01-27-2021 Council Packet - Laserfiche WebLink

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STAFF REPORT TO:Mayor Keis and Members of the City Council FROM:Heidi Heller, City Clerk DATE:January 27, 2021 RE:Discuss 2021 Liquor License Fees ACTION TO BE CONSIDERED No formal action requested. BACKGROUND The City Council has continued the practice of annually increasing liquor license fees at the same percentage rate as the adopted levy. In 2020, due to the pandemic and the effect it was having on the food and hospitality industry, the City Council opted to not increase the liquor license fees, and ultimately decided to give a credit towards the 2020-2021 liquor license fees based on how many weeks the bars and restaurants were required to be closed per Governor Walz’s Executive Orders between March and July. The invoices for the July 1, 2020 – June 30, 2021 licenses were sent out in mid-September in order to give the businesses time to generate some income after being closed for 12 weeks (longer for the Fiesta Feliz Event Center). Since the license fees were paid in October, there have been additional Executive Orders that closed indoor dining for all bars and restaurants for over seven weeks, from November 21, 2020 through January 10, 2021. The current Executive Order 21-01 has allowed bars and restaurants to be open for indoor dining at 50% capacity, up to 150 people, and must close indoor dining by 10:00pm. This Executive Order began on January 11, 2021 and does not have an end date. Due to the continued pandemic and the continued effect it is having on the businesses with on-sale liquor licenses, Staff is recommending that the Council consider not raising liquor licenses fees in 2021. 2019-2020 2021 with 2.96% increase On-Sale Liquor License $5,285 $5,441 On-Sale Liquor License – Billiard Halls only $1,061 $1,096 On-Sale Wine License $763 $786 *Per State Statute, the fee for an on-sale wine license cannot exceed half of the license fee charged for an on-sale liquor license, or $2,000, whichever is less. STAFF RECOMMENDATION Staff recommends the City Council discuss the annual increase in liquor license fees and give direction to staff on whether to move forward with an increase in 2021.