CR 01-186 Approve A Liquor License Application For HCQ, LLC DBA Best Buy Liquor Warehouse
.
.
.
November 15, 2001
Council Report 2001-186
Approve a Liquor License Application for
HCQ, LLC DBA Best Buy Liquor Warehouse
Proposed Action
Staff recommends adoption of the following motion: Move to approve the Off-Sale
Liauor License and Tobacco Sales License applications for HCQ. LLC. dba Best Buy
Liauor Warehouse. 812 Mainstreet and the renewal of both licenses for 2002 with the
condition that the investiaation of the principals shows no reason to deny and that a
certificate of insurance showina liauor liability is submitted for both license periods.
Overview
Hayne J. Cho is in the process of selling Best Buy Liquor Warehouse to HCQ, LLC.
The principals of the corporation are Cher Pao Lo and Vivian Vu Lo. The final step in
the purchase is for HCQ, LLC to obtain a liquor license from the City of Hopkins. Best
Buy also holds a license for the sale of tobacco. Mr. Lo is applying for that also.
Because it is so close to the end of the year and staff is already processing renewals,
the application for renewal is also being brought forward at this time.
Primary Issues to Consider
. This is a routine license application
Supportina Information
. The full application is available in the City Clerk's office.
~
Financial Impact: $_700. Budgeted: Y/N N Source:
Related Documents (CIP, ERP, etc.):
Notes:
.
2002 Preliminary Levy and Budget
_~_______m_~
.
.
CHANGES IN YOUR CITY TAXES
. In 2002, the State eliminated Homestead Aid
Credit to local governments and reduced other
aids to local governments.
. These aids enabled local governments to rely
less on property taxes and keep local property
rates down.
. In 2002, local governments will either replace
state aids with taxes or eliminate some local
services.
1
.
. - -. .. - . .
HoW are taxes derived?
There are many aspects to the Minnesota
property tax system. For one, property is
taxed at different rates based upon it's type:
Residential Homestead Mobile Home
Single Family Rental Commercial/
Seasonal Recreational Seasonal
Duplex/Triplex
Apartments
Commercial/Industrial
.
The property tax system begins with the
assessment process to determine market
value. Classification rates are then applied
to the market value of a property to
determine tax capacity value.
In 2002, the classification rates have been
decreased for all properties thereby
decreasing the tax capacity value.
.
2
.
Simplified Version of Changes in our tax system
.
.
EXAMPLE
2001 2002
Market value $130,000 $130,000
Classification x 1.65% x 1.0%
Tax capacity $ 1,651
$ 1,300
2001 2002
Tax Capacity $13,451,000
City Tax Rate x 390/0
(no HACA)
$10,450,000
x 5101<<.
Taxes
$5,246,000
$5,329,000
Net tax capacity in Hopkins has decreased
21 %. To enable the city to collect
approximately the same amount of taxes,
the city tax capacity rate will increase.
3
.
What are our tax needs?
III The 2002 preliminary levy has a proposed increase in
spending of $587,000 or 9.8% increase over 2001.
. The increase is a result of $320,000 (5.4%) for wages
& benefits, which includes three new positions for the
police department. $100,000 levy for Housing and
Redevelopment, $23,000 for th~ Depot Teen Center,
$60,000 for capital and $80,000 to replace decreased
interest earnings.
.
V.Jhy do levy's go up?
. The city experiences increases in the levy through
increased spending or decreases in other revenue
sources.
. Spending may increase for several reason.
Primarily from increases in wages and benefits,
equipment costs, additional programs,
infrastructure improvements, debt etc.. .
. Decreases in other revenue sources may occur
from a slow economy, reduction in government
aids, reduced interest earnings, ect...
.
4
.
. The city may reduce its' tax levy by decreasing
costs or increasing other revenue sources.
. One way to decrease costs is through the
elimination of programs or services the city
currently provides to the citizens through taxes.
This is seriously considered throughout the budget
process.
