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City Council Regular Meeting Minutes February 28, 2023 Page 3 VI. GENERAL BUSINESS OF COUNCIL. A. Liquor Operations Annual Report. 6 Liquor Manager Mike Larson presented the Liquor Operations Annual Report for 2022. There 7 are two convenient locations at Silver Lake Village and Marketplace. Mr. Larson reviewed the 8 Mission and Vision Statements. Mr. Larson introduced other Liquor Operations staff that were 9 present at the meeting (Josh, Holly, and Bill). He explained the value of municipal liquor 10 operations, and the value of St. Anthony Village Wine and Spirits. Charts showing the Sales and 11 Profit Comparison 2022-2021, 5-year profit history, and 10-year profit history. Benchmarks and 12 Comparisons including Inventory Turn Ratio, Inventory Value, Labor Costs, Total Operating 13 Expense, Physical Inventory Adjustments. According to the 2021 State Auditors Report St. 14 Anthony Village Wine and Spirits ranked 14' in the State in total sales, and 10a in net profits of 15 18 metro operations. There are 177 cities operating 212 stores. It was noted that 100% of the 16 profits go into the City's General Fund. 17 18 Current conditions include Open 7 days a week, regular store hours; Increasing product 19 availability; Continued delivery/supply chain issues; Rising product costs; and Resuming 20 Sampling events. Mr. Larson reviewed plans for the future for the stores. 21 22 In 2023 the Municipal Liquor Operation will be celebrating 75 Years of Public Service. There 23 have been 1.5 Million Transactions in the last five years. The website has updates on events, 24 monthly specials, news & updates, product requests, store hours and contact information for the 25 Liquor Operations. 26 27 Councilmember Randle asked about the bottle and can deposit. Mr. Larson stated a bill has been 28 presented to the Legislature for a bottle and can deposit. This presents a problem for customers 29 returning bottles and cans to stores. Mr. Larson is monitoring the situation closely. 30 31 Councilmember Webster thanked Mr. Larson for the overview. She appreciated him identifying 32 the purpose and she appreciates how helpful the employees are when she is in one of the stores. 33 She asked about the staffing situation and whether there were unfilled openings. Mr. Larson 34 stated during the last half of 2022 they were short-staffed. They are currently receiving a lot of 35 applications for positions. She is looking forward to the tour. 36 37 Councilmember Walker stated he makes purchases from either location and the staff is very 38 professional. He asked Mr. Larson if sales will be increasing in 2023. Mr. Larson stated they 39 have the opportunity to maintain a higher level of profits than 2014. It is difficult to say what 40 will take place. Some product costs are tapering. He is more concerned about road construction 41 this year. 42 43 Councilmember Jenson stated it looks like there is some relation of controls and cost of goods 44 sold. Net profits did increase and it appears to be at a steady incline which shows you have a 45 good operation and employees. 46