Monday, February 8, 2016

Watch For Fees to Increase in Amount and Scope

When the Government, Local, State, or Federal wants additional revenue, but, is afraid to raise taxes, they start increasing existing fees and creating new fees.

Chuck DeVore of the Texas Public Policy Foundation has a Special to the American-Statesman Link describing the negative effects that occupational and other business licensing have on the creation of new enterprises and jobs. "Occupational licensing red tape acts as a barrier to entry for Americans seeking to improve their lives while artificially restricting the supply of services, jacking up the cost of those services to consumers."

Another area where governments impose costs on the consumer is through their utility bills. My cable bill has a Broadcast Station surcharge - $8.95, a Sports Programming surcharge - $5.15, and a State Cost Recovery Fee - $1.03. The bogus charges total $15.13 each and every month and are enabled by our legislators!

The City of Georgetown has many fees embedded in the budget that are not readily visible.  There are building permit fees, inspection fees, application fees and many others too numerous to list.

The City enacted an ordinance last year concerning ambulances. The requirement for any person or business to engage in the non-emergency ambulance transfer service within the City of Georgetown or its ETJ is a mechanism for controlling private enterprise, aggregating additional power to the City, and another method of acquiring funds for the City. A franchise or license granted by the City is a barrier to entry for persons or businesses to engage in a legitimate business.

A typical ordinance requires that a non-emergency ambulance service provides for "public convenience". In addition, the burden of proof shall be upon any applicant to show clear, cogent and convincing evidence that the public convenience will be served by granting a non-emergency ambulance transfer service franchise.

Typical requirements are:

1. Provide liability insurance with the City named as an additional insured.

2. Establish a performance bond.

3. Pay a franchise fee to the City - 3% to 5% of revenues.

4. Inspection of books and records at any reasonable time.

5. Standards for vehicles, equipment and personnel.

6. Maintain a 24 hour dispatch service for non-emergency ambulance transfer service.

7. City may fix and regulate rates for non-emergency ambulance transfer service.

It may be time for a rigorous accounting of all the fees embedded in the Georgetown budget. 

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