Kent city task force recommends legalizing marijuana businesses

A city financial task force of 18 residents recommended in its final report to the Kent City Council and mayor that the city should consider removing a ban against the sale and production of recreational and medical marijuana.

The council received the Final Financial Sustainability Task Force Report at its June 21 meeting. The 38-page report included the following statement about legalizing marijuana as allowed by the state:

“The task force recommends that the mayor and council look at licensing production, wholesale and retail marijuana operations in the city,” according to the report. “The potential to generate new, incremental, business and occupation taxes, sales taxes and share in the allocation of state marijuana taxes could be a new source of revenue for the city.

“The task force recognizes that public safety concerns about marijuana trade were justified at the time licensing proposals were first submitted, shortly after the public vote (in 2012) to legalize it was adopted. Time has passed and it would be now appropriate for the city to move forward carefully, but to re-examine whether or not the level of public risk has increased to the level that outweigh the benefits of increased revenue; and consider lifting the current moratorium. Opportunity to gather public input would be very important before adopting licensing requirements.”

Three recreational marijuana retail stores would bring in about $350,000 per year in sales tax revenue, according to a city estimate in 2014. If the council considers removing its ban, city staff would research potential marijuana revenue from the sales tax, B&O tax and state shared revenue.

Kent resident Sandi Lynden told the council during its public comment period last week that she likes the proposal to remove the ban against marijuana businesses.

“The Financial Sustainability Task Force recommended marijuana as a new revenue source for our city,” Lynden said. “The task force is comprised of Kent citizens and was created to take a fresh objective look at city government and help educate the public about the city’s financial future.”

Task force members ranked allowing marijuana businesses as the sixth most preferred revenue source.

The group listed banked property tax as the top priority followed by higher utility fees; vehicle tab fees; economic development to attract new businesses; and an increase in the B&O tax.    Kent has saved about $6 million in banked capacity because the city reduced its property tax levy by $1 per $1,000 assessed valuation in 2011 after voters in 2010 approved the formation of the Kent Regional Fire Authority (RFA). The RFA levies a property tax of $1 per $1,000 assessed valuation.

As with its preliminary report in May, the committee said the city’s priorities to keep Kent financially viable should be increases in police staffing, street and road maintenance and economic development; better maintenance of water, sewer and drainage systems; and implementing an improved information technology (IT) system.

The task force didn’t elevate parks to a top-five priority.

“There is agreement that parks play a valuable role in the city,” said Jerry Coupe, committee chairman, to the council. “However, as we looked at items key to financially sustainability, we did not elevate parks.”

But the task force recognized the large backlog of maintenance needed at city parks.

“The only way to address (park) needs is with a special (property tax) levy and limit it to parks and recreation and not combine it with other city needs,” Coupe said.

Council President Bill Boyce told Coupe that the task force report will help when the council begins budget deliberations later this year.

“I’m very pleased with what’s in here,” Boyce said. “I am sure as we go through the budget process we will look at this document and recommendations.

You did an excellent job to make this a valuable document.”