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Mission Statement

The mission of the Department of Liquor Control (DLC) 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 with the oversight provided by the Montgomery County Government.

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Budget Overview

The total approved FY19 Operating Budget for the Department of Liquor Control is $63,990,451, a decrease of $1,170,868 or 1.80 percent from the FY18 Approved Budget of $65,161,319. Personnel Costs comprise 54.63 percent of the budget for 307 full-time position(s) and 148 part-time position(s), and a total of 442.20 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 45.37 percent of the FY19 budget.

The Department of Liquor Control began an organization-wide improvement effort in 2015 focused on customer service, retail, delivery, and warehouse operations. The approved FY19 budget reflects a continued commitment to creating a customer focused and efficient operation.

In FY19, the Department of Liquor Control will transfer $28.2 million to the General Fund and make $11.4 million in debt service payments on Liquor Control Revenue Bonds for a total contribution of $39.6 million.

The above projections and expenditures form the basis for working capital decisions concerning the Liquor 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.

Linkage to County Result Areas

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

  • Healthy and Sustainable Neighborhoods
  • A Responsive, Accountable County Government
  • Safe Streets and Secure Neighborhoods
  • Strong and Vibrant Economy

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Department 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 FY18 estimates reflect funding based on the FY18 approved budget. The FY19 and FY20 figures are performance targets based on the FY19 approved budget and funding for comparable service levels in FY20.

Accomplishments

  • Net sales for FY17 were $296.2 million. This represents growth over the previous year of $3.7 million or 1.3 percent.
  • Hired a Director with private sector experience; a Senior Marketing Officer to build a customer focused culture and improve retail programming; a Pricing Team to improve accuracy and competitiveness; and an Administrative Team to improve oversight and analysis.

  • Completed the DLC Improvement Action Plan in 2017. Progress and results were tracked through accountability meetings led by the Chief Administrative Officer and the County Executive's CountyStat Office.
  • The DLC Legislative Outreach Program received the 2017 National StateWays Best Practices Award.
  • The Licensing, Regulation, and Education Division received the 2017 National Regulator of the Year Award.

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Initiatives

  • In FY19, DLC will transfer $28.2 million to the General Fund and make $11.4 million in debt service payments on Liquor Control Revenue Bonds for a total contribution of $39.6 million.
  • Establish training programs for new employees.
  • Enhance the iStore website to improve the user experience.
  • Improve retail operations by consolidating and renovating select stores.

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Innovations and Productivity Improvements

  • Installed software to improve reporting capabilities in the Licensing, Regulation, and Education Division.
  • Implemented scanning and voice picking software to improve speed and accuracy in the DLC warehouse.
  • Replaced 16 delivery trucks to improve delivery operations and lower fleet maintenance costs.
  • Replaced contracted warehouse operations with County staff to improve internal controls.

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Collaboration and Partnerships

"I Take It Personally" Campaign

DLC and Police launched a public awareness campaign to prevent drunk driving and patron over-consumption.

Partners

Department of Police

 

Program Descriptions

  Administration

This program provides accounting, financial, personnel, and information technology services for the department. Finance and accounting staff perform special analyses, reporting, and preparation and monitoring of the department's budget. Information and technology staff provide the design, operation, maintenance, and protection of all information technology initiatives for the department. ...

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  Warehouse Operations

This program involves management of the County's beverage alcohol warehouse and includes the purchase, receipt, and storage of over 35,000 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 through the operation of retail stores that are located throughout Montgomery County....

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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, 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 issues...

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  Office of the Director

This program provides the overall direction for the Department....

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Budget Trends
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Program Contacts

Contact Courtney Orsini of the Department of Liquor Control at 240.777.1921 or Jennifer Nordin of the Office of Management and Budget at 240.777.2779 for more information regarding this department's operating budget.

Related Links
Budget Summary
TitleActual
FY17
Budget
FY18
Estimate
FY18
Approved
FY19
%Chg
Bud/App
LIQUOR CONTROL
EXPENDITURES
Salaries and Wages25120583.0025601349.00 26301192.00 25293311.00-1.2
Employee Benefits8933710.009358163.00 9020298.00 9663233.003.3
Liquor Control Personnel Costs34054293.0034959512.00 35321490.00 34956544.000.0
Operating Expenses21209193.0018470926.00 19345227.00 17136826.00-7.2
Capital Outlay3561174.00738281.00 738281.00 521681.00-29.3
Debt Service Other9909371.0010992600.00 10992600.00 11375400.003.5
Liquor Control Expenditures68734031.0065161319.00 66397598.00 63990451.00-1.8
PERSONNEL
Full-Time296.00305.00 305.00 307.000.7
Part-Time160.00143.00 143.00 148.003.5
FTEs432.42438.20 438.20 442.200.9
REVENUES
Bag Tax7693.000.00 0.00 0.000.0
Investment Income78759.0028710.00 129290.00 183160.00538.0
Liquor Licenses1848400.001570197.00 1570197.00 1570197.000.0
Liquor Sales80282178.0086212495.00 87014065.00 89558487.003.9
Miscellaneous Revenues180406.000.00 0.00 0.000.0
Other Charges/Fees17830.008740.00 8740.00 8740.000.0
Other Fines/Forfeitures218464.00220560.00 220560.00 220560.000.0
Other Licenses/Permits65400.00156000.00 156000.00 156000.000.0
Liquor Control Revenues82699130.0088196702.00 89098852.00 91697144.004.0
 
