GRANITE FALLS — The cost of doing business and owning property in town might creep up soon.
The Granite Falls City Council will hold public hearings on a new business and occupation tax, a business license fee, a property tax increase, an increase in developer fees and a new franchise fee for its garbage collector, Waste Management.
City staff have proposed the new revenues to help balance the 2004 budget, which will also get a first reading at the public hearing.
The city’s business community does not like the proposals, said Rob Salsgiver, president of the Granite Falls Chamber of Commerce.
"It’s a hurt," Salsgiver said. "You hate to be opposed to things you know are needed locally, but you still feel the pain overall."
The City Council has scheduled a special meeting at 7 p.m. Monday at City Hall to discuss these, plus a number of other items that have been left hanging because of a lack of a quorum at recent meetings. New Mayor Lyle Romack and new City Councilman Charlie Goodhope will be sworn in at the beginning of Monday’s meeting.
Gerry James, the city clerk, said this year’s budget is tight. The 2003 budget was $6.9 million, but in 2004 — without the grants from several large projects such as the Stanley Street renovation — the city’s budget is estimated to be about $5.35 million.
"The idea behind these fees is just to balance the budget without cutting services," James said.
The proposed increases:
B&O tax: The business and occupation tax would only apply to manufacturing, wholesale and financial institutions. Those businesses would pay 0.2 percent of their gross revenues.
Business license fees: The license fee would get its first increase in eight years. The new fees would start at $60 for businesses with three employees or less. The fee maximum would be $100 for 10 or more employees.
Property taxes: Besides local businesses, homeowners would see a jump in their city property taxes. A $200,000 home would pay about $40 more annually. Those revenues could add $35,900 to the city budget.
Planning fees: Applications for rezones, subdivisions and annexations would get their first increase since 1990. Subdivisions would cost $500 plus $50 per lot, up from $450 and $15 per lot.
Franchise fee: Waste Management would pay a new franchise fee of 1 percent of the gross revenues of its Granite Falls contract.
James emphasized that all of the proposals are subject to the City Council’s approval. The council, she added, could opt to change some of the measures or vote them down.
Salsgiver said he appreciated the town’s financial situation and the need to increase city revenues.
"The reality is, like with a lot of smaller towns, Granite Falls has historically operated fairly lean, trying not to burden people," Salsgiver said. "It’s a hard question to answer. From a business standpoint, the majority are pretty much against it. That being said, they all want to see the town do better."
Reporter Scott Morris: 425-339-3292 or smorris@heraldnet.com.
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
