From Deseret News archives:
Is mayor hurting business?
So it is with the budget debate, which began in earnest this past week as Mayor Rocky Anderson presented his recommendations to the City Council. It has until June 21 to pass a final budget.
The council is already haggling over some of Anderson's ideas. To gain some much needed extra revenue — $250,000 to be exact — Anderson has suggested the city increase its per-employee business licensing fee from $10 per employee to $12.
City Council members, however, wondered what kind of message the increase would send. After all, Councilman Dave Buhler asked, doesn't the city want large companies with many employees to locate here? Isn't it a good thing for the city if a company has many employees? The mayor's plan, however, seems to punish those companies, Buhler said.
He noted that city businesses will be paying the brunt of the city's recently passed, voter-approved bonds, and their taxes are already higher than those of suburban businesses.
Councilwoman Nancy Saxton agreed that now is not the time to be placing more burdens on businesses.
"It is tough out there for businesses," she said. "We are going in the wrong direction . . . I do not think this is the time to start raising fees."
The fees cover the city's cost for providing services to employees who might not pay city property taxes.
For instance, a Davis County resident who works in Salt Lake City uses the sewer system, might need the police or fire department, uses city-owned streets and sidewalks and benefits from many other city services while not paying any city taxes.
The $10 per employee fee is designed to let the city recoup some of its costs for serving this non-taxpaying employee.
But Salt Lake City already charges a high rate for per-employee licensing when compared with suburban cities.
Provo doesn't charge any per-employee fee. West Valley City, Taylorsville and South Salt Lake City charge $6; Murray and Midvale charge $3 and $5 respectively.
Council Chairwoman Jill Remington Love reminded the council Thursday that if they reject one of the mayor's recommended revenue sources, they will have to cut services somewhere else to make ends meet.
E-mail: bsnyder@desnews.com
