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Memorandum VII-l To: From: Date: Re: Mayor Werner & City Councilmembers Melanie Mesko Lee, Assistant City Administrator March 30, 2005 Increase of On-Sale Liquor License Fees for 2005/2006 License Year ':> ----------------------------------------------------------------------------------------------- Council Action Requested Following a public hearing, Council is requested to adopt a resolution approving the increase in on-sale liquor license fees for the 2005/2006 license year by $100 to $4,000. Backaround Information: 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). These incremental fees were approved due to the fact that on-sale liquor license fees had not been adjusted in nearly 10 years, yet the staff costs of processing and issuing the licenses had increased over the years. 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 on-sale liquor license fees over a period of approximately 3 years. In 2003, after a public hearing and 30-day advance notification, the Council adopted Resolution 07-04-03, which increased the 2003/2004 fees by $500, bringing the annual on-sale liquor license fee to $3,400. In 2004, after a public hearing and 30-day advance notification, the Council adopted a resolution amending the 2004/2005 on-sale liquor license fee by $500 to $3,900. In February 2005, the City Council ordered a public hearing for April 4, 2005 to consider the last phase of the on-sale license fee increase. This last proposal is for an increase of $100 for the 2005/2006 license year to an annual license fee of $4,000. All on-sale licensees (both corporate and local establishments) have been mailed a notice of the public hearing and proposed fee increase and have been invited to comment on the proposal. To date, no comments have been received. If you have any questions, please feel free to contact me prior to the meeting.