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Mission Statement

The mission of Alcohol Beverage Services (ABS) is to provide licensing, wholesale and retail sales of beverage alcohol products, enforcement, and effective education and training programs, while promoting moderation and responsible behavior in all phases of distribution and consumption. The department diligently promotes, enforces, and obeys all laws and regulations governing beverage alcohol while generating revenue for the benefit of Montgomery County's General Fund. The department strives to provide its customers with the added benefits inherent in the oversight provided by Montgomery County Government.

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Budget Overview

The total recommended FY26 Operating Budget for the Alcohol Beverage Services is $77,951,615, an increase of $3,346,962 or 4.49 percent from the FY25 Approved Budget of $74,604,653. Personnel Costs comprise 63.68 percent of the budget for 350 full-time position(s) and 117 part-time position(s), and a total of 433.30 FTEs. Total FTEs may include seasonal or temporary positions and may also reflect workforce charged to or from other departments or funds. Operating Expenses account for the remaining 36.32 percent of the FY26 budget.

In FY26, Alcohol Beverage Services will transfer $19.6 million to the General Fund and make $8.7 million in debt service payments on Liquor Control Revenue Bonds for a total contribution of $28.3 million.

The above projections and proposed expenditures form the basis for working capital decisions concerning the ABS Enterprise Fund. The following information is provided to facilitate County Council and public input for final County Executive decisions on the determination of adequate working capital within, and use of resources in, the Liquor Enterprise Fund and net proceeds to be deposited to the General Fund. Consistent with Article 2B, Section 15-207, the County Executive must make resource allocation decisions for the Fund.

In addition, this department's Capital Improvements Program (CIP) requires Current Revenue funding.

County Priority Outcomes

While this program area supports all eight of the County Result Areas, the following are emphasized:

  • A Growing Economy
  • A Greener County
  • Safe Neighborhoods
  • Effective, Sustainable Government

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Program Performance Measures

Performance measures for this department are included below (where applicable), with multi-program measures displayed at the front of this section and program-specific measures shown with the relevant program. The FY25 estimates reflect funding based on the FY25 approved budget. The FY26 and FY27 figures are performance targets based on the FY26 recommended budget and funding for comparable service levels in FY27.

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Initiatives

  • Open three new store locations, with updated and enhanced shopping environments, while proceeding with scheduled renovations to existing properties, in conjunction with landlord funded tenant improvement dollars.
  • Extend the newly implemented keg and specials picking process to the customer pickup window to minimize paper usage and enhance operational efficiency.
  • Upgrade the current conveyor system to enhance operational efficiencies, including increased productivity and reduced product breakage. This upgrade will also contribute to lowering employee injuries and minimizing overtime, creating a safer and more efficient work environment.
  • Develop a lifting technique training program aimed at reducing workplace injuries as part of the employee wellness initiative. This program will equip employees with proper lifting practices, promoting safety and long-term well-being in the workplace.
  • Enhance warehouse safety by mandating that all visitors and non-warehouse personnel wear safety vests. Additionally, increasing the number of safety lights on forklifts will contribute to reducing incidents, accidents, and near misses.

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Innovations and Productivity Improvements

  • Introduced a new podcast series, Spirited Discussions: A Podcast by Montgomery County Alcohol Beverage Services, to help residents and businesses understand alcohol products, trends, and policies in Montgomery County.
  • Optimized the keg and specials picking process by transitioning from paper-based methods to iPads. This shift has significantly reduced the time required for picking kegs and special items, while enhancing order fulfillment accuracy.
  • Implemented pre-shift stretching routines to reduce workplace injuries, promoting a safer and healthier environment for the workforce.

Program Descriptions

  Warehouse Operations

This program involves management of the County's beverage alcohol warehouse and includes the purchase, receipt, and storage of different stock and special order items....

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  Delivery Operations

This program includes the distribution of distilled spirits, wine, and beer to licensed establishments and County retail stores....

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  Retail Sales Operations

This program oversees sales of distilled spirits, wine, and beer to retail customers and licensees through the operation of retail stores that are located throughout Montgomery County....

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  Administration

The Administration Program provides comprehensive leadership for the department including strategic planning, policy development and implementation, accountability, maintenance of partnerships with non-governmental service providers, and human resource management. This program also provides all accounting, financial, procurement, and information technology services for the department. Finance and accounting staff perform special analyses,...

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  Licensure, Regulation and Education

This program includes issuance of beverage alcohol licenses; inspecting and investigating licensed facilities to ensure compliance with all applicable laws, rules, and regulations; and serving as support staff and providing expert testimony at hearings for issuance, fining, suspension, or revocation of licenses. This program also encompasses community partnerships by defining...

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Budget Trends
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Program Contacts

Contact John Utermohle of the Alcohol Beverage Services at 240-777-1929 or Eva Acevedo of the Office of Management and Budget at 240-777-2763 for more information regarding this department's operating budget.

