Zions Bank Public Finance

City of Marriott-Slaterville

DRAFT COPY

October 18, 2012

Business License Fee Study

Zions Bank Public Finance ■ One South Main Street , 18th Floor ■ Salt Lake City, Utah 84101 2

Update Study – Previous Study 20011. Ensure Compliance with Utah Code

Utah code states that fees charged reflect the amount necessary to reasonably regulate business activity, including the costs of disproportionate or enhanced levels of municipal services required by some business classes, geographic locations, etc.

2. Trends in Other Cities Over 17 Cities along the Wasatch Front are

currently or have conducted a business license study and updated

their fees in the past 5 years.

3. Cover Increasing Costs Police costs 2001: $31.25 per call Police costs 2012: $129 per call Range of police cost per call in other cities: $91 -

$249

4. Account for New Businesses 2001: 93 total businesses 2012: 204 total businesses

Business License Fee Study - Purpose

Zions Bank Public Finance ■ One South Main Street , 18th Floor ■ Salt Lake City, Utah 84101 3

Business License Fee Costs

Total Business Licensing

Cost

Base Administrative

Costs

Disproportionate Service Costs

EnhancedService Costs

Zions Bank Public Finance ■ One South Main Street , 18th Floor ■ Salt Lake City, Utah 84101 4

Base Administrative Costs

Base Costs of Administering a License Common

to all Types of Businesses

Cost per Minute(each employee involved in business

licensing)

Time per Task(for each business licensing task)

Direct CostsSalary

BenefitsDepartment Overhead

Indirect Costs

Administrative Executive Legislative

Building Costs

Zions Bank Public Finance ■ One South Main Street , 18th Floor ■ Salt Lake City, Utah 84101 5

Base Administrative Costs

Direct Costs

DepartmentPer Minute

Cost

Business Licensing $0.43

Administrative Support $0.80

Community Services & Development $0.60

Direct costs include labor costs (salary & benefits) and department overhead costs

Zions Bank Public Finance ■ One South Main Street , 18th Floor ■ Salt Lake City, Utah 84101 6

Base Administrative Costs

Indirect Costs

Department Cost

Legislative $6,450

Administrative Services $182,067

Executive $8,075

General Operations $270,438

Total Indirect Costs $467,030

Zions Bank Public Finance ■ One South Main Street , 18th Floor ■ Salt Lake City, Utah 84101 7

Base Administrative Costs

Indirect Costs

Employee by Department Indirect

CostMinutes Worked

Indirect Cost Per Minute

Community Development &Community Services

$373,624 124,800 $2.99

*Police $93,406 249,600 $0.37

Total $467,030

*While police services are contracted out, a portion of indirect costsare allocated to police to account for city administrative time spent

on police related issues.

Zions Bank Public Finance ■ One South Main Street , 18th Floor ■ Salt Lake City, Utah 84101 8

Base Administrative Costs

Direct & Indirect Costs

Employee by Department Direct Cost Per Minute

Indirect Cost Per Minute

Total Cost Per Minute

Business Licensing $0.43 NA $0.43

Administrative Support $0.80 NA $0.80

Community Development & Community Services

$0.60 $2.99 $3.59

Average Cost Per Minute City Administrator and Community & Development Services

$2.20

Zions Bank Public Finance ■ One South Main Street , 18th Floor ■ Salt Lake City, Utah 84101 9

Base Administrative Costs

SERVICE TIMEMINUTES COSTPER MINUTE COSTCommercial-New Application

Business Licensing 180 $0.43 $81.79

*Business Licensing Support

60 $2.20 $132.00

Supplies & Compliance $5.51

Total Cost $223.68

Commercial New Application

*Includes city administrator & community development time spent on business licensing

Zions Bank Public Finance ■ One South Main Street , 18th Floor ■ Salt Lake City, Utah 84101 10

Base Administrative Costs

SERVICE TIMEMINUTES COSTPER MINUTE COSTCommercial-Renewal

Business Licensing 115 $0.43 $49.45

*Business Licensing Support

60 $2.20 $132.00

Supplies & Compliance $6.14

Total Cost $187.59

Commercial Renewal

*Includes city administrator & community development time spent on business licensing

Zions Bank Public Finance ■ One South Main Street , 18th Floor ■ Salt Lake City, Utah 84101 11

Base Administrative Costs

SERVICE TIMEMINUTES COSTPER MINUTE COSTHome Occupation-New Application

Business Licensing 160 $0.43 $68.80

Supplies & Compliance $5.51

Total Cost $74.31

Home Occupation New Application

Zions Bank Public Finance ■ One South Main Street , 18th Floor ■ Salt Lake City, Utah 84101 12

Base Administrative Costs

SERVICE TIMEMINUTES COSTPER MINUTE COSTHome Occupation -Renewal

Business Licensing 115 $0.43 $49.45

Supplies & Compliance

$6.14

Total Cost $55.59

Home Occupation Renewal

Zions Bank Public Finance ■ One South Main Street , 18th Floor ■ Salt Lake City, Utah 84101 13

