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Here are some newspaper excerpts following the recent release of the 2011 State Auditor's Report on Municipal Liquor Operations:
Marshall
By Deb Gau , Marshall Independent
Scott VanMoer, manager of the Marshall municipal liquor store, said he and the Marshall store staff work to keep the business as strong as they can.
Profits generated by municipal liquor stores can provide extra revenue for the cities operating them. In Marshall, funds generated by the liquor store have sometimes been used for city projects.
One of the most recent examples was a total $1 million contribution for the construction of the Marshall-Lyon County Library. VanMoer said the liquor store was set to make four annual transfers of $250,000 for the library.
There are challenges that face municipal liquor stores, especially ones in rural areas, VanMoer said. VanMoer said the Marshall store does have an advantage in Marshall's size, and in the fact that the city draws in people from the surrounding area to work or shop. But liquor store staff still need to build up a customer base and sales, while carefully managing inventory, pricing and costs.
"It's buying products at the right time," and in the right amounts, VanMoer said. That's not always easy to do. "There are more and more new products coming out every day," he said, and many customers are looking for a wider selection in the liquor stores they visit.
Even factors like the weather can have an effect on sales, he said. Fewer people will be out shopping during bad weather, compared to a weekend when it's warm enough to fire up the grill.
VanMoer said having good staff was an important asset for the Marshall liquor store.
"It all goes to having a knowledgeable staff. We try to help customers with any questions we can," he said. That can extend to helping customers with wine or beer suggestions. "It seems to go a long way."
Brooklyn Center
By Katy Zillmer, Sun Post
Park shelter improvements, trail maintenance and fixes at city buildings in Brooklyn Center have all been funded by a portion of the profits from two municipal liquor stores, said Director of Fiscal and Support Services Dan Jordet.
Profits are transferred from the municipal liquor funds for use on city capital improvement projects at a level of at least $200,000 for year, Jordet said.
"We have run profits for a long, long time," he said.
Since 2005, the city has invested about $1.3 million of the liquor store profits into improvements of parks and trails, Jordet said.
Each year the city budgets that at least $200,000 will be transferred to capital improvements for building maintenance and parks and trails.
The city has used the liquor store profits to replace the West Palmer Lake park shelter, pave trails there and at Centennial Park and resurface tennis courts, among other project, he said.
Capital maintenance projects are also supported with the profits and the city has used about $130,000 since 2005, he said.
Staff make recommendations of projects that could be supported by the liquor store dollars, Jordet said, but the allocations are ultimately decided by the city council.
The one rule is the funding should be used for one-time expenditures, not a project that would require continued financial support, he said.
Future capital projects include soccer fields in Centennial Park, lighting improvements at Evergreen Park and improvements to the shelter at Orchard Lane Park.
Jordet stressed that a benefit of the liquor store profits is the city's ability to keep up with capital project plans without increasing property taxes.
"I think it's a huge advantage," he said.
Hutchinson
By Terry Davis, Hutchinson Leader
"2011 was good here and 2012 was even better," Liquor Hutch (Hutchinson) manager Candice Woods said. "During the recession, we didn't see increases for two or three years, but we began seeing increases in 2011. In 2012, we were able to meet our debt service, made our $420,000 transfer to the city and paid for our roof repair."
The Liquor Hutch is budgeted to turn over $435,000 of profit this year, while covering the $129,000 debt payment for its expansion several years ago.
Contributing to the improved bottom line, too, were cuts in staff in 2010, which was the same time other city departments also felt the budget knife. Labor was trimmed to 8 percent of costs by reducing full-time positions from five to three, and using more part-time workers to save benefit costs.
Woods said she has held staff almost level since then. But labor as a percent of costs had edged up to 9 percent last year. She said it was needed to meet service expectations.
"We are competitive on prices, not the lowest. We are big on selection and service," Woods said. "We train staff so they can go out on the floor and talk about our products."
Pine City
By Henry Fischer, The Pine City Pioneer
Voyageur Bottle Shop (Pine City) operations manager Lara Smetana, who also serves as President of the Minnesota Municipal Beverage Association this year, noted that Pine City's liquor store had $1.7 million in sales again in 2012, generating a net profit of $160,000 for the city.
Last year $100,000 was transferred into the city's general fund from liquor operations again, and Smetana anticipates transferring an additional $125,000 into the general fund in 2013.
Summarizing the liquor store's mission statement, Smetana said "Voyageur Bottle Shop is dedicated to serving the community through control and responsible sales of alcoholic beverages. We will provide assistance in the form of quality service and maximize profits in order to minimize the property tax burden of the citizens and businesses within Pine City."
For homeowners with a value of $100,000, this represents $60 per year in local property tax relief, Smetana pointed out. "The liquor operation is a revenue-generating department for the city. It is our responsibility to provide the community with a well-managed, clean, stocked, and updated establishment. Our employees provide a service while generating revenue for the general budget. The liquor operation also partners with local community groups to promote good customer relations."
Northfield
By Kaitlyn Walsh, Northfield News
"[Northfield Liquor] is doing well," finance director Kathleen McBride said.
What the store makes helps underwrite city operations.
McBride said the liquor operation's transfer to the city's general fund - strict profit-sharing - has remained constant at $125,000 per year.
In addition, the liquor fund is expected to continue to contribute to a public service program regarding alcohol-related problems through 2013 with $15,750 to the Mayor's Task Force on Youth Alcohol and Drug Use and $2,250 to the D.A.R.E. program.
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