Council pauses large liquor-fee hike; directs 2.34% CPI update and a 20% bar-and-grill increase for the change log

Jackson Town Council heard public comment and debated proposed updates to the municipal fee schedule — including proposed increases to liquor-license fees — on May 27, and directed staff to include a modest consumer-price-index adjustment across most fees while phasing in or moderating changes to liquor costs.

Nicole Davis, speaking for Blue Collar Restaurant Group and representing Merry Piglets, urged council against a large increase in the bar-and-grill license fee. "A 300% increase ... is very substantial to our business," Davis said, explaining the bar accounted for roughly 20% of her restaurant’s receipts and warning a big one-time jump would harm small operators.

Town Manager Tom Sinclair and staff outlined the proposed schedule changes. Staff recommended an annual CPI adjustment (2.34% for the current proposal) for fees not set by statute, added two new public-works fees and proposed a $1,000 charge for a new special malt-liquor permit. For liquor licenses specifically, staff noted state statute establishes maximums and some fee types (retail liquor) are already at the state cap.

Lindsay Linneman, internal services, explained state law permits limited retail or "club" licenses for organizations such as the Elks, the Legion and the Center for the Arts, subject to membership rules. Chief Michelle Weber said the police department sees restaurants and some licensees push the limits on entertainment and hours; staff recommended monitoring and enforcement.

Council members debated options ranging from a CPI-only update to moving to the statutory maximum. After discussion, councillors directed staff to put the 2.34% CPI adjustment into the general fee schedule, add the public-works fee changes and the $1,000 special malt-liquor permit to the change log. For liquor licenses the council instructed staff to show a 20% increase for bar-and-grill renewals in the budget change log this year and to keep the limited retail club fee at the CPI-adjusted level (to about $517) for now. Several council members asked staff to present the dollar impacts of different percentage choices at the next meeting.

Council members voiced different views: some favored a phased, predictable approach rather than a one-time large increase; others said fees should more closely reflect municipal costs for licensing and enforcement. Councilman Huntsman Schechter argued for staging increases (for example, 25% per year spread over multiple years) to give businesses predictability. Councilman Regan and others proposed a smaller incremental adjustment (Councilman Regan suggested ~20%), while another council member proposed a higher change-log figure but later agreed to the compromise. The council did not adopt a final fee ordinance at the meeting; staff was asked to place the change-log entries on the agenda for the June 9 meeting and return with precise revenue impacts.

Staff also reminded council that some liquor-fee maximums are set by state statute and that the town has already raised some license fees in prior years (the bar-and-grill fee was raised to $3,000 in 2023). Sinclair said that while the town might use fee increases to recoup some of the indirect public costs of alcohol (police, health, enforcement), council members stressed the need for transparent communication with licensees and phased changes to avoid harming small businesses.

No formal vote was taken; the direction to staff was recorded as guidance for the next budget update and the change log. Staff will present the dollar impacts of the CPI-only option and the staged increases at the council’s June 9 meeting and will include the agreed change-log items for June 16 budget adoption.