CITYOF CARMEL-BY-THE-SEA
CITY COUNCIL AGENDA
Mayor Dale Byrne, Councilmembers Jeff Baron, Hans
Buder, Bob Delves, and Alissandra Dramov
Contact: 831.620.2000 www.ci.carmel.ca.us
All meetings are held in the City Council Chambers
East Side of Monte Verde Street
Between Ocean and 7th Avenues
CITY COUNCIL SPECIAL MEETING - WORKSHOP
Wednesday, May 21, 2025
3:30 PM
HYBRID MEETING ATTENDANCE OPTIONS
Members of the public are entitled to speak on matters of municipal concern not on the agenda during Public Appearances. Each person's comments shall be limited to 3 minutes, or as otherwise established by the Chair.
Matters not appearing on the agenda will not receive action at this meeting and may be referred to staff. Persons are not required to provide their names, and it is helpful for speakers to state their names so they may be identified in the minutes of the meeting.
https://ci-carmel-ca-us.zoom.us/j/86280781640 Webinar ID: 862 8078 1640 Passcode:
837876 Dial in: (253) 215-8782
HOW TO OFFER PUBLIC COMMENT
The public may give public comment at this meeting in person, or using the Zoom teleconference module, provided that there is access to Zoom during the meeting. Zoom comments will be taken after the in-person comments. The public can also email comments to [email protected]. Comments must be received at least 2 hours before the meeting in order to be provided to the legislative body. Comments received after that time and up to the beginning of the meeting will be made part of the record.
PUBLIC COMMENT GUIDELINES FOR SPECIAL MEETINGS - During Special City Council Meetings, public comments are permitted for items listed on the agenda. After each item on the agenda is introduced, the Mayor will invite public comment on that item. Each speaker has 3 minutes to speak unless otherwise adjusted by the Mayor. While stating your name is optional, it helps to identify speakers in the meeting minutes.
Remote or in-person participants who do not comply with the requirements of the Brown Act will be muted.
CALL TO ORDER AND ROLL CALL - 3:30 PM
ORDERS OF BUSINESS
Orders of Business are agenda items that require City Council, Board or Commission discussion, debate, direction to staff, and/or action.
1. Receive the Draft Council Priority Project List and Provide Direction on the Project List (Estimated time - 45 min)
2. Receive a presentation on the Fiscal Year 2025-2026 Recommended Budget and provide direction (Estimated time - 90 min)
3. Second Review of the Proposed Fiscal Year 2025/26 Capital Improvement Program and Direction to Staff (Estimated time - 30 min)
OPEN SESSION
3:30 PM
ADJOURNMENT
This agenda was posted at City Hall, Monte Verde Street between OceanAvenue and 7thAvenue, Harrison Memorial Library, located on the NE corner of Ocean Avenue and Lincoln Street, the Carmel-by-the-Sea Post Office, 5th Avenue between Dolores Street and San Carlos Street, and the City's webpage http://www.ci.carmel.ca.us in accordance with applicable legal requirements.
SUPPLEMENTAL MATERIAL RECEIVED AFTER THE POSTING OF THEAGENDA Any supplemental writings or documents distributed to a majority of the City Council regarding any item on this agenda, received after the posting of the agenda will be available for public review at City Hall located on Monte Verde Street between Ocean and Seventh Avenues during regular business hours.
SPECIAL NOTICES TO PUBLIC
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk's Office at 831-620-2000 at least 48 hours prior to the meeting to ensure that reasonable arrangements can be made to provide accessibility to the meeting (28CFR 35.102-35.104 ADA Title II).
CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
Staff Report
May 21, 2025
ORDERS OF BUSINESS
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Brandon Swanson, Assistant City Administrator APPROVED BY: Chip Rerig, City Administrator
SUBJECT:
Receive the Draft Council Priority Project List and Provide Direction on the Project List (Estimated time - 45 min)
RECOMMENDATION:
Receive the Draft Council Priority Project List and Provide Direction on the Project List.
BACKGROUND/SUMMARY:
For several years, Council has had an evolving list of Strategic Priorities. Various iterations of this list have attempted to quantify things like percentage complete, responsible departments, number of staffing hours needed to complete, etc.
At the Council’s most recent meeting to discuss this evolving list of priorities, Council provided direction to revisit the format of the list and the overall approach. The staff report from this meeting is included as Attachment 2. Most notably, Council requested a more hierarchical approach to priorities to better represent the difference between strategic initiatives, priorities and the tasks or ‘goals’ to be accomplished.
Councilmember Baron agreed to work with Staff on preparing a revised approach to the Council’s priority list. Attachment 1, is the current draft of those efforts. While not yet fully completed, Council is being asked to provide feedback on the draft and the direction it has taken. Staff will be prepared to give a more thorough presentation of the revised approach at the meeting in order to get feedback from the full Council.
FISCAL IMPACT:
N/A
PRIOR CITY COUNCIL ACTION:
Council received a recap of the Council Priorities Workshop at their March 24, 2025 Special Meeting.
ATTACHMENTS:
Attachment 1) Draft Council Priorities List
Attachment 2) March 24, 2025, Staff Report
City Council Strategic Priorities (*items added to approved Council priorities list) Target Goal
Completion
S-1 Model Financial Sustainability, Accountability and Transparency P-1.1 Budget Clarity*
G-1.1.1 Review and Reformulate Approach to Reserves* Date G-1.1.2 Update and Refine Financial Policies* Date
P-1.2 Financial Health*
G-1.2.1 Receive Council approval on revised investment portfolio approach* Date G-1.2.2 Complete internal review (checklist) of City readiness to take on bonds or other financing * Date G-1.2.3 Implement a new HR and Payroll management system* Date G-1.2.4 Develop potential revenue enhancements and receive Council direction * Date S-2 Steward the Natural Environment
P-2.1 Beach Infrastructure Repairs and Maintenance
G-2.1.1 Rebuild 8th Ave. sand ramp* Date
G-2.1.2 Complete 4th Ave. outfall repair/replacement* Date G-2.1.3 Rebuild 10th Ave. stairs* Date
G-2.1.4 Rebuild 12th Ave. stairs* Date
G-2.1.5 Complete maintenance/repair of bluff revetments* Date P-2.2 Wildfire Mitigation and Prevention
G-2.2.1 Adopt updated Carmel Forest Management Plan (City Council) Date G-2.2.2 Certify LCP amendment for updated Carmel Forest Management Plan (Coastal Commission) Date G-2.2.3 Adopt Local Fire Hazard Maps* Date
G-2.2.4 Adopt additional citywide wildfire and prevention measures June 2026 S-3 Maintain Public Safety and Infrastructure
P-3.1 Public Safety*
G-3.1.1 Complete transition of ambulance services to Monterey Fire Date G-3.1.2 Implement a Street Address Program March 2026
P-3.2 City Buildings (Non-Police/PW)*
S = Strategy; P = Priority; G = Goal Council Strategic Priorities Page 1 of 4 City Council Strategic Priorities (*items added to approved Council priorities list) Target Goal
Completion
G-3.2.1 Conduct condition assessment of all buildings and develop maintenance plan* Date G-3.2.2 Make Police/PW Building safe before remodel* Date P-3.3 Police/Public Works Building Project
G-3.3.1 City Council decision on rebuild vs. renovate* Date G-3.3.2 Construction Plans approved by City Council* Date G-3.3.3 Construction begins* Date
G-3.3.4 Employees fully move back into building* Date
P-3.4 Digital Infrastructure
G-3.4.1 Complete an IT audit, including cyber-security* Date G-3.4.2 Develop and adopt an IT Strategic Plan* Date
P-3.5 Streets and Sidewalks*
G-3.5.1 Assess condition of all sidewalks and tree wells and create maintenance plan to get current on repairs* Date G-3.5.2 Complete repairs to get current on all sidewalk and ADA improvements* Date S-4 Preserve the Village Character
P-4.1 Design Review*
G-4.1.1 Adopt updated Design guidelines and Zoning Code - Design Traditions 1.5 Project (City Council) Date G-4.1.2 Certify LCP amendment for updated Design Guidelines and Zoning Code (Coastal Commission) Date G-4.1.3 Reinstate the Design Review Board (DRB) Date
G-4.1.4 Complete Objective Design and Development Standards for affordable units (ODDS)* Date P-4.2 Attract New Full Time Residents*
G-4.2.1 Complete update to ADU ordinance Date
G-4.2.2 Complete Housing Element amendment to move units from City lots Date S-5 Provide Effective, Reliable, Responsive and Friendly Government Services P-5.1 Process Improvements*
G-5.1.1 Research and implement new permitting software, with focus on integrating Artificial Intelligence* Date G-5.1.2 Implement technologies to support routine tasks and free up time for enhanced customer service* Date P-5.2 Public Access to Records*
S = Strategy; P = Priority; G = Goal Council Strategic Priorities Page 2 of 4 City Council Strategic Priorities (*items added to approved Council priorities list) Target Goal
Completion
G-5.2.1 Scan and digitize all physical city records to make available online (resolutions, ordinances, etc.)* Date P-5.3 "Smart Village" Plan
G-5.3.1 Expand free public Wi-Fi network to cover all parks and key public areas* Date S-6 Implement the City's Adopted Plans*
P-6.1 Climate Action and Adaptation Plan
G-6.1.1 Complete Coastal Adaptation Study and Certify LCP Amendment ($500K Coastal Commission Planning Grant) Date G-6.1.2 Fill In More Goals From Actual Plan* Date
G-6.1.3 Fill In More Goals From Actual Plan* Date
G-6.1.4 Fill In More Goals From Actual Plan* Date
P-6.2 Housing Element - Cycle 6
G-6.2.1 Council adopts water allocation policy Date
G-6.2.2 Council adopts Implementation Plan and LCP Certification for Program 1.3.B - Hotel Conersion Date G-6.2.3 Fill In More Goals From Actual Plan* Date
G-6.2.4 Fill In More Goals From Actual Plan* Date
P-6.3 Carmel Forest Management Plan
G-6.3.1 Fill In More Goals From Actual Plan* Date
P-6.4 Community Wildfire Prevention Program (CWPP)
G-6.4.1 Fill In More Goals From Actual Plan* Date
P-6.5 Shoreline Management Plan*
G-6.5.1 Fill In More Goals From Actual Plan* Date
P-6.6 Library Master Plan*
G-6.6.1 Fill In More Goals From Actual Plan* Date
P-6.7 Del Mar Master Plan*
G-6.7.1 Fill In More Goals From Actual Plan* Date
P-6.8 Mission Trails Nature Preserve Master Plan*
G-6.8.1 Fill In More Goals From Actual Plan* Date
S = Strategy; P = Priority; G = Goal Council Strategic Priorities Page 3 of 4 City Council Strategic Priorities (*items added to approved Council priorities list) Target Goal
Completion
Parking Lot
Transient Occupancy Tax (TOT) Increase
Explore Opportunities for Flanders Mansion
Explore Opportunities for Permanent Outdoor Dining/Downtown Master Plan Outdoor Wine Tasting Ordinance
Explore Opportunities for Scout House
Carmel Area Wastewater District (CAWD) Bridge to Everywhere Project Undergrounding Power Lines separate from Rule 20A
Build city-owned conduit system for data (currently Comcast owned)* Implement a parking and traffic management program
S = Strategy; P = Priority; G = Goal Council Strategic Priorities Page 4 of 4
CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
Staff Report
March 24, 2025
ORDERS OF BUSINESS
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Brandon Swanson, Assistant City Administrator APPROVED BY: Chip Rerig, City Administrator
SUBJECT: Receive a recap of the February Council Priorities Workshop and Provide Direction on the Project List RECOMMENDATION:
Receive a recap of the February Council Priorities Workshop and Provide Direction on the Project List BACKGROUND/SUMMARY:
Summary
Staff is returning to the City Council following the February Strategic Priorities Workshop to present three key lists for Council review and consideration. These lists are designed to clarify, compare, and integrate both Council’s original priorities and staff’s recommendations, as discussed during the workshop. The purpose of this report is to seek Council's direction on finalizing the City Council-approved list of priority projects.
Background
In February, the City Council engaged in a Strategic Priorities Workshop to evaluate and refine the City’s priority projects. The workshop was well attended by members of the public, who provided valuable input into the process and contributed to the discussions regarding the City’s strategic direction.
During the workshop, staff also presented a series of recommended updates to the priorities, including modifications to project descriptions and strategic category names, in order to better align with current goals and available resources.
The recommended staff list was created with the intention of making the project descriptions more actionable and easier to determine when a project is complete. This approach helps ensure that project scopes are clearly defined, measurable, and outcome-oriented, allowing both staff and stakeholders to track progress and completion more effectively.
Due to time constraints, Council and staff were not able to complete the discussion regarding which items from Council’s list and “staff’s list” should be blended together, nor were they able to discuss proposed changes to the strategic category names.
To support the next steps, staff has prepared the following three lists to organize the information discussed at the workshop:
1. Original Council-Approved Priority List (Reformatted):
This list reflects the original set of City Council-approved priorities, reformatted to incorporate the results and specific outcomes of the February workshop discussions. (Attachment 1)
2. Staff-Recommended Priority List (Presented at Workshop):
Prior to the workshop, staff was asked to prepare a staff-recommended list of priority projects based on their understanding of the most critical and important tasks that needed to be accomplished throughout the City. This list contains those staff-proposed priorities, which also include modifications to project descriptions and strategic category names, as initially presented during the workshop. (Attachment 2)
3. Staff-Recommended Blended Priority List:
This third list represents staff’s recommendation for how to merge and balance the Council’s original priorities with staff’s refinements, creating a comprehensive and unified list that incorporates the input from both perspectives, as well as feedback received from the public. It should be noted that nearly all of the original Council Priorities remained on the “blended” list, but the names were slightly changed to make the project title read as more actionable. (Attachment 3) Council Direction and Next Steps
Staff is requesting that the City Council review the three provided priority lists and consider whether the Staff-Recommended Blended Priority List should become the new City Council-approved list of priority projects, or if Council wished to retain the original approved list in its entirety, or propose a different combination of priorities that better reflects their direction.
Once the Council finalizes which list or combination of lists should serve as the official set of priorities, staff will return at a near future meeting to present a proposed method for ranking and scoring the approved projects as requested at the workshop. This process will 5/16/25, 1:15 PM Coversheet
https://carmel.novusagenda.com/agendapublic/CoverSheet.aspx?ItemID=7210&MeetingID=1779 1/2 Attachment 2
ensure clarity regarding which projects should take top priority and establish a clear order for implementation moving forward.
FISCAL IMPACT:
PRIOR CITY COUNCIL ACTION:
ATTACHMENTS:
Attachment 1 - Existing Council Priorities
Attachment 2 - Staff Proposed Priorities From Workshop
Attachment 3 - Recommended Blended Priority List
5/16/25, 1:15 PM Coversheet
https://carmel.novusagenda.com/agendapublic/CoverSheet.aspx?ItemID=7210&MeetingID=1779 2/2 Attachment 2
CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
Staff Report
May 21, 2025
ORDERS OF BUSINESS
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Jayme Fields, Finance Manager
APPROVED BY: Chip Rerig, City Administrator
SUBJECT:
Receive a presentation on the Fiscal Year 2025-2026 Recommended Budget and provide direction (Estimated time - 90 min)
RECOMMENDATION:
Receive a presentation on the Fiscal Year 2025-2026 Recommended Budget and provide direction to staff.
BACKGROUND/SUMMARY:
In accordance with Carmel Municipal Code Section 3.06.020, prior to the beginning of each fiscal year, the in accordance with Carmel Municipal Code Section 3.06.020, prior to the beginning of each fiscal year, the City Administrator shall prepare and submit to the City Council a proposed operating and capital budget for the forthcoming fiscal year. The proposed budget, referred to as the Fiscal Year 2025-2026 (FY 25-26) Recommended Budget of $39.9 million is submitted for Council’s consideration (Attachment 1).
The City today brings back a revised budget for a workshop, after considering the City Council’s initial input.
The purpose of this workshop is to understand the full scope of information and analysis incorporated in the budget, consider a list of potential additional changes, then move the budget to final adoption.
BACKGROUND
At the May 6th meeting, the budget had a deficit of $5 million which means that it would be using existing fund balance to pay for its extensive capital projects. In addition, while budgeted revenues are sufficient to pay for budgeted operating costs, those costs exceed the Council’s newly instated budget guideline that seeks to limit operating costs to be no more than 90% of budgeted revenue.
Since the last meeting, the details of the capital projects and operations included in the budget have been reviewed and changes have been made. Table 1, shown below, outlines the progression of the proposed fiscal year 2025-2026 budget from initial department requests, through refinements by City Administration and the Financial Stewardship Workgroup, and ultimately to the draft presented today which incorporates direction from the May 6th meeting.
Table 1: Timeline of Changes Made to Budget
The budget originated from Departmental Requests that were formed based on current year operations, and planned projects for the coming year. City management reviewed the detail of those requests with department heads and identified areas where current operating costs could be redirected, new projects and new positions eliminated, additional revenues identified and revenue assumptions made less conservative.
This review resulted in the budget that was presented to the City Council on May 2, 2025.
After the May 6th meeting, the City considered the list of questions and ideas presented by the Council and public both at that meeting and submitted subsequently and again reviewed and revised the budget along with the Financial Stewardship Workgroup, resulting in the budget presented here today.
Changes since the last presentation include:
Reduction of ambulance salary costs and increase of contract services costs.
Reclassification of the Project Manager’s salary to capital projects (to reflect correct accounting and be consistent with how outside project manager costs are handled).
Elimination of operating costs and projects.
Increase in revenue to reflect increased ambulance activity.
Changes not made:
Cuts to existing salaries are not proposed, as the high cost of turnover, recruiting and vacant positions generally offsets much of the salary savings.
Ambulance billing for new services, as research is currently underway but the potential amounts are unknown.
Unbilled tree appeals, as the total number of instances does not appear to be large, procedures will be reviewed and updated but the forecast amount is not material.
SUMMARY OF BUDGET PRESENTED
For fiscal year 2025-2026, the City is budgeting $34.9 million of revenues, $31.9 million of operating expenditures and $7.9 million of capital project expenditures. Operating expenditure represents 91% of budgeted revenues, which is $572 thousand in excess of the 90% budgetary guideline. Capital Project expenditures represent 23% of budgeted revenues, which is $4.5 million in excess of the 10% budgetary guideline.
FY25-26 Proposed Revenues $34,915,081
General Fund Expenditures 28,778,542
Debt Service Expenditures 509,100
Pension Unfunded Liability Mitigation Expenditures 2,708,158 Capital Outlay Expenditures 7,999,000
FY25-26 Proposed Expenditures $39,994,800
Use of Fund Balance for Capital Projects $5,079,719
Funded Full Time Equivalent (FTE) positions 90.50
The City anticipates a nominal increase in revenues for FY 25-26. Additionally, the City also expects its expenditures to grow in FY 25-26, primarily related to increased staffing, pension costs, general operating costs, and a robust Capital Improvement Plan.
Highlights of the budget include:
Salary and benefit costs of approximately $15.1 million in funding for maintaining 90.5 full-time equivalent (FTE) positions comprised to support daily citywide operations, Council prioritized projects, and capital projects.
Pension costs of approximately $2.7 million for the City’s annual unfunded accrued liability (“UAL”) payment to CalPERS, in addition to the normal pension costs included in salary and benefits.
Services and supplies costs of approximately $13.7 million to fund contractual services, fuel and vehicle maintenance, supplies and materials, utilities, fire services, insurance premiums, Sunset Center, staff training, marketing and other operational costs.
$8 million for capital projects and vehicle and equipment. $509,000 for debt service payments on the City’s three existing bonds.
In order to get to the newly initiated 90% budget guideline, additional changes to the budget would be required. The City has developed a list of potential changes based on its review of the proposed budget and the ideas the Council presented at the last meeting. See Table 2, shown below.
Table 2: List of Potential Additional Changes to the Budget It is important to note that these suggested cuts come on top of the $2.1 million of revenue additions and $1.8 million of cuts already made through this year’s budget process. The budget presented includes no increases to budgeted costs for inflation and no new services.
Going forward into future years, this simple process of cutting the budget will most likely not be sufficient to balance the budget within the stated guidelines. Instead, significant changes to operations, including realignment to focus operations on essential, priority services while eliminating non-essential services, will need to take place, as the forecast discussed in previous City Council meetings shows us that growth in operating costs outpaces growth in existing revenue sources. In addition, new sources of revenue will have to be identified by the City and supported by the community.
It is also important to note that the projected cost for Capital Projects to be completed in the current year 2024-2025 is $5 million. Combined with the fiscal year 2025-2026 budget of $8 million for CIP, we see that the ending unallocated fund balance is projected to be $7 million (see Table 3, below). While the City is still in the process of gathering updated budgets for repairs to its deferred maintenance and aging infrastructure, it is most likely that the $7 fund balance plus an annual allowance of 10% of total revenue (approximately $3.5 million) will not be sufficient to fully fund the five year CIP and beyond.
Table 3: Forecast of Fund Balance
FUTURE
With the aid of several new Department Heads and an eye to the use of technology, the City will review its operations in detail, looking at efficiencies and outcome-focused expenditures. It will also be working closely with the City Council and the community to identify sustainable revenue sources.
CURRENT STATUS
Staff provided a brief overview of the budget as part of the May 6, 2025 Council meeting. At the May 21, 2025 budget workshop, staff will present a detailed review of the budget as well as present responses to any questions that staff have received (Budget Q & A - Included as Attachment 2).
Staff will receive direction from Council on the budget and this direction will be incorporated into the FY 25- 26 Recommended Budget, which will be considered for adoption by Council on June 3, 2025.
FISCAL IMPACT:
The FY 25-26 Recommended Budget totals $39.9 million. There is no fiscal impact associated with receiving a presentation on the FY 25-26 Recommended Budget. However, direction provided by Council may have an impact on the budget and planned expenditures for the upcoming fiscal year.
PRIOR CITY COUNCIL ACTION:
Council participated in a Priorities Workshop on February 27, 2025 and received a presentation regarding the Five-Year Financial Forecast and Five-Year CIP on March 24, 2025. Council received a presentation regarding the FY 25-26 Recommended Budget, inclusive of the Capital budget, on May 6, 2025.
ATTACHMENTS:
Attachment 1) Proposed Budget Book FY 25-26
Attachment 2) Budget Questions and Answers
Fiscal Year 2025-2026
PROPOSED BUDGET
CITY OF CARMEL-BY-THE-SEA
CITY OF CARMEL-BY-THE-SEA
P.O. BOX CC, CARMEL-BY-THE-SEA, CA 93921
T: (831) 620-2000
www.ci.carmel.ca.us
Attachment 1
CITY LEADERSHIP
DALE BYRNE,
MAYOR
BOB DELVES,
MAYOR PRO TEMPORE
JEFF BARON,
COUNCILMEMBER
HANS BUDER,
COUNCILMEMBER
ALISSANDRA DRAMOV,
COUNCILMEMBER
CHIP RERIG,
CITY ADMINISTRATOR
2 Attachment 1
Table of Contents
INTRODUCTION ..................................................................................................................... 4 BUDGET MESSAGE ............................................................................................................ 5 REVENUE ............................................................................................................................ 9 EXPENDITURES ................................................................................................................13 FY25-26 AUTHORIZED POSITIONS.................................................................................16 ORGANIZATIONAL CHART ..............................................................................................18 OPERATING BUDGET...........................................................................................................19 CITY COUNCIL ..................................................................................................................20 CITY ATTORNEY ...............................................................................................................22 ADMINISTRATION ............................................................................................................23 CITYWIDE (NON-DEPARTMENTAL)...............................................................................30 ECONOMIC DEVELOPMENT ...........................................................................................31 LIBRARY AND COMMUNITY ACTIVITIES .....................................................................33 COMMUNITY PLANNING AND BUILDING ...................................................................37 PUBLIC WORKS .................................................................................................................41 PUBLIC SAFETY ................................................................................................................52 DEBT SERVICE ..................................................................................................................57 CAPITAL IMPROVEMENT PLAN (CIP) ...............................................................................58 OTHER FUNDS ......................................................................................................................75 PROJECTED FUND BALANCES ..........................................................................................79 FINANCIAL POLICIES ..........................................................................................................81 3 Attachment 1
INTRODUCTION
4 Attachment 1
BUDGET MESSAGE
Honorable Mayor Byrne, City Councilmembers, and Residents of Carmel-by-the-Sea:
In accordance with Carmel Municipal Code Section 3.06.020, I present the City’s operating and capital budget for the fiscal year 2025-2026 (“FY 25-26”) with tentative adoption on June 3,2025. This budget reflects a conservative view of revenues in the face of increased economic uncertainties while continuing to maintain service levels at those of prior years.
During the year, City has invested significant resources addressing high interest community projects such as the General Plan Housing Element, the Police Station Project and tree maintenance throughout the City, and there is more work to be done. This work is reflected in the proposed budget. Please allow me to reinforce that we have a strong and dedicated workforce, and unparalleled leadership from the City Council combined with an impassioned and solutions-oriented citizenry.
The Operating Budget serves as a policy document, financial plan, operations guide, and communications device. It is a living document that reflects the City Council’s strategic goals and objectives and provides a framework to meet future challenges such as rising operational costs and limited growth in revenues.
As we move forward and plan to implement the Fiscal Year 25-26 operating budget in the upcoming year, it is important to take into consideration the various factors that impact our financial health at the global, national, State, and local levels.
At the global level, we continue to face economic uncertainty and instability due to high interest rates, changes in leisure travel patterns, market distress, and volatility in financial markets. Ambiguity in national public policy leads to delays and curtailment in capital investment. Tariff impositions fluctuate daily, often lacking specificity. Other sources of volatility include global events, inflation concerns, and potential reductions in the Fed Funds rate. Pressures on the consumer result in prioritized day-to-day expenditures which erode discretionary spending due to weakened consumer confidence. We would be wise to anticipate and prepare for potential impacts on the City’s financial situation.