.. Increased revenues are derived primarily from
increased fees charged for services or increases in
governmental aid.
.
2001/2002 Levv
$6,591,140
This is an increase over last
years levy of 9.8%.
The increase is a result of
reduced State aids & interest
earnings, increased
expenditures & the new HRA
levy.
The levy includes general, HRA
and debt service levies.
General Fund BudQet
$8,346,588
This is an increase over last
years budget of 7.8%.
The increase is primarily a
result of increases in
salaries and benefits,
including new positions and
final payment of the Shady
Oak Beach project.
.
5
.
Hopkins property values
. The market value
of the average
home in Hopkins
increased about
8.5% to
$133,000.
.
How much will we pay in City Taxes?
. City services are projected to cost
the average homeowner, who's
assessed value is $133,000, $53 a
month in 2002.
. Commercial properties with a value
of approximately $147,000 are
projected to pay $101 a month in
2002, for city services.
.
6
.
.
.
How much will we pay in Total Taxes?
" Total property taxes are projected to cost the
average homeowner, who's assessed value is
$133,000, $147 a month in 2002. This
includes County, School District, City and
Special Districts.
" Commercial properties with a value of
approximately $147,000 are projected to pay
$372 a month in 2002 for total property taxes.
: c:::nY,c:::QlJNIY.AJ\[I)~C:::I-IQQI,I)ISTF,J:<::I. .
....!...........;.................. .
.~TIMAI.E:I)I'~QPE~TY Ti\J{IMI'Ac;T~ .
'RESIDENTIAL PROPERTY
. ..".
: ;: ~ i i: :
..."'.n."...../.."...._..............__..,...._............___....."..............w..____,__. ......._..,...................."....'..."."......,...w_..n.".....;" w'_,..
'865%.INC~EIN(}ENERAL FUNPBlJDG:ET
$?00,179 $2,811, .. ... . c$25?!
$302,157 $4.433,
-$699' -13.6%' '$1,6W
ASSUMES A 8.5% INCREASE IN MARKET VALUE FROM 2000 TO 2001
f..)'.."................. ;......u..............__...____...,...,......................'!.."""",'-'
, ".
......., __....:....,...........,.............-',.....___........................................._....m...'............,...~............'...
. .m:.C;ity~J11!'!<es"'p:3()'Y<>{)ff\'~iclel1til'll
7
.
................................................................................................-...........................................................................,..............
.m.<:;:P:Y,<:;:QYNTIA@,..$..c::;..E:IQQ.l,P~$.IBI.c::;Tm :
....,..':_____...........__.._....,."......".........".."'."'_U_"""","',"'U"""""""""";__"""";
,; ,.
..' ..
: . . ..
. . ______u:........u........_.m.............n.....u.."....,....m.__..",..".,.....__....,.......u...._..._,..__,,__..,..-.......,.,.,.....
: 8.65% INCREASE IN GENERAL FUND BUDGET
.' "., _.. w '._ _,. do . _. __ ....0.. ,.. ... '.. '.. 'h ." -.. ....
.: ..:g~IIMAIgJ:)r~Qrg~TYTMIM!'AQI!)........
'COMMERCIAL - INDUSTRIAL PROPERTY
.$~,6.31....
... .. ~.~~?.~.~.~I
.~7,5?~:
$605,029' $24,302;
.. ...........................
$635,281 :
$19.359;
_~~~~! ] -.~9:}%j .......;......,_~~.;~.?~]
SUMI<:~A?'?/~Il'lQ~!)gIl'l~rg:i:ryA.l,1JI'I'ROM 2000 TO 20<;>1
$42.547'
-$7~873! : -15.l?~J. L~_~_'!~~~~
;$1,210,058,
.. ,.
'. '. '.:: :
. ..
. ..,.,
.. ,.
......,...----.."",..,.,..--.. "."'."'...,.--........".."..., --.....,..,......."..,-...-----......""",'.....,.....--......".--..
