Business License Fee Study Services

The Vendor is required to provide to evaluate the City’s existing business license fee structure and develop alternative fee models that improve equity, transparency, administrative efficiency, and legal defensibility while maintaining fiscal responsibility.
- The selected Consultant shall analyze current license fee practices, benchmark Springfield against comparable state municipalities, evaluate legal considerations, and develop implementable recommendations for updated business license fee structures. 
- The Consultant shall provide clear documentation, stakeholder-ready materials, and implementation guidance suitable for use by City staff and elected officials.
- Current business license fee structure has evolved over time and no longer fully reflects the diversity, scale, and operational impacts of modern business activity. Concerns have been raised regarding equity across business types, transparency in how fees are determined, and alignment between fees and municipal services relied upon by businesses.
- Review and assessment of existing fee structure:
•    Review and document the city’s current business license fee structure, classifications, and calculation methodology.
•    Analyze historical development of the fee system and current administrative practices.
•    Identify strengths, weaknesses, and unintended impacts of the existing model.
•    Assess how fees vary by business type, scale, and operational characteristics.
- Benchmarking and comparative analysis
•    Identify and analyze business license fee practices in comparable state municipalities and peer cities
•    Compare fee structures, rate methodologies, exemptions, and administrative approaches.
•    Document on how peer cities balance equity, simplicity, revenue stability, and service alignment.
•    Provide clear comparative tables and summaries suitable for staff and elected officials.
- Legal and policy analysis
•    Evaluate legal considerations related to business license fees under state law.
•    Distinguish between regulatory fees and revenue measures.
•    Identify potential legal risk areas, including constitutional or statutory limitations.
•    Prepare a legal defensibility memorandum outlining compliance considerations, risk flags, and best practices.
- Development of alternative fee schedules
•    Develop multiple alternative business license fee models for city consideration.
•    Ensure alternatives reflect differences among business types and scales of operation.
•    Evaluate each alternative for equity, administrative feasibility, transparency, and revenue implications.
•    Identify advantages, disadvantages, and policy tradeoffs for each option.
- Fiscal and revenue impact analysis
•    Estimate revenue impacts of proposed fee alternatives relative to the current structure.
•    Identify transitional considerations and potential impacts on different business sectors.
•    Assess administrative cost recovery and fiscal sustainability implications.
- Stakeholder and staff engagement
•    Coordinate with city staff to obtain necessary data and operational input.
•    Conduct meetings or workshops with city staff as needed.
•    Prepare materials suitable for presentation to elected officials.
•    Participate in presentations or briefings as requested by the city.
- Implementation package
•    Recommended fee structure(s).
•    Draft rate tables and classification frameworks.
•    Sample ordinance language or policy options.
•    Administrative rules or guidance.
•    A transition and implementation plan outlining phasing, communication, and operational steps.