01-25-2010 CC - Laserfiche WebLink

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ADDITIONAL INFORMATION A. We employ 50+ full and Part-time employees and 90% of those employees live within a 5 mile radius of Moe’s. All of which either own their home or pay rent within the same 5 mile radius of Moe’s. Our payroll for 2009 was $533,649.22 and in addition we paid $82,765 in Payroll Taxes and Health Care to the various employees. B. In 2009 we experience a 2nd “minimum wage” increase to $7.25. This increase costs Moe’s $45,000 in additional wages not planned for or recouped. We desperately need “tip credit” in Minnesota. (39) States have it and our neighboring states have it. C. Based on our sales figures for 2009, our credit card fees have continued to rise based on credit card usage growing from approximately 50% in 2008 to just over 90% in December of 2009. The average fee is approximately 3% so therefore we have lost 3% of the income on the additional 40% increase in credit card sales. For us at Moe’s that meant a LOSS IN INCOME due to credit card fee’s of $21,000 in 2009. D. Moe’s experienced a $178,000 dollar decrease in sales from 2008 to 2009. As you can see, we had to endure a $66,000 “Loss in Revenue” due to increase fee’s and taxes through no fault of our own. We could not plan for it or save for it. There have been many changes that have contributed to my delinquent property tax status. As I have pointed out we have experienced a downturn in sales, increase costs, increased taxes, fee’s, etc: Paid Property Tax (as of 1/7/10) $23,496.79 Paid Sales Tax (as of 1/7/10) $91,000 + $56,000 (paid Jan. – May) Loss income due to Minimum Wage $45,000 Loss income due to CC fee’s $21,000 Approximate TTL: $236,496.79 The only reason we are still alive and battling day-to-day is because I have emptied out all my savings, created 2nd mortgages against my home, emptied out my kids mutual funds, had a investment property foreclosed upon and worked for free since July of this year.