GRANT FUND - MCG
EXPENDITURES
Salaries and Wages10479.000.00 0.00 0.000.0
Employee Benefits746.000.00 0.00 0.000.0
Grant Fund - MCG Personnel Costs11225.000.00 0.00 0.000.0
Operating Expenses20801.000.00 0.00 0.000.0
Grant Fund - MCG Expenditures32026.000.00 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
REVENUES
Federal Grants3332.000.00 0.00 0.000.0
Miscellaneous Revenues-6699.000.00 0.00 0.000.0
Other Intergovernmental25000.000.00 0.00 0.000.0
Grant Fund - MCG Revenues21633.000.00 0.00 0.000.0
 
DEPARTMENT TOTALS
Total Expenditures68766057.0065161319.00 66397598.00 63990451.00-1.8
Total Full-Time Positions296.00305.00 305.00 307.000.7
Total Part-Time Positions160.00143.00 143.00 148.003.5
Total FTEs432.42438.20 438.20 442.200.9
Total Revenues82720763.0088196702.00 89098852.00 91697144.004.0
FY19 Approved Changes
TitleExpendituresFTEs
LIQUOR CONTROL
FY18 ORIGINAL APPROPRIATION65161319438.20
Changes (with service impacts)
Enhance: Retail Store Renovations [Retail Sales Operations]4400000.00
Eliminate: Consolidate Two Retail Stores [Retail Sales Operations]-12251060.00
Other Adjustments (with no service impacts)
Technical Adj: Credit Card Fees [Retail Sales Operations]22000000.00
Increase Cost: FY19 Compensation Adjustment10475710.00
Increase Cost: Debt Service [Administration]3828000.00
Increase Cost: Annualization of FY18 Personnel Costs1335820.00
Increase Cost: Motor Pool Adjustment825310.00
Increase Cost: Retail Store Leases815000.00
Increase Cost: Risk Management Adjustment217690.00
Increase Cost: OPEB Adjustment88900.00
Increase Cost: Printing and Mail21550.00
Technical Adj: Finance Chargeback [Administration]0-1.00
Decrease Cost: IT Cost Savings-40600.00
Decrease Cost: Operating Expenses [Licensure, Regulation and Education]-200000.00
Decrease Cost: Warehouse Division Overtime [Warehouse Operations]-420100.00
Decrease Cost: Eliminate Full-Time Warehouse Worker Position [Warehouse Operations]-56998-1.00
Decrease Cost: Delivery Division Overtime [Delivery Operations]-656400.00
Decrease Cost: Lapse Program Specialist I Position [Licensure, Regulation and Education]-783010.00
Decrease Cost: Contract Savings [Administration]-870000.00
Decrease Cost: Fleet Maintenance Savings [Delivery Operations]-1000000.00
Decrease Cost: Retirement Adjustment-1072700.00
Decrease Cost: Retail Division Overtime [Retail Sales Operations]-1076500.00
Decrease Cost: Lapse Sr. IT Specialist Position [Administration]-1169700.00
Decrease Cost: Utilities Savings [Warehouse Operations]-1400000.00
Decrease Cost: Misc. Operating Expense Savings-2500000.00
Decrease Cost: Eliminate Assistant Store Manager Position and Lapse Five Part-Time Clerk Positions [Retail Sales Operations]-321634-1.00
Re-align: Fleet Replacement Strategy [Delivery Operations]-5760000.00
Re-align: Mid-Year Personnel and Operating Changes-9433677.00
Decrease Cost: Elimination of One-Time Items Approved in FY18-13296600.00
FY19 APPROVED63990451442.20
Program Summary
Program NameFY18 APPR
Expenditures
FY18 APPR
FTEs
FY19 APPR
Expenditures
FY19 APPR
FTEs
Administration1597513525.701556894822.70
Warehouse Operations981967679.23889020096.23
Delivery Operations833771093.00731204483.00
Retail Sales Operations28379069227.8829001691224.88
Licensure, Regulation and Education19398639.39181931210.39
Office of the Director7098663.0013982565.00
Total65161319438.2063990451442.20
Future Fiscal Impacts ($000s)
TitleFY19FY20FY21FY22FY23FY24
LIQUOR CONTROL
EXPENDITURES
FY19 Approved63990.00000063990.00000063990.00000063990.00000063990.00000063990.000000
No inflation or compensation change is included in outyear projections.
Elimination of One-Time Items Approved in FY190.000000-440.000000-440.000000-440.000000-440.000000-440.000000
Items recommended for one-time funding in FY19, including retail store improvements, will be eliminated from the base in the outyears.
Annualized Savings from Store Consolidation0.000000-589.000000-589.000000-589.000000-589.000000-589.000000
Annualized savings from the consolidation of two stores in FY19.
Debt Service0.000000-15.000000-192.000000-335.000000-628.000000-758.000000
Debt service estimates include Liquor Control Revenue Bonds, Master Lease Agreements for Forklifts, Delivery Trucks, and ERP system.
Restore One-Time Lapse Increase0.000000458.000000458.000000458.000000458.000000458.000000
Restoration of one-time lapse adjustment in the budget development year
Retail Store Leases0.000000138.000000279.000000423.000000570.000000719.000000
The leases for retail stores based on CPI assumptions (2.0%).
Retiree Health Insurance Pre-funding0.00000025.00000032.00000044.00000044.00000044.000000
Labor Contracts0.000000551.000000551.000000551.000000551.000000551.000000
These figures represent the estimated annualized cost of general wage adjustments, service increments, and other negotiated items.
Subtotal Expenditures63990.00000064118.00000064089.00000064102.00000063956.00000063975.000000