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03/27/1961 . • • STATEMENT OF CANVASS SPECIAL ELECTION March 27, 1961 Declaration of Results Thereof In accordance with Section 4.08 of the Charter of the City of Fridley, the City Council declares the results of the 1961 Special Election to be as follows: A. The total number of ballots cast was 1327 B. The question voted upon was as follows: "SHALL THE CITY CONTINUE TO OPERATE ITS MUNICIPAL LIQUOR STORE RATHER THAN ISSUE PRIVATE LICENSES?" • C. The vote and number of defective and not voted ballots is as follows: Not Voted or Yes No Defective Ballots Total . Ward 1, Precinct 1 156 19 175 Ward 1, Precinct 2 364 29 1 394 lard 2 387 37 424 Ward 3 319 15 334 TOTAL, 1.226 100 1 1027 • D. The result of the election is declared to be that the City of Fridley shall continue to operate its Municipal Liquor Stores. E. The names of the judges of election are as follows: Ward 1, Precinct 1 Mrs. Walter Nelson Mrs. Kenneth McLellan • Mrs. Marie Hughes Mrs. Jean Ahlstrom Mrs. Arlene Peterson Mrs. Icy Borg Ward 1, Precinct 2 Mrs. Jeanne Petrangelo Mrs. Bridget L. Pearson • Mrs. Pat Loughry Mrs. Elaine Ni.en Mrs. Fern Conor Mrs. Christie Visor STATEMENT OF CANVASS Ward 2 Ere. Constance Urbick Mts. Ho J. Manley Mrs. Gertrude Leonhardt Mts. Ramona Ziegler Mrs. Sylvia Marrs Mrs. Margaret Knudson Ward 3 Mrs. W. Lo Piper Mrs. Everett Helle Mrs. Helen Milcarek Mrs. Evelyn Stone Mrs. Donna Matthews Mrs. Phyllis Millard • ;L:7 / xa YOR C. , ' • � COUWILMAN ie C r u /MAN dir lb 4Ir IMAM • FICIAL BALL T SPECIAL ELECTION CITY OF FRIDLEY, MINNESOTA MONDAY, MARCH 27, 1961 INSTRUCTIONS TO VOTERS: Voters desiring to vote in favor of the following proposition, make an (X) In the square opposite the word "YES". Voters desiring to vote against the following proposition, make an (X) in the square opposite the word "NO". NO "SHALL THE CITY CON- E] ill TINUE TO OPERATE ITS MUNICIPAL LIQUOR STORE ❑ YES RATHER THAN ISSUE PRIVATE LICENSES?" O FICIAL BALL SPECIAL ELECTION CITY OF FRIDLEY, MINNESOTA MONDAY, MARCH 27, 1961 Judge Judge 6-kktglA,L4--,, Cm CITY CLERK c Citizens of Fridley a o W • Fridley, Minnesota • SHALL THE CITY NTINUE TO OPERATE ITS HIGHLIGHTS OF ft 60 .'` w :2) — 3 Dear Citizen and Taxpayer: MUNICIPAL LIQUOR STORE RATHER THAN vi d m °r There will be an election held in the City of Fridley ISSUE PRIVATE LICENSES? m C t'- y on March 27, 1961 between the hours of 7 A.M. and 8 P.M., at your regular polling place, on the question "Shall the City Fridley residents will vote Monday, March 27, PUBLIC WORKS continue to operate its municipal liquor store rather than on whether to continue the present Fridley Munici- issue private licenses?". As your elected representatives, we feel that you should be informed about what this election pal Liquor Stores. Regular polling places will be During 1960, contracts amounting to approxi- means to open from 7 A. M. to 8 P. M. you as a taxpayer. This brochure is an attempt to P mately $2,250,000 were let, including 152,986 feet do just that. This March 27 election is required because of sewer and water line (28.9 miles) and 60,190 The ownership of liquor stores, by a municipality, Fridley's population went above 10,000 according provides your local government with the only effective means to the 1960 census. Fridley's population has been square yards of blacktop and concrete (3.42 miles). of control available. In addition to the ordinary means of certified at 15,173. control of dispensing of liquor, available to all municipal- ities, your local government, by its ownership, supervises Only communities under 10,000maystartmunici- On January 19, 1960, the Council authorized the pal liquor stores. When a community with estab- construction operation of the liquor stores in the best interests of P q uor Y construction of a Municipal well supply, and dis- the City. lished municipal liquor stores exceeds 10,000, state tribution system, of Fridley-owned water at an esti- The most important factor to you, as a taxpayer, is law requires an election to continue municipal mated cost of $2,084,000. It is expected that the the financial contribution that the municipally owned liquor operation. stores make to the operation of the City government. system will be in operation by September 1, 1961, Although these financial contributions are spelled out in and that the cost of water to Fridley residents can detail throughout this brochure, we would like to point out that in the twelve years of operation of the municipal MUNICIPAL LIQUOR STORES be reduced considerably in the future. liquor stores in the City of Fridley, these