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LIQUOR STORE FUND
<br />
<br />Provides for the total operation of the Elk River Municipal Liquor
<br />store as authorized by Minnesota State Law and the Elk River City
<br />Council.
<br />
<br />1999 BUDGET COMPARED WITH 1998 BUDGET
<br />
<br />The 1999 municipal liquor store operating budget is planned in the amount
<br />of $719,300. This is a $18,050 or 2.6 percent increase from the adopted 1998
<br />budget. The changes include, in round numbers, the personal services going
<br />up by $22,000; the supplies and other services/charges categories going up by
<br />$12,000; the capital outlay category going down $4,000; the debt service
<br />going down $27,000; and the transfers going up $15,000. Additional personal
<br />services are required due to the new larger store which opened in October
<br />1997 and the 1998 estimate appears to be slightly low. The transfer out
<br />increase is due to an additional $15,000 being used for general city services
<br />and activities. The contribution to the general fund in 1999 is $110,000.
<br />This increase in transfers is more than offset by the debt service reduction.
<br />Future debt payments are scheduled to be similar to the 1999 amount.
<br />
<br />The revenue projections and an estimated income statement are listed below.
<br />Gross profits are up due mainly to inflation of prices and also due to a low
<br />estimate in 1998. Based on 1997 actual gross sales, the 1999 estimate may
<br />even be low. A negative balance amount is anticipated at the end of 1999,
<br />but this is slightly offset by the budgeted depreciation expense of $52,000.
<br />
<br />1996 1997 1998 1999
<br />ACTUAL ACTUAL ESTIMATED ESTIMATED
<br />
<br />SALES $2,703,795 $2,887,798 $2,800,000 $3,000,000
<br />COST OF SALES 2,074,270 2~212,344 2,155,000 2,308,600
<br />GROSS PROFIT 629,525 675,454 645,000 691,400
<br />OPERATING EXPENSES 292 064 352,551 391,950 426 050
<br />OPERATING INCOME 337,461 322,903 253,050 265,350
<br />OTHER INCOME:
<br />INTEREST INCOME 30,344 28,692 12,000 12,000
<br />MISCELLANEOUS 475 38,653 0 0
<br />INCOME BEFORE TRANSFERS 368,280 390,246 265,050 277,350
<br />TRANSFERS OUT 163,450 153,450 126,300 141,250
<br />INCOME AFTER TRANSFERS 204,830 236,798 138,750 136,100
<br />CAPITAL OUTLAY 51,066 10,000 6,000
<br />DEBT SERVICE 0 0 173,000 146,000
<br />BALANCE 153,764 236,798 (44,250) /15,900)
<br />
<br />REVENUE ANALYSIS
<br />
<br />Sales Cost of Sales
<br />
<br />Liquor $ 885,000 $
<br />Beer 1,584,000
<br />Wine 378,000
<br />Other Taxable Sales 128,000
<br />Other Non-taxable Sales 25,000
<br />Freight
<br />
<br />720,000
<br />1,215,000
<br />270,000
<br />90,000
<br />
<br /> 13,600
<br />3,000,000 2,308,600
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