4.4. SR 11-08-1999 - Laserfiche WebLink

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. . . program in order to encourage recycling and reduce the waste stream. Additionally, if cities do have organized collection systems, the county desires to have the waste disposed of at the RDF Plant. This new revenue is incorporated into the 2000 budget and this paYment by the county combined with the new contracts will allow the city to slightly reduce its customer rates for 2000. Please see the attached memo from Debbie Long for the details on the proposed new rates. The new Municipal Liquor Store at the corner of Highway 169 and 193rd Avenue opened in October 1997. It is difficult to call 1998 a true reflection of operating expenses and revenues at Northbound as there were still unusual expenses in 1998 associated with the new store and customers were still finding us at our new location. Accordingly, it is expected that year-end 1999 figures will offer a truer reflection of annual operating revenues and expenditures than what we saw in 1998. The attached 2000 budget is based on a combination of 1999 year end projections and 1998 actual figures. Initially the customer count at the new liquor store was down about 1 percent and operating expenses, especially personal services, were up from what was experienced at the old facility. Lately, the customer count has been slightly increasing and the operating expenses have been held steady. Neither of these statistics comes as a surprise and over time it is expected that the net profit will increase. The gross profit has steadily increased over the last few years, while the net profit has fluctuated, but is now beginning to slowly Increase. Northbound still has over 50 percent of its revenues generated from selling beer, and beer has the lowest profit margin of all the products sold at the liquor store. Wine has the highest margin of profit and is steadily becoming a bigger seller at the new store. The wine market is increasing and this is expected to help boost profits in the future. It should be noted that the transfers out have increased by $10,000 for 2000. The total transfers out is projected in the amount of$151,550, of which $110,000 goes directly into the general fund and the balance, $41,250 goes for the city hall debt service. Whether or not the WWTS budget needs to use reserves to balance the budget depends entirely on the amount of sewer connection charges that are received. The city has experienced a few good years in the recent past with the collection of SAC fees, and these high revenue years are needed to offset