contributions have amounted to $339,495.00, and there are inventories, HISTORY cash, and other assets of $193,083.65. Estimating license fees, property taxes on private stores, and any other income Ordinance Number 26,adopted by the Fridley Coun- that could be derived from privately licensed liquor out- cil on the 23rd of September, 1949, authorized the OTHER HIGHLIGHTS lets, you will note in the brochure, that the City with establishment of a Municipal Liquor Store. private ownership would get only approximately $8,990.57 per During 1960, the City Council made arrange- year. The changeover from Municipal to Privately Owned The first Municipal Liquor Store (Off-Sale) was Liquor Outlets would mean an increase in the mill rate for opened in October, 1949. A Municipal Bar was opened ments to set up a branch library in the City of the City of Fridley of 5 to 10 mills. in conjunction with this Off-Sale store in February, _ 1950. This building is rented, and continues to operate Fridley. Said branch library was opened shortly �1110.1114" • after January 1, 1961, at 370 Mississippi Street We as your elected representatives, urge that you as Off-Sale, only, at 7361 Central Avenue N. E. " vote on the municipal liquor question on March 27, 1961. sr A second Off-Sale store was opened at 3710 East Northeast. The library is open on Mondays and r �., ,l Respectfully su mittea, River Road in November, 1953. A Municipal Bar was "'° - � opened in November, 1960, and both the Off-Sale and Thursdays from 2 —5 P. M. and 6—8:30 P. M. ,� »� All balloting win be done on y paper ballots resembling On-Sale continue in operation at 3710 East River Road. ,e1 this sample ballot. By look- or th Cit Council The City owns this building. ing over this sam le and T. E. Greig, MAYOR In cooperation with, and at the suggestion of, �" 0 understanding the question, The Shorewood, which is both On-Sale and Off-Sale, �� your voting time will be CITY OF FRIDLEY > the Fridle Ja tees the Council in 1960 made �" "" beet. was opened in March, 1957, at 6161 Highway No. 65. 3' 3' -' >. The City owns this building. arrangements for acquiring a Rescue truck, with 3 T A fourth Off-Sale store was opened at 6481 Univer- the Jaycees contributing over $2,000, and working - = M p`E B p►`","O sity Avenue N. E. in November, 1960. This building out the details. The truck was delivered, officially, ELEC'[ION is rented. vo SPECIAL ESO(A At the present time, the City operates four Off-Sale to the City of Fridley Volunteer Fire Department, CITY MINK 1961 and two On-Sale outlets. on Saturday, March 4, 1961. OF pRipLEY, �® z ONDAY� MARCH 27,vote ,n t°V -he M esiri"g to the HOW ESTABLISHED During 1960, the City Council held 24 regular o TtoNS To V°TERS` ant rs d" the sq°°re apropos ti°"' make No tax money is invested in any of the Liquor Store meetings, and 17 special meetings. Three of the W �� • 0 INSTRUC rOPos;tions, make °Ono th,,i,„ 'ng P Y guaranteed q q operations. Bonds uaranteed b liquor store profits, Council members attended all 24 regular meetings, d o f YE X'"n°er desiring 'not.Vote the word` opposite were sold to finance the Shorewood Lounge building. °" uore CITY CON- This bond issue also included money to build an and two of the Council members attended 19 of Y N y 3 "SHA'E TD ppERATE ITS equip- ment garage and an addition onto the City Hall. the 24 regular meetings. Two members attended 15 c W W , n YES Ii UUH`CipAt L ouoR STORE A loan, now paid in full from liquor pro$ts, was ob- tained of the 17 special meetings, and two members at- BATHER T C NSEguE East River uRoad.eNof loan portion as necessary to build the tended 14. 1. N e NQ pR1VATE On-Sale portion, since it was paid for with surplus o m d N t money available in the Liquor Fund. Li 3 it 7 if • MUNICIPAL LIQUOR STORES • • THE FRIIREY COUNCIL'S HOW THE PROFITS HAVE BEEN USED BIG JOB Transferred to General Fund to Reduce Tax Levy $293,612.63 ,....-.. Construction of Equipment Garage and Addition to City Hall. . $ 38,564.60 \ Experiences of other nearby municipalities �h"�" indicate there would be considerable competition Interest Paid on Portion of Bonds Applicable to Equipment , , for the private liquor licenses. In addition to having Garage and Addition to City Hall 7,317.86 45,882.46 �° � ► to choose which persons would be granted the Inventories, Cash and Other Working Assets of Stores privilege of having liquor licenses, the City Council Less Current Liabilities 140,164.96 II -� would have a problem in determining the location Depreciated Value of Store Facilities 52,918.69 ,„ of each license. This could involve many public Net Assets of Liquor Stores Fund 193,083.65 ",.w hearings on requests for extending commercial area Net Income During 12 Years . . $532,578.74 6 _" zoning, and on placing liquor stores near homes. Neighborhood differences would be sure to develop on whether licenses were acceptable in the various ABOUT PRIVATE LIQUOR LICENSES ,' �� p i �� � � localities. If a majority of the voters do not favor continuing In addition to the license fees, the municipalities Fridley's four Municipal Stores, then the Council issuing private liquor licenses receive real estate and would face the problem of issuing private liquor personal property taxes from the privately owned '*`""""" .