At the national level, the personal savings have decreased from roughly 5.4% in February of 2024 to 4.6% in February of 2025. This trend could add to a greater sell-off of investments and potentially steep market declines. Helping to hold this trend in check, home prices on the national level remain strong but could be overvalued.
At the state level, California faces its own set of challenges. The state has a large and diverse economy, but it also has a high cost of living and a significant homeless population.
The state’s budget is also impacted by various factors such as natural disasters, healthcare costs, and public education funding. Very recently, the Governor has signaled the need to 5 Attachment 1
make cuts to the State Budget, which could impact grant funding anticipated to be received by local governments like ours.
At the local level, Monterey County is no exception to its own set of challenges: aging infrastructure, affordable housing shortage, and rising healthcare costs. Our County-wide tourism industry continues to remain below pre-COVID levels. The City’s three major sources of General Fund revenue (Property Tax, Sales and Use Tax and Transient Occupancy Tax) continue to increase, but only slightly as economic factors and international relations make for uncertainty. This trend has led to a flattening of occupancy in our hotels, running at a 66% annual occupancy rate over the past three fiscal years. It is also worth noting that as Highway 1 through Big Sur is routinely impacted by natural disaster events, we will continue to see less visitor trade and traffic coming up along the coast from the L.A. area and bringing important visitor dollars to the Peninsula The factors identified above may reflect a monetary tightening that could impact the City’s revenue pillars into the future. As such, we approached our budget planning with an understanding of these factors and their potential impacts on our financial health. This budget is a thoughtful representation working together internally and with the community to identify areas where we can maintain costs at status quo, and where there may be room to cautiously spend budgetary dollars to enhance services for the Village. Given trends though, the City needs to begin to explore the need for additional sources of revenue to maintain our financial stability or adopt a position of significantly reducing costs in future fiscal years.
The adopted budget is not operationally balanced, meaning the total projected incoming revenue does not fully compensate for our projected expenditures. The budget is, however, structurally balanced – balanced by strategically using “unrestricted fund balance”. As discussed at the budget hearings, “unrestricted fund balance” is different than our “restricted fund balance” and “reserved fund balance”. The “unrestricted fund balance” is not required to be set aside or used for a specific purpose each year, since it comes from revenue that was not spent over past fiscal years as planned (e.g.: unspent Capital Improvement Program dollars or increased revenues received). The use of these “unrestricted fund balance” dollars makes it possible to address the past and current direction of Council, which is to maintain core services, invest heavily in deferred infrastructure maintenance, natural resource management and community character. We are fortunate to have an available “unrestricted fund balance”, accumulated through the prudent budgeting in past years, to close the gap in revenue that we are forecasting. In total, the funds needed to structurally balance the budget equal $5,079,719. Using this amount will consume roughly 22% of our current year operational reserve and unassigned fund balances, the remainder of which will continue to be saved. 6 Attachment 1
POLICY CHANGES TO BUDGETARY GUIDELINES
The Council’s newly in-stated budget guidelines limit the operating costs to be no more than 90% of budgeted revenue. For FY25-26, the City is budgeting $34.9 million of revenues, $31.9 million of operating expenditures and $7.9 million of capital project expenditures. Operating expenditures represent 91% of budgeted revenues, which is $572 thousand in excess of the 90% budgetary guideline. Capital Project expenditures represent 23% of budgeted revenues, which is $4.5 million in excess of the 10% budgetary guideline.
In order to get to the newly initiated 90% budget guideline, additional changes to the budget would be required.
STAFFING
After an increase in the previous Fiscal Year, we will see a decrease in the number of City staff in FY25-26. This will be accomplished in part by a restructuring of some existing positions to meet the changing operational needs of the City and to respond to the City Council and Community’s desires for additional services. In total in the FY25-26 budget, it appears that 6.75 FTE is being eliminated from the entire workforce, but this number does not reflect the full story. Six of the eliminated positions are the Ambulance Paramedics, who will be transferred to the Monterey Fire Department after Council approved to move Ambulance Services to the City of Monterey. The budget adds two Police Officers, while shifting hours and responsibilities offset these increases with 0.5 and 2.25 reductions to the staffing in Community Activities and the Library as previously unfilled position are eliminated. Within other areas of the City, currently vacant positions in Finance, Planning, Police, Project Management and Forestry and Beach are budgeted to remain untilled for several months in the 2025-2026 fiscal year.
CAPITAL IMPROVEMENT AND MAINTENANCE
Capital Improvement Projects
In its Priorities Workshop on February 27, 2025, and again on March 24, 2025, the City Council reviewed the FY 25-26 Capital Improvement Plan. Comprised of 32 CIP projects and 9 Vehicle and Equipment projects, the combined total CIP investment for new projects would be $6,789,000 – a figure that includes both internal and external funding. Capital projects included in the adopted budget consist of rehabilitation of City facilities, sidewalk and street improvements, enhanced public safety, Citywide ADA improvements, and protection and preservation of the natural environment. More generally speaking, the FY 25-26 budget recognizes the importance of investing in our “green” infrastructure (Mission Trails Nature Preserve, Sand Ramp at Eighth Avenue, Scenic Pathway and Shoreline Repairs, forest maintenance, etc.) and includes funding for continuation of the Paving project, Library Master planning, and improvements at Sunset Center, Forest Theatre and other City facilities.
7 Attachment 1
Vehicle & Equipment Fund
The total vehicle acquisition costs for FY 25-26 are budgeted at $1,210,000, including the cost of new ambulance as well as other vehicles. These expenditures exceed the City's annual replacement reserve target of 10% or approximately $500,000. The City will continue to maintain the Vehicle & Equipment replacement reserve at 10% of the estimated replacement value of the City’s vehicles and equipment, adjusted annually based on CPI.
FISCAL YEAR 25/26 BUDGET AT A GLANCE
FY25-26 Proposed Revenues $34,915,081
General Fund Expenditures 28,778,542
Debt Service Expenditures 509,100
Pension Unfunded Liability Mitigation Expenditures 2,708,158 Capital Outlay Expenditures 7,999,000
FY25-26 Proposed Expenditures $39,994,800
Use of Fund Balance for Capital Projects $5,079,719
Funded Full Time Equivalent (FTE) positions 90.50
Many of you know the level of respect I have for the lessons one can learn by studying the past. And while much of my message may seem dour, history teaches us that economic cycles are intrinsic to local government. Consequently, as clear as I can be about the likelihood of an unavoidable future down cycle in two of our three major revenue pillars, I am equally as confident about the inevitable upcycle to follow. The budget I am presenting is not intended to be irrepressibly contrarian; it is meant to be cautious and realistic. In the long term, I remain bullish, and indeed optimistic about our future.
My profound thanks to my department heads, and especially our Finance Division team, for developing a budget that is realistic given the realities that we are facing. I look forward to Council’s leadership and guidance as we balance fiscal sustainability with the need to fund projects and services for our community.
Respectfully submitted,
Chip Rerig
City Administrator
8 Attachment 1
REVENUE
The FY 25-26 Budget includes $34.7 million in estimated new revenue. As illustrated in the chart below, statewide sales tax (Sales Tax) and local Measure C district tax, contribute 30% and is the largest City revenue source. This reveals the importance and impact of the voter approved of Measure C in 2020. Property Tax reflects its customary stable growth accounting for 26% of the budgeted revenue. Hotel Tax (TOT) remains at 26% of budgeted revenue, followed by Other Revenues and Charges for Services combined at 18%.
Source Budget
Property Taxes $9,198,405
Sales Tax 3,828,119
Measure C 6,595,056
Other 3,272,484
Charges for Services 2,911,901
Transient Occupancy Tax 9,109,116
Total $34,915,081
Sales Tax
11%
Measure C
19%
Property Taxes
26%
Transient
Occupancy Tax
26%
Other
10%
Charges for
Services
8%
FY 25-26 Citywide Revenue Sources
9 Attachment 1
Property taxes are estimated at $9.2 million, reflecting a 4% projected growth over the previous year’s adopted budget and 2.5% growth over forecast actual. The City’s portion of the Sales Tax is $3.8 million and Measure C is $6.6 million, which represent 11% and 19% of total revenue respectively. The significance of the March 2020 Carmel voter approval of Measure C, at a renewed rate of 1.5%, cannot be understated. Amid COVID-19, Measure C provided a financial lifeline allowing for the continuance of core City services and still factors significantly in funding both operational and capital needs. This FY 25-26 Budget projects a continuation of status quo in Measure C and Sales Tax trends as consumers remain cautious of inflation and overall price increases of goods and services.
Transient Occupancy Tax (“TOT”) is levied at 10% of the rent charged by a hostelry operator within the City. Adopted at $9 million, TOT accounts for 26% of revenues, a 2% increase over FY 24-25 budget and a -2% decrease over forecast actual. Charges for Services are fees collected from a specific user of a service, such as plan review, building inspection and ambulance transports and account for $2.9 million, or 8% of the budget. The category of “Other” revenue includes General Fund revenues from business license tax, franchise fee and other intergovernmental revenue as well as restricted revenue for Community Oriented Policing Services (COPS), road maintenance and transportation-related projects and federal and State grants for planning, parks, and radio communications.
Table 1: Estimated Performance and Recommended Budget for Major Revenue Sources
Key
Revenues
FY 21-22
Actual
FY 22-23
Actual
FY23-24
Actual
FY24-25
Estimated
Actual
FY25-26
Proposed
Budget
Property Taxes $7,694,722 $8,136,928 $8,770,848 $8,974,083 $9,198,405 Sales Tax $3,626,263 $3,469,412 $3,692,470 $3,753,350 $3,828,119 Measure C $5,970,464 $5,868,695 $6,386,122 $6,484,814 $6,595,056 TOT $7,787,643 $8,455,742 $8,579,344 $9,295,016 $9,109,116 Total $25,079,092 $25,930,777 $27,428,783 $28,507,264 $28,730,696 The City’s three major sources of revenue include Property Tax, Sales and Use Taxes, and Transient Occupancy Tax (As detailed in Table 1 above entitled “Estimated Performance and Recommended Budget for Major Revenue Sources”).
PROPERTY TAXES
The desirability of Carmel-by-the-Sea as a place to reside, coupled with its limited housing stock, contribute to a strong local real estate market. Property tax revenue has been increasing on average by 6% over the past 9 years.
10 Attachment 1
The State median home price is expected to rise 2% from FY 24-25 to FY 25-26. The City has budgeted Property Tax revenue to increase 2.5% over last fiscal year’s estimated actual, unlike it has done in prior years due to a softening in the housing market. This budget conservatively projects growth yet remains confident in the stability of Carmel’s property tax performance.
SALES AND USE TAXES
The majority of the City’s sales and use taxes are attributed to businesses within the categories known as general consumer goods and restaurants. The City receives a portion (1%) of the statewide sales tax, known as Bradley-Burns tax, as well as revenue from a local sales tax. On March 3, 2020, the Carmel electorate voted and approved Measure C to increase the sales tax rate to 1.5%. The timing of Measure C helped minimize the effects of reduced sales tax revenue suffered during the pandemic, allowing the City to survive and recover to pre-pandemic levels by fiscal year 2020-2021. The City estimates FY 24-25 sales and use tax revenue at $10.2 million, just a 2% increase over FY 23-24 actual revenue of $10 million.
The City remains conservative and vigilant to the current trends, as we are aware that geopolitical tensions, inflation concerns, and interest rates drive consumer spending patterns even at the local level. Consumer spending for certain goods and services remains high, particularly for online shopping and dining. General consumer goods spending is expected to slowly increase by the end of FY 25-26, with limited 1.1% growth over prior fiscal year. We project stagnant sales tax activity in FY 25-26 and estimate $3.8 million for local sales tax and $6.6 million for Measure C, for a total of $10.4 million, a 1.8% increase over the prior year.
TRANSIENT OCCUPANCY TAX
The FY 25-26 Budget for TOT revenue is $9.1 million, which assumes continued occupancy at the current fiscal year’s rate. In FY 24-25, daily occupancy rates have been lower while the daily room rates are higher over prior fiscal year. For the reasons noted above under Sales and Use Taxes, as well as Highway 1 Big Sur closures and slowing international travel, we remain guarded in our TOT revenue. We anticipate a 3% decrease in FY 25-26 TOT over FY 24-25 estimated actuals.
As the City looks forward to its future revenues that fund services, capital projects and other initiatives, stepping back and reviewing the City’s historic performance is of value.
The charts below depict the performance of the City’s three major revenue sources over the last 10 years.
11 Attachment 1
Fiscal Year * TOT Sales ** Property
2017 $6,112,347 $5,373,800 $5,825,889
2018 $6,329,074 $5,476,123 $6,163,959
2019 $6,882,015 $5,719,521 $6,496,558
2020 $5,115,277 $4,766,313 $6,690,948
2021 $5,339,285 $7,028,041 $7,389,656
2022 $7,787,643 $9,596,727 $7,694,722
2023 $8,455,742 $9,338,107 $8,136,928
2024 $8,579,344 $10,078,592 $8,770,848
2025 Estimated $9,295,016 $10,238,164 $8,974,083
2026 Budget $9,109,116 $10,423,175 $9,198,405
*ending June 30th
** Combination of Bradley Burns & Measure C 1.5%
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
City's Major Revenues Historical
TOT Sales ** Property
12 Attachment 1
EXPENDITURES
The FY 25-26 Budget totals $40 million, which consists of the following:
▪ Operating Budget, or General Fund, totals $31.5 million, or 79%, of the citywide budget ▪ Debt service totals $509,100, or 1% of the citywide budget ▪ Capital outlay, including Capital Improvement Projects ($6.7 million) and Vehicles and Equipment ($1.2 million), makes up 20% of the budget The Operating Budget consists of the City’s departments and services. Debt is based upon required payments toward various bonds issued by the City or by other governmental agencies on behalf of the City. As shown in the chart below, the FY 25-26 Budget includes the Operating Budget, Pension UAL payments, Capital Outlay and Debt Service. The Operating Budget is further categorized by types of expenditure including salaries and benefits, outside services, and other expenditures as explained below.
Type of Expenditure
Budget
Salaries & Benefits $15,069,084
Outside Services 10,730,711
Other Expenditures 2,978,747
Pension 2,708,158
Capital Outlay 7,999,000
Debt Service 509,100
Total $39,994,800
Salaries & Benefits,
38%
Outside Services,
27%
Other Expenditures,
8%
Pension, 7%
Capital Outlay, 20%
Debt Service, 1%
FY 25-26 Expenditure by Type
13 Attachment 1
The City’s largest expenditure is related to the cost of personnel. Salaries and benefits total $15 million and account for 38% of the citywide budget. The second largest type of expenditure is Outside Services. This category includes various line-item accounts, such as advertising and noticing, contract services and community promotions. Contract services are used as an alternative to City staff directly providing the service due to cost savings or the specialized nature of the work being performed and include funding for expenses such as fire and ambulance service provided by the City of Monterey ($3.3 million, $2.1 million respectively); support for the operations of the Sunset Center and other marketing activities ($1.2 million); legal services ($517,000); tree care and landscape maintenance ($473,000) and janitorial service ($289,000). Capital Outlay is the third largest type of expenditure at $8 million, or 20% of the budget.
Other expenditures total $3 million and account for 8% of the citywide budget. This category includes various line-item accounts such as retiree healthcare and citywide operational expenses like property tax assessments and utilities. Also included here are the City’s general liability and property insurance premiums ($1.1 million) and expenses such as public works materials and supplies, telecommunications, fuel, training and conferences, vehicle maintenance, medical and safety supplies and printing and postage.
Pension expenses total $2.7 million, or 7%, of the budget and only include the annual required unfunded pension liability. The City will also make its final annual funding transfer to the City’s Section 115 trust ($1.0 million) for pension mitigation, which is intended to help reduce the long-term liability of pensions.
The citywide budget is rounded out with Debt Service ($509,100) accounting for 1% of the citywide budget.
Another way to view operating expenditures is by function, as depicted in the FY 25-26 Expenditures by Function illustration below. Capital Outlay makes up 20% of operating expenditures. The public safety functions of Ambulance, Fire and Police make up 29% of the budget. The Public Works Department is the next largest operating expenditure at 1% followed by Citywide at 12% of the budget, as it includes the City’s unfunded actuarial pension liability. In total, Administration, Council, Planning, Legal, Marketing (including the Sunset Center), and Library and Community Activities represent the remaining 25% of the Operating Budget.
14 Attachment 1
Total Expenditures Budget %
Administration $3,755,017 9%
Citywide 4,814,943 12%
Council 248,752 1%
Debt 509,100 1%
Legal 517,000 1%
Planning 2,356,051 6%
Ambulance 2,359,760 6%
Fire 3,417,424 9%
Police 5,555,440 14%
Marketing 1,167,981 3%
Library 1,491,904 4%
Community Activities 246,400 1%
Public Works 5,556,028 14%
Operating Budget $31,995,800 80%
Capital 7,999,000 20%
Total $39,994,800 100%
Administration
9%
Citywide
12%
Council1% Legal
1%
Planning
6%
Ambulance
6%
Fire
9%
Police
14%
Marketing
3%
Community Activities
4%
Public Works 14%
Debt
1%
Capital
20%
Workers Comp
0%
FY 25-26 Expenditures by Function
15 Attachment 1
FY25-26 AUTHORIZED POSITIONS
FY 24/25 FY 25/26
Department and Title Adopted Proposed Change
Council
Councilmember 4.00 4.00 0.00
Mayor 1.00 1.00 0.00
City Council Total 5.00 5.00 0.00
Administration
City Administrator 1.00 1.00 0.00
Assistant City Administrator 1.00 1.00 0.00
Administrative Analyst 1.00 1.00 0.00
Administrative Coordinator 1.00 1.00 0.00
City Clerk 1.00 1.00 0.00
Finance Manager 1.00 1.00 0.00
Accountant 1.00 1.00 0.00
Finance Analyst 1.00 1.00 0.00
Finance Specialist 1.00 1.00 0.00
Human Resources Manager 0.00 1.00 1.00
Senior Human Resources Analyst 1.00 0.00 -1.00
Information Services / Network Manager 1.00 1.00 0.00
IT Help Desk/Technician 1.00 1.00 0.00
Administration Total 12.00 12.00 0.00
Community Activities
Community Services Assistant 1.00 0.50 -0.50
Executive Assistant 0.50 0.50 0.00
Community Activities Total 1.50 1.00 -0.50
Library
Director of Library and Community Services 1.00 1.00 0.00 Supervising Librarian 2.00 2.00 0.00
Librarian 1.00 1.00 0.00
Library Associate 0.00 3.00 3.00
Library Assistant (full-time) 4.00 1.00 -3.00
Executive Assistant 0.50 0.50 0.00
Librarian II (Local History) 1.00 0.00 -1.00
Hourly Librarian I 1.00 1.00 0.00
Hourly Library Assistant 3.25 2.00 -1.25
Library Total 13.75 11.50 -2.25
Community Planning & Building
Planning & Building Services Director 1.00 1.00 0.00
Principal Planner 2.00 2.00 0.00
Senior Planner 0.00 1.00 1.00
16 Attachment 1
Associate Planner 2.00 2.00 0.00
Assistant Planner 1.00 0.50 -0.50
Administrative Coordinator 1.00 1.00 0.00
Building Official 1.00 1.00 0.00
Building Inspector 1.00 1.00 0.00
Permit Technician 1.00 1.00 0.00
Code Compliance Coordinator 2.00 1.50 -0.50
Community Planning & Building Total 12.00 12.00 0.00
Public Works
Director of Public Works 1.00 1.00 0.00
Administrative Coordinator 1.00 1.00 0.00
Public Works Superintendent 1.00 1.00 0.00
Street Supervisor 1.00 1.00 0.00
Streets Maintenance Worker III 2.00 2.00 0.00
Streets Maintenance Worker I/II 5.00 5.00 0.00
Facilities Maintenance Supervisor 1.00 1.00 0.00
Facilities Maintenance Specialist 1.00 1.00 0.00
Environmental Compliance Manager 1.00 1.00 0.00
Administrative Analyst 1.00 1.00 0.00
Project Manager 2.00 2.00 0.00
City Forester 1.00 1.00 0.00
Assistant City Forester 1.00 1.00 0.00
Tree Climber & Care Specialist 1.00 1.00 0.00
Administrative Analyst 1.00 1.00 0.00
F&B Maintenance Worker I/II 3.00 3.00 0.00
Tree Permit Technician 1.00 1.00 0.00
Public Works Total 25.00 25.00 0.00
Police
Public Safety Director 1.00 1.00 0.00
Police Commander 1.00 1.00 0.00
Sergeant 2.00 3.00 1.00
Police Officer 9.00 10.00 1.00
Police Services Supervisor 1.00 1.00 0.00
Police Services Officer 6.00 6.00 0.00
Community Services Officer/Animal Control 2.00 2.00 0.00 Police Total 22.00 24.00 2.00
Ambulance
Paramedics 6.00 0.00 -6.00
Ambulance Total 6.00 0.00 -6.00
Citywide Total Funded Positions 97.25 90.50 -6.75
17 Attachment 1
ORGANIZATIONAL CHART
Carmel-by-the-Sea
Electorate
Council
City
Administrator
Community
Planning &
Building Director
Admin
Planning
Building Safety
Code
Compliance
Office of City
Administrator
Admin
City Clerk
Finance
Human
Resources
Information
Technology
Library and
Community
Activities Director
Library
Admin
Circulation
Youth
Reference
Local History
Community
Activities
Public Works
Director
Admin
Project
Management
Environmental
Compliance
Facilities
Streets
Forest, Parks
and Beach
Public Safety
Director
Ambulance
Fire
Police
Assistant City
Administrator
City Attorney
18 Attachment 1
OPERATING BUDGET
GENERAL FUND - 101
(CITY DEPARTMENTS AND SERVICES)
19 Attachment 1
CITY COUNCIL
The City Council consists of the Mayor and four Councilmembers, elected at large by the citizens of Carmel-by-the-Sea on a non-partisan basis. The City Council is the policymaking legislative body of the City. The Council adopts the annual budget, enacts ordinances, and approves major contracts, acquisitions, and leases. With the advice and assistance of the City Administrator and City Attorney, the City Council reviews proposals to meet the community’s needs, initiates action for new policies and allocates resources. 2024-2025 INITIATIVES AND ACCOMPLISHMENTS
▪ Develop Telecommunication Ordinance consistent with federal law ▪ Stormwater Ordinance Update ▪ Car Week Safety and Impacts ▪ Review barriers to construction of affordable housing (Housing Element Adoption) 2025-2026 PRIORITIES
▪ Continued oversight of the implementation of the strategic plan and updating of City priorities to include some of the following: plan for natural areas, reduce fire risk, review opportunities for enhanced fire/ambulance service; develop forest management plan and update tree ordinance; update zoning code & design guidelines; ADU ordinance; wireless ordinance; increase beautification effort; review barriers to affordable housing; explore street addresses, develop a facilities master plan; underground utilities rule 20A; explore reinstatement of design review board; explore opportunities for Flanders Mansion and Scout House. ▪ Continue to respond to any forthcoming State legislation that undermines local control, especially as it relates to local land-use decisions.
BUDGET SUMMARY AND SERVICE IMPACTS
▪ Community Promotions includes $36,000 for the Council discretionary grant program, $3,000 for United Way 211, $4,000 for the Monterey County Film Commission, $7,500 for the Central Coast Small Business Development Center and $78,000 for the cost of courier service for the mail delivery program for a total budget of $128,500. 20 Attachment 1
City Council
Account Number Account Description FY24-25
Amended
Budget
FY24-25
Estimated
Actual
FY25-26
Proposed
Budget
101-110-00-41008 Salaries -Elected $9,600 $10,351 $9,600 101-110-00-41101 Retirement 88 175 179
101-110-00-41104 Health Insurance 52,517 37,161 24,755
101-110-00-41105 Social Security 484 530 0
101-110-00-41106 Medicare 139 150 139
101-110-00-41108 Worker's Comp 160 3,122 514
Salaries & Benefits Subtotal $62,988 $51,489 $35,187
101-110-00-42005 Community Promotions $128,600 $167,153 $128,500 101-110-00-42007 Regional Memberships 50,546 50,546 53,065 101-110-00-42101 Office Supplies 450 0 450
101-110-00-42302 Conferences & Meetings 10,350 12,703 31,550 Services & Supplies Subtotal $189,946 $230,402 $213,565 Total $252,934 $281,891 $248,752
Regional Memberships
Account Number Account Description FY24-25
Amended
Budget
FY24-25
Estimated
Actual
FY25-26
Proposed
Budget
101-110-00-42007 TAMC $1,295 $1,295 $1,360
101-110-00-42007 AMBAG 3,950 3,950 4,100
101-110-00-42007 Monterey Pen. Chamber of Commerce 900 900 950 101-110-00-42007 Monterey County Mayors Association 1,575 1,575 1,700 101-110-00-42007 Monterey County Business Council 500 500 525 101-110-00-42007 MBUAPCA 1,900 1,900 2,000
101-110-00-42007 League of CA Cities 3,380 3,380 3,600
101-110-00-42007 League of CA Cities- Monterey Bay 300 300 315 101-110-00-42007 LAFCo 16,796 16,796 18,000
101-110-00-42007 Community Human Services 19,175 19,175 19,700 101-110-00-42007 CoastWalks/Coastal Trail Association 300 300 315 101-110-00-42007 Carmel Chamber of Commerce 475 475 500 Total $50,546 $50,546 $53,065
21 Attachment 1
CITY ATTORNEY
The City Council appoints the City Attorney. The City Attorney represents the City as legal counsel and provides legal advice and/or training to the City Council, City Administrator, boards, commissions, and departments; investigates and resolves claims against the City; defends the City in litigation and administrative actions; initiates and prosecutes litigation on behalf of the City; and drafts and reviews legal documents and agenda items.
