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Council agrees to agendize use of first‑year cannabis tax receipts for capital priorities

Chico City Council · October 1, 2024
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Summary

Council agreed 6–0 (one absent) to place discussion of the city’s first‑year cannabis dispensary tax revenues — approximately $1.4 million — on a future agenda, with a councilmember suggesting the funds could contribute to Fire Station 6 and a new police station.

Council member Bennett asked the council to agendize a discussion about how to use first‑year revenue from the city’s cannabis dispensary income tax, which he said totals approximately $1,400,000. He proposed considering the funds for construction of Fire Station 6 and a new police station.

City staff said there is no pre‑set allocation policy for those cannabis funds; typically allocation guidance is set in budget policy. Council voted 6–0 (Mayor absent) to agendize a general discussion of cannabis revenue options so staff can present recommendations and policy options during the budget process.

The agendized item will allow council to consider whether to earmark the one‑time (or ongoing) receipts for capital projects, maintenance districts, or other priorities and whether policy changes are needed to guide future allocations.