The State Auditor conducts an annual review of the profitability of municipal liquor stores each year. They do this as part of their “watch-dog” role over local governments. They want citizens to know if their local municipal liquor stores are losing money or are creating a drain on local property taxes, instead of creating additional revenue for their owners.

I’ve copied in an article from today’s Star Tribune about that annual study. There are several municipal liquor stores that are losing money. In Eden Prairie, however, our municipal liquor store operation was rated #1 in the state in terms of net profit in 2006 - the latest year for which the state has complete data. Our Return on Investment (ROI) in 2006 was 10.47%. In 2005 it was 10.42%. In 2007 it was 10.5%. We’re looking forward to a healthy 2008.

Liquor profits in Eden Prairie go right back into the community via our Capital Improvements Program. The money goes for such things as parks, sidewalks, trails, streets and other public improvements that we would otherwise have to tax our citizens for, or just not do.

Here’s the article. Congratulations to our fine staff who run a first class operation!

Municipal liquor stores made $20 million in 2006

According to a state auditor’s report, 44 cities that operate municipal liquor operations across the state lost money in 2006, including four communities in the metro area - Robbinsdale, Mound, Shorewood and Farmington.

THE LATEST: Minnesota cities that operate municipal liquor stores collectively had record sales for the 11th consecutive year and turned a net profit of $20 million in 2006, according to a report recently released by the state auditor’s office.