BUDGET SUMMARY AND SERVICE IMPACTS
▪ The FY 25-26 City Attorney budget totals $517,000 and consists of $435,000 for general legal services and $75,000 for other specialized legal assistance from the City attorney’s office, including labor negotiations and personnel. The budget also includes $7,000 for the City attorney’s annual performance evaluation. There are no changes from FY 24-25 adopted budget.
▪ $75,000 is budgeted for supplementary specialized legal costs, such as wireless communications and labor negotiations.
City Attorney
Account Number Account Description FY24-25
Amended
Budget
FY24-25
Estimated
Actual
FY25-26
Proposed
Budget
101-112-00-42001 Contract Services $442,000 $399,171 $442,000 101-112-00-42004 Legal Costs 75,000 18,158 75,000
Total $517,000 $417,329 $517,000
22 Attachment 1
ADMINISTRATION
The City Administrator is appointed by the City Council and is ultimately responsible for the enforcement of City laws and ordinances; ensuring that the orders of the City Council are executed; preparing the budget and monitoring City finances; and managing day-to-day operations of all City Departments. The Assistant City Administrator serves at the behest of the City Administrator to assist in managing the activities and operations of the City, act in the absence of the City Administrator, and serve as the Director of the centralized administrative city functions of City Clerk, Finance, Human Resources, and Information Technology.
2024-2025 INITIATIVES AND ACCOMPLISHMENTS
▪ Successfully adopted a Social Media Policy and launched official City Instagram and Facebook accounts to enhance public engagement. ▪ Procured ArchiveSocial to ensure compliance with public records laws by archiving all social media activity.
▪ Acquired an ethics training and tracking module for City Council, Commissioners, and staff to improve compliance and streamline reporting. ▪ Awarded Certificate of Achievement for Excellence in Financial Reporting for the City’s Annual Comprehensive Financial Report for the Fiscal Year ended June 30, 2023.
▪ Purchased a new agenda management system, currently in the data migration, training, and implementation phase, to improve workflow and public accessibility.
▪ Conducted a successful municipal election in November 2024. ▪ Managed and coordinated recruitment efforts for City Boards and Commissions.
▪ Issued 617 fixed location and 1158 in & about business licenses ▪ 249 high heel permits issued in FY24-25, a 50% increase over the 166 high permits issued in the prior year.
▪ Replaced the city's high availability firewalls with new state-of-the-art hardware for many years of stable network security features and capabilities. ▪ IT audit by firewall expert to improve the configuration of and significantly strengthen the City’s overall network security.
▪ Replacement of core switches that tie our servers, storage and various network switches in the city together to make a complete enterprise grade system. ▪ Improved our remote management and monitoring system by adding significant capabilities to that system.
23 Attachment 1
▪ Windows 11 workstations roll out in 2024. IT deployed 15 new workstations and refurbished 7 systems to increase the RAM and maximize the usefulness and life of the hardware.
2025-2026 PRIORITIES
▪ Digitize all historic City records, including Resolutions, Ordinances, and Meeting Minutes, to improve accessibility and preserve institutional history. ▪ Explore Street Addresses
▪ Strategically implement Laserfiche software to create a centralized, webbased platform for efficient records management and public access. ▪ Evaluate and identify cost-effective off-site storage solutions to reduce physical storage needs and optimize space within City facilities. ▪ Review and update reserve and financial policies.
▪ Creation of web dashboard interface for more transparent fiscal reporting ▪ Implement an electronic payment portal for the collection of administrative fees, including business licenses, TOT tax collections, and CRID administration. ▪ Upgrade computer fleet to Windows 11 and prepare to pay for extended security update costs for any remaining Windows 10 computers. ($61/yr per PC) ▪ Analyze departmental software priorities so that a strategic plan is developed which minimizes incompatible software.
24 Attachment 1
BUDGET SUMMARY AND SERVICE IMPACTS
Office of the City Administrator
Account Number Account Description FY24-25
Amended
Budget
FY24-25
Estimated
Actual
FY25-26
Proposed
Budget
101-111-00-41001 Salaries $1,849,792 $1,688,028 $1,941,453 101-111-00-41005 Overtime 0 29 0
101-111-00-41101 Retirement 125,810 102,562 120,362
101-111-00-41103 Deferred Compensation 48,261 46,348 45,431 101-111-00-41104 Health Insurance 363,609 295,216 409,231 101-111-00-41106 Medicare 26,821 24,342 28,151
101-111-00-41107 LTD/STD/Life 1,691 1,458 4,073
101-111-00-41108 Worker's Comp 40,958 75,569 104,586
101-111-00-41109 Benefits-MOU Obligations 10,400 9,672 10,400 Salaries & Benefits Subtotal $2,467,342 $2,243,224 $2,663,687 101-111-00-42001 Contract Services $198,615 $197,734 $323,500 101-111-00-42002 Recruiting Services 71,100 18,652 57,500 101-111-00-42003 Auditing Services 87,000 38,325 96,500 101-111-00-42006 Records Management 7,000 10,251 25,000 101-111-00-42009 Advertising and Legal Notice 22,900 10,833 15,000 101-111-00-42015 Other Services 24,800 23,575 24,800
101-111-00-42101 Office Supplies 10,875 6,566 7,875
101-111-00-42102 Publications & Subscriptions 277,568 304,016 275,400 101-111-00-42105 Materials and Supplies 0 408 500
101-111-00-42106 Small Tools and Equipment 1,200 0 0
101-111-00-42115 Other Supplies 0 0 5,000
101-111-00-42202 Equipment Maintenance 23,100 9,850 8,750 101-111-00-42301 Training & Education 8,712 6,798 18,400 101-111-00-42302 Conferences & Meetings 22,125 14,245 17,625 101-111-00-42304 Dues & Memberships 12,550 3,282 3,580
101-111-00-42306 Employee Programs 3,000 83 6,000
101-111-00-42307 Employee Appreciation Costs 18,500 26,093 20,000 101-111-00-42403 Printing 9,800 5,769 5,900
101-111-00-42404 Shipping/Postage/Freight 24,545 11,835 500 101-111-00-42405 Telephone and Communications 109,500 140,799 125,000 101-111-00-42406 Bank & Merchant Fees 4,000 4,573 4,500 101-111-00-42407 Computer Non Capital 2,000 2,136 40,000 101-111-00-42410 Pre-employment Costs 3,000 2,680 4,000 Services & Supplies Subtotal $941,890 $838,502 $1,085,330 Total $3,409,232 $3,081,726 $3,749,017
25 Attachment 1
ADMINISTRATION
The Administration Divisional budget includes funding for the City Administrator’s performance evaluation within contract services, office supplies, copier fees, and the citywide postage meter.
Administration
Account Number Account Description FY24-25
Amended
Budget
FY24-25
Estimated
Actual
FY25-26
Proposed
Budget
101-111-10-42001 Contract Services $44,900 $16,445 $10,000 101-111-10-42015 Other Services 24,800 23,575 2,350
101-111-10-42101 Office Supplies 9,375 5,853 6,375
101-111-10-42102 Publications & Subscriptions 540 209 540 101-111-10-42302 Conferences & Meetings 11,325 13,722 5,325 101-111-10-42304 Dues & Memberships 5,350 2,915 1,350
101-111-10-42403 Printing 100 0 100
101-111-10-42404 Shipping/Postage/Freight 24,545 11,835 500 Services & Supplies Subtotal $120,935 $74,554 $26,540
CITY CLERK
The City Clerk provides timely and accessible service in response to all inquiries and requests for public information and records, and is responsible for the administration of elections, public records requests processing, records management, and the legislative process. The Clerk Records the City’s legislative history through approved minutes and maintaining City Ordinances and the Municipal Code; facilitates applications for appointments to boards and commissions and coordinates Statements of Economic Interest as well as campaign and other financial disclosure-related filings.
26 Attachment 1
City Clerk
Account Number Account Description FY24-25
Amended
Budget
FY24-25
Estimated
Actual
FY25-26
Proposed
Budget
101-111-11-42001 Contract Services $52,300 $51,413 $48,300 101-111-11-42006 Records Management 7,000 10,251 25,000 101-111-11-42009 Advertising and Legal Notice 15,000 9,006 15,000 101-111-11-42101 Office Supplies 1,000 448 1,000
101-111-11-42115 Other Supplies 0 0 5,000
101-111-11-42302 Conferences & Meetings 2,000 487 3,000 101-111-11-42304 Dues & Memberships 500 143 500
101-111-11-42403 Printing 5,500 3,590 2,500
Services & Supplies Subtotal $83,300 $75,336 $100,300
FINANCE
Finance provides financial analysis, management and reporting through the development of the annual budget, ongoing financial monitoring and reporting of revenues and expenditures. Routine financial duties including vendor payments, payroll, business license processing and the collection of the transient occupancy tax and the administration of passthrough funding to the hospitality and tourism improvement districts. The Finance Department also provides treasury services, invests revenue, and issues and manages debt.
Finance
Account Number Account Description FY24-25
Amended
Budget
FY24-25
Estimated
Actual
FY25-26
Proposed
Budget
101-111-12-42001 Contract Services $47,710 $89,516 $69,200 101-111-12-42003 Auditing Services 87,000 38,325 96,500 101-111-12-42101 Office Supplies 0 46 0
101-111-12-42102 Publications & Subscriptions 21,000 1,887 29,350 101-111-12-42301 Training & Education 2,500 1,735 2,400 101-111-12-42304 Dues & Memberships 600 225 350
101-111-12-42403 Printing 3,800 1,798 2,900
101-111-12-42406 Bank & Merchant Fees 4,000 4,573 4,500 Services & Supplies Subtotal $166,610 $138,105 $205,200 27 Attachment 1
HUMAN RESOURCES
Human Resources (HR) recruits, develops, and retains a diverse, well-qualified workforce that reflects the high standards of the community, and leads the City Departments in positive employee relations, talent management, succession planning, and employee engagement. Services include employee orientation, recruitment, performance assessment, compensation and job classification assessments, safety and wellness programs, and organization development. HR Staff is responsible for negotiating Memorandums of Understanding with the City’s three labor bargaining units, subject to Council direction and approval.
The HR divisional budget includes funding for implementing new employee supplemental benefits, managing an updated and expanded citywide safety program, and digitizing personnel records using Laserfiche. Funding for the staff appreciation events, such as the annual holiday party, is now separately reflected in the budget under Employee Appreciation.
HR
Account Number Account Description FY24-25
Amended
Budget
FY24-25
Estimated
Actual
FY25-26
Proposed
Budget
101-111-13-42001 Contract Services $8,100 $6,404 $90,000 101-111-13-42002 Recruiting Services 71,100 18,652 57,500 101-111-13-42009 Advertising & Legal Notice 7,900 1,828 6,000 101-111-13-42101 Office Supplies 500 219 500
101-111-13-42102 Publications & Subscriptions 1,700 125 25,300 101-111-13-42301 Training & Education 1,500 888 6,000
101-111-13-42302 Conferences & Meetings 8,800 36 3,800
101-111-13-42304 Dues & Memberships 6,100 0 680
101-111-13-42306 Employee Programs 3,000 83 6,000
101-111-13-42307 Employee Appreciation Costs 18,500 26,093 20,000 101-111-13-42403 Printing 400 381 400
101-111-13-42410 Pre-employment Costs 3,000 2,680 4,000 Services & Supplies Subtotal $130,600 $57,387 $220,180
INFORMATION TECHNOLOGY
Information Technology (IT) provides innovative and secure technology solutions that support City departments in delivering quality services to the community. The purpose of IT is to provide a broad range of high-quality technology-related solutions to employees, departments, Councilmembers, and the community. In addition, IT supports and 28 Attachment 1
continuously improves essential technology infrastructure for enabling day-to-day operations of the City.
IT
Account Number Account Description FY24-25
Amended
Budget
FY24-25
Estimated
Actual
FY25-26
Proposed
Budget
101-111-14-42001 Contract Services $45,605 $33,957 $106,000 101-111-14-42102 Publications & Subscriptions 254,328 301,795 220,210 101-111-14-42015 Other Services 0 0 22,450
101-111-14-42105 Materials and Supplies 0 408 500
101-111-14-42106 Small Tools and Equipment 1,200 0 0
101-111-14-42202 Equipment Maintenance 23,100 9,850 8,750 101-111-14-42301 Training & Education 2,612 3,918 10,000 101-111-14-42302 Conferences & Meetings 0 0 5,500
101-111-14-42304 Dues & Memberships 0 0 700
101-111-14-42405 Telephone and Communications 109,500 140,799 125,000 101-111-14-42407 Computer Non capital 2,000 2,136 40,000 Services & Supplies Subtotal $438,345 $492,863 $539,110 29 Attachment 1
CITYWIDE (NON-DEPARTMENTAL)
Citywide, or Non-Departmental costs, are expenses that are spread across the entire organization. These items include the unfunded pension liability, the City’s insurance premiums for general liability and property insurance, and the City’s share of costs toward retiree healthcare. Other operational expenses include utilities, property tax assessments and the administrative fee charged by Monterey County for property tax collection.
BUDGET SUMMARY AND SERVICE IMPACTS
▪ In addition to the employer contribution toward retirement for City employees, the City also is responsible for pension obligations for the unfunded actuarial liability (“UAL”). This amount increases by $408,672 or 18%, in FY 25-26 compared to the FY 24-25 Adopted Budget. The FY24-25 lump sum payment was paid in July 2024 for a savings of $76,865
▪ The City will pay the annual lump sum UAL in July, which will result in approximately $87,633 of interest savings.
▪ On September 7, 2021, Council authorized the adoption of a Section 115 Trust known as the Public Agencies Post Employment Benefits Trust administered by the Public Agency Retirement Service (PARS). Since then, City staff has deposited four (4) $1 million annual contributions into the Trust, which were approved by Council to be made over a period of five years. The City will be contributing the fifth and final annual $1 million tranche into the Section 115 Trust in FY 25-26. ▪ The City’s liability insurance premiums are budgeted at $1,103,940, an increase by $125,000, or 11%.
The utility expenses for the Forest Theater are separated out for tracking purposes, as required by the lease with the Pacific Repertory Theater.
Non-Departmental
Account Number Account Description FY24-25
Amended
Budget
FY24-25
Estimated
Actual
FY25-26
Proposed
Budget
101-130-00-42501 Liability Insurance Premium $1,102,500 $979,407 $1,103,940 101-130-00-42503 PERS UAL Payment 2,299,486 2,298,486 2,708,158 101-130-00-42504 Insurance Claims Paid 50,000 0 100,000 101-130-00-42505 Utilities 324,500 396,481 464,000
101-130-00-42506 Property Tax Assessments 100,000 94,134 100,000 101-130-00-42508 Unemployment Costs 15,000 10,541 15,000 101-130-00-42510 Retiree Health Share 95,000 84,207 87,000 101-130-00-42511 County Property Tax Admin Fees 98,000 98,000 75,000 101-130-00-42512 Forest Theater Utilities 10,000 0 10,000 Total $4,094,486 $3,961,255 $4,663,098
30 Attachment 1
ECONOMIC DEVELOPMENT
Two of the City’s unique facilities include the performing arts venue known as the Sunset Community and Cultural Center and the Forest Theater, an outdoor amphitheater. These locations support musical performances, lectures and other cultural activities that enhance the quality of life for residents and promote the City and the Monterey Peninsula as an artistic and cultural destination.
In 2017, the City entered into a lease agreement with the Sunset Cultural Center, Inc. (SCC) for the management of these facilities and the terms of the lease require the City to make an annual grant to SCC to support operations. In 2021, Sunset Cultural Center, Inc.’s management of the Forest Theater ended. The annual grant for management of only Sunset Center remains in the budget.
In 2021, the City entered into a lease agreement with Pacific Repertory Theater (Pac Rep) for the management of the Forest Theater. This new lease does not require an operational grant payment. Rather, the City pays for a portion of utilities and repairs, which are budgeted in the Citywide (Non-Departmental) and Public Works budgets, respectively.
The City funds two organizations, Visit Carmel and See Monterey to manage visitors. Visit Carmel, as the City’s destination marketing organization (DMO), maintains the City’s official travel website (www.carmelcalfornia.com) and develops targeted and seasonal marketing campaigns to encourage visitors to stay overnight, dine, and shop within the Village. See Monterey, as the DMO for all of Monterey County, works to manage and educate visitors coming to the broader County who may also choose to visit Carmel-by-theSea.
In addition to supporting these visitor management organizations with General Fund revenues, the City also collects a tourism improvement district assessment from its lodging establishments on behalf of the County and remits these pass-thru funds to See Monterey on a bi-monthly basis. The City also collects an assessment on lodging through the Carmel Hospitality Improvement District and remits these funds to Visit Carmel for the marketing of overnight stays within the Village during mid-week and the non-peak season. As of January 1, 2019, the City also began collecting an assessment from full-service restaurants on behalf of the Carmel Restaurant Improvement District (CRID) and remits these funds to Visit Carmel for marketing efforts to increase food and beverage sales within the City. An ordinance of the City Council renewed the CRID for a term of nine years and six months beginning January 1, 2024 and ending on June 30, 2033.
Another partner agency is the Carmel Chamber of Commerce, which operates the Visitor Center in town, publishes a comprehensive visitor guide, and assists businesses. The Chamber also supports small businesses and provides services to assist its members, including listing businesses on the Chamber website, providing educational programs, 31 Attachment 1
conducting outreach with businesses via weekly business walks with City elected officials and staff and marketing opportunities to “shop locally”.
BUDGET SUMMARY AND SERVICE IMPACTS
Funding for Visit Carmel has and continues to be budgeted in the amount of $120,000 annually. Funding to See Monterey is $270,000, which equates to 3% of the FY 25-26 Transient Occupancy Tax revenue budget of $9.1 million.
Economic Development
Account Number Details FY24-25
Amended
Budget
FY24-25
Estimated
Actual
FY25-26
Proposed
Budget
101-122-00-42008 SCC- Sunset Center Operating Grant $750,000 $750,000 $750,000 101-122-00-42008 See Monterey 226,297 226,297 270,485
101-122-00-42008 Visit Carmel 120,000 120,000 120,000
101-122-00-42008 Carmel Chamber of Commerce 60,000 60,000 60,000 Total $1,156,297 $1,156,297 $1,200,485
32 Attachment 1
LIBRARY AND COMMUNITY ACTIVITIES
LIBRARY
The Library is an efficient medium for the free and
equitable distribution and exchange of books,
information, and ideas; and a recognized social
center providing the community with a place to
learn, interact and gather. The Library aspires to be
a welcoming place, in-person and virtually, where
reading, learning and imagination thrive; a
recognized leader and respected voice in our
community; and a model library in our industry.
A five-member Board of Trustees appointed by the
City Council governs the Library. The Harrison
Memorial Library Board of Trustees, the Carmel
Public Library Foundation, Harrison Memorial
Library Friends of the Library, and the City work
together in partnership to sustain the vital and
historic tradition of providing free public library service of excellent quality for the residents and visitors of the City of Carmel and the Monterey Peninsula. 2024-2025 WORKLOAD INDICATORS / PERFORMANCE MEASURES
▪ 19,773 reference and information questions were answered. ▪ 4,253 library cards were issued.
▪ 84,967 library items were circulated.
▪ 6,841 people attended library programs.
▪ 136,542 visits were made to the library.
▪ 9,723 log-ins were made to library wi-fi.
▪ 115,162 digital items (e-books, audios, magazines, films, music) were accessed. ▪ 10 new oral history interviews were captured.
2024-2025 INITIATIVES AND ACCOMPLISHMENTS
▪ Increased the number and type of Adult programs at the Harrison Library, including music, crafts, educational, history, and games - encouraging community connection both among adults and intergenerationally.
33 Attachment 1
▪ Reconfigured the vault in the Local History Department to better align with archival standards for storage.
▪ Negotiated a contract with the Carmel Public Library Foundation for the funding of the renovation of the Harrison Memorial Library
2025-2026 PRIORITIES
▪ Begin working on accomplishing new Library Strategic Plan objectives including resource sharing with Monterey and Pacific Grove Libraries.
▪ Develop a plan and cost analysis for the relocation of library services during the Harrison Memorial Library renovation project
BUDGET SUMMARY AND SERVICE IMPACTS
The City funds the personnel and building maintenance costs for operating the Main and Park Branch libraries. The sources of funding for library materials, programs and services are the Carmel Public Library Foundation, the Friends of the Library, and other donations.
Library
Account Number Account Description FY24-25
Amended
Budget
FY24-25
Estimated
Actual
FY25-26
Proposed
Budget
101-120-00-41001 Salaries $920,168 $787,355 $891,531
101-120-00-41003 Salaries -Part time 301,662 111,175 258,518 101-120-00-41101 Retirement 58,669 52,159 55,657
101-120-00-41103 Deferred Compensation 15,600 10,163 11,152 101-120-00-41104 Health Insurance 158,212 126,199 154,350 101-120-00-41105 Social Security 18,703 6,029 16,028
101-120-00-41106 Medicare 17,716 12,924 16,676
101-120-00-41107 LTD/STD/Life 1,205 978 1,350
101-120-00-41108 Worker's Comp 30,324 45,503 61,582
101-120-00-41109 Benefits-MOU Obligations 16,640 14,082 14,560 Salaries & Benefits Subtotal $1,538,899 $1,166,567 $1,481,404 101-120-00-42001 Contract Services $6,530 $5,539 $10,500 Services & Supplies Subtotal $6,530 $5,539 $10,500
Total $1,545,429 $1,172,106 $1,491,904
34 Attachment 1
COMMUNITY ACTIVITIES
The Community Activities Department
encourages and supports the interaction
of neighbors, friends, families and
visitors through the shared experience of
special events, programs, and gatherings
which bring the community together
virtually and in-person safely on the
City’s streets and in its parks and create
opportunities to interact, celebrate,
enrich people’s lives, and promote
inclusiveness.
The Community Activities Department facilitates the weekly Farmers’ Market, permitting special events, beach events, and filming, in addition to organizing the City’s annual special events (Memorial Day, 4th of July, Sandcastle Contest, Pumpkin Roll, Halloween Parade, Veteran’s Day, Homecrafters’ Marketplace, and Holiday Menorah and Tree-lighting). 2024-2025 WORKLOAD INDICATORS / PERFORMANCE MEASURES
▪ Planned and facilitated ten City special events
▪ An estimated 6,000 people attended City Special Events. ▪ Issued 53 event, beach, and film permits.
2024-2025 INITIATIVES AND ACCOMPLISHMENTS
▪ Collaborated with Public Works on a combined Community, Earth, and Arbor Day celebration, in addition to
the annual Community Day
event in the Fall.
▪ Continue to work with Car
Week event organizers to
build Car Week in Carmel
back to something like it
was pre-pandemic.
2025-2026 PRIORITIES
▪ Explore potential new
initiative and events with
community partners.
▪ Explore options for a new Community Activities Commission with commissioners. 35 Attachment 1
▪ Continuing to facilitate community gatherings and
special events, and ensure that processes are streamlined and conducive to encouraging events within the bounds of current city regulations.
▪ Continue to keep the Council informed on new
initiatives and provide report outs on items like Car Week and the Farmers’ Market.
BUDGET SUMMARY AND SERVICE IMPACTS
Community Activities Department expenses include costs for advertising, banners and signage, event and office supplies for City events, equipment replacements, Community Activities Commission initiatives, and the Farmers’ Market.
Community Activities
Account Number Account Description FY24-25
Amended
Budget
FY24-25
Estimated
Actual
FY25-26
Proposed
Budget
101-121-00-41001 Salaries $154,116 $48,282 $60,403
101-121-00-41101 Retirement 14,672 4,593 5,370
101-121-00-41103 Deferred Compensation 2,100 600 1,200
101-121-00-41104 Health Insurance 35,379 5,351 13,770
101-121-00-41106 Medicare 2,235 675 1,291
101-121-00-41107 LTD/STD/Life 205 57 203
101-121-00-41108 Worker's Comp 9,948 4,375 4,768
101-121-00-41109 Benefits-MOU Obligations 2,080 0 0
Salaries & Benefits Subtotal $220,735 $63,933 $87,005
101-121-00-42001 Contract Services $88,245 $90,226 $111,040 101-121-00-42005 Community Promotions 23,465 13,578 9,340 101-121-00-42009 Advertising and Legal Notice 8,300 2,381 6,950 101-121-00-42101 Office Supplies 250 253 200
101-121-00-42403 Printing 300 362 1,440
Services & Supplies Subtotal $120,560 $106,800 $128,970 Total $341,295 $170,732 $215,975
36 Attachment 1
COMMUNITY PLANNING AND BUILDING
The Community Planning and Building Department (CPB) includes the Planning, Building and Code Compliance Divisions and is responsible for preserving community character while fostering a vibrant community and a high quality of life for its residents, businesses and visitors.
PLANNING
The Planning Division processes current development applications, maintains the General Plan, and ensures that capital programs, zoning and other activities of the City are consistent with the goals and policies of the Plan.
BUILDING SAFETY
The Building Safety Division is responsible for plans examination and inspections of City and private development projects to ensure compliance with building codes.
CODE COMPLIANCE
The Code Compliance Division ensures compliance with the City Municipal Code. This function includes public education and outreach on existing laws and resolving code violations.
37 Attachment 1
2024-2025 INITIATIVES AND ACCOMPLISHMENTS
▪ Continued implementation of the CPB 2019 strategic plan, with a focus on customer service, technology, and streamlining processes.
▪ Began year one of eight to implement the
General Plan Housing Element and utilize State
grant funding through the Regional Early Action
Planning (REAP) 2.0 program.
▪ Adopted Phase 2 (final phase) of the Historic
Context Statement update.
▪ Completed a successful recruitment to install a
new Director of Community Planning and Building
▪ Engaged staff to participate in more training
opportunities to continue the professionalization
and growth of the Community Planning and
Building Department.
▪ Certified LCP Amendment for Citywide Wireless
Ordinance
2025-2026 PRIORITIES
▪ Complete the scanning/digitizing of rolled
building plans currently in storage at Vista Lobos.
▪ Formalize a Long-Range Planning work plan to help with planning and tracking ordinance related tasks.
