4.1. SR 06-02-1997 - Laserfiche WebLink

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4~97 CIP FINANCES LIQUOR STORE FUND Since 1987, the Liquor Store Enterprise Fund has contributed about $1.75 million to the General Fund in order to help keep taxes at a low level. This contribution also helped to pay for the Fire Hall expansion and the construction of City Hall. Other special projects funded from Liquor Store monies include the $100,000 for the purchase of Phase II of the Industrial Park and the $225,000 loan to the HRA for the King and Main redevelopment project. Approximately $175,000 per year is transferred out of the Liquor Store Enterprise Fund to the General Fund for City activities. In January, 1995, the City finalized its purchase of land for the new Northbound store, and in January, 1997, the City finalized its purchase of land for a future Westbound Liquor Store. In late 1997, a new $1.45 million Northbound Liquor Store is scheduled to be completed and opened for business. This new Northbound Liquor Store is financed with a small amount of existing Liquor Store Reserves and future revenues. Approximately $150,000 per year of profits are projected to go toward debt retirement for the new Liquor Store. If profits are not as high as in previous years, and this can be expected in 1997 and 1998, then less money will flow into the General Fund for City activities as the number one requirement of the Liquor Store Enterprise Fund is debt retirement of the construction bonds. It is expected that profits will rise in the future and that the contribution to the General Fund will be roughly the same as in previous years. If profits exceed projections, funds will be put aside to be saved for the future Westbound Store. Based on the construction debt for the new store, there are very limited, if any, liquor funds available for special projects. Estimated Yearly Profit $300,000 Annual Northbound Bonds 150,000 Annual General Fund/City Hall Contribution 150:000 Year End Balance $ 0 Page 10 of 16