Two public meetings regarding Estevan’s proposed new business licence bylaw answered a lot of questions about the document, but it appears further clarification is needed on some fronts.
About a dozen people attended a public meeting at City Hall on June 30, and six more attended another meeting on July 4. Most of them posed questions for council, and voiced their concerns with the bylaw.
The bulk of the questions dealt with proposed fees and criteria for home-based businesses, farmers’ markets and trade shows. The bylaw stipulates there will be a $100 fee for a home-based business with annual income of under $30,000, a $250 fee for a business above $30,000 in income, a $125 annual fee for a farmers’ market, and a $250 fee for each trade show.
Councillor Greg Hoffort chaired the first meeting, as he is the deputy mayor, and Mayor Roy Ludwig was unable to attend. Ludwig was present for the second meeting.
Hoffort told the people present at the June 30 session that most cities have business bylaws, and he believes they are necessary.
“We have businesses in Estevan with large overhead, they pay a large amount of taxes to the city, and we hear from them on a regular basis when some companies (from out-of-town) come in,” said Hoffort.
He cited hot tubs as an example. A couple of businesses in Estevan sell hot tubs, and those businesses play a vital role in the community. They face competition from out-of-town dealers who come and sell hot tubs at the Estevan Shoppers’ Mall’s parking lot.
It will now cost $500 for a commercial company from out of town to come in and do business in the city. A commercial business located in Estevan will now pay $30 a year.
Pat Thompson, who is the manager of the Estevan Farmers’ Market, said the $125 fee for the market is “very reasonable,” and she is pleased their vendors will be covered by the fee when participating in the markets, since they have a lot of out-of-town participants.
But a home-based business that has sales outside of the farmers’ market would still need to apply for a licence if they’re in Estevan, or to be a transient trader if they’re from outside of the city and want to do business outside of the market.
There was confusion during the meeting on what happens if someone has multiple, distinct home-based businesses. Hoffort cited someone who offers accounting and massage services at their home, and also sells Tupperware.
Thompson also asked what will happen if a husband and wife have distinct businesses operating out of the same house, an issue that also needs some clarification.
Raelene Fieber questioned the $250 fee for a trade show, since it means the trade show operator will likely have to pass on the added expense to the vendors, which means booths will cost more. She is concerned people will attend trade shows in other communities, taking dollars out of the city.
City manager Jeff Ward noted they would probably waive the trade show fees for those that are fundraisers for non-profit organizations, schools and churches.
Two home-based business owners, Launa Coyne and Christine Jones, read emails they had sent to council previously. They were worried they will be forced to spend $100 each for a business licence, which represents a significant chunk of their business income.
They suggested that home-based businesses beneath a certain threshold, such as $5,000 or even $10,000, shouldn’t have to pay a fee, or the fee should be in the $25 range.
The threshold concept was also brought up repeatedly by people at the July 4 meeting.
Hoffort responded that council has discussed expanding the thresholds for home-based businesses.
“When you support home-based businesses, you support the single parent, the unemployed, the disabled that can’t work full time, and the ladies and gentlemen who dream of owning their own business,” said Jones.
Some in attendance voiced concerns with the timing of the bylaw, as they think this is not the year to increase or introduce new fees. Council has previously stated they will consider waiting until the start of 2017 to implement the charges.
At the July 4 meeting, local resident Amanda Spenst said she is unsure where a network partner would fit, whether she would be a home-based business, a transient trader or a direct seller. The latter two have $250 licence fees.
Ward responded by saying a network partner who lives inside the city limits would be a home-based business, but those who reside outside the city would be transient traders.
There were also questions about people who reside outside of the city limits, such as the rural municipality of Estevan, or in Bienfait, Hitchcock or Macoun, but do the bulk of their business in the city. According to the bylaw, they would still be a transient trader, since they don’t live in the city.
Local resident Tamara Bloor suggested that those who live within a certain distance of the city should not be classified as transient traders.
Spenst also wanted more clarification on the trade show component of the bylaw. She wanted to know if she would need to purchase a licence for each site if she organized a trade show for multiple locations.
“I know when I organize an event, I don’t have a huge budget, so that $250 would be taking out a lot of the profit,” said Spenst.
She was also concerned about those who organize multiple trade shows each year.
Ward suggested the bylaw could be changed to a $250 fee per trade show organizer each year, rather than a $250 fee for each trade show.
Hoffort noted the meeting was an effort by council to increase community engagement. They used to give three readings at one meeting for most of their bylaws, but now they want to give the public time to respond.
“The input that we had tonight was meaningful, and it will help us pass the final bylaw,” said Hoffort.
Council’s next open meeting is July 18, but the bylaw isn’t expected to receive final approval at that meeting.
