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City <br /> <br />MEMORANDUM <br /> <br />Item # 4.5. <br /> <br />TO: <br /> <br />Mayor and City Council <br /> <br />FROM: <br /> <br />Sandra Peine, City Clerk <br /> <br />DATE: <br /> <br />November 18, 2002 <br /> <br />SUBJECT: Consider Liquor/Tobacco Fee Increases/Public Hearing <br /> <br />The Council has requested staff to look at the possibility of increasing liquor fees. <br />Attached is a memo that was previously given to the Council regarding proposed liquor <br />fee increases. The memo also includes a survey that was taken of 34 cities in regard to <br />liquor fees. <br /> <br />The proposed changes to the existing liquor fees are listed below. Also listed is the <br />average fee derived from the survey. <br /> <br />LICENSE TYPE [ *AVERAGE (taken ELK RIVER- ] ELK RIVER <br /> from survey) Current Fee Proposed Fee <br /> <br />Tobacco $160 $100 $150 <br />On-Sale Liquor $5500 $4,000 $5,000 <br />On-Sale Wine $895 $ 650 $700 <br />3.2 Beer On-Sale $265 $ 225 No Change <br />3.2 Beer Off-Sale $66 $ 75 No change <br />Investigation Fee Approx. $450 $250/$150 $400/$200 <br /> <br />According to state law, license fees should cover the costs of issuing, inspecting, and <br />other directly related costs of enforcement. According to the police department, some of <br />the related costs for enforcement include the following: <br /> <br />· DWI Calls <br />· Fights in lots <br />· People trying to enter with bad ID's <br />· Arrests <br />· Initial arrest report and follow up reports <br />· Prosecution costs <br /> <br />S:\CLERK\LICENSES\LIQUOR\fee increase public hearing memo.doc <br /> <br /> <br />