A report by the Minnesota Auditor’s Office shows that the four municipal liquor stores operating in Koochiching County showed a profit for 2010.

The information is good news because it allows the cities that own the liquor stores to use the profits to help pay for city services and activities without further tapping taxpayers.

Minnesota municipalities were originally authorized to own and operate liquor establishments as a means of controlling the sale of alcohol, but their value has changed since then. Now, most cities with municipal liquor stores use them as an additional source of money to supplement tax and fee revenues.

Former Ranier Mayor Dave Trompeter once joked that the city was drinking itself into prosperity. And while no one wants to see the consumption of alcohol misused, his statement rings true for many cities.

Locally, the cities of Ranier, Big Falls, Northome and Littlefork have been able to use some of the profits gained by the liquor store for other city funds. Those transfer of funds in 2010 ranged from $8,000 in Big Falls to $50,000 in Ranier.

Without those profits, it’s likely that taxpayers in those cities would have been asked to contribute more through a city levy or faced cuts in services and programs the cities deliver.

Statewide, municipal liquor stores, or “munis” as they are called by many of us, have done pretty well. The combined net profit of all municipal liquor operations totaled $21.7 million in 2010. While that’s a slight decrease, 0.9 percent, from the amount generated in 2009, it still represents a huge benefit for the taxpayer.

And it appears that most cities are doing a good job of managing their munis and maintaining profits. Just 40 of the 209 Minnesota cities that operate 242 liquor stores reported net losses for 2010, compared to 38 cities in 2009. Wisely, those cities that experienced net losses in at least two of the past three years are required by law to conduct public hearings on the future of their liquor stores. That gives taxpayers a chance to provide their views on the operations.

Clearly, munis play a role in the finances of the cities and residents who own them. And we’re pleased that the local munis are seeing positive results.