City OKs reduced fee increases

SANDPOINT — The desire to attract businesses to Sandpoint while still keeping up revenues led council members to lower some proposed fees Wednesday.

After some business owners questioned the proposed increase in business registration and license fees, Sandpoint council members voted to revise the original proposal. After discussions, they lowered a proposed $100 increase for annual business registration to $50 in the first year and $25 thereafter for renewals and revisions. They also nixed a proposed increases on Community Hall fees and pawn license fees. As for a lined sewer connection fee of $500, members switched it from a flat-out payment to a deposit.  

Many business owners who attended the regular council meeting felt the fees unfairly burdened them with revenue generation. In addition, the increase in fees and necessity for annual renewal made the city less competitive in attracting businesses compared to surrounding communities, according to representatives of the Downtown Sandpoint Business Association. Ponderay maintains business license fees at an annual $25. Bonners Ferry has a one-time $10 permit. Coeur d’Alene charges no business licensing fee at all. Neither does Moscow.

However, the city’s range of business services do cost money, totaling up to a possible maximum burden of $128.86 per registration. That figure consists of expenses in data entry, printing, mailing, fire inspection, police protection and planning and public works considerations.

However, the difference between registering a business and simply renewing a license was a substantial one, according to city staff.

“It seems to me that that initial burden is the tough one,” planning director Jeremy Grimm said. “Thereafter, these reviews can be relatively simple and quick.”

One concern was whether or not the lowered fees would impact the work on the preliminary budget when particular care had to be taken to address the budget shortfall. However, City Treasurer Shannon Syth said any revisions wouldn’t affect the city’s anticipated revenues.

“I did not change the revenue line item for business registration,” she said. “It still is set at the current level where it’s $25 annually.”

 After discussing the appropriate level of reduction for the proposed fees, council members voted to change them based on their negotiations.

“I’m not against the fee,” Councilman Aaron Qualls said. “I’m just against us being so far out of line with neighboring cities. It just makes us uncompetitive.”