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Council reviews proposed $4,000 business license exemption; fee schedule changes to follow
Summary
Staff presented a mandatory ordinance to raise the business‑license exemption threshold to $4,000 and asked council whether to review the city’s fee schedule (currently $115 for small businesses and $300 for larger ones); council directed staff to gather comparative fees and return for future action.
City staff briefed the council on two linked business‑license items: a state mandate requiring an ordinance and a separate local decision about the fee schedule.
The mandatory ordinance change increases the city’s exemption threshold to $4,000 in taxable activity. Staff noted the ordinance’s technical redline edits were based on another city’s amendment attorney‑recommended language and said the ordinance must be adopted by Oct. 1 to remain compliant with state requirements.
Separately, staff asked whether the council wanted to revisit the local business‑license fee schedule. Current fees in the rate and fee resolution are $115 for businesses with up to 12 employees and $300 for those with 13 or more; staff said the city has not raised those fees in many years and that some comparable Washington cities show fees under $50. Staff said the state business‑license service now handles notices and collections, reducing staff burden, but community development and finance still review and post payments, which takes staff time.
Council discussion focused on data gathering. Councilmember Chantelle asked when fees were last adjusted; staff replied the rates have been stable for many years and recommended compiling comparable fees from other tourist towns (Chelan, Cle Elum, Roslyn, etc.) and returning with a recommendation. Staff also agreed to check specific neighboring cities flagged by council for variable fee structures. Council did not change rates at the meeting and no vote was taken on fee changes; staff will return with a comparative analysis and potential amendments to the rate and fee schedule for future action.
Next steps: staff to collect fee data from comparable cities, estimate cost recovery for processing licenses, and present a recommended fee schedule at a later meeting; the mandatory ordinance to raise the exemption to $4,000 will be placed on the council agenda for the next meeting for adoption to meet the Oct. 1 mandate.
