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City of Elk River <br />City Council <br />Resolution 25-33 <br />A Resolution of the City Council of the City of Elk River Establishing a <br />Cannabis Fund and Authorizing a Transfer from the Liquor Fund to the <br />Cannabis Fund. <br />WHEREAS,Minnesota Statute Chapter 3545.0900 Fund Accounting states that a fund is <br />an independent accounting entity having its own assets, liabilities, obligations, revenues, <br />expenditures, reserves, and equity balances and funds must be established for the purpose of <br />accounting for those specific resources provided for the attainment of particular public <br />objectives, as designated by statute or rule; and, <br />WHEREAS,the City of Elk River wishes to establish an Enterprise Fund to account for <br />all cannabis related revenues, expenses, etc.; and, <br />WHEREAS,the Cannabis Fund may be used to pay staff wages, store architect fees, <br />construction costs, and any business operating expenses necessary; and, <br />WHEREAS,the Cannabis Fund will need a startup investment to cover staff wages, store <br />architect fees, construction costs, etc. until revenues exceed expenses and the startup <br />investment can be repaid in the future; and, <br />WHEREAS,the Liquor Fund will transfer $500,000 to the Cannabis Fund to create the <br />positive fund balance necessary to implement the Cannabis Business Plan; and, <br />NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk <br />River, Minnesota, as follows: that the City Council of the City of Elk River, Minnesota <br />establishes a Cannabis Fund to be used for operating a municipal cannabis store and <br />authorizes a transfer in the amount of $500,000 from the Liquor Fund to the Cannabis <br />Fund. <br />Passed and adopted this 16th day of June 2025. <br />John J. Dietz, Mayor <br />ATTEST: <br />Tina Allard, City Clerk <br />Page 628 of 637