▪ Adopt the General plan Safety Element updates by December 2025 ▪ Adoption of: (1) updated Accessory Dwelling Unit Ordinance; (2) updated Beach Fire Ordinance.
▪ Adoption of updated Design Guidelines and Zoning Code through the Design Traditions 1.5 Project.
38 Attachment 1
BUDGET SUMMARY AND SERVICE IMPACTS
Community Planning & Building
Account Number Account Description FY24-25
Amended
Budget
FY24-25
Estimated
Actual
FY25-26
Proposed
Budget
101-115-00-41001 Salaries $1,305,494 $1,073,094 $1,561,919 101-115-00-41005 Overtime 3,623 1,662 0
101-115-00-41101 Retirement 81,116 53,787 83,399
101-115-00-41103 Deferred Compensation 10,200 7,369 11,896 101-115-00-41104 Health Insurance 348,542 232,628 327,028 101-115-00-41106 Medicare 20,423 15,052 22,648
101-115-00-41107 LTD/STD/Life 1,664 1,223 1,994
101-115-00-41108 Worker's Comp 30,330 51,954 83,899
101-115-00-41109 Benefits-MOU Obligations 20,800 18,534 22,880 Salaries & Benefits Subtotal $1,822,192 $1,455,303 $2,115,663 101-115-00-42001 Contract Services $344,833 $304,719 $179,135 101-115-00-42009 Advertising and Legal Notice 500 0 0
101-115-00-42101 Office Supplies 6,400 1,820 7,100
101-115-00-42102 Publications & Subscriptions 1,425 334 18,138 101-115-00-42104 Safety Equipment and Supplies 2,700 0 1,700 101-115-00-42107 Gas and Oil 250 0 100
101-115-00-42115 Other Supplies 3,950 1,694 4,300
101-115-00-42301 Training & Education 12,305 5,099 11,305 101-115-00-42302 Conferences & Meetings 10,150 4,045 10,700 101-115-00-42304 Dues & Memberships 5,880 1,095 6,760
101-115-00-42403 Printing 1,000 2,001 1,150
Services & Supplies Subtotal $389,393 $320,807 $240,388 Total $2,211,584 $1,776,110 $2,356,051
Planning contract services ($79,200 total) includes items such as Safety Element updates, Housing Element Amendments, and GIS updates. The City will receive various State grant awards to offset some of the contract services associated with the Housing Element implementation.
In an effort to continue professionalizing and growing the Board and Commission members along with the Community Planning and Building Department staff, the overall budget for training and education has been increased to include training for boards and commissions.
39 Attachment 1
Community Planning & Building: Planning
Account Number Account Description FY24-25
Amended
Budget
FY24-25
Estimated
Actual
FY25-26
Proposed
Budget
101-115-20-42001 Contract Services $239,033 $290,471 $79,200 101-115-20-42009 Advertising and Legal Notice 500 0 0
101-115-20-42101 Office Supplies 6,400 1,820 7,100
101-115-20-42102 Publications & Subscriptions 1,425 244 1,138 101-115-20-42104 Safety Equipment and Supplies 2,700 0 1,700 101-115-20-42115 Other Supplies 1,750 1,262 575
101-115-20-42301 Training & Education 6,825 2,994 6,825 101-115-20-42302 Conferences & Meetings 4,000 1,859 4,000 101-115-20-42304 Dues & Memberships 3,800 750 4,680
101-115-20-42403 Printing 1,000 2,001 1,150
Services & Supplies Subtotal $267,433 $301,401 $106,368 Community Planning & Building: Building
Account Number Account Description FY24-25
Amended
Budget
FY24-25
Estimated
Actual
FY25-26
Proposed
Budget
101-115-21-42001 Contract Services $90,800 $14,026 $84,935 101-115-21-42102 Publications & Subscriptions 0 90 17,000 101-115-21-42107 Gas and Oil 250 0 100
101-115-21-42115 Other Supplies 2,200 431 2,225
101-115-21-42301 Training & Education 4,480 2,105 4,480 101-115-21-42302 Conferences & Meetings 3,350 2,114 4,300 101-115-21-42304 Dues & Memberships 2,080 345 2,080
Services & Supplies Subtotal $103,160 $19,112 $115,120
Community Planning & Building: Code Compliance
Account Number Account Description FY24-25
Amended
Budget
FY24-25
Estimated
Actual
FY25-26
Proposed
Budget
101-115-22-42001 Contract Services $15,000 $222 $15,000 101-115-22-42115 Other Supplies 0 0 1,500
101-115-22-42301 Training & Education 1,000 0 0
101-115-22-42302 Conferences & Meetings 2,800 71 2,400
Services & Supplies Subtotal $18,800 $293 $18,900
40 Attachment 1
PUBLIC WORKS
The mission of the Public Works Department is to plan, design, construct, operate, and maintain public infrastructure, streets, sidewalks, storm drains, building facilities, the urban forest, parks, and beach that contribute to the health, safety, and well-being of the Village. Public Works consists of an administrative unit and five operating divisions with responsibilities as follows:
ADMINISTRATION
The Administration Division prepares Council agenda reports, monthly status reports, and annual 5-year Capital Improvement Plan, make presentations, serves as Executive Team liaison to the Forest and Beach Commission and on the Transportation Agency for Monterey County Technical Advisory Committee (TAMC TAC) and Traffic Safety Committees, liaison to volunteer groups throughout the City, performs engineering services, and provides administrative support, budgeting, scheduling, and performance oversight of the operating divisions.
STREET MAINTENANCE
The Street Maintenance Division supervises Public Works field personnel, prioritizes and allocates equipment, tools, and material resources, repairs streets, potholes, sidewalks, curbs, fencing, storm drainage system, berms, traffic signs, striping, and pavement markings, performs street sweeping, provides fleet maintenance services, reviews utility and encroachment permit applications, supports City events, and provides emergency response.
FACILITIES MAINTENANCE
The Facilities Maintenance Division maintains and repairs 20 City-owned buildings and facilities with 137,000 square feet, including 8 historic buildings nearly 100 years old, supports facility renovation capital improvements, oversees janitorial contract, obtains quotes and manages building trade contractors, implements ADA projects, and performs annual fire safety apparatus, generators, and
backflow inspections.
ENVIRONMENTAL COMPLIANCE
The Environmental Compliance Division enforces
State storm water quality and waste
reduction/recycling regulations, oversees the City’s
waste hauler contract, implements Climate Action
and Adaptation Plan projects, serves on ReGen
Monterey and Monterey Regional Stormwater
41 Attachment 1
Management Program TAC committees, manages sensitive projects in the North Dunes and Mission Trail Nature Preserve (MTNP), evaluates energy reduction initiatives, and coordinates with partners on resiliency, environmental, and sustainability-focused projects.
FORESTRY, PARKS AND BEACH
The Forestry, Parks and Beach Division performs tree
management for 12,000+ City trees, including planting, pruning, and removal services, prepares reports and presentations for Forest & Beach Commission meetings, maintains eight City parks, Carmel Beach, open spaces, and landscaped islands, collaborates with volunteer organizations, processes tree removal/pruning permits, reviews private development
applications, manages multiple on-call tree care and landscape maintenance service contractors, and provides emergency response during storms.
PROJECT MANAGEMENT
The Project Management Division implements planning, engineering, design, public bidding, and construction- of capital improvement projects, including transportation, drainage, and facility renovation projects, performs condition assessments, manages consultants and contractors, coordinates with utilities and other City departments, prepares special conditions of approval for major encroachment permits, checks technical reports and plans, obtains permits, and prepares specifications, contract documents, and cost estimates.
2024-2025 INITIATIVES AND ACCOMPLISHMENTS
Street and Sidewalk Maintenance
▪ Used 28 tons of asphalt for in-house street repairs.
▪ Installed a split rail fence on Ocean Avenue (San Antonio to Del Mar). ▪ Created and installed new bus parking signs on Junipero Street and Carmel Plaza. ▪ Completed slurry seal of the City Hall parking lot.
▪ Completed the AB 413 daylighting changes.
▪ Began the 24/25 Drainage Repair Project.
▪ Implemented new sidewalk survey software.
▪ Repaired dozens of downtown sidewalks and associated tree wells.
Habitat Restoration & Environmental Oversight
▪ Supported volunteer and reporting efforts at the North Dunes Habitat Restoration Area with Native Solutions and Denise Duffy & Associates. 42 Attachment 1
▪Installed new signage and created trail
maps at all five entrances of Mission Trail
Nature Preserve (MTNP) with Friends of
MTNP (FOMTNP).
▪Oversaw MTNP 3 Streams Project
compliance with ACOE, RWQCB, and
CDFW permits.
▪Regularly cleaned the beach and
conducted in-house sand redistribution at
Del Mar Dunes and cleaned log piles in Rio
Park.
▪Implemented Phase 2 of the Sea Level
Rise/Coastal Adaptation Strategies
presented to Planning and Forest & Beach Commissions.
▪ Launched a new Sea Level Rise/Adaptation Strategies Community Survey. ▪ Repaired six beach access stairways under two Emergency Coastal Development Permits.
▪ Conducted bird nesting surveys in compliance with the Migratory Bird Treaty Act and the California Fish and Game Code.
Stormwater & Waste Management
▪ Revamped SB 1383 waiver program and CalRecycle procurement records. ▪ Updated restaurant stormwater inspection records.
▪ Submitted the 2024 Stormwater Annual Report to the Regional Water Quality Control Board.
▪ Conducted bi-annual stormwater trainings for Police and Fire Departments. ▪ Supported Monterey Regional Stormwater Management Program as a Training & Contract subcommittee member.
▪ Worked with ReGen to compile the Electronic Annual Report (EAR) to CalRecycle.
Facilities Improvements & Repairs
▪ Constructed three new Public Works offices and one
cubicle at Vista Lobos; remodeled restroom and began
window frame replacements.
▪ Upgraded Sunset Center’s Carpenter Hall heating
system and Yoga Cottage roof tiles.
▪ Replaced commercial roll-up doors, faulty Fire Station door motor, and installed additional panic alarms at
Public Works and libraries.
43 Attachment 1
▪ Upgraded electrical panels (Ocean/Junipero), lighting (Flanders Mansion garage), and 911 public phones citywide.
▪ Completed painting projects at Harrison Memorial Library and Sunset Center; replaced sheetrock at Park Branch Library.
▪ Restored Flanders Mansion front door and repaired the skylight at Forest Hill Park tennis court restroom.
▪ Repaired City Hall sump system, replaced ceiling tiles, and painted the lobby. ▪ Completed Devendorf Park pond UV filtration system and Del Mar beach restroom drainage repairs.
▪ Painted Del Mar restrooms and repaired Piccadilly Park’s artistic fountain. ▪ Repaired and upgraded Public Works rear access gate system. ▪ Performed city-wide window cleaning, gutter cleaning, and ADA/key control upgrades at City Hall and Public Works.
Urbanized Forest, Parks & Landscaping
▪ Removed over 175 dead, dying, or diseased trees and removed over 300 stumps, far exceeding our goals set for Year 1 of our 3-Year ‘Catch-Up Plan’ to address a backlog of tree-related work.
▪ Evaluated and rendered a decision on 300+ permits applications for tree prunings or removals.
▪ Maintained 48 landscaping sites throughout the City by management of an on-call contractor.
▪ Identified over 100 locations with lines attached to tall tree stumps which are being used as utility poles and began the removal of dozens with the aid and coordination of utility companies.
44 Attachment 1
▪ Continued the deliberate, collaborative, and precise development of the Carmel Forest Master Plan alongside feedback from our residents, the Steering Committee, and our on-call ecologist.
▪ Completed beautification projects, including re-landscaping Ocean Avenue medians, and transitioned the Scenic pathway maintenance to City oversight, previously led by Carmel Cares.
▪ Worked closely with our partners FOMTNP and Friends of Carmel Forest to enhance our downtown beauty by planting the ‘right tree, right location’ model, as well as managing the removal of invasive tree species, plants, and mastication surrounding walking trails.
▪ Assumed administrative responsibility of the tree permit process from the Community Planning & Building Department.
▪ Updated and streamlined the tree permit process to merge all applications onto one form, both digitally and hard copies.
Community Engagement & Events
▪ Held the third annual Earth/Arbor Day Celebration.
▪ Installed dozens of new Ribbon Cans and replaced several lids. ▪ Held Workshop for the Carmel Local Coastal Program Sea Level Rise/Adaptation Strategies.
▪ Held ceremony for new Red Eagle sign installation.
▪ Worked with FOMTNP and presented e-bike regulations to the Forest & Beach Commission.
▪ Held multiple Community meetings for the Carmel Forest Management Plan. ▪ Coordinated with TAMC to hold the Regional Vision Zero Action Plan Public Workshop.
2025-2026 PRIORITIES
▪ Procure Compact Track Loader and two EV pickup trucks ▪ Start the Conglomerate Paving Project and Sidewalk Replacement CIP ▪ Design/construction of shoreline infrastructure repairs ▪ Construct the Fourth Avenue outfall
▪ Construct the Junipero bypass drainage project
▪ Design MTNP stream projects 4 & 5
▪ Develop a Copper Policy
▪ Implement beautification projects, notably the re-landscaping of the First Murphy park
▪ Install new split rail fencing at the north end of the North Dunes Habitat Restoration Area
45 Attachment 1
▪ Construct four of the Carmel Beach Coastal Protection and Access Improvements Projects
▪ Continue North Dunes Restoration Improvements and Reporting ▪ Prepare a new Amendment to the Coastal Development Permit for the North Dunes Habitat Restoration Area
▪ Repair retaining walls at Sunset Center
▪ Install insulated windows at Fire station and upgrades to accommodate fire engine ▪ Fire service backflows upgrades for City Hall and both libraries ▪ Conduct Phase II of Sunset Center painting
▪ Replace over a dozen windows at Park Branch Library
▪ Complete Sunset Center Yoga center re-roofing
▪ City Hall exterior shingles replacement and handrail painting ▪ Flanders Mansion window frame/gutter painting
▪ First Murphy House painting, water intrusion, dry rot repairs ▪ Repair of leaks into Public Works garage
▪ Complete Year 2 goals (128 dead & dying tree removals and 220+ stump removals) of our 3-Year ‘Catch-Up Plan’ to address a backlog of tree-related work. 46 Attachment 1
BUDGET SUMMARY AND SERVICE IMPACTS
Public Works Department Total
Account
Number
Account Description FY24-25
Amended
Budget
FY24-25
Estimated
Actual
FY25-26
Proposed
Budget
101-119-00-41001 Salaries $2,641,852 $2,210,445 $2,835,400 101-119-00-41005 Overtime 15,000 10,869 11,000
101-119-00-41101 Retirement 174,564 143,655 175,756
101-119-00-41103 Deferred Compensation 26,523 19,375 16,669 101-119-00-41104 Health Insurance 631,333 453,890 676,760 101-119-00-41106 Medicare 39,190 31,838 41,272
101-119-00-41107 LTD/STD/Life 3,287 2,574 3,989
101-119-00-41108 Worker's Comp 130,340 103,908 152,427
101-119-00-41109 Benefits-MOU Obligations 39,520 34,046 39,520 Salaries & Benefits Subtotal $3,701,609 $3,010,602 $3,952,793 101-119-00-42001 Contract Services $2,416,862 $988,480 $1,439,125 101-119-00-42009 Advertising and Legal Notice 5,000 2,364 4,075 101-119-00-42101 Office Supplies 3,000 1,894 6,000
101-119-00-42102 Publications & Subscriptions 8,000 9,922 19,000 101-119-00-42104 Safety Equipment and Supplies 10,000 11,717 11,000 101-119-00-42105 Materials and Supplies 257,650 222,556 269,475 101-119-00-42106 Small Tools and Equipment 4,095 55 17,500 101-119-00-42107 Gas and Oil 30,000 26,592 38,000
101-119-00-42202 Equipment Maintenance 20,405 2,906 12,000 101-119-00-42203 Vehicle Maintenance 38,000 26,967 39,500 101-119-00-42301 Training & Education 15,000 1,605 14,000 101-119-00-42304 Dues & Memberships 3,180 0 4,060
101-119-00-42403 Printing 2,000 0 0
101-119-00-42408 Permits and Licenses 13,200 17,721 14,500 101-119-00-42409 Rentals 10,000 4,980 10,000
Services & Supplies Subtotal $2,836,392 $1,317,760 $1,898,235 Total $6,538,001 $4,328,362 $5,851,028
ADMINISTRATION
The Administration Division budget includes funding for Contract Services ($19,700), including uniforms and software contracts, training ($14,000), subscriptions ($19,000), and office supplies ($6,000).
47 Attachment 1
PW Administration
Account Number Account Description FY24-25
Amended
Budget
FY24-25
Estimated
Actual
FY25-26
Proposed
Budget
101-119-40-42001 Contract Services $32,200 $15,514 $19,700 101-119-40-42009 Advertising and Legal Notice 5,000 2,364 4,075 101-119-40-42101 Office Supplies 3,000 1,894 6,000
101-119-40-42102 Publications & Subscriptions 8,000 9,922 19,000 101-119-40-42104 Safety Equipment and Supplies 10,000 11,717 11,000 101-119-40-42301 Training & Education 15,000 1,605 14,000 101-119-40-42304 Dues & Memberships 3,180 0 4,060
101-119-40-42403 Printing 2,000 0 0
Services & Supplies Subtotal $78,380 $43,017 $77,835
STREET MAINTENANCE
The Street Maintenance Division budget includes funding for Materials and Supplies ($71,500) for mutt mitts ($30,000), asphalt, sidewalk pavers, and traffic paint, Equipment and Vehicle Maintenance ($39,500), Fuel ($38,000), and Contract Services ($61,300).
PW Street
Account Number Account Description FY24-25
Amended
Budget
FY24-25
Estimated
Actual
FY25-26
Proposed
Budget
101-119-41-42001 Contract Services $66,000 $56,220 $61,300 101-119-41-42105 Materials and Supplies 81,100 84,362 71,500 101-119-41-42106 Small Tools and Equipment 4,095 55 17,500 101-119-41-42107 Gas and Oil 30,000 26,592 38,000
101-119-41-42202 Equipment Maintenance 20,405 2,906 12,000 101-119-41-42203 Vehicle Maintenance 38,000 26,967 39,500 101-119-41-42409 Rentals 10,000 4,980 10,000
Services & Supplies Subtotal $249,600 $202,081 $249,800
FACILITIES MAINTENANCE
The budget for the Facilities Maintenance Division includes funding for Contract Services ($624,585) including janitorial ($289,085), alarm monitoring, and generator services, HVAC, plumbing, roofing, and electrical repairs, and Materials & Supplies ($99,500) for doors, hardware, lighting, filters, plumbing, and first aid supplies. 48 Attachment 1
PW Facilities
Account Number Account Description FY24-25
Amended
Budget
FY24-25
Estimated
Actual
FY25-26
Proposed
Budget
101-119-42-42001 Contract Services $606,762 $492,207 $624,585 101-119-42-42105 Materials and Supplies 94,350 75,132 99,500 Services & Supplies Subtotal $701,112 $567,339 $724,085
ENVIRONMENTAL COMPLIANCE
The Environmental Compliance Division budget includes funding for Contract Services ($248,200), including SB1383 implementation, recycling containers, and waste hauler oversight ($8,200), stormwater quality enforcement and watershed monitoring ($26,000).
Cleaning of storm drains, on-call environmental consultants, and climate change initiatives, and Permits and Licenses ($14,500) for stormwater and Air Resources District permits and MTNP invasive removals and North Dunes habitat monitoring services.
PW Environmental Compliance
Account Number Account Description FY24-25
Amended
Budget
FY24-25
Estimated
Actual
FY25-26
Proposed
Budget
101-119-43-42001 Contract Services $282,700 $63,202 $188,200 101-119-43-42408 Permits and Licenses 13,200 17,721 14,500 Services & Supplies Subtotal $295,900 $80,923 $202,700
49 Attachment 1
PROJECT MANAGEMENT
The City’s Project Managers’ time will be allocated at year end to the CIP projects based upon actual time spent.
PW Project Management
Account Number Account Description FY24-25
Amended
Budget
FY24-25
Estimated
Actual
FY25-26
Proposed
Budget
101-119-44-41001 Salaries $225,515 $162,539 $271,758
101-119-44-41101 Retirement 10,983 7,916 12,874
101-119-44-41103 Deferred Compensation 2,100 1,013 900
101-119-44-41104 Health Insurance 68,599 27,451 60,507
101-119-44-41106 Medicare 3,270 2,307 3,940
101-119-44-41107 LTD/STD/Life 291 145 657
101-119-44-41999 Contra Salaries and Benefits 0 0 -295,000 Salaries & Benefits Subtotal $310,758 $201,371 $55,636
FORESTRY, PARKS AND BEACH
The Forestry, Parks, and Beach Division budget includes funding for Contract Services ($545,3400), including tree contractors for removals, pruning, stump grinding, MTNP tree work, beautification projects, landscape maintenance contract ($183,500), and materials and supplies ($98,475).
PW Forest & Beach
Account Number Account Description FY24-25
Amended
Budget
FY24-25
Estimated
Actual
FY25-26
Proposed
Budget
101-119-45-42001 Contract Services $1,429,200 $361,336 $545,340 101-119-45-42105 Materials and Supplies 82,200 63,062 98,475 Services & Supplies Subtotal $1,511,400 $424,398 $643,815 50 Attachment 1
Type of Expenditure Budget %
Tree Related Services $ 242,500 38%
Landscaping Services 230,500 36%
MTNP 71,840 11%
New trees/plants 41,500 6%
Equipment 13,500 2%
Landscaping & Irrigation Materials 43,975 7%
Total $ 643,815 100%
Tree Related
Services
38%
Landscaping
Services
36%
MTNP
11%
New trees/plants
6%
Equipment
2%
Landscaping & Irrigation Materials
7%
FY25-26 Forestry, Parks & Beach Expenditure Detail
51 Attachment 1
PUBLIC SAFETY
The Director of Public Safety/Police Chief manages the Public Safety Department and three distinct functions:
POLICE DEPARTMENT
The Police Department is responsible for law enforcement and crime prevention within the City. The mission of the Department is to protect and serve, with the primary responsibility of ensuring the rights of citizens and visitors to live in peace and safety. It also oversees the management and operation of the Emergency Operations Center; the Volunteers in Policing Program (VIPs) that assists with daily clerical activities, errands, public outreach and special events and the City Community Emergency Response Team (CERT) of volunteers ready to assist the community during an emergency situation.
FIRE DEPARTMENT
The Fire Department is primarily responsible for saving lives and protecting property through the prevention and control of fires. The Fire Department has operated under a contract with the City of Monterey since 2012. The Public Safety Department manages the contract with the City of Monterey and is responsible for oversight of needed equipment and supplies.
CARMEL FIRE AMBULANCE
Carmel Fire Ambulance provides advanced life
support ambulance service to the residents of
Carmel-by-the-Sea. Ambulance staffing includes
paramedic-firefighters and emergency medical
technician-firefighters to provide front line
medical emergency response and all-hazard
response as a key component of the City’s public
safety services.
2024-2025 INITIATIVES AND ACCOMPLISHMENTS
▪ Vacancies were filled to include, (1) Police Commander, (1) Police Officer, and (3) Dispatchers.
▪ Began developing new contract language for Fire services with the City of Monterey. ▪ A new radio tower was purchased in conjunction with Monterey County and a grant through the Bay Area Urban Areas Security Initiative (UASI). The installation of the tower was completed allowing the police department to communicate with other county agencies on the digital network.
▪ The police department purchased three electric vehicles, including two for patrol use. 52 Attachment 1
▪ Volunteer groups like (VIPS) volunteers in policing and (CERT) Community Emergency Response Team were utilized during a number of emergencies and community events.
▪ Completion for the AB481 legal requirement to inform the public about the police department’s use of Military Equipment.
▪ Implementation of AB413 “Daylighting Bill” to protect pedestrians at curbed crosswalks throughout the village.
▪ Completion for the Flock Camera Ad Hoc Committee resulting in a change in the number, use, and location of Flock Cameras in the village.
2025-2026 PRIORITIES
▪ Continue recruitments to fill additional Police Officer positions and be fully staffed. ▪ Continue work towards the completion of the Police Department Remodel Project. ▪ Resolution of the proposed Ambulance Merger with Monterey Fire. ▪ Update the City Emergency Operations Plan.
▪ Implement a Police Social Media Presence.
▪ Expand the Seniors Helping Seniors program to include an App for seniors needing special care during emergencies.
BUDGET SUMMARY AND SERVICE IMPACTS
POLICE DEPARTMENT
▪ The FY 25-26 Budget reflects a total decrease of $86,000 from the FY 24-25 Budget. ▪ The Department will continue to focus on
patrol and response to public safety needs.
The FY 25-26 Budget reflects a decrease of
$246,000 in services and supplies over the FY 24-
25 Budget. The decrease is primarily the result of
the change in contract service for the Flock camera
system and reduced vehicle repair costs. Training
expenses were increased to add leadership training
for supervisors, required continued education
training for officers, and academy training for new
hires. Contract services include expenses critical
to operations including dispatch, jail booking and
animal services provided by Monterey County;
tasers, body and surveillance cameras and
associated maintenance costs.