- . „, TRANSFERS TO GENERAL FUND licenses, both "On and Off-Sale.” establishments. Under present state laws, if Fridley issues private A check of the actual taxes paid in 1960 by two of ='f. TO REDUCE TAX LEVY liquor licenses, a maximum of 10 "On-Sale" establish- the biggest and best known on-sale establishments in ments could be permitted. There is no maximum limit St. Louis Park reveals that the average real-property- of "Off-Sale" licenses. Golden Valley now issues five tax was $5,000, and the average personal-property-tax Amount Transferred Mill Levy Not Needed private "On-Sale" licenses at $4,000 each and 10 "Off- $1,200. STORE No. 2, at 3710 East River Road Year to General Fund Because of Transfers Sale" at $100 each. St. Louis Park now issues six In Golden Valley, a similar check of the three best- 1951 $ 9,262.63 8.51 "On-Sale" at $2,500 each and 11 "Off-Sale" at $200 known establishments shows an average real-property- each. tax of$2,000 each. 1952 12,800.00 10.45 There is no maximum fee stipulated in the state law Personal-property taxes were not checked for Golden SALES AND NET PROFIT OF 1953 11,050.00 8.09 for"On-Sale" liquor licenses. State law limits the "Off- Valley. Part of the difference in the average real estate FRIDLEY LIQUOR STORES 1954 35,500.00 19.24 Sale" license to $200. The normal rule of municipal tax between the two communities is because the St. 1955 30,000.00 13.87 law is that license fees cannot be out of proportion to Louis Park mill rate is higher than Golden Valley. The the cost of regulation. Thus the fees cannot be un- Golden Valley total mill rate is about the same as Transfers to 1956 40,000.00 13.91 reasonable and cannot be used primarily for revenue. Fridley's. Year Net Sales Net Income* General Fund 1957 50,000.00 14.85 1949 $ 11,277.48 N/A 1958 45,000.00 10.79 PRIVATE LICENSE INCOME 1959 40,000.00 6.82 Assuming the same number of outlets were licensed as are now operated by the City, the revenue to the 1950 99,409.45 N/A 1960 20,000.00 2.41 City of Fridley might be as follows: 1951 142,043.77 $ 31,947.28** $ 9,262.63 License Fees: TOTAL $293,612.63 4 Off-Sale at $200.00 each $ 800.00 1952 183,381.02 . 36,547.89 12,800.00 2 On-Sale at $3,500.00 each 7,000.00 1953 225,107.43 46,985.18 11,050.00 Total License Income $7,800.00 1954 315,979.94 57,375.22 35,500.00 ABOUT 1960 PROFITS Property Taxes: Personal Property valued at $140,688.04 1955 356,931.27 61,666.96 30,000.00 Those who study the charts showing the revenue Assessed Value 15,632.00 1956 378,338.93 62,229.24 40,000.00 produced by the Municipal Liquor system will Total Tax on Personal Property 3,870.95 probably be disturbed by the drop in the number of Municipality's Share of Tax 471.61 1957 443,860.18 52,290.00 50,000.00 dollars transferred to the General Fund in 1960. Real Estate valued at $212,769.33 This drop was caused by an investment in new Assessed Value 23,830.16 1958 450,126.90 62,106.23 45,000.00 property financed out of current revenue. In 1960, Total Tax on Real Estate 5,901.06 1959 530,766.53 72,401.04 40,000.00 the Council authorized the construction of a second Municipality's Share of Tax 718.96 "On-Sale" bar in conjunction with the East River 1960 599,704.17 83,114.87 20,000.00 "Off-Sale"Municipality's Road Off-Sale store. This construction was Real Estate Taxes 1,190.57 Totals $3,736,927.07 $566,663.91 $293,612.63 financed out of current profits in the Liquor funds Total Revenue $8,990.57 and of course is reflected in an increased net worth. In the above example, the School District, County, and State would receive $8,581.44 in taxes in addition *Before Payment of bond interest If this capital investment had not been made, the P Y cash transfer to the General Fund would have been to the $1,190.57 received by the City. If the total number of licenses were increased, the revenue from licenses **Net profit for 1949, 1950 and 1951 Y Y approximately $50,000 in 1960. and taxes would increase proportionately. N;A—Not Available 304E305