By Al Strain, Faribault Daily News
Though the Ellendale Municipal Liquor store recorded a loss for the second straight year in 2012, officials are predicting the store will produce a profit in 2013.
During a special meeting before the Ellendale City Council, liquor store manager Pete Paulson discussed the finances of the liquor store.
A meeting is required by the state if any municipal liquor store records a loss in two years of a three-year period.
In 2012, the liquor store recorded a loss of $2,443. That figure climbed to $13,893 after depreciation. Though it was a loss, 2012 was an improvement over 2011, when the liquor store lost $26,250.
"We lost a lot of money in 2011," said city council member Dean Reiter. "It's still a loss but it was certainly what we had, given the improvements that we've put into it."
In 2011, the report from the state auditor's office showed Ellendale ranked 200th out of the 208 Minnesota municipal liquor stores when it came to net profits.
The liquor store began serving food in 2012 as a way to help the business make more money.
"We had a few expenses related to opening the kitchen still in (the 2012 report)," Paulson said. "We didn't have those this year."
As for this year, things have been looking up for the liquor store fund.
Through the end of November, the liquor store recorded nearly $364,815 in revenues with $358,321 in total disbursements. That means the liquor store is showing a $6,494 profit through the first 11 months of this year.
Food sales have accounted for nearly $68,000 of the revenues at the liquor store. City Clerk Lee Ann Hojberg said the store has about $36,000 in the bank through the end of November.
"Everything is reconciled. All the checks are in and everything is totally in at this point as of Nov. 30," Hojberg said.
Ellendale Mayor Roger Swearingen was pleased with the progress the liquor store's finance has made in the last two years.
"We're gaining. We're making money," Swearingen said. "We have documentation showing we are progressing forward and making the best possible progress we can at this point."
The nearly $6,500 profit comes in a year when the liquor store fund paid for everything related to the annual Ellendale Days Celebration, Paulson said.
Paulson also discussed the possibility of discontinuing selling on-sale liquor in the restaurant on Sundays, at least partly.
In November 2012, Ellendale voters approved an ordinance that allowed the Grill to sell on-sale liquor on Sundays. The off-sale liquor still cannot be sold, per state law. Paulson reported that most Sundays haven't brought a lot of liquor sales.
"I definitely think it's not what we should be doing on Sunday," Paulson said. "We're not making money on Sundays."
Paulson said Sundays in the fall, when football has been on, have been better, but for the most part it has not been a profitable day.
"I'm guessing when we look at it, it will be an overall loss on Sunday," Paulson said.
Paulson said he'd like to bring more hard numbers back to the council during the first part of 2014 to evaluate if the Grill should be open on Sundays. Other options include closing the restaurant on Sundays or being open seasonally.