53 Attachment 1
Police
Account Number Account Description FY24-25
Amended
Budget
FY24-25
Estimated
Actual
FY25-26
Proposed
Budget
101-116-00-41001 Salaries $706,786 $595,605 $897,295
101-116-00-41002 Salaries -Safety 2,173,856 1,813,760 2,389,538 101-116-00-41005 Overtime 0 0 37,500
101-116-00-41006 Overtime -Safety 395,000 519,579 112,500 101-116-00-41009 Holiday in Lieu 160,018 146,433 116,197 101-116-00-41101 Retirement 56,159 42,909 58,227
101-116-00-41102 Retirement -Safety 364,915 314,180 287,018 101-116-00-41103 Deferred Compensation 176,051 205,953 198,322 101-116-00-41104 Health Insurance 531,906 370,994 636,750 101-116-00-41106 Medicare 47,397 46,592 51,786
101-116-00-41107 LTD/STD/Life 3,117 2,470 3,084
101-116-00-41108 Worker's Comp 188,860 141,590 191,243
101-116-00-41111 Uniform Allowance 23,040 21,090 18,460 Salaries & Benefits Subtotal $4,827,105 $4,221,156 $4,997,920 101-116-00-42001 Contract Services $365,779 $180,924 $250,000 101-116-00-42005 Community Promotions 4,500 1,600 5,300 101-116-00-42101 Office Supplies 8,800 6,004 8,800
101-116-00-42102 Publications & Subscriptions 420 0 420 101-116-00-42104 Safety Equipment and Supplies 114,000 38,956 50,000 101-116-00-42107 Gas and Oil 55,000 31,614 35,000
101-116-00-42201 Building Maintenance 2,000 229 2,000
101-116-00-42202 Equipment Maintenance 81,200 43,955 85,700 101-116-00-42203 Vehicle Maintenance 93,000 75,734 40,000 101-116-00-42301 Training & Education 36,000 53,418 50,000 101-116-00-42304 Dues & Memberships 1,475 1,755 1,400
101-116-00-42403 Printing 6,300 0 6,300
101-116-00-42404 Shipping/Postage/Freight 600 20 600
101-116-00-42405 Telephone and Communications 9,500 783 10,000 101-116-00-42415 Other Expenditures 24,800 30,389 12,000 Services & Supplies Subtotal $803,374 $465,383 $557,520 Total $5,630,479 $4,686,539 $5,555,440
FIRE DEPARTMENT
▪ The FY 25-26 Budget reflects a total decrease of $111,000 from the FY 24-25 Amended Budget.
▪ Contract services include fire services provided by the City of Monterey ($3,253,597). 54 Attachment 1
The FY 25-26 Budget also includes funding for fuel ($22,000) and vehicle maintenance ($40,000) as Carmel is responsible for vehicle repair and replacement under the contract with Monterey.
Fire
Account Number Account Description FY24-25
Amended
Budget
FY24-25
Estimated
Actual
FY25-26
Proposed
Budget
101-117-00-42001 Contract Services $3,382,924 $3,020,982 $3,346,924 101-117-00-42005 Community Promotions 1,000 487 1,000
101-117-00-42103 Medical Supplies 3,000 0 3,000
101-117-00-42104 Safety Equipment and Supplies 13,100 2,402 0 101-117-00-42107 Gas and Oil 19,000 6,260 22,000
101-117-00-42202 Equipment Maintenance 4,450 0 4,500
101-117-00-42203 Vehicle Maintenance 105,000 100,414 40,000 Total $3,528,474 $3,130,544 $3,417,424
CARMEL FIRE AMBULANCE
▪ The FY 25-26 Budget reflects a total increase of $437,000 from the FY 24-25 Amended Budget.
▪ Contract services include Ambulance Services by the City of Monterey ($2,095,410) and ambulance billing ($48,000Other major expenses include medical supplies ($48,000), fuel and vehicle maintenance ($21,000 and $70,000 respectively), safety equipment ($17,500).
55 Attachment 1
Ambulance
Account Number Account Description
FY24-25
Amended
Budget
FY24-25
Estimated
Actual
FY25-26
Proposed
Budget
Salaries & Benefits Subtotal $1,544,270 $1,335,397 $0
101-118-00-42001 Contract Services $195,902 $174,497 $2,179,110 101-118-00-42101 Office Supplies 1,000 0 0
101-118-00-42103 Medical Supplies 48,150 50,338 48,150
101-118-00-42104 Safety Equipment and Supplies 17,500 0 17,500 101-118-00-42107 Gas and Oil 26,000 6,479 21,000
101-118-00-42201 Building Maintenance 10,000 984 5,000
101-118-00-42202 Equipment Maintenance 4,000 994 4,000
101-118-00-42203 Vehicle Maintenance 62,000 41,336 70,000 101-118-00-42301 Training & Education 14,150 1,188 15,000 Services & Supplies Subtotal $378,702 $275,815 $2,359,760 Total $1,922,972 $1,611,212 $2,359,760
56 Attachment 1
DEBT SERVICE
Debt Service includes payments for the 2020 Refunding Lease Revenue Bonds. These payments total $509,100 as shown below.
2020 Refunding Lease Revenue Bonds
On September 10, 2010, City Council approved issuance and sale of certificates to finance improvements and the Sunset Center (the Sunset Theater Project), including the refinancing of the City’s lease payment obligation related to the preliminary financing of the Sunset Center (the 2010 Refunding Lease Revenue Bond). The Certificate of Participation (COP) of approximately $7.6 million included a maturity date of November 1, 2031. On September 3, 2020, the Public Improvement Authority and City Council determined that a refunding of the 2010 Bond was in the City’s best interest to take advantage of historically low interest rates and to achieve cash flow savings in light of the economic impact of the pandemic on the City’s revenues. The 2020 Refunding Lease Revenue Bond of approximately $3.9 million matures on November 1, 2032. The City made its first principal payment in FY 23-24 after two years of interest only payments.
Funding Sources
General Fund revenue is the source of funding for debt service obligations. The General Fund (Fund 101) will transfer $509,100 to Debt Service (Fund 401) in FY 25-26 with approximately 75% of that going to the principal.
Debt Service: Total
Account Number Account Description FY24-25
Amended
Budget
FY24-25
Estimated
Actual
FY25-26
Proposed
Budget
401-411-00-44001 Principal $375,000 $375,000 $380,000
401-411-00-44002 Interest 141,600 141,568 126,600
401-411-00-44003 Administrative Fees 2,500 2,105 2,500
Total $519,100 $518,673 $509,100
FY 24-25 Debt Service by Bond
Bond Principal Interest Fee Total
Sunset Center $380,000 $126,600 $2,500 $509,100
Total $380,000 $126,600 $2,500 $509,100
57 Attachment 1
CAPITAL IMPROVEMENT PLAN (CIP)
58 Attachment 1
CAPITAL IMPROVEMENT PLAN
The FY 25-26 Budget includes $7.9 million for capital projects. This level of capital spending represents 20% of the total citywide budget of $39.7 million and requires the use of $5.0 million of the City’s unassigned fund balance. Sales tax revenue generated by Measure C, the City’s local sales tax, also plays a pivotal role in providing a funding source for the City’s capital needs. The presence of state and county gas and transit taxes also provide a consistent base, albeit partial, for much needed street projects. That said, the five-year capital plan points out that, as vital as these funding sources are, they cannot cover the full scope of identified improvements in the long-term requiring that we attend to the highest needs and deferring others until funding becomes available.
Capital outlay funds several types of projects as depicted below in the “FY 25-26 CIP Funding by Category” chart. Streets account for 39% of capital expense, with a proposed budget of $4.38 million, largely funded by revenues the City receives specifically for street maintenance and other transportation-related projects. The FY 25-26 Budget recognizes the importance of facility investments including $1.265 million for deferred facility maintenance items that address Sunset Center elevator, painting and Yoga Center reroof, Forest Theater Stage, Fire station upgrades, City Hall exterior shingles, and Sunset Center Cottage Window Repairs.
Streets
20%
Drainage
5%
Facilities
16%
Forest/Park/Beach
31%
Environmental
1%
Library
1%
Planning
5%
Contingency
6%
IT
1%
Fleet
14%
FY 25-26 CIP Funding by Category
59 Attachment 1
Drainage projects reach $1,075,000 or 25%% of the CIP budget, and include Reconstruction of the Fourth Ave Outfall and MTNP Streams 5-6 Drainage project. Included in this fiscal year’s budget is a $500,000 CIP Contingency to provide funds when needed to award construction contracts that may have outdated cost estimates, such as for carry-over projects, the scope of essential work has increased, and/or when construction bids are competitive, but higher than available funds. Capital outlay includes $1.2 million for the projects listed in the Vehicle and Equipment Fund table below.
VEHICLE AND EQUIPMENT FUND
Vehicle and Equipment Fund
Account Number Account Description
FY25-26
Proposed
Budget
503-513-00-43004 Ambulance Heart Monitor $35,000
503-513-00-43005 Ambulance 450,000
503-513-00-43005 PW Compact Track Loader 125,000
503-513-00-43005 PW EV Trucks (2) 150,000
503-513-00-43005 Police Patrol Vehicles (2) 150,000
503-513-00-43005 Forestry Utility Bucket Truck 180,000
503-513-00-43006 Police Radios Year 5 of 6 30,000
503-513-00-43007 IT Network Refresh 40,000
503-513-00-43007 Wireless Access Point 50,000
Vehicle and Equipment Total $1,210,000
Funding for vehicles and equipment prioritizes public safety response capabilities, including enhanced communications and the purchase of new vehicles. A focus on environmentally friendly vehicles is evident in this year’s spending plan.
Ambulance Hear Monitor ($35,000)
This project involves the purchase of new monitors to improve emergency medical care by enabling real-time cardiac assessment during transport, ensuring faster, more effective treatment for patients with heart-related conditions.
Ambulance ($450,000)
A contract to build the new ambulance and furnish equipment for $410,000 was executed last fiscal year. Delivery is anticipated in late 2025. Funding of $400,000 from the Vehicle and Equipment Fund and a $50,000 donation will be programmed in FY 25-26.
Public Works Compact Track Loader ($125,000)
The purchase of a compact track loader will significantly improve the City’s beach maintenance operations. Currently, the lack of a dedicated equipment ramp for beach access makes transporting machinery onto the beach difficult and inefficient. This purchase will enhance our ability to perform essential tasks such as sand redistribution and erosion 60 Attachment 1
control on the Del Mar and Volleyball Dunes. These areas are crucial for both recreational use and ecological health, and proactive maintenance is vital for their preservation. The compact track loader will provide the necessary mobility and power to navigate the sandy terrain effectively. We are requesting the inclusion of a flail mower and a street broom as attachments to further broaden the machine's utility. The flail mower will assist in vegetation management throughout the City, and the street broom will be used for debris removal and maintaining cleanliness in the Del Mar parking lot. This proactive approach will save time and resources by preventing more significant issues from developing.
Public Works EV Trucks (2) ($150,000)
The Public Works Department plans to replace a 2000 Dodge Dakota and a 2002 Ford Ranger due to their age, condition, and wear by acquiring two Electric Vehicle (EV) trucks.
These EV trucks will be used across all divisions of the Public Works Department. Given the department's heavy reliance on its fleet of trucks for routine maintenance, repairs, equipment transportation, and emergency response, the transition to EV trucks will reduce the City’s carbon footprint and lower fuel and maintenance expenses. Additionally, acquiring these EV trucks aligns with the State's mandate for increasing EV adoption in municipal fleets. By proactively transitioning to electric vehicles, the City demonstrates its commitment to environmental sustainability and compliance with state regulations. This initiative will position the City of Carmel as a leader in adopting clean energy solutions and contribute to a healthier environment for our community.
Police Patrol Vehicles (2) ($150,000)
The Police Department would replace two Dodge Durango vehicles with two Ford Explorer patrol vehicles due to mechanical issues with their engines.
Forestry Utility Bucket Truck ($180,000)
The Forestry Division would replace the old high-ranger bucket truck with a specialized utility bucket vehicle equipped with a hydraulic lifting system and an attached bucket or platform. This truck would be used on a daily basis by the Forestry Maintenance crew for inspecting tree canopies and tree trimming and removal.
Police Radios Lease (Years 5 of 6) ($30,000)
Twenty-two (22) radios were purchased in 2021 with a payment schedule of $30,000 per year for six years, with funding from the Vehicle and Equipment Fund.
IT Network Refresh ($40,000)
Funding will be used to upgrade and modernize the City’s existing network infrastructure to enhance performance, reliability, and security. The City would replace outdated hardware, implement faster and more scalable solutions, and seamless connectivity for all departments and services. The project will focus on improving cybersecurity measures.
Wireless Access Point ($50,000)
Funding will be used to purchase and install new Wireless Access Points (WAPs) throughout city facilities to enhance wireless connectivity and ensure reliable, high-speed internet access for employees and city operations. The project will upgrade outdated or 61 Attachment 1
insufficient wireless infrastructure, providing better coverage, faster speeds, and improved security across public buildings and departments. These upgrades will also support the growing demand for mobile devices.
CAPITAL PROJECTS FUND
The Capital Projects budget for expenditures includes 32 new projects for a total of $6.7 million. In addition, $3.5 million of projects started but not finished in FY 2024-2025 will be carried-over as a part of reserved fund balance.
Category
Description
FY25-26
Proposed
Budget
New Capital Projects
Streets Resurfacing Parking Lots (CL,SC) 300,000
Streets Road Segment Project (10 road segments) 300,000 Streets Scenic/Santa Lucia ADA Parking 20,000
Streets Sidewalks 500,000
Streets
Sunset Center Retaining Walls
Construction 450,000
Drainage Junipero Bypass Pipe - Design 175,000
Drainage MTNP Stream Projects 5 - 6 Design 175,000
Facilities ADA Upgrade, Year 8 20,000
Facilities City Hall Exterior Shingles 70,000
Facilities Design Repairs - CH, FS 150,000
Facilities Fire Backflows to Code (3 bldgs) 200,000
Facilities Fire Station Upgrades 175,000
Facilities Forest Theater Stage 60,000
Facilities Park Branch Library Window Repairs 50,000
Facilities Picadilly Restroom Expansion Design 70,000
Facilities Police / Public Works Building Project 50,000 Facilities Sunset Center Elevator Power Unit 120,000
Facilities Sunset Center Painting, Phase 2 250,000
Facilities Sunset Center Yoga Center Reroof 50,000
Forest/Park/Beach
Rio and Junipero Ave Median
Enhancements 100,000
Forest/Park/Beach Reconstruction of the Fourth Ave Outfall 900,000 Forest/Park/Beach Shoreline Repairs Stairs Construction 300,000 Forest/Park/Beach Forest Plan Implementation Year 2 739,000 Forest/Park/Beach Devendorf Park Improvements 50,000
Forest/Park/Beach Sand Ramp at Eighth Avenue 275,000
Forest/Park/Beach Scenic Pathway Enhancements 100,000
Library Library Master Plan, Administration 50,000
Library UV film replacement HML windows 25,000
Planning Planning ODDS element 200,000
62 Attachment 1
Planning CEQA MTNP CFMP 70,000
Project Management Staff Time 295,000
Contingency CIP Contingency 500,000
Total New CIP $6,789,000
Carryover Capital Projects
Streets Conglomerate Paving Project - Carryover 2,810,000 Forest/Park/Beach Shoreline Infrastructure Repair - Carryover 400,000 Environmental
Coastal Engineering Study, Phase 2 -
Carryover 250,000
Total Carryover Capital Projects $3,460,000
STREETS
Conglomerate Paving Project - Carryover ($2,810,000)
Annual Paving Project, FY 23-24: In April 2023, Council adopted a list of streets to be included in the FY 23-24 Annual Paving Project. The City’s annual Maintenance of Effort is approximately $700,000 for FY 25-26 leverages external funds via TAMC from Measure X, Gas Tax, SB 1 - the Road Maintenance and Rehabilitation Account (RMRHA), and the Regional Surface Transportation Program (RSTIP). This project includes design and construction of asphalt pavement overlays of five roadway segments, including Upper Ocean Avenue and Santa Lucia Avenue, between Dolores Street and Rio Road, removal of failed pavement sections and providing a slurry seal treatment on 21 road segments predominately in residential neighborhoods, and replacing broken sidewalks with permeable pavers along five road segments in the downtown area.
All of these improvements, which have a construction cost estimate of $1.68 million, will be included in the Conglomerate Paving Project for FY 2025-26. However, several of the most expensive roadways may be included in the construction bid documents as additive bids and awarded if sufficient funding is available upon receiving the bid proposals.
Annual Paving Project, FY 21-22: Construction of this Project is substantially complete.
This project included paving overlays along Junipero Street, between Third and Fourth Avenues, at the Junipero-Camino del Monte intersection, and along Santa Fe Street between Fifth and Sixth and Avenues. Also, the City’s first application of a micro-surfacing pavement treatment was completed along Junipero Street, between Fourth and Ocean Avenues, and along San Carlos Street, between Eighth and Thirteenth Avenues. Four large downtown sidewalk repairs were also completed. No budget remains from this project.
Due to higher than anticipated construction bids received for this Annual Paving Project for FY 21-22, four additive bid items were not awarded for the construction contract. The bid items were for paving overlays along San Antonio Avenue, between Fourth and Ocean Avenues, San Antonio, between Ocean and Eighth Avenues, Monte Verde Street, between 63 Attachment 1
Fourth and Ocean Avenues, and along Torres Street, from Third to Fifth Avenues. All four of these bid additives, which have a construction cost estimate of $835,000, will be merged into the Conglomerate Paving Project FY 25-26.
Concrete Street Repairs, FY 22-23: The design of this
project is complete and “shovel ready” for
construction; however, the construction cost estimate
is nearly $3 million. Therefore, the majority of this
project will be shelved until future capital funding
becomes available. The project includes repairs and
resurfacing of concrete intersections at Ocean-San
Antonio, San Carlos-Fifth, San Carlos- Sixth, and
ADA ramps and bulb out improvements at the
Junipero-Seventh intersection. Also, structural
repairs and resurfacing are included along Ocean
Avenue, between Monte Verde and San Antonio, as
well as the three intermittent side streets, up to the
sidewalks, on both sides of Ocean Avenue. In addition,
the project includes repairs and resurfacing of San
Carlos Street between Fifth and Sixth Avenues. Only
one portion of this project will be included in the Conglomerate Paving Project – Reconstruction of the San Antonio-Ocean Avenue intersection – which has a cost estimate of $293,000.
Resurfacing Parking Lots (CL,SC) ($300,000)
The allocated funding will be used for the required asphalt pavement maintenance at the Children's Library and the Sunset Center Main Lot. This work will address necessary repairs and improvements to maintain the safety and functionality of the parking lots. The funding will cover resurfacing, patching, and other asphalt-related maintenance tasks.
Road Segment Project (10 road segments) ($300,000)
Funding will be used to address pavement maintenance needs on ten streets that were identified through the City’s use of StreetSaver, a pavement management software that helps prioritize repairs based on condition, usage, and cost-effectiveness. These specific streets were selected due to their current condition ratings and maintenance needs, as outlined in the pavement management analysis. The list of streets and associated work was previously discussed with the City Council at the March 24, 2025 meeting.
Scenic/Santa Lucia ADA Parking ($20,000)
Funding will be used for the installation of an ADA-compliant parking stall through pavement restriping and associated improvements. Additionally, an ADA-compliant access ramp will be installed to provide accessible entry to the scenic pathway. These improvements will enhance accessibility and ensure compliance with current ADA standards, allowing more users to safely enjoy the pathway. 64 Attachment 1
Sidewalks ($500,000)
Funding will be used for sidewalk repairs in areas that pose trip hazards, ensuring safer pedestrian access throughout the city. This will involve identifying and repairing damaged or uneven sections of sidewalk to prevent accidents and improve walkability. The repairs will focus on high-traffic areas and locations with the most significant safety concerns.
Sunset Center Retaining Walls Construction ($450,000)
Funding will be used for the construction of one structural retaining wall in the Sunset Center North Lot located on the north side adjacent to Eighth Avenue, which poses a hazard to the public. This wall has already been designed in the current year's CIP and requires funding for construction.
DRAINAGE
Junipero Bypass Pipe – Design ($175,000)
The design improvements aim to address capacity issues along Junipero and Ocean, including the installation of a parallel 30-inch pipe on Junipero Street between Fifth and Seventh Avenues and a parallel 24-inch pipe near Fifth Avenue and Torres Street. These upgrades will enhance flow and reduce hydraulic grade line (HGL) peaks. Coordination with the Mission Street Bypass and Fifth Avenue projects may also be considered during the design phase.
MTNP Stream Projects 4-5 Design ($175,000)
The next stage of the MTNP project addresses the fourth and fifth of eight stream restoration and drainage improvements recommended in the 2019 MTNP Stream Stability Study. The first three projects were completed in late 2024. Any future work now requires updated environmental permits from the U.S. Army Corps of Engineers, the California Department of Fish and Wildlife Service, and the State Regional Water Quality Control Board.
The proposed improvements aim to eliminate stream incision threatening the Serra Trail, restore a more natural stream channel alignment, and reroute a section of the Doolittle Trail that is degrading the stream bank, eroding vegetation, and creating a safety hazard.
Site #4 work includes the design, permitting and implementation of:
▪ Demolition of the existing concrete ford and installation of a naturalized stream channel
▪ Construction of a new pedestrian bridge
▪ Establishment of a new trail through the redwood grove ▪ Habitat restoration and monitoring Site #5 work includes the design, permitting, and implementation of:
65 Attachment 1
▪ Realignment of Mission Creek just below the confluence, through the midpoint of the valley between the Willow Trail and Serra Trail.
In addition, staff is exploring a grant opportunity through the California Wildlife Conservation Board, which offers up to $1 million for design and up to $3 million for project implementation.
FACILITIES
ADA Upgrade, Year 8 ($20,000)
A $20,000 budget has been allocated for ADA
upgrades within the city, aimed at improving
accessibility for individuals with disabilities. The
funds will be used to address areas in need of
compliance, enhancing public spaces and facilities
to ensure they meet ADA standards. Specific
upgrade areas will be determined based on the
city's infrastructure needs.
City Hall Exterior Shingles ($70,000)
Funding will be used for the repair and restoration
of wood shingles on the exterior walls of City Hall,
as they need maintenance and some may require
replacement. This work will address areas of wear and deterioration, helping to preserve the building’s exterior. The project will ensure the structure remains protected and visually appealing.
Design Repairs – City Hall, Fire Station, Vista Lobos ($150,000) Funding to be used for repairs to City facilities as recommended in the Facilities Conditions Assessment prepared by Bureau Veritas. These repairs are necessary to address maintenance issues, ensuring the safety, functionality, and efficiency of city buildings. This funding will support ongoing efforts by supplementing the work of the City’s Facilities Maintenance Department, specifically for repairs that exceed their current capacity or technical capabilities. The improvements will help prevent further deterioration and reduce long-term repair costs
Fire Backflows to Code (3 bldgs) ($200,000)
Funding to be used for fire backflow improvements at three locations: City Hall, HML Library, and Park Branch Library, to bring them into compliance with current code requirements. These upgrades are essential to ensure the safety and effectiveness of the fire suppression systems at each facility. The improvements will address existing deficiencies and help meet regulatory standards.
Fire Station Upgrades ($175,000)
66 Attachment 1
Funding to be used for upgrades to the Fire Station to accommodate a newly purchased fire truck. These upgrades will include modifications to the station’s bays, ensuring they are large enough to house the new equipment safely and efficiently.
Forest Theater Stage ($60,000)
Funding will be used for the replacement of the wooden stage deck and its incidental support system, which are currently showing significant signs of deterioration. The existing structure has experienced wear over time and needs replacement to ensure safety, structural integrity, and continued usability for performances and events.
Park Branch Library Window Repairs ($50,000)
Funding will be used for window repairs at Park Branch Library, which includes replacing 18 deteriorated double-pane windows. These windows have lost their insulation, resulting in a persistent steamy appearance, and the wood trim is also deteriorating. Once replaced, the windows will be restored, and the trim will undergo necessary painting.
Picadilly Restroom Expansion Design ($70,000)
Funding will be allocated for the design of an
expansion to the Picadilly restroom, one of the
City’s most heavily used facilities. During peak
summer months, the line for this single-toilet
restroom often extends to the sidewalk,
highlighting the need for increased capacity.
Police/Public Works Building Project ($50,000)
Funding allocated for immediate safety repairs
while exploratory actions are taken on the future of the Police and Public Works building.
Sunset Center Elevator Power Unit ($120,000)
Funding will be used for the replacement of the Sunset Center's power unit, including the hydraulic valves. The existing system has reached the end of its useful life and requires an upgrade to ensure continued reliable operation.
Sunset Center Painting, Phase 2 ($250,000)
Funding will be used for Phase 2 of painting the Sunset Center. This phase will complete the painting of areas not addressed in the previously completed work, enhancing the facility's appearance and protecting surfaces from wear and damage. As a cost-saving measure, staff will incorporate design and project management efforts completed during Phase 1 to streamline the process and reduce overall expenses.
Sunset Center Yoga Center Reroof ($50,000)
Funding will be used for the roof replacement at the Sunset Center Yoga Center, which is over 30 years old and requires frequent maintenance. The new roof will address ongoing issues and provide long-term durability. This replacement will ensure the facility remains safe and protected from weather-related damage.
67 Attachment 1
FOREST, PARKS AND BEACH
Shoreline Infrastructure Repair ($400,000)
The first phase of the Coastal Engineering Study included a Shoreline Infrastructure Condition Assessment. The Assessment concluded that 2-4 existing seawalls need repairs, with the highest priority repair being the Fourth Avenue Outfall. Eleven coastal access stairs were assessed with 9 stairs needing repairs, and two stairs are currently closed due to structural damage resulting from winter storms. In addition, of the 6 rock revetments, 4 are high priority in need of repair; one in
its entirety and others in some portions.
The total cost for engineering design,
environmental permits, and construction
for all of these repairs will likely exceed
$2 million over the next few years, as
outlined in the 5-Year CIP.
This Shoreline Infrastructure Repair
Project will initiate the engineering and
design of the highest priority repairs, as
well as repairing the remaining damaged
beach access stairs with similar materials
as a “maintenance project”. This approach
is expected to streamline the regulatory approval process. This initial project will also allow the City to better estimate costs and phasing to complete future shoreline infrastructure repairs. A Request for Proposal has been prepared to retain a consultant with expertise in environmental permitting, coastal and structural engineering, and cost estimating.
Project funding for FY 23-24 was initially set at $250,000. An additional $100,000 previously budgeted for the Coastal Engineering Study, Phase 2 was reallocated to the Shoreline Infrastructure Project, and a FEMA grant of approximately $50,000 was received for beach stair repairs. All funds will be carried over into FY 25-26.
