|
To: Norton Bonaparte
City Manager
From: Dennis Taylor
Date: June 1, 2010
Re: Revenue Enhancements As a part of considering how to fund the 2010 and 2011 City budgets, the COST Team recently proposed a review of the fees and charges imposed by the City of Topeka. In response the COST Team suggestions, we have conducted a review of the fees and charges imposed by the City of Topeka as well as those of comparable communities in Kansas and adjacent states. This memorandum presents a proposal to initiate or increase fees and outlines anticipated frequently asked questions (FAQs) concerning existing fees for City licenses, permits, and inspections and in the following areas:
1. Animal Licenses
2. Building Permits
3. Occupancy Permits
4. Commercial Enterprise License SUMMARY OF PROPOSED CHANGES Category Current fee Proposed fee 1. Animal Licenses $5, neutered $12, neutered
$8, un-neutered $20, un-neutered
2. Commercial Building
Permit—
Example: $300,000 value $2,959.35 $3,930.00
(2009 average) Residential Building
Permit—
Example: 1500 square foot $ 480.00 $ 580.00
1500-3000 sq. ft. $ 660.00 $ 780.00
3000 and up $ 830.00 $ 980.00 3. Occupancy Permit none $ 50.00
(one time fee) 4. Commercial Enterprise
License
Example: 1-7,999 sq. ft. none $ 65.00
8,000-39,999 sq. ft. none $ 140.00
40,000 sq. ft. and up none $ 290.00 Revenue Enhancements
Page 2
PROPOSAL
Rationale The following proposal is presented to: 1. Ensure the continuity of City programs and services that protect the health and safety of the community and its citizens. 2. Recover the full cost of providing those programs and services. 3. Assist in funding the City budget during 2010 and 2011. 4. Reduce the necessity of greater reductions in the workforce and in City services. Summary Financial Impact In summary, the following proposal anticipates an increase in rates, a broader base upon which the rates are applied, and an improved rate of compliance through better enforcement: 1. Animal Licenses----20,000 issued-------------------------$ 300,000 (rate:$12/dog
and cat,
spayed,
neutered,
$20, if not) 2. Building Permit/Plan Review/Inspection---------------- $ 214,000 (Rate:
commercial
and
residential per
schedule
Revenue Enhancements
Page 3
Commercial building permit increase $190,000
Residential building permit increase $ 24,000
Revenue Projection Assumption: with 100% compliance of 206
with average $970 per permit
increase shown below with 100% compliance of 300
with average of $80 per permit
increase shown below
a. Increase commercial building permit fee Example: Building permit fees are computed based on
valuation Current ordinance $300,000 building—Base fee--$993.75—1st $100,000
Addl. fee- $5.60 each addl. $1,000
Plan Review fee—40% of 1st 2 fees Total – $ 993.75
$1,120.00
$ 845.60
$2,959.35
Proposed ordinance $300,000 building—Base fee--$1100.00—1st $100,000
Addl. fee-$7.60 each addl. $1,000
Plan review fee—50% of 1st 2 fees Total---$1,100.00 $1,520.00
$1,310.00 $3,930.00 3. Occupancy permit fee—one time $150,000 Revenue Projection Assumption: One time fee for 3000
businesses @ $50
Revenue Enhancements
Page 4 4. Commercial Enterprise Licenses--- 3,000 issued-------$ 297,500
(rate: variable
$65 to $290) Revenue Projection Assumption: with 85% compliance of 3,500
commercial enterprises @
$100/license Summary of anticipated additional revenue to be generated by these licenses and inspections: Animal Licenses $250,000
Building Permits $214,000
Occupancy Permits $150,000 (one time fee)
Commercial Enterprise Licenses $297,500
Total $911,500 Frequently Asked Questions (FAQs) 1. What commercial enterprises are currently licensed by the City of Topeka? A. The City requires licensing the ownership of pets.
