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III . PROFITABILITY OF MUNICIPAL OPERATIONS <br /> • The City of Coon Rapids has operated municipal off-sale <br /> stores for over 30 yers and has greatly benefited from <br /> the transfer of profits from the stores to its General <br /> Fund. <br /> In 1986 , the sale of wine accounted for 16% of our total <br /> sales of $3 , 178 ,000 . <br /> ° Sale of wine accounted for 23. 4% of the total gross pro- <br /> fit of $534 , 000 . <br /> ° More importantly, sale of wine accounted for 67. 6% of <br /> our net income of $78, 446. $53,000 of this net income <br /> was generated by the sale of wine. (Chart ) <br /> • <br /> The Municipal Liquor Stores Association has distributed <br /> a fact sheet which cites studies that indicate in market <br /> where, grocery stores can sell wine, they average nearly <br /> 70% of all wine sales in the market place. <br /> ° Passage of this bill would severely affect the profita- <br /> bility of our stores . <br /> ° The State Legislature has severely restricted the abi- <br /> lity of local governments to find alternative revenue <br /> sources to the regressive property tax. <br /> ° This .bill would take away one of local governments <br /> • remaining non-tax revenue sources and add yet another <br /> burden to property taxes for our citizens . <br />