The original proposal suggested bringing the fee up to $1,000 for establishments serving alcohol and $125 for those that do not.
The committee agreed that was too much of a price jump and suggested it be brought up to $500 and $50 dollars respectively.
Current permit fees are $200 for those that serve alcohol and $25 for those that do not.
Owners of downtown restaurants attended the meeting.
"It was a good conversation. The staff brought forward recommendations and the downtown business owners brought recommendations and I think what we ended up with was a great compromise the council was able to facilitate," said Tanya Emery, the city's director of community and economic development.
Also during the meeting, the committee looked into options for charging businesses with fewer seats a lower price, which fixtures could stay in the outdoor space during the winter, and penalty fees for businesses that break permit rules.