COPY • October 18, 2012
Business License Fee Study - Purpose Update Study – Previous Study 2001 1. Ensure Compliance with Utah Code Utah code states that fees charged reflect the amount necessary to reasonably regulate business activity, including the costs of disproportionate or enhanced levels of municipal services required by some business classes, geographic locations, etc. 2. Trends in Other Cities Over 17 Cities along the Wasatch Front are currently or have conducted a business license study and updated their fees in the past 5 years. 3. Cover Increasing Costs Police costs 2001: $31.25 per call Police costs 2012: $129 per call Range of police cost per call in other cities: $91 - $249 4. Account for New Businesses 2001: 93 total businesses 2012: 204 total businesses
Base Administrative Costs • Indirect Costs • Administrative Executive Legislative • Building Costs • Direct Costs • Salary • Benefits • Department Overhead Base Costs of Administering a License Common to all Types of Businesses Cost per Minute (each employee involved in business licensing) Time per Task (for each business licensing task)
Base Administrative Costs Direct Costs Direct costs include labor costs (salary & benefits) and department overhead costs
Base Administrative Costs Indirect Costs
Base Administrative Costs Indirect Costs *While police services are contracted out, a portion of indirect costs are allocated to police to account for city administrative time spent on police related issues.
Base Administrative Costs Direct & Indirect Costs
Base Administrative Costs Commercial New Application *Includes city administrator & community development time spent on business licensing
Base Administrative Costs Commercial Renewal *Includes city administrator & community development time spent on business licensing
Base Administrative Costs Home Occupation New Application
Base Administrative Costs Home Occupation Renewal
Base Administrative Costs Solicitor License
Disproportionate Services Cost Utah code allows cities to recoup disproportionate costs for municipal services including: Police Fire Storm Water Runoff Traffic Control Parking Transportation Beautification Snow Removal
Disproportionate Services Cost Base Call Ratio “the level of municipal services that constitutes the basic level of municipal services in the municipality”
Disproportionate Services Cost Residential Rental Disproportionate Call Ratio
Disproportionate Services Cost Rental Cost Summary
What is your city's “rental housing cost?” • Considerations for a Good Landlord Program: • Include all rentals or only 3+ rentals? • Participation/suspension requirement? • Does the rental housing cost justify a Good Landlord Program? Good Landlord Program Good Landlord Program & Non-Discrimination Policy Utah Code 10-1-203 Must perform a municipal services study to collect a disproportionate rental fee ~ Disproportionate rental fee may not exceed the “rental housing cost”
Disproportionate Services Cost Commercial Police Disproportionate Call Ratios
Disproportionate Services Cost Commercial Police Disproportionate Call Ratios
Enhanced Services Cost • Based on information provided by Marriott-Slaterville, the City does not currently have Enhanced Services Costs. Higher service levels compared to basic services provided by the City: Landscaping Snow removal Additional patrol Signage
Total Business Licensing Cost Total Renewal Cost – Commercial Businesses
Total Business Licensing Cost Total Renewal Cost – Commercial Businesses
Business License Fee Comparables *Ogden SOB Fee
On-Line Business License Renewals • Streamline Business License Approval Process • Simplify Business License Fee Schedule Business License Fee Process Trends in Other Cities