The URL can be used to link to this page

Home My WebLink About2021 Liquor Proposed Detail BudgetThe City of CH Columbia Heights 2021 PROPOSED DETAIL BUDGET LIQUOR City of Columbia Heights Table of Contents Liquor 2021 Proposed Detail Budget Liquor Summary Page 1 Liquor Store #1 Proposed Expense and Narrative 2 Detail Expense 3 Summary of Costs 5 Liquor Store #2 Proposed Expense and Narrative 7 Detail Expense 8 Summary of Costs 10 Liquor Store #3 Proposed Expense and Narrative 12 Detail Expense 13 Summary of Costs 15 Liquor Non -Operating Proposed Expense and Narrative 17 Detail Expense 18 Summary of Costs 19 Reviewer's Notes Blank Pages 20 �I°)r MIMI o! I I I Ir II Q O O 1O C O Z m U: L1 l00 O V) V1 N f0 7t Ol O CU N O � c N c Ln �••/ L N 00 O 2 Lu 7 w 7 _ C7 O O E O J p Y lD Co V) = O u O Y u O Lo r-I N N Ln V1 00 O 01 00 O Ln ld o0 M O 00 ¢t r-I Ln m O O .-I O 41 N m 01 m O � O r 1' Ql Lr N Ln Q Ln N 0) U 00 � Ln !0 � CA U d oa u E c ,, a c a > +J , O a C Ln � o v Z Ol j �O LL O i Ln 2 C 0C1 C iD M U h x a a ro a a c U !` 00C H -j U LL- to F rn rn rn rn rn rn rn rn� Ol Ol Q1 Ql Q1 O1 Ol Ol � a Ql N m 01 01 C ri N M -�t w m Vl lD Ol N M M M M M M M M > a f0 f+ O H r-I w 000 O 0 00 O0 O LD O 1.0 ri rn M 0 0 w m m Ln Oi O 00 n n n O m O 00 LR Wi , LA M LA N m ri a -I 0 00 N I O N' N rO-0 qT N O C m O t •: w a O oL0 u O E v> LLM 0 L. Qj LnQ u O N 00 U 06 c z a U U a 0J a a `- 0 a aco v aO+ c i C 00 = a 0. a ;a +� c m O a CL 'On Qj Lu a cn O D U °� a Ca O 01 01 01 01 01 (A 0) 01 01 O1 01 N O 01 01 01 O ri N Ol (m -:t lD d U. O a .. x LLJ y 00 f0 a+ c m O t � u 3 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2021 DEPARTMENT: LIQUOR STORE #1 609 49791 LIQUOR LIQUOR STORE #1 Actual Expense 2018 Actual Expense 1 2019 Adopted Budget 1 2020 Department Proposed 1 2021 City Manager Proposed 1 2021 Council Adopted 1 2021 Line Item Description 0999 Personal Services 540,513 1999 Supplies 3,040,752 2999 Other Services & Charges 272,764 4999 Capital Outlay - 6999 Contingencies & Transfers - TOTALS: LIQUOR STORE #1 3,854,029 Activity Description 549,097 576,500 607,200 607,200 3,210,039 3,071,300 3,164,800 3,164,800 269,476 295,700 302,100 302,100 4,028,612 3,943,500 4,074,100 4,074,100 Under MN statute, the primary purpose of municipal liquor stores is to control the distribution of alcohol . Municipal liquor stores can also generate income for the community, reducing the amount of property taxes otherwise required for city operations. The income opportunities are limited however, by significant market competition within the metro area. Additionally, when the current Top Valu I facility was constructed in 2007-2008 at 4950 Central Avenue NE, the City Council chose to construct the building to very strict design guidelines, so that this store will be a leading example for other businesses in the community for many years. Our city's three -store municipal liquor operation is the 6th largest by gross sales in Minnesota. It has provided funds for city infrastructure, equipment, and mitigation of the negative effects of alcohol in the community through activities such as D.A.R.E. Objectives Coming out of an uncertain 2020, the liquor operation will continue to be agile and adjust to the ever changing Twin Cities metro market. Product offerings and sale strategies will be consistent with market trends to help capture the consumers who are constantly looking for the selection and quality of products to fit their needs. In 2021, advertising will see little change with a focus still on increasing the online presence of the brand, serving our core customers through local papers and reaching new ones through industry specific publications and apps and zip code focused mailings. Unity of the brand will continue with all 3 stores doing business under the Top Valu Liquor name and employees with branded uniforms will make for a cohesive customer experience. Customer service will be more focused and employees will be easier to identify by customers. In 2021, the operation will continue to learn how best to use the new point -of -sale system for inventory management, promotions, purchasing and sales data, which will allow the operation to continue to be financially sound. Budget Comments on Proposed Budget Within the Supplies category, the cost of goods sold for the liquor operation is budgeted each year to reflect the most recent sales projections available. Apart from the cost of goods sold, the proposed increase in 2021 operating expenses for all three stores combined is $75,700 or 4.1% over the 2020 budget. $63,000 or 3.4% of this increase for all three stores combined is in personnel, reflecting cost -of -living increases, seniority step increases for satisfactory performance evaluations, and changes in participation rates in the health insurance plan, all of which are provided for under existing labor agreements. The proposed changes to 2021 