Related Links
Budget Summary
TitleActual
FY24
Budget
FY25
Estimate
FY25
Recommended
FY26
%Chg
Bud/Rec
LIQUOR CONTROL
EXPENDITURES
Salaries and Wages32467057.0034999290.00 35351100.00 36433306.004.1
Employee Benefits10515384.0011986007.00 11829465.00 13206177.0010.2
Liquor Control Personnel Costs42982441.0046985297.00 47180565.00 49639483.005.6
Operating Expenses20533435.0018927066.00 18823874.00 19544942.003.3
Capital Outlay214576.00100800.00 0.00 100800.000.0
Debt Service GO Bonds8242690.000.00 0.00 0.000.0
Debt Service Other0.008591490.00 8591490.00 8666390.000.9
Liquor Control Expenditures71973142.0074604653.00 74595929.00 77951615.004.5
PERSONNEL
Full-Time341.00347.00 347.00 350.000.9
Part-Time130.00121.00 121.00 117.00-3.3
FTEs428.70432.30 432.30 433.300.2
REVENUES
Liquor Licenses1867286.001206955.00 1206955.00 1206955.000.0
Other Licenses/Permits65820.00117600.00 117600.00 117600.000.0
Other Charges/Fees15440.0023887.00 23887.00 23887.000.0
Other Fines/Forfeitures59915.0063383.00 63383.00 63383.000.0
Liquor Sales100426892.00102583645.00 99818282.00 99818282.00-2.7
Miscellaneous Revenues430620.000.00 0.00 0.000.0
Investment Income574311.00312920.00 521130.00 438850.0040.2
Bag Tax7478.000.00 0.00 0.000.0
Health Inspection: Restaurants-9632.000.00 0.00 0.000.0
Liquor Control Revenues103438130.00104308390.00 101751237.00 101668957.00-2.5
 
GRANT FUND - MCG
EXPENDITURES
Salaries and Wages0.000.00 0.00 0.000.0
Employee Benefits0.000.00 0.00 0.000.0
Grant Fund - MCG Personnel Costs0.000.00 0.00 0.000.0
Grant Fund - MCG Expenditures0.000.00 0.00 0.000.0
PERSONNEL
Full-Time0.000.00 0.00 0.000.0
Part-Time0.000.00 0.00 0.000.0
FTEs0.000.00 0.00 0.000.0
Grant Fund - MCG Revenues0.000.00 0.00 0.000.0
 
DEPARTMENT TOTALS
Total Expenditures71973142.0074604653.00 74595929.00 77951615.004.5
Total Full-Time Positions341.00347.00 347.00 350.000.9
Total Part-Time Positions130.00121.00 121.00 117.00-3.3
Total FTEs428.70432.30 432.30 433.300.2
Total Revenues103438130.00104308390.00 101751237.00 101668957.00-2.5
FY26 Recommended Changes
TitleExpendituresFTEs
LIQUOR CONTROL
FY25 ORIGINAL APPROPRIATION74604653432.30
Other Adjustments (with no service impacts)
Increase Cost: FY26 Compensation Adjustment23408420.00
Increase Cost: Annualization of FY25 Compensation Increases9632500.00
Increase Cost: Microsoft License Chargeback [Administration]4619470.00
Re-align: Four Supply Technician Positions [Warehouse Operations]3401514.00
Increase Cost: Motor Pool Adjustment2986060.00
Increase Cost: Retirement Adjustment1349460.00
Increase Cost: Salary Equity Adjustment1230910.00
Increase Cost: Debt Service [Administration]749000.00
Increase Cost: Printing and Mail Adjustment508980.00
Increase Cost: Retail Store Leases [Retail Sales Operations]117940.00
Increase Cost: IT and POS Contracts [Administration]20830.00
Decrease Cost: Risk Management Adjustment-74520.00
Decrease Cost: Elimination of One-Time Items Approved in FY25-2020000.00
Decrease Cost: Annualization of FY25 Personnel Costs-3186160.00
Re-align: Five Liquor Store Positions (1 FT and 4 PT) [Retail Sales Operations]-335300-3.00
Decrease Cost: Lapse Adjustment [Retail Sales Operations]-5921780.00
FY26 RECOMMENDED77951615433.30
Program Summary
Program NameFY25 APPR
Expenditures
FY25 APPR
FTEs
FY26 REC
Expenditures
FY26 REC
FTEs
Administration1851823644.301929094345.80
Delivery Operations805115474.00827520774.00
Licensure, Regulation and Education241607213.39265249613.39
Retail Sales Operations34824596206.7835871987202.28
Warehouse Operations1079459593.831186098297.83
Total74604653432.3077951615433.30
Funding Parameter Items ($000s)
TitleFY26FY27FY28FY29FY30FY31
LIQUOR CONTROL
EXPENDITURES
FY26 Recommended77952.00000077952.00000077952.00000077952.00000077952.00000077952.000000
No inflation or compensation change is included in outyear projections.
Debt Service0.0000001854.0000001852.0000001857.000000-1801.000000-1800.000000
Debt service estimates include Liquor Control Revenue Bonds, Master Lease Agreements for Forklifts, Delivery Trucks, and ERP system.
IT and POS0.000000-110.000000-43.000000-122.000000-126.000000-126.000000
The implementation costs of new software and other technologies, including a new Point of Sale (POS) system, eliminated from the base in the outyears.
Retail Store Leases0.00000055.000000296.000000544.000000799.000000799.000000
The leases for retail stores are based on average annual increases per lease agreement.
Labor Contracts0.000000328.000000328.000000328.000000328.000000328.000000
These figures represent the estimated annualized cost of general wage adjustments, service increments, and other negotiated items.
Subtotal Expenditures77952.00000080079.00000080385.00000080559.00000077152.00000077153.000000
Additional Documentation

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