Businesses in Carson City will not see an increase in license fees this year, Carson City supervisors decided Thursday.
Supervisors appeared reluctant to make a decision about the proposed 3.2 percent fee hike but eventually rejected the slight increase. They agreed, however, something needs to be done in the near future to deal with tougher financial times ahead.
"My message to (the Chamber of Commerce) is I think we do need to get ready and face reality in the future," said Mayor Ray Masayko. "Next fiscal year may not look so bright. We still have a mission here for the residents of Carson City."
Business leaders opposed the slight hike in license fees. Carson City Area Chamber of Commerce Executive Officer Larry Osborne said chamber members did not believe the increased fees would pose a significant impact on local businesses but that the business group opposed the idea in general.
"We don't really believe this is necessary for the city," Osborne said. "It is a small amount, but it does add up."
If passed, a general business license would have increased from $62.60 to $64.60 per year.
The city has the option to increase the fees each year in alignment with the consumer price index. The fees have not been raised in two years. The proposal this year would have generated an additional $24,200 to be used for general services like police, fire and parks maintenance.
The board directed city staff to look into the possibility of combining business license fee decisions with budget talks that occur regularly in the spring when all fees and revenue sources will be examined for ways to deal with anticipated financial shortfalls.
Masayko said although he agreed to pass on this year's option to raise business fees, it will be something to seriously consider next year.
"We may have differences of opinion in the future, but I will remember that three years of business license fees have been passed on," Masayko said to Osborne.