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Ordinance Amending the Cannabis Public Benefit Fund
<br />July 20, 2021
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<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 other words, 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 $7,576,526 for enforcement activities.
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<br />Youth Enforcement
<br />Bal ance June 30, 2019 Actual --
<br />FY19-20 Se t-Asi de Actual 4,902,658 3,902,658
<br />Inte rest Earni ngs Actual 18,559 18,559
<br />Spe ndi ng Actual (4,341)(1,826,869)
<br />Bal ance June 30, 2020 Actual 4,916,875$ 2,094,347$
<br />FY20-21 Se t-Asi de Esti mate 6,033,333 6,033,333
<br />Inte rest Earni ngs Actual YTD 47,011 20,025
<br />Spe ndi ng Budge ted (7,455,659)(3,413,149)
<br />Bal ance June 30, 2021 Esti mate 3,541,561$ 4,734,556$
<br />FY21-22 Se t-Asi de Esti mate 6,508,350 6,508,350
<br />Spe ndi ng Budge ted (9,637,690)(3,666,380)
<br />Balance June 30, 2022 Estimate 412,221$ 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
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