It appears as though tradespeople and contractors doing business in — or out of — the City of Langley will have a couple more years to take advantage of a streamlined business licensing pilot program.
Council was asked by City staff on Nov. 18 to consider expanding the one-year inter-municipal business licence pilot program — due to expire on Dec. 31 — until the end of 2015.
Staff told council the extra time is needed to bring the program into a revenue neutral state.
Of the nine participating municipalities, three have lost money on the pilot program, including the City, which finds itself more than $7,500 in the hole after one year.
The City of Surrey and District of Hope have also seen a decline in revenue, according to the staff report.
From the outset of the program, the primary goal was for the City’s income from licence fees to remain revenue neutral, based on 2011 financial data submitted by the nine participating communities, said Gerald Minchuk, director of economic development for the City of Langley.
“The circumstances between 2011 and 2013 have changed. The objective was to be revenue neutral at this time. We’re currently $7,514 in the red,” he told council.
The inter-municipal, or mobile business licence, allows contractors and tradespeople to operate in any participating municipality with only one licence, rather than having to purchase one licence in the community where they are based and another in the community in which they are working.
Other communities taking part in the pilot program include the Township of Langley, Abbotsford, Chilliwack, Mission, Maple Ridge and Pitt Meadows.
Revenue has not been as balanced among the nine communities as expected.
But City staff believe it’s a discrepancy that can be addressed with some adjustments to the program formula.
“The one-year timeline for the current pilot project has not allowed sufficient time for the steering committee to give consideration to key factors that are necessary to ensure the success of the program beyond a pilot stage,” reads the staff report.
“Therefore the recommendation is to continue with the existing program for an additional two years, making a few minor housekeeping changes to the bylaw to extend the dates of the pilot itself and to adjust the dates of the revenue disbursement.”
Those refinements will be made to the program’s formula in the New Year, said Minchuk.
“We will be happy to report when we have some of those refinements available,” he told council.
Council received the progress report and gave first, second and third reading to a two-year extension. It is expected to receive fourth and final reading on Dec. 2.
The other eight participating municipalities are also currently considering the extension, said Minchuk.
At its Nov. 18 meeting, Township of Langley Council also gave the extension first, second and third reading in a unanimous vote, with no discussion.
