Some Melrose Pot Revenue To Fund Cops, Schools, Abuse Prevention

MELROSE, MA — The Board of Aldermen narrowly voted Monday to send 1.5 percent of revenue derived from Melrose's recreational marijuana sales to a stabilization fund that will bolster substance abuse prevention, public safety and schools. The fund was initially aiming to earmark the full 3 percent excise tax. Instead, 1.5 percent of the excise tax will go to the stabilization fund while 4.5 percent — which is the remainder of the excise tax plus what is equal to 3 percent of the total sales Melrose collects as the host community — will go the general fund.

Alderman Mike Zwirko, who introduced the order at the beginning of the year, was pleased with the outcome.

"This is really important to me," Zwirko, who is one of five Melrose mayoral candidates, told Patch Monday night. "It's not going to answer all of our problems, but we can benefit from having this product in our community ... so let's dedicate revenue to areas that are impacted by it."

The stabilization fund will first go to city departments directly affected by the marijuana business, thanks to a change Zwirko said was floated by President of the Board Jen Lemmerman. For instance, if the police department has to be trained on how to detect people driving under the influence of marijuana, it would be paid for by the fund before, say, new history books for the high school.

The stabilization fund will have to be reapproved in three years. If it's not reapproved, any money in the fund at that point would go to the general fund.

The fund will go into effect July 1, but it's going to be awhile before it sees a dime. While the city has approved recreational marijuana sales at Garden Remedies, the Cannabis Control Commission still needs to sign off.

"It's very likely we won't have retail sales on marijuana in Melrose until 2020," Zwirko said.

The city hasn't even budgeted for marijuana revenue in its FY2020 projections. Officials have been hesitant to make revenue projections - the landscape of retail marijuana revenue will change as more retailers pop up - but Zwirko estimated that even if sales begin in January, the city could see $300,000 by June 30, the end of the fiscal year. That would mean $75,000 in the stabilization fund.

The mayor at the time will decide where the money goes, and the Board will approve or deny it.

Even with the compromises — most notably going from 3 percent to 1.5 percent — the order only got the eight votes required to pass. Aldermen Frank Wright, John Tramontozzi and Bob Boissele voted against it. Wright stated Monday night he did not oppose a fund but he thought 1.5 percent was too high.