Six weeks after their introduction, Victoria council has backed off on its new fees for portable sidewalk signs.
Mayor Dean Fortin recommended the rate reduction after hearing from a number of small business operators and owners concerned about the cost.
“People were actually coming up to me on the street expressing concern,” Fortin said. “They all understand and, frankly, support the need for regulation and I think it’s important to note that originally, and up until January this year, sandwich boards were actually illegal.”
Rather than prohibiting the signs, councillors last summer endorsed a policy designed to regulate their use on city sidewalks. The new regulations included a one-time $60 administration fee, a $30 annual renewal fee and a $100 annual fee for the use of public space.
Under a new fee schedule endorsed Thursday businesses will now have to pay an annual permit fee of $30 and $5 a year for the use of public space for a total annual fee of $35.
“Part of it is a recognition that the people who really rely on the sign boards are the really small businesses that make up our downtown,” Fortin said. “Larger businesses don’t need them. They’ve got lots of signs and lots of other ways to advertise. But for that small one, two, three-employee type outfit they find it very effective.”
The change is a dramatic about face for the council. When staff first introduced the concept of regulating the sidewalk signs in 2012, they recommended a charge of between $25 and $50 a year but several councillors argued the use of public space was worth more and fees should be higher.
The higher fees also would have been profitable. City budget documents projected new revenue of $130,000 from the new sign bylaw.
Reducing the fees will mean a net loss of $100,000 revenue in 2015. No revenue was included in the budget for this year, said Rob Woodland, director of legislative services.
A suggestion by Coun. Lisa Helps to include the use of one portable sign as part of the annual $100 business licence fee failed to get support of council.
Coun. Ben Isitt said the a modest fee is more appropriate. “The $35 to me feels to be somewhere closer to be not gouging but still having a modest recognition that there’s a conditional entitlement flowing from having this sign,” Isitt said.
Coun. Shellie Gudgeon, a downtown restaurateur, called the $35 fee “nominal” but said the city should streamline its administration so the city isn’t mailing out a series of bills to businesses. Coun. Marianne Alto said the higher fees were a mistake.