: City tax makes up abo.ut30% of commercial tax bill
.
.
Street and Park Maintenance
$12.35
De"
$2.70
Planning
$.55
Activity Center
$1.50
Building Maintenance
$.75
8
.
.
City Council
. Elected part-time
officials consisting of a
mayor and four council
members.
" Council establishes city
policies, goals and
objectives.
" The Council approves
the annual city budget.
(2 Annual cost to average
homeowner $ 8.98.
.
f
G Administer City business.
~ Management of human
resou rces.
~ Responsive to citizen
concerns.
o Enforcement of City Charter,
laws, policies and
resolutions.
o I nformation systems control.
e Annual cost to average
hpmeowner $32.40.
9
.
.
Governmental Fund Type Expenditures
25,000
20,000
15,000
10,000
5,000
Ye.r
. Serves in an advisory
capacity to the City
Council, Advisory Boards
and Commissions, City
Manager and City
departments.
. Responds to summons
or initiates action on
behalf of the City.
. Annual cost to average
homeowner $2.68.
.
I~
" Provides financial
management services
including capital and
debt management.
. Financial support
services to internal
departments.
. Manages the day-to-day
transactions.
" Utility billing.
. Annual cost to average
homeowner $12.09.
------l
atyLegal QSs I
$OO,CXXl
$7O,CXXl
saJ,CXXl
$5O,CXXl
$<<l,CXXl
$3J,CXXl
$2J,CXXl
$10,CXXl
$J
~~
I
I
,.. ... ... ,.. ... _ ___J
10
.
.
.
.
-~tding
. Ensures that a neat and
orderly environment is
provided for the transaction
of public business.
. Provides physical
maintenance of public
facilities through preventive
maintenance scheduling to
maximize expected life of
facilities.
. Annual cost to average
homeowner $9.20.
.
. The Hopkins Activity Center
provides Seniors, teens and
other community groups
with a location to meet for
recreation, social and other
activities.
. There are a variety of
classes offered for seniors.
. Annual cost to average
homeowner $17.96.
11
.
Community Services-
.. Inspection of buildings,
restaurants and rental
units & issues permits.
.. Appraises all properties.
.. Coordinates purchasing
.. Receptionist & council
support.
. Election process.
. Annual cost to average
homeowner $28.78.
ati-g0xE .-spectial
1!Rl 1007 1mB 11m
1.,;,-':;;::::; ~~-------~
~ I Acrs~ o QrsIn.dj01lnsp ~
.
Police
" 24 hour a day service by
responding to crimes,
traffic accidents, medical
emergencies, domestic
disputes and other
community needs.
. Crime prevention through
education.
" Annual cost to average
homeowner $246.44.
.
12
.
(I 24 hour a day service by
responding to fires, medical
emergencies, hazardous
material incidents and other
rescues.
. Teaches fire prevention and
safety.
. Emergency response
preparedness.
. Annual cost to average
homeowner $42.81.
.
.
(I Maintains and manages
more than 55 miles of
roadways, 30 miles of
alleys, 9 parking lots and
7 miles of sidewalks and
trails.
. Maintains 12 parks and
facilities.
(I Annual cost to average
homeowner $148.23
13
.
.
Recreation
. Preserves and manages
our parks system for the
enjoyment of people of
all ages and abilities.
. . Provides a wide range
of programs and
activities for the citizens
of Hopkins.
. Annual cost to average
homeowner $27.91
Planning & Zoning
. Defines the future
directions for the City
through planning
studies and zoning
controls. .
. Annual cost to
average homeowner .
$6.53.
.
14
.
.
UnaUocated--------~--
. Ensures that there is funding available in case of
unanticipated expenditures during the year.
. Supports the Depot Teen Center and Hop-a-ride.
. Allows minimal flexibility in funding special projects
during the year
. Annual cost to average homeowner $10.23
.
--Housing and-Redevelopment
. Recommends
development and
redevelopment
projects for the
City.
