Jen Cullen
The Republican Eagle - 03/03/2009
There was a time in the 1950s and 60s when Kenyon's municipal liquor store was the city's primary revenue source. Those days are over, but city officials say the store's recent financial turnaround shows it can once again play an important role in Kenyon's finances.
"If managed properly, it can be a huge asset," said Kenyon City Administrator Chris Heineman. "The store has turned around substantially, especially in past 18 months or so."
According to an annual state auditor's report released last week, the store had a $5,084 net loss in 2007. Amended numbers will show that number is actually closer to $40,000, Heineman said.
Since then, the store - Goodhue County's only municipal facility - has rebounded into the black.
The state won't release its 2008 municipal liquor store operations analysis until next year, but Heineman said preliminary year-end numbers show a $40,000 gain.
"That's an $80,000 swing," Heineman said. "The store really has turned around."
Kenyon's facility offers a store-like atmosphere for off-sale customers. There is also a bar that has been renovated over the past few years.
Heineman called 2007 a "major transition year" for the store.
Not only were profits trending down, he said, but the store's manager was let go and began receiving a severance package that came out of liquor store coffers.
Heineman said closing the store would be a "primary consideration" if it continued losing money. Since it's not, "We're setting ourselves up to move forward and to continue to make a profit," he said.
Heineman said the city must continue to invest in the store and make sure it's managed properly for it to make money.
Just last week, officials eliminated the assistant manager position. Heineman said other improvements are in the works for next year and that officials will work to better market the store.
"It still can play a very important part in providing city services and reducing the burden on the tax paying citizens," he said.