Rio and Junipero Ave Median Enhancements ($100,000)
Funding will be used to design and implement enhancements to the existing medians along Rio Road and Junipero Avenue. Improvements would include new landscaping and irrigation upgrades.
Reconstruction of the Fourth Ave Outfall ($900,000)
Funding will be used for construction work to replace the outfall structure at 4th Avenue, which is showing significant structural deficiencies and is in a high level of disrepair. The existing structure is at risk of further deterioration, impacting the surrounding area.
Design work for the replacement is being initiated in the current fiscal year, with construction aimed at restoring the outfall’s functionality, preventing further erosion, and ensuring the long-term stability of the area.
68 Attachment 1
Shoreline Repairs Stairs Construction ($300,000)
Funding will be used for construction work to reconstruct stairs damaged by winter storms and the effects of sea level rise. The stairs located north of 10th Avenue and on Twelfth Avenue have sustained deterioration and damage from these storms. Design work for the reconstruction will begin in the current fiscal year, with the goal of restoring safe access while addressing future environmental conditions. The anticipated cost is based on replacing the stairs with wooden structures, consistent with the existing design and environmental considerations. The design phase of the previously approved Shoreline Infrastructure Project (Task 1), which was authorized by City Council on March 24, 2025, is currently underway. Upon completion of this assessment, staff will return to Council with a potential recommendation to reconstruct the existing stairs using new concrete structures, with preliminary engineer’s estimates placing the cost at approximately $400,000 per stair.
Forest Plan Implementations Year 2 ($739,000)
Budget reflects dead/unsafe tree removals and the backlog of stumps, all part of a 3-year tree maintenance catch-up plan, which began last fiscal year and is expected to culminate in the Fiscal Year 2026-27. In Year 1, the City removed over 175 dead, dying, or diseased trees and removed over 300 stumps, far exceeding our goals.
Devendorf Park Improvements ($50,000)
Allocated funding will be used to support a series of improvements within Devendorf Park, including enhancements to the War Memorials to preserve their condition and appearance, restoration and upgrades to the existing fishpond to improve its functionality and aesthetic, and the installation of a new guard rail/fence along Sixth Avenue to enhance public safety and define the area. These efforts aim to preserve historic features, improve site aesthetics, and ensure a safer and more welcoming environment for visitors.
Sand Ramp at Eighth Avenue ($275,000)
Funding will be used for the design and reconstruction of the access sand ramp near Eighth Avenue, which has been repeatedly damaged by winter storms and the impacts of sea level rise. The ramp no longer exists in its current location due to extensive damage. Design work for the new ramp will begin in the current fiscal year, with reconstruction aimed at ensuring safe and reliable access while addressing future environmental challenges.
Scenic Pathway Enhancements ($100,000)
Funding would be used to resurface and stabilize the existing decomposed granite (DG) pathway along Scenic Pathway, as well as the installation of new signage. 69 Attachment 1
ENVIRONMENTAL
Coastal Engineering Study, Phase II ($250,000)
This study was identified in the City Council-adopted
Climate Adaptation Plan as a critical document for sea
level rise resilience planning to ensure the City has the tools necessary to make decisions related to the longterm maintenance of coastal resources. All five primary tasks in Phase I are complete, including the
Shoreline Infrastructure Condition Evaluation,
Shoreline and Beach Exposure Modeling, Coastal
Hazard and Sea Level Rise Vulnerability Assessment,
and Policy Review. Key findings were presented to the Forest and Beach Commission, Climate Committee, and City Council in 2023 and 2024.
Phase II is a carry-over project that is now underway, and will focus on hazards policy review and revisions, public outreach and engagement, socio-economic analysis, adaptation strategies, pathway development, and development of the City’s Local Coastal Program Amendment. This project is fully funded under a recently-executed, $500,000 Local Coastal Program Grant Agreement awarded by the California Coastal Commission.
LIBRARIES
Library Master Plan – Administration ($50,000)
Funding will be used to oversee and administer the interior renovations of the Harrison Memorial Library. This project will be a private-public partnership between the Carmel Public Library Foundation and the City of Carmel-by-the-Sea. The library requires essential upgrades to meet modern standards, including improvements to plumbing, electrical systems, and ADA compliance.
70 Attachment 1
UV Film Replacement HML windows ($25,000)
Replace UV film for the Harrison Memorial Library windows. Life span is 10 years and was last applied in 2011.
PLANNING
Create Objective Development Design Standards (ODDS) ($200,000) ODDS created to provide objective (ministerial) design and development regulations for affordable housing projects in compliance with State Law.
CEQA MTNP CFMP ($70,000)
Environmental compliance work for projects to be completed in Mission Trails Nature Preserve and for adoption of the Carmel Forest Management Plan.
PROJECT MANAGEMENT
Staff Time ($295,000)
The City’s Project Managers’ budgeted time will be allocated at year end to the CIP projects based upon actual time spent. Outsourced project management time is already budgeted in the appropriate project.
CIP PLANNING
CIP Contingency Fund ($500,000)
A $500,000 Contingency Fund will be budgeted to cover any shortfalls to award construction contracts or to close out projects.
71 Attachment 1
KEY PROJECTS AND FUNDING NEEDS FOR YEARS 2 THROUGH 5 OF THE
CAPITAL IMPROVEMENT PLAN (CIP)
The 5-year CIP has been updated and is available on the City’s website. Although only the first year (FY25-26) is funded as part of this Adopted Budget, the remaining four years serve as an advance planning tool to identify anticipated future projects.
The 5-year CIP is a “snapshot” in time of anticipated needs for future infrastructure revitalization funding in coming years. As a dynamic planning document, the CIP for years 2 through 5 is subject to change as updated information becomes available. A multi-year plan also accommodates scheduling larger projects into multiple years to allow more projects to be underway concurrently, and to allocate construction funding only when those funds are needed.
It should be noted that the needs for infrastructure renewal and facility repairs far exceed the anticipated revenue over the subsequent four years as well.
The following are key projects and preliminary budget estimates, by asset category, for years 2 through 5 of the CIP:
18,450,000
15,130,000
12,730,000
5,980,000
0K
2,000K
4,000K
6,000K
8,000K
10,000K
12,000K
14,000K
16,000K
18,000K
20,000K
FY 2026/27 FY 2027/28 FY 2028/29 FY 2028/29
CIP for Year 2 - Year 5
Drainage Streets Facilities Forestry, Parks & Beach V&E Environmental IT Contingency 72 Attachment 1
Drainage: Includes highest priority drainage repairs and upsizing for 20-year storm events as identified in the 2023 Storm Drain Master Plan Update, bottleneck reconfigurations, and CDS reconstruction. Projects include: Junipero Bypass ($1.75M), 4th Ave CDS ($525K), and Drainage Repairs ($1.05M) = $3.33M.
Streets: Annual paving Maintenance of Effort (MOE) and Transportation Agency for Monterey County (TAMC) match funding are budgeted for each fiscal year for Streets Projects ($2.45M City plus $1.6M external funds). In addition, the City also has the following Street projects planned: Bicycle Master Plan ($70K), Sidewalks ($500K), Lincoln 4th trestle bridge ($150K), Pavement Survey Update ($30K), and Resurfacing Parking Lots ($300K)= $4.2M City plus $2.1M external funds via TAMC.
Facilities: As a placeholder, a total allocation of $35M is included to cover final design and Police Building Construction (whether a new station or renovation of the existing building) plus launching the design of the Public Works building renovations. This major project will obviously require a dedicated funding source once a project concept is approved, and these numbers will be adjusted as more information and scheduling becomes available.
Additional facility renovation projects include: ADA Updates ($65K), Sunset Center Retaining Walls ($900K), Flanders Structural Shoring ($250K), City Hall FCA: Fire, Doors, Lighting ($400K), Park Restroom Repairs ($150K), Facility Assessment - Flanders, Restrooms ($85K), Devendorf Bathrooms ($50K), Sunset Center Portico ($475K), Fire Station FCA: Roof, Windows, Alarm ($500K), Sunset Center Railings ($225K) = $28.1M.
Forestry Parks, and Beach: Design and construction of the remaining five (5) Mission Trail Nature Preserve (MTNP) stream stability projects ($1.25M), and construction of the MTNP Doolittle Bridge ($125K) = $1.38M.
Fleet and Equipment: Replace aging Police, Fire, and Public Works vehicles with Electric Vehicles where possible. Replace broken and outdated heavy equipment, including Streets Department 2 Pickup EVs ($150K) , Forestry Department water truck ($120K), Police Department speed radar trailer ($25K) and animal
control vehicle ($75K), Police Department admin EV
vehicles ($75K), patrol EV vehicles ($225K), and
parking EV vehicle ($75K). This category includes full
funding for the Police radios lease ($95K) = $1M plus
$90K 3CE rebates.
Environmental and Climate Change: Shoreline
infrastructure repairs ($1.65M), Sunset Center EV
Parking ($1M), Climate Action Plan projects ($150K)
and energy upgrade initiatives ($150K) = $2.95M
73 Attachment 1
IT: Equipment replacements ($240K), Police records management system ($200K), and GIS applications expansion ($30K) = $0.31M.
Library: It is difficult to estimate costs for the library as major renovations proposed under the Library Master Plan are largely subject to donor funding.
Contingency: A contingency fund will be budgeted annually to cover any shortfalls to awarded construction contracts or to close out projects = $1M Years 2 Through 5 Needs Summary
The total estimated investment of City funds identified for years 2 through 5 is $41.56M.
This amount exceeds anticipated CIP fund revenues over those four years plus any ending fund balance that may be available in those future years. However, without proper investment, the condition of the City's infrastructure will decline and worsen, eventually requiring more costly repairs. Therefore, additional revenue sources should be considered.
HISTORICAL CAPITAL IMPROVEMENT PLAN (CIP) LOOKBACK
Fiscal Year
Projects Total Spent
2017 - 2018 2 465,637
2018 - 2019 5 37,375
2019 - 2020 11 366,708
2020 - 2021 0 0
2021 - 2022 8 217,941
2022 - 2023 20 1,096,079
2023 - 2024 22 2,760,886
2024 - 2025 22 4,870,404
74 Attachment 1
OTHER FUNDS
75 Attachment 1
OTHER FUNDS OVERVIEW
The City uses what is known as a “fund” accounting structure, which house and track resources (i.e.: money) that are limited in their use by law or governing agency. The major governmental funds are the General Fund, Measure D and Capital Projects.
DISCRETIONARY FUNDS
The first set of funds listed below are “discretionary”, meaning there are no legal restrictions on their use and can be used at the discretion of Council for services and projects.
General Fund (Fund 101)
Most of the City’s revenues and the expenditure budgets for City services and daily governmental operations are housed within the General Fund (Fund 101) and this is where the majority of the City’s financial activity occurs. The major revenue sources associated with the General Fund include property tax, the City’s share of the statewide sales and use tax, charges for services, franchise fees, business tax, and intergovernmental revenue.
These revenues are considered to be general in nature. Throughout this budget document, the General Fund is also referred to as the “Operating Budget” and City financial policy recommends maintaining a 15% Reserve of the total amount, which the City will continue to do in FY 24-25.
Hostelry Fund (102)
This fund is used to house the Transient Occupancy Tax (TOT) which is collected and is intended to fund the portion of the municipal budget covering community and cultural and recreation activities including, but not limited to Sunset Center and the Forest Theater, parks, public facilities and municipal structures, and parking lots; acquisition and improvement of parks, recreation land and other municipal purposes as determined from time to time by the City Council; provided, that all such uses shall be in accordance with the General Plan of the City and General Fund for usual and current expenses. City financial policy recommends a reserve of 10% of TOT revenues, which the City will continue to do in FY 24-25.
Measure C Sales Tax (Fund 206)
Carmel voters approved a temporary (10 year) 1% increase in the transactions and use tax in 2012 known as Measure D. On March 3, 2020, voters approved Measure C, which increases the tax to 1.5% for 20 years. Measure C may be used for debt service, capital 76 Attachment 1
projects and general City services. Fund 206 is used to house revenue from these tax sources.
RESTRICTED FUNDS
The next set of funds are “restricted”, meaning there are requirements prescribed by the local, state or federal governmental agencies regarding how these funds may be used.
Gas Tax (Fund 201)
This fund is used to house revenues collected in accordance with California Streets and Highway Code.
Transportation Safety (Fund 202)
Measure X, a 30-year 3/8 of one-percent transactions and use tax, was passed by the voters in November 2016 to fund transportation safety and mobility projects in Monterey County.
This fund houses dollars for expenditures for eligible transportation safety projects.
COPS Grant
This fund houses dollars for expenditures for the Department of Justice Community Oriented Policing Services (COPS) grant for public safety. This fund transfers into the General Fund for the Police Department budget.
Parking in Lieu (Fund 204)
This fund is used to house dollars for activities associated with parking in-lieu fees as prescribed by Carmel Municipal Code Section 17.38.040.
Asset Seizure (Fund 205)
This fund houses dollars for expenditures related to asset seizures.
CAPITAL PROJECTS FUND
Capital Projects (Fund 301)
This fund houses resources utilized, committed, assigned or restricted for capital projects.
DEBT SERVICE FUND
Debt Service (Fund 401)
This fund houses dollars related to the repayment of the Certificate of Participation, Pension Obligation Bond and capital lease obligations.
77 Attachment 1
INTERNAL SERVICE FUNDS
Workers Compensation (Fund 501)
This fund houses monies meant for workers’ compensation insurance provided to departments on a cost reimbursement basis.
Other Post-Employment Benefits (OPEB) Liability Reserve Fund This fund houses dollars for other post-employment benefits.
Vehicle and Equipment Replacement Fund
This fund is to set aside to house financial resources for future purchases of replacement equipment essential to the operations of the City.
AGENCY FUNDS
Refundable Deposits
This fund houses monies received that are unearned at the time of acquisition and required to be returned by the City unless they are earned.
78 Attachment 1
PROJECTED FUND BALANCES
79 Attachment 1
Audited Fund Estimated Fund
Fund Description
Balance June
2024
Revenue &
(Expenses)
Transfers In
& (Out)
Balance June
2025
Unspendible Prepaid Items $28,693 $0 $0 $28,693
Restricted funds
101 General Fund 115 Trust 3,124,794 1,000,000 - 4,124,794 201 Gas Tax 168,923 169,695 (338,618) - 202 Transportation Safety - 238,421 (238,421) - 203 COPS 40,465 161,330 (201,795) - 204 Parking in Lieu 758,830 - - 758,830 205 Asset Seizure 5,616 - - 5,616
206 Local Measure Sales Tax 2,152,539 6,484,814 (8,637,353) - 401 Debt Service 34,807 (518,673) 518,673 34,807 501 Worker's Comp 259,716 (12,401) (247,315) - 502 OPEB Reserve - - - - 503 Veh & Eq Replacement 462,820 (383,408) 383,408 462,820 LIB Library 1,453,651 - - 1,453,651
Committed funds
102 Hostelry Reserve 754,323 9,295,016 (10,049,339) - Assigned funds 101 General Fund Reserve 4,505,124 11,148,898 15,654,022 301 Capital Projects 11,096,555 (4,870,404) (2,332,916) 3,893,235 Unassigned funds
101 General Fund 11,893,970 (6,735,486) 8,994,779 14,153,262 $36,740,826 $3,828,904 $0 $40,569,730
Audited Fund Estimated Fund
Fund Description
Balance June
2025
Revenue &
(Expenses)
Transfers In
& (Out)
Balance June
2026
Unspendible Prepaid Items $28,693 $0 $0 $28,693
Restricted funds - 101 General Fund 115 Trust 4,124,794 1,000,000 - 5,124,794 201 Gas Tax - 170,993 (170,993) - 202 Transportation Safety - 244,137 (244,137) - 203 COPS - 161,792 (161,792) - 204 Parking in Lieu 758,830 - - 758,830 205 Asset Seizure 5,616 - - 5,616
206 Local Measure Sales Tax 6,595,056 - (6,595,056) - 401 Debt Service 34,807 (509,100) 509,100 34,807 501 Worker's Comp (127,000) - 127,000 - 502 OPEB Reserve - - - - 503 Veh & Eq Replacement 462,820 (1,210,000) 1,210,000 462,820 LIB Library 1,453,651 - - 1,453,651
Committed funds
102 Hostelry Reserve 9,109,116 - (9,109,116) - Assigned funds 101 General Fund Reserve 15,654,022 343,878 15,997,900
301 Capital Projects 3,893,235 (6,789,000) 6,789,000 3,893,235 Unassigned funds
101 General Fund 14,153,262 (12,725,713) 6,302,116 7,729,665 $40,569,730 ($5,079,719) $0 $35,490,011
Projected Fund Balances June 30, 2025
Projected Fund Balances June 30, 2026
80 Attachment 1
FINANCIAL POLICIES
81 Attachment 1
BUDGET POLICIES AND GUIDELINES
The budget process for the City of Carmel‐by‐the‐Sea involves the citizens, City Council, and staff. Each person plays a critical role in the development of the budget for the upcoming year. The annual budget and operating plan balance the public service demands of the community with the fiscal resources of the City. It is intended to achieve the goals and objectives established by the City Council.
The goal of the City Administrator is to present a balanced budget to the City Council for review and adoption. A balanced budget is a budget in which revenue sources meet or exceed expected revenue use. Available funding sources shall be at least equal to recommended appropriations. As a general rule, the year‐end Undesignated General Fund Balance should only be used for one-time costs, not to fund ongoing operations such as fulltime employees.
As set forth in the Carmel Municipal Code, prior to the beginning of each fiscal year the City Council shall adopt a budget for expenditures and anticipated revenues. On or before February 15th of each year, the City Administrator will present to the City Council a proposed budget schedule. The City Administrator prepares and submits to the City Council a proposed operating and capital budget for the forthcoming fiscal year. The City Council shall adopt the budget by July 1st.
The City Administrator shall have the right to approve the transfer of appropriations within a departmental budget; however, no additional positions shall be created without the authorization of the City Council. All transfers of appropriations between departments or in regards to capital items or projects shall be approved by the City Council. The City Administrator shall be charged with the responsibility of controlling the expenditures for all departments in accordance with the approved budget. A report on current year revenues, expenditures and fund balances shall be maintained.
The accounts of the City are organized on the basis of funds. A fund is an independent fiscal and accounting entity with a self‐balanced set of accounts. The minimum number of funds is maintained consistent with legal and managerial requirements. Annually appropriated budgets are legally adopted on a budgetary basis for the governmental fund types (General Fund, Special Revenue Fund, Debt Service Fund, and Capital Projects Fund) and are controlled on a fund and departmental level. These funds are used to account for most of the City’s general government activities. Governmental fund types use the flow of current financial resources measurement focus and the modified‐accrual basis of accounting and budgeting. Expenditures are recognized as encumbrances when a commitment is made. Unencumbered appropriations lapse at year‐end. 82 Attachment 1
CAPITAL BUDGET POLICY
The City develops an annual five‐year plan for capital improvements; it includes project design, development, implementation, and operating and maintenance costs. Each project in the 5-year Capital Improvement Plan (CIP) shows the estimated capital and on‐going maintenance costs, known and potential funding sources and a design/development schedule. A capital improvement project is typically a permanent structural change to a property or asset to prolong its life, increase its value, or enhance its capabilities. As used in the CIP, projects include land acquisition, buildings and facilities construction, asset upgrades or large-scale maintenance work and the planning needed to facilitate plans and implementation for infrastructure (for example, the Housing Element), including the cost of project management. These projects do not have a cost threshold. A capital outlay (fixed asset) purchase is any single item or piece of equipment that costs more than $50,000 and has an expected useful life exceeding one year. The development of the CIP is coordinated with the development of the operating budget. The CIP is a planning document; the City Council appropriates funding for capital projects in the annual operating budget.
Annual operating budgets should provide adequate funds for maintenance of the City’s buildings and maintenance and replacement of the City’s capital equipment. The City will make all capital improvements in accordance with an adopted and funded capital improvement program. Prior to ratification of the capital budget for the forthcoming year by the City Council, the Planning Commission shall review the capital improvement plan and shall advise the City Council as to its recommendations regarding the proposed capital projects conformity with the City’s General Plan in accordance with the Government Code.
Capital expenditures shall be effectively planned and controlled.
Guidelines:
1. The level of capital improvement expenditures, excluding road maintenance program expenditures and lease payments, is established at a minimum of ten percent (10%) of total revenues.
2. Funding for the road maintenance program should improve the pavement condition index.
3. The City shall maintain a Five‐Year Capital Improvement Program (CIP), which shall be updated at least annually as part of the budget review process.
4. The City shall annually establish a phasing calendar for capital improvement expenditures.
5. At least ten percent (10%) of the unrestricted funds designated for capital project expenditures shall be set aside for unanticipated expenditures.
6. The City shall conduct periodic reviews of property and facilities to determine the appropriate use and disposition of said property and facilities.
7. The City shall consider the ongoing impact of operations and maintenance expenses before undertaking any capital improvement expenditure. 83 Attachment 1
8. The City shall maintain a capital reserve policy as described in the Capital Project Policy.
9. Public participation in the Capital Improvement Program is a priority concern for the City.
10. All projects included in the Capital Improvement Plan shall be consistent with the City’s General Plan.
OPERATING BUDGET POLICY
Operating revenues shall exceed operating expenditures.
Guidelines:
1. Total Expenditures, excluding CIP, shall not exceed 90% of budgeted Revenue.
2. A balanced budget is a budget in which total funding sources meet or exceed uses.
3. Ongoing expenses shall not be funded with one‐time revenues.
4. The City shall establish salary adjustments in conjunction with the budget process.
5. The City will seek to comply with suggested criteria of the Government Finance Officer’s Association in producing a budget document that meets the Distinguished Budget Presentation criteria.
FINANCIAL POLICIES AND GUIDELINES
The City of Carmel‐by‐the‐Sea has strong financial policies, based on City Council direction, which guide staff toward carrying out sound fiscal planning and continued management of fiscal integrity. The financial policies are divided into five categories:
Capital Project Policy, Operating Management, Fund Balance Policy, Debt Policies, and Investment Policies. The City has financial policies that are adopted by the City Council with review every two years during the budget development process. The financial policies help ensure that the City maintains a healthy financial foundation into the future.
The goal of these policies is to promote:
An extended financial planning horizon to increase awareness of future potential challenges and opportunities;
Setting aside reserves for contingencies, replacement of capital equipment, and other similar needs;
Maintaining the effective buying power of fees and charges and increasing cost recovery where directed to do so;
84 Attachment 1
Accountability for meeting standards for financial management and efficiency in providing services;
Planning for the capital needs of the City;
Maintaining manageable levels of debt while furthering quality bond ratings; and, Communication to residents and customers on how the community goals are being addressed.
CAPITAL PROJECT POLICY
Capital expenditures shall be effectively planned and controlled. Capital projects that have not been completed by the fiscal year-end will be carried over into the subsequent fiscal year. Fund balance equal to the remaining balance of the uncompleted projects will be reserved.
OPERATING MANAGEMENT POLICY
Operating revenues shall exceed operating expenditures.
Guidelines:
1. The City shall establish internal service funds for the repair, operation, and replacement of rolling stock and data processing equipment.
2. The City shall review the relationship between fees/charges and the cost of providing services at least every three years.
3. The City’s fees and charges for services shall be adjusted annually, based upon the San Francisco‐Oakland Consumer Price Index.
FUND BALANCE POLICY
The Fund Balance Policy is designed to develop standards for setting reserve levels for various, significant City funds. Adequate fund balance and reserve levels are a necessary component of the City’s overall financial management strategy and a key factor in external agencies’ measurement of the City’s financial strength. The City shall maintain reserves at a prudent level and shall use reserves appropriately with a focus on contributing to the reserves in good times and drawing on the reserves in times of difficult budget periods to maintain a consistent level of service and quality operations. Use of reserves is meant to supplement the annual budget.
Guidelines:
1. General Fund reserves shall be maintained at no less than fifty percent (50%) of annual projected operating expenditures.
2. The City shall maintain prudent reserves for operating liabilities and debt service.
85 Attachment 1
3. A Vehicle Replacement reserve will be maintained sufficient to replace vehicles and heavy equipment at the end of their useful lives, with the target being 10% of the total City fleet replacement value.
4. Technology equipment replacement reserves will be maintained sufficient to repair covered equipment and for replacement at the end of its useful life.
5. The City will maintain a long‐term budget stability reserve consisting of any Unassigned General Fund Balance. When available, the year‐end General Fund operating surplus will be dedicated to the long‐term budget stability reserve.
6. Net proceeds from the sale of City owned property will be dedicated to the general capital reserve. Funds in the general capital reserve will be allocated through the budget process for capital projects.
7. Reserves shall be used only for established purposes.
8. Depleted reserves shall be restored as soon as possible.
9. The City shall maintain reserves required by law, ordinance and/or bond covenants.
DEBT POLICY
The City considers the use of debt financing for one‐time capital improvements that benefit the residents of Carmel‐by‐the‐Sea when the term of the financing is no longer than the project life, and when specific resources are found to be sufficient to provide for the debt.
Use of long‐term debt is limited to capital projects or special projects or obligations that cannot be financed from current revenues. The City has traditionally kept annual debt service payments to less than 5% of the budget.
Use of Long‐Term Debt Policy
The City recognizes that it may need to enter into long‐term financial obligations to meet the demands of providing a high-quality level of government services to our community.
The following long‐term debt policy sets the considerations for issuing debt and provides guidance in the timing and structuring of long‐term debt commitments by the City.
General Practices:
1. The City will strive to maintain good relations with credit rating agencies, investors of the City’s long‐term financial obligations and those in the financial community that participate in the City’s financing and demonstrate City officials are following a prescribed financial plan. The City also will strive to maintain and, if possible, improve its current AA+ bond rating in order to minimize borrowing costs and preserve access to credit. The City will follow a policy of full disclosure by communicating with bond rating agencies to inform them of the City's financial condition.
