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VI-3 MEMORANDUM To: From: Date: Re: Mayor Werner & City Council members Melanie Mesko Lee, Assistant City Administrator February 16, 2005 Set Public Hearing for Increasing On-Sale Liquor License Fees for 2005/2006 License Year ----------------------------------------------------------------------------------------------- Council Action Reauested Set a public hearing for April 4, 2005 to consider increasing the on-sale liquor license fees for the 2005/2006 license year by $100 to $4,000. Backaround Information: Several years ago, the City Council approved a phasing plan for increases in on- sale liquor licenses. Staff was directed to increase the fees $500/year until the annual fee reached $4,000. This is the final stage of the phasing plan and upon Council action, the annual fee will meet the $4,000 limit. State statute requires that cities hold a public hearing, with 30-day notification to licensees, prior to any increases to on-sale liquor license fees. In 2002, the City Council held public hearings to amend Chapter 3 of the City Code regulating liquor licenses. As part of this public hearing process, the City Council also approved establishing incremental increases to the City's liquor license fees (Resolution 05-13-02). Licensees were notified of the 2002 public hearing prior to the meeting. Following the meeting, licensees were also notified of the Council's direction to incrementally increase fees over a period of approximately 3 years and to add an annual cost-of-living adjustment to the annual license fee. In 2003, the Council held at public hearing at the July 7, 2003 meeting to increase the 2003/2004 fees from $2,900 to $3,400, in accordance with their decision in 2002. Again, all licensees were sent notices regarding the public hearing and the proposed action. In 2004, the Council held a public hearing at the May 3, 2004 meeting to increase the 2004/2005 fees from $3,400 to $3,900, in accordance with their decision in 2002. Again, all licensees were sent notices regarding the public hearing and the proposed action. All current licensees will be sent a notice at least 30 days in advance of the April 4 2005 public hearing date informing them of the City's public hearing as well as the proposed changes to the liquor license fees. If you have any questions, please feel free to contact me prior to the meeting.