1. S Zions Bank Public Finance Zions Bank Public Finance Business License Fee Studies September 18, 2015

2. Zions Bank Public Finance ■ One South Main Street, 18 th Floor ■ Salt Lake City, Utah 84101 2 Why A Business License Fee Study? Ensure fees and licensing structure are compliant with Utah Code Cover increasing costs Account for new businesses Equitable fee distribution Considering assessing residential rental fees or update residential rental fees Percent of business licensing costs recouped through business licensing fees

3. Zions Bank Public Finance ■ One South Main Street, 18 th Floor ■ Salt Lake City, Utah 84101 3 Utah Code 10-1-203 – General Businesses Cities may license for the purpose of regulation and revenue any business within the limits of the municipality… Cities may charge for disproportionate and enhanced municipal service costs The amount of a fee shall be reasonably related to the costs of the municipal services provided by the municipality All license fees and taxes shall be uniform in respect to the class upon which they are imposed

4. Zions Bank Public Finance ■ One South Main Street, 18 th Floor ■ Salt Lake City, Utah 84101 4 Business Licensing Costs I. Base Administrative Costs Costs common to all types of businesses Register, oversee, maintain records, etc. I. Base Administrative Costs Costs common to all types of businesses Register, oversee, maintain records, etc. II. Disproportionate Costs Disproportionate Regulatory Costs Disproportionate Service Call Costs II. Disproportionate Costs Disproportionate Regulatory Costs Disproportionate Service Call Costs III. Enhanced Costs Higher level of service for a specific portion of the business community III. Enhanced Costs Higher level of service for a specific portion of the business community Cost Categories

5. Zions Bank Public Finance ■ One South Main Street, 18 th Floor ■ Salt Lake City, Utah 84101 5 Information Needed Interviews Business Licensing Process Time/People Involved Priorities & Concerns Interviews Business Licensing Process Time/People Involved Priorities & Concerns Financial Information Budgets Salaries/Benefits Financial Information Budgets Salaries/Benefits Police, Fire & EMS Call Data Two Years of Call Data Police, Fire & EMS Call Data Two Years of Call Data Business Licensing Costs

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

7. Zions Bank Public Finance ■ One South Main Street, 18 th Floor ■ Salt Lake City, Utah 84101 7 Base Administrative Costs Types of Licenses Commercial (New Application & Renewals) Home Occupation (New Application & Renewals) Seasonal Businesses Solicitors Special Events Types of Licenses Commercial (New Application & Renewals) Home Occupation (New Application & Renewals) Seasonal Businesses Solicitors Special Events Commercial New Application Source: Numbers are based on typical costs for cities along the Wasatch Front, 2010 - 2014

8. Zions Bank Public Finance ■ One South Main Street, 18 th Floor ■ Salt Lake City, Utah 84101 8 Disproportionate Service Costs Disproportionate Regulatory Costs Additional services required by business license administration, police and fire departments for regulated businesses such as nursing homes, daycare facilities, restaurants, etc. Disproportionate Regulatory Costs Additional services required by business license administration, police and fire departments for regulated businesses such as nursing homes, daycare facilities, restaurants, etc. Disproportionate Service Call Costs Level of 911 calls to Police, Fire and EMS above the base number of calls. ~ Base number of calls Level of 911 Police, Fire and EMS calls to single family owner-occupied residences Disproportionate Service Call Costs Level of 911 calls to Police, Fire and EMS above the base number of calls. ~ Base number of calls Level of 911 Police, Fire and EMS calls to single family owner-occupied residences

9. Zions Bank Public Finance ■ One South Main Street, 18 th Floor ■ Salt Lake City, Utah 84101 9 Disproportionate Regulatory Costs Source: Numbers are based on typical costs for cities along the Wasatch Front, 2010 - 2014

10. Zions Bank Public Finance ■ One South Main Street, 18 th Floor ■ Salt Lake City, Utah 84101 10 Disproportionate Service Call Costs Geo-Code 911 Police, Fire and EMS Service Calls

11. Zions Bank Public Finance ■ One South Main Street, 18 th Floor ■ Salt Lake City, Utah 84101 11 Disproportionate Service Call Costs Business Groupings “All license fees and taxes shall be uniform in respect to the class upon which they are imposed” UC 10-1-203(6) 1. Type of Business 2. Location Per Employee Fees

12. Zions Bank Public Finance ■ One South Main Street, 18 th Floor ■ Salt Lake City, Utah 84101 12 Disproportionate Service Call Costs Base Call Ratio Level of 911 Police, Fire & EMS service calls to single family owner- occupied residences Base Call Ratio Level of 911 Police, Fire & EMS service calls to single family owner- occupied residences Source: Business license fee studies for six cities along the Wasatch Front, 2010 - 2014

13. Zions Bank Public Finance ■ One South Main Street, 18 th Floor ■ Salt Lake City, Utah 84101 13 Disproportionate Service Call Costs Disproportionate Call Ratio Average annual number of calls above the base call ratio Disproportionate Call Ratio Average annual number of calls above the base call ratio

