12-18-96 Council Minutes - Laserfiche WebLink

Home Browse Search

MINUTES CITY COUNCIL DECEMBER 18~ 1996 their time spent was dependent on the number of transactions, then perhaps the fee could be reduced based on business activities. Otherwise a flat license fee needed to be in place. Scalze pointed out that the City does not get involved in business practices. License fees are set to cover costs so taxpayers are not subsidizing this business. LaValle felt there should be a certain amount of credit given for property taxes paid. Scalze pointed out that property taxes cover costs associated with providing City services related to water, sewer, street, police and fire protection. LaValle felt the $7,700 annual cost indicated by the Sheriff~s Department was out-of-line. Fahey felt covering costs was not the primary factor in setting license fees. Fahey felt a$500 increase in the pawn brokers license fee was a reflection of the increase in the Sheriff's Department contract. Scalze pointed out that the revenue from this license fee will have an impact on the 1997 net levy. Fahey stated that he realized this impact, but felt it was an issue of fairness, and did not believe a fee should be set which was not justified. Pedersen asked if the cost of the Sheriff's contract would go down if the pawn shop did not exist. The City Administrator replied that the cost would likely not go down, but the time would be spent in a different manner. Pedersen pointed out that the City knows that the Sheriff's Department must review every transaction made at the pawn shop. The pawn brokers license fee brings the cost down to a base line which should be equal to the cost of providing City services to other businesses in town. Fahey felt that the Sheriff's Department did not adjust their time spent regulating the pawn shop based on the number of transactions which occur. Fahey felt a $7,000 annual pawn brokers license fee seemed to be in the ballpark based on the estimates provided by the Sheriff's Department. 6