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MUNICIPAL LIQUOR STORE FOR VICTORIA

IT’S NOT PROBABLY NOT IN THE CARDS

Continuing to pursue other sources of revenue for the City of Victoria -- revenue other than property tax dollars -- City Administrator Don Uram researched the possibility of a municipal liquor store. When cities have a municipal liquor store, private liquor stores are not allowed. In other words, Hi-5 Liquor in Victoria would be no longer. Deep Baveja, owner of Hi-5, was in attendance for the Council Workshop discussion on the topic on September 25th.

Reported the city administrator, “I want to provide information and see what the council thinks about this. I’d like to see what this could potentially mean for the city. Cities earmark the profits for things that would benefit the community. Sales range from $2 million to $5 million per year. The key is management.”

He said the administrator at the City of Lexington reported, “It’s the greatest thing the city has ever done.” Lexington, with a population of 3,000 averages $1.8 million in sales and a net income of $155,000.

Other cities, like Eden Prairie, with a population of 48,000, have sales at $4.8 million with net profit at $290,000. In a long list of cities with municipal stores, only one -- Shorewood -- was not successful.

Stated Administrator Uram, “In Victoria we have a unique opportunity. We’re kind of an island between Chanhassen and Waconia. A grocery store really generates activity. A lot of good things are happening. We’ve got 7,000 people now and we’re growing. We’re in a perfect position to talk about this.”

Said Mayor Mary Thun, “I normally don’t think government should do what private business can do. But Victoria doesn’t have a whole lot of opportunities for more funds. Mining [gravel, see p. 23] is not forever, if that would happen. The opportunity is now for many reasons. We’ve only got one liquor store now, and not three or four or five. New areas are being developed. There will be more liquor stores coming in ... It will be a while before we get significant retail. We really don’t have a lot of flexibility. I certainly think this is something we should explore.”

Councilmember Kim Roden disagreed. “I’m impressed with our city administrator, meeting some of his goals, but I’ve been doing some door knocking. Not a one person I’ve talked to wants the city to get into the liquor business. I can go through a whole lot of reasons we shouldn’t do this.”

Kim held up a large MGM color advertisement which, she said, speaks for itself.

She continued, “Frankly, I don’t want to pursue this. Every time this city has gone off mission, we’ve paid for it -- with the Field House and with the 13.5 acres.”

“We are adjacent to many competitors. I think it would send a terrible message to businesses here, that people come into town and make an investment and then we run them out of business. The fact that Parker Tannin’s failed should tell us something. I’d rather see Fresh Seasons work a partnership with Deep.’

She added, “And there are proposals before the Legislature. Pretty soon there’s going to be wine in grocery stores.”

Commented Councilmember Paulsen, “Philosophically I agree with Kim. We’re not good at management.”

Councilmember Richard Tieden pointed out that Victoria is going to be the largest community in Carver County, but meanwhile, “in the short term, we don’t have a lot of other sources for revenue.” He added that “liquor” is not a bad word. As for bad management, he said the Field House wasn’t supported when City Council membership changed.

Stated Mayor Thun, “I don’t think liquor is a bad word either. It’s one of the things in the American way of life. And we shouldn’t base our decision on management of the past. I look to the future ... But I don’t think we should spend any more time on this. There aren’t the votes.”

RECAPPING VICTORIA FIRE RELIEF

WITH COMMENDATIONS FROM COUNCIL

Jeff Nordeen, representing the Victoria Fire Relief Association, gave city councilmembers a recap of their recent audit and financials for 2007. Councilmembers commended their process and work toward 100% funding. Tim Amundsen, acknowledged the date that evening was 9/11, “Thank you for your service,” he said. “I don’t often get to see firefighters on this day.

“We’ve got a small staff,” said Jeff, “and we’ve got both our president and treasurer bonded.” In reporting that Victoria Fire Relief uses the same firm, Abdo Abdo & Eick, for drafting their financial statements as well as auditing those same financials. He suggested the Relief Association could “maybe shift to using the same auditor as the city uses.”

Stated City Administrator Don Uram, “I don’t see a major problem with you having the same firm do both functions.”

In reviewing funding levels over these past five years, Jeff pointed out that the assets were only 55% of liabilities in 2002. In 2007 assets are now 94.5% of liabilities. “They’re getting closer together,” he said. “We had lost lots of money in the stock market but now we’re 95% funded. We believe we’re way on track to reaching 100% funding.”

Assets in 2002 were $538,9090. Assets in 2007 were $793,191. The report indicated 50% equities and 50% income and fixed assets.

Firefighter Nordeen reported that four members of the Victoria Fire Department are at or above twenty years of service and have also reached the magic age of 50. “Theoretically they could be turning in their resignations any day,” he said. “One has verbally indicated he will be retiring in 2009. The financial implications are not bad at all, however.”

He said the four firefighters at retirement age have 114 combined years of service and can collect a total of $228,100 in retirement pension, or roughly, over $50,000 per firefighter.

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