January 4, 2005

Liquor nets city, county a nice check

By Bill Choy
Ashland Daily Tidings

Buying that bottle of whiskey or rum from the local liquor store is helping provide needed revenue to counties and cities throughout Oregon, including Ashland and Talent.

The Oregon Liquor Control Commission distributed $22.45 million to 239 incorporated cities and $11.22 million to 36 counties in 2003-2004, said Oregon Liquor Control Commission spokesperson Ken Palke, based in Portland. For 2003-2004, the state reported $289 million in sales and $119 million in revenue, Palke said, with $62.85 million going to the state's general fund.

OLCC revenue is derived from the sale of distilled spirits in 241 liquor stores, taxes on malt beverages and wine, license fees, and fines for liquor law violations.

Palke said money is distributed based on population, not by the amount of liquor purchased in each town or county.

Cities receive 20 percent, counties 10 percent and the state general fund 56 percent, with 14 percent going to the city revenue sharing account. Money also goes to the state office of Mental Health and Addiction Services for drug and alcohol programs.

"I think that in Oregon, we're fortunate to have it structured this way and to give back to the communities," Palke said. "There's no middle person taking a cut. Oregon cities get a good share. In these lean times, it's nice to have the money coming in."

He said 18 states nationwide, including Oregon, control the distribution of liquor.

Ashland City Administrator Gino Grimaldi said the city receives an average of $184,000 each year from the liquor commission. The distribution goes into the city's general fund, helping pay for city services such as administration, police and fire.

With city expenditures budgeted at an average of $12.7 million each year, the most money goes to the fire department at $4.8 million, and the police department at $4.4 million.

The $184,000 received from the liquor commission is enough money to pay the annual salaries of three firefighters and police officers, Grimaldi said.

Without that revenue, it would be a challenge to balance the budget and fund programs and services, he said.

"Every dollar counts when you are building the budget," Grimaldi said. "A budget cut would be significant. ... These funds are vital in terms of cities providing services to citizens."

In Talent, City Manager Betty Wheeler estimated the city will receive $52,000 to $53,000 from the liquor commission to go into its general fund for fiscal year 2005. Money goes to the city administration, police and community development.

"Any kind of revenue we receive is important," Wheeler said. "If we didn't receive it, we would have to find other ways. Losing $53,000 could mean a person would have to go within the three departments. ... It has a very meaningful and dramatic impact statewide."