non -personnel costs make up 0.7% of the increase over 2020. These changes include: • $9,000 more in credit card fees, to reflect increased use by customers of this payment method. Factors driving the increased use of credit cards include the COVID-19 pandemic, and in 2020 the stores also permanently stopped accepting checks as a result of a long decline in the use of checks. • A $7,500 increase in Comcast charges for internet and network services. This increase reflects both a price increase and a large increase in the amount of bandwidth purchased. • A $5,000 decrease in property and liability insurance premiums, primarily due to good claims experience. City of Columbia Heights, Minnesota 2021 Budget Worksheet 609 49791 1 LIQUOR LIQUOR STORE #1 Actual Expense 2018 Actual Expense 2019 Adopted Budget 2020 Department Proposed 2021 City Manage Proposed 2021 Council Adopted 2021 Line Item Description PERSONAL SERVICES 1000 ACCRUED SALARIES - - - - 1010 REGULAR EMPLOYEES 238,508 246,357 259,100 272,100 272,100 1011 PART-TIME EMPLOYEES 133,219 136,570 140,700 143,300 143,300 1012 SEASONAL EMPLOYEES - - - - - 1013 PART-TIME OTHER 25,264 20,508 30,000 32,400 32,400 1020 OVERTIME -REGULAR 181 284 - - - 1021 OVERTIME -PART-TIME - - 1030 VACATION & SICK 367 1,806 - - - 1031 HOLIDAY PAY 4,149 4,623 5,100 5,500 5,500 1050 SEVERANCE PAY 2,610 1070 INTERDEPARTMENTAL LABOR SERV - - 1080 INTERDEPARTMENTAL LABOR CR - 1210 P.E.R.A. CONTRIBUTION 29,963 30,484 32,500 33,800 33,800 1220 F.I.C.A. CONTRIBUTION 30,728 30,679 33,300 34,700 34,700 1225 FLEX BENEFIT FICA - - - - - 1300 INSURANCE 52,779 65,870 58,400 65,600 65,600 1400 UNEMPLOYMENT COMPENSATION 4,671 -78 - - - 1510 WORKERS COMP INSURANCE PREM 18,073 11,995 17,400 19,800 19,800 1700 ALLOCATED FRINGE - - - - - 1800 INTERDEPARTMENTAL FRINGE CR 1810 COLA ALLOWANCE - - - - 0999 TOTALS: PERSONAL SERVICES 540,513 549,097 576,500 607,200 607,200 SUPPLIES 2000 OFFICE SUPPLIES 602 759 600 700 700 2010 MINOR EQUIPMENT 293 187 1,200 600 600 2011 COMPUTER EQUIPMENT 3,811 4,256 4,000 4,000 4,000 2020 COMPUTER SUPPLIES 739 893 900 900 900 2030 PRINTING & PRINTED FORMS - 2160 MAINT. & CONSTRUCT MATERIALS - - - - 2171 GENERAL SUPPLIES 9,400 10,081 10,000 10,000 10,000 2175 FOOD SUPPLIES 118 173 200 200 200 2199 DELIVERY 20,979 25,826 21,000 23,000 23,000 2280 VEHICLE REPAIR AND PARTS 248 56 300 300 300 2282 GAS, OIL, LUBRICANTS 63 76 100 100 100 2510 COST OF GOODS SOLD - LIQUOR 1,121,077 1,224,905 1,130,000 1,200,000 1,200,000 2520 COST OF GOODS SOLD - BEER 1,323,643 1,355,307 1,350,000 1,350,000 1,350,000 2530 COST OF GOODS SOLD - WINE 383,705 391,117 399,000 400,000 400,000 2550 COST OF GOODS SOLD - MISC TAX 42,271 45,444 41,000 43,000 43,000 2553 COST OF GOODS SOLD - CIGARETTES 30,026 29,513 27,000 29,000 29,000 2559 COST OF GOODS SOLD - LOTTERY 86,227 102,099 69,000 85,000 85,000 2590 COST OF GOODS SOLD - MISC NTAX 17,551 19,347 17,000 18,000 18,000 2600 REFUNDS & LOSS ON DEPOSITS - - - - - 1999 TOTALS: SUPPLIES 3,040,752 3,210,039 3,071,300 3,164,800 3,164,800 3 City of Columbia Heights, Minnesota 2021 Budget Worksheet 609 1 49791 LIQUOR LIQUOR STORE #1 Actual Expense 2018 Actual Expense 2019 Adopted Budget 2020 Department Proposed 2021 City Manages Proposed 2021 Council Adopted 2021 Line Item Description OTHER SERVICES & CHARGES 3050 EXPERT & PROFESSIONAL SERV. 3105 TRAINING & EDUC ACTIVITIES 3210 TELEPHONE & TELEGRAPH 3211 CELL PHONES 3220 POSTAGE 3250 OTHER COMMUNICATIONS 3310 LOCAL TRAVEL EXPENSE 3320 OUT OF TOWN TRAVEL EXPENSE 3420 ADVERTISING ENTERPRISES 3430 ADVERTISING OTHER 3600 PROP & LIAB INSURANCE 3810 ELECTRIC 3820 WATER 3830 GAS 3850 SEWER 4000 REPAIR & MAINT. SERVICES 4010 BUILDING MAINT:LABOR & BURDEN 4020 BUILDING MAINTENANCE 4040 INFORMATION SYS:INTERNAL SVC 4050 GARAGE, LABOR BURD. 4080 VEHICLE REPAIR 4100 RENTS & LEASES 4300 MISC. CHARGES 4310 CREDIT CARD FEES 4330 SUBSCRIPTION, MEMBERSHIP 4390 TAXES & LICENSES 4395 STATE SALES TAX 4910 BUILDING DEPRECIATION 4930 EQUIPMENT DEPRECIATION 2999 TOTALS: OTHER SERVICES & CHARGE CAPITAL OUTLAY 5180 OTHER EQUIPMENT 4999 TOTALS: CAPITAL OUTLAY 6999 TOTAL OTHJER FINANCING USES TOTALS: LIQUOR STORE #1 3,424 3,426 2,500 2,400 2,400 735 1,046 800 300 300 2,579 2,543 2,400 3,000 3,000 - - 300 300 300 2,568 2,473 3,000 5,100 5,100 873 1,090 800 1,000 1,000 100 500 500 14,900 10,825 16,600 16,000 16,000 11 17,800 17,900 19,200 17,100 17,100 25,774 22,897 27,100 26,000 26,000 1,267 1,307 1,500 1,500 1,500 5,489 5,306 5,800 5,800 5,800 1,017 1,049 1,100 1,100 1,100 2,689 1,592 4,800 4,800 4,800 8,400 11,000 11,000 11,000 11,000 22,197 18,005 27,000 27,000 27,000 22,000 25,300 26,600 27,400 27,400 757 213 600 600 600 157 198 200 - 59,178 64,145 60,000 66,000 66,000 2,020 1,900 2,000 2,000 2,000 263 181 300 200 200 64,554 64,283 66,000 66,000 66,000 14,111 12,797 16,000 17,000 17,000 272,764 269,476 295,700 302,100 302,100 3,854,029 4,028,612 