Those operating a business in Festus without a business license will now be subject to a new penalty – having their water service shut off.
The Festus City Council voted 7-0 May 27 to amend the ordinance that applies to business licenses and include the new penalty, which allows the city to shut off water to buildings where businesses are operating without a current license. Ward 3 Councilman Kevin Dennis was absent from the meeting.
According to Festus city staff, the city will give each business without a valid license at least 10 days’ notice before the water is shut off. Once the issue is resolved, the business would have to go through the regular process, including paying a $25 reconnection fee, to have water service restored.
City Administrator Greg Camp said the purpose of the water shutoff penalty is to get the attention of those who violate the business license ordinance, which is an ongoing problem.
“It’s been a problem as long as I’ve been here,” said Camp, who has worked for the city since 2017. “Annually, we’ll have between 20 and 30 that would not renew. On top of that, you’d have around the same number of new ones not getting a business license.”
Camp said the ordinance on business licenses already included possible penalties for not having a current business license.
“They can receive a citation and receive a fine through the (Jefferson County) Circuit Court, which could be $500 a day (through the existing ordinance),” he said. “We feel (water shutoff) will just give us another tool to assist the (Festus) City Clerk’s Office to make sure businesses are compliant with this section of the ordinance.”
Leah Smith, the city clerk, said she typically issues “about 400 business licenses per year” but has seen a larger-than-usual number of business license applications so far this year.
“We switched to online renewals this year, and I have already processed 125 of them,” Smith said on June 9. “The businesses have expressed their happiness with the ease of renewing their licenses online; plus it saved myself a ton of paperwork and time.”
The city has a business license fee schedule, with different prices based on the type of business, ranging from $25 to $200 for most types of businesses. The fee schedule may be viewed on the city’s website, festusmo.gov.