1983-05-03 - Laserfiche WebLink

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I I I COUNCIL WORK SESSION May 3, 1983 Pursuant to notice thereof,a special meeting of the New Brighton City Council was held May 3, 1983, 7:00 p.m. at the north room of Brandywine, Palmer Drive. Present: Mayor Harcus, Councilmembers Benke, Blomquist, Janecek and Schmidt Absent: None Also Present: Mark Kozlak, Director of Liquor Gary Ellis, Asst. to Director Peter Marinaro, Liquor Manager Margaret Egan, Director of Finance Mayor Harcus indicated he had received a letter of resignation from the City Manager, James Fornell. Motion by Blomquist, seconded by Janecek, to accept the City Manager's resignation effective June 1, 1983. 4 Ayes - 1 Nay(Harcus) - motion carried The Liquor Director, following the attached outline, made opening remarks concerning the City's liquor operation and introduced Mr. Barry Rubin, from Sweitzer, Gottleib and Rubin Accountants. Mr. Rubin stated he had sixteen years of accounting experience as a CPA, and specializes in restaurant, bar, etc. accounting. He further stated he became involved with the City in conjunction with the State Auditor's investigation of past business practices within the liquor operation. He stated the figures needed to better judge the profitability of the operation, were not there. He stated: 1. Revenues for the entire operation have decreased by 9.7% or $38,000. 2. Purchases (a key factor in business) were down $101,000, over a three-month period, or 33.9%. 3. Infusion $101,000 cash back into the City by watching purchases. 4. Brandywine food sales were up 12% due to food and promotions at Palmer Drive. Brandywine food purchases were down 11%. Current food cost percentage at Brandywine, adjusted for employee meals and bar food promotions, was 6.6%. Mr. Rubin further explained that state wide, sales had decreased 12%, based upon the Commission of Revenue's figures.