14. Zions Bank Public Finance ■ One South Main Street, 18 th Floor ■ Salt Lake City, Utah 84101 14 Disproportionate Service Call Costs Cost Per Call Additional costs associated with providing a level of service above that which would be required assuming there were no calls for service Cost Per Call Additional costs associated with providing a level of service above that which would be required assuming there were no calls for service Source: Business license fee studies for nine cities along the Wasatch Front., 2010 - 2014

15. Zions Bank Public Finance ■ One South Main Street, 18 th Floor ■ Salt Lake City, Utah 84101 15 Disproportionate Services Cost Source: Numbers are based on typical costs for Cities along the Wasatch Front, 2010 - 2014

16. Zions Bank Public Finance ■ One South Main Street, 18 th Floor ■ Salt Lake City, Utah 84101 16 Disproportionate Service Call Costs Trends Disproportionate Service Call Costs Source: Business license fee studies for 5 cities along the Wasatch Front, 2010 - 2014

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

18. Zions Bank Public Finance ■ One South Main Street, 18 th Floor ■ Salt Lake City, Utah 84101 18 Total Business Licensing Costs Source: Numbers are based on typical costs for Cities along the Wasatch Front, 2010 - 2014

19. Zions Bank Public Finance ■ One South Main Street, 18 th Floor ■ Salt Lake City, Utah 84101 19 Utah Code 10-1-203.5 -Residential Rentals Municipalities may license and charge a fee to residential rentals May charge and collect a disproportionate rental fee if…. 1.Municipality has performed a municipal services study 2.Adopts a rental fee that does not exceed the cost to provide municipal services 3.Exception - 4 or less units with one unit occupied by the owner Must provide a disproportionate rental fee reduction if charge a disproportionate fee

20. Zions Bank Public Finance ■ One South Main Street, 18 th Floor ■ Salt Lake City, Utah 84101 20 Utah Code 10-8-85.5 -Residential Rentals Only one license per owner May not charge a fee for the inspection of a rental dwelling

21. Zions Bank Public Finance ■ One South Main Street, 18 th Floor ■ Salt Lake City, Utah 84101 21 Additional Information Needed Rental Housing Single Family Multi-Family Rental Housing Single Family Multi-Family Rental Housing Costs

22. Zions Bank Public Finance ■ One South Main Street, 18 th Floor ■ Salt Lake City, Utah 84101 22 Rental Housing Cost Source: Numbers are based on typical costs for Cities along the Wasatch Front, 2010 - 0214

23. Zions Bank Public Finance ■ One South Main Street, 18 th Floor ■ Salt Lake City, Utah 84101 23 Rental Housing Cost Source: Numbers are based on typical costs for Cities along the Wasatch Front, 2010 - 2014

24. Zions Bank Public Finance ■ One South Main Street, 18 th Floor ■ Salt Lake City, Utah 84101 24 “Good Landlord Program” Program established by a municipality that provides a reduction in the disproportionate rental fee for a landlord who: Completes a Good Landlord training program approved by the municipality Implements measures to reduce crime in rental housing as specified in municipal ordinances Operates and manages rental housing in accordance with applicable municipal ordinance

25. Zions Bank Public Finance ■ One South Main Street, 18 th Floor ■ Salt Lake City, Utah 84101 25 “Good Landlord Program” Feasibility & Considerations Disproportionate costs Number of rentals with a disproportionate cost Types of calls Include all rentals or just 3+ rentals? Include mobile homes? Renewal dates Participation/suspension requirements “Buy-in” of Police Department

26. Zions Bank Public Finance ■ One South Main Street, 18 th Floor ■ Salt Lake City, Utah 84101 26 Total Costs Source: Numbers are based on typical costs for Cities along the Wasatch Front, 2010 - 2014

27. Zions Bank Public Finance ■ One South Main Street, 18 th Floor ■ Salt Lake City, Utah 84101 27 Deliverables Interactive spreadsheet to project revenues with varying fees Written report with clear explanation of all calculations Power point for public hearing and interim meetings Rates in comparable cities/counties Assistance with Good Landlord implementation Ordinance review

28. Zions Bank Public Finance ■ One South Main Street, 18 th Floor ■ Salt Lake City, Utah 84101 28 State-Wide Trends On-line renewals On-line renewal notices On-line interdepartmental notification Fee schedule consolidation Between 60% - 75% cost recovery

29. Zions Bank Public Finance ■ One South Main Street, 18 th Floor ■ Salt Lake City, Utah 84101 29 Review Ensure fees and licensing structure are compliant with Utah Code Cover increasing costs Account for new businesses Equitable fee distribution Considering assessing residential rental fees or update residential rental fees Percent of business licensing costs recouped through business licensing fees

30. Zions Bank Public Finance ■ One South Main Street, 18 th Floor ■ Salt Lake City, Utah 84101 30 Questions