ACTION:
____________________________
Clerk/Secretary
Department: City Manager Item No: D2
Prepared by: Imelda M. Huerta, Assistant City Manager Meeting Date: September 10, 2024 Approved by: John Conley, City Manager Agenda Location: Discussion SUBJECT: YEAR-END CANNABIS REVENUE POLICY
RECOMMENDATION: Discuss a year-end cannabis revenue policy and provide direction to staff.
CORRELATION TO CITY COUNCIL GOALS: Fiscal Responsibility PRIOR ACTION: On August 13, 2024, discussed excess cannabis revenue scholarship program and adopted City Council Resolution No. 2024-141, amending the Operating Budget for Fiscal Years 2023/24 and 2024/25 (Vote: 5-0).
Please reference Exhibit 1 for previous City Council actions.
STATEMENT ON THE SUBJECT: Councilmember Contreras requested the City Manager place a discussion item on an upcoming agenda to discuss a year-end cannabis revenue policy.
Please reference Exhibit 2 for cannabis year-end fund balance allocations and expenditures as of August 27, 2024.
FISCAL IMPACT: There is no direct fiscal impact with this discussion.
EXHIBITS:
1.Prior City Council Actions
2.Cannabis Year-End Revenue Allocations and Expenditures AGENDA
REPORT
CITY COUNCIL
COMMUNITY DEVELOPMENT COMMISSION
SUCCESSOR AGENCY
BUENA SANITATION DISTRICT
JOINT POWERS FINANCING AUTHORITY
Directed staff to prepare a cannabis revenue policy allocating funds as follows: 65% of revenue towards the general fund, including funds to cover previously approved positions of two Park Rangers and one Sheriff's Deputy, and to add a new DUI Enforcement Deputy; 15% towards youth and educational scholarships; and 20% to one-time projects approved by the majority of the City Council. The policy will include a minimum allocation of $4,466,396 to the general fund. Vote: 5-0
PRIOR CITY COUNCIL ACTIONS
On August 13, 2024, adopted City Council Resolution No. 2024-141, amending the Operating Budget for Fiscal Years 2023/24 and 2024/25 (Vote: 5-0).
On November 14, 2023, adopted City Council Resolution No. 2023-202, amending Operating Budget for Fiscal Years 2023/24 and 2024/25, and amending the Capital Project Budget for Fiscal Years 2022/23 and 2023/24 (Vote: 5-0).
On November 15, 2022, received and filed the Fiscal Year 2021/22 Fourth Quarter Financial Report; adopted City Council Resolution No. 2022-172, amending the Operating Budget for Fiscal Years 2021/22 and 2022/23, and amending the Capital Project Budget for Fiscal Years 2021/22 and 2022/23; adopted Buena Sanitation District Resolution 2022-21, amending the Operating Budget for Fiscal Years 2021/22 and 2022/23 (Vote: 5-0).
On October 11, 2022, discussed allocating excess cannabis revenues and provided direction to staff (Vote: No vote).
On March 8, 2022, received and filed the Fiscal Year 2021/22 Second Quarter Financial Report; adopted City Council Resolution No. 2022-37, amending the Operating Budget for Fiscal Years 2021-22 and 2022/23; adopted City Council Resolution No. 2022-38, amending the Citywide Classification and Compensation Index; adopted Buena Sanitation District Resolution 2022-10, amending the Operating Budget for Fiscal Years 2021/22 and 2022/23 (Vote: 5-0).
On September 28, 2021, adopted City Council Resolution No. 2021-168, amending the Operating Budget for Fiscal Years 2021/22 and 2022/23 (Vote: 3-2, Contreras and Melendez Opposed).
On September 14, 2021, adopted City Council Resolution No. 2021-140, amending the Operating Budget for Fiscal Years 2021/22 and 2022/23, with the revised appropriation of the $275,000 allocated for one Sheriff’s Deputy to the Lighting Landscape and Maintenance line item (Vote: 3-0, Ritter and Green absent).
On August 24, 2021, discussed priorities for allocating excess cannabis revenues and approved funding for the following: 1) cannabis decoy and enforcement operations, 2) youth cannabis prevention and early intervention, 3) youth scholarships, 4) increased lighting in neighborhoods, 5)increased park restroom maintenance and 6) addition of one Sheriff’s deputy and two Park Directors/Enforcers (Vote on items 1-5, 5- 0; Vote on item 6: 3-2, Contreras and Melendez opposed).
On November 10, 2020, received and filed the Fiscal Year 2019/20 Fourth Quarter Financial Report and adopted City Council Resolution No. 2020-192, amending the Operating Budget for Fiscal Years 2019/20 and 2020/ 21, and amending the Capital Project Budget for Fiscal Years 2020/21 and 2021/22 (Vote: 5-0).
09/10/2024 D2 2 of 3
EXHIBIT 1
CANNABIS SPENDING SUMMARY
FY 2020 FY 2021 FY 2022 FY 2023 RESO
2024-141
Combined with YEFB Allocation*1,108,400 0 1,108,400 1,108,400 0 Cannabis decoy and enforcement operations 20,000 0 20,000 1,062 18,938 Youth cannabis prevention and early intervention 100,000 100,000 -199,680 320 320 0 Scholarship program 140,000 109,699 771,798 417,332 1,438,829 1,054,261 384,568 Increase lighting in neighborhoods 270,000 500,000 770,000 0 770,000 Sheriffs' Deputy 275,000 275,000 275,000 0
Two Park Rangers 277,000 277,000 277,000 0
Park Restroom Maintenance 31,000 31,000 31,000 0
Social Equity Study 100,000 -100,000 0 0 0
Pala Vista Park Monument Sign 40,000 40,000 0 40,000
Playground Resurfacing 693,000 693,000 693,000 0
Park Improvements 550,000 550,000 550,000 0
Safe Parking Program 250,000 1,000,000 1,250,000 229,769 1,020,231 Prevention Education Programs 250,000 -22,652 227,348 0 227,348 Performing Arts Shows 20,000 -20,000 0 0 0
Domestic violence services 250,000 -50,000 200,000 0 200,000 Bike helmets 15,000 15,000 2,592 12,408
Gun locks 12,500 -5,000 7,500 2,266 5,234
Grants for CPTED recommendations 20,000 -20,000 0 0 0
Little Libraries 5,000 5,000 0 5,000
Educational events (CSC)7,500 7,500 737 6,763
Park restroom maintenance reserve 100,000 100,000 0 100,000 Total Allocated with year-end reports 1,108,400 1,113,000 2,342,699 2,451,798 0 7,015,897 4,225,406 2,790,490 *Click here to see FY2020 Agenda Report for full list of projects Programmed Annually in the Operating Budget FY 2020 FY 2021 FY 2022 FY 2023 General Fund Operations 250,000 4,000,000 4,000,000 4,000,000 Sheriffs' Deputy 229,926 229,926
Two Park Rangers 205,470 205,470
Park Restroom Maintenance 31,000 31,000
TOTAL 250,000 4,000,000 4,466,396 4,466,396
TOTAL PROGRAMMED 1,358,400 5,113,000 6,809,095 6,918,194 TOTAL REVENUE 1,358,400 5,113,000 6,809,095 6,918,194
ANNUAL YEAR-END ALLOCATION
Project/Program Description Total Allocated Spend as of
8.27.24 Remaining
Budget
09/10/2024 D2 3 of 3EXHIBIT 2