HomeMy WebLinkAboutCannabis Industry Tax Oversight Committee 2022-02-10 Agenda PacketCannabis Industry Tax Oversight Committee
Thursday, February 10, 2022
4:00 PM - 5:00 PM
Join Virtual Meeting via Zoom:
https://tinyurl.com/2pkxesvj
Meeting ID: 851 4574 5111
Passcode: 493753
Phone: 1-669-900-9128
Agenda
1. Introductions
2. Public Comment – Items Not on The Agenda
3. Cannabis Program Overview –
• Danielle O’Leary, Director of Economic Development + Innovation
• Victoria Lim, Senior Management Analyst, Economic Development
4. Financial Audit Presentation –
• Nadine Hade, Finance Director
5. Questions
6. Adjournment
____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: February 1, 2021
Disposition: Accepted report
Agenda Item No: 5.b
Meeting Date: February 1, 2021
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Economic Development
Prepared by: Danielle O’Leary,
Economic Development Director
City Manager Approval: ______________
TOPIC: ANNUAL MEASURE G OVERSIGHT COMMITTEE REPORT
SUBJECT: MEASURE G CANNABIS BUSINESS TAX OVERSIGHT COMMITTEE REPORT FOR FISCAL YEAR 2019-2020
RECOMMENDATION: ACCEPT REPORT
BACKGROUND: On March 6, 2018, the San Rafael City Council voted by Resolution 14542
to place Measure G, the Commercial Cannabis Business Tax on the June 5, 2018 ballot.
Ordinance 1961 was approved by San Rafael voters establishing an ongoing tax on cannabis
businesses of up to 8% on gross receipts for cannabis businesses operating in the City of San
Rafael. Different sectors of the cannabis industry are taxed at different tax rate structures.
Currently, testing labs are taxed at 1%, cannabis infusion manufacturers at 3%, cannabis
wholesale distribution at 1%, and cannabis retail non-storefront delivery at 4%.
Similar to previous voter measures, Measure S and Measure E, the enabling Cannabis Business
Tax Ordinance for Measure G called for the creation of an independent oversight committee to
review the collection and expenditure of this tax revenue. The committee was established on
October 21, 2019 by City Council Resolution No. 14731, which set forth the roles, responsibilities
and duties of the committee. On February 18, 2020, the City Council appointed five members
of the public to the committee. The current members are:
•Drew Bulfer – February 18, 2020 to February 28, 2022
•Abi Rivas - February 18, 2020 to February 28, 2024
•Stephen Roth – February 18, 2020 to February 28, 2024
•Erik Revai – February 18, 2020 to February 28, 2024
•Jennifer Dye - February 18, 2020 to February 28, 2022
The purpose of this report is to present and recommend acceptance of the Measure G Oversight
Committee report of December 17, 2020 (Exhibit A).
SAN RAFAEL
THE CITY WITH A MISSION
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
ANALYSIS:
The Measure G Oversight Committee met virtually on December 17, 2020, to review the actual
Measure G revenues and expenditures for fiscal year 2019-2020. Staff reported that during the
fiscal year 2019-2020, $410,133 of Measure G Cannabis Business Tax proceeds were
expended. Authorized Measure G expenditures to maintain/enhance City of San Rafael services
include:
• Administer a cannabis oversight program
• Enhance police and fire services
• Repair potholes, maintaining city streets and sidewalks
• Enhance community centers and facilities
The Measure G Cannabis Business Tax Oversight Committee’s report provides the Committee’s
conclusions that Measure G revenues received during fiscal year 2019-2020, were “properly
allocated in accordance with Measure G and approved guidelines.”
FISCAL IMPACT: There is no fiscal impact associated with the acceptance of the Measure G
Cannabis Business Tax Oversight Committee report.
RECOMMENDED ACTION: Accept the Measure G Cannabis Business Tax Oversight
Committee Report for Fiscal Year 2019-2020.
ATTACHMENT:
Exhibit A: Measure G Oversight Committee Report
City of San Rafael
Measure G Oversight Committee Report
February 10, 2022
The City of San Rafael Measure G Oversight Committee met on February 10, 2022, and received
a report from the City of San Rafael’s Finance Director, Nadine Atieh Hade on the receipt and
expenditure of funds during the fiscal year July 1, 2020 to June 30, 2021 pursuant to voter
approved Measure G (San Rafael Ordinance 1961).