3,943,500 4,074,100 4,074,100 4 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2021 FUND NUMBER 609.49791 SUMMARY OF COST FACTORS FOR THE COMING YEAR Explanation of Personnel LIQUOR STORE #1 BUDGET 2020 Adopted 2021Proposed Total Total F.T.E. Total Total Comp Total Total Comp Position Title 2020 2021 Salaries Fringe & Fringe Salaries Fringe & Fringe Liquor Operations Manager 0.47 0.47 49,792 16,489 66,281 53,638 18,012 71,650 Asst. Store Managers 2.00 2.00 128,712 48,234 176,946 132,552 50,766 183,318 Store Supervisor 1.47 1.79 77,536 27,821 105,357 84,388 33,404 117,792 Retail Clerk 5.07 4.97 178,860 49,056 227,916 182,722 51,718 234,440 Rounding - Subtotal 9.01 9.23 434,900 141,600 576,500 453,300 153,900 607,200 Total 9.01 9.23 434,900 141,600 576,500 453,300 153,900 607,200 Supplies Object Code Misc. Office Supplies 700 2000 Minor Equipment calculators, display fixtures, carts, shelving, etc. 600 2010 Computer hardware/software replacement of video cameras, percons, office PCs. MS -Office 4,000 2011 Computer Supplies thermal register paper, cables, misc. 900 2020 General Supplies bags, light bulbs, signs, paper towels, bleach etc. 10,000 2171 Food Supplies 200 2175 Vehicle Parts van parts and repairs 300 2280 Gas, Oil and Lubricants 100 2282 Cost of Goods Sold & Delivery 3,148,000 2XXX 3,164, 800 Other Services & Charges Expert & Professional Services Audit fee per prep manual 2,400 3050 Training & Educ. Activities 2@ MMBA conf + Alcohol Svc. Training 300 3105 Telephone - per prep manual 3,000 3210 Cell Phone - Scheduler & LOM 300 3211 Other Communications Per prep manual rounded est 5,100 3250 Local Travel Expense - mileage 1,000 3310 Out of Town Travel Expense - Hotel & Meals: 2@ MMBA conf 500 3320 Advertising Expense Print publications, social media, other 16,000 3220 Property & Liability Insurance per prep manual 17,100 3600 Liquor Summary of Costs Continued on Next Page 5 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2021 FUND NUMBER 609.49791 Liquor Summary of Costs Continued Electric - per trend Water - per trend Gas - per trend Sewer - per trend Repair & Maintenance Services Copier @ Konica rate RITE Cloud Retailer SaaS RITE/CardefenderSaaS RITE/general suppt LED Sign & Misc equip maint Building Maintenance: Int Svcs - per prep manual Building Maintenance Fire alarm & extinguishers Intrusion alarm monitoring Window cleaning Pest control Electrical: ballasts, relamp, etc. Elevator agreement $140/mo. + parts Doors/security system maint Fertilizer, weed control, mulch Lawn sprinkler maint HVAC base agreement HVAC & Cooler repair not covered Rugs, towels, mops Carpet cleaning Sealcoat Other bldg, roof, & plumbing repairs Information Sys: Internal Svc - per prep manual Garage, Labor Burden - 1/3 van per store Credit Card Fees - per trend Subscription, Membership MMBA, MLBA, misc. Taxes & Licenses - elevator permit & misc. Depreciation per schedule 200 2,600 500 1,000 500 1,300 500 600 400 1,000 3,000 4,000 1,200 300 3,700 2,000 3,000 1,000 4,300 700 LIQUOR STORE #1 BUDGET Object Code 26,000 3810 1,500 3820 5,800 3830 1,100 3850 4,800 4000 11,000 4010 4020 27,000 4020 27,400 4040 600 4050 66,000 4310 2,000 4330 200 4390 83,000 4910/4930 302,100 2 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2021 DEPARTMENT: LIQUOR STORE #2 609 49792 LIQUOR LIQUOR STORE #2 Actual Expense 2018 Actual Expense 2019 Adopted Budget 2020 Department Proposed 2021 City Manager Proposed 2021 Council Adopted 2021 Line Item Description 0999 Personal Services 445,311 447,795 475,400 494,800 494,800 1999 Supplies 2,417,599 2,386,763 2,479,200 2,467,000 2,467,000 2999 Other Services & Charges 212,314 210,631 237,200 238,400 238,400 4999 Capital Outlay - - 6999 Contingencies & Transfers - - - - - TOTALS: LIQUOR STORE #2 3,075,224 3,045,190 3,191,800 3,200,200 3,200,200 Activity Description Under MN statute, the primary purpose of municipal liquor stores is to control the distribution of alcohol . Municipal liquor stores can also generate income for the community, reducing the amount of property taxes otherwise required for city operations. The income opportunities are limited however, by significant market competition within the metro area. Additionally, when the current Top Valu I facility was constructed in 2007-2008 at 4950 Central Avenue NE, the City Council chose to construct the building to very strict design guidelines, so that this store will be a leading example for other businesses in the community for many years. Our city's three -store municipal liquor operation is the 6th largest by gross sales in Minnesota. It has provided funds for city infrastructure, equipment, and mitigation of the negative effects of alcohol in the community through activities such as D.A.R.E. Objectives Coming out of an uncertain 2020, the liquor operation will continue to be agile and adjust to the ever changing Twin Cities metro market. Product