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5 <br /> NOR'1"I....1 CAROLINA <br /> NA <br /> FINANCE andADMINISTRATIVE SERVICES <br /> Gary Donaldson,CTP,Chief Financial Officer I gdonaldson @orangecountync.gov I 200 S.Cameron Street,Hillsborough,NC 27278 I 919.245.2453 <br /> Memorandum <br /> TO: Commissioner Mark Dorosin <br /> FROM: Gary Donaldson, Chief Financial Officer <br /> DATE: October 14, 2016 <br /> RE: Petition Response on ABC Board Funding to the County <br /> At the September 6, 2016 Board of County Commissioner meeting your petition request was for financial <br /> information pertaining to the Alcoholic Beverage Control(ABC)Board funding to the County's General Fund. <br /> This petition response is supported by two exhibits which illustrate a five year financial summary of the ABC <br /> Boards financial performance and ABC benchmarking with 15 other ABC Boards. <br /> Exhibit 1: Orange County ABC Board Five Year Statement of Revenues,Expenses and Changes in Net <br /> Position <br /> The last column on Exhibit 1 provides a five year average of revenues, expenses, and operating income <br /> performance; as noted Net Sales (Revenues)experienced an average annual growth rate of 5.9%while Operating <br /> Expenses experienced an average annual growth rate of 3.8% from fiscal years 2012 through 2016. <br /> Net income has experienced an average annual growth rate of 11.4%between fiscal years 2012 through 2016. The <br /> ABC strong financial performance has resulted in the net position increasing to $7,805,267 as of June 30, 2016. <br /> The ABC Board has utilized 64% of their net position to cash finance the majority of their capital projects <br /> including construction of a new store#3 this past fiscal year. The cash on hand remaining after these capital <br /> investments is $2,450,028 as of June 30, 2016. <br /> The ABC capital funding strategy indicated above was confirmed at a meeting with the ABC General Manager, <br /> ABC Finance Director,ABC Board Chair,myself, and Deputy County Manager Myren. <br /> Exhibit 2: Alcoholic Beverage Control Board Benchmarking among 16 Jurisdictions <br /> Exhibit 2 provides a comparison of the Orange County ABC distribution of income after accounting for net <br /> profits with 15 other jurisdictions. This benchmarking comparison is sourced to the fiscal year 2015 audited <br /> financial reports of the 16 benchmarked jurisdictions. <br /> As noted in Exhibit 2, the Orange County ABC Board distribution after profit to the County is 39% as compared <br /> to the benchmark average of 82%for the other 15 jurisdictions for fiscal year 2015. The Orange County ABC <br /> Distribution is as follows: <br /> Law Enforcement $130,000 <br /> Alcohol Education $156,550 <br /> Local $400,000 <br /> Total $686,550 <br /> Oranges County Government I www.orangecountync.gov 1 919.732.8181 <br />