. Annual cost to
average
homeowner
$9.45.
15
.
. Ensures that there
is funding available
to pay principle and
interest on debt
issued by the city
for parks and
streets.
. Annual cost to
average
homeowner
$32.31.
.
6,000,000.00
5,500,000.00
5,000,000.00
4,500,000.00
4,000,000.00
3,500,000.00
3,000,000.00
2,500,000.00
2,000,000.00
1,500,000.00
1,000,000.00
500,000.00
0.00
II11111111111I1I1II11
iii G. O. Bond Principal
. Spc. Assess. Bond Principal
o Revenue Bond
Hennepin School City Special
County District of Districts Total
270 Hopkins
$593 $396 $639 $139 $1,767
34% 22% 36% 8% 100%
.
16
.
1
(L
m, !'i>,!l!l():
(80,000),
m!l,I!l()': 4.5%'
" ", :>1,,:>,9,3, ,8!',i>~i
7.740.084S;L
.
.
17
.
.
.
2002 Emposed Special Revenue Fund Revenue
Budget
omw/- , _om _._ """"""'m'm''''_mm'''''m_''''~_m,'A
[SPECIAL REVENUERJNDS'
..8m
tion 8
"""m.'u__~_w"""_",, ,,',,'n' uu"",,,,,, '
(:lI~I.l:.I.'I1lI1.l:~~e ..... m' ......... ,
,Depot Coffee House
!IA~~~i~..m...m.. .
ml:r,e.llIt!ntl.'iJ1al1l:iJ18 .
.$)
2002 Proposed' Special Revenue Fund
Expenditure Budget
'SPECIAL RE'VlNUEFUNDS
~-~T'-"~'m_'''''''''m''''''''''''m_m''''__m_m._m'*~_m,'m_''o"",,_.m.~
. 'Chemical Assess. Team 1$:
J::<:()Il()Il1i(:~Y.l:l()Plllt!llt '
Real Estate Sales
........"'................................-.
Paratrans it
Rehabilitatio
i
.mmj
....?,1~2
594
......gQQ?.;
..}OO j
..~Q,~~?..
4,?12'
. (~?,31?n -I .
1,105,066 , ?2:Q'JIc>j
..~,QZ?,148 .'. ..1Q:~'JIc>j
U..
,,~l
;
0;
.......~l
18
.
.
.
2002 Proposed ~
f'..".....
! i
;.v...L
........ """'"'''''''r'''
,
. ..........,.......
,
....,..".."..".w."...,..".._.... .........? .."...- .. .-. -. .... ;."L,,~.t ".... '. .". ""n' "":"l
!PROP~~Y .I.wi
li~l1.ip~~!.~pll1c.e. $ iw?~lJ()()Q , $ i??I?,()()Q :
1 ~
i i Water 922,000 , ,Lw?~~,()()QJ i
i ~ 'W' ,"on", .". ..w.."'.,....(,.,,.. ..".~h._..."._,._"w,....w.on i
i 1 Sanitary Sewer . i 1,539,000 1 i ! .},~gQQQL
[I~e.~~~.. . ......... ... .;~i~,iQQTTj ...m~~?'~?Q
, ,
,~!()~~e.~e.~ .. .........w;.wl... 691,000 , 'l~~??,?()()'
iLPliYil!()~/Ic.e. Arena~?!?,~()()UL..~~~,}~?J
i 1 Skate Park 67,300 1 ' 48,800
I.... """''''''''W''''h..,..,,~..",..
1.7%1
g:~~;
-~::!~!
0.3%:
-0.8%1
.~:~~i
27.5%1
1
'~?,.69~,
".... . n._...."............. n" ..__,.......... _ . .......n. ... .... ,"_,_. .__.,,"p'~_ ",'"
.... .;..,:,...t'-..
, $1:!?'/l:l?,~8.? +;
,
..1
2002 Proposed Proprietary Fund Expense Budget
19