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<br />LIQUOR STORE FUND
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<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.
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<br />2000 BUDGET COMPARED WITH 1999 BUDGET
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<br />The 2000 municipal liquor store operating budget is planned in the amount of
<br />$782,800. This is a $63,500 or 8.8 percent increase from the adopted 1999
<br />budget. The biggest change in this 2000 budget is an increase of $32,000 in
<br />the depreciation line item. This line item went from $52,000 in both the 1998
<br />and 1999 budgets to a more realistic amount of $84,000 in the 2000 budget.
<br />The new liquor store was completed in late 1997, and this depreciation figure
<br />has been low the first two years. Removing this increase from the budget
<br />equation, the 2000 liquor store budget goes up only $31,500 or 4.4 percent.
<br />This $31,500 increase can be seen mainly in the $6,000 increase in the
<br />capital outlay category, the $10,300 increase in the transfers out category,
<br />and the $11,000 increase in the personal services category. The 2000 capital
<br />outlay request of $12,000 is for new signage.
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<br />The 2000 estimated income statement for the liquor store is shown below.
<br />Gross profits are projected to increase due mainly to inflation of prices and
<br />also due to a low estimate being used in 1999. If the customer count at the
<br />store increases, the 2000 estimate may also be low. Regarding the debt
<br />service expense, the city started making payments on the new liquor store in
<br />1998. The final payment is scheduled for February 2007.
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<br />It should be noted that in 1999 the city hired Dave Potvin as its new liquor
<br />store manager. The previous manager, Fritz Dolejs, retired after 15 years of
<br />service to Elk River. In addition to the manager, the municipal liquor store
<br />staff includes 4 full time and 4-7 part time employees.
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<br /> 1997 1998 1999 2000
<br /> ACTUAL ACTUAL ESTIMATED ESTIMATED
<br />SALES $2,887,798 $3,074,852 $3,000,000 $3,293,000
<br />COST OF SALES 2,212,344 2,383,340 2,308,600 2,537,600
<br />GROSS PROFIT 675,454 691,512 691,400 755,400
<br />OPERATING EXPENSES 352,551 455,045 426,050 473,200
<br />OPERATING INCOME 322,903 236,467 265,350 282,200
<br />OTHER INCOME:
<br />INTEREST INCOME 28,692 24,751 12,000 12,000
<br />MISCELLANEOUS 38,653 94,824 0 19,700
<br />INCOME BEFORE TRANSFERS 390,248 356,042 277,350 313,900
<br />TRANSFERS OUT 153,450 131,651 141,250 151,550
<br />INCOME AFTER TRANSFERS 236,798 224,391 136,100 162,350
<br />CAPITAL OUTLAY 6,000 12,000
<br />DEBT SERVICE 0 170,863 146,000 146,050
<br />BALANCE 236,798 53,528 (15,900) 4,300
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