At Tuesday’s Vista City Council meeting, Deputy Mayor Green requested the City Manager place a discussion item on the City Council meeting agenda to discuss adult use cannabis in Vista. The following is the letter Deputy Mayor Green read to council and the public.
Good Evening Madam Mayor & fellow council colleagues. This evening I bring before you a discussion item regarding adult use of cannabis within our city. As you know the voters approved Measure Z in 2018 along with measure AA. Measure Z has been implemented successfully and we have 11 successful dispensaries open and operating within our town. These medical dispensaries are estimated to generate 5.2 million dollars in Tax revenue for our city this fiscal year 7/1/2020-6/30/2021. This revenue is not only helping balance our budget, but is also allowing us as a council to allocate additional funding for special projects, and positions.
After the voters passed measure Z in 2018 there was a fear of the unknown in the community as to the focused impact these businesses would have on our city. General crime, increased drug use, DUI’s, and violence were some of the concerns of implementation. I’m happy to report the incidents at these businesses have been minimal. All of our licensed dispensaries have proven to be good players, while remaining in compliance, and submitting annual audits. Since 9/2019 calls for service reported from all dispensaries in town have been consistent with or lower than the average calls for service our local eateries, grocery stores, bars, convenience, and liquor stores report.
As I previously stated, in 2018, the voters passed measure AA in addition to measure Z. This approved measure has allowed us to create new business opportunities for our existing businesses, while creating new innovative businesses and jobs in the; testing, manufacturing, delivery, and distribution fields. This measure also allows us as a council, to implement Adult use within our city, and set a tax to be collected upon implementation. Measure AA allows us to set a tax rate between 6%-12% on adult use within our city. I would propose we direct staff to look to create an ordinance implementing adult use within our city at a tax rate of 7%. This tax rate is the same rate as the medical cannabis tax rate, which was approved by the voters. This tax is not excessive, and should allow dispensaries to generate more revenue, and cut down on the outside businesses, supplying adult use products, via delivery, within our city. Conservatively this policy change could add an additional 15-20% in revenues for our local businesses. Those revenues generate additional taxes that could be used to benefit our city and citizens tremendously. Based off of the revenues received this year from a financial standpoint, the adult use revenue could generate an additional $780,000-$1,040,000 annually.
Regardless of where you stand on the Marijuana issue, we live in a state and a city, where the majority of voters, have approved it. It has been approved for medical, and adult use, in multiple election cycles. It is our responsibility as an elected body, to create policies that allow us to carry out the will of the voters. Other cities in our county have seen the success of this industry, and are trying to fast track their processes. We owe it to our businesses, our voters, and our city, to look into making this a possibility, and come up with an ordinance in a timely manner. I don’t want to put an official date on this, except to direct staff for as soon as possible, per our attorneys direction. There is no official motion needing to be made, simply a majority consensus needed to direct staff on what to do. I don’t know all the particulars and plan to leave it up to our legal department to insure we are in compliance with measure Z & Measure AA as passed by the voters. Our legal department can make sure we are not opening our city up to any undue liability, and direct us to the path of implementation.
I am asking for consensus from this council on the following:
1. We direct staff to come up with an ordinance that would allow Adult Use of Marijuana within our City.
2. Staff/Legal would determine the best course of action for authorized store fronts.
3. Tax rate on adult use be set and 7% (per approved verbiage in measure AA).
4. This ordinance be prepared and brought back as soon as possible for an official
vote of the council.
Next, Mayor Ritter asked for public input. There were 3 speakers in opposition and 3 speakers in favor. Council members discussed the item and consensus was to have staff report back to them.
