HomeMy WebLinkAboutRes 2017-80 - Establish Cannabis Compliance Fund RESOLUTION NO. 2017-80
STAFF REPORT
CITY OF PALM DESERT
FINANCE DEPARTMENT
MEETING DATE: December 14, 2017
REQUEST: Approve Resolution No. 2017- 80 establishing the Cannabis
Compliance Fund and committing the monies within the fund for the
purpose of compliance and administrative expenditures for any
activities related to the regulation of cannabis production,
distribution, and sales.
Recommendation
By Minute Motion, that the City Council approve Resolution No. 2017-
80 establishing the Cannabis Compliance Fund and committing the
monies in the fund for the purpose of compliance and administrative
expenditures for any activities related to the regulation of production,
distribution and sales.
Strategic Plan
Not applicable.
Background Analysis
In February 2009, the Governmental Accounting Standards Board (GASB) issued
Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions.
Implementation of Statement No. 54 for the City of Palm Desert began on June 30,
2011.
Statement No. 54 redefines the categories and terminology used to describe the
components that make up a fund balance. The new categories and terminology reflect
an approach that focuses not on financial resources available for appropriation within a
fund, but on the extent to which the City is bound to honor restrictions on the specific
purposes for which amounts in the fund can be spent.
In complying with GASB No. 54 and its requirements, staff recommends that a new fund
be established to accept cannabis related revenue including fees and taxes and commit
the monies in the fund for the purpose of assisting to offset compliance and
administrative expenditures for cannabis-related activities. Such activities might include
costs for public safety, additional enforcement activities, specialized equipment, training
for staff and/or public safety personnel, and support/consulting services (i.e.
compliance, audits, specialized legal services, implementation processes, application
reviews, research, cost projections, software, analysis, and impact evaluations).
Staff Report
Approval of Resolution No. 2017- 80 , Establishing Cannabis Compliance Fund
December 14, 2017
Page 2 of 2
Fiscal Impact
It is unknown at this time whether the monies in the fund will cover all expenditures for
cannabis-related activities. Staff will continue to monitor the fund and make any
necessary recommendations as they are identified. Approval of this recommendation
will allow the City to commit the funds received for the purpose stated above.
Prepare b : Jose is Espinoza, Assistant Finance Director
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ATTACHMENT: Resolution No. 2017- 80
G:\Finance\Niamh Ortega\Fund establishment\SR-Approve res re establish cannabis compliance fund 121417 jm rev docx
RESOLUTION NO. 2017- 80
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA ESTABLISHING THE CANNABIS COMPLIANCE FUND AND
COMMITTING THE MONIES WITHIN THE FUND FOR THE PURPOSE OF
COMPLIANCE AND ADMINISTRATIVE EXPENDITURES FOR ACTIVITIES
RELATED TO REGULATION OF THE PRODUCTION, DISTRIBUTION, AND
SALE OF CANNABIS AND CANNABIS-CONTAINING PRODUCTS
WHEREAS, the Governmental Accounting Standards Board (GASB) has issued
Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions; and
WHEREAS, Statement No. 54 redefines the categories and terminology used to
describe the components that make up a fund balance.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert,
California, that the following actions are hereby taken as follows:
Section 1. That the City Council finds that all the foregoing recitals are true and
correct and are hereby incorporated and adopted by the City Council as fully set forth
herein; and
Section 2. That the City establish the Cannabis Compliance Fund; and
Section 3. That the City commits the funds within the Cannabis Compliance Fund for
the purpose of compliance and administrative expenditures for cannabis related
activities.
Section 4. That the City Manager, the Director of Finance and their designees are
hereby authorized, jointly and severally, to execute and deliver any and all documents
necessary and to do all things which they deem necessary or proper in order to
effectuate the purposes of this Resolution and the actions contemplated hereby, and any
such actions previously taken by such officers are hereby ratified, confirmed and
approved.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Palm Desert,
California, at its regular meeting held on the 14th of December, 2017 by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
JAN C. HARNIK, MAYOR
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA