IRVINE : City Gives Final OK to Business Fee Cut

A divided City Council has reaffirmed its support for a plan to cut business license fees in an effort to make the city more “business friendly.”

During a final reading of the business license ordinance last week, council members disagreed on the merits of the plan in a debate similar to the one they had when the fee reductions were initially approved a month ago.

The 3-2 vote means that all businesses will pay a flat $50 annual license fee regardless of how many people they employ. Until now, the fee for businesses was $50. In addition, businesses with more than four employees paid $3 for each additional worker. The reduction is expected to save businesses about $250,000.

Mayor Michael Ward said the fee reductions demonstrate that Irvine is “committed to attracting businesses to our city and to maintaining the ones who are already located here.”

Ward said that Irvine’s fee cuts will send an even stronger statement now as surrounding cities consider raising business fees to close budget deficits. “We will be able to contrast our taxes as a clear indicator of this city’s commitment to encouraging businesses to locate here and stay here.”

Opponents of the fee reduction agreed that Irvine should support its businesses. However, they said the current fee system is far from onerous and that eliminating the $3-per-employee charge will have little impact on businesses.

Council member William A. (Art) Bloomer complained that the fee reductions give large businesses with hundreds of employees a greater tax break than smaller companies with just a handful of workers. “I don’t think it’s fair,” he said.

Bloomer was joined by Councilwoman Paula Werner in opposing the measure. Ward, along with council members Barry J. Hammond and Christina L. Shea, voted for the fee reductions.