ADMINISTRATIVE REPORT
Date: October 24, 1995
TO: City Council
FROM: Director of Finance and the Director of Permits and Licenses
SUBJECT: 1996 License Fees and Liveaboard Fees
RECOMMENDATION
A. THAT business license fees be increased for 1996 as outlined
in this report and detailed in Appendix A, representing a
general inflationary increase of 3.0%, recognizing that the
fees were last increased in 1994.
B. THAT the fees for liveaboard boat owners be increased by 6.4%
as detailed in the report, recognizing that the fees were last
increased in 1994.
C. THAT the Director of Legal Services be instructed to prepare
the necessary by-law to implement the revised fee schedule for
January 1, 1996.
GENERAL MANAGERS COMMENTS
The General Managers of Corporate and Community Services RECOMMEND
the approval of A, B, and C.
COUNCIL POLICY
Business license fees are set on the basis of recovering the costs
associated with the administration and enforcement related to the
license system. A detailed review of the fees is done approximately
every three years, and the last one done in 1991. In the interim years
the fees are adjusted by inflation. Any additional costs which Council
has directed to be recovered via the license fees are included in the
annual fee increase.
DISCUSSION
1. License Fees
This report recommends that business license fees be raised by 3.0%,
with the exception of a limited selection of license categories related
to charitable or non-profit work. The fee
increase is based on the annual rate of inflation for Vancouver
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over the last two years, recognizing that the fees were last increased
in 1994. This increase will raise the basic business license fee to $79
from the $77 fee that has applied for the last two years. Appendix B
lists the fee categories for which no increase is proposed. Fees are
rounded to the nearest dollar. No significant change to the content of
the by-law is proposed.
While a detailed review of the fees is done approximately every three
years, the Director of Permits and Licenses has indicated that a
significant review of the business license operations is currently being
undertaken as part of the Better City Government process. Pending the
outcome of this review, it is recommended that business license fee
increases be held to inflation in the interim.
It is anticipated that the review of business license operations will
provide direction as new rates are set for 1997 business licenses toward
the latter part of 1996.
2. Liveaboard Fees
Since 1974, the City has levied a license fee on marina owners based on
the boat length, measured at the water line, of each liveaboard boat
moored at a marina. The purpose of this fee is to collect for the civic
services consumed by those who live on the water.
Fees have historically been less than the net taxes levied on the
average single-family residence, as it is believed that liveaboard boats
have fewer residents and generate lower demand for civic services than
does a single-family residence. The comparison with property tax is
made, as it is the mechanism through which other City residents pay for
civic services. In 1995, the net taxes levied (exclusive of water
charges) on an average single-family dwelling amounted to $1,667.
Charges for liveaboard boats are shown in Table 1.
For the purpose of calculating the 1996 liveaboard license fee, the
increase in residential property tax revenues from 1993 to 1995
(excluding tax on new construction and on vacant land) was calculated to
be 3.2% in each year, as outlined in Appendix 1. Therefore, it is
recommended that liveaboard fees be increased in 1996 by 6.4% as
detailed in Table 1, recognizing that the fees were last increased in
1994.
Table 1:
Liveaboard License Fees: Current and Proposed
Current Proposed
Length of Boat at Waterline Fee 1996 Fee
<= 21 $579 $616
> 21 and < 26 $701 $746
> 26 and < 31 $788 $838
> 31 and < 37 $901 $959
>= 37 $993 $1,056
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