Agenda - 03-07-2017 - 4-a - Alcoholic Beverage Control (ABC) Board Update Presentation

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3 THE ORANGE COUNTY ABC BOARD • The Orange County ABC Board is a local, independent political subdivision of the state operating under the auspices and oversight of the North Carolina Alcoholic Beverage Control Commission. It transacts business as a corporate body and is not considered a public authority under G.S. 159- 7(b)(10). ♦ The Orange County ABC Board operates eight retail stores (six properties owned, two leased) and has a total of forty-seven employees. • The ABC system in Orange County receives no County funding. All operations are fully funded by annual revenues of its retail stores. • Orange County ABC employees are not county employees. Their employment is managed by the ABC general manager. Employee compensation is funded totally through local ABC revenues. Employee benefits, including medical, dental and disability insurance, local government retirement contributions and matches to 401-K programs are established by the Orange County ABC Board of Directors and funded totally through ABC revenues. • Unlike private retail businesses local ABC boards cannot increase operating revenues or profits through independent strategies. Liquor prices are established by the state ABC Commission and are consistent throughout all ABC stores in the state. ABC systems cannot advertise, offer items for sale or in any way promote their business to the public. • Construction of new stores, improvements to existing stores, capital purchases, technological upgrades, and employee salaries, benefits and training must all be paid for through existing store revenues. ♦ In FY 2015-16 the ABC Board of Directors adopted a living wage of$12.76 for all employees and indicated its commitment to continued adherence to the Orange County living wage standards. • The ABC Board is required by statute to annually contribute to local law enforcement five percent (5%) of gross receipts after primary distributions. In the past five years that benchmark would have resulted in a total distribution to law enforcement of $282,984. However, in that same five-year period the Board has actually contributed an average of 12.3% to local law enforcement agencies for a total distribution of$665,000. • The ABC Board is required by statute to annually contribute to local alcohol rehabilitation and education programs seven percent (7%) of gross receipts after primary distributions. In the past five years that benchmark would have resulted in a total distribution to such programs of $368,197. However, in that same five-year period the Board has actually contributed an average of 12.3%for a total distribution of$680,644. • In the past five years the ABC Board has contributed$2.25 million to Orange County. • Contributions to the County and to Orange County ABC partners in the past five years total$3.59 million.