082602 Liquor Comm AgP
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CITY OF SBOREWOOD
5755 COUNTRY CLUB,ROAD
LIQUOR COMMITTEE MEETING
MONDAY, AUGUST 26, 2002
6:00 P.M.
AGENDA
1. PROPOSED 2003 LIQUOR BUDGET
2. TONKABAYFACILITYUPDATE
3. LIQUOR EMPLOYEESPA Y STRUCTURE
4. OTHER
3. ADJOURN
CITY OFSHOREWOOD,
MINNESOTA
2003 PROPOSED
LIQUOR OPERATIONS BUDGET
August 22, 2002
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FUND:
Liquor
SUBFUND:
FUND NO:
.640
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DESCRIPTION OF ACTIVITY:
Provides for the sale of packaged alcoholic beverages to the general public.
OBJECTIVES:
_ Effectively controi the sale of packaged alcoholic beverages in the City
_ Produce a reasonable net profit
_ Find a new location for Tonka Bay Store
- Remodel Plaza Store
HIGHLIGHTS/COMMENTS:
Revenues:
Estimated liquor sales: approximately 4% increase over 2002 sales.
Expenses:
Staffing:
1.00 Operations Manager
5.00 Assistant Managers
2.00 Full Time Clerks
.15 Senior AcCounting Clerk
14.00 Part time Sales Clerks
Supplies/Materials:
Office Supplies, Bags, Postage
Services & Charges:
Finance and Auditing Services
Contractual Rug Service
General and Liquor Liability Insurance
Electric & Gas Utilities. and Refuse Hauling
Building Rental
Advertising
Credit Card Service Charges
Capital Outlay: Shorewood Plaza Store Improvements ($30,000)
Transfers Out:
Transfer to General Fund
Misc. Revenue/Expenditures:
Interest Income & Service Charges
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MISSION:
To control the sale and distribution of
packaged alcholic beverages within the
City and to provide property tax relief
the use of operation profits.
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. FUND: # 640 SUBFUND: Liquor Operations
BUDGET Actual Actual Budget YTD June
ITEM 2000 2001 2002 2002
REVENUE
Sales 2,532,379 2.629,588 2,692,130 1,243,730 2,810,000 0
Cost of Goods 1,888,069 1,962,099 2,034.864 832,526 2,113,000 0
GROSS PROFIT 644,310 667,490 657,266 411,205 697,000 0
EXPENSES
Staffing 259,076 290,934 302,702 142,835 336,531 0
Supplies/Materials 14,854 12,912 11,325 9.001 12.500 0
Services & Charges 251 ;081 2513,7137 255,195 - 120;767- .- 26-8,135 ."0
Depreciation 6,609 9,662 6,770 4,951 9,300 0
Capital Outlay 0 0 40,000 50 30,000 0
TOTAL EXPENSES 531,620 572,295 615,992 277,604 656,466 0
TOTAL OPERATING INCOME (LOSS) 112,690 95,195 41,274 133,601 40,534 0
Transfers In/(Out) (10,000) (10,000) (30,000) 0 0 0
Misc. Revenue/(Expense) 22,195 (2,840) 10,000 (1,958) 6,000 0
NET INCOME (LOSS) 124,885 82,355 21,274 131,643 46,534 0
SERVICE INDICATORS:
Gross Profit as a % of Sales 25.44% 25.38% 24.41 % 33.06% 24.80%
Oper. Income as a % of Sales 4.45% 3.62% 1.53% 10.74% 1.44%
CASH FLOW IMPACT:
Beginning Cash Balance 44,590 284,824 232,574 255,923 291,118
Net Operating Income/Loss 106,221 95,195 41,274 133,601 40,534
Depreciation 6,609 9,662 . 6,770 4,951 9;300
Other Cash Flow Impacts 127,404 . (157,106) 10,500 11,180 0
Ending Cash Balance 284,824 232,574 291,118 405,655 . 335,952
STAFFING:
Full time:
Operations Manager 1.00 1.00 1.00 1.00 1.00
Assistant Mat:lager 3.00 3.00 3.00 3.00 3.00
Full Time Clerk 2.00
Sr. Acctg. Clerk .15 .15 .15 .15 .15
Part time:
Sales Clerks 15.00 15.00 15.00 15.00 15.00
FUND NO:
641
MISSION:
To control the sale and distribution of
packaged alcholic beverages within the
City and to provide property tax relief
the use of operation profits.
FUND:
Liquor
SUBFUND:
Shorewood Plaza
DESCRIPTION OF ACTIVITY:
Provides for the sale of packaged alcoholic beverages to the general public.
OBJECTIVES:
_ Effectively control the sale of packaged alcoholic beverages in the City
_ Provide a profit equal to at least 2% of sales for transfer to the General Fund
HIGHLIGHTS/COMMENTS:
Revenues:
Estimated liquor sales
Expenses:
Staffing:
.33 Operations Manager
. 1.00 Assistant Manager
1.2 Full Time Clerk
5.00 Part time Sales Clerks
.05 Senior Accounting Clerk
Supplies/Materials:
Office Supplies, Postage, Equipment Repair, Bags
Services & Charges:
Finance and Auditing Services'
Contractual Rug Service
General and Liquor Liability Insurance
Electric & Gas Utilities, and Refuse Hauling
Building Rental .
