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<br /> Table 1 below indicates the historical year trend in ABC profits before distribution and
<br /> distribution to sub-recipients. As noted on Table 1 below, the ABC distribution as a percent of
<br /> profits has increased from 39% in FY 2014-15 to 65% in FY 2019-20. These increases resulted
<br /> from BOCC Petitions and Benchmarking Analyses (Attachments 2 and 3).
<br /> Table 1
<br /> Orange Alcoholic Beverage Control Board
<br /> Historical Year Financial Trend
<br /> FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020
<br /> Profit Before Distributions $1,780,957 $ 1,564,997 $ 1,303,231 $ 1,074,918 $ 1,458,916 $ 1,249,749
<br /> Profit as Percent of Income 9.91% 8.37% 9.77% 5.35% 6.83% 5.20%
<br /> Statutory Distributions
<br /> Law Enforcement $ 130,000 $ 135,000 $ 149,000 $ 149,300 $ 160,000 $ 147,000
<br /> Alcohol Education 156,550 144,094 209,150 212,500 244,000 165,233
<br /> Local 400,000 400,000 500,000 500,000 535,000 500,000
<br /> Total Distributions $ 686,550 679,094 858,150 861,800 939,000 812,233
<br /> Total Distribution as% of Profit 39% 43% 66% 80% 64% 65%
<br /> Table 2 below is an updated Benchmarking Analysis as of June 30, 2019 comparing the Orange
<br /> County ABC Board distribution to sub-recipients as a percent of profit which was 64%. The five
<br /> counties of Alamance, Chatham, Durham, Wake and Mecklenburg have an average distribution
<br /> as percent of profit of 70%.
<br /> Based on the ABC financial and sales performance and the Table 2 comparison of other County
<br /> ABC Board distributions, the County's Drug Treatment funding request of $32,500 for the
<br /> Criminal Justice Resource Department does appear reasonable. A copy of this financial analysis
<br /> has been provided to the ABC General Manager and Finance Director in order to allow ABC
<br /> management to respond. Attachment 4 represents the ABC response.
<br /> Table 2
<br /> Alcoholic Beverage Control Board-Benchmarking Analysis
<br /> As of June 30,2019
<br /> Alamance Chatham Durham Wake Mecklenberg Orange
<br /> Profit Before Distributions $1,490,023 $ 224,751 $5,094,539 $23,520,812 $27,934,328 $ 1,458,916
<br /> Profit as Percent of Income 9.7% 5.07% 12.64% 15.57% 15.65% 6.83%
<br /> Statutory Distributions
<br /> Law Enforcement $ 84,629 $ 5,028 $ 484,250 $ 1,147,161 $ 2,588,961 $ 160,000
<br /> Alcohol Education $ 74,050 $ 7,040 $ 267,123 $ 4,284,450 $ 4,903,700 $ 244,000
<br /> Local $ 955,176 $ 124,181 $2,555,555 $11,884,086 $13,291,176 $ 535,000
<br /> Total Distributions $1,113,855 $ 136,249 $3,306,928 $17,315,697 $20,783,837 $ 939,000
<br /> Total Distribution as % of Profit 75% 61% 65% 74% 74% 64%
<br /> AVERAGE 70%
<br /> FINANCIAL IMPACT: There is no financial impact associated with this abstract.
<br /> SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goals are applicable
<br /> to this agenda item:
<br /> • GOAL: FOSTER A COMMUNITY CULTURE THAT REJECTS OPPRESSION
<br /> AND INEQUITY
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