Mid-year cannabis update shows healthy reserves

Mid-year cannabis update shows healthy reserves

by Bill Knowles

TRINIDAD — The City of Trinidad released its mid-year cannabis update highlighting the revenues, totaling about $1.2 million with $669,000 allocated for expenditures for the second quarter of 2018, during its regular city council meeting on July 17 as they moved to approve an expenditure resolution asking for allocations from the marijuana tax fund, a sub-set of the general fund.

The city’s director of finance, Cheryl Navarette, reported that through May of 2018, the city brought in about $523,000 in marijuana revenue. The city also collected an additional $145,000 above the allocation for the first quarter resolutio,n giving the city around $669,000 to allocate. The city puts 30% of the revenues into a reserve account as well.

City requests for funds from the marijuana revenue account, a sub-account within the general fund, for 2018 projects totals 60% of the revenues, or about $543,009 of the $669,000 in allocations. Another $80,000 in funding is going to satisfy funding requests from outside the city. That totals another 10%, leaving 30% in marijuana tax revenues for reserves.

Areas of funding in city projects would be speed control signs, Central Park Ballfield renovations, Southside Ballfield renovations, anti-silapidation ordinance demolitions for the second quarter, a horticulture project, and funds to the Spring Fire firefighting efforts. The city will also fund two studies; one that will look at establishing a vulnerability index and will be conducted by staff and students from Denver University. The second will look at the quality of life for law enforcement officers. The total for these projects is about $272,000, nearly 50% of the total figure in allocations for the city projects.

The final city project is sick leave accruals liability transfer of $271,009, or around 49.9% of the allocated total of $623,000 in requests.

Click to Read  August 11, 2018

The area of expenditure requests coming in from the outside total about 10% or $80,000 in tax fund revenues for the second quarter. There are three at $25,000 each from Artocade, Inc., A.R. Mitchell Museum, and the Las Animas County Veterans’ Council. The Trinidad Triggers, on their second baseball request, are asking for $5,000.

With $669,000 in revenues from the city’s marijuana sales tax collection for the second quarter and a projected expenditure of $623,000, the city has underspent by around $27,000. This, combined with projections in revenue for the rest of the year, leaves only $44,000 to spend on additional outside funding requests for the remainder of 2018.

The marijuana tax fund account is a sub-set of and is located in the general fund.

Since January 2018, the city has collected about $1.2 million total in revenue from the production and sales of marijuana.

The June 2018 collections on the marijuana tax weren’t included in the report because the totals collected for Trinidad hadn’t arrived from the state at the time of the meeting.

A quick total of marijuana tax revenue from 2015 to the present looks somewhat like this: revenues garnered by the City of Trinidad for 2015, the beginning of sales for legalized recreational marijuana in the city, were $544,974.44; for 2016, $1,418,828.66; for 2017, $2,879,556.78; and for 2018 from January to the end of May, $1.2 million. The grand total in marijuana revenue for the City of Trinidad for the past 3-and a half years is $6,043,359.88.