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Council hears guidance on potential cannabis tax revenue; Elm Avenue and Dorril Field updates noted

2735714 · February 26, 2025
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Summary

Council members discussed a state auditor bulletin clarifying permitted uses of adult-use cannabis excise revenue and a suggestion to place receipts into a dedicated street fund; members also heard updates on Elm Avenue and uncertainty over a Dorril Field federal community-project grant.

NORWOOD, Ohio — City officials at Norwood’s Feb. 25 council meeting discussed how newly issued state guidance could affect anticipated adult-use cannabis excise revenue and noted progress on local capital projects.

A late bulletin from the Ohio Auditor of State clarified permissible uses for adult-use cannabis excise revenue, Mayor Victor Schneider and council members said. Treasurer/finance staff (Mr. Bonzo) said the city has not yet received any cannabis tax payments but estimated that Norwood could receive roughly $150,000–$200,000 a year if revenue is retained locally and not reallocated at the state level. He recommended placing any cannabis tax receipts into a dedicated fund—proposed for the city’s street fund—to avoid relying on the money for recurring operations if the state later reclaims or redirects it.

“Putting that money into the street fund or some fund dedicated to streets means that anytime we basically get the cannabis money…we can use that for street purposes,” Mr. Bonzo said.

Why it matters: Norwood hosts two adult-use dispensaries; a share of the state excise tax is set aside for the municipality that houses a dispensary. Council members said the guidance provides flexibility but underscored the risk that the legislature could change revenue allocation in future sessions.

Project updates: Mayor Schneider and other officials reported progress on local capital work. The Elm Avenue project is moving forward pending conveyance of one parcel from Hamilton County to the city; officials said a contract will go out once that transfer completes. Councilwoman Susan Hoover said the Dorril Field community-project grant remains uncertain because Congress temporarily paused community-project funding pending completion of a full-year appropriations bill; the grant’s status depends on federal budget action.

Speakers cited: Mr. Bonzo (finance staff), Mayor Victor Schneider, Councilwoman Susan Hoover.