LAKE COUNTY >> Without factoring in the unknown of cannabis-related tax revenue, Lake County projects they could potentially see a deficit of around $600,000 once the cultivation ordinance is in place and necessary positions filled.
“We met with the Community Development Director specifically and talked through his projection for numbers which led to financial projections, as well, and we also consulted with the department heads,” County Administrative Officer Carol Huchingson said.
The numbers were examined by a Finance Subcommittee that is made up of Cathy Saderlund the Auditor-Controller for the county, Barbara Ringen the Treasurer-Tax Collector, Jeff Rein Chief Deputy County Administrative Officer, Stephen Carter Deputy County Administrative Officer and Huchingson.
The review was an effort to reconcile permits and fees for commercial cannabis growth with the need to fill positions to take care of permits, compliance monitoring and other enforcement that come with regulation.
The mathematics are tricky and do not necessarily amount to a loss.
Huchingson said when looking at the number of people who have Water Board Permits and the potentials for each application the total amount of revenue the county would make with the current fees are around $274,298.
The price for a Minor Use Permit is $1,161 and the price for a Major Use Permit is $2,721. Every year, as part of the self-certification process, there is a fee for the growers of $760. These are only some of the fees that are listed.
Community Development Director Bob Massarelli said the county has received a total of 41 applications and 25 of them have been issued a certification of compliance. They are still receiving more applications and doing site reviews as they come in.
“We have received 29 emails from the state for permits and a vast majority of them, 22, is for medium outdoor and they are easily split between medical and adult use. That is the bulk of the applications coming from the state level,” Massarelli said.
Huchingson said the county will need to have at minimum of eight new staff members for various departments. This includes a Senior Planner, a Planner, a Building Inspector, a Community Development Technician, an Accountant, a Deputy Sheriff and one Inspector.
But this represents a savings, at least on paper.
“I expected to hear that this wasn’t enough staffing we looked at this as bare bones and in fact, these numbers are far less than what the Community Development Department projected a year ago. Bob had projected three times this much staffing,” Huchingson said.
The county anticipates that the cost of staffing will be $537,689 and for services and supplies will be an additional $153,500 annually.
Hence the potential for deficit figures.
However, a tax on the cultivation of the product will counter that figure, although it is still unknown how much revenue will be brought in. This information will be better understood once applications are approved and the taxable acreage recorded.
When Measure C passed in the county, it allowed for a charge of $1 per square foot for outdoor cultivation, $2 per square foot for mixed-light cultivation and $3 per square foot for indoor cultivation.
There will not be a workshop on April 19 Huchingson said due to the timing of applications and other work the county will be doing in regards to permits for Cannabis Cultivation. The board is currently looking at setting another time to host the workshop.
