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LIQUOR STORE
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<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 />2003 BUDGET COMPARED WITH 2002 BUDGET
<br />
<br />The 2003 municipal liquor store operating budget is proposed in the amount of $937,000.
<br />This is a $44,850 or 5 percent increase over the adopted 2002 budget. Changes to note
<br />include: the $21,550 increase in personnel services, a $25,000 increase in the contribution to
<br />the general fund (transfer out), a $4,100 reduction in the debt payment, no capital outlay
<br />items being proposed for 2003 (an $8,700 reduction in this category), a $4,000 increase in
<br />marketing, a $7,000 increase in credit card fees, a $10,000 reduction in professional services
<br />(the 2002 expenditure was for the Westbound feasibility study), and a $4,800 increase in
<br />dues. It is surprising to note that over three percent of the operating budget is for credit card
<br />fees but in general this is the "price of doing business" in today's economy. Also, it should
<br />be noted that the dues increase is speculative in anticipation of a request for an assessment
<br />from the Minnesota Liquor Association to help educate everyone about the wine in grocery
<br />store legislation. Council approval is required before this assessment expenditure takes place.
<br />
<br />The 2003 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 this income
<br />statement. The personnel services, supplies, and other services/charges are grouped as
<br />operating expenses, while the transfers, capital outlay, and debt expenses are listed
<br />separately. The sales revenues projected for 2003 is 3.69 percent over the 2001 actual sales.
<br />The year-end balance projection is nearly identical to the projections for 2002 in spite of the
<br />additional $25,000 contribution to the city's general fund. The balance is projected in the
<br />amount of $149,650 for 2003.
<br />
<br />The liquor store operation includes the liquor store manager plus 4 full 6me and anywhere
<br />bet~veen 4 and 7 part time employees depending upon the season.
<br />
<br />2000 201) 1 2002 2003
<br />ACTU.AL ACTUAL ESTIMATED ESTIMATED
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<br />SALES $3,788,048 3,981,509 3,985,350 4,128,400
<br />COST OF SAi.ES 2,846,327 2,962,968 2,987,350 3,090,250
<br />GROSS PROFIT 941,721 1,018,541 998,000 1,038,150
<br />OPE1LATING EXPENSV. S 451,197 502,660 531,150 563,800
<br />OPE1L~\TIN G INCOME 490,524 515,881 466,850 474,350
<br />OTHER INCOME (EXPENSE):
<br /> INTEREST INCOME 78,782 60,412 40,000 45,000
<br /> MISCEI.I.ANEOUS (6,766) 2,422 1,500 3,500
<br />INCOME BEFOKE TRANSFERS 562,540 578,715 508,350 522,850
<br />TRANSFERS OUT 146,400 148,300 158,300 183,300
<br />INCOME AFTER TI~\NSFERS 416,140 430,415 350,050 339,550
<br />CAPITAL OUTI.AY 9,985 4,809 8,700 0
<br />DEBT SERVICE 146,040 140,960 194,000 189,900
<br />BALANCE 260,115 284,646 147,350 149,650
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<br />Liquor
<br />Beer
<br />Wine
<br />Other Sales
<br />Freight
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<br /> REVENUE ANALYSIS
<br /> Sales
<br />.................................. $1,229,200 $ 921,900
<br />.................................. 2,065,200 1,569,550
<br />.................................. 604,300 423,000
<br />.................................. 229,700 160,800
<br />.................................. 15,000
<br /> $4,128,400 $3,090,250
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<br />Cost of Sales
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