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City Council Meeting Minutes February 1, 1982 Page Three licenses would also create more competition for the present license owners. Councilman Duitsman indicated that he felt it was not the City Council's position to enter the marketplace and determine whether something was creating competition or not. Councilman Engstrom indicated that he was not in favor of the liquor license because of the type of cliente1ethat did patronize the Kemethese. Mr. Robert St. Cyr indicated that he felt it should be the owner's decision regarding the type of cliente1ethat they would serve. Councilman Schuldt indicated that he did not feel it was the Council's decision to determine the type of business or compe- titibn~a new business should have and further indicated that he felt the City Coun- cil should set a policy regarding the number of liquor licenses issued. The City Administrator indicated that it was his opinion that the denial of the St. Cyr's request for a liquor license indicates that the City Council does not want to issue any more liquor licenses and therefore, should inform the City staff of this intent. Mayor Hinkle indicated that he felt the City Council should dis- cuss the number of liquor licenses the City Council chooses to approve for the City of Elk River. Mr. Robert St. Cyr indicated that they would go to the Appeals Board regarding the denial of their liquor license request. 10. Administrator's Update A. City Council Levy Limit Position The City Administrator recommended that the City Council communicate to the legislature the City of Elk River's position on the 8 percent levy limit. The City Administrator indicated that the constraints of the 8 percent levy limit are not necessarily in dollars, but the State is prohibiting communities to expand. Councilman Duitsman indicated that he felt the 8 percent levy limit does not allow for the growth of communities and that a growing community is penalized. Mayor Hinkle indicated that at the League of Cities legislative conference, the majority of the participants in attendance voiced their dis- approval to the legislators of the 8 percent levy limit. Mayor Hinkle further indicated that the League indicated that they would be working with the leg- islators, specifically the senate, for any legislation to abolish the levy limit. COUNCILMAN DUITSMAN MOVED TO AUTHORIZE THE CITY ADMINISTRATOR AND MAYOR TO EXPRESS THE CITY OF ELK RIVER'S POSITION OF OPPOSITION TO THE 8 PERCENT LEVY LIMIT TO THE STATE LEGISLATURE. COUNCILMAN TOTH SECONDED THE MOTION. THE MOTION PASSED. 4-0. B. Water Department Acquisition The City Administrator indicated that during the budget hearings, consolidation of the water and sewer department had been discussed and to this point, nothing has been done. The CitYdAdministrator further indicated that the City staff needs some direction regarding planning for water in the City of Elk River. The City Administrator further indicated that with the development of the Barthel PUD, water may be needed and some future planning must be done. Councilman Duitsman indicated that the Utilities Commission does not have the expertise