offerings and sale strategies will be consistent with market trends to help capture the consumers who are constantly looking for the selection and quality of products to fit their needs. In 2021, advertising will see little change with a focus still on increasing the online presence of the brand, serving our core customers through local papers and reaching new ones through industry specific publications and apps and zip code focused mailings. Unity of the brand will continue with all 3 stores doing business under the Top Valu Liquor name and employees with branded uniforms will make for a cohesive customer experience. Customer service will be more focused and employees will be easier to identify by customers. In 2021, the operation will continue to learn how best to use the new point -of -sale system for inventory management, promotions, purchasing and sales data, which will allow the operation to continue to be financially sound. Budget Comments on Proposed Budget Within the Supplies category, the cost of goods sold for the liquor operation is budgeted each year to reflect the most recent sales projections available. Apart from the cost of goods sold, the proposed increase in 2021 operating expenses for all three stores combined is $75,700 or 4.1% over the 2020 budget. $63,000 or 3.4% of this increase for all three stores combined is in personnel, reflecting cost -of -living increases, seniority step increases for satisfactory performance evaluations, and changes in participation rates in the health insurance plan, all of which are provided for under existing labor agreements. The proposed changes to 2021 non -personnel costs make up 0.7% of the increase over 2020. These changes include: • $9,000 more in credit card fees, to reflect increased use by customers of this payment method. Factors driving the increased use of credit cards include the COVID-19 pandemic, and in 2020 the stores also permanently stopped accepting checks as a result of a long decline in the use of checks. • A $7,500 increase in Comcast charges for internet and network services. This increase reflects both a price increase and a large increase in the amount of bandwidth purchased. • A $5,000 decrease in property and liability insurance premiums, primarily due to good claims experience. 7 City of Columbia Heights, Minnesota 2021 Budget Worksheet 609 49792 LIQUOR LIQUOR STORE #2 Actual Expense 2018 Actual Expense 2019 Adopted Budget 2020 Department Proposed 2021 CityKmagerl Proposed 2021 Council Adopted 2021 Line Item Description PERSONAL SERVICES 1000 ACCRUED SALARIES 1010 REGULAR EMPLOYEES 1011 PART-TIME EMPLOYEES 1013 PART-TIME OTHER 1020 OVERTIME -REGULAR 1021 OVERTIME -PART-TIME 1030 VACATION & SICK 1031 HOLIDAY PAY 1050 SEVERANCE PAY 1070 INTERDEPARTMENTAL LABOR SERV 1080 INTERDEPARTMENTAL LABOR CR 1210 P.E.R.A. CONTRIBUTION 1220 F.I.C.A. CONTRIBUTION 1225 FLEX BENEFIT FICA 1300 INSURANCE 1400 UNEMPLOYMENT COMPENSATION 1510 WORKERS COMP INSURANCE PREM 1700 ALLOCATED FRINGE 1800 INTERDEPARTMENTAL FRINGE CR 1810 COLA ALLOWANCE 0999 TOTALS: PERSONAL SERVICES SUPPLIES 2000 OFFICE SUPPLIES 2010 MINOR EQUIPMENT 2011 COMPUTER EQUIPMENT 2020 COMPUTER SUPPLIES 2160 MAINT. & CONSTRUCT MATERIALS 2171 GENERAL SUPPLIES 2175 FOOD SUPPLIES 2199 DELIVERY 2280 VEHICLE PARTS 2282 GAS, OIL, LUBRICANTS 2510 COST OF GOODS SOLD - LIQUOR 2520 COST OF GOODS SOLD - BEER 2530 COST OF GOODS SOLD - WINE 2550 COST OF GOODS SOLD - MISC TAX 2553 COST OF GOODS SOLD - CIGARETTES 2559 COST OF GOODS SOLD - LOTTERY 2590 COST OF GOODS SOLD - MISC NTAX 2599 CASH DISCOUNT 2600 REFUNDS & LOSS ON DEPOSITS 1999 TOTALS: SUPPLIES OTHER SERVICES & CHARGES 3050 EXPERT & PROFESSIONAL SERV. 178,457 149,188 10,200 6,471 3,701 627 25,595 26,820 28,670 15,582 445,311 128 2,011 916 7,824 135 16,235 187 63 809,148 1,104,482 320,714 33,596 25,587 83,012 13,560 2,417,599 3,210 194,199 149,813 3,982 3,696 4,267 26,324 27,523 27,652 10,339 447,795 313 525 2,101 1,143 7,678 107 17,859 164 72 803,077 1,092,436 306,853 32,131 28,033 80,438 13,833 2,386,763 3,212 8 197,000 205,100 205,100 159,200 158,800 158,800 7,300 12,400 12,400 4,100 4,200 4,200 27,500 28,400 28,400 28,100 29,100 29,100 37,500 40,200 40,200 14,700 16,600 16,600 475,400 494,800 494,800 200 700 3,000 900 7,000 200 16,500 200 805,000 1,156,000 336,000 35,000 23,000 83,000 12,500 2,479,200 2,500 200 600 3,000 900 8,000 100 17,000 200 820,000 1,140, 000 325,000 33,000 25,000 81,000 13,000 2,467,000 2,400 200 600 3,000 900 8,000 100 17,000 200 820,000 1,140, 000 325,000 33,000 25,000 81,000 13,000 2,467,000 2,400 City of Columbia Heights, Minnesota 2021 Budget Worksheet 609 49792 LIQUOR LIQUOR STORE #2 Actual Expense 2018 Actual Expense 2019 Adopted Budget 2020 Department Proposed 2021 City Manager Proposed 2021 Council Adopted 2021 Line Item Description 3105 TRAINING & EDUC ACTIVITIES 3210 TELEPHONE & TELEGRAPH 3211 CELL PHONES 3220 POSTAGE 