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Don't Ki I I the Goose That Lays- the t Golden Egg This 1989 article has been updated and reprinted by MMBA member request. The management of city governments regulators have privately acknowledged difficult to find for the sewer,water, in Minnesota and across the nation is municipal liquor operations have fewer street and other service departments of changing. problems. They admit"there is nothing government? Yes. The role which municipal liquor stores worse than a liquor store in a bad (c)Is it nearsighted to think a play within these changes is financial condition. Some will do community will have fewer police dramatically changing as well. anything to turn over a buck. And that's problems with a private liquor outlet? In analyzing this role we first have to when laws are broken." Considering the "control" issue remember how and why municipal The social responsibilities of moderate discussed earlier, it probably is. liquors came into existence. After the drinking is best achieved through (d)Does not the problem of bad repeal of.prohibition in the late 1920's, municipal stores. checks also occur in other parts of city many councils opted to build their own Reason(2): Municipal money government(i.e. license fee, water bill beer,wine and spirits outlets. shortages Each year,municipal stores payments,etc.). Yes. The reasons were primarily twofold. throughout the state create revenue for We suggest that blaming the municipal (1)Illegal bootlegging was so prevalent cities to purchase bulletproof jackets for liquor can be an excuse for other city during prohibition that the citizenry the police department,breathalizers for problems. However,not realizing the wanted common sense control over the DWI enforcement and labor/materials full potential of a wellmanaged legal sale of beer,wine and spirits. for numerous community municipal liquor store to a community Communities all over Minnesota improvements. socially and profitably is often short decided control is best achieved thru The income generated from municipal sighted. It indicates that possibly some municipal outlets. (2)Most operations is just as important today.as city officials do not. communities welcomed the income too. it was years ago:.With federal understand the liquor business so now During this time they were short of government eliminating all aids and they want to get out.of it. money for public improvements such state government drastically reducing However,the trend has reversed. as water towers,streets,buildings,etc. them,local Councils are looking to their Remodeling,expansion and building It is often said: "We live in a world of liquor stores for help..They realize new facilities are the year 2000 trends. cycles." This quotation begs the without these funds,new monies for the Occasionally,we still see some question: "Are not the same reasons for grader and sewer repair will have to councils closing a municipal liquor municipal beverage stores the same come from unhappy taxpayers. store to gain immediate cash or relieve today as they were in the 1920's,30's, The cycle in the midl%O's was for a perceived headache. However, many etc.?" . ' municipalities to sell their liquor stores then quickly reopen a closed facility or Let's make an examination of those to private owners. The reasons were explore options to get back into a reasons again but this time as they many. Some valid,others not. Their business previously sold. relate to today's reality today's contention "good employees are hard to These councils have seen the light! changing times. get and keep. . .having both a liquor . We congratulate them. They have Reason(1): Control Underage store and a police department is realized that you don't.kill the goose drinking and DWI's are probably the somewhat contradictory . . .there have that lays the golden egg. two most important and publicized been problems with minors . . . there is issues facing the liquor industry today. a problem with checks. . .auditing, Although there is no single solution,a figuring and keeping records is costly majority of the responsibility for and timeconsuming all for a seemingly =T preventing these incidents has been small profit. , hr:, _..,.,, placed on the liquor store operator. In analyzing the situation,several ��(MBA r As it was in the past,communities are questions must be asked: �irll�ll�� realizing municipal stores do the best (a)By closing the store,will its sale MtNNESarAMUNICU�tL job of policing their outlets. generate,as in one community's B VERrGE nssOC►nrrory We are not saying or implying that all situation,$32,000/year($320,000 over private liquor outlets do a bad job ten years) profit in license fees and , concerning excess alcohol sales. taxes? It's doubtful... However,government alcohol (b)Are not good employees also • MLTNICTPAI.T.IOIJOR S t'ORES 14