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LIQUOR STORE
<br />
<br />Provides for the total operation of the Elk River Municipal Liquor store as
<br />authorized by Minnesota State Law and the Elk River City Council.
<br />
<br />2002 BUDGET COMPARED WITH 2001 BUDGET
<br />
<br />The 2002 municipal liquor store operating budget is proposed in the amount of $892,150.
<br />This is a $101,250 or 12.8 percent increase over the adopted 2001 budget. The largest
<br />increase in this 2002 budget is in the debt service category which increased by $53,050.
<br />When removing this budget category from the analysis, the rest of the 2002 budget increased
<br />6.1 percent or $48,200. Additional expenses in 2002 include: $15,700 increase in personnel
<br />services for normal wage adjustments; $10,000 in other professional services for a second
<br />municipal liquor store market feasibility study; and a $10,000 increase in transfers to the
<br />general fund. In 2002 the capital outlay request is for new registers at the check-out counters
<br />and some computer related equipment.
<br />
<br />The 2002 estimated income statement for the liquor store is shown below. The operating
<br />expenses from the adjacent page are shown in a slightly different format in the income
<br />statement. The personnel services, supplies, and other services/charges are grouped as
<br />operating expenses, while the transfers, capital ouday, and debt expenses are listed
<br />separately. The sales revenues projected for 2002 is 5.2 percent more than the actual 2000
<br />figure and 4 percent above the 2001 adopted budget. The year-end balance projection is
<br />almost identical to the 2001 estimate even when considering the larger debt service payment.
<br />The balance is projected in the amount of $147,350 for 2002.
<br />
<br />The liquor store operation has a manager plus 4 full time and between 4 and 7 part time
<br />employees.
<br />
<br /> 1999 2000 2001 2002
<br />ACTUAL ACTUAL ESTIMATED ESTIMATED
<br />
<br />SALES $3,478,937 $3,788,048 $3,826,400 $3,985,350
<br />COST OF SALES 2,652,392 2,846,327 2,920,050 2,987,350
<br />GROSS PROFIT 826,545 941,721 906,350 998,000
<br />OPERATING EXPENSES 431,835 451,197 490,150 531,150
<br />OPE1LATING INCOME 394,710 490,524 416,200 466,850
<br />OTHER INCOME:
<br />INTEREST INCOME 22,309 78,782 30,000 40,000
<br />MISCELLANEOUS 1,524 (6,766) 2,000 1,500
<br />INCOME BEFO1LE T1LANSFERS 418,543 562,540 448,200 508,350
<br />TRANSFERS OUT 141,250 146,400 148,300 158,300
<br />INCOME AFTER TRANSFERS 277,293 416,140 299,900 350,050
<br />CAPITAL OUTLAY 5,662 9,985 11,500 8,700
<br />DEBT SERVICE 145,961 146,040 140,950 194,000
<br />BALANCE 125,670 260,115 147,450 147,350
<br />
<br />Liquor
<br />
<br />Wine
<br />Other Sales
<br />Freight
<br />
<br /> REVENUE ANALYSIS
<br /> Sales
<br />.................................. $1,193,400 $ 895,050
<br />.................................. 1,985,750 1,529,050
<br />.................................. 592,450 408,800
<br />.................................. 213,750 138,950
<br />.................................. 15,500
<br />
<br />Cost of Sales
<br />
<br />$3_985_350 $2_987_35~0
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