Pueblo West board narrowly OKs spending 25% of marijuana excise tax revenues on events

A proposal to invest 25% of marijuana excise tax revenues to sponsor community events narrowly passed by a 3-2 vote Monday during the Pueblo West Metro Board meeting.

Pueblo West Metro Board Treasurer Brian Axworthy said he proposed the idea of investing some of the marijuana excise tax funds to provide for community events such as the hugely popular Fourth of July Wet Parade and fireworks show. The board voted several years ago to earmark 30% of the funds for a new aquatic center and that has raised $884,242 for that fund since 2019.

The remainder of the marijuana excise tax funds have been going into the general fund.

"I now realize all the work that is invested in realizing these events. We can still take donations (from businesses) for the fireworks show, but I don't think we should rely 100% on donations," Axworthy explained.

Axworthy said the marijuana excise tax revenue may not be a reliable funding stream as the revenue has been dropping.

The marijuana excise tax is expected to generate $240,000 this year. Last year, the tax generated $412,219 and in 2021 it generated an all-time benchmark amount of $781,671, according to a financial analysis shared by Anthony Sandstrom, metro district communications and community engagement specialist.

"Some of these (marijuana) businesses may be moving to new states where they can make more money. But right now it would be about $60,000 a year we can put toward the Fourth of July, concerts and things like port-a-potty rentals and security for these events," Axworthy explained.

Board Secretary Bill Vickers questioned the use of the funds for community events when residents are voicing concerns about stormwater drainage issues, street repairs and weed control.

"Does it make sense to channel money to a Fourth of July party? Are businesses really going to come to Pueblo West because of the Fourth of July?" Vickers questioned.

Board member Joe Mahaney sided with Vickers in voting "no" on the proposal, pointing out he believed private donations, not tax dollars, should be used to fund the events.

Axworthy, Board President Nick Madero and Board Vice President Doug Proal, all voted in favor of earmarking the funds for events.

"I think activities are essential," Proal said.

"I am all about offering events for the community and I have no problem soliciting sponsors so we can have more events for families and young kids," Madero said.

Road and stormwater drainage woes remain top concerns

In other business, the board heard from Pueblo West resident Bill Klenke, who has lived in the community for 25 years. He asked the board to talk to Pueblo County officials about earmarking more funds for Pueblo West road repairs.

The county took over maintenance of the district's roads Jan. 1 and will use an estimated $4 million in revenue from a voter-approved 1-cent sales tax which is earmarked for Pueblo West road repairs. The county also funnels some Highway User Tax Funds — generated by gas sales in the state — into road repairs in Pueblo West, but Klenke said some property tax dollars also should go toward those repairs.

Klenke said he attended a town hall meeting Pueblo County Commissioners hosted in Pueblo West last week and shared that he believes Pueblo West is not getting a fair deal.

"Pueblo West has one-third of the roads in Pueblo County and 60% of the population, so you would think we should be getting another $2 to $3 million more for our roads. I hope you talk to the county about that — we need some representation here," Klenke said.

Axworthy said he has discussed the issue with Pueblo County Commissioner Zach Swearingen.

"We all want better roads and stormwater solutions but it is not going to fix overnight. It is going to take time and money," Axworthy said.

Proal said lack of funding for Pueblo West roads is "something that has been ongoing for years and has been the biggest complaint of constituents." He said deferred maintenance costs have compounded the problem.

"I agree that some of our property tax dollars should go into the roads and we will push for that," Proal said, pointing out he believes residents should continue to let their voices, "be heard at the county commission level."

Chieftain reporter Tracy Harmon covers business news. She can be reached by email at tharmon@chieftain.com or via Twitter at twitter.com/tracywumps. Support local news, subscribe to The Pueblo Chieftain at subscribe.chieftain.com.

This article originally appeared on The Pueblo Chieftain: Pueblo West narrowly OKs spending marijuana tax revenues on events