B. City of Topeka ordinances currently regulates 36 specific commercial
activities. Lawful performance of these activities requires a current valid
license issued by the City Clerk for which the City assesses a fee. a. Alcohol liquor distributor
b. Ambulance business
c. Ambulances vehicle
d. Amusement Park
e. Auctioneer f. Bill posters
g. Cereal Malt Beverage (General Malt Beverage)
h. Cereal Malt Beverage (Limited Malt Beverage)
i. Circuses
j. Cleaners/Dry Cleaners
k. Dance Hall—Beer
l. Mobile food service units
m. Open after midnight
n. Paintball guns
o. Pawnbrokers
p. Peddlers
q. Precious metal dealers
r. Private club
s. Professional Boxing/wrestling
Revenue Enhancements
Page 5
t. Retail liquor store
u. Salvage yard
v. Second hand dealer
w. Dance Hall—hall
x. Dance Hall---non-profit
y. Fireworks
z. Funeral escort service
aa. Going out of business
bb. Haunter house permit
cc. Microbrewery, winery
dd. Sign hanger
ee. Solicitors
ff. Taxi cab company
gg. Tobacco/Novelty Retail license
hh. Transient Merchant
ii. Tree, shrub, and vine service
jj. Wholesale beer distributor
The fees charged for licensing the above businesses range from $5.00 to
$1000.00 annually.
C. The City also issues building permits, conducts plan reviews, and performs
mechanical, plumbing, electrical, and building inspections of new and remodeled commercial real property. No charge is made for fire inspections. D. Fire Inspections a. Mandated by state statute i. K-12 schools
ii. Home day care
iii. Daycare centers
iv. Pre-schools
v. Washburn University
vi. Open burning permits b. Mandated by the City of Topeka i. New Construction
ii. CMB licenses
iii. Dance licenses
iv. Boarding homes
v. Fireworks and Tent permits
Revenue Enhancements
Page 6 c. Other inspections performed fire inspectors include but are not limited to:
i. Complaints
ii. Fire Alarm systems
iii. Sprinkler systems
iv. Nursing Homes
v. Assisting living facilities
vi. Hospitals
vii. Businesses 2. What fees are currently charged for licensing the above businesses? A. In summary, the following rates were in effect for the following activities
during 2009, generating the revenue shown below: 1. Animal Licenses—7800 issued-----------$ 46,800 (rate: $5/dog and
cat, spayed and
neutered, $8, if not) 2. City Licenses—678 issued-----------$ 94,869 (rate: variable $5 to
$700) 3. Commercial building Permits/Plan Reviews
206 issued-- $ 570,000-(rate: valuation) 4. Residential building permits
300 issued $144,000 (rate: (square feet)
Total-------------------------------------------------------$ 678,575 (2009 revenue) 3. What businesses are licensed by other cities in Kansas? A. Other Kansas jurisdictions license and charge fees to a much more
comprehensive range of businesses than does the City of Topeka including: a. Automobile dealers
b. Automobile repair shops and body shops
c. Automobile washers
d. Banks
e. Barber shops, beauty salons, tanning and nail salons
f. Collection agents and bail bondsmen
g. Commercial kennels
h. Contractors
i. Storage yards maintained by contractors
j. Hospitals, Nursing Homes, Retirement Homes
k. Laundry/Dry Cleaners
Revenue Enhancements
Page 7
l. Motels/Hotels
m. Nurseries
n. Offices
o. Pay Day and title loan businesses
p. Professionals (engineers, architects, physicians, dentists, chiropractors, osteopaths, accountants, photographers, real estate offices, insurance brokers)
q. Restaurants
r. Recreational businesses
s. Retail stores
t. Schools
u. Service providers
v. Service stations
w. Theaters
B. The fees charged for licensing the above businesses range from $4.00 to
$1,500.00 annually. IV. What changes to the City of Topeka’s existing ordinances regarding business licenses, animal licenses, and building permits, plan reviews, and inspections are proposed?
