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City manager: IM’s share of marijuana taxes may have peaked

IRON MOUNTAIN — Adult-use marijuana sales are expected to begin later this year in Ohio, which stands to put a dent in the marijuana taxes and fees distributed annually to municipalities and counties in Michigan.

Iron Mountain City Manager Jordan Stanchina made that observation as he noted the city will receive $118,172 this year through the Michigan Regulation and Taxation of Marijuana Act. That’s $59,086 for each of the two licensed retail stores in Iron Mountain — Rize and Lume.

Southern Michigan sales are likely to dip once Ohio sales start, so it’s possible the amount of taxes available to distribute has peaked, Stanchina told the city council Monday.

With the addition this summer of Higher Love Cannabis in Norway, Dickinson County has a total of three marijuana retail outlets. The county this year will receive a payment of $177,259 under the state’s distribution policy.

Mayor Dale Alessandrini said the formula is a windfall for the county, since it’s the municipalities who handle local marijuana licensing. “The county shouldn’t get a penny of it,” he remarked.

Last week the Michigan Department of Treasury reported that revenue was collected from 737 licensees among the state’s cities, villages and townships during the 2023 fiscal year and more than $290.3 million was available statewide for distribution from the Marihuana Regulation Fund.

Aside from $87.1 million in disbursements to municipalities and counties, $101.6 million was sent to the School Aid Fund for kindergarten through 12th grade education and another $101.6 million to the Michigan Transportation Fund.

If nothing changes, adult-use marijuana sales may begin this fall in Ohio, according to the Cincinnati Enquirer.

In other action, the city council:

— Renewed a mutual aid fire control agreement with the Michigan Department of Natural Resources. Also, the city will temporarily acquire a “brush truck” from the DNR for wildfire suppression. The city’s own truck is out of service for repairs and a 1986 Chevrolet is available from the DNR to fill in the gap. The only cost to the city is insurance and general maintenance, said Edwin Mattson, director of police and fire services.

— Voted 3-2 to initiate the Michigan Association of Chiefs of Police accreditation program. The ongoing annual cost to participate will be $6,325, but the initial cost will be lessened by a grant of up to $3,538 from liability insurance carrier Michigan Municipal Risk Management Authority and additional aid from MACP, including the application fee of $1,800 and two years of power standards at $550 per year. Among other things, the accreditation system offers software to help agencies determine if their policies need review, enhancement or creation. A team of trained assessors verifies that applicable standards have been successfully implemented.

Mattson and Deputy Director Jeff Solka recommended joining the process, noting that it may eventually be mandated by the state. Alessandrini was joined by council members Kyle Blomquist and Dave Farragh in voting yes while council members Mark Wickman and Ken Clawson voted no. Council members Pam Maule and Cathy Tomassoni were absent.

— Approved seeking a $2.1 million grant through the Federal Emergency Management Agency to acquire a new ladder truck for the fire department. The city’s match would be $105,000. While chances for landing the grant are low, Deputy Director of Fire Services Jeff Friedenstab recommended applying for it. The department’s current ladder truck is a 1991 model.

— Accepted a quote of up to $7,500 from Coleman Engineering to provide engineering for sanitary sewer replacement at Woodward and Carpenter avenues. The Michigan Department of Transportation, in cooperation with the city of Kingsford, is rebuilding Carpenter from Hamilton Avenue north to Woodward, which is the Iron Mountain city limits. MDOT will replace Iron Mountain’s clay tile sewer and install two manholes on Carpenter at the intersection of Woodward when the road is rebuilt later this year. The estimated cost is $43,600.

— In light of the Woodward Avenue project, approved an alternate route for the Independence Day parade. If the Woodward and Carpenter intersection is closed, the parade will detour to Kimberly and Detroit avenues, then back to Carpenter.

— Approved seeking two-year audit proposals by 4 p.m. March 18. Under the city’s charter, proposals for annual financial audits must be sought every two years. The current auditor, Clifton Larson Allen LLP, was paid $23,367 for services in 2023.

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