2. Bond issue proposals are to be accompanied by an analysis defining how the new issue, combined with current debt, impacts the City’s debt capacity and 86 Attachment 1
conformance with City debt policies. Such analysis shall include identification of the funding source, an assessment of the ability to repay the obligation, the impact on the current budget, commitments to future budgets, maintenance and operational impact of the facility or asset and the impact on the City’s credit rating, if any.
3. City Council must review such analysis, including existing debt level, ability to pay debt service, impact on City services, and make a finding that use of debt is appropriate.
4. Debt service costs (COP, Lease Purchase Agreements and other contractual debt that are backed by General Fund Operating Revenues) are not to exceed 25% of the City’s General Fund operating revenues.
5. The City recognizes that it is of the utmost importance that elected and appointed City officials, and all others associated with the issuance of City debt, not only avoid the reality of a conflict of interest, but the appearance thereof as well. City officials must conduct themselves in a fashion consistent with the best interests of the City and taxpayers.
6. Bonds will be sold on a competitive basis unless it is in the best interest of the City to conduct a negotiated sale. Competitive sales will be the preferred method.
Negotiated sales may occur when selling bonds for a defeasance of existing debt, for current or advanced refunding of debt, or for other appropriate reasons.
The City will consider the issuance of long‐term obligations under the following conditions:
1. The City will use debt financing for one‐time capital improvement projects and specific non-recurring equipment purchases or refunding of existing liabilities, and only under the following circumstances:
a. When the project is included in the City’s adopted five‐year capital improvement program (CIP) and is in conformance with the City’s adopted General Plan.
b. When the project is not included in the City’s adopted five‐year capital improvement program (CIP), but the project is an emerging critical need whose timing was not anticipated in the five‐year capital improvement program, or it is a project mandated by State or Federal requirements. c. When the project’s useful life, or the projected service life of the equipment, will be equal to or exceed the term of the financing. d. When there are designated General Fund revenues sufficient to service the debt, whether from project revenues, other specified and/or reserved resources, or infrastructure cost‐sharing revenues.
e. Debt financing (other than tax and revenue anticipation notes) is not considered appropriate for any recurring purpose such as current operating and maintenance expenditures.
87 Attachment 1
2. The City will follow all State and Federal regulations and requirements related to bonds and debt financing instruments regarding bond provisions, issuance, taxation and disclosure.
3. Costs incurred by the City, such as bond counsel and financial advisor fees, printing, underwriter discount, and project design and construction costs, will be charged to the bond issue to the extent allowable by law.
4. The City will monitor compliance with bond covenants and adhere to federal arbitrage and disclosure regulations.
5. The City shall continually review outstanding obligations for opportunities to achieve debt service savings through refunding and shall pursue refinancing when economically feasible and advantageous.
Debt Limit
The City will keep outstanding debt within the limits prescribed by State of California statutes and at levels consistent with credit objectives. California Government Code provides that “a city may incur indebtedness for any municipal improvement requiring an expenditure greater than the amount allowed for it by the annual tax levy” (43602). A “city shall not incur an indebtedness for public improvements which exceeds in the aggregate 15 percent of the assessed value of all real and personal property of the city. Within the meaning of this section "indebtedness" means bonded indebtedness of the city payable from the proceeds of taxes levied upon taxable property in the city” (43605). The limit is relative to the principal amount of bonds sold and delivered (43606). The City of Carmel‐by‐the‐Sea, Policy No C94‐01 establishes “the City’s debt shall not exceed predetermined levels.” The guideline in that policy is that “the City’s debt service level shall not exceed eight and one‐ fourth percent (8.25%) of total expenditures.
INVESTMENT POLICY
The City will maintain adequate cash availability and yield on invested idle funds while insuring that invested monies are protected. Municipal monies not required for immediate expenditure will be invested. The Carmel Municipal Code requires the City Administrator to prepare investment policies and guidelines for adoption by the City Council. The adopted investment policy follows.
Policy
In accordance with the Municipal Code of the City of Carmel‐by‐the‐Sea and under authority granted by the City Council, the City Treasurer is responsible for investing the unexpended cash in the City Treasury.
The investment of the City of Carmel‐by‐the‐Sea funds is directed to the goals of safety, liquidity and yield, in that order. The authority governing investments for municipal government is set forth in the California Government Code, Sections 53601 through 53659. 88 Attachment 1
The primary objective of the investment policy of the City of Carmel‐by‐the‐Sea is SAFETY OF PRINCIPAL. Investments shall be placed in those securities as outlined by type and maturity sector in this document. Effective cash flow management and resulting cash investment practices are recognized as essential to good fiscal management and control.
The City’s portfolio shall be designed and managed in a manner responsive to the public trust and consistent with state and local law. Portfolio management requires continual analysis, and as a result the balance between the various investments and maturities may change in order to give the City of Carmel‐by‐the‐Sea the optimum combination of necessary liquidity and optimal yield based on cash flow projections.
Scope
The investment policy applies to all financial assets of the City of Carmel‐by‐the‐Sea as accounted for in the Annual Financial Report. Policy statements outlined in this document focus on the City of Carmel‐by‐the‐Sea’s pooled funds, but will also apply to all funds under the City Treasurer’s control unless specifically exempted by statute or ordinance.
Prudence
The standard to be used by investment officials shall be that of a “prudent person” and shall be applied in the context of managing all aspects of the overall portfolio. Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, direction and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.
It is the City’s full intent, at the time of purchase, to hold all investments until maturity to insure the return of all invested principal dollars.
Safety
Safety of principal is the foremost objective of the City. Each investment transaction shall seek to ensure that capital losses are avoided, whether from securities default, broker‐ dealer default, or from erosion of the market value.
Liquidity
Historical cash flow trends are compared to current cash flow requirements on an ongoing basis in an effort to ensure that the City’s investment portfolio will remain sufficiently liquid to enable the City to meet all reasonably anticipated operating requirements.
Yield
The investment portfolio should be designed to attain a market average rate of return through budgetary and economic cycles, consistent with the risk limitations, prudent investment principles and cash flow characteristics identified within the financial statements.
89 Attachment 1
Performance Evaluation
Investment performance is continually monitored and evaluated by the City Treasurer.
Investment performance statistics and activity reports are generated on a monthly basis for presentation to the City Administrator and City Council.
Delegation of Authority
For short‐term investments, the Administrative Services Director has authority to make transfers to and from the City’s Local Agency Investment Funds (LAIF) account in order to maximize interest earned and meet cash flow requirements. The transfers are made to and from the City’s general checking account to the LAIF account, with a minimum balance maintained in the general checking account to meet daily cash requirements.
The City Treasurer is responsible for investment of all unexpended City funds as per California Government Code section 41000 et seq. The City Treasurer makes long‐term investments after review and approval by the Administrative Services Director and the City Administrator.
Ethics and Conflict of Interest
Officers and employees involved in the investment process shall refrain from personal business activity that conflicts with the proper execution of the investment program, or impairs their ability to make impartial investment decisions. Additionally, the City Treasurer and the members of the investment committee are required to annually file applicable financial disclosures as required by the Fair Political Practices Commission (FPPC).
Safekeeping of Securities
To protect against fraud, embezzlement, or losses caused by a collapse of an individual securities dealer, all securities owned by the City shall be held in safekeeping by a third party bank trust department, acting as an agent of the City under the terms of a custody agreement or PSA agreement (repurchase agreement collateral). The third party bank trust department must have safe keeping as a professional business line with expertise in this particular service area. All trades executed by a dealer will settle Delivery vs. Payment (DVP) through the City's safekeeping agent. Securities held in custody for the City shall be independently audited on an annual basis to verify investment holdings. All exceptions to this safekeeping policy must be approved by the City Treasurer in written form and included in quarterly reporting to the City Council.
Internal Control
Separation of functions between the City Treasurer's Office and the Administrative Services Department would be an ideal situation. Time and necessity, however, dictate a different approach. Due to the lack of personnel dedicated to the investment function alone, 90 Attachment 1
a proper balance must be maintained between Treasury activities and Administrative Services Department functions. The City Treasurer will make the appropriate arrangements to buy and sell securities that are deemed permissible by the Laws of the State of California as time permits. The Administrative Services Director and/or City Administrator will have the power as granted under the section titled Delegation of Authority in the absence of the City Treasurer. The City Administrator will have the authority to enter into agreements on securities so long as written policies set by the City Treasurer and State Legislature are followed.
The investment portfolio and all related transactions are reviewed and balanced to appropriate general ledger accounts by the Administrative Services Director on a monthly basis. An independent analysis by an external auditor shall be conducted annually to review internal control, account activity, and compliance with government policies and procedures.
Reporting
The City Treasurer shall review and render monthly reports to the City Administrator and the City Council, which shall include the face amount of the cash investment, the classification of the investment, the name of the institution or entity, the rate of interest, the maturity date, and the current value and accrued interest to date due for all securities.
Qualified Broker/Dealers
The City shall transact business only with banks and broker/dealers that are properly licensed and in good standing. The Administrative Services Director and the City Treasurer shall investigate dealers who wish to do business with the City to determine if they are adequately capitalized and if they market securities appropriate to the City’s needs.
The City Treasurer shall annually send a copy of the current investment policy to all broker/dealers approved to do business with the City. Confirmation of receipt of the City’s policy by the broker/dealer shall be considered evidence that the broker/dealer understands the City’s investment policies and intends to sell the City only appropriate investments authorized by this investment policy.
Collateral Requirements
Collateral is required for investments in certificates of deposit. In order to reduce market risk, the collateral level will be at least 110% of market value of principal and accrued interest.
In order to conform with the provisions of the Federal Bankruptcy Code that provide for liquidation of securities held as collateral, the only securities acceptable as collateral shall be certificates of deposit, commercial paper, eligible banker’s acceptances, medium term notes or securities that are the direct obligations of, or are fully guaranteed as to principal and interest by, the United States or any agency of the United States. 91 Attachment 1
Authorized Investments
Investment of City funds is governed by the California Government Code Sections 53600 et seq. Within the context of the limitations, the following investments are authorized as further limited herein:
1) United States Treasury Bills, Bonds, and Notes or those for which the full faith and credit of the United States are pledged for payment of principal and interest. There is no percentage limitation of the portfolio that can be invested in this category, although a five‐year maturity limitation is applicable but current market conditions and interest rate projections may call for shorter terms.
2) Local Agency Investment Fund (LAIF), which is a State of California managed investment pool, may be used up to the maximum permitted by the California State Law. LAIF is a demand account, so no maturity limitation is required.
Investments detailed in items 3) are further restricted to percentage of the cost value of the portfolio in any one‐issuer name to a maximum percentage of 15%. The total value invested in any one issuer shall not exceed 5% of the issuer’s net worth. Again, a five‐year maximum maturity is applicable unless further restricted by current policy. Market conditions should be evaluated as an important consideration and may indicate a shorter maturity. 3) Negotiable certificates of deposit issued by nationally or state chartered bank or state or federal savings institutions. Negotiable certificates of deposit shall be rated in a category of “A” or its equivalent or better by two Nationally Recognized Statistical Rating Organizations. Purchases of negotiable certificates of deposit may not exceed 30% of the total portfolio.
A maturity limitation of up to five years is applicable after considered evaluation of the financial markets.
Ineligible investments are those that are not described herein, including, but not limited to, common stocks and long term (over five years maturity) notes, bonds, and time deposits, unless specifically allowed both by state law and City Council approval. It is noted that special circumstances may arise where these methods of investment may become necessary.
When this becomes necessary, the City Council will be asked to take the appropriate action to ratify the means of investment necessary, provided that it is allowable by California Code.
Legislative Changes
Any State of California legislative actions that further restrict allowable maturities, investment type, or percentage allocations will supersede any of the material presented herein. In this case, the applicable law will become part and parcel of this investment policy.
92 Attachment 1
Interest Earnings
All moneys earned and collected from investments authorized in this policy shall be allocated monthly to the General Fund and various special funds of the City that legally require interest proration or when City Council action dictates such proration. This distribution will be based on the cash balance in the fund as a percentage of the entire pooled portfolio.
Policy Review
The City of Carmel‐by‐the‐Sea’s investment policy shall be approved by resolution of the City Council. This investment policy shall be reviewed at least annually to ensure its consistency with the overall objectives of preservation of principal, liquidity and yield, and its relevance to current law and financial and economic trends. Any amendments to the policy, other than State and Federal laws that automatically supersede the relevant sections shall be forwarded to the City Council for approval by resolution. 93 Attachment 1
Fiscal Year 2025-2026 Budget Workshop
Questions and Answers
1. At a Council meeting earlier this year - we talked about exposing specific "operational expense budget" items more clearly. These items are dominantly in the Public Works area.
Some of these look to be exposed on Slide #4 in the presentation. But we don't currently see what $'s are estimated in these operational items and if this is an increase or decrease from prior budgets/actuals. – For example Tree related work/$'s - I see on page 50 of the Budget book - more of the details...but not with it compared to this year's budget/actual estimate) Is this possible to represent these more clearly?
The one-time, non-operations projects are listed as separate line-item projects in the CIP budget list and are no longer included with the budgeted expenditure totals for operations.
2. On slide #11, the "Fund Balance for Capital Projects" of over 5 million. I assume again, that these dollars are the estimated $'s that were in last years budget - but were not spent - due to project delays or that the larger projects behind these $'s are multi year projects - so are not expected to be needed in this fiscal year.
The $5M reported is a net negative fund balance, or a utilization of previous fund balance. In a for-profit company, it would be called "Net Operating Loss". The negative fund balance is labeled "Use of Fund Balance for Capital Projects" to reflect the fact that the City is dipping into fund balance in order to fund the proposed $7M of Capital Projects.
3. Continuing on this prior question - are the (beyond the nonemergency/quick fix) dollars in last/this years' budget for the Police Building project (due to delayed decision making) now included in the $5 million amount?
The proposed FY 2025 - 2026 budget includes a $50,000 line item for the Police Building planning. As a new project for the Police and Public Works building is identified and the scope defined, it will be brought to the City Council directly for approval, along with consideration for funding.
Attachment 2
4. Why don't you cut the financial assistance to Visit Carmel, See Monterey, and the CBTS Chamber of Commerce by 50 percent? That would save $220,000! The City Council has historically supported operations and organizations that contribute to the economic development of the community.
Expenditures in this portion of the budget are considered to be investments that will yield a return of increased property, sales and transient occupancy taxes in the future.
As line items in the budget, the City Council can control how much is contributed to these agencies in the coming fiscal year. While the amounts expended to most agencies are entirely at the discretion of the City Council, the exception is the Sunset Center. Currently, the City is under contract to pay $750,000 per year for the operation of the Center until the year 2032.
5. Is there a less expensive option for completing an audit (master plan) for your IT function? $108,000 seems a bit high.
The City will delay its IT Strategic Plan preparation, instead focusing in the coming year on conducting an external audit of its primary IT cyberdefense systems.
6. Is the forecast on the economy really that bad? Why don't you increase all of the three major revenue pillars by 500 basis points (5%)? How much additional revenue would that reap?
As the Federal Reserve has had many occasions to note, the forecast for the economy is uncertain. The local economy has shown flexibility in the face of changing tourist dynamics but has also experienced significant negative impacts in the last recession. If, on the other hand, the economy was to "heat up" by 500 basis points or 5% growth in each of the three major revenue sources, it would add $1.2 million over the proposed budgeted revenue. The City Council conducts a mid-year budget review around January each year. This check-in will allow for the revenue projections to be reviewed again.
7. Please tell me the new positions proposed by your Department Heads, the cost of each, and why you chose not to include them in the draft budget. (C Rerig, email 5/7/25, 8:07) City Administration cut multiple department asks for new positions. Below are those positions that were not included in the budget. These positions were created without the oversight of management, HR and City Council, and will need to go through that process.
Dept. New Positions Proposed Budgeted Cost
IT Systems Network Analyst 160,939
PW Assistant Public Works Director 258,310
Library/CA Administrative Analyst 164,572
Attachment 2
8. Please list all budget requests (including budget estimate) from Department Heads that you removed in order to balance the draft budget.
The table below summarizes the changes that have occurred to the budget in order to bring it before the Council today. The budget starts based on plans made by Department Heads for the coming year. The City’s Management Team then comes together to blend those plans into the Recommended Budget. Feedback is then obtained, and a revised budget is presented for analysis at the Budget Workshop. See the timeline and highlight of changes below.
Attachment 2
9. Please review the amount of funds actually spent on capital expenditures the last seven (7) years in the draft budget to ensure they are correct. And please consider adding the $1MM for the tree catch-up program in the Fiscal Year 2024/25 completed capital expenditures as you are proposing to add the same in Fiscal Year 2025/26.
While the table of historic CIP expenditures below is updated for estimated expenditures through the end of the FY24-25 year, those current year numbers are still in-process. CIP expenditures also include donations, but it is important to note that not all donations are fully allocated to CIP and have historically been split against operations depending on the donations themselves.
10. Why is the Sunset Center operating grant of $750,000 included under marketing and economic development? Is there another logical place for it? The business plan for the Sunset Center was to form a premier performing and cultural arts center that would benefit not only the residents but also the business of the City through increased tourism. For this reason, the expenditures for Sunset Center are considered to be an investment in Economic Development. It is important to note that the plan for the Sunset Center also envisioned their development of their own funding sources.
Overall, the City is not paying for Marketing and that description has been removed from the presentation and budget book.
11. It would be helpful if we had the salaries listed alongside each department with all the individual positions listed as a matter of openness and transparency.
See Table A – Positions and Salaries on page 12.
Attachment 2
12. What is the Police line item called “Holiday in Lieu”? Because the police department runs 24/7, police staff do not get holidays off.
The way the City compensates them for the lost time off is to give them an additional amount of compensation equivalent to the time they did not get to take. Essentially, we pay them the holiday in lieu of taking the time off.
13. CIP projects should be listed to include the total cost of the entire project, not just the “design” or “construction” portions of the project, so there is better understanding of how much overall its going to cost.
Public Works is in the process of estimating the total cost to bring each project to completion, in addition to the current year CIP costs. Should the current year CIP be approved, those subsequent costs will be forecast in detail and brought back to the City Council in subsequent years for approval so that the projects can progress.
14. Where does the City get its industry forecasts?
The City meets regularly with HDL Companies to study trends in sales tax, and assess how those trends inform not only sales tax collections, but also how those trends impact its other major revenue pillars of property and transient occupancy taxes. The City looks to information obtained from VisitCarmel, based on its hotel owner-members, and correlates that with its own information obtained directly from hoteliers and retailers and through its Planning operations. The City also works with State of California data and local realtors to understand the local housing market and its trends.
Together these information sources help the City to generate a picture of what the coming year might look like so that a forecast of revenues can be made.
15. How much are we projecting to be left over of the unassigned fund balance at the end of FY 24-25? FY25-26? How much does the City have in the bank for the future? Please see page 80 of the Proposed Budget Book. Based on the beginning audited fund balances, forecast operating results for the Fiscal Year 2024- 2025 and the budget for 2025-2026, the City projects an unallocated fund balance of $7,729,665 as of June 30, 2026. Unallocated fund balances are those funds that are not restricted or designated for any purposes and are therefore available for use as the Council decides. Going forward, the City Council’s new policy limits operating costs to be no more than 90% of revenues. This would contribute another 10% of revenues (an estimated $3.4M annually) to that unallocated balance. Together the $7.7M starting balance and the $3.4M annually are what is forecast to be available to address the backlog of deferred maintenance and other CIP projects.
Attachment 2
16. Is the four months of unbudgeted vacant positions like a mini hiring freeze? In calculating salary expense for the 2025 - 2026 budget, the City has made an assumption that positions which are vacant will not be filled for four months. This assumption recognizes the fact that most positions take time for recruiting and for new hires to begin work. Four months represents an assumption about the average time to fill vacant positions and allows the City to prioritize its hiring, resulting in some positions being hired right away and others being hired late in the fiscal year.
17. What is the catalyst behind the Public Works ask for replacement vehicles for the 2000 Dodge Dakota and the 2002 Ford Ranger? Are they breaking down to the point where the City is spending a lot of money to repair, or because the vehicles are old and wanting to move towards electric vehicles?
The status of the two pickup trucks slated for replacement is as follows:
- Unit 20 is a 2007 Ford Ranger. 35,118 miles, It has a bad transmission, no reverse, bent frame, damaged rear bumper and tailgate. It was involved in a minor accident and it is not cost effective to make further repairs. - Unit 2 is a 2000 Dodge Dakota with 110,899 miles. It is 25 years old and is on our vehicle replacement schedule to be replaced this year. It runs "ok" but is not reliable. See pictures.
18. The ribbon cans are rusting. Can the City pursue other trash can options? Other designs are currently being considered and tested. This project has been removed from the CIP list while that testing is being completed.
Attachment 2
19. City Council approved a financial policy yesterday that states operating costs are limited to 90% of the current year revenue, meaning the other 10% could go to Capital Projects. The City is at 92% with the Recommended Budget. Taking into consideration the Ambulance contract, how does this change?
After considering adopted, recommended and suggested changes to the budget presented on May 6, operating expenditures currently represent 91% of budgeted revenues. See Question 8 table showing the changes made to the budget through the budgeting process. In order to meet the 90% policy goal, additional revenues must be obtained and/or expenditures must be eliminated. Per the Council's request, the City has developed a list of options for additional changes that can be made to the budget in order to reach that goal of 90%. Please see Table 2 in Appendix A of the staff report.
In future years, the City will continue to have a conversation around balancing the services and ordinary operations of the City against the policy goal of budgeting no more than 90% for operating expenditures.
20. It looks like we are losing the local history librarian. Can you provide a little narrative explaining the position changes in the Recommended Budget? Per the classification and comparable study authorized by City Council in 2022 and approved in November of 2024, the position descriptions and job titles were updated. As a part of that study, the expertise previously listed as 'History Librarian' is now reported under 'Supervising Librarian'.
21. The City’s new reserve policy of 50% differs from other municipalities. If we were to reduce the reserve to 40%, it would give the City a few extra million to spend.
The City's new reserve policy is similar to other small, tourist-dependent cities but is more than other local cities currently set aside. It represents six months of operating costs. A reduction of the reserve requirement to 40% increases the FY25-26 ending Unallocated fund balance by $3.2M, thereby increasing the amount of funds available for CIP projects.
22. The City should consider a grant writer.
The City will evaluate options for hiring a grant writer or training in-house personnel on grant writing, and will bring back those opportunities to the City Council as they are identified.
23. Does CalPERS have a cap by which they are limited in raising our base contribution annually?
CalPERS calculates the annual required contribution based on a sliding multi-year average which serves to smooth out volatility and give cities advanced notice of future increases. A single-year investment gain or loss decreases or increases the required UAL contribution amount Attachment 2
incrementally for each of the next five years, not just one, due to the 5-year ramp in the amortization policy. However, the contribution requirements beyond the first year are also impacted by investment returns beyond the first year.
24. Can the City provide an organizational chart or the number of people that are in each department? (Maria Ruse?, CC Mtg 5/6/25)
Please see page 18 of the budget for an organizational chart and pages 16 – 17 for the number of employees. Most employees are crossed-trained, supporting multiple functions. For example, they are not working on just “Streets” or just “Facilities”. Therefore the FTE count is not limited to the structure of the boxes in the Org Chart.
25. There is some reference we made yesterday modifying the policy. We talked about eliminating the hostelry fund and it is still referenced in the budget. It was eliminated and crossed off from the policy, so in order to be consistent, I would like to tie the budget to the policy.
With the May 5 approval from Council, the budget book has been updated for the new policies. In addition, see the budget book for an analysis of how the new policies are applied to the FY 2025-2026 budget.
26. Is the City implementing the 90/10 operating policy with the FY25-26 Recommended Budget? If the City is short of the 90/10 policy, is the City going to make that up? The two new budgetary guidelines apply to the FY 2025-2026 budget. Those budget guidelines stipulate that the budget for operating expenditures not exceed 90% of budgeted revenue and that budget for CIP expenditures equal at least 10% of budgeted revenue. See the staff report for an analysis of the application of those policy guidelines to the new budget.
27. With more community meetings and projects, there are more pressures on staff. The City should add another administrative analyst for City Hall to manage these meetings and additional workload.
While more staff would allow the City to take on more projects and proposals, the word of the day is efficiencies. If the City is going to meet its guideline that 10% of its current revenues be available for CIP and thus no more than 90% of its current revenues be utilized for operations, operating expenditures must be held firm at current or lower levels.
28. Code Compliance FTE was reduced from two down to one and a half. I would like to see that budgeted and staffed fully.
This is not an actual reduction from previous staffing levels. Instead the titles and FTE-count are being adjusted to reflect the staffing plan that is currently in place and operating with one of the code compliance officers Attachment 2
50% assigned to planning permit technician, which represents the actual overlap of code compliance and Planning. This code compliance officer is still actively pursuing compliance cases.
29. The City needs to budget an IT audit.
See Question #5 above.
30. The size of the marketing budget is worrisome. Maybe we should structure it differently with less money in that function. (Baron, CC Mtg 5/6/25) As reference in Question #10 above, the City does not engage in Marketing so that description has been removed from the budget book.
The City does invest in Economic Development. Regarding the amount of expenditures for Economic Development, see question #4 above.
31. The City needs to identify additional sources of revenue, such as parking management.
At the City's current levels of operation and revenue collections, forecasts show that it will be exceedingly difficult to maintain current levels of service in the face of slowing revenue growth. While the City will continue to work on improving operating efficiencies, identifying alternate revenue sources (and protecting current revenue sources) are critical to the City being able to continue its current level of services, let alone enhancing services.
In addition, the amount of revenues and unrestricted balances available to fund CIP projects will be rapidly depleted at the current rate of expenditure and future revenue collections from existing sources are unlikely to be able to fund the list of desired CIP projects in addition to the significant amounts of deferred maintenance and infrastructure repairs. Identification of new revenue sources is complex, as no easy answer can be listed here and implemented next year. Implementing new revenue sources is long-term project that the Council will need to consider.
