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City of North Van considers $17 hike for business licences

CNV collects $1.28M in licence fees
money

How much should it cost to do business in the City of North Vancouver?

That was the key question in council May 7 as the city instigated the first overhaul of their business licensing program in a decade. The preliminary plan – which is still subject to a public hearing and council approval – boosts the base business licence fee from $111 to $128.

However, Mayor Darrell Mussatto wanted assurances the city wasn’t turning a profit on licence fees.

“I just don’t want to see it as a cash grab for the city,” he said. “If we’re getting $1.3 million a year from all our business fees, are we spending $1.3 million managing our businesses?”

The city generated $1.28 million in business licence fee revenue in 2017.

In looking closer at business fees, Mussatto noted the proprietor of a pool hall would pay an extra $42 for each table while businesses would pay $434 for each ATM. West Vancouver charges $375 for each ATM.

In the case of a pool hall, extra tables are indicative of a higher occupant load, according to city staff.

The fee should stay closer to $111, according to Mussatto, who recalled dealing with the city when he ran a CPR first aid business.

“You get absolutely nothing back for it, other than you get your business registered at the city,” he said of the fee.

The fees create a system of accountability and ensure businesses are consistent with city zoning as well as building and fire codes, according to city staff.

The business licence fee for a body rub parlour is $3,691 due to the likelihood of necessitating increased police or bylaw services, according to city staff. Similarly, pot shops will probably have higher fees to reflect the extra staff work. Conversely, non-profit agencies may be charged $5 for a licence.

However, Coun. Pam Bookham also wanted assurances the city wasn’t using “creeping increases” in business fees as taxation.

“(The system) should not in any way generate revenue that is not needed for the administration of the system.”

A $17 increase is reasonable, particularly given the time the city allocates for inspections, according to Coun. Holly Back.

“I don’t think that you’re charging too much at all,” she said.

Back recalled city staff returning to her hair saloon after discovering the bolt on the back of her toilet was incorrectly installed.

With the exception of inflationary increases, the city’s business licence fee structure hasn’t changed in more than 10 years, according to staff. The new price is: “the cost of doing business,” Back said.

The current system is: “unreasonably cumbersome and time consuming to administer,” according to city staff.

In order to make the system easier to manage, staff have proposed reducing the number of business categories from 570 to 112. The “inherent difficulty” of the current system is that business can be put in the wrong category and charged “an inappropriate rate,” according to staff.

The city currently divides office uses in six categories with eight subcategories.

The new approach is intended to quicken the application process and reduce the chances of a mistake.

While Back said she would like to see the number of categories reduced to 50, she supported a more streamlined structure.

That new structure may allow businesses to apply for the licence online, according to city staff.

Several councillors said they were eager to hear from the business community before voting on the new bylaw.

The city’s public hearing on the new licensing bylaw is tentatively slated for late June.

The District of North Vancouver charges a base fee of $299.40 for a one- or two-person business and $735.80 for a business with 20 employees. The fees escalate for every 10 employees to a maximum charge of $4,666.

West Vancouver charges $147 to licence most businesses operating in a space less than 750 square feet and an extra $91 for each additional 1,000 square feet. Other fees dip as low as $124 for small businesses including catering and dog walking companies.