CR 93-220 Revision Pawn Shop License
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. December 16, 1993 ~ Council Report 93-220
REVISION OF PAWN SHOP LICENSE FEE
Proposed Action
Staff recommends that the City Council approve the following motion: Move to approve
Resolution number 93-135 revisina the pawn shop license fee. and authorize the hirina of a clerk.
This action will change the fee that the City of Hopkins charges for annual pawn shop licenses. It
will also allow the hiring of a full time clerk to do the data entry associated with pawn shop
regulation.
Overview
Section 1000.05 authorizes the Hopkins City Council to "modify, amend, add, or delete ... fees and
charges by the adoption ofa resolution". Staff is recommending that the fee for pawn shop
licenses be revised from $3,500.00 per year to $7,000.00 per year. The new fees will go into
. effect beginning with the 1994 licenses.
When the pawn shop license ordinance was passed approximately a year ago a fee of $3,500.00
per year was established. At the time that this fee was set, City staff indicated that the succeeding
year would be used to determine the actual costs of regulating this activity. The year has passed
and staff has determined that the existing fee is not sufficient to offset the costs to the City of
regulating pawn shops.
Primary Issues to Consider
· Why is the fee being revised?
· What are other cities charging for pawn shop licenses?
Supportina Information
· Resolution #93-135
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. Ja A. Genellie
istant City Manager
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· Council Report 93-220
Page 2
Primary Issues to Consider
Why is the fee being revised?
License fees should generate sufficient revenue to cover the costs associated with regulating the
activity for which the fee is charged. Currently the police department is spending more money
regulating the activity than is being received in license fees.
Staff time is used to compare the lists of pawned items with state computerized records of stolen
items. The pawned items are then entered into a City database. This database is queried
whenever the City receives reports of stolen items. Additionally the police department would like
to conduct regular on-site checks of the various pawn shops to ensure that they are following the
procedures as outlined in the ordinance.
Staff is recommending that a new full time person be hired to do the data entry while sworn
officers perform the inspections. The costs include the payment of overtime for some of the work.
. Data Entry Cost
6,000
Inspections 1,000
7,000
What are other cities charging for pawn shop licenses?
Brooklyn Center 12,000
Blaine 12,000
Golden Valley 12,000
Columbia Heights 11 ,700
Brooklyn Park 10,000
Crystal 10,000
Apple Valley 8,400
Fridley 8,000
Inver Grove Heights 8,000
Eagan 8,000
Robbinsdale 7,500
. Anoka 3,000
Ramsey 2,500
Richfield 1,750
Bloomington 1,545
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. M' r 369
mneapo IS
st. Louis Park 250
West St. Paul 150
Maplewood 141
Minnetonka None
Cottage Grove None
Roseville None
Coon Rapids None
New Hope None
New Brighton None
Edina None
Oakdale None
Maple Grove None
Burnsville None
North St. Paul None
Mounds View None
Alternatives
. 1. Approve Resolution #93-135 raising the annual fee to $7,000.
2. Do not approve Resolution #93-135. This will mean that the City will not cover the costs
associated with regulating pawn shops.
Staff recommends Alternative #1.
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CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO. 93-135
WHEREAS, the Hopkins City Council has authorized by ordinance the charging of fees for
a variety of licenses and permits, and
WHEREAS, the City Code allows the City Council to establish fees by resolution, and
WHEREAS, the Hopkins City Council has determined that the fee currently being charged
for pawn shop licenses is insufficient to cover the costs associated with regulating
pawn shops,
NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Hopkins
hereby adopts an annual fee of $7,000.00 for pawn shops.
. Adopted by the City Council of the City of Hopkins this 21 st day of December, 1993
By
Charles D. Redepenning, Mayor
ATTEST:
James A. Genellie, City Clerk
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