Rio Dell Council Holds Firm on Cannabis Tax, Hears Resident Pleas on Drainage, and Eyes Park Expansion

Rio Dell Council Maintains Cannabis Tax Rate

During a packed meeting Tuesday night, the Rio Dell City Council debated but ultimately took no action to change the city's cannabis cultivation tax, leaving the rate at $2 per square foot. The discussion came after a staff analysis highlighted the tax's critical role in funding city services.

Finance Director Travis Ruge reported that the tax, first approved by voters in 2016, generates an average of $258,000 annually, accounting for approximately 14.5% of the city's general fund revenue. These funds are essential for road maintenance and police operations. Ruge warned that reducing the rate to $1.50 would result in an annual loss of over $64,000, while a reduction to $1.00 would cost the city $129,000 per year.

Council members expressed differing views on the matter. One member argued that the rate is fair and was known to businesses when they established operations in the city. "People have got involved in this industry. Certainly knew what they were getting into," the council member stated. "The rate is fine. It is a reasonable rate."

Another council member voiced concern that maintaining the rate could drive businesses away, leading to a total loss of revenue. "I don't understand why we can't stop every temporary reduced tax rate to keep these people where they're at... right now we're going to end up with a bunch of empty fields that are overpriced... and given less sales tax in the city."

Ultimately, with no motion made to change the rate, the current tax structure, which is 40% of the maximum $5 per square foot authorized by voters, will remain in place.

Residents Seek Help for Decades-Old Drainage Issue

The council also heard from residents of View Avenue regarding a persistent drainage problem they say has been damaging their properties for decades. A resident presented letters, including one from a former owner of the property at 590 View Avenue, stating the issue of street runoff flooding the yard has existed since at least 1961.

"The ongoing drainage problem on View Avenue has reached a point where it's causing serious damage, not just to our property, but to our neighbors' homes as well," a resident told the council. She explained that the street's slope and an abruptly ending curb direct all rainwater into their yards, forcing them to use sandbags each winter. The residents requested the city install a small asphalt berm to redirect the water to a nearby storm drain.

While a preliminary opinion from the City Attorney suggested the city has no legal obligation to fix the issue, as the original infrastructure was likely built by a private developer before the city's incorporation, the council was sympathetic. After discussion, the council voted unanimously to refer the matter to the City Attorney for a more comprehensive review of the city's options and responsibilities. The item will be brought back to a future meeting.

Davis Street Park Plans Paused

Progress on the potential acquisition of the Davis Street Park property from the local school district will be temporarily paused. Following a staff recommendation, the council voted to postpone spending on title work and surveys until an announcement is made regarding a Land and Water Conservation Fund grant application. A decision on the grant, which would require a 50% match from the city, is anticipated around February 2026.

Mayor Pro Tem Amanda Carter, who requested the agenda item, noted she would be attending the upcoming school board meeting to clarify the proposed property lines to ensure the entire existing ballfield is included in the potential transfer.

In Other Business

* **Water & Sewer Rates:** The Finance Director provided an overview of the city's rate structure, reaffirming the cost-of-service model established in 2022. He highlighted that the city is actively pursuing grants, including a $12 million water infrastructure project and a $1.6 million sewer evaluation study, to minimize the financial burden on residents.

* **Welcome Billboard:** A representative from the Chamber of Commerce proposed installing a "Welcome to Rio Dell" billboard on city-owned property on the south side of the bridge. The council agreed to add the item to a future agenda for discussion.

* **New Staff and Accolades:** The council welcomed Marshall Moore as the new Wastewater Superintendent. It was also announced that Rio Dell Police Chief Jeff Conner has been appointed as the Region 1 representative for the California Police Chiefs Association, representing Humboldt, Del Norte, and Trinity counties.

* **Community Events:** Several upcoming community events were announced, including the first-ever Halloween decorating contest, a dog costume contest and Trunk-or-Treat on October 31, and an Eel River cleanup on Saturday, October 11.