02-14-2024 Workshop Packet - Laserfiche WebLink

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STAFF REPORT TO:Mayor Fischer and Members of City Council FROM:Heidi Heller, City Clerk/HR Manager DATE:February 14, 2024 RE:Discuss On-Sale Liquor License Fee Increases ACTION TO BE CONSIDERED: Discuss annual on-sale liquor license fee increases. BACKGROUND: In April 2023, the City Council had the annual discussion of increasing on-sale liquor license fees. Ultimately the Council decided to hold off on any increase for another year, but requested a discussion to decide on a long-term plan for liquor license fee increases since the previous plan was no longer a good option as the levies have increased over last few years. In 2006, the City Council declared that increases in On-Sale Liquor License and On-Sale Wine License Fees would be tied to annual gross levy increases for five years. This five-year plan went through 2010, but the Council has continued to use this basis for liquor license increases every year and the levy percentage had remained around 3.0%. 2018 had a higher levy at 6.85%, but the Council opted to limit the liquor license fee increase to 3.0% that year. Staff assumes this increase plan was done due to the fees not being increased for many years, and the license holders preferring a slower increase every year rather than random large increases once in a while that are hard to budget for. Due to the pandemic and the continued slow-down in the bar/restaurant industry, the Council has opted to not increase the liquor license fees since 2019. Each city establishes their own liquor license fees, and many do not increase these fees regularly. The license holders would prefer to know far in advance what their license fees will be in order to budget for increases. A straight-forward percentage increase that stays the same every year is easy for staff and the license holders to plan for. Even if a long-term plan is decided, a public hearing is required by law each time liquor license fees are increased, but this would give the license holders the opportunity to comment. Staff suggests that a 2% annual increase would be sufficient to contribute to increases in staff and policing costs. Current fee since 2019 1% increase 2% increase 3% increase On-sale Liquor License $5,284 $5,337 $5,390 $5,443 On-sale Liquor License- Billiard Halls only $1,061 $1,072 $1,082 $1,093 On-sale Wine License $763 $771 $778 $786