The Measure G Oversight Committee is required to review the collections and expenditures of
Measure G funds, and report to the City Council and the community annually on the
expenditures under Guidelines and Policy adopted by the San Rafael City Council.
After review, the Measure G Oversight Committee finds that these funds were properly
allocated in accordance with the Measure and approved guidelines.
Respectfully Submitted:
Approved via email 02/10/2022 ________________________ Erik Revai, Measure G Oversight
Approved via email 02/10/2022 ________________________ Abi Rivas, Measure G Oversight
Approved via email 02/10/2022 ____________________________ Chuck Friede, Measure G Oversight
ASSETS
Cash and investments 421,824$
Restricted cash and investments
Receivables:
Accounts
Taxes 140,774
Grants
Interest
Loans
Prepaids
Total Assets 562,598
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Deposits payable
Developer deposits payable
Due to other funds
Unearned revenue
Total Liabilities -
Fund Balance:
Nonspendable
Restricted 562,598$
Committed
Assigned
Unassigned
Total Fund Balances 562,598
Total Liabilities and Fund Balance 562,598$
CITY OF SAN RAFAEL
MEASURE G - CANNABIS BALANCE SHEET
FOR THE YEAR ENDED JUNE 30, 2021
REVENUES
Taxes and special assessments 628,118$
Fines and forfeitures
Use of money and properties
Intergovernmental
Charges for services
Other revenue
Total Revenues 628,118
EXPENDITURES
Current:
General government 107,033
Public safety 34,460
Public works and parks
Culture and recreation
Capital outlay
Total Expenditures 141,493
486,625
OTHER FINANCING SOURCES (USES)
Transfer in
Transfer out
Total Other Financing Sources (Uses)
Net Change in Fund Balance 486,625
Fund Balance, Beginning 75,973
Fund Balance, Ending 562,598$
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
CITY OF SAN RAFAEL
MEASURE G - CANNABIS STATEMENT OF REVENUES,
EXPENDITURES AND
CHANGES IN FUND BALANCE
FOR THE YEAR ENDED JUNE 30, 2021
01/24/2022
CITY OF SAN RAFAEL
1
8:56AM
Page:expstat.rpt Expenditure Status Report
7/1/2020 through 6/30/2021
Periods: 0 through 15
Measure G - Cannabis
Account Number
Adjusted
Appropriation Expenditures
Year-to-date
Expenditures
Year-to-date
Encumbrances Balance
Prct
Used
216 Measure G - Cannabis
216-10 Finance Department
216-10-8000 Personnel Services
13,007.28 12,055.45 12,055.45 92.68216-10-41001-8111 Classified Personnel 0.00 951.83
2,128.08 2,165.16 2,165.16 101.74216-10-41001-8321 Group Life/Health Insurance 0.00 -37.08
165.03 175.21 175.21 106.17216-10-41001-8324 Medicare Tax 0.00 -10.18
308.40 329.81 329.81 106.94216-10-41001-8325 Internal Service Chgs-Workers Comp 0.00 -21.41
7,039.44 6,867.94 6,867.94 97.56216-10-41001-8326 Retirement 0.00 171.50
135.60 135.59 135.59 99.99216-10-41001-8328 Internal Service Chgs-Dental Insurance 0.00 0.01
1,328.16 1,295.76 1,295.76 97.56216-10-41001-8331 Internal Service-Chgs-Leave Payout 0.00 32.40
15.24 15.15 15.15 99.41216-10-41001-8332 Vision Plan 0.00 0.09
Total Finance Department 24,127.23 23,040.07 23,040.07 0.00 1,087.16 95.49
216-31 Police Department
216-31-8000 Personnel Services
0.00 390.03 390.03 0.00216-31-41001-8101 Shift Differential 0.00 -390.03
0.00 439.69 439.69 0.00216-31-41001-8109 Light/Modified Duty Pay 0.00 -439.69
13,261.20 12,498.06 12,498.06 94.25216-31-41001-8111 Classified Personnel 0.00 763.14
