HomeMy WebLinkAbout12-11-17 City Commission Packet Materials - A5. Resolution 4855, Amending Business License Fee Schedule
Commission Memorandum
REPORT TO: Mayor and City Commission FROM: Chris Saunders, Community Development Manager
Martin Matsen, Director of Community Development
SUBJECT: Commission Resolution 4855 – Adoption of fees for the licensing of businesses.
MEETING DATE: December 11, 2017
AGENDA ITEM TYPE: Action
RECOMMENDATION: Adopt Resolution 4855 amending the fee schedule, for all types of business licenses with an effective date of January 30, 2018.
RECOMMENDED MOTION: I move to adopt Resolution 4855 amending the fee schedule,
for all types of business licenses with an effective date of January 30, 2018. EXECUTIVE SUMMARY: The City Commission has adopted Chapter 12, Business Licensing. This chapter includes authorization for an administrative fee, adopted by resolution of
the City Commission, to defray the costs of administering the program. The staff monitors
opportunity for improvements in City programs. The current fee structure is complex, time consuming to administer, has not been inflation adjusted for many years, and restricts the ability for the City to utilize existing software for renewals of licenses. The restriction of use of software requires substantial time and effort for manual processing of licenses.
Staff has evaluated the last three years of licenses and fee revenue and has determined that a much simpler fee structure is possible. Resolution 4855 proposes a single fee for all business types. There is no demonstrated correlation between building size and the effort to process the business license. Therefore, staff believes that a simpler fee structure will be beneficial to the
user with easier application processes and to the City for less complex processes.
The City has not adjusted the fee levels for inflation for many years. The cost of program administration has risen over the years. The City has added additional services to support business development. The proposed fee change may raise average fee revenue by about 9%.
Since the revenue is directly related to the number of business licenses are submitted it is not
possible to precisely determine annual revenue in advance. The Staff have discussed the business license program and determined that an overall review of requirements and processes is warranted. For example, businesses licensed by the State such as
doctors or attorneys are not required to obtain a municipal business license. Such an effort is not
scheduled and is outside of the identified priorities of the Commission. This effort to simplify the fee schedule is a low level of effort which can readily improve functionality. The revised fees
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will also enable additional data collection which will facilitate later overall review of the
program..
ALTERNATIVES: 1) Adopt the proposed fee schedule
2) As determined by the Commission. FISCAL EFFECTS: The recommended fee schedule is anticipated to result in cost recovery for processing of business licensing. Revenue results will vary based on application volume.
Attachments:
Resolution 4855 Business License application and current fees - https://www.bozeman.net/Home/ShowDocument?id=688
Report compiled on: November 14, 2017
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RESOLUTION NO. 4855
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, ADOPTING A FEE SCHEDULE FOR BUSINESS LICENSES, AS
AUTHORIZED BY SECTION 7-21-4101, MONTANA CODE ANNOTATED (MCA)
AND CHAPTER 12, BOZEMAN MUNICIPAL CODE.
WHEREAS, Section 7-21-4101, MCA authorizes local governments to issue business
licenses, to fix the amount of such licenses, and to collect fees; and
WHEREAS, the City of Bozeman collects fees to cover the administrative costs of
processing and reviewing business licenses, special services and regulatory inspections; and
WHEREAS, the business license fee schedule had been incorporated into the Bozeman
Municipal Code, Chapter 12 Business Licenses; and
WHEREAS, the City of Bozeman adopted Ordinance 1948 amending Chapter 12 of the
Bozeman Municipal Code to remove the fee schedule from the Business License Chapter;
WHEREAS, Resolutions 4686 and 4833 were previously adopted to establish or amend
fees for business licenses and it is intended to replace all prior resolutions;
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of
Bozeman, Montana:
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Section 1
The fee schedule for the fees, charges and expenses for the all elements of the review of
business licenses including special services and regulatory inspection fees shall be:
Business License – All Types $50
Late Registration Fee $50
Section 2
This fee schedule shall be in full force and effect on January 30, 2018.
PASSED, ADOPTED, AND APPROVED by the City Commission of the City of
Bozeman, Montana, at a regular session thereof held on the 11th of December, 2017.
_________________________________
CARSON TAYLOR
Mayor
ATTEST:
_________________________________
ROBIN CROUGH
City Clerk
APPROVED AS TO FORM:
_________________________________
GREG SULLIVAN
City Attorney
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