Monday night’s regular monthly council meeting in Balaton saw the official approval of an EDA loan to keep the municipal liquor store operational.
At a special meeting on Jan. 12, it was decided the EDA would loan the store up to $30,000. The store is currently operating at a $4,000 loss, although profits have seen some variability over the past five years.
A representative from the Minnesota Municipal Beverage Association (MMBA) had been in communication with the city after seeing the liquor store needed a loan to remain operational.
The organization represents cities across the state that own and operate municipal liquor stores. MMBA Executive Director Paul Kaspszak travelled from Minneapolis after being asked to come speak at the meeting and inform the council of potential cost-cutting options. Gross profit is currently below state average, Kaspszak said, meaning that the store needs to purchase items at a lower cost or raise prices.
BALATON
continued on page 3 Brenda Visnovec, a consultant for MMBA, and Eric Luther, who works at Tall Grass Liquor in Marshall and serves on the MMBA Board of Directors, met with liquor store manager Ashley Haroldson last week. At Monday’s meeting, Haroldson stated that some things have already been changed, such as a small increase in on-sale prices, and that she is willing to work with MMBA and take their suggestions into account.
The first and biggest change suggested by Kaspszak was already approved with a motion by the council. The store is currently insured through the League of Minnesota Cities, and the premium sits at $11,288 total for both on-sale and offsale. Prior to the meeting, Kaspszak notified Balaton City Clerk Stephanie Fricke about another company, Illinois Casualty, that has an annual premium of only $2,307.
“It’s a quick $8,000 savings.” Kaspszak said. “And I can vouch for them; there’s about 40 other cities that are using Illinois Casualty.”
The insurance premium has already been paid to the League for this year, but the City will be refunded as soon as the League is contacted about the insurance switch.
Kaspszak also recommended consistent communication between Haroldson and the council, which has already been implemented. Per terms of the loan, the liquor store committee (council members Dylan Fricke and Tracy McCloud) and EDA reps will meet monthly with Haroldson to discuss store financials.
Improving product selection and fixing some technology and inventory issues were also things Kaspszak said should lead to an increase in profits.
In other business Monday … • Following up from previous meetings, Fricke reported the owner of the potentially dangerous dog received and signed the council’s letter outlining what must be done (microchipping the animal and updating vaccinations). The owner has 14 days to comply and show proof of compliance, or will otherwise be reported to the sheriff’s office.
• Fire Chief Kasey Holm informed the council that within the next few years another fire engine will need to be replaced. Holm said that it may be possible to purchase one rescue pumper to replace two currently operating vehicles. Both trucks are over a decade old, and the new rescue pumper could perform all the capabilities of the two engines. Replacing two engines with one would still comply with all laws and regulations, Holm assured the council.
• EDA representative Mike Wahl shared good news regarding a potential housing grant. The Housing Partnership is looking to buy three lots and build three new homes in Balaton. The plans are yet to be official, but Wahl said things are looking “pretty positive.”
• City Hall will be closed on Feb. 16 in honor of President’s Day.