0.00 2,715.43 2,715.43 0.00216-31-41001-8113 Overtime Pay 0.00 -2,715.43
0.00 727.20 727.20 0.00216-31-41001-8114 Holiday Pay 0.00 -727.20
663.00 646.92 646.92 97.57216-31-41001-8115 Education Incentive Pay 0.00 16.08
663.12 646.80 646.80 97.54216-31-41001-8122 Specialty Pay 0.00 16.32
331.56 323.40 323.40 97.54216-31-41001-8123 Specialty Pay-SWAT 0.00 8.16
0.00 146.00 146.00 0.00216-31-41001-8127 Uniform Allowance 0.00 -146.00
911.28 928.35 928.35 101.87216-31-41001-8321 Group Life/Health Insurance 0.00 -17.07
216.12 268.52 268.52 124.25216-31-41001-8324 Medicare Tax 0.00 -52.40
1,503.84 1,579.92 1,579.92 105.06216-31-41001-8325 Internal Service Chgs-Workers Comp 0.00 -76.08
11,022.12 11,686.77 11,686.77 106.03216-31-41001-8326 Retirement 0.00 -664.65
135.60 135.84 135.84 100.18216-31-41001-8328 Internal Service Chgs-Dental Insurance 0.00 -0.24
1,353.96 1,321.06 1,321.06 97.57216-31-41001-8331 Internal Service-Chgs-Leave Payout 0.00 32.90
6.36 6.31 6.31 99.21216-31-41001-8332 Vision Plan 0.00 0.05
Total Police Department 30,068.16 34,460.30 34,460.30 0.00 -4,392.14 114.61
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01/24/2022
CITY OF SAN RAFAEL
2
8:56AM
Page:expstat.rpt Expenditure Status Report
7/1/2020 through 6/30/2021
Periods: 0 through 15
Measure G - Cannabis
Account Number
Adjusted
Appropriation Expenditures
Year-to-date
Expenditures
Year-to-date
Encumbrances Balance
Prct
Used
216-90 Economic Development Department
216-90-8000 Personnel Services
400.00 0.00 0.00 0.00216-90-41001-8101 Shift Differential 0.00 400.00
300.00 0.00 0.00 0.00216-90-41001-8109 Light/Modified Duty Pay 0.00 300.00
186,358.44 32,487.33 32,487.33 17.43216-90-41001-8111 Classified Personnel 0.00 153,871.11
1,000.00 0.00 0.00 0.00216-90-41001-8114 Holiday Pay 0.00 1,000.00
647.00 0.00 0.00 0.00216-90-41001-8115 Education Incentive Pay 0.00 647.00
630.00 630.00 630.00 100.00216-90-41001-8117 Automobile Allowance 0.00 0.00
647.00 0.00 0.00 0.00216-90-41001-8122 Specialty Pay 0.00 647.00
323.00 0.00 0.00 0.00216-90-41001-8123 Specialty Pay-SWAT 0.00 323.00
146.00 0.00 0.00 0.00216-90-41001-8127 Uniform Allowance 0.00 146.00
4,103.65 3,802.07 3,802.07 92.65216-90-41001-8321 Group Life/Health Insurance 0.00 301.58
570.60 510.53 510.53 89.47216-90-41001-8324 Medicare Tax 0.00 60.07
436.80 391.15 391.15 89.55216-90-41001-8325 Internal Service Chgs-Workers Comp 0.00 45.65
20,857.20 17,479.20 17,479.20 83.80216-90-41001-8326 Retirement 0.00 3,378.00
338.88 282.37 282.37 83.32216-90-41001-8328 Internal Service Chgs-Dental Insurance 0.00 56.51
4,017.60 3,385.32 3,385.32 84.26216-90-41001-8331 Internal Service-Chgs-Leave Payout 0.00 632.28
29.16 26.49 26.49 90.84216-90-41001-8332 Vision Plan 0.00 2.67
Total Personnel Services 220,805.33 58,994.46 58,994.46 0.00 161,810.87 26.72
216-90-9000 Non-Personnel Services
25,000.00 25,000.00 25,000.00 100.00216-90-41001-9555 Software Licensing 0.00 0.00
Total Non-Personnel Services 25,000.00 25,000.00 25,000.00 0.00 0.00 100.00
Total Economic Development Department 245,805.33 83,994.46 83,994.46 0.00 161,810.87 34.17
Total Measure G - Cannabis 300,000.72 141,494.83 141,494.83 0.00 158,505.89 47.16
Grand Total 300,000.72 141,494.83 141,494.83 47.16 0.00 158,505.89
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