1. Zions Bank Public Finance DRAFT COPY October 18, 2012 Business License Fee Study Business License Fee Study

2. Zions Bank Public Finance One South Main Street, 18 th Floor Salt Lake City, Utah 84101 2 Update Study – Previous Study 2001 1. 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

3. Zions Bank Public Finance One South Main Street, 18 th Floor Salt Lake City, Utah 84101 3 Business License Fee Costs Total Business Licensing Cost Base Administrative Costs Disproportionate Service Costs Enhanced Service Costs

4. Zions Bank Public Finance One South Main Street, 18 th Floor Salt Lake City, Utah 84101 4 Base Administrative Costs Base Costs of Administering a License Common to all Types of Businesses Base Costs of Administering a License Common to all Types of Businesses Cost per Minute (each employee involved in business licensing) Cost per Minute (each employee involved in business licensing) Time per Task (for each business licensing task) Time per Task (for each business licensing task)

5. Zions Bank Public Finance One South Main Street, 18 th Floor Salt Lake City, Utah 84101 5 Base Administrative Costs Direct Costs Direct costs include labor costs (salary & benefits) and department overhead costs

6. Zions Bank Public Finance One South Main Street, 18 th Floor Salt Lake City, Utah 84101 6 Base Administrative Costs Indirect Costs

7. Zions Bank Public Finance One South Main Street, 18 th Floor Salt Lake City, Utah 84101 7 Base Administrative Costs Indirect Costs *While police services are contracted out, a portion of indirect costs are allocated to police to account for city administrative time spent on police related issues.

8. Zions Bank Public Finance One South Main Street, 18 th Floor Salt Lake City, Utah 84101 8 Base Administrative Costs Direct & Indirect Costs

9. Zions Bank Public Finance One South Main Street, 18 th Floor Salt Lake City, Utah 84101 9 Base Administrative Costs Commercial New Application * Includes city administrator & community development time spent on business licensing

10. Zions Bank Public Finance One South Main Street, 18 th Floor Salt Lake City, Utah 84101 10 Base Administrative Costs Commercial Renewal * Includes city administrator & community development time spent on business licensing

11. Zions Bank Public Finance One South Main Street, 18 th Floor Salt Lake City, Utah 84101 11 Base Administrative Costs Home Occupation New Application

12. Zions Bank Public Finance One South Main Street, 18 th Floor Salt Lake City, Utah 84101 12 Base Administrative Costs Home Occupation Renewal

13. Zions Bank Public Finance One South Main Street, 18 th Floor Salt Lake City, Utah 84101 13 Base Administrative Costs Solicitor License

14. Zions Bank Public Finance One South Main Street, 18 th Floor Salt Lake City, Utah 84101 14 Disproportionate Services Cost Utah code allows cities to recoup disproportionate costs for municipal services including: Police Fire Storm Water Runoff Traffic Control Parking Transportation Beautification Snow Removal

15. Zions Bank Public Finance One South Main Street, 18 th Floor Salt Lake City, Utah 84101 15 Disproportionate Services Cost Base Call Ratio the level of municipal services that constitutes the basic level of municipal services in the municipality

16. Zions Bank Public Finance One South Main Street, 18 th Floor Salt Lake City, Utah 84101 16 Disproportionate Services Cost

17. Zions Bank Public Finance One South Main Street, 18 th Floor Salt Lake City, Utah 84101 17 Disproportionate Services Cost Residential Rental Disproportionate Call Ratio

18. Zions Bank Public Finance One South Main Street, 18 th Floor Salt Lake City, Utah 84101 18 Disproportionate Services Cost Rental Cost Summary

19. Zions Bank Public Finance One South Main Street, 18 th Floor Salt Lake City, Utah 84101 19 Good Landlord Program Good Landlord Program & Non-Discrimination Policy Utah Code 10-1-203 Must perform a municipal services study to collect a disproportionate rental fee ~ Disproportionate rental fee may not exceed the rental housing cost Utah Code 10-1-203 Must perform a municipal services study to collect a disproportionate rental fee ~ Disproportionate rental fee may not exceed the rental housing cost

20. Zions Bank Public Finance One South Main Street, 18 th Floor Salt Lake City, Utah 84101 20 Disproportionate Services Cost Commercial Police Disproportionate Call Ratios

21. Zions Bank Public Finance One South Main Street, 18 th Floor Salt Lake City, Utah 84101 21 Disproportionate Services Cost Commercial Police Disproportionate Call Ratios

22. Zions Bank Public Finance One South Main Street, 18 th 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: Landscaping Snow removal Additional patrol Signage Higher service levels compared to basic services provided by the City: Landscaping Snow removal Additional patrol Signage

23. Zions Bank Public Finance One South Main Street, 18 th Floor Salt Lake City, Utah 84101 23 Total Business Licensing Cost Total Renewal Cost – Commercial Businesses

24. Zions Bank Public Finance One South Main Street, 18 th Floor Salt Lake City, Utah 84101 24 Total Business Licensing Cost Total Renewal Cost – Commercial Businesses

25. Zions Bank Public Finance One South Main Street, 18 th Floor Salt Lake City, Utah 84101 25 Business License Fee Comparables

26. Zions Bank Public Finance One South Main Street, 18 th Floor Salt Lake City, Utah 84101 26 Business License Fee Comparables *Ogden SOB Fee

27. Zions Bank Public Finance One South Main Street, 18 th Floor Salt Lake City, Utah 84101 27 Business License Fee Comparables

28. Zions Bank Public Finance One South Main Street, 18 th Floor Salt Lake City, Utah 84101 28 Business License Fee Process Trends in Other Cities