B&O debate may create city advisory board
There will almost certainly be no Business and Occupation tax in Vancouver, and a coalition of business leaders is responsible for affecting the City Council’s decision on the matter.
The council on Monday removed all mention of the unpopular tax from any ordinance aimed at generating the $10 million in revenue the city says is required to meet transportation needs. Instead, the council will read and move to adopt an amended ordinance – originally proposed by the Coalition for a Strong Community and Economy, the group formed to oppose the B&O – on Nov 27.
The amended ordinance would impose a $50 per employee surcharge on Vancouver businesses, capping at $20,000, and will not expire after three years as originally suggested, garnering $2.43 million in 2007. Exemptions would be made for very small businesses and some others.
The new direction has drawn opposition from the Building Industry Association of Clark County, the East Vancouver Business Association and the Clark County Association of Realtors, but the efforts of these groups were muted by the emergence of the coalition as a credible force in city government, even beyond the tax issue.
Now that the B&O issue is at rest, a new dynamic has emerged between the city and the business community. In working with the council to find an alternative to the B&O tax, the coalition – comprised of members of the Columbia River Economic Development Council, Identity Clark County, the Greater Vancouver Chamber of Commerce, the Downtown Association and private citizen Jim Etzkorn – offered to create a business advisory board to help the city make revenue decisions. This notion was accepted by the council, and the new spirit of cooperation has given traction to the two-month-old coalition, and put its members in a position to influence the city on major policy decisions.
"We’ve gained credibility with the city," said Identity Clark County Executive Director Ginger Metcalf. "I think by adding those voices, we added strength to the opposition. Be that as it may, I’m delighted."
Metcalf, on behalf of the coalition, pledged at the Monday session to continue to work with City Manager Pat McDonnell on legislative issues and advise the city on policy that would affect business.
"This was not just about the B&O," she said. "We just haven’t had the chance until now to really assess how we can be of help to the city."
Metcalf said the inclusion of the business advisory board would have helped the B&O process from the beginning, had it been in place, and that future projects such as the redevelopment of the former Boise Cascade waterfront property will benefit from the advice of the board.
"If you look at the city council, how many of its members are big business types?" Metcalf said. "Not one of them has made major business decisions. What we’re doing is adding a tool to the tool box. We’re offering a group of really successful people that can help make decisions."
City of Vancouver Chief Financial Officer Lloyd Tyler said the addition of an advisory board will be helpful, but will not necessarily have a large effect on decision making.
"With or without the advisory board, the city manager does a very effective job," Tyler said. "Also, the city has experts in each of its departments. The advisory board can give good advice, but they are not experts in areas like police and fire."
Metcalf pointed to the shift in thinking for many municipalities away from traditional spending and procedure to a model that more closely resembles a business.
Metcalf cited moves by cities such as Scottsdale, Ariz., which recently privatized its fire service, as more evidence of a turn toward bottom-line thinking in city government.
Still, some council members remain wary of influence from the business community. Council member Larry Smith said at Monday’s meeting that he had misgivings about the advisory board’s help in making policy decisions.
"I think it’s important that the ‘rules of engagement,’ if you will, should be spelled out," Smith said. "I certainly would not want the advice of the board to get in the way of us and the city manager, and I can see if that’s not carefully structured, that it could certainly happen."
Coalition chair Scot Walstra assured Smith the advisory board would serve in an independent role with the city manager.
Metcalf maintained the advisory board is still very new, and has yet to be defined.
"We haven’t totally defined the critter," she said. "I think it could be multi-layered, but we still need to sit down and define our role."
