The City’s cannabis tax is a new revenue that began in 2018 once the first cannabis businesses opened. It is estimated to generate $1.5 million this fiscal year (FY 2020-21). Because it is a new revenue source, and given uncertainties in the statewide cannabis market, the City has been cautious with these revenues to focus on one-time uses and sufficient reserves rather than significantly expanding General Fund costs to meet community needs. The City has made some initial investments with the cannabis tax revenue, including increasing the City’s funding for fire and emergency medical services by over $500,000 annually over the past two years. This allowed the conversion of temporary reserve firefighters to permanent positions given increased service demands. Other initial investments include partial funding for adding a Police Sergeant position and adding funding increases for maintaining parks and City facilities. The cannabis tax revenues have also helped the City avoid budget shortfalls and service reductions with revenue losses due to COVID-19. However, the cannabis tax revenues do not provide funding to address the long-term community needs identified by the public given the scale of these needs.
For additional information on the City’s current budget, you can review and download the FY 2020-21 Adopted Budget.