City of Sacramento
Budget and Audit Committee Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2026-00380 2/3/2026
City Auditor’s Fiscal Year (FY) 2024/2025 Audited Cannabis Business Operations Tax Amount for the Sacramento Children’s Fund
File ID: 2026-00380
Location: Citywide
Recommendation: Pass a Motion: 1) accepting the City Auditor’s FY2024/2025 Audited Cannabis Business Operations Tax Amount for the Sacramento Children’s Fund; and 2) forwarding to City Council for approval.
Contact: Farishta Ahrary, City Auditor, (916) 808-7266, [email protected]; Joe Fleming, Senior Fiscal Policy Analyst, (916) 808-7285, [email protected]; Office of the City Auditor
Presenter: Farishta Ahrary, City Auditor, (916) 808-7266, [email protected]; Joe Fleming, Senior Fiscal Policy Analyst, (916) 808-7285, [email protected]; Office of the City Auditor
Attachments:
1-Description/Analysis
2-City Auditor’s Fiscal Year 2024/2025 Audited Cannabis Business Operations Tax Amount for the Sacramento Children’s Fund
Description/Analysis
Issue Detail: This project was approved as part of the City Auditor’s FY2025/26 Work Plan.
According to the City Council Rules of Procedures, the Budget and Audit Committee shall receive, review, and forward to the Council as appropriate, reports, recommendations, and updates from the City Auditor. This report documents the City Auditor’s FY2024/2025 Audited Cannabis Business Operations Tax Amount for the Sacramento Children’s Fund.
Policy Considerations: The Sacramento Children and Youth Health and Safety Act, also known as Measure L, was passed by voters in November 2022. Measure L amended the Sacramento City Charter, adding Section 120 - Sacramento Children’s Fund. The section outlines the establishment and operations of the "Sacramento Children’s Fund" in the City of Sacramento.
File ID: 2026-00380 2/3/2026
In subsection (c) and paragraph (2) of the Sacramento Children’s Fund, the City Auditor is directed to publish an audited amount of Cannabis Business Operations Tax (CBOT) for the prior fiscal year by January 15 of each year. This report documents the City Auditor’s FY2024/2025 Audited Cannabis Business Operations Tax Amount for the Sacramento Children’s Fund.
Economic Impacts: None.
Environmental Considerations: None.
Sustainability: None.
Commission/Committee Action: None.
Rationale for Recommendation: This staff report provides the Budget and Audit Committee with information that may be used to meet its responsibility to provide oversight and supervision of the City Auditor and other City departments.
Financial Considerations: The City contracted with Macias Gini & O’Connell LLP to audit the FY2024/2025 Cannabis Business Operations Tax Amount at a cost of $19,050. The cost of the City Auditor’s FY2024/2025 Audited Cannabis Business Operations Tax Amount for the Sacramento Children’s Fund was funded as allowable administrative costs from the Sacramento Children’s Fund.
Local Business Enterprise (LBE): None.
CITY OF SACRAMENTO
CANNABIS BUSINESS OPERATIONS TAX REVENUE
Independent Auditor's Report and
Schedule of Cannabis Business
Operations Tax Revenue
Year Ended June 30, 2025
Report No. 2025/26-07
January 2026
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