CITY OF NORTH LAUDERDALE

COMMUNITY DEVELOPMENT DEPARTMENT

TO: Mayor and City Commission

FROM: Richard D. Sala, City Manager

BY: Tammy Reed-Holguin, Community Development Director

DATE: June 19, 2007

SUBJECT: Second Reading and Adoption:

Proposed Fee Schedule Revision (Article 1, Section 4 of Appendix F) - To Modify Local Business Tax (Occupational License Fees) and associated processing fees

The City’s Fee Schedule that determines the amount of local business tax, formerly known as occupational license fees, issued by the Community Development Department has not been revised since 1995. The City of North Lauderdale amended occupational license classifications and rate structure, by Ordinance 95-7-891, adopted on July 25, 1995. In 1995, the City established an Equity Study Commission pursuant to Section 205.0535(2), Florida Statutes, and also met the requirements of Section 205.0535(3), Florida Statutes. After the conditions of these sections of the Florida Statutes are met, municipalities may every other year thereafter increase by ordinance the rates of local occupational license taxes by up to five (5) percent.

The attached Ordinance adopts the following amendments:

· Increases all local business taxes (occupational license fees) by statutory limit of 5%.

· Increases processing/inspection fees, not limited to 5% by statute, based on hourly surcharge

· Deletes annual fire inspection fees which are covered through the assessment

· Increases fire re-inspection fee to $100 if there is a failed annual inspection. There continues to be no charge for the annual inspection if it is passed the first time.

· Endorses the change of title by a separate ordinance from occupational license to local business tax per FL. Statute, Chapter. 2006-152.

· Revises the local business tax renewal notice period from August 1 through September 30 permitting notification as early as July 1 per State Statute revised on May 3, 2007

Upon approval of the revised fee schedule on second and final reading, the new fees will be applied to all renewals (issued for fiscal year 2007/08) of local business tax receipts (occupational licenses) and to all new local business tax receipts issued after the effective date regardless of the date on which the application was applied for. It is the recommendation of the City Administration that the effective date of no later than Monday, July 2, 2007 be established to allow for an adequate notification period and for time to re-program the computers with the new fee schedule.

The City Commission approved the attached Ordinance on first reading on May 29, 2007. During this meeting, the Commission had some questions regarding the current rate structure and the proposed increases. A memorandum was provided on May 31, 2007 providing the information. In summary, it was found that the City may not undertake a new equity study which would be required in order to adjust the base rates (lower some, raise others and raise by different amounts) other than to uniformly increase them by up to 5% every other year, which is specifically authorized under Florida Statutes.

Upon further discussion with the Fire Department and City Attorney’s office after the first reading approval of this ordinance on May 29, 2007, staff recommends that the occupational use (OU) inspection fee be changed from a flat rate to a “per discipline” rate of $65 so it may be adjusted based on the number of disciplines needed at a particular business inspection. It is also recommended that a re-inspection fee for OU inspections of $100 per discipline be added to the fee schedule. This charge coincides with the re-inspection fee in building permits. This change is also included in the attached ordinance and is being presented tonight for a second reading and final adoption.

RECOMMENDATION:

The City Administration recommends the amendment to the Ordinance as stated above and recommends Commission’s approval and adoption on second reading of the attached ordinance amending Appendix F “Fees” of the City of North Lauderdale Code of Ordinances to reflect increases in the local business tax and associated processing fees.

ORDINANCE NO.

AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF NORTH LAUDERDALE, FLORIDA, AMENDING ARTICLE 1, SECTION 4, OF APPENDIX F OF THE CODE OF ORDINANCES OF THE CITY OF NORTH LAUDERDALE, ENTITLED OCCUPATIONAL LICENSE TAX, TO INCREASE BY FIVE PERCENT (5%) OF THE CURRENT RATE STRUCTURE FOR OCCUPATIONAL LICENSES AND INCREASES TO PROCESSING/INSPECTION FEES BASED ON HOURLY SURCHARGE; PROVIDING FOR CONFLICT; PROVIDING FOR SEVERABILITY; PROVIDING FOR INCLUSION; PROVIDING FOR AN EFFECTIVE DATE.

WHEREAS, Article 1, Section 4, of Appendix F of the Code of Ordinances of the City of North Lauderdale, Florida provides the classification and fees for Occupational Licenses; and

WHEREAS, pursuant to Section 205.0535(1), Florida Statutes, the City of North Lauderdale amended occupational license classifications and rate structure, by Ordinance 95-7-891, adopted on July 25, 1995; and

WHEREAS, prior to the adoption of Ordinance 95-7-891, the City established an Equity Study Commission pursuant to Section 205.0535(2), Florida Statutes, and also met the requirements of Section 205.0535(3), Florida Statutes, and

WHEREAS, pursuant to Section 205.0535(4), Florida Statutes, after the conditions of sections 205.0535(2) and (3), Florida Statutes, are met, municipalities may every other year thereafter increase by ordinance the rates of local occupational license taxes by up to five (5) percent; and

WHEREAS, the City Commission approved the last increase in rates on July 25, 1995 by Ordinance 95-7-891; and

WHEREAS, the City's professional staff recommends that the occupational license tax be increased by five (5) percent for licenses sold beginning July 1, 2007 for the period beginning October 1, 2007; and

WHEREAS, the City Commission accepts the recommendations of the City's professional staff and finds that the revisions to Article 1, Section 4, of Appendix F of the Code of Ordinances of the City of North Lauderdale, Florida, are in the best interests of all the citizens and residents of the City of North Lauderdale; and

WHEREAS, section 205.0535(4), Florida Statutes, requires a majority plus one vote of the City Commission to enact the increase.

NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF NORTH LAUDERDALE, FLORIDA:

Section 1. The foregoing "WHEREAS" clauses are hereby ratified and confirmed as being true and correct and are hereby made a specific part of this Ordinance upon adoption hereof.

Section 2. That Article 1, Section 4, of Appendix F, entitled "OCCUPATIONAL LICENSE TAX", of the Code of Ordinances of the City of North Lauderdale, Florida, is hereby amended to read as follows:

Sec. 4. Occupational license tax.

[(a)   Fees for businesses, not enumerated.  Every business, occupation, profession or exhibition, substantial, fixed or temporary engaged in by any person, whether in a building, tent or upon a street, vacant lot, or anywhere in the open air, within the city, and not specifically designated in this section, shall pay a license fee of $55.0057.75.

(b)   Fee schedule.  The occupation fees which shall be paid by persons engaging in or managing businesses, professions or occupations are hereby fixed as follows:] 

Occupational License Tax Classification and Schedule
#	Classification	Rate
1000	Abstract companies or agents	$200.00  $210.00
	ACLF - See nursing home
1001	Advertising agency	110.00    115.50
1002	Advertising, distribution	200.00  210.00
1003	Advisor/consultant	110.00  115.50
	Alterations - See clothing
1004	Ambulance	85.00    89.25
1005	Amusement parlors	330.00    346.50
1006	Animal boarding facility	75.00    78.75
1007	Animal exhibition; per day	180.00    189.00
1008	Animal grooming facility	75.00  78.75
1009	Animal hospital	75.00    78.75
1010	Animal pet shop	75.00    78.75
1011	Artists; art or handcraft studio	125.00  131.25
1012	Athletic arena	330.00    346.50
1013	Athletic exhibition	180.00    189.00
1014	Auction sales, auto	150.00  157.50
1015	Auction sales, household goods	220.00  231.00
1016	Auction sales, real and personal property	450.00  472.50
1017	Auction sales, shops	1,500.00 1,575.00
1018	Auction sales, shops (itinerant)	375.00  393.75
1019	Automobile dealers, new/used	220.00  231.00
1020	Automobile dealers, paint/body	80.00    84.00
1021	Automobile dealers, repair	80.00  84.00
1022	Automobile driving school	80.00  84.00
1023	Automobile rental service	120.00  126.00
1024	Automobile salvage	200.00    210.00
1025	Automobile tag, title agency	100.00  105.00
1026	Automobile towing agency	200.00  210.00
1027	Automobile trans., 5-passenger	65.00  68.25
1028	Automobile trans., 7-passenger	75.00  78.75
1029	Automobile trans., >7-passenger	150.00  157.50
1030	Automobile trans., bus co.	200.00  210.00
1031	Automobile wash	85.00    89.25
1032	Automatic game and device	50.00    52.50
1033	Automatic game and device, distributor	200.00 210.00
1034	Automatic trade machines	50.00  52.50
1035	Automatic trade machines, distributors	200.00    210.00
1036	Automatic trade machines, ice	35.00  36.75
1037	Automatic trade machines, musical	50.00  52.50
1038	Automatic trade machines, billiard/pool	45.00    47.25
1039	Automatic wash and dry machines	10.00  10.50
1040	Bail bond company	450.00  472.50
1041	Bakery, retail	80.00  84.00
1042	Bakery, route	80.00  84.00
1043	Bankruptcy/close-out sale, >15 dys	125.00  131.25
1044	Bankruptcy/close-out sale, >30 dys	155.00  162.75
1045	Bankruptcy/close-out sale, >60 dys	190.00  199.50
1046	Bankruptcy/close-out sale, addl. day	50.00    52.50
1047	Bankruptcy/close-out sale, trustee	290.00  304.50
1048	Barbershops, beauty salons	25.00    26.25
1049	Beer and wine sales - See package store
1050	Bingo hall	400.00  420.00
1051	Bookkeeping, tax, auditing svcs.	125.00  131.25
1052	Bowling alley	45.00    47.25
1053	Brokers or brokerage, futures/options	225.00  236.25
1054	Brokers or brokerage, goods	225.00    236.25
1055	Brokers or brokerage, mortgage	225.00  236.25
1056	Brokers or brokerage, produce	225.00  236.25
1057	Brokers or brokerage, ship/boat	225.00  236.25
1058	Brokers or brokerage, stocks/bonds	225.00  236.25
1059	Brokers or brokerage, commodity	225.00  236.25
1060	Brokers or brokerage, mutual	225.00    236.25
1061	Building inspection service	125.00 131.25
1062	Campaign headquarters	0.00
1062	Car rental service - See automobile rental service
1063	Car wash - See automobile wash
1063	Carnivals, circuses	100.00  105.00
1064	Carpentry shops	65.00  68.25