3250 OTHER COMMUNICATIONS 3310 LOCAL TRAVEL EXPENSE 3320 OUT OF TOWN TRAVEL EXPENSE 3420 ADVERTISING ENTERPRISES 3600 PROP & LIAB INSURANCE 3810 ELECTRIC 3820 WATER 3830 GAS 3850 SEWER 4000 REPAIR & MAINT. SERVICES 4010 BUILDING MAINT:LABOR & BURDEN 4020 BUILDING MAINTENANCE 4040 INFORMATION SYS:INTERNAL SVC 4050 GARAGE, LABOR BURD. 4080 VEHICLE REPAIR 4100 RENTS & LEASES 4300 MISC. CHARGES 4310 CREDIT CARD FEES 4330 SUBSCRIPTION, MEMBERSHIP 4390 TAXES & LICENSES 4395 STATE SALES TAX 4910 BUILDING DEPRECIATION 4930 EQUIPMENT DEPRECIATION 2999 TOTALS: OTHER SERVICES & CHARGE! CAPITAL OUTLAY 5180 OTHER EQUIPMENT 4999 TOTALS: CAPITAL OUTLAY 6999 TOTAL OTHJER FINANCING USES TOTALS: LIQUOR STORE #2 - 818 200 300 300 1,577 1,735 1,600 1,800 1,800 - - 300 300 2,214 2,186 2,600 4,800 4,800 72 65 600 100 100 - - 100 500 500 13,448 10,235 15,000 15,000 15,000 14,000 14,000 15,100 12,800 12,800 19,559 15,675 20,500 20,000 20,000 3,098 1,211 2,000 2,000 2,000 4,410 4,617 4,600 4,800 4,800 1,001 1,044 1,100 1,200 1,200 1,478 1,054 3,500 3,700 3,700 7,200 9,700 9,700 9,700 9,700 11,734 13,007 21,000 21,000 21,000 18,000 20,700 21,800 22,400 22,400 460 373 500 500 500 133 160 200 - - 47,938 48,741 49,000 50,000 50,000 2,020 1,900 2,000 2,000 2,000 141 40 100 100 100 49,216 48,945 51,000 50,500 50,500 11,404 11,215 12,500 12,500 12,500 212,314 210,631 237,200 238,400 238,400 3,075,224 3,045,190 3,191,800 3,200,200 3,200,200 0 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2021 FUND NUMBER 609.49792 SUMMARY OF COST FACTORS FOR THE COMING YEAR Explanation of Personnel LIQUOR STORE #2 BUDGET 2020 Adopted 2021 Proposed Total Total F.T.E. Total Total Comp Total Total Comp Position Title 2020 2021 Salaries Fringe & Fringe Salaries Fringe & Fringe Liquor Operations Manager 0.38 0.38 40,257 13,332 53,589 43,367 14,562 57,929 Asst. Store Managers 2.00 2.00 128,712 48,234 176,946 132,552 50,766 183,318 Store Supervisors 0.84 0.87 39,093 15,741 54,834 45,471 17,949 63,420 Retail Clerk 4.61 4.40 159,538 30,493 190,031 159,110 31,023 190,133 Subtotal 7.83 7.65 367,600 107,800 475,400 380,500 114,300 494,800 Total 7.83 7.65 367,600 107,800 475,400 380,500 114,300 494,800 Supplies Object Code Misc. Office Supplies 200 2000 Minor Equipment calculators, display fixtures, carts, shelving, etc. 600 2010 Computer hardware/software replacement of video cameras, percons, office PCs. MS -Office 3,000 2011 Computer Supplies thermal register paper, cables, misc 900 2020 General Supplies bags, light bulbs, signs, paper towels, bleach etc. 8,000 2171 Food Supplies 100 2175 Vehicle Parts van parts and repairs 200 2280 Gas, Oil and Lubricants - 2282 Cost of Goods Sold & Delivery 2,454,000 2XXX 2,467,000 Other Services & Charees Expert & Professional Services Audit fee per prep manual 2,400 3050 Training & Educ. Activities 2@ MMBA conf+Alcohol Svc. Training 300 3105 Telephone - per prep manual 1,800 3210 Cell Phone - Scheduler & LOM 300 3211 Other Communications Per prep manual rounded est 4,800 3250 Local Travel Expense - mileage 100 3310 Out of Town Travel Expense - Hotel & Meals: 2@ MMBA conf 500 3320 Advertising Expense Print publications, social media, other 15,000 3220 Property & Liability Insurance per prep manual 12,800 3600 Liquor Summary of Costs Continued on Next Page 10 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2021 FUND NUMBER 609.49792 Liquor Summary of Costs Continued Electric - per trend Water - per trend Gas - per trend Sewer - per trend Repair & Maintenance Services Copier @ Konica rate RITE Cloud Retailer SaaS RITE/Cardefender SaaS RITE/general suppt LED Sign & Misc equip maint Building Maintenance: Int Svcs - per prep manual Building Maintenance Fire alarm & extinguishers Intrusion alarm monitoring Window cleaning Pest control Electrical: ballasts, relamp, etc Elevator agreement $140/mo + parts Doors/security system maint Fertilizer, weed control, mulch Lawn sprinkler maint HVAC base agreement HVAC & Cooler repair not covered Rugs, towels, mops Carpet cleaning Sealcoat Other bldg, roof, & plumbing repairs Information Sys: Internal Svc - per prep manual Garage, Labor Burden -1/3 van per store Credit Card Fees - per trend Subscription, Membership MMBA, MLBA, misc Taxes & Licenses - elevator permit & misc Depreciation per schedule 1,800 600 800 Snn 1,200 500 300 400 1,200 2,200 1,200 300 3,300 2,000 2,600 700 3,300 1,800 LIQUOR STORE #2 BUDGET Object Code 20,000 3810 2,000 3820 4,800 3830 1,200 3850 3,700 4000 9,700 4010 21,000 4020 22,400 4040 500 4050 50,000 4310 2,000 4330 100 4390 63,000 4910/4930 238,400 11 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2021 DEPARTMENT: LIQUOR STORE #3 609 49793 LIQUOR LIQUOR STORE #3 Actual Expense 2018 Actual Expense 2019 Adopted Budget 2020 Department Proposed 2021 City Manager Proposed 2021 Council Adopted 2021 Line Item Description 0999 Personal Services 150,279 150,740 1999 Supplies 