AGENDA #3g
BUDGET WORKING PAPER
TO: W. Calvin Horton, Town Manager
FROM: Kay Johnson, Finance Director
SUBJECT: Privilege License Fee Increases
DATE: April 27, 2005
The purpose of this paper is to discuss possible increases in the fees charged for privilege licenses that are based on gross receipts.
BACKGROUND
On April 11, the Council received a report from the Subcommittee of the Citizens Review Advisory Committee regarding budget recommendations for the 2005-06 fiscal year. The Subcommittee recommended that each department look for ways to increase revenue by creating new fees or increasing existing fees.
DISCUSSION
Privilege license fees are charges to businesses for the privilege of conducting business within the Town. The Town charges two types of privilege license fees, those that are based on gross receipts and those that are based on the category of business, which carry a specific fee established by State law. The Council has the authority to revise fees based on gross receipts, but does not have authority to revise fees set by State law. We have reviewed nearby communities the fees charged by others surveyed are detailed in Attachment 1.
We propose that the Council consider an increase to the fees charged for privilege licenses based on gross receipts. We propose that the Council consider these changes effective in 2005-06 as shown below.
We believe that if this increase were implemented for 2005-06, revenues would increase by approximately $60,000.
RECOMMENDATION
That the Council increase privilege license fees in 2005-06 according to the table as shown on page 1.
ATTACHMENT
1. Fees charged by Raleigh, Cary, Morrisville, Carrboro and Durham (p. 3).
