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ORANGE COUNTY ABC BOARD—AGENDA FORM <br /> Meeting Date: June 17,2025 Agenda Item#9 <br /> Regular Session X <br /> Closed Session <br /> Depreciation <br /> While the depreciation of assets is recorded as a normal business outlay, per the NC ABC <br /> Commission, it is not considered as a budget line items as it is a "non-cash" expense. Estimated <br /> depreciation "expenses" for FY 2026 are presented as a "below the line" item, however, for the <br /> benefit of the Board's consideration. <br /> it <br /> Distributions <br /> I <br /> With the constriction of revenues, the Board has been proactive in administering grant <br /> allocations for FY 2026. By statue, the Board is required to expend not less than 5% of profits (less <br /> the 3.5% markup and bottle tax) for law enforcement and 7% for alcohol education and <br /> rehabilitation. As the calculation is based on income,with sales declining,the statutory requirement <br /> is expected to be less than in previous years. <br /> Per the FY 2024 audit,the minimum authorized for law enforcement was$40,882.The FY 2026 <br /> grant of$200,000 will certainly exceed the required amount.Although the FY 2026 grant for alcohol <br /> education has been reduced from the prior year, the $261,000 approved far exceeds the $57,235 <br /> calculated for the FY 2024 audit. <br /> I <br /> Attachment"Page 4"Capital Improvement Plan: <br /> With profit revenue tightening, capital expenditures for the coming year have been postponed <br /> or delayed. <br /> With the closing expected on June 30, 2026, the purchase of the northern Orange County <br /> property is included in the FY 2026 budget. Should delays in the rezoning process or other approvals <br /> occur, the purchase may occur in the following fiscal year (2027). Funds for this purchase are <br /> expected to be drawn from cash currently held by the Board. <br /> Debt service on the Mebane store held by First Horizon bank is projected to be $162,000. <br /> The Annual Budget for FY 2026 ("Page 5') is presented for review, consideration and approval by <br /> the Board as is the Annual Budget Ordinance ("Page 6'). <br /> I <br /> I <br /> Action Requested: <br /> 1. Review and discuss as needed. <br /> 2. Vote approval of the FY 2026 budget. <br /> Financial Impact: See Above <br /> Staff Recommendations/Comments: None <br /> Page 2 of 6 pages <br />