1,021,799 1,128,219 2999 Other Services & Charges 55,288 58,315 4999 Capital Outlay - - 6999 Contingencies & Transfers - TOTALS: LIQUOR STORE #3 1,227,365 1,337,275 Activity Description 160,000 173,200 173,200 1,018,700 1,114,300 1,114,300 64,200 68,000 68,000 1,242,900 1,355,500 1,355,500 Under MN statute, the primary purpose of municipal liquor stores is to control the distribution of alcohol . Municipal liquor stores can also generate income for the community, reducing the amount of property taxes otherwise required for city operations. The income opportunities are limited however, by significant market competition within the metro area. Additionally, when the current Top Valu I facility was constructed in 2007-2008 at 4950 Central Avenue NE, the City Council chose to construct the building to very strict design guidelines, so that this store will be a leading example for other businesses in the community for many years. Our city's three -store municipal liquor operation is the 6th largest by gross sales in Minnesota. It has provided funds for city infrastructure, equipment, and mitigation of the negative effects of alcohol in the community through activities such as D.A.R.E. Objectives Coming out of an uncertain 2020, the liquor operation will continue to be agile and adjust to the ever changing Twin Cities metro market. Product offerings and sale strategies will be consistent with market trends to help capture the consumers who are constantly looking for the selection and quality of products to fit their needs. In 2021, advertising will see little change with a focus still on increasing the online presence of the brand, serving our core customers through local papers and reaching new ones through industry specific publications and apps and zip code focused mailings. Unity of the brand will continue with all 3 stores doing business under the Top Valu Liquor name and employees with branded uniforms will make for a cohesive customer experience. Customer service will be more focused and employees will be easier to identify by customers. In 2021, the operation will continue to learn how best to use the new point -of -sale system for inventory management, promotions, purchasing and sales data, which will allow the operation to continue to be financially sound. Budget Comments on Proposed Budget Within the Supplies category, the cost of goods sold for the liquor operation is budgeted each year to reflect the most recent sales projections available. Apart from the cost of goods sold, the proposed increase in 2021 operating expenses for all three stores combined is $75,700 or 4.1% over the 2020 budget. $63,000 or 3.4% of this increase for all three stores combined is in personnel, reflecting cost -of -living increases, seniority step increases for satisfactory performance evaluations, and changes in participation rates in the health insurance plan, all of which are provided for under existing labor agreements. The proposed changes to 2021 non -personnel costs make up 0.7% of the increase over 2020. These changes include: • $9,000 more in credit card fees, to reflect increased use by customers of this payment method. Factors driving the increased use of credit cards include the COVID-19 pandemic, and in 2020 the stores also permanently stopped accepting checks as a result of a long decline in the use of checks. • A $7,500 increase in Comcast charges for internet and network services. This increase reflects both a price increase and a large increase in the amount of bandwidth purchased. • A $5,000 decrease in property and liability insurance premiums, primarily due to good claims experience. 12 City of Columbia Heights, Minnesota 2021 Budget Worksheet 609 49793 LIQUOR LIQUOR STORE #3 Actual Expense 2018 Actual Expense 2019 Adopted Budget 2020 Department Proposed 2021 City Manager Proposed 2021 Council Adopted 2021 Line Item Description PERSONAL SERVICES 1000 ACCRUED SALARIES 1010 REGULAR EMPLOYEES 1011 PART-TIME EMPLOYEES 1013 PART-TIME OTHER 1020 OVERTIME -REGULAR 1021 OVERTIME -PART-TIME 1030 VACATION & SICK 1031 HOLIDAY PAY 1050 SEVERANCE PAY 1070 INTERDEPARTMENTAL LABOR SERV 1080 INTERDEPARTMENTAL LABOR CR 1210 P.E.R.A. CONTRIBUTION 1220 F.I.C.A. CONTRIBUTION 1225 FLEX BENEFIT FICA 1300 INSURANCE 1400 UNEMPLOYMENT COMPENSATION 1510 WORKERS COMP INSURANCE PREM 1700 ALLOCATED FRINGE 1800 INTERDEPARTMENTAL FRINGE CR 1810 COLA ALLOWANCE 0999 TOTALS: PERSONAL SERVICES SUPPLIES 2000 OFFICE SUPPLIES 2010 MINOR EQUIPMENT 2011 COMPUTER EQUIPMENT 2020 COMPUTER SUPPLIES 2030 PRINTING & PRINTED FORMS 2171 GENERAL SUPPLIES 2175 FOOD SUPPLIES 2199 DELIVERY 2280 VEHICLE PARTS 2282 GAS, OIL, LUBRICANTS 2510 COST OF GOODS SOLD - LIQUOR 2520 COST OF GOODS SOLD - BEER 2530 COST OF GOODS SOLD - WINE 2550 COST OF GOODS SOLD - MISC TAX 2553 COST OF GOODS SOLD - CIGARETTES 2559 COST OF GOODS SOLD - LOTTERY 2590 COST OF GOODS SOLD - MISC NTAX 2600 