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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 recommended FY20 Operating Budget for the Department of Liquor Control is $64,195,876, an increase of $205,425 or 0.32 percent from the FY19 Approved Budget of $63,990,451. Personnel Costs comprise 56.48 percent of the budget for 302 full-time position(s) and 138 part-time position(s), and a total of 427.70 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 43.52 percent of the FY20 budget.

In FY20, DLC will transfer $28.4 million to the General Fund and make $9.3 million in debt service payments on Liquor Control Revenue Bonds for a total contribution of $37.7 million.

The above projections and proposed 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.

County Priority Outcomes

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

  • A Greener County
  • Effective, Sustainable Government
  • Safe Neighborhoods
  • A Growing 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 FY19 estimates reflect funding based on the FY19 approved budget. The FY20 and FY21 figures are performance targets based on the FY20 recommended budget and funding for comparable service levels in FY21.

Accomplishments

  • Hired a Chief of Retail Operations with a strong record of retail management experience as well as a diverse background in building sales, improving customer experiences, and staff development and training.
  • Completed County retail store resets to provide customized product selection and shelf placement.
  • Awarded the NACo Achievement Awards during FY18 for four programs including:

    • "I Take it Personally Campaign" in the category of Public Safety
    • "Pre-Licensing Program" in the category of Economic Development
    • "Automated Lottery Program for Allocated Spirits" in the category of Information Technology
    • "Online Special Event Licenses" in the category of Information Technology

  • Awarded the 2018 National Best Practices Award from trade magazine StateWays for the "Best Alcohol Distribution Innovation" within control states in the U.S. and Canada.

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Initiatives

  • Expand marketing and outreach efforts to promote many of the existing features of DLC services.
  • Enhance store operations by renovating select stores, piloting new store concepts, and implementing a retail training program.

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Innovations and Productivity Improvements

  • Implemented data analysis, and decision making .

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Collaboration and Partnerships

"I Take it Personally" Campaign

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 and leads the marketing and public relations efforts....

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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
FY18
Budget
FY19
Estimate
FY19
Recommended
FY20
%Chg
Bud/Rec
LIQUOR CONTROL
EXPENDITURES
Salaries and Wages27035265.0025293311.00 25990290.00 26252497.003.8
Employee Benefits8993213.009663233.00 9227332.00 10006689.003.6
Liquor Control Personnel Costs36028478.0034956544.00 35217622.00 36259186.003.7
Operating Expenses21064981.0017136826.00 17495557.00 17235209.000.6
Capital Outlay969455.00521681.00 162281.00 1436681.00175.4
Debt Service Other9914805.0011375400.00 10829500.00 9264800.00-18.6
Liquor Control Expenditures67977719.0063990451.00 63704960.00 64195876.000.3
PERSONNEL
Full-Time305.00307.00 307.00 302.00-1.6
Part-Time143.00148.00 148.00 138.00-6.8
FTEs438.20442.20 442.20 427.70-3.3
REVENUES
Bag Tax7213.000.00 0.00 0.000.0
Investment Income50539.00183160.00 38870.00 41410.00-77.4
Liquor Licenses1706715.001570197.00 1669222.00 1732993.0010.4
Liquor Sales88700748.0089558487.00 86069396.00 90446885.001.0
Miscellaneous Revenues232643.000.00 0.00 0.000.0
Other Charges/Fees22091.008740.00 22959.00 23418.00167.9
Other Fines/Forfeitures225926.00220560.00 316916.00 316916.0043.7
Other Licenses/Permits72000.00156000.00 156000.00 159229.002.1
Liquor Control Revenues91017875.0091697144.00 88273363.00 92720851.001.1
 
GRANT FUND - MCG
EXPENDITURES
Salaries and Wages5557.000.00 0.00 0.000.0
Employee Benefits860.000.00 0.00 0.000.0
Grant Fund - MCG Personnel Costs6417.000.00 0.00 0.000.0
Operating Expenses77036.000.00 0.00 0.000.0
Grant Fund - MCG Expenditures83453.000.00 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
Miscellaneous Revenues76699.000.00 0.00 0.000.0
Other Intergovernmental-125.000.00 0.00 0.000.0
State Grants10000.000.00 0.00 0.000.0
Grant Fund - MCG Revenues86574.000.00 0.00 0.000.0
 
