Piqua Looks At Cannabis Revenue

Two Medical Marijuana Dispensaries Exist in the Community

In 2016, Ohio became the 25th state to allow marijuana to be prescribed for certain medical conditions. Medical marijuana is highly regulated through the state and is sold through licensed dispensaries. The legislation that brought forward medical marijuana also began a process that allowed communities to make decisions on whether medical marijuana dispensaries to be established in their own community. Piqua made the decision to allow such dispensaries, and two of those dispensaries exist in the community. The two dispensaries in the City of Piqua are the only two dispensaries in the entire county.

Later in 2023, voters in Ohio overwhelmingly approved State Issue 2 which allows for adult-use of marijuana for nonmedical purposes. Currently, the state is putting forward rules that will allow established medical marijuana dispensaries the opportunity to sell marijuana for nonmedical purposes. Thus allowing for a larger market, which will undoubtedly lead to more revenues for state and local governments.

At their last City Commission Meeting, Piqua officials talked about a proposed ordinance. Ordinance O-9-24 is focused on allocating the excise tax revenue from cannabis sales directly to the Parks Department for improvements. With the legalization of recreational marijuana in Ohio, a 10% excise tax is imposed on sales, of which 36% is allocated to the host communities where the sales occur. For Piqua, with its two dispensaries, this revenue stream could be substantial, potentially reaching up to $200,000 annually, depending on sales volume.

The proposed ordinance aims to direct this new revenue entirely to the Parks Department, touching on crucial aspects of financial planning, community services, and public policy. The commission's discussion revealed differing opinions on how this new revenue should be utilized. On one hand, there is a pressing need for immediate staffing in the Parks Department. At the meeting, the City Manager argued that currently the department is understaffed and the department's ability to maintain and operate park facilities is compromised. The proposed funding could increase staff from three full-time positions to five full-time positions and would significantly improve day-to-day park maintenance and overall user experience.

On the other hand, some commissioners and citizens advocate for investing in long-term capital improvements. This approach would focus on enhancing park facilities and infrastructure, such as building new playgrounds, sports facilities, or upgrading existing structures. Capital investments have a lasting impact, potentially attracting more visitors and events, thereby boosting local engagement and tourism. A balanced approach was suggested, initially focusing on staffing to handle current needs and gradually shifting towards capital improvements as revenue stabilizes.

Public input during the meeting highlighted a strong desire to see tangible improvements in the parks, both in terms of maintenance and new facilities. Citizens called for transparency in how the funds would be used, ensuring that the revenue directly benefits the community as intended. This feedback underscores the importance of effective and transparent use of these funds, which can serve as a model for leveraging marijuana tax revenue for public benefit.

The allocation of marijuana tax revenue to the Parks Department reflects a broader discussion on community values and priorities. Investing in parks enhances public health and community well-being by providing spaces for recreation, exercise, and social interaction. Well-maintained parks can reduce crime rates and increase property values in surrounding areas. Furthermore, parks and recreational facilities can attract visitors, hosting events and activities that boost the local economy. Improved parks can make Piqua more attractive for potential residents and businesses, contributing to broader economic development goals.

To ensure successful implementation of this ordinance, detailed budget planning is essential. The Parks Department will be challenged to create a comprehensive budget outlining how the new funds will be allocated between staffing and capital improvements; a potential $200,000 increase in the park department budget can help alleviate some of the current conditions that exist. Any spending plan should be presented to the commission and the public to ensure transparency and accountability.

In addition, regular updates on the use of the funds can build public trust and demonstrate the tangible benefits of the new revenue. Reports should include metrics on park usage, maintenance improvements, and any new facilities or upgrades. Ongoing engagement with the community is crucial to gather input on park priorities and ensure that the funds meet public needs and expectations. Public forums, surveys, and collaborations with local organizations can facilitate this engagement.

Ordinance O-9-24 represents a strategic opportunity for Piqua to enhance its public parks and recreational facilities using the new revenue from adult-use cannabis sales; in fact, Piqua will be the only community in the county that has this recurring revenue stream. By addressing both immediate staffing needs and planning for long-term capital improvements, the city can ensure that this revenue provides maximum benefit to the community. Transparency, regular reporting, and active community engagement will be key to the successful implementation of this ordinance and maintaining public trust in how these funds are managed. At the last meeting, the measure had its first reading and will be read two more times before a final vote on adoption.

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