Logo courtesy of Dixon Wellness

DIXON, CA (MPG) – At the Dixon City Council meeting on March 3, Mayor Steven Bird conducted the swearing-in ceremony for Fire Chief Randy Shafer.  

Chief Shafer said he does not take the responsibility lightly, as this is not just a career, “it’s a calling.” He promised to lead with “integrity, accountability and dedication. … Thank you for the trust you’ve placed in me.” 

During public comment, Yvonne McClusky said that when her grandson, Private First-Class Tanner Rubio, was killed last December at the Camp Pendelton Marine Corps Base, Chief Shafer insisted on driving her to meet the airplane bringing home Rubio’s remains. She delivered an emotional statement of support for Shafer, calling him “a man of compassion, integrity and most of all caring for someone who meant so much to us.”

The council then considered an updated development agreement with Dixon Wellness, a retail cannabis dispensary that has been operating in the city since 2017. 

Recent updates to the city’s cannabis pilot program made development agreements optional but can allow a business to negotiate a more favorable public benefit fee. 

Under the prior agreement, Dixon Wellness paid a public benefit fee of 5 percent of gross receipts or $30,000 per month, whichever was greater. This high rate has been a challenge for cannabis businesses to meet, since the price of cannabis has decreased significantly since recreation use was first legalized. 

The new development agreement for Dixon Wellness would require a public benefit fee of 7 percent of gross receipts or $15,000 per month, whichever is greater. The agreement is for a four-year term, renewable up to six years. Other changes include an allowance to conduct local deliveries, pending approval of an updated security plan.  

Community Development Director Raffi Boloyan said Dixon Wellness has been operating in good standing for many years: “We have not had any issues or concerns with their operation … It’s a successful business that’s doing good for the city.”

Dixon Wellness CEO Haley Andrew thanked staff for working on this agreement. Allowing delivery will hopefully bring in more revenue, and the change in the public benefit fee requirement will help keep her in business. 

Councilmember Jim Ernest said there are other cannabis delivery services coming into Dixon, which are not authorized to do business within the city. So, he said the city needs to ensure Dixon Wellness can move forward with deliveries: “We need to help local businesses succeed.” 

Councilmember Kevin Johnson agreed and said he will do whatever he can to personally help get the delivery service confirmed. He added that there was a long delay in finalizing this agreement, which left Dixon Wellness struggling to pay the higher public benefit fee. Johnson suggested the new fee be retroactive to July 2025: “It’s about doing the right thing. … It’s taken too long.” 

Johnson made a motion to approve the new agreement, with a retroactive reduction to the public benefit fee. It was approved 3-1, with Mayor Steven Bird dissenting and Councilmember Thom Bogue absent. 

Mayor Bird clarified that he supported the new agreement, but not the retroactive fee reduction. He said to Dixon Wellness, “You guys are wonderful business partners, I appreciate you, but it’s on principle” for that one item.

The council also heard an update on the mid-year Fiscal Year 2025-26 budget projections and considered budget adjustments. 

Finance Director Kate Zawadzki said the city’s revenues this year are declining while expenses are increasing. When this budget was adopted, “we had a structurally balanced budget,” said Zawadzki. At that time, the deficit matched the one-time expenses, and all the regular operating expenses were covered by operating revenues. 

Measure J sales tax revenue came in $2 million higher than anticipated, which has helped to offset other reduced revenues. “Without that, what you would see here is a deficit of $4 million,” said Zawadzki.  

The general fund is still expected to end the fiscal year with a 44.37 percent reserve balance, which Zawadzki said is a healthy reserve, so staff were not recommending major cuts at this time. 

“We’ve seen over the past couple years,” said Zawadzki. “Because of growth in our community, these numbers can swing pretty wildly.” She said the prior fiscal year was expected to end with a deficit but ended with a surplus. 

In projected general fund revenues, property taxes rose but not as much as expected. General sales tax is coming in at almost $900,000 less than expected and community development permits and fees are $500,000 less. On balance, the general fund is coming in $1.4 million less than originally projected. 

Zawadzki requested approval of the current budget adjustments, and said she’ll continue monitoring revenues and expenses. She’ll be back with the third quarter report in April and will have more specific recommendations after the final numbers for the fiscal year are reviewed in September.

The council voted 4-0 to approve the budget adjustments. 

The next meeting of the Dixon City Council is scheduled for March 17.