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HomeMy WebLinkAboutFIN-07-113 - Licensing Fee for Dogs~/ ,~~ REPORT Report To: Finance and Corporate Services Committee Date of Meeting: September 24, 2007 Submitted By: Jennifer Sheryer, Assistant City Solicitor Rosemary Upfold, Director of Accounting Shayne Turner, Director of Enforcement Prepared By: Rosemary Upfold, Director of Accounting Ward(s) Involved: All Date of Report: September 20, 2007 Report No.: FIN-07-113 Subject: LICENSING FEES FOR DOGS RECOMMENDATION: That Chapter 530 of the City of Kitchener Municipal Code be amended to increase the dog licensing fees to the fees charged by the City of Waterloo (Option 3 outlined in Appendix B of Report FIN-07-113) effective January 1, 2008. That Chapter 530 of the City of Kitchener Municipal Code be amended to include a $7 fee for a Replacement Tag effective January 1, 2008. BACKGROUND: On April 17, 2007, Council approved the Animal and Dog Control and Pound Services Agreement as well as the Spaying and Neutering Program with the Kitchener-Waterloo and North Waterloo Humane Society for the term January 1, 2007 to December 31, 2010. At that time, Council requested staff report back in the fall to address increasing the dog license fees and adding the licensing of cats. Relatively speaking, the licensing of cats is a more complex issue. Staff recognizes there are significant issues with the regulating of cats under the current by-law provisions. Staff is not entirely sure that the licensing of cats would adequately address the current concerns. It is the number of, and keeping of cats on a property, that poses the most significant concern at this time. This issue will be addressed by staff in a separate report to the Finance and Corporate Services Committee. If Council wishes a further report with respect to the licensing issue, staff will accommodate. REPORT: The dog licensing fees (Bylaw 98-185) were last amended in 1998 and came into effect on January 1, 1999. The licensing fees have not increased as the Humane Society has always advocated an increase in fees will deter dog owners from buying licenses and will also increase the costs to the City and the Humane Society to enforce the requirement to purchase a license. On the other hand, the fee paid, by the City to the Humane Society for Animal and Dog Control and Pound Services, has increased from $327,952 in 1999 to $444,465 in 2008, a 35% increase. A sample of the current fees charged by the City of Kitchener, compared to a number of area and similar sized municipalities are in most categories, the lowest fees charged (AppendixA}. As City of Waterloo and City of Kitchener dog licenses are sold by the many of the same veterinarians and pet stores in Kitchener Waterloo, staff would recommend using the fees charged by the City of Waterloo. However, there are several options that could be considered by Council. (Appendix B) Option ~ No increase for 2008 This option would keep the licensing fees the same and no additional revenue would be generated to the City. The gap in fees between the City of Kitchener and other municipalities would continue to increase. Option 2 6 % increase for 2008 Council's direction for the 2008 budget was a fee increase of at least 6 percent. Option 2 would be to increase the current licensing fees for all categories by 6%. The additional estimated revenue to the City fora 6 % increase would be $19,000 annually. Option 3 Use City of Waterloo Fee Schedule Option 3 would be to increase the current fees charged to the same fees charged by the City of Waterloo. Depending on the time of year purchased and whether the fee is a general or senior fee, the increase would be between 20% -133%. The additional estimated revenue to the City would be $110,000 annually. Option 4 Phase in City of Waterloo Fee Schedule over 3 years Over a three year period, 2008 to 2010, the City's current fees would be increased by one third of the difference between the fees charged by the City of Kitchener and the City of Waterloo, along with annual fee increases in order to have the same fee schedule as the City of Waterloo in 2010. Depending on the time of year purchased and whether the fee is a general or senior fee, the increase would be between 7% - 46%. The additional estimated revenue to the City would be $38,000 annually. The current agreement with the Humane Society stipulates, in the event that Kitchener increases any license fee for dogs, the City is entitled to the entire amount of the increase. If the Humane Society proves the increase in license fees has caused licensing enforcement costs to increase, the Humane Society will be entitled to a percentage of the licensing fees equal to such increase in enforcement costs. At this time, it is not possible to determine if there would be additional enforcement costs. The City currently has a set fine of $125 ($100 plus $25 costs) for failing to obtain at license. Staff would recommend that during the licensing renewal notification process by the Humane Society, fine information is provided to dog owners. Other municipalities also charge a replacement fee for a lost tag. Staff would recommend this new fee be included in the City of Kitchener's Dog Licensing Fee Schedule. These fee increases are being recommended apart from the Comprehensive Fee Report (November 5, 2007) as the Humane Society begins to advertise and sell the dog license fees prior to year end. FINANCIAL IMPLICATIONS: Increasing the licensing fees for dogs to be the same fees charged by the City of Waterloo would result in additional annual revenue to the City of approximately $110,000. This increase could be reduced by the amount of any additional enforcement costs the Humane Society provide proof that they incurred as a result of an increase and by some dog owners choosing to ignore the bylaw and no longer purchase a license as a result of the increase. 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