SR-208-010
F:/finance/Treas/share/business license application fee.doc
City Council Meeting: May 13, 2003 Santa Monica, California
TO: Mayor and Council Members
FROM: City Staff
SUBJECT: Ordinance to Create a Business License Processing Fee and Resolution
Setting Fee
INTRODUCTION:
This report recommends that the City Council create a business license processing fee.
The resolution setting the amount of the fee will be submitted to Council with the second
reading of the ordinance.
BACKGROUND:
A fee is proposed to recover the cost of processing the business license tax application
and business license renewal payments and for issuing the business license tax
certificate.
DISCUSSION:
The City currently processes approximately 20,000 applications for new and renewed
business license tax certificates annually. A minimal fee of $10 per application is
recommended to partially recover the cost of staff time to review applications, enter
applications into the business license system, follow up on incomplete or delinquent
applications, and other activities associated with the business license process, as well
as the cost of related supplies and expenses. The actual cost of the process is
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approximately $19 per application. Staff recommends the lower $10 fee to lessen the
impact on small businesses.
A number of cities in California assess a similar fee. A list of those is attached.
BUDGET/FINANCIAL IMPACT:
Implementation of the business license processing fee will generate approximately
$200,000 in General Fund revenue annually. The fee amount will increase annually by
a CPI factor, and will also be reviewed periodically as part of comprehensive City-wide
fee studies that are conducted every five years to ensure that the fee is adequately
recovering costs.
The impact of this fee increase will be included in the Proposed FY 2003-04 Budget.
RECOMMENDATION:
It is recommended that the City Council introduce an ordinance creating a business
license processing fee. The resolution setting the amount of the fee will be submitted to
Council with the second reading of the ordinance.
Submitted by: C. M. Dennis, Director of Finance
David Carr, Acting City Treasurer
Debby Sowers, License, Permit & Parking Citation Supervisor
Attachments: Attachment 1 - Survey of Business License Processing Fees
Charged by other Cities (NOT ATTACHED) – SEPARATE
Ordinance Establishing Business License Processing Fee
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f:\atty\muni\laws\mjm\businesslicensefeesord-1.wpd
City Council Meeting 5-13-03 Santa Monica, California
ORDINANCE NUMBER ____
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA ESTABLISHING A FEE FOR
PROCESSING BUSINESS LICENSE APPLICATIONS
THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY
ORDAIN AS FOLLOWS:
SECTION 1. Section 6.04.030 is hereby added to the Santa Monica Municipal
Code to read as follows:
Section 6.04.030. Business license application processing fee.
Business license applicants shall pay a fee to cover costs related to
processing business license applications. The amount of the fee may be
set, and from time to time amended, by Resolution of the City Council.
SECTION 2. Any provision of the Santa Monica Municipal Code or appendices
thereto inconsistent with the provisions of this Ordinance, to the extent of such
inconsistencies and no further, is hereby repealed or modified to that extent necessary
to effect the provisions of this Ordinance.
SECTION 3. If any section, subsection, sentence, clause, or phrase of this
Ordinance is for any reason held to be invalid or unconstitutional by a decision of any
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court of competent jurisdiction, such decision shall not affect the validity of the
remaining portions of this Ordinance. The City Council hereby declares that it would
have passed this Ordinance and each and every section, subsection, sentence, clause,
or phrase not declared invalid or unconstitutional without regard to whether any portion
of the ordinance would be subsequently declared invalid or unconstitutional.
SECTION 4. The Mayor shall sign and the City Clerk shall attest to the passage
of this Ordinance. The City Clerk shall cause the same to be published once in the
official newspaper within 15 days after its adoption. This Ordinance shall become
effective 30 days from its adoption.
APPROVED AS TO FORM:
_________________________
MARSHA JONES MOUTRIE
City Attorney
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