By Marie Johnson, Perham Focus
Everyone, raise your glasses in a toast to Landmark Liquors. Perham's burgeoning municipal liquor store had another record-setting year in 2014, and that means more money saved for local taxpayers.
For the first time in history, the store surpassed the $3 million mark in annual sales volume, raking in $3,063,790 - an increase of $128,135, or 4.4 percent, over 2013.
Almost 3,100 additional customers came through the doors last year, and customers spent an average of 42 cents more on purchases than they did the year before.
Sales of beer, wine and liquor all increased. The store's net income went up, while operating expenses stayed the same.
In short, as store manager Bob Dreger said, "2014 was a very good year for Landmark Liquors."
The store has been consistently growing in recent years, with a sales increase of 28 percent over the past four years alone.
City Manager Kelcey Klemm said the rising profits show city leaders were right to relocate the liquor store in 2008, moving it from the lower level of City Hall to a larger building of its own on a site that's easily visible from Highway 10.
The decision to move the store "was controversial at the time," said Klemm. "But the then-city council and city manager made a good decision to relocate. It's proven itself. It's paid off."
Revenues from the liquor store help fund the city's day-to-day operations as well as special capital projects, and are also used to support events and organizations such as the Perham Area Community Center, the East Otter Tail County Fair and the city's two museums.
The more money the liquor store makes, the more can be used for these purposes, and thus taxpayers are relied on less.
Klemm said $40,000 of last year's liquor store revenues went into the city's general fund, helping to keep the tax levy down, while another large chunk has been designated to help pay the city's share of repairs to the library.
(The city expects to pay $257,000 this year to rid the library of mold, while a state grant will pay another $257,000.)
The overall impact on taxpayers is worth noting.
If there were no liquor store revenues to factor into the city budget, according to Perham Finance Officer Patti Stokke, the city's tax levy would have been 11 percent higher in 2014.
Stokke said the store's contribution to the general fund has long been a part of Perham's annual budget.
The amount reserved for the general fund hasn't changed in recent years, so excess or unexpected revenues are available to put toward other needed projects, such as the library renovations.
"'Our profits get poured back into our community,' is the slogan on our sign," said Dreger.
"It's important to keep your dollars at home. I think people are realizing what an impact we have on the community."
Dreger said Landmark Liquors' growth is fueled by Perham community members.
Though summer shoppers and some out-of-towners boost the store's bottom line, it's the year-round local customers who provide a "stable base" for the store, he said, "and that's what makes us successful."
He also credits the store's competitive everyday prices, as well as sales, discounts, promotional items and friendly customer service from his staff.
Customers who stop in from out of town, he said, "really like the small town, friendly atmosphere... We get so many compliments from people on the beautiful building and store, and the variety that we have."
To help keep the store growing into the future, Dreger said there are plans to upgrade point-of-sale technology so credit cards with smart chips can be processed.
There will also be more craft beers put on display in the main aisle, along with some new wines.
"There will always be something different here, to keep it fresh and exciting," Dreger said.