Patricia Anderson, Minnesota State Auditor
Each year the Office of the State Auditor releases a report on the financial conditions of the state’s municipal liquor operations. The report is based on information submitted to the Office of the State Auditor by cities. The report released this week is for 2002 financials. Yes, 2002. There is a bit of a time lag with this report.
We have a municipal liquor enterprise in Eden Prairie. I have discussed it many times in this blog. The City of Eden Prairie operates three liquor stores. The profits from these liquor stores are used for the benefit of our citizens. We use 100% of the profits from our municpal liquor operations to fund capital improvements in our community. In 2003, we generated $689,982 in liquor profits for capital improvements in Eden Prairie. In 2004, we are projecting that profit number to be $746,930.
A capital improvement is a new park shleter or a new outdoor hockey rink or a new trail. If we did not have liquor profits for this purpose, we would either not do a particular project, or do it and raise taxes to pay for it. In the end, the liquor profits end up being a tax relief program.
Eden Prairie’s liquor operations are an important source of revenue for the City government. Without this revenue source, our City would have a lower quality of life or higher tax rates or both.
You decide……..