Advertising
Credit Card Service Charges
Capital Outlay:
Counter, carpet, paint, gondolas $40,000
Misc. RevenuelExpenditures:
Interest Income & Service Charges
FUND: # 641 SUBFUND: Liquor - Shorewooc;l Plaza
BUDGET Actual Actual Budget YTD June Proposed
ITE~ 2000 2001 2002 2002 2003
REVENUE
Sales 1,093,956 1,086,613 1,115,500 485,605 1,140,000 0
Cost of Goods 810,884 813,073 836,625 316,292 853,000 0
GROSS PROFIT 283,072 273,540 278,875 169,313 287,000 0
EXPENSES
Staffing 1 01,236 117,261 116,819 53,967 127,565 0
SupplieslMaterials 6,127 4,733 4,975 3,495 4,000 0
Services & Charges 90,187 88,860 96,395 45,140 106,715 0
Depreciation 244 1,848 420 1,503 1,500 0
Capital Outlay 0 0 40,000 0 30,000 0
TOTAL EXPENSES 204,263 212,702 258,609 104,105 269,780 0
NET OPERATING INCOME (LOSS) 78,809 60,838 20,266 65,208 17,220 0
Transfers In/(Out) (5,000) (5,000) (15,000) 0 15,000 0
Misc. Revenue/(Expense) 14,813 7,697 10,000 857 10,000 0
NET INCOME (LOSS) 88,622 63,535 15,266 66,066 42,220 0
BUSINESS INDICATORS:
Gross Profit as a % of Sales 25.88% 25.17% 25.00% 34.87% 25.18%
Oper. Income as a % of Sales 7.20% 5.60% 1.82% 13.43% 1.51%
CASH FLOW IMPACT:
Beginning Cash Balance 132,349 287,570 280,742 280,742 305,928
Net Operating Income/(Loss) 78,809 60,838 20,266 65,208 17,220
Depreciation 244 1,848 420 1,503 1,500
Other Cash Flow Impacts 76,168 (69,514) 4,500 4,500 (5,000)
Ending Cash Balance 287,570 280,742 305,928 351,953 319,648
STAFFING:
Full time:
Operations Manager .33 .33 .33 .33 .33
Assistant Manager 1.00 1.00 1.00 1.0
Full Time Clerk 1.2
Sr. Acctg. Clerk .05 .05 .05 .05 .05
Part time:
Sales Clerks 6.00 5.00 5.00 5.00 5.00
FUND NO:
642
MISSION:
To control the sale and distribution of
packaged alchollc beverages within the
City and to provide property tax relief
the use of operation profits.
FUND:
Liquor
SUBFUND:
Waterford
DESCRIPTION OF ACTIVITY:
Provides for the sale of packaged alcoholic beverages to the general public.
OBJECTIVES:
. Effectively control the sale of packaged alcoholic beverages in the City
. Decrease operating loses through the reduction of leased floor space
HIGHLIGHTS/COMMENTS:
Revenues:
Estimated liquor sales
Expenses:
Staffing:
.33 Operations Manager
, 1.00 Assistant Manager
.40 Full Time Clerk
5.00 Part time Sales Clerks
.05 Senior Accounting Clerk
supplies/Materials:
Office Supplies, Postage, Equipment Repair, Bags
Services & Charges:
Finance and Auditing Services
Contractual Rug Service
General and Liquor Liability Insurance
Electric & Gas Utilities, and Refuse Hauling
Building Rental. reduced through reduction in floor space
Advertising
Credit Card Service Charges
Capital Outlay:
Misc. Revenue/Expehditures: '
Interest Income & Service Charges
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FUND: #642 SUBFUND: Liquor. Waterford
BUDGET Actual Actual Budget YTD June Proposed
ITEM 2000 2001 2002 2002 2003
REVENUE
Sales 710,433 774,745 783.180 377,768 846,000 0
Cost of Goods 539,260 562,372 595,217 256,271 634.000 0
GROSS PROFIT 171,173 ?12,372 187,963 121,491 . 212,000. 0
EXPENSES
Staffing 72,186 73,187 89,069 39,512 105,908 0
Supplies/Materials 4,020 3,878 3,425 3,440 4.000 0
Support Services 111 ,497 115,188 88,255 56,722 90,955 0
Depreciation 5,816 5,771 5,800 2,427 5,800 0
Capital Outlay
TOTAL EXPENSES 193,519 198,023 186,549 102,101 206,663 0
TOTAL OPERATING INCOME (LOSS) (22,346) 14,349 1,414 19,390 5,337 0
Transfers In/(Out) 0 0 0 0 (5,000) 0
Misc. Revenue/(Exp~nse) (911 ) (13,736) 0 (2,237) (4,000) 0
NET INCOME (LOSS) (23,257) 613 1,414 17,153 (3,663) 0
BUSINESS INDICATORS:
Gross Profit as a % of Sales 24.0S% 27.41% 24.00% 32.16% 25.06%
Oper. Income as a % of Sales (3.15%) 1.85% 0.18% 5.13% 0.63%
CASH FLOW IMPACT:
Beginning Cash Balance (166,804) (159,160) (181.233) (181,233) (171.019) (171 ,019)
Net Operating Income/(Loss) (22,346) 14,349 1.414 19.390 5,337 0
Depreciation 5.816 5.771 5.800 2,427 5,800 0
Other Cash Flow Impacts 24.174 (42,193) 3,000 3,000
Ending Cash Balance (159,160) (181.233) (171,019) (156,416) (159,882)
STAFFING:
. Full time: ",
Operations Manage~ .3~ .33 .33 .33 .33
Assistant Manager 1.00 1.00 1.00 1.00 1.0
Full Time Clerk .4
Sr. Acctg. Clerk .05 .05 .05 .05 .05
Part time:
Sales Clerks 5.00 5.00 5.00 5.00 5.00
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FUND NO:
643
MISSION:
To control the sale and distribution of
packaged alcholic beverages within the
City and to provide property tax relief
the use of operation profits.
