City council moved last week to increase the cost for out-of-town businesses to work in St. Albert, but some councillors said such a move will only lead to some businesses ducking the fee completely.
As part of their budget discussions, council voted five to two to increase the cost for non-resident business licenses. The licenses apply to companies that operate in the city but don't have offices here. They generally cover tradespersons like plumbers and electricians.
The fees will rise from $425 to $600 for full year licenses and from $250 to $350 for licenses that start after Sept. 1.
Coun. Roger Lemieux proposed the change and he was joined in the final vote by Mayor Nolan Crouse, Coun. Len Bracko, Coun. Malcolm Parker, and Coun. Wes Broadhead.
Coun. Cam MacKay and Coun. Cathy Heron, both voted against the increase.
Heron argued that increasing the city's fees would only lead to more businesses avoiding it.
"It will drive a lot of the business underground," she said. "We are already way higher than any other capital region municipality surrounding Edmonton."
Edmonton still has a higher fee, but MacKay argued it is not an apples to apples comparison.
"Edmonton has a large variety of businesses that provide a wide variety of specialized services," he said.
Lemieux said the increase would be a minor issue for most businesses.
"If $200 is going to break a company then it is on the verge of breaking anyway," he said.
Crouse also argued it was a way to bring in more revenues without relying on taxpayers.
"I am going to support the motion, because we are being asked by our residents to find ways to raise revenue and lower our tax rates and this is going to do it to the tune of $100,000," he said.
Parker also argued the message showed a strong move.
"This is giving a message to our local business community that we are supporting them," he said.
After failing to convince council to hold off on any increases, MacKay attempted to argue for a smaller increase, suggesting $500 and $300 instead, but that vote was also defeated.
Other votes
Two other council moves on fees passed with much less debate. Council voted unanimously to exempt residents who receive Assured Income for the Severely Handicapped (AISH) payments from a transit fee increase.
As part of a broader increase on transit payments, those costs were expected to move up, but MacKay moved to hold off on any increase until there is a corresponding increase in payments they receive.
MacKay said it was unfair to increase the costs on AISH recipients if they were not receiving any more money.
"We know that AISH recipients receive from the provincial government has been essentially stagnant for a while," he said.
MacKay's motion was a permanent change to city policy, which will only allow for increase to transit cost for AISH users if there is an increase in the payments.
Council also gave nearly unanimous consent to a move aimed at reducing the number of portable roadside signs, especially along St. Albert Trail.
Businesses wanting to put up portable signs will now have to pay a $300 fee, up from the $100 fee they pay right now.
Lemieux, who brought forward the idea, said the signs detract from the city's appearance and in a perfect world he would like to see them removed, but he wants to make them more costly and hopefully less common.
He said the increase is still reasonable but should help thin the number of signs.
"I believe that $300 is fine if you really want a sign to promote your business," he said.
MacKay was the lone voice of opposition to the change.
"If you are a small business starting up it is probably the best way to promote your business," he said.
All of the city's fees, which include increases to recreation costs and other city services, were set to be voted on Tuesday night, after the Gazette went to press.
