The Manitou Springs City Council approved the first reading of an ordinance to cut taxes on recreational cannabis by half during Tuesday’s regular meeting.
“There are now 48 stores in Colorado Springs … many just minutes away,” said Bill Conkling, the CEO of Maggie’s Farm, one of the two recreational cannabis dispensaries in Manitou Springs. “They’ve opened and they’re offering a 5% less tax rate on special use cannabis, as you guys are all pretty much aware, I’m sure, by now. The disparity in the pricing has already helped cause a 30% drop in our traffic and our revenue, with more stores still to come in Colorado Springs.”
The proposed ordinance would drop Manitou’s tax on recreational cannabis from 10% to 5%.
“I do believe that a lower tax base will generate more stable and sustainable revenue,” said Conkling. “I think it’s better for Manitou even if it were a wash, to have a lower [tax] rate [on cannabis] and more people, more traffic in Manitou than it would be to have a higher rate and less people, because I think it supports the the other industries – the shops, the restaurants and all the other businesses that surround us.”
The disparity in the pricing has already helped cause a 30% drop in our traffic and our revenue. – Bill Conkling, CEO of Maggie’s Farm
Council has been discussing the impact of Colorado Springs’ recreational marijuana measure since November, raising concerns about how the loss of revenue could impact the city budget. “We may lose half of our income because of the marijuana taxes,” said Councilor Julie Wolfe, during a Nov. 19, 2024 Council meeting. “I think we should have some analysis on how much might we lose next year, and if so, how best to prepare for that.”
City Administrator Denise Howell told Council in November that City spending has been limited to grant-funded projects, and in December, the Council decided to hold on to $685,000 appropriated for the Cog Railway’s Tax Incentive Program Agreement payment, keeping the money in the general fund under unassigned funds. That action has led to a lawsuit against the City of Manitou Springs.
Manitou Springs isn’t the only party with concerns about recreational cannabis and financial woes. Last year, an El Paso County judge issued an arrest warrant for Conkling and the CFO and managing partners of Maggie’s Farm for contempt of court in a civil case filed by Raven Security Group alleging Maggie’s Farm failed to pay them $138,506.49 in money owed to them per their contract for security work. Maggie’s has had to close five stores in recent years, and last year was the target of a series of till taps, a legal process where a law enforcement officer seizes all cash and checks from a business’s cash register to satisfy a judgment debt, to cover debts to a different creditor.
Council will hold a second reading and a public hearing on the tax cut during the June 3 meeting.
Council approves emergency ordinance for water meter replacement
Manitou Springs City Council approved an emergency ordinance to fund the water meter replacement project through an equipment lease purchase agreement not to exceed $4.5 million.
“I had to make this an emergency ordinance which means that it doesn’t require a second reading, it doesn’t require a public hearing and it is valid as of when city council approves it by 100% – no dissenting votes can be allowed,” explained Rebecca Davis, Manitou Springs finance director. “The reason why it had to be an emergency ordinance is because the contractors that we have these bids from, or these quotes from, have a deadline on when the projects have to be accepted, started. I believe it’s at the end of the month, so we didn’t have time for a second reading or a public hearing, or to wait five days after publication after that second meeting in order for it to become effective. This was a way to make sure that we meet those deadlines to have the contracts still at the same quotes that were originally received.”
Last year, Council received an update on the Colorado Energy Office’s performance contract audit, which found that the meters currently in use are 15 to 18 years old and many provide faulty or inaccurate readings. The city was hoping to receive grant funding to offset the cost of the $2.7 million project, but was unable to secure funding.
“Nobody really knows what’s happening with federal funding,” said City Administrator Denise Howell during a March 4 council meeting. “The congressional direct funding that we were going to get – $500,000 for the water meters – it looks like we’re not going to get it.”
As a result, the City will finance the cost of the project over 20 years through the Colorado Energy Office Energy Performance Contracting Program, which assists local governments in incorporating energy and water conservation measures with little or no upfront capital.
MSPD officers recognized
The Manitou Springs Police Department recognized officers and civilian employees during Tuesday’s City Council meeting. Holly Bradbury, a UC Health clinician with the Manitou Crisis Response team, and Ryan Karcher, an evidence technician, received the chief’s commendation from MSPD Chief Bill Otto. Officer Derek Bartlett received a commendation for his role in apprehending a graffiti suspect, and Detective Amanda Strider received a commendation for her role in facilitating “a guilty verdict on a two-year case involving heinous crimes against children.” Sergeant Leo Strand received a leadership award.
“We do appreciate the extra mile the officers go for us,” said Mayor John Graham. “Thanks for not just the law enforcement, but taking care of the community, watching out for people, helping the tourists find their way and trying to manage situations while they’re small. Basically taking care of people.”
New engineer, lower speeds
City Administrator Denise Howell announced the hiring of Ben Schmitt as the new city engineer. Schmitt will be the third Manitou Springs City Engineer in as many years.
Manitou Springs City Council approved the second reading of an ordinance to reduce the default speed limit within Manitou Springs to 20 mph.
