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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 the Montgomery County Government.

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Budget Overview

The total approved FY24 Operating Budget for the Alcohol Beverage Services is $70,739,577, an increase of $2,473,709 or 3.62 percent from the FY23 Approved Budget of $68,265,868. Personnel Costs comprise 61.20 percent of the budget for 341 full-time position(s) and 130 part-time position(s), and a total of 428.70 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 38.80 percent of the FY24 budget.

In FY24, Alcohol Beverage Services will transfer $34.6 million to the General Fund and make $8.7 million in debt service payments on Liquor Control Revenue Bonds for a total contribution of $43.3 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 FY23 estimates reflect funding based on the FY23 approved budget. The FY24 and FY25 figures are performance targets based on the FY24 approved budget and funding for comparable service levels in FY25.

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Initiatives

  • expand its potential by adding services such as

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Innovations and Productivity Improvements

  • Expanded business education through virtual trainings.

  • Initiated business outreach to assist with restaurant recovery.
  • ABS partnered with multiple brands to introduce and support minority- and female-owned products.
  • As supply chain disruptions and product shortages plagued the alcohol industry, ABS introduced a "similar products" feature on iStore to help licensed retailers find suitable alternatives, which resulted in many customers discovering new favorites.
  • ABS trained license holders and their employees in the safe sale and service of alcohol through its Alcohol Law Education Regulatory Training program.
  • ABS helped local businesses get a foothold in the market through its 26 retail stores. By dramatically increasing the locally produced beer, wine, and spirits in its inventory, ABS helped small businesses thrive during a difficult time.
  • Residents and license holders gained equitable and transparent access to highly allocated products (HAL) through the Department's updated HAL program.

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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  Marketing

This program leads the marketing efforts for the department, including design and branding, advertising, internal and external communications, events, and promotions....

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Budget Trends
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Program Contacts

Contact Courtney Orsini of the Alcohol Beverage Services at 240.777.1921 or Abdul Rauf of the Office of Management and Budget at 240.777.2766 for more information regarding this department's operating budget.

Related Links
Budget Summary
TitleActual
FY22
Budget
FY23
Estimate
FY23
Approved
FY24
%Chg
Bud/App
LIQUOR CONTROL
EXPENDITURES
Salaries and Wages27607187.0029147659.00 27773849.00 32200207.0010.5
Employee Benefits9204211.0010023992.00 9218992.00 11094710.0010.7
Liquor Control Personnel Costs36811398.0039171651.00 36992841.00 43294917.0010.5
Operating Expenses21060727.0019112477.00 21064457.00 18690270.00-2.2
Capital Outlay354282.001120800.00 1120800.00 100800.00-91.0
Debt Service Other8235358.008860940.00 8860940.00 8653590.00-2.3
Liquor Control Expenditures66461765.0068265868.00 68039038.00 70739577.003.6
PERSONNEL
Full-Time332.00334.00 334.00 341.002.1
Part-Time130.00127.00 127.00 130.002.4
FTEs443.80428.80 428.80 428.700.0
REVENUES
Liquor Licenses3311039.001206955.00 1206955.00 1206955.000.0
Other Licenses/Permits77825.00117600.00 117600.00 117600.000.0
Other Charges/Fees17161.0023887.00 23887.00 23887.000.0
Other Fines/Forfeitures140100.0063383.00 63383.00 63383.000.0
Liquor Sales99972839.0099051469.00 99320520.00 101306930.002.3
Miscellaneous Revenues336209.000.00 0.00 809235.000.0
Investment Income16596.0070380.00 390110.00 616390.00775.8
Bag Tax7245.000.00 0.00 0.000.0
Liquor Control Revenues103879014.00100533674.00 101122455.00 104144380.003.6
 
GRANT FUND - MCG
EXPENDITURES
Salaries and Wages72.000.00 0.00 0.000.0
Employee Benefits5.000.00 0.00 0.000.0
Grant Fund - MCG Personnel Costs77.000.00 0.00 0.000.0
Grant Fund - MCG Expenditures77.000.00 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 Expenditures66461842.0068265868.00 68039038.00 70739577.003.6
Total Full-Time Positions332.00334.00 334.00 341.002.1
Total Part-Time Positions130.00127.00 127.00 130.002.4
Total FTEs443.80428.80 428.80 428.700.0
Total Revenues103879014.00100533674.00 101122455.00 104144380.003.6
FY24 Approved Changes
TitleExpendituresFTEs
LIQUOR CONTROL
FY23 ORIGINAL APPROPRIATION68265868428.80
Changes (with service impacts)
Enhance: New Gaithersburg Store [Retail Sales Operations]6716878.50
Other Adjustments (with no service impacts)
Increase Cost: Annualization of FY23 Compensation Increases22741000.00
Increase Cost: FY24 Compensation Adjustment18596550.00
Increase Cost: Credit Card Fees [Retail Sales Operations]9500000.00
Increase Cost: Retail Store Leases [Retail Sales Operations]4833310.00
Increase Cost: Motor Pool Adjustment3265000.00
Increase Cost: IT and Point-Of-Sale System [Administration]2917950.00
Technical Adj: IT contracts [Administration]2431780.00
Increase Cost: Risk Management Adjustment701480.00
Increase Cost: Position Reclassification [Retail Sales Operations]574891.00
Increase Cost: Printing and Mail76210.00
Decrease Cost: Conversion of Clerks Positions from Part-Time to Flex-Time [Retail Sales Operations]0-9.60
Decrease Cost: Retirement Adjustment-469060.00
Decrease Cost: Debt Service [Administration]-2073500.00
Decrease Cost: Annualization of FY23 Personnel Costs-6927590.00
Decrease Cost: Elimination of One-Time Items Approved in FY23-38147800.00
FY24 APPROVED70739577428.70
Program Summary
Program NameFY23 APPR
Expenditures
FY23 APPR
FTEs
FY24 APPR
Expenditures
FY24 APPR
FTEs
Administration1451842824.201593868129.20
Delivery Operations693709376.23772859174.00
Licensure, Regulation and Education189972610.39223261812.39
Marketing6708672.0000.00
Retail Sales Operations33132402216.9833736344211.78
Warehouse Operations1110735299.0011103343101.33
Total68265868428.8070739577428.70
Funding Parameter Items ($000s)
TitleFY24FY25FY26FY27FY28FY29
LIQUOR CONTROL
EXPENDITURES
FY24 Approved70740.00000070740.00000070740.00000070740.00000070740.00000070740.000000
No inflation or compensation change is included in outyear projections.
Annualization of Positions Approved in FY240.00000053.00000053.00000053.00000053.00000053.000000
New positions in the FY24 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 Service0.000000-62.000000-352.0000001587.000000-2.000000-5.000000
Debt service estimates include Liquor Control Revenue Bonds, Master Lease Agreements for Forklifts, Delivery Trucks, and ERP system.
Labor Contracts0.0000001267.0000001267.0000001267.0000001267.0000001267.000000
These figures represent the estimated annualized cost of general wage adjustments, service increments, and other negotiated items.
Subtotal Expenditures70740.00000071998.00000071708.00000073647.00000072058.00000072055.000000