Hurricane council considers raising business license to $100, staff proposes nonrefundable renewal fees

City staff told the Hurricane City Council they recommend restoring the regular business license fee to $100 and changing the refund rule for renewals to discourage incomplete applications and offset growing administrative costs.

The recommendation, discussed under agenda item 11, comes after the city reduced its regular business license from $100 to $50 in 2013 following a push by Governor Herbert for more business-friendly policies. Staff noted that day-use permits were not adjusted in 2013 and currently cost about the same as an annual license — staff cited $50 per day or $150 for eight consecutive days — which council members said creates an inconsistency.

Staff outlined the renewal workflow and the staff time it requires. "Staff recommends raising the regular business license back to a hundred dollars to offset rising costs and account for the additional work involved in insurance timely renewals," Speaker 1 summarized during the discussion. Staff explained renewals include a notice mailed 45 days before expiration, a courtesy reminder (not required by code), a delinquent notice 30 days after expiration, and a failure-to-renew notice if no response occurs after an additional 15 days; staff said renewals may be reviewed weekly and sometimes require multiple follow-ups.

The staff packet included a comparative chart of neighboring cities' fees and a description of the current refund practice, which staff said causes extra work and returned/uncashed checks when applicants pay but fail to complete required steps. "Staff proposes a code change making the renewal fee nonrefundable if the business does not fulfill all requirements," Speaker 2 said. Multiple council members voiced support for a nonrefundable approach as a deterrent to incomplete applications.

Several council members asked for data before agreeing to a fee increase. "I wanna know that we're actually... it's taking more time to cost us more money," Speaker 1 said, urging staff to quantify administrative costs before the council raises fees. Others noted the state rule that fees must be based on administration time, meaning the city could justify differentiated fees for large and small businesses only if it can document differing administrative burdens.

The council also discussed enforcement approaches and time limits for applicants to complete requirements; several members suggested a fixed window (for example, six months) after which the applicant would need to reapply and repay fees. The conversation addressed special-case day permits — fireworks and some temporary-sales permits were described as already charged at higher day-permit rates in other jurisdictions — and the role of fire inspections as a prerequisite for certain business licenses.

Rather than adopt an immediate fee increase, the council asked staff to run analytics on time and cost for licensing, refunds and follow-up and return with options. "Maybe what it sounds like to me... is we let us go back and run some analytics on the costs associated with the time spent, and then maybe we can bring that back," Speaker 4 said; several members indicated general support for a nonrefundable policy pending the data.

The council did not take a formal vote on fees at the meeting. Staff will return with cost estimates and recommended fee options for further council consideration.