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LIQUOR STORE FUND
<br />
<br />Provides for the total operation of the Elk River Municipal Liquor store
<br />as authorized by Minnesota State Law and the Elk River City Council.
<br />
<br />1998 BUDGET COMPARED WITH 1997 BUDGET
<br />
<br />The 1998 municipal liquor store budget is planned in the amount of
<br />$701,250. This is a $174,950 decrease from the adopted 1997 budget. The
<br />decrease in this budget is mainly due to the 1997 land purchase for $375,000
<br />for the future Westbound Liquor store. This decrease is somewhat offset by
<br />the new 1998 expenditure of $173,000 for debt service on the new
<br />Northbound Liquor store, which was constructed and opened in 1997. The
<br />difference between these two major budget changes is $202,000, which is
<br />approximately $27,000 more than the total difference between the 1997 and
<br />the 1998 budgets. The new larger store is the major reason why there is an
<br />increase in personal services for 1998. Personal services are projected to
<br />increase $36,500, which is a 16% increase over the adopted 1997 amount.
<br />Other major changes in the liquor store budget include an increase in the
<br />depreciation expense of $29,000 (to a total of $52,000) based on the new store
<br />and a $27,000 decrease in transfers due to the refinancing of the City Hall
<br />bond. These two major budget changes somewhat offset each other.
<br />
<br />The revenue projections and an estimated income statement are listed below.
<br />Gross profits are up significantly due mainly to low estimates in previous
<br />budgets. The more accurate 1998 estimates are generally based on 1996
<br />actual figures.
<br />
<br />1995 1996 1997 1998
<br />ACTUAL ACTUAL ESTIMATED ESTIMATED
<br />
<br />SALES
<br />COST OF SALES
<br />GROSS PROFIT
<br />OPERATING EXPENSES
<br />OPERATING INCOME
<br />OTHER INCOME:
<br />INTEREST INCOME
<br />MISCELLANEOUS
<br />INCOME BEFORE TRANSFERS
<br />TRANSFERS OUT
<br />INCOME AFTER TRANSFERS
<br />CAPITAL OUTLAY
<br />DEBT SERVICE
<br />BALANCE
<br />
<br />$2,420,704 $2,703,795 $2,605,000 $2,800,000
<br /> 1,857,526 2,074,270 2,024,500 2,155,000
<br /> 563,178 629,525 580,500 645,000
<br /> 275,855 292,064 322,750 391,950
<br /> 287,323 337,461 257,750 253,050
<br />
<br /> 36,612 30,344 10,000 12,000
<br /> 637 475 0 0
<br /> 324,572 368,280 267,750 265,050
<br /> 183,450 163,450 153,450 126,300
<br /> 141,122 204,830 114,300 138,750
<br /> 403,371 51,066 400,000 10,000
<br /> 0 0 0 173,000
<br /> (262,249) 153,764 (285,700) (44,250)
<br />
<br />Liquor
<br />Beer
<br />Wine
<br />Other Taxable Sales
<br />Other Non-taxable Sales
<br />Freight
<br />
<br />REVENUE ANALYSIS
<br />
<br /> Sales Cost of Sales
<br />..................................... $ 810,000 $ 620,000
<br />..................................... 1,525,000 1,175,000
<br />..................................... 315,000 235,000
<br />..................................... 125,000 95,000
<br />..................................... 25,000 18,000
<br />..................................... 12,000
<br /> 2,800,000 2,155,000
<br />
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