Several business owners are upset about a proposed fee that city council is expected to discuss at its meeting on Wednesday.

The fee in question would be for fire inspection programs.

City council tabled the issue last Wednesday, but is expected to discuss it at the meeting on Wednesday at 6 p.m. The amount of the fee would vary according to a buildings’ size and the scope of the inspection.

Mark Scott, who owns Twin Tip Nation, said the fee is just another tax burden placed on the backs of small business. Scott sent an Op-Ed to the Rio Rancho Observer, signed by six other business owners in the city, expressing opposition to any additional fees.

He said it wasn’t the amount but the principal of piling more fees and taxes on small businesses that has him irked.

“More than a penny is too much,” Scott said. “It is the principal, not the dollar amount. It has nothing to do with the police or fire department.”

City Manager James Jimenez said the fee is necessary to help cover the costs of the fire inspection program. He said during the annual budget process, the city’s administration reviewed all fees and charges and matched them to the services provided. Jimenez said the fire inspection program was not paying for itself, so he put together a fee proposal to cover a third of the program’s costs.

“This is a big step in trying to cover the costs of the fire inspection program,” Jimenez said. “It’s critically important because of the fire safety implications for the community.”

He also pointed out that the fire inspection program will help improve the city’s ISO (Insurance Services Office) rating, which could translate into insurance premium savings for business owners and home owners.”

Jimenez said the fee will bring Rio Rancho into line with other jurisdictions.

Scott believes small business owners are taxed enough and said the city tried to sneak this through without any input from business owners or the Chamber of Commerce.

The tough economy has hurt Scott’s business. He had to take a 50 percent pay cut and lay off three people.

In a memo, prepared by Fire Chief James Tobin and approved by Jimenez, on the fees, it states the city recognizes the need to have businesses pay their fair share of costs for services provided.

Scott says that small businesses already pay their fair share.

“It’s really tough out there and tough for the city, but I can’t go to my customers and say I mandate you to send me extra money, but the city is doing that to me,” Scott said. “I don’t know when it’s going to end.”

Tobin stated in the memo that the fees are charged for special permits and fire inspections based on hazard and size constraints. Businesses that are larger or provide more hazardous products or processes bear the appropriate fees to cover actual charges for city work performed.

Scott understands that times are tight and he doesn’t want the city to lay anyone off. However, he said the city needs to be more innovative in its funding.

“I want the City of Rio Rancho to lead in innovation and creativity, which will allow them to produce more gross receipts taxes and make our city healthier and stronger,” Scott said. “That’s exactly what I’m doing with my company. At the end of the recession, my company will come out stronger because of my creativity and innovation.”

District 1 city councilor Mike Williams said he will probably vote to implement the fee.

“It’s not more than any place else,” he said. “These inspections have to be done and you’ve got to pay for people’s time. It’s not cheap to send a fire inspector out to a building. When you own a business, you always have additional costs. This is part of owning a business.”

Scott and several other business owners are upset that corporations like Hewlett-Packard are getting tax breaks and incentives, while small businesses have to pay extra fees.

Williams countered that argument by saying that small businesses will benefit from HP and other companies coming to Rio Rancho, because they will bring in thousands of employees and some will patronize the small businesses.

District 6 city councilor Kathy Colley said she will vote for the fees.

“This is something that the chief has looked at and I have to defer to him on this,” Colley said. “He knows best what his operating expenses are and I’m glad that the fire department is taking the time to do their homework and inform the business community.”