During a recent government meeting, city officials discussed the implications of cannabis policy in light of California's Proposition 64, which legalized recreational cannabis use for adults. The meeting focused on a fiscal analysis conducted by HDL Consultants, which examined potential tax rates, market share, and revenue estimates for cannabis-related activities within the city.

The presentation highlighted the need for the city to explore commercial cannabis uses as a means of generating additional revenue for its general fund, particularly in light of projected fiscal deficits over the next three years. The council is considering allowing retail cannabis operations, which could significantly contribute to the city's finances. HDL's analysis indicated that the city could potentially generate between $1.5 million and $2 million in cannabis tax revenue if it establishes competitive tax rates for retail operations.

The council also reviewed recent survey results indicating positive voter sentiment towards cannabis regulation, suggesting that local residents may support the proposed measures. Currently, the city prohibits commercial cannabis activities beyond limited personal cultivation and delivery services. However, the council retains the authority to regulate and tax cannabis businesses, should they choose to expand these activities in the future.

As the city prepares for a potential ballot measure on November 5, officials are weighing the economic benefits of cannabis regulation against community concerns. The meeting underscored the importance of establishing clear regulatory frameworks and competitive tax rates to maximize revenue from cannabis retailers, which are seen as the most viable source of income in this emerging market.