FUND:
Liquor
SUBFUND:
Tonka Bay
DESCRIPTION OF ACTIVITY:
Provides for the sale of packaged alcoholic beverages to the general public.
This location was acquired in December, 1994.
OBJECTIVES:
_ Effectively control the sale of packaged alcoholic beverages in the City
_ Provide a profit equal to at least 2% of sales for transfer to the General Fund
HIGHLIGHTS/COMMENTS:
Revenues:
Estimated liquor sales
Expenses:
Staffing:
. .33 Operations Manager
1.00 Assistant Manager
.40 Full Time Clerk
4.00 Part time Sales Clerks
.05 Senior Accounting Clerk
supplies/Materials:
Office Supplies, Postage, Equipment Repair, Bags
Services & Charges:
Finance and Auditing Services
Contractual Rug Service
General and Liquor Liability Insurance
Electric ~ Gas Utilities, and Refuse Hauling
Building Rental
Advertising
Credit Card Service Charges
Capital Outlay:
Misc. Revenue/Expenditures:
Interest Income & Service Charges
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Hennepin County Transportation Department.
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1600 PrairIe Drive
Medlna,MN 55340-5421
763-745-7500, Phone
763-478-4000, Fax
763-478-4030, TOO
www.co.hennepln.mn.us
REVISED OFFER TO PURCHASE
STATEMENT OF COMPENSATION
Tuesday, August 13, 2002
TO: City of Tonka Bay
4901 Manitou Road
Tonka Bay, MN 55331
RE: County Highway 19, Project 9821 , Parcel 11
On May 24,2002 the County of Hennepin offered the City Of Tonka Bay the sum of $210,000 for
the total fee simple acquisition of the Tanka Bay LIquor Stor" located at 5681 Manitou Road, Tax
10 No. 33-117-23-14-0035. This offer Is based upon the assumption that the subject property Is
clean, or unimpaired by envlronmental contamination.
On August 9, 2002, 1 spoke wlth Robert Rys, City of Tanka Bay Administrator, who Indicated that
the City of Tonka Bay had an amendment to their lease wlh the City of Shorewood that states
that the City of Tanka Bay Is to receive all relocation benefits. After our discussion, I.contacted
Ken Helvey of Conworth Inc., Hennepin County's relocation; consultant to request an estimate of
relocation benefits available for the City of Tanka Bay. Mr. Helvey Indicated that the City of Tonka
Bay would be eligible for actual moving costs and up to $50,000 In reestablishment benefits.
On August 12, 2002, I provided Mr. Rys the actual relocation benefits that the City of Tonka Bay
could be eligible for., Based on my discussion with Mr. Rys it Is my understanding that the liquor
store could move Into the adjacent retail strip center (Smith Tqwn Crossing). Hennepin County
would reimburse the City of Tonka Bay the actual costs reciulred to move the Tonka Bay Liquor
Store operation from Its current location to this new location. In addition, Hennepin County would
pay up to $50,000 in reestablishment benefits to the City of Tanka Bay. These arrangements are
pased on the ass~mptlon that the current lease agreement 'l,(lth the .Clty of. Shorewood and Tanka
Bay is v~lid and legal. A summary of the amount set out above Is as follOWS: ." . . .
Total
$210 000
$50,000
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$260,000+
Real Pro e
Relocation Benefits:
Reestablishment
Actual Movin Ex ense
An Equal Opportunlry Employer
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If you decide to accept the offer, the parcel will be acquired ~y direct purchase and you will be
paid upon satisfactory evidence of merchantable title. Pleas~ contact me at (763) 745-7645 if
you have any questions or concerns. . .
Sincerely,
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TOT~ P.03