SUPPORTS ITEM NO. 3
P&E COMMITTEE AGENDA
DECEMBER 7, 1995
ADMINISTRATIVE REPORT
Date: October 24, 1995
TO: Standing Committee on Planning and Environment
FROM: Director of Finance and
Director of Permits & 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 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 Govern-ment 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 opera-tions 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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