DEPARTMENT TOTALS
Total Expenditures68061172.0063990451.00 63704960.00 64195876.000.3
Total Full-Time Positions305.00307.00 307.00 302.00-1.6
Total Part-Time Positions143.00148.00 148.00 138.00-6.8
Total FTEs438.20442.20 442.20 427.70-3.3
Total Revenues91104449.0091697144.00 88273363.00 92720851.001.1
FY20 Recommended Changes
TitleExpendituresFTEs
LIQUOR CONTROL
FY19 ORIGINAL APPROPRIATION63990451442.20
Changes (with service impacts)
Enhance: Operational Improvements21106004.00
Other Adjustments (with no service impacts)
Increase Cost: FY20 Compensation Adjustment13427690.00
Increase Cost: Restore One-Time Lapse Increase4581160.00
Increase Cost: Restore One-Time Reduction in Operating Expenses2500000.00
Increase Cost: Annualization of FY19 Personnel Costs2258500.00
Increase Cost: Risk Management Adjustment861440.00
Increase Cost: IT Systems and Point of Sale (POS) [Administration]672970.00
Increase Cost: Retirement Adjustment595410.00
Decrease Cost: Retail Store Leases [Retail Sales Operations]-487170.00
Decrease Cost: Motor Pool Adjustment-1909940.00
Decrease Cost: Finance Chargebacks [Administration]-204510-1.50
Decrease Cost: Abolish Manager I (Deputy Director) [Office of the Director]-268203-1.00
Decrease Cost: Elimination of One-Time Items Approved in FY19 [Retail Sales Operations]-4400000.00
Decrease Cost: OPEB Adjustment-5428000.00
Decrease Cost: Annualized Savings from Store Consolidation [Retail Sales Operations]-589068-16.00
Decrease Cost: Debt Service [Administration]-21106000.00
FY20 RECOMMENDED64195876427.70
Program Summary
Program NameFY19 APPR
Expenditures
FY19 APPR
FTEs
FY20 REC
Expenditures
FY20 REC
FTEs
Administration1556894822.701370794621.20
Warehouse Operations889020096.23976170197.23
Delivery Operations731204483.00719311083.00
Retail Sales Operations29001691224.8830188535210.88
Licensure, Regulation and Education181931210.39194332611.39
Office of the Director13982565.0014012584.00
Total63990451442.2064195876427.70
Future Fiscal Impacts ($000s)
TitleFY20FY21FY22FY23FY24FY25
LIQUOR CONTROL
EXPENDITURES
FY20 Recommended64196.00000064196.00000064196.00000064196.00000064196.00000064196.000000
No inflation or compensation change is included in outyear projections.
Annualization of Positions Recommended in FY200.00000070.00000070.00000070.00000070.00000070.000000
New positions in the FY20 budget are generally assumed to be filled at least two months after the fiscal year begins. Therefore, the above amounts reflect annualization of these positions in the outyears.
Debt Service0.000000912.0000001590.0000001216.0000001006.000000946.000000
Debt service estimates include Liquor Control Revenue Bonds, Master Lease Agreements for Forklifts, Delivery Trucks, and ERP system.
Retail Store Leases0.000000279.000000423.000000570.000000719.000000907.000000
The leases for retail stores based on average annual increases per lease agreements (3.0%).
Retiree Health Insurance Pre-funding0.000000-7.000000-22.000000-155.000000-248.000000-315.000000
Labor Contracts0.000000464.000000464.000000464.000000464.000000464.000000
These figures represent the estimated annualized cost of general wage adjustments, service increments, and other negotiated items.
Subtotal Expenditures64196.00000065914.00000066721.00000066361.00000066207.00000066268.000000
Annualization of Personnel Costs and FTEs
TitleFY20 Recommended FY21 Annualized
TitleExpendituresFTEsExpendituresFTEs
Staffing Changes2781474.003476844.00
Total2781474.003476844.00
Additional Documentation

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