The Times-Call reports the City Council voted 6-0 Wednesday to schedule the special election.
The town once had three marijuana dispensaries, but they closed Dec. 31 after the City Council voted in June to ban pot shops.
Petitioners then collected signatures in support of a ballot proposal that would reverse the ban.
City administrator A.J. Euckert estimates a special election on the ballot measure would cost the city between $10,000 and $15,000.