V. Who will be affected by this proposal? 1. All owners of domestic pets.
2. All business owners
3. All property owners who apply for a permit to construct, remodel or rezone real property.
4. All businesses which request inspection or are mandated by law to be inspected. VI. Under this proposal what businesses are proposed to be licensed? A. All commercial enterprises operating within the City of Topeka will be
licensed under one of the following categories: 1. Category I Wholesale and Retail Trade Includes: Public accommodations (Hotels, motels and
restaurants, bars, arts, entertainment, and recreation venues
Retail liquor stores
Precious metal dealers Cleaners/Dry cleaners/Laundries
Revenue Enhancements
Page 8
Funeral parlors
Gasoline stations
Automobile dealers
Automobile repair shops
Banks/savings and loan/credit unions
Barber shops/beauty/tanning, and nail salons
Real estate property management
Rental real estate business including owners of apartment buildings, commercial, industrial, and/or residential property for lease 2. Category II Professional Services Includes: Financial service providers including accountants
and bookkeepers, collection agencies
Architects
Attorneys
Medical service providers
Insurance agencies and companies
Real estate brokers Educational service providers
3. Category III Manufacturing and Warehousing,
Includes:
Construction contractors
Quarrying and Related Operations 4. Category IV Health Care/Social Assistance Includes: Hospitals
Assisted living facilities
Nursing Homes 5. Category V Home Occupation Business Includes: Any business permitted to operate within residentially zoned property. VII. Under this proposal how will license fees be determined for each of the above categories?
Revenue Enhancements
Page 9
A. There will be three levels, based on square footage of the occupied real
property, within each category of commercial enterprise licensed within
the City of Topeka. Fees will be assessed as follows: 1. Category I a. Level A 1--7,999 square feet $65 b. Level B 8,000--39,999 square feet $140 c. Level C 40,000 square feet and over $290 2. Category II a. Level A 1--7,999 square feet $65 b. Level B 8,000—39,999 square feet $140 c. Level C 40,000 square feet and over $290 3. Category III a. Level A 1—7,999 square feet $65 b. Level B 8,000—39,999 square feet $140 c. Level C 40,000 square feet and over $290
Revenue Enhancements
Page 10
4. Category IV
a. Level A 1—7,999 square feet $65 b. Level B 8,000—39,999 square feet $140 c. Level C 40,000 square feet and over $290 5. Category V a. Level A 1—7,999 square feet $65 VIII. My business is currently licensed under existing ordinance. I received my current license on April 1, 2010. Does this proposal mean I will have to pay a second license for 2010 and 2011? No. Under this proposal you will be grandfathered under your existing license. You will not be required to obtain a new license for 2010. You will be required to obtain a new license on or before January 1, 2011 for 2011. However, the fee for the 2011 license will be prorated to take into account that portion of the fee that you have paid for January 1 to April 1 under the existing ordinance and fee schedule.
IX. What will be the process for enforcement of the requirement to have a business license to operate within the City of Topeka? City ordinances will provide that each commercial enterprise within the City of Topeka must have a valid occupancy permit issued by the City Clerk. A prerequisite to the issuance of an occupancy permit will be the obtaining of a business license as further prescribed by City ordinance. Failure to obtain an occupancy permit will be subject to fines and penalties as set forth in City ordinances.
X. Why should the City increase the level of existing fees or establish a new commercial enterprise license?
Revenue Enhancements
Page 11 Responsibility
a. The City should develop and maintain an accurate database of businesses
operating within its jurisdiction in the interest of public health and safety. Accountability
b. Businesses open and close and/or change names and functions in most
cases without any notice to the City. Unless significant remodeling is undertaken or a state license is required for operation, the new business may operate for some time without being inspected to determine whether it is operating in accordance with the law. Quality of Life
c. With respect to all commercial enterprises operating within its
jurisdiction, the City has impliedly assured its citizens and visitors that
their safety and health are not compromised by patronizing these
businesses. Due diligence on the part of the City requires that it minimally
regulate all commercial enterprises through licensing and permitting. XI. How will the City of Topeka licenses be enforced and the fees collected? City ordinances will provide that each commercial enterprise within the City of Topeka must have a valid occupancy permit issued by the City Clerk. A prerequisite to the issuance of an occupancy permit will be the obtaining of a business license as further prescribed by City ordinance. Failure to obtain an occupancy permit will be subject to fines as set forth in City ordinances. Animal licenses will be payable to the office of City Clerk.
Building Permit fees will continue to be collected at Development Services.
Commercial Enterprise licenses and occupancy permits will be collected by
the City Clerk. |
