2023a ABC Board Minutes - Laserfiche WebLink

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i i ORANGE COUNTY ABC BOARD—AGENDA FORM Meeting Date: February 21,2023 Agenda Item # 5a Regular Session X Closed Session Total operating expenses ($121,352) increased $14,701 (13.78%), due primarily to increases in lease amortization (+$20,507), utilities (+$3,548), contract services ($3,277) and interest on leases ($3,622).These increases were offset somewhat by declines in rent (-$12,481), legal and audit services (-$2,427) and interest on debt services(-$4,778). Total increased expenses ($94,708) in conjunction with a nominal increase in profit ($20,885) contributed to a decline in net income of-$88,787. After depreciation expenses of $34,691, total income for the month was-$19,950, down -$86,670 from the previous year. 3. Actual to Budget Comparison for Year-to-Date 2023 (Attachment"C"): While revenues and expenses are not evenly distributed throughout the fiscal year, with five months outstanding, nearly 41.67%should remain in allocated funds. Although January saw a downturn in retail store sales, revenues for the year remained approximately 5.14%above those budgeted.As sales in the "winter"quarter are expected to continue to"soften,"this overage amount is projected to decrease somewhat. January was a higher-than-expected period in payroll expenses. As a result, year-to-date payroll expenses are currently 4.56%higher than expected. Overall payroll expense levels are anticipated to decline in the following months during the"slower" sales period. Total operating expenses are presently 2.39% above those projected for the year,with credit card processing fees continuing to trend higher. Store expenses are approximately 6.59%higher while office expenses are up 14.78% for the year. i Action Requested: 1. Consent Agenda Item. 2. Review and discuss as needed. Financial Impact: See Above Staff Recommendations/Comments: None Page 2 of 6 pages I