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MINUTES <br />CITY COUNCIL <br />OCTOBER 11, 1995 <br />license fee should be set to cover the City's costs, <br />but still be below what other cities are charging. <br />It was the consensus of the Council to discuss this <br />matter at the regular meeting when the City Attorney is <br />present so that he could answer their questions about <br />the liability issue. <br />The City Administrator recommended that cigarette <br />license fees be increased from $25 to $50 to more <br />closely approximate the cost of issuance of the <br />license. Council agreed. <br />Fahey pointed out the staff's recommendation that on- <br />sale liquor license fees be increased $500 per year for <br />the next three years. The current fee is $2,500, and <br />that fee has not been increased since 1982. Fahey <br />referred to the survey of Ramsey County cities <br />comparing license fees, and noted that some cities base <br />their fee on a square footage basis. <br />Scalze stated that while that makes sense to her, <br />businesses could argue that they do not necessarily <br />have more business just because they have more square <br />footage. <br />LaValle suggested that the liquor license fee was a sin <br />tax, and perhaps liquor establishments with pull-tab <br />sites should pay less of a fee since the City gets 10% <br />revenue from pull-tab sales. <br />Fahey asked if a liquor license fee was a sin tax or a <br />revenue generator for cities. Fahey pointed out if one <br />business does not want to pay the liquor license fee, <br />there will be another who will. <br />Morelan suqgested that the City's liquor license fees <br />should not be higher than other cities~, and perhaps <br />should be a little less. Morelan noted that it appears <br />an increase is in order, but what that increase should <br />be he was not sure. Sales may be one way to base the <br />fee. <br />LaValle reported that basinq liquor license fees on <br />sales is not allowed. <br />Pedersen suggested that basing the fee on square <br />footage would be difficult, and used the Saxon Lanes as <br />an example. A good share of the square footage at the <br />Saxon is in the bowling lanes. <br />The Council discussed using the square footage basis <br />3 <br />