32. How much of the different categories are spent on capital expenditures versus recurring revenues? How much of the $39 million is CapEx money? Is it all in Public Works? Citywide? Is the Project Manager’s salary in the operating or Capital line? Some of the Capital expenditures need to be on the backs of some employees. Maybe a diagram to take a look at this breakout? Should we be budgeting their time in CIP? Attachment 2
In the fiscal year 2025 - 2026 budget, all of the capital expenditures have been reported as capital project or "CIP" expense. This includes reclassifying costs to CIP that had previously been included in forestry and planning operations. Included in the updated CIP list are the costs of project managers, with internally staffed project management listed as its own CIP line-item. In the future, the City will explore ways to track individual labor time and allocate it to projects and outcomes on an ongoing basis, but that technology is not yet available and allocations of individual staff time happen only at year-end.
33. Can we double check our cybersecurity insurance?
The City has cyber security insurance in place. In addition, as discussed in Question 5, the City is organizing an IT audit.
34. Why don’t we have Saturday library hours?
Due to union objections, the City has been unable to implement Saturday operations. City Administration is strongly in favor of Saturday hours and will continue to explore opportunities to add Saturday hours over the first quarter. Staff will return to Council if additional funds are needed for staffing.
35. We are only spending $300K net new on roads in this fiscal year. We need to be spending a decent chunk of our CIP budget on roads and $300k of the $7.9M is not the right ratio.
The fiscal year 2025 - 2026 budget for Streets is $1.6 million of new expenditures in addition to the completion of a $2.7 million carry-over, multi-year project.
36. The Historic CIP Lookback table included in the first draft of the budget book (p. 72) does not look complete. Confirmation on total spends?
See Question #9 above.
37. The City needs some long-term plan to figure out how to address the City’s buildings’ deferred maintenance.
This is consistent with the City's assessment of the situation. In the face of dwindling fund balances, slowing revenues and increasing operating costs (as discussed in Question #15 and #31), a thoughtful, multi-year budget plan to address unfunded maintenance and infrastructure is essential. City staff will be working with the Financial Stewardship Workgroup over the coming months to address this need.
38. The City does not have a City Public Information Officer.
Attachment 2
Per Question 27 above, the City is looking for the most efficient way to address public information needs.
39. If the City were to borrow money to pay for the construction of the police station, how would payments in future years appear in the budget - capital projects or operating expenses?
Expenditures for debt service are included in operating costs, so the cost of the bond issuance and its related interest would be included in operating costs and would be on top of the normal costs for operating the City. An example of this can be seen in the current budget relative to the debt service for Sunset Center on page 57 of the Proposed Budget Book.
40. How much would it cost to repave all the streets that have "fallen off of the bad end of the pavement management index?
Public Works is developing an analysis that will be presented in the May 21 Budget Workshop.
41. Is there sufficient staffing to accommodate all of the community meetings that are being scheduled?
There is enough staffing to currently accommodate all the community meetings but the time to facilitate meetings does reduce time available for other activities and service.
42. Does the City follow any State parental leave benefits? Employees do not pay into State Disability Insurance therefore not eligible for State parental leave benefits.
43. Can we provide an example of how much employees contribute to their benefit packages.
I'm thinking two safety - one classic and one PEPRA (for purposes of PERS), and two nonsafety - one classic and one PEPRA (for purposes of PERS). As well as an example of medical contributions on the part of staff.
There are two primary benefits - Health and Retirement .
Health Plan - Depending on their labor contract, plan selected, and coverage (single vs family) - Health coverage ranges from a zero-employee cost of a low budget plan to 10%-25% of the premium. Employee monthly premiums can be up to $767.57 per month for a family plan.
Retirement - employees pay 10% to 13.75% of their wages towards retirement.
Attachment 2
Table A – Positions and Salary Ranges
(continued on next page)
Attachment 2
CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
Staff Report
May 21, 2025
ORDERS OF BUSINESS
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Mary Bilse, Environmental Programs Manager APPROVED BY: Chip Rerig, City Administrator
SUBJECT:
Second Review of the Proposed Fiscal Year 2025/26 Capital Improvement Program and Direction to Staff (Estimated time - 30 min)
RECOMMENDATION:
Following the City Council’s first review of the proposed Fiscal Year (FY) 2025/26 Capital Improvement Plan at the March 24, 2025 Council meeting, staff requests that the City Council:
1) Tentatively approve, or provide alternative direction to staff, on the following project categories:
One (1) project recommended for cancellation.
Three (3) capital projects funded in or prior to FY 2024/25 that are recommended to be carried over into FY 2025/26 with remaining funds.
Nine (9) potential new projects funded by the Vehicle and Equipment Fund.
Thirty (30) potential new projects funded by the Capital Improvement Fund.
BACKGROUND/SUMMARY:
At the March 24, 2025 Council meeting, the City Council received a presentation from the Acting Public Works Director outlining:
Capital improvements completed or scheduled for FY 2024/25.
Projects proposed for cancellation.
Projects recommended for carry-over into FY 2025/26.
Potential new projects funded by the Vehicle and Equipment Fund and Capital Improvement Fund.
An introduction of the updated 5-year Capital Improvement Plan (FY 2025/26 - 2029/30).
The full staff report and presentation slides from the March meeting are provided as Attachment 1 and Attachment 2.
The follow-up staff report focuses on the following three areas, each of which will be discussed at the May 21, 2025 Council workshop:
A) Tentative Project Approvals
Tentatively approve, or provide alternative direction to staff, for the following project categories:
One (1) project recommended for cancellation
Three (3) capital projects funded in or prior to FY 2024/25 recommended for carry-over into FY 2025/26 with remaining funds
Nine (9) potential new projects funded by the Vehicle and Equipment Fund Thirty (30) potential new projects funded by the Capital Improvement Fund B) Detailed Review of Key Project Categories
1. Project Recommended for Cancellation:
Scout House – Staff recommends removing this project from the CIP.
2. Three (3) Carry-Over Projects into FY 2025/26:
Description Budget
Conglomerate Paving Project*
Carryover
$2,810,000
Shoreline Infrastructure Repair -
Carryover
$400,000
Coastal Engineering Study, Phase 2
Carryover
$250,000
Total $3,460,000
3. Nine (9) Potential New Projects – Vehicle & Equipment Fund ($1,210,000) Ambulance Heart Monitor ($35,000): This project involves the purchase new monitors to improve emergency medical care by enabling real-time cardiac assessment during transport, ensuring faster, more effective treatment for patients with heart-related conditions.
Ambulance ($450,000): A contract to build a new ambulance and equip it with necessary medical supplies was executed in FY 2023-24 for $410,000. Delivery is expected in late 2025. Funding of $400,000 along with a $50,000 donation, will be programmed in FY 2025-26.
Public Works Compact Track Loader ($125,000): The purchase of a compact track loader will significantly improve the City’s beach maintenance operations. Currently, the lack of a dedicated equipment ramp for beach access makes transporting machinery onto the beach difficult and inefficient. This purchase will enhance our ability to perform essential tasks such as sand redistribution and erosion control on the Del Mar and Volleyball Dunes. These areas are crucial for both recreational use and ecological health, and proactive maintenance is vital for their preservation. The compact track loader will provide the necessary mobility and power to navigate the sandy terrain effectively. We are requesting the inclusion of a flail mower and a street broom as attachments to further broaden the machine's utility. The flail mower will assist in vegetation management throughout the City, and the street broom will be used for debris removal and maintaining cleanliness in the Del Mar parking lot.
This proactive approach will save time and resources by preventing more significant issues from developing.
Public Works EV Trucks (2) ($150,000): The Public Works Department plans to replace a 2000 Dodge Dakota and a 2002 Ford Ranger due to their age, condition, and wear by acquiring two Electric Vehicle (EV) trucks. These EV trucks will be used across all divisions of the Public Works Department. Given the department's heavy reliance on its fleet of trucks for routine maintenance, repairs, equipment transportation, and emergency response, the transition to EV trucks will reduce the City’s carbon footprint and lower fuel and maintenance expenses. Additionally, acquiring these EV trucks aligns with the State's mandate for increasing EV adoption in municipal fleets. By proactively transitioning to electric vehicles, the City demonstrates its commitment to environmental sustainability and compliance with state regulations. This initiative will position the City of Carmel as a leader in adopting clean energy solutions and contribute to a healthier environment for our community.
Police Patrol Vehicles (2) ($150,000): The Police Department would replace two Dodge Durango vehicles with two Ford Explorer patrol vehicles due to mechanical issues with their engines.
Forestry Utility Bucket Truck ($180,000): The Forestry Division would replace the old high-ranger bucket truck with a specialized utility bucket vehicle equipped with a hydraulic lifting system and an attached bucket or platform. This truck would be used on a daily basis by the Forestry Maintenance crew for inspecting tree canopies and tree trimming and removal.
Police Radios Year 5 of 6 ($30,000) The City of Carmel initiated a lease for twenty-two (22) police radios in FY 2021/2022 to replace outdated hand-held radios. These radios are being leased/purchased at a cost of $30,000 per year over six (6) years, funded by the Vehicle and Equipment Fund. FY 2025/26 is the fifth year of this lease.
IT Network Refresh ($40,000): Funding will be used to upgrade and modernize the City's existing network infrastructure to enhance performance, reliability, and security. The City would replace outdated hardware, implement faster and more scalable solutions, and seamless connectivity for all departments and services. The project will focus on improving cybersecurity measure Wireless Access Point ($50,000): Funding will be used to purchase and install new Wireless Access Points (WAPs) throughout city facilities to enhance wireless connectivity and ensure reliable, high-speed internet access for employees and city operations. The project will upgrade outdated or insufficient wireless infrastructure, providing better coverage, faster speeds, and improved security across public buildings and departments. These upgrades will also support of the growing demand for mobile devices.
4. Thirty (30) Potential New Projects – Capital Improvement Fund ($6,789,000) Resurface Parking Lots (CL, SC) ($300,000): The allocated funding will be used for the required asphalt pavement maintenance at the Children's Library and the Sunset Center Main Lot. This work will address necessary repairs and improvements to maintain the safety and functionality of the parking lots. The funding will cover resurfacing, patching, and other asphalt-related maintenance tasks.
Road Segment Project (10 road segments) ($300,000) - Funding will be used to address pavement maintenance needs on ten streets that were identified through the City’s use of StreetSaver, a pavement management software that helps prioritize repairs based on condition, usage, and cost-effectiveness.
These specific streets were selected due to their current condition ratings and maintenance needs, as outlined in the pavement management analysis. The list of streets and associated work was previously discussed with the City Council at the March 24, 2025 meeting.
Scenic/Santa Lucia ADA Parking ($20,000) - Funding will be used for the installation of an ADAcompliant parking stall through pavement restriping and associated improvements. Additionally, an ADAcompliant access ramp will be installed to provide accessible entry to the scenic pathway. These improvements will enhance accessibility and ensure compliance with current ADA standards, allowing more users to safely enjoy the pathway.
Sidewalks ($500,000): Funding will be used for sidewalk repairs in areas that pose trip hazards, ensuring safer pedestrian access throughout the city. This will involve identifying and repairing damaged or uneven sections of sidewalk to prevent accidents and improve walkability. The repairs will focus on high-traffic areas and locations with the most significant safety concerns.
Sunset Center Retaining Walls - Construction ($450,000): Funding will be used for the construction of one structural retaining wall in the Sunset Center North Lot located on the north side adjacent to Eighth Avenue, which poses a hazard to the public. This wall has already been designed in the current year's CIP and requires funding for construction.
Junipero Bypass Pipe - Design ($175,000): The design improvements aim to address capacity issues along Junipero and Ocean, including the installation of a parallel 30-inch pipe on Junipero Street between Fifth and Seventh Avenues and a parallel 24-inch pipe near Fifth Avenue and Torres Street. These upgrades will enhance flow and reduce hydraulic grade line (HGL) peaks. Coordination with the Mission Street Bypass and Fifth Avenue projects may also be considered during the design phase.
MTNP Stream Project Sites #4 and #5 Redwood Grove Pedestrian Bridge and Mission Creek Realignment (Design, Engineering, and Environmental Permitting $175,000): The next stage of the MTNP project addresses the fourth and fifth of eight stream restoration and drainage improvements recommended in the 2019 MTNP Stream Stability Study. The first three projects were completed in late 2024. Any future work now requires updated environmental permits from the U.S.
Army Corps of Engineers, the California Department of Fish and Wildlife Service, and the State Regional Water Quality Control Board. The proposed improvements aim to eliminate stream incision threatening the Serra Trail, restore a more natural stream channel alignment, and reroute a section of the Doolittle Trail that is degrading the stream bank, eroding vegetation, and creating a safety hazard.
Site #4 work includes the design, permitting and implementation of:
Demolition of the existing concrete ford and installation of a naturalized stream channel Construction of a new pedestrian bridge
Establishment of a new trail through the redwood grove
Habitat restoration and monitoring
Site #5 work includes the design, permitting, and implementation of:
Realignment of Mission Creek just below the confluence, through the midpoint of the valley between Willow Trail and Serra Trail.
In addition, staff is exploring a grant opportunity through California Wildlife Conservation Board, which offers up to $1 million for design and up to $3 million for project implementation.
ADA Updates – Year 8 ($20,000): A $20,000 budget has been allocated for ADA upgrades within the city, aimed at improving accessibility for individuals with disabilities. The funds will be used to address areas in need of compliance, enhancing public spaces and facilities to ensure they meet ADA standards. Specific upgrade areas will be determined based on the city's infrastructure needs.
City Hall Exterior Shingles ($70,000): Funding will be used for the repair and restoration of wood shingles on the exterior walls of City Hall, as they need maintenance and some may require replacement.
This work will address areas of wear and deterioration, helping to preserve the building’s exterior. The project will ensure the structure remains protected and visually appealing.
Design Repairs – City Hall, Fire Station, Vista Lobos per Facilities Conditions Assessment ($150,000): Funding to be used for repairs to City facilities as recommended in the Facilities Conditions Assessment prepared by Bureau Veritas. These repairs are necessary to address maintenance issues, ensuring the safety, functionality, and efficiency of city buildings. This funding will support ongoing efforts by supplementing the work of the City’s Facilities Maintenance Department, specifically for repairs that exceed their current capacity or technical capabilities. The improvements will help prevent further deterioration and reduce long-term repair costs.
Fire Backflows to Code (3 Buildings) ($200,000): Funding to be used for fire backflow improvements at three locations: City Hall, HML Library, and Park Branch Library, to bring them into compliance with current code requirements. These upgrades are essential to ensure the safety and effectiveness of the fire suppression systems at each facility. The improvements will address existing deficiencies and help meet regulatory standards.
Fire Station Upgrades ($175,000): Funding to be used for upgrades to the Fire Station to accommodate a newly purchased fire truck. These upgrades will include modifications to the station’s bays, ensuring they are large enough to house the new equipment safely and efficiently.
Forest Theater Stage ($60,000) - Funding will be used for the replacement of the wooden stage deck and its incidental support system, which are currently showing significant signs of deterioration. The existing structure has experienced wear over time and needs replacement to ensure safety, structural integrity, and continued usability for performances and events.
Park Branch Library Window Repairs ($50,000): Funding will be used for window repairs at Park Branch Library, which includes replacing 18 deteriorated double-pane windows. These windows have lost their insulation, resulting in a persistent steamy appearance, and the wood trim is also deteriorating. Once replaced, the windows will be restored, and the trim will undergo necessary painting.
Picadilly Restroom Expansion Design ($70,000): Funding will be allocated for the design of an expansion to the Picadilly restroom, one of the City’s most heavily used facilities. During peak summer months, the line for this single-toilet restroom often extends to the sidewalk, highlighting the need for increased capacity.
Police/Public Works Building Project ($50,000): Funding allocated for immediate safety repairs while exploratory actions are taken on the future of the Police and Public Works building.
Sunset Center Elevator Power Unit ($120,000): Funding will be used for the replacement of the Sunset Center's power unit, including the hydraulic valves. The existing system has reached the end of its useful life and requires an upgrade to ensure continued reliable operation.
Sunset Center Painting, Phase 2 ($250,000): Funding will be used for Phase 2 of painting the Sunset Center. This phase will complete the painting of areas not addressed in the previously completed work, enhancing the facility's appearance and protecting surfaces from wear and damage. As a cost-saving measure, staff will incorporate design and project management efforts completed during Phase 1 to streamline the process and reduce overall expenses.
Sunset Center Yoga Center Reroof ($50,000): Funding will be used for the roof replacement at the Sunset Center Yoga Center, which is over 30 years old and requires frequent maintenance. The new roof will address ongoing issues and provide long-term durability. This replacement will ensure the facility remains safe and protected from weather-related damage.
Rio Road and Junipero Avenue Median Enhancements ($100,000): Funding will be used to design and implement enhancements to the existing medians along Rio Road and Junipero Avenue. Improvements would include new landscaping and irrigation upgrades.
Reconstruction of the Fourth Avenue Outfall – Construction ($900,000): Funding will be used for construction work to replace the outfall structure at 4th Avenue, which is showing significant structural deficiencies and is in a high level of disrepair. The existing structure is at risk of further deterioration, impacting the surrounding area. Design work for the replacement is being initiated in the current fiscal year, with construction aimed at restoring the outfall’s functionality, preventing further erosion, and ensuring the long-term stability of the area.
Shoreline Repair Stairs – Construction ($300,000): Funding will be used for construction work to reconstruct stairs damaged by winter storms and the effects of sea level rise. The stairs located north of 10th Avenue and on Twelfth Avenue have sustained deterioration and damage from these storms. Design work for the reconstruction will begin in the current fiscal year, with the goal of restoring safe access while addressing future environmental conditions. The anticipated cost is based on replacing the stairs with wooden structures, consistent with the existing design and environmental considerations. The design phase of the previously approved Shoreline Infrastructure Project (Task 1), which was authorized by City Council on March 24, 2025, is currently underway. Upon completion of this assessment, staff will return to Council with a potential recommendation to reconstruct the existing stairs using new concrete structures, with preliminary engineer’s estimates placing the cost at approximately $400,000 per stair.
Forest Plan Implementation Year 2 ($739,000): Budget reflects dead/unsafe tree removals and the backlog of stumps, all part of a 3-year tree maintenance catch-up plan, which began last fiscal year and is expected to culminate in the Fiscal Year 2026-27. In Year 1, the City removed over 175 dead, dying, or diseased trees and removed over 300 stumps, far exceeding our goals.
Devendorf Park Improvements ($50,000) - Allocated funding will be used to support a series of improvements within Devendorf Park, including enhancements to the War Memorials to preserve their condition and appearance, restoration and upgrades to the existing fishpond to improve its functionality and aesthetic, and the installation of a new guard rail/fence along Sixth Avenue to enhance public safety and define the area. These efforts aim to preserve historic features, improve site aesthetics, and ensure a safer and more welcoming environment for visitors.
Sand Ramp at Eighth Avenue Design and Construction ($275,000): Funding will be used for the design and reconstruction of the access sand ramp near Eighth Avenue, which has been repeatedly damaged by winter storms and the impacts of sea level rise. The ramp no longer exists in its current location due to extensive damage. Design work for the new ramp will begin in the current fiscal year, with reconstruction aimed at ensuring safe and reliable access while addressing future environmental challenges.
Scenic Pathway Enhancements ($100,000): Funding would be used to resurface and stabilize the existing decomposed granite (DG) pathway along Scenic Pathway, as well as the installation of new signage.
Library Master Plan Administration ($50,000) – Funding will be used to oversee and administer the interior renovations of the Harrison Memorial Library. This project will be a private-public partnership between the Carmel Public Library Foundation and the City of Carmel-by-the-Sea. The library requires essential upgrades to meet modern standards, including improvements to plumbing, electrical systems, and ADA compliance.
UV Film Replacement HML Windows ($25,000):Replace UV film for the Harrison Memorial Library windows. Life span is 10 years and was last applied in 2011.
Planning Objective Development Design Standards (ODDS): ($200,000):ODDS created to provide objective (ministerial) design and development regulations for affordable housing projects in compliance with State Law.
CEQA MTNP CFMP ($70,000): Environmental compliance work for projects to be completed in Mission Trails Nature Preserve and for adoption of the Carmel Forest Management Plan.
Staff Time ($295,000): The City’s Project Managers’ budgeted time will be allocated at year end to the CIP projects based upon actual time spent. Outsourced project management time is already budgeted in the appropriate project.
CIP Contingency Fund ($500,000): The CIP Contingency Fund, set at 5% of the total budget for current year (CY) projects, is reserved to cover unforeseen costs during the execution of capital projects. It addresses unexpected expenses such as material cost increases, design changes, or unforeseen site conditions. This fund ensures financial flexibility, preventing project delays or scope reductions and helping to keep projects on track and within budget.
FISCAL IMPACT:
The preliminary amount of CIP project funding available to be carried over into FY 2025/26 is approximately $3,460,000.
The additional fiscal impact for FY 2025/26 will be based on which projects are selected or deferred by the City Council during this review.
Vehicle and Equipment Fund: Nine (9) new projects are proposed, with an estimated cost of $1,210,000.
Capital Improvement Fund: Thirty (30) proposed projects have a combined estimated cost of $6,789,000.
PRIOR CITY COUNCIL ACTION:
On March 24, 2025, Council received a presentation on:
Completed and scheduled FY 2024/25 capital improvement projects Proposed project cancellations
Carry-over projects requiring continued funding
New project proposals under the Vehicle and Equipment Fund and Capital Improvement Fund Introduction of the updated 5-year CIP (FY 2025/26 through 2029/30) ATTACHMENTS:
Attachment #1 - March 24, 2025 CIP Staff Report
Attachment #2 - CIP PPT Presentation
CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
Staff Report
March 24, 2025
ORDERS OF BUSINESS
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Mary Bilse, Environmental Programs Manager APPROVED BY: Chip Rerig, City Administrator
SUBJECT:
Receive a presentation on the proposed Fiscal Year 2025/26 Capital Improvement Program and Five-Year Capital Improvement Plan, and provide direction to staff RECOMMENDATION:
1. Receive a report regarding:
Capital improvements projects completed or scheduled for completion in Fiscal Year (FY) 2024/25 Projects recommended for cancellation
Capital projects funded in (or prior to) FY 2024/25 that are recommended to be carried over, into FY 2025/26: Conglomerate Paving, Police/Public Works Building Project, Ambulance, Design for Shoreline Infrastructure Repair, Coastal Engineering, and Library Master Plan.
Potential new capital improvement projects for FY 2025/26:
Potential new projects funded by the Vehicle and Equipment Fund Potential new projects funded by the Capital Improvement Fund Introduction of the Updated 5-year Capital Improvement Plan (FY 2025/26 through 2029/30)
2. Provide guidance regarding:
Total number of FY 2025/26 projects to be funded
Funding priorities for future Capital Improvement Projects BACKGROUND/SUMMARY:
Executive Summary
This report outlines 25 capital improvement projects completed or anticipated to be completed in FY 2024/25, as well as one project (Scout House Relocation) recommended for cancellation. Additionally, six ongoing FY 2024/25 projects, with a remaining balance of approximately $2,110,000, are proposed to be carried over into FY 2025/26 (this amount does not include the budget for the Police/Public Works Building).
Attachment 1
Key messages/recommendations to highlight in the introduction of the FY 2025/26 CIP:
Six carry-over projects (Conglomerate Paving, Police/Public Works Building, Ambulance, Shoreline Infrastructure Repairs Design, Coastal Engineering, and Library Master Plan Administration) require supplemental funding of $2,110,000 to complete (this amount does not include the budget for the Police/Public Works Building).
Eight new vehicle and equipment funded projects, valued at $530,000, are identified for consideration in FY 2025/26. If sufficient funding is available, all of these projects should be prioritized, as acquiring vehicles and equipment typically requires less time and resources compared to multi-year infrastructure projects, which involve engineering, environmental permitting, public bidding, and construction.
27 potential new capital projects, valued at $9,800,000, have also been identified for FY 2025/26. While staff recognizes the merit of all these projects, the total cost exceeds the available funding.
Capital Project Definition
To ensure clarity when reviewing capital projects, it’s useful to have a shared understanding of what constitutes a “Capital Project.” The Governmental Accounting Standards Board (GASB) defines capital assets as “land, improvements to land, easements, buildings, building improvements, vehicles, machinery, equipment, historical treasures, infrastructure, and other tangible or intangible assets used in operations with useful lives extending beyond a single reporting period.” For the City of Carmel-by-the-Sea, staff recommends defining a Capital Project (or Capital Outlay) as an asset with a single component or piece of equipment that costs more than $10,000 and has an expected useful life of more than 10 years.
Some of the projects listed below, such as reports and plans, may not fall under the true definition of a capital project. However, these reports may include recommendations for future capital projects. For example, the Coastal Engineering Study has identified numerous physical improvements along the shoreline to be made over the next several years. Additionally, some projects are one-time special initiatives designed to meet regulatory requirements, address community public safety needs, and enhance operational effectiveness.
Infrastructure Needs
A preliminary 5-year Capital Improvement Plan (CIP) is included in Attachment 1. This framework provides information on necessary infrastructure for the upcoming fiscal year and forecasts for the following four years. Many of these needs have been identified through assessments and plans for City assets, including:
2013 Carmel Facilities Assessments
2018 ADA Transition Plan
2018 MTNP Stream Stability Study
2020 Storm Drain Master Plan and 2023 Master Plan Update 2022 Climate Action and Climate Adaptation Plans
2023 Street Saver Pavement Management Plan/Update
2023 Electrical Panel Studies (City Hall, Fire Station, Vista Lobos) 2023 Facility Condition Assessments (City Hall, Fire Station, Public Works, Vista Lobos) 2023 Police Building Condition Assessment
2023-2024 Coastal Engineering Study, Phase I
City Council Strategic Priorities list
Attachment 1
This CIP provides a framework for