<sommemerememe AQ ATT

neue NOV 2 4 19a¢

TO: B. Kirk, DATE: November 19, 1986 City Administrator.

Feasts Bethe

FROM: Administration Committee.

SUBJECT: 1987 Business License Fees.

TOT tet ne aerate tan a oy

RECOMMENDATION: ——————— SS

That our 1987 business license faes be revised as per the attached schedule.

BACKGROUND & COMMENTS: SS

The proposed increases range from 3% to 7.5% with the "average" increase being 52. .

The recommendation is based on the thought that aur non-tax revenues

must maintain their share of total revenues on a year to year basis otherwise there will be a shift in burden of costs to property owners. Business license fees made up. 1.26% of total revenues excluding collections for cthers- and transfers from reserves, in 1987 they are expected to make

up 1.28%.

The Committee briefly considered revising our rates to provide for a flat rate license fee with any difference in total revenues to be made up by increasing property taxes to non-residential properties. Tais is not recommended as a large percentage (45%) of business license holders are for types of businesses which do not pay non-residential property taxes as per the attached statistics.

The Committee reviewed a letter from PoCo Tax Service requesting a reduced rate for our Taxbuyer Category and is recommending a 5% increase for this

category.

TM/ms Attachment