8.2 SR 06-16-2025The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
City Council
Item Number
8.2
Meeting Date
June 16, 2025
Prepared By
Joe Stremcha, Business Services Director/Assistant
City Administrator
Item Description
Resolution 25-33: Establish Cannabis Enterprise
Fund
Reviewed by
Lori Stich
Cal Portner
Tina Allard
Action Requested
Approve, by motion, Resolution 25-33 establishing the Cannabis Enterprise Fund and authorizing a transfer in
the amount of $500,000 from the Liquor Fund to the Cannabis Fund.
Background/Discussion
This resolution will transfer $500,000 from the Liquor Fund to a newly created Cannabis Fund. This will
provide start-up funds necessary to launch Cannabound. Store architect fees, payroll, etc. will begin to draw
down funds as the Cannabis Business Plan is implemented.
Financial Impact
$500,000 will be transferred from the Liquor Fund to establish the Cannabis Fund.
Mission/Policy/Goal
Responsible for every dollar - good stewards.
Attachments
1. Resolution 25-33 to Establish Cannabis Fund
Page 627 of 637
City of Elk River
City Council
Resolution 25-33
A Resolution of the City Council of the City of Elk River Establishing a
Cannabis Fund and Authorizing a Transfer from the Liquor Fund to the
Cannabis Fund.
WHEREAS,Minnesota Statute Chapter 3545.0900 Fund Accounting states that a fund is
an independent accounting entity having its own assets, liabilities, obligations, revenues,
expenditures, reserves, and equity balances and funds must be established for the purpose of
accounting for those specific resources provided for the attainment of particular public
objectives, as designated by statute or rule; and,
WHEREAS,the City of Elk River wishes to establish an Enterprise Fund to account for
all cannabis related revenues, expenses, etc.; and,
WHEREAS,the Cannabis Fund may be used to pay staff wages, store architect fees,
construction costs, and any business operating expenses necessary; and,
WHEREAS,the Cannabis Fund will need a startup investment to cover staff wages, store
architect fees, construction costs, etc. until revenues exceed expenses and the startup
investment can be repaid in the future; and,
WHEREAS,the Liquor Fund will transfer $500,000 to the Cannabis Fund to create the
positive fund balance necessary to implement the Cannabis Business Plan; and,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk
River, Minnesota, as follows: that the City Council of the City of Elk River, Minnesota
establishes a Cannabis Fund to be used for operating a municipal cannabis store and
authorizes a transfer in the amount of $500,000 from the Liquor Fund to the Cannabis
Fund.
Passed and adopted this 16th day of June 2025.
John J. Dietz, Mayor
ATTEST:
Tina Allard, City Clerk
Page 628 of 637