REFUNDS & LOSS ON DEPOSITS 1999 TOTALS: SUPPLIES OTHER SERVICES & CHARGES 3050 EXPERT & PROFESSIONAL SERV, 3105 TRAINING & EDUC ACTIVITIES 27,806 27,260 24,600 26,100 26,100 67,003 77,978 70,300 85,200 85,200 26,751 20,256 34,900 28,800 28,800 221 274 600 700 700 53 - 9,138 9,433 9,800 10,500 10,500 9,252 9,515 10,000 10,800 10,800 4,668 2,468 4,600 4,900 4,900 5,387 3,558 5,200 6,200 6,200 150,279 150,740 160,000 173,200 173,200 56 60 100 100 100 - 7 300 300 300 989 5,576 1,200 1,500 1,500 422 417 400 400 400 80 - - - - 3,555 4,169 3,600 4,000 4,000 53 27 100 100 100 5,498 6,456 6,600 6,700 6,700 173 89 200 100 100 63 72 - 100 100 425,588 483,452 415,000 475,000 475,000 398,033 430,500 420,000 430,000 430,000 44,142 56,073 42,500 55,000 55,000 20,596 21,250 18,500 21,000 21,000 25,628 26,849 23,500 25,000 25,000 90,796 87,731 80,000 89,000 89,000 6,129 5,492 6,700 6,000 6,000 1,021, 799 1,128, 219 1,018,700 1,114, 300 1,114,300 2,996 3,353 2,500 2,400 2,400 - 229 200 100 100 13 City of Columbia Heights, Minnesota 2021 Budget Worksheet 609 49793 LIQUOR LIQUOR STORE #3 Actual Expense 2018 Actual Expense 2019 Adopted Budget 1 2020 Department Proposed 1 2021 City Manager Proposed 1 2021 Council Adopted 1 2021 Line Item ❑escription 3210 TELEPHONE & TELEGRAPH 3211 CELL PHONES 3220 POSTAGE 3250 OTHER COMMUNICATIONS 3310 LOCAL TRAVEL EXPENSE 3320 OUT OF TOWN TRAVEL EXPENSE 3420 ADVERTISING ENTERPRISES 3600 PROP & LIAB INSURANCE 3810 ELECTRIC 3820 WATER 3830 GAS 3850 SEWER 4000 REPAIR & MAINT. SERVICES 4010 BUILDING MAINT:LABOR & BURDEN 4020 BUILDING MAINTENANCE 4040 INFORMATION SYS:INTERNAL SVC 4050 GARAGE, LABOR BURD. 4080 VEHICLE REPAIR 4100 RENTS & LEASES 4300 MISC. CHARGES 4310 CREDIT CARD FEES 4330 SUBSCRIPTION, MEMBERSHIP 4390 TAXES & LICENSES 4395 STATE SALES TAX 4910 BUILDING DEPRECIATION 4930 EQUIPMENT DEPRECIATION 2999 TOTALS: OTHER SERVICES & CHARGE! CAPITAL OUTLAY 5180 OTHER EQUIPMENT 4999 TOTALS: CAPITAL OUTLAY 6999 TOTAL OTHJER FINANCING USES TOTALS: LIQUOR STORE #3 136 155 200 200 200 2,095 2,013 2,500 4,600 4,600 72 65 100 100 100 - - - 200 200 2,362 3,500 4,000 4,000 5,000 4,800 5,200 4,700 4,700 6,049 5,820 6,400 6,200 6,200 361 408 400 400 400 1,159 1,175 1,200 1,200 1,200 422 450 500 500 500 952 678 2,400 2,200 2,200 3,600 4,100 4,100 4,100 4,100 8,167 5,182 9,000 9,000 9,000 5,000 5,700 6,000 6,200 6,200 388 374 500 400 400 15,268 17,262 16,000 18,000 18,000 2,020 1,900 2,000 2,000 2,000 35 40 - - - 680 - - - 1, 569 1,569 1,500 1,500 1,500 55,288 58,315 64,200 68,000 68,000 1,227,365 1,337, 275 1,242,900 1,355,500 1,355,500 14 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2021 FUND NUMBER 609.49793 SUMMARY OF COST FACTORS FOR THE COMING YEAR Explanation of Personnel LIQUOR STORE #3 BUDGET 2020 Adopted 2021 Proposed Position Title F.T.E. 2020 2021 Total Salaries Total Fringe Total Comp & Fringe Total Salaries Total Fringe Total Comp & Fringe Liquor Operations Manager Store Supervisors Retail Clerk 0.15 1.40 2.04 0.15 1.03 2.36 15,891 44,045 70,464 5,263 10,796 13,541 21,154 54,841 84,005 17,119 38,218 85,463 5,749 9,949 16,702 22,868 48,167 102,165 Subtotal 3.59 3.54 130,400 29,600 160,000 140,800 32,400 173,200 3.59 3.54 130,400 29,600 160,000 140,800 32,400 173,200 supplies Object Code Misc. Office Supplies 100 2000 Minor Equipment calculators, display fixtures, carts, shelving, etc. 300 2010 Computer hardware/software replacement of video cameras, percons, office PCs. MS -Office 1,500 2011 Computer Supplies thermal register paper, cables, misc. 400 2020 General Supplies bags, light bulbs, signs, paper towels, bleach etc. 4,000 2171 Food Supplies 100 2175 Vehicle Parts van parts and repairs 100 2280 Gas, Oil and Lubricants 100 2282 Cost of Goods Sold & Delivery 1,107,700 2XXX 1,114, 300 Other Services & Charees Expert & Professional Services Audit fee per prep manual 2,400 3050 Training & Educ. Activities 2@ MMBA conf. +Alcohol Svc. Training 100 3105 Telephone - per prep manual 200 3210 Cell Phone - Scheduler & LOM - 3211 Other Communications Per prep manual rounded est 4,600 3250 Local Travel Expense - mileage 100 3310 Out of Town Travel Expense - Hotel & Meals: 2@ MMBA conf 200 3320 Advertising Expense Print publications, social media, other 4,000 3220 Property & Liability Insurance 4,700 3600 Liquor Summary of Costs Continued on Next Page 15 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2021 FUND NUMBER 609.49793 Liquor Summary of Costs Continued Electric - per trend Water - per trend Gas - per trend Sewer - per trend Repair & Maintenance Services Copier @ Konica rate RITE Cloud Retailer SaaS RITE/Cardefender SaaS RITE/general suppt LED Sign & Misc equip maint Building Maintenance: Int Svcs - per prep manual Building Maintenance Fire: alarm, monitoring & svcs Intrusion alarm monitoring Window cleaning Pest control Electrical: ballasts, relamp, etc Elevator svc agreement + parts Doors/security