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Ordinance Amending the Cannabis Public Benefit Fund
<br />July 20, 2021
<br />Page 2
<br />The City Council reviewed the Fiscal Year 2021-22 budget and determined the cannabis
<br />regulations are successfully enforced, and expressed a desire to allocate a greater share
<br />of the Cannabis Public Benefit Fund to youth services. The City Attorney has determined
<br />the change will require an amendment to the original ordinance. The new ordinance
<br />(Exhibit 2) will allow the City Council to allocate between youth services and enforcement,
<br />so long as the total two-thirds set -aside remains in place. In otherwords, the City Council
<br />could not reduce the share of Cannabis tax set -aside to the Cannabis Public Benefit Fund
<br />without making fiscal emergency findings and a two-thirds vote of the entire City Council.
<br />ENVIRONMENTAL IMPACT
<br />There is no environmental impact associated with this action.
<br />FISCAL IMPACT
<br />Based on the current ordinance and the adopted FY 21-22 Budget, the Cannabis Public
<br />Benefit Fund will have estimated balances at June 30, 2022 of $412,221 for youth
<br />services and $7,576,526 for enforcement activities.
<br />Youth
<br />Enforcement
<br />Balance June 30, 2019
<br />Actual
<br />-
<br />-
<br />FY19-20Set-Aside
<br />Actual
<br />4,902,658
<br />3,902,658
<br />Interest Earnings
<br />Actual
<br />18,559
<br />18,559
<br />Spending
<br />Actual
<br />(4,341)
<br />(1,826,869)
<br />Balance June 30, 2020
<br />Actual
<br />$ 4,916,875
<br />$
<br />2,094,347
<br />FY20-21Set-Aside
<br />Estimate
<br />6,033,333
<br />6,033,333
<br />Interest Earnings
<br />ActualYTD
<br />47,011
<br />20,025
<br />Spending
<br />Budgeted
<br />(7,455,659)
<br />(3,413,149)
<br />Balance June 30, 2021
<br />Estimate
<br />$ 3,541,561
<br />$
<br />4,734,556
<br />FY21-22Set-Aside
<br />Estimate
<br />6,508,350
<br />6,508,350
<br />Spending
<br />Budgeted
<br />(9,637,690)
<br />(3,666,380)
<br />Balance June 30, 2022
<br />Estimate
<br />$ 412,221
<br />$
<br />7,576,526
<br />If the proposed Ordinance is adopted, the City Council will have the flexibility to shift some
<br />or all of the $7,576,526 from enforcement activities to youth services. In addition, the City
<br />Council will have the flexibility to change future youth and enforcement spending
<br />allocations within the Cannabis Public Benefit Fund.
<br />EXHIBIT(S)
<br />1. Ordinance No. NS-2959
<br />2. Proposed Ordinance
<br />Submitted By: Kathryn Downs, Executive Director Finance and Management Services
<br />Approved By: Kristine Ridge, City Manager
<br />City Council 26 — 2 7/20/2021
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