ACTION:
____________________________
Clerk/Secretary
Department: City Manager Item No: D2
Prepared by:
Kathy Valdez, City Clerk
John Conley, City Manager Meeting Date: October 22, 2024 Approved by: John Conley, City Manager Agenda Location: Discussion SUBJECT: YEAR-END CANNABIS REVENUE POLICY
RECOMMENDATION: Discuss the year-end cannabis revenue policy direction provided to staff and consider an 80/20 split between extracurricular and academic scholarships.
CORRELATION TO CITY COUNCIL GOALS: Fiscal Responsibility.
PRIOR ACTION: On September 10, 2024, 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).
Please reference Exhibit 1 for previous City Council actions.
STATEMENT ON THE SUBJECT: Councilmember Green requested the City Manager place a discussion item on the agenda to discuss the proposed split of scholarship funds between extracurricular and academic purposes. For the past two years the City Council has authorized excess cannabis revenue for extracurricular scholarships for qualifying individuals under twenty-five years of age to participate in a wide range of activities including, but not limited to sports, dance, art, tutoring, and job training. Since late May 2023, over 2,600 scholarships have been awarded; an average of about 500 scholarships per quarter.
At the September 10, 2024 City Council meeting Councilmember Green provided a proposal for the year- end cannabis revenue policy that included allocating 15% of funds for scholarships, split evenly between the current (recreational) extracurricular program and a new program for academic scholarships. After reviewing the impact of this split on the current scholarship program, Councilmember Green is proposing an 80/20 split between the current program and a new academic scholarship program, after accounting for staff time. Based on current revenue estimates with Councilmember Green’s revised (80/20 split) proposal, the City would continue to provide an estimated 325 scholarships each quarter for extracurricular activities, and the new academic scholarship program would receive approximately $200,000 annually.
FISCAL IMPACT: There is no direct fiscal impact associated with this discussion item.
EXHIBITS:
1.Prior City Council Actions
AGENDA
REPORT
CITY COUNCIL
COMMUNITY DEVELOPMENT COMMISSION
SUCCESSOR AGENCY
BUENA SANITATION DISTRICT
JOINT POWERS FINANCING AUTHORITY
Discussed the year-end cannabis revenue policy direction provided to staff and approved an 80/20 split between extracurricular and academic scholarships. Vote: 5-0
PRIOR CITY COUNCIL ACTIONS
On September 10, 2024, 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).
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).
10/22/2024 D2 2 of 2
EXHIBIT 1