system maint Fertilizer, weed control, mulch Lawn sprinkler maint HVAC base agreement HVAC & Cooler repair not covered Rugs, towels, mops Carpet cleaning Sealcoat Other bldg, roof, & plumbing repairs Information Sys: Internal Svc - per prep manual Garage, Labor Burden - 1/3 van per store Credit Card Fees - per trend Subscription, Membership MMBA, MLBA, misc Taxes & Licenses - elevator permit & misc Depreciation per schedule 1,200 200 600 300 500 100 400 500 1,000 1,200 1,300 1,200 1,500 LIQUOR STORE #3 BUDGET 6,200 3810 400 3820 1,200 3830 500 3850 Object Code 2,200 4000 4,100 4010 9,000 4020 6,200 4040 400 4050 18,000 4310 2,000 4330 - 4390 1,500 4910/4930 68,000 16 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2021 DEPARTMENT: LIQUOR NON -OPERATING 609 49794 LIQUOR LIQUOR NON -OPERATING Actual Expense 2018 Actual Expense 2019 Adopted Budget 2020 Department Proposed 2021 City Manager Proposed 2021 Council Adopted 2021 Line Item Description 0999 Personal Services 1999 Supplies 2999 Other Services & Charges 4999 Capital Outlay 6999 Contingencies & Transfers TOTALS: LIQUOR NON -OPERATING Activity Description 414,944 449,400 414,944 449,400 23,000 - - 469,900 479,300 479,300 - 492,900 479,300 479,300 To improve the analysis of results at each of the three stores, activity that is not a function of store operations is accounted for separately in the non -operating department 49794. These nonoperating activities routinely include acquisition of equipment over $5,000; construction of building or parking lot improvements; debt service; and transfers to other city funds. Objectives Continue funding the Infrastructure Fund 430 at $50,000 per year, as in prior years. This supports the core strategy of of strong infrastructure/puiblic services stated in the City Council's 2020 goal -setting report. Continue funding D.A.R.E. and other police community programs within the General Fund at $10,000 per year. This supports a primary goal in the City Council's 2020 goal -setting report to enhance and strengthen community/police relations. Replace the very used van for store operations with a much -less -used van from the Public Works fleet. Budget Comments on Proposed Budget The budget for this department is $23,600 or 5% lower for 2021 than for 2020. This primarily reflects the one-time outlay in 2020 to replace the stores' point of sale software and terminals. The on -going annual subscription cost of the new software is budgeted in the store operating budgets in 2021. 17 City of Columbia Heights, Minnesota 2021 Budget Worksheet 609 49794 LIQUOR LIQUOR NON -OPERATING Actual Expense 2018 Actual Expense 2019 Adopted Budget 2020 Department Proposed 2021 City Manager Proposed 2021 Council Adopted 2021 Line Item Description OTHER SERVICES & CHARGES 3050 EXPERT & PROFESSIONAL SERV. 4020 BUILDING MAINTENANCE 4040 INFORMATION SYS:INTERNAL SVC 4330 SUBSCRIPTION, MEMBERSHIP 4390 TAXES & LICENSES 2999 TOTALS: OTHER SERVICES & CHARGE! CAPITAL OUTLAY 5120 BUILDING 5180 EQUIPMENT 23,000 4999 TOTALS: CAPITAL OUTLAY - - 23,000 - - OTHER FINANCING USES 7100 OPER. TRANSFER OUT - LABOR 86,944 85,400 90,900 95,300 95,300 7160 TRANSFER OUT TO BONDS 268,000 304,000 319,000 314,000 314,000 7210 TRANSFER OUT TO GENERAL FUND 10,000 10,000 10,000 10,000 10,000 7270 TRANS TO CAP EQP REPL FD - - 10,000 10,000 7310 TRANSFER OUT TO DARE - - - 7330 TRANSFER OUT TO INFRASTRUCTURE 50,000 50,000 50,000 50,000 50,000 7370 TRANSFER OUT TO INFO SYSTEMS - 8100 CONTINGENCIES - - 6999 TOTALS: OTHER FINANCING USES 414,944 449,400 469,900 479,300 479,300 TOTALS: LIQUOR NON -OPERATING 414,944 449,400 492,900 479,300 479,300 18 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2021 FUND NUMBER Liquor LIQUOR NON -OPERATING BUDGET 609.49794 SUMMARY OF COST FACTORS FOR THE COMING YEAR Explanation of Personnel 2020 Adopted 2021 Proposed F.T.E. Position Title 2020 2021 Total Total Total Comp Salaries Fringe & Fringe Total Total Total Comp Salaries Fringe & Fringe None - - - Subtotal None Total Nonpersonnel Expenses Description CAPITAL EQUIPMENT AND IMPROVEMENTS Amount Object code LINE # DESCRIPTION PROPOSED COSTS TOTAL PROPOSED COSTS EXPENSED PROPOSED COSTS DEPRECIATED 7270 Transfer to Capital Equip Fund for van replacement $ 10,000 $ 10,000 $ - Various Store 3 remodel project (Approved in prior years ] SUBTOTAL: $ 10,000 $ 10,000 $ - TRANSFERS AND CONTINGENCIES Transfer to Debt Service - per prep manual. Principal $ 260,000 Interest 52,000 Paying agent fees 2,000 7160 $ 314,000 $ 314,000 $ 7100 Transfer to General Fund - admin labor per prep manual 95,300 95,300 Transfer to General Fund - operating support for DARE 7210 and other related Police Community programs 10,000 10,000 7330 Transfer to Infrastructure Fund - per infrastructure plan 50,000 50,000 7370 Transfer to Information Systems 10,000 10,000 SUBTOTAL: $ 479,300 $ 479,300 $ 19 Reviewer's Notes 20 Reviewer's Notes 21