Base Administrative Costs

SERVICE TIMEMINUTES COSTPER MINUTE COSTSolicitor

Business Licensing 180 $0.43 $77.40

Supplies & Compliance

$14.89

Total Cost $92.29

Solicitor License

Zions Bank Public Finance ■ One South Main Street , 18th Floor ■ Salt Lake City, Utah 84101 14

Disproportionate Services Cost

Utah code allows cities to recoup disproportionate costs for municipal

services including:

PoliceFire

Storm Water RunoffTraffic Control

ParkingTransportationBeautificationSnow Removal

Zions Bank Public Finance ■ One South Main Street , 18th Floor ■ Salt Lake City, Utah 84101 15

Disproportionate Services Cost

OWNER OCCUPIED SINGLE FAMILY HOMES AVERAGE POLICEAverage Annual Police Calls

270

Total Number of Units 423

Base Call Ratio 0.638

Base Call Ratio

“the level of municipal services that constitutes the basic level of municipal services in the municipality”

Zions Bank Public Finance ■ One South Main Street , 18th Floor ■ Salt Lake City, Utah 84101 16

Disproportionate Services Cost

Se-ries1

0

0.2

0.4

0.6

0.8

1

1.2

Range of Police Base Call Ratios

Zions Bank Public Finance ■ One South Main Street , 18th Floor ■ Salt Lake City, Utah 84101 17

Disproportionate Services Cost

Base Call Ratio 0.638

Single Family Rentals

Average Annual Calls 44

Total Number of Units 57

Call Ratio 0.772

Disproportionate Call Ratio 0.134

Duplex

Average Annual Calls 6.5

Total Number of Units 8

Call Ratio 0.813

Disproportionate Call Ratio (per unit)

0.175

3+ Units

Average Annual Calls 71

Total Number of Units 60

Call Ratio 1.175

Disproportionate Call Ratio 0.537

Residential Rental Disproportionate Call Ratio

Zions Bank Public Finance ■ One South Main Street , 18th Floor ■ Salt Lake City, Utah 84101 18

Disproportionate Services Cost

RENTAL HOUSING TYPE DISPROPORTIONATE CALL RATIO COST PER CALL DISPROPORTIONATE POLICE COSTSingle Family 0.134 $129 $17

Duplex 0.175 $129 $23/unit

3+ Apartments 0.537 $129 $69/unit

Rental Cost Summary

Zions Bank Public Finance ■ One South Main Street , 18th Floor ■ Salt Lake City, Utah 84101 19

Good Landlord Program

Good Landlord Program & Non-Discrimination Policy

Utah Code 10-1-203Must perform a

municipal services study to collect a

disproportionate rental fee~

Disproportionate rental fee may not exceed the

“rental housing cost”

What is your city's “rental housing cost?”

Does the rental housing cost justify a Good Landlord Program?

Considerations for a Good Landlord Program:• Include all rentals or only 3+ rentals?• Participation/suspension requirement?

Zions Bank Public Finance ■ One South Main Street , 18th Floor ■ Salt Lake City, Utah 84101 20

Disproportionate Services Cost

TYPE POLICE DISPROPORTIONATE CALL RATIO POLICE COST PER CALL POLICE COST PER BUSINESSAutomotive Services 0.925 $129 $119

Business, Professional & Personal Services

0.000 $129 $0

Check Casing/Pay Day Loans 1.362 $129 $176

Commercial Day Care 2.362 $129 $305

Construction/Manufacturing/Contracted Services

1.688 $129 $218

Convenience Stores – No t Open 24 hrs. 8.612 $129 $1,111

Convenience Stores – Open 24 hrs. 18.362 $129 $2,369

Entertainment/Recreation 5.362 $129 $692

Finance 7.862 $129 $1,014

Commercial Police Disproportionate Call Ratios

Zions Bank Public Finance ■ One South Main Street , 18th Floor ■ Salt Lake City, Utah 84101 21

Disproportionate Services Cost

TYPE POLICE DISPROPORTIONATE CALL RATIO POLICE COST PER CALL POLICE COST PER BUSINESSHotel/Motel (<90 rooms) 0.436 $129 $56

Hotel/Motel (90+ rooms) 0.219 $129 $28

Large Retail (415,000+ square feet)

24.862 $129 $3,207

Membership Organization 0.862 $129 $111

Restaurant (Alcohol) 7.862 $129 $1,014

Restaurant (Limited or No Alcohol)

0.000 $129 $0

Sales/Service/Rental 0.599 $129 $77

Storage Units (< 500 units)

0.000 $129 $0

Storage Units (500+ units) 0.004 $129 $0.52/unit

Transportation 0.000 $129 $0

Truck Stop 48.862 $129 $6,303

Commercial Police Disproportionate Call Ratios

Zions Bank Public Finance ■ One South Main Street , 18th Floor ■ Salt Lake City, Utah 84101 22

Enhanced Services Cost

Based on information provided by Marriott-Slaterville, the City does not currently have

Enhanced Services Costs.

