Colorado towns from big to small are utilizing marijuana taxes to help fund projects from fixing potholes to helping homeless
From small towns that barely dot the map to the state’s largest urban areas, Colorado marijuana taxes and revenue from retail marijuana sales is helping communities address homelessness, send children to college, patch potholes, secure water rights and fund an array of projects.
Aurora is using $1.5 million of its revenue from pot sales and fees to address its homeless issue. Money also is going to road improvements and a new recreation center.
Adams County has earmarked more than $500,000 for scholarships for low-income students. Wheat Ridge keeps its revenue in the city’s general fund, and it’s used in a variety of areas. The same goes for Northglenn, where five marijuana stores generated $730,000 in 2015. The money will go toward water purchases and capital improvements to infrastructure and city facilities.
Although many cities stash the cash in their general funds, Aurora City Councilman Bob Roth, who led a committee that drafted retail marijuana regulations, said it was important to show residents exactly how the money is being spent — especially those who opposed marijuana legalization.
“One thing I felt very strongly about was that it not just to go the general fund but kept in a separate bucket so we could show the community what specifically we were doing with it,” Roth said.
There are 62 cities and 22 counties in Colorado that allow retail marijuana sales, according to the state. Marijuana sales this year are expected to reach $1 billion in Colorado, and local government entities are cashing in.
“A lot of communities have struggled to have enough revenue to fill potholes and to keep the street lights on,” said Mike Elliott, executive director of the Marijuana Industry Group. “What we’ve seen out of Aurora is that money going to address homelessness. It’s a great use for the money.”
Henny Lasley, project director for Smart Colorado, a group that advocates for protections for children from marijuana, noted that about 70 percent of communities in the state have opted out of retail marijuana.
Lasley said pot proceeds should go toward marijuana education and other efforts to enlighten the public on pot.
“We believe that if you are going to collect money from marijuana, let’s do something with marijuana from those taxes,” she said.
In Aurora, the money earmarked to help the homeless will be used to purchase two vans for local nonprofit outreach groups to use to transport people to shelters and for other needs, said Nancy Sheffield, project manager for Aurora’s neighborhood service department.
Two outreach workers will be funded with the money for the Comitis Crisis Center and the Aurora Mental Health program.
“Our City Council has been very wise in how they’re allocating the revenue,” Sheffield said.
By the end of this year, Aurora expects to see $8.1 million in sales taxes and fees since the first pot shop opened in Aurora in October 2014, city spokeswoman Julie Patterson said.
Aside from the $1.5 million for the homeless, about $3.8 million is earmarked for improvements to the East Alameda Avenue and Interstate 225 intersection.
Another $2.8 million will go toward bonds for a new recreation center in the growing southeast part of Aurora.
And $680,000 will be put in reserve to help outreach programs that work with the city’s needy. Because the number of pot shops is capped at 24 in Aurora, revenue is expected to stabilize going forward, with about $6.4 million in 2017, 2018 and 2019.
Even Pueblo West, which isn’t a town or city but a special district west of Pueblo, is seeing marijuana revenue.
Pueblo West received about $200,000 from the county, and it plans to use that to fill pot holes and fix roads. For a district of roughly 28,000 residents that is funded primarily through property taxes, it has a limited revenue source. The money from marijuana sales is a “big deal,” district officials said.
Wheat Ridge has five locations that sell recreational marijuana, and four of them also sell medical pot, said city spokeswoman Maureen Harper. She said the city saw a total of $530,105 in sales taxes and fees associated with marijuana sales last year.
That revenue goes directly into Wheat Ridge’s general fund and is not earmarked for any one program.
“We treat revenue generated by marijuana like we treat other general fund revenue, and it helps support city operations,” Wheat Ridge Mayor Joyce Jay said. “At this point, I don’t see the number of establishments increasing here in Wheat Ridge.”
In Denver, which has the state’s most extensive recreational and medical marijuana markets, the city took in $29 million last year from all sales by taxes and licensing fees.
That money goes into the general fund, and Denver devotes some to ramped-up regulation, enforcement, public health and education efforts — budgeted at $9.1 million this year. It also has dipped into pot taxes to cover higher costs on a recreation center project.
In Northglenn, five recreational marijuana stores generated $730,000 in 2015, spokeswoman Margo Aldrich said. The city also has medical marijuana shops. Northglenn has seen about $3.6 million in total revenue since 2009. The money is used for capital projects, and some is used for purchasing water rights, she said.
Elliott said part of the money cities and counties receive is used to properly regulate and license the industry — and that makes communities safer.
“There’s a lot of money left over to address safety issues that come up or really take on projects that these local communities do not necessarily have the funds to deal with,” he said. “For some communities, this tax revenue has made a huge difference.”
No matter the size of the community, retail marijuana has been, well, a big hit.
For Mountain View, a 12-block enclave nestled among Wheat Ridge, Lakeside and Denver, the extra revenue has been a godsend. Known more for funding its budget through speeding tickets, which Mayor Jeff Kiddie said is not true, the influx of cash is much needed.
The town has two pot shops that both sell recreational and medical marijuana. It uses that revenue to take care of streets, alleys and other improvements.
“We have such as small tax base,” said Kiddie, who opposed allowing pot stores in Mountain View. “Medical and retail marijuana have definitely helped the town’s bottom line. I’d be lying if I said it didn’t.”
Read the full Denver Post story here