BY STEVEN STIEFEL
FOR THE OBSERVER
OPELIKA — On Feb. 4, the Opelika City Council approved an amendment to reduce the occupational license fee rate from one and one-half percent to one percent of the gross receipts for work done or services performed or rendered within the city.
The occupational license fees provide funds for critical services and for the general operating expenses of the city. The fees ensure non-residents contributing to the local economy (commuters who work in the city but live elsewhere) help support the services they use. Municipalities generally view them as an equitable way to generate revenue from those who directly benefit from working in the community and the fees diversify how to pay for public safety, public works and other government programs rather than imposing higher property or sales taxes on Opelika residents.
The city said it feels able to lower the occupational license fee for workers due to effectively controlling its budget while also maintaining a healthy financial reserve to achieve a “sound financial position.” The change, if approved, would take effect on April 1, 2025, following advertising in the newspaper. For the amendment to pass at the Feb. 4 meeting, the Council had the option to suspend its rules. However, the vote needed to be unanimous.
“I just want to express my appreciation to the council, and especially to President [Eddie] Smith for your leadership on this.,” said Opelika Mayor Gary Fuller. “You know, we’ve had an occupational license fee since the early 60s…Then in the early 90s, the city council approved a 0.5% increase. I applaud you and I want to thank you for doing this. It’s going to mean a lot to the folks that work in the city.”
In other business, the council:
- Approved a tax abatement was approved for Aerocosta Global Systems America Inc. to help it add $3.5 million in new manufacturing machinery at its Distribution Center to expand and add approximately 70 new jobs. The international freight forwarder and logistics company moving automotive parts for brands such as AJIN Industries, Chrysler, Daewon, Dasan and DAS Korea sought a 10-year abatement of all state and local non-education property taxes and all construction-related transaction sales and use taxes, except those construction-related taxes levied for educational purposes or for capital improvements for education. AGS requested from the city a complete exemption of non-educational city ad valorem taxes for the Project for a period of 15 years Tax abatements provide short-term relief to businesses, which make them more likely to invest when they receive a temporary reduction in property taxes. The city expects to benefit in the long run through increased property values, sales tax revenue and payroll taxes as businesses grow and their employees spend money locally.
- Approved a contract with Alabama Office Supply to purchase $268,629 in office furniture for the new Public Works Building. The facility consolidates several departments under one roof, including Engineering, Public Works, Planning and Building Inspections.
- Approved a resolution to approve a proposal for Workers Compensation Insurance with Marsh & McLennan Agency, with the policy cost of $257,330 coming from the Workers Compensations Claims and Judgments Account.
- Approved a resolution fixing the amount of assessment for demolition and removal of a building located at 110 Jeter Avenue. A cost of $3,598 was assessed to the owner of the building.
- Authorized a $2,500 appropriation to the Opelika Chamber of Commerce for the 20 Under 40 service project.
- Appropriated $5,000 to the Southern Union State Community College Foundation to assist with the Distinguished Alumni Dinner to be held April 10, 2025.
- Approved an amendment to reduce the occupational license fee rate from one and one-half percent to one percent of the gross receipts of such person for work done or services performed or rendered within the city.
- Amended the procedures for applying for a conditional use permit. Currently, items for the Planning Commission are required to be submitted 21 days prior to the meeting date. In a review of various cities within Alabama, the commission determined that most cities have deadlines typically between 26 to 30 days prior to the meeting. To aid staff, the Planning Commission proposed to increase the submission deadline to 27 days, which would make the deadline fall on the day following the previous month meeting at the earliest date. At the Dec.17 meeting, the Planning Commission voted 8-0 to send a positive recommendation to the City Council to approve the text amendments of the Zoning Ordinance for Section 5.1 B and Section 8.17 C.
- Approved an ordinance setting the next municipal election on Aug. 26, 2025. Candidates can start qualifying for office on June 10. The last day to file a statement of candidacy with the City Clerk is June 24. The Absentee Election Manager will accept applications by qualified electors beginning on July 29, and regular absentee applications by mail must be received by the City Clerk on or before Aug 19. Applications returned by hand must be received no later than Aug. 21. Aug. 25 is the last day for a voter to apply for an emergency absentee ballot. Absentee ballots may be returned by hand delivery to the absentee ballot election manager, no later than the close of business on Aug. 25. Absentee ballots returned by mail must be received by noon on Aug. 26. If necessary, a run-off election will be held on Sept. 23, 2025.
- Held public hearings for amending 17.6 acres at 816 Crawford Road. The current Development Plan for Knollwood PUD consists of 47 single-family home lots and two parcels reserved for stormwater detention/open space. Ash-Evermore Homes of AL, LLC, the owner of certain property, submitted an amended plan decreasing the widths of 11 lots from 60-feet to 35-feet to add a single-family lot home, which the Planning Commission approved. Plans are available for public inspection in the City Clerk’s office and comments are sought.
- Reviewed a volunteer service application for John S. Oliver, who is retiring this month. He previously served for 40 years as a civil engineer in Atlanta. The council appointed him to the Lee Russell Council of Governments MPO Citizen Advisory Committee, with a term expiring in January 2027.
- Reappointed Brandon Hilyer, Micah Melnick and Tipi Miller to the Zoning Board of Adjustments, all with terms expiring Feb. 11, 2028.
- Purchased a Zscaler Safe Security subscription and CrowdStrike Endpoint Protection subscription for I.T.
- Awarded bids for police and fire uniform cleaning to Five Star Cleaners.
- Awarded the bid phase III of the pickleball courts work to JLD Enterprises, LLC, which submitted the lowest bid meeting specifications. Phase III includes base, grading, drainage and site work, totaling $397,523.