Higher service levels compared to basic services provided

by the City:

LandscapingSnow removal

Additional patrolSignage

Zions Bank Public Finance ■ One South Main Street , 18th Floor ■ Salt Lake City, Utah 84101 23

Total Business Licensing Cost

TYPE BASE ADMINISTRATIVE COST DISPROPORTIONATE COST TOTAL RENEWAL COSTAutomotive Services $188 $119 $307

Business, Professional & Personal Services

$188 $0 $188

Check Casing/Pay Day Loans $188 $176 $364

Commercial Day Care $188 $305 $493

Construction/Manufacturing/Contracted Services

$188 $218 $406

Convenience Stores – Not open 24 hrs. $188 $1,111 $1,299

Convenience Stores – Open 24 hrs. $188 $2,369 $2,557

Entertainment/Recreation $188 $692 $880

Finance $188 $1,014 $1,202

Total Renewal Cost – Commercial Businesses

Zions Bank Public Finance ■ One South Main Street , 18th Floor ■ Salt Lake City, Utah 84101 24

Total Business Licensing Cost

TYPE BASE ADMINISTRATIVE COST DISPROPORTIONATE COST TOTAL COSTHotel/Motel (<90 rooms) $188 $56

$188 + $56/room

Hotel/Motel (90+ rooms) $188 $28$188 +

$28/room

Large Retail (415,000+ square feet)

$188 $3,207 $3,395

Membership Organization $188 $111 $299

Restaurant (Alcohol) $188 $1,014 $1,202

Restaurant (Limited or No Alcohol)

$188 $0 $188

Sales/Service/Rental $188 $77 $265

Storage Units (< 500 units) $188 $0 $188

Storage Units (500+ units) $188 $0.52/unit$188+$0.52/

unit

Transportation $188 $0 $188

Truck Stop $188 $6,303 $6,491

Total Renewal Cost – Commercial Businesses

Zions Bank Public Finance ■ One South Main Street , 18th Floor ■ Salt Lake City, Utah 84101 25

Business License Fee Comparables

TYPE MARIOITT-SLATERVILLE COST HARRISVILLE NORTH OGDEN SOUTH SALT LAKE COTTONWOOD HEIGHTS TAYLORSVILLEAutomotive Services $305 $137 $230 $161 $232 $492

Business, Professional & Personal Services

$185 $66 $64 $190 $90 $78

Check Cashing/Pay Day Loans

$365 $84 $461 $190 $624 $78

Commercial Day Care $490 $65 $64 $299 $260 $128

Construction/Manufacturing/Contracted Services

$405 $126 $64 $260$112$197

$103

Convenience Stores – Not open 24 hrs.

$1,295$701

prepay$860 $1,319 $833 $878

Convenience Stores – Open 24 hrs.

$2,555$1,701

no prepay

$860 $1,815 $833 $878

Entertainment/Recreation

$880 $873 NSC NSC NSC NSC

Finance $1,200 $84 $461 $538 $624 $967

Zions Bank Public Finance ■ One South Main Street , 18th Floor ■ Salt Lake City, Utah 84101 26

Business License Fee Comparables

TYPE MARIOITT-SLATERVILLE COST HARRISVILLE NORTH OGDEN SOUTH SALT LAKE COTTONWOOD HEIGHTS TAYLORSVILLEHome Occupation $55 $84 $64 $18 $49

$50$100

Hotel/Motel (<90 rooms)

$185 + $56/room

$498 NA$147 +

$63/room

$116 + $3.40/roo

m

$78 + $83/room

Hotel/Motel (90+ rooms)

$185 + $28/room

$498 NA$147 +

$63/room

$116 + $3.40/roo

m

$78 + $83/room

Large Retail (415,000+ sq. ft.)

$3,395$61,853$24,741

$549 $1,237 $477 $461

Membership Organization

$295 NA NA NA NA

Restaurant (Alcohol) $1,200$403$161

$143 $342 $516 $303

Restaurant (Lmt /No Alcohol)

$185$403$161

$492 Fast Food

$143 Other$342 $516 $303

Sales/Service/Rental $265 $66 $123 $273 $133 $128

SOB *$665 NA NA NA*Ogden SOB Fee

Zions Bank Public Finance ■ One South Main Street , 18th Floor ■ Salt Lake City, Utah 84101 27

Business License Fee Comparables

TYPE MARIOITT-SLATERVILLE COST HARRISVILLE NORTH OGDEN SOUTH SALT LAKE COTTONWOOD HEIGHTS TAYLORSVILLESolicitors/Peddlers/Vendors

$90 $82 $80 NA $89 $282

Storage Units (< 500 units)

$185 $105 NA$147 +

$0.21/unit

$83 + $0.09/uni

t$78

Storage Units (500+ units)

$185+$0.52/unit

$105 NA$147 +

$0.21/unit

$83/$0.09 $78

Temporary Licenses $80 $82 $64 - $80 $147 $118 $250

Transportation $185 NA NA NA NA NA

Truck Stop $6,490 NA NA NA NA NA

Zions Bank Public Finance ■ One South Main Street , 18th Floor ■ Salt Lake City, Utah 84101 28

Business License Fee Process

Simplify Business License Fee Schedule

On-Line Business License Renewals

Streamline Business License Approval Process

Trends in Other Cities