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2015 Annual Report • Finance Department • St. Anthony Village, Minnesota <br /> <br /> <br /> <br />17 <br /> <br />REBASED USE OF LIQUOR PROFITS - MAINTAIN STRUCTURIAL BALANCE <br />As demonstrated in graph below the City owned Saint Anthony Wines and Spirits liquor stores <br />have seen month to month sales declines over the past 2-3 years. During 2014 the Liquor stores <br />faced added competition in the local market along with loss of traffic due to the relocation of a <br />major tenant in the Silver Lake Village shopping area. <br />Fortunately, the City had an established cash flow model related to liquor operations which <br />guided the annual use of Liquor profits in order to maintain a reasonable level of working <br />capital for the stores. <br />In 2015 due to the duel factors cited above the City rebased its current and future use of liquor <br />profits to recognize the present marketplace dynamics. The cost of this rebasing was offset by the <br />use of one-time fees and fund balance, thereby phasing in the impact to the overall levy. <br />Since that restructuring the trend in sales has started back up. The rebasing achieved its goal of <br />maintaining structural balanced fund for 2015 and 2016. Preparation of the 2017 budget in 2016 <br />will factor in any notable trend in sales. <br /> <br /> <br /> <br />$100,000 <br />$200,000 <br />$300,000 <br />$400,000 <br />$500,000 <br />$600,000 <br />$700,000 <br />$800,000 <br />Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec <br />Total Sales <br />2012 2013 2014 2015 2015 Trend