Fee`Waiver Proposal Needs Explanation

Tonight the City Council is expected to vote on 50 resolutions and five ordinances, but first will hold a closed session to discuss "potential litigation," all of which portends a possibly long meeting.

A lot of the agenda items have already been chewed over in the blogosphere. I am just now reading one on waiving certain fees. Something about it strikes me as "spot legislation" tailored to a particular situation, but maybe I have just caught the suspicious mentality that afflicts some members of the governing body.

Below is the text of changes to a section of the Municipal Code titled "LICENSES, PERMITS AND REGULATED ACTIVITIES, ARTICLE 17, SCHEDULE OF LICENSES AND PERMIT FEES."

A. In instances where an organization is experiencing financial hardship in connection with the payment of the application fee and related costs associated with the preparation and filing of an application to obtain not for profit status under 501© 3 status, the City Council may, by resolution, grant a waiver of fees based on a financial hardship. The entity may make a Financial Hardship Application for Fee Waiver to the City Council through the City Clerk. The applicant must demonstrate that they have commenced the process of obtaining a 501©3 status, and provide information reflecting the existence of its financial hardship. Documents that may be considered as evidence commencing the process to obtain the status of 501©3, includes, but is not limited to 1) a copy of a completed application seeking the 501©3 status, 2) a copy of a letter(s) seeking professional and financial support for the filing of the application, and 3) documents reflecting that the failure to file is due to the absence of available funds to pay the 501©3 application fee and related costs.B. The waiver of municipal fees under this Chapter is may be granted only once to the entity seeking the financial hardship. C. If an organizations can demonstrate that it experienced a financial hardship that existed thirty (30) days prior to the formal adoption of this ordinance, said entity application for a waiver may be considered by the Council and if such a waiver is granted, the waiver of said fees shall apply.

The question of 501(c)(3) status most recently came up at a City Council meeting in connection with the baseball league controversy.  Charitable organizations achieve this status through the IRS, not the city. According to online information, there may be a $400 fee to file an application.

However, a closer reading of the proposed change to a city ordinance seems to indicate the applicant wants to be excused from paying city fees while going through the process of obtaining the exemption. The text above says the applicant has to show proof of seeking professional and financial support for the application. 

This is a convoluted situation, and as much as I do not want to prolong the meeting, the basis for this ordinance needs more explanation. In the case of the baseball league, a firefighters' group last week pledged to provide all the equipment needed, and yet the league's representative asked the council for more help. Do organizations that already have 501(c)(3) status get all fees waived? How do other exempt charities raise money? Further explanation is in order.

--Bernice