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STAFF REPORT <br />TO: <br />FROM: <br />DATE: <br />RE: <br />Mayor Fischer and Members of City Council <br />Heidi Heller, City Clerk/HR Manager <br />April 10, 2024 <br />Public Hearing - Consider an Increase in Liquor License Fees <br />ACTION TO BE CONSIDERED: <br />Hold Public Hearing and adopt 2024 Liquor License Fees. <br />BACKGROUND: <br />In 2006, the City Council declared that increases in On-Sale Liquor License and On-Sale Wine License <br />Fees would be tied to annual gross levy increases. This plan continued and worked well for many <br />years until the levy percentage increased and the pandemic hit. Liquor license fees have not been <br />increased since 2019 due to the pandemic, and in 2023 the Council determined that a new plan for <br />determining liquor license fees going forward was needed. At the February 14, 2024 Workshop, the <br />Council discussed liquor license fee increases. Staff stated that a small annual increase was preferred <br />by the license holders, rather than random large increases. Staff suggested that an annual 2% increase <br />would be sufficient to contribute to increases in staff and policing costs. The Council agreed with the <br />annual 2% increase. <br />The 2% increase for on-sale liquor licenses is as follows: <br />2019-2023 2% Increase <br />On-Sale Liquor License $5,284 $5,390 <br />On-Sale Liquor License – Billiard Halls only $1,061 $1,082 <br />On-Sale Wine License $763 $778 <br />*Per State Statute, the fee for an on-sale wine license cannot exceed half of the license fee charged for <br />an on-sale liquor license, or $2,000, whichever is less. <br />There are currently 8 full on-sale licenses, 1 on-sale billiard hall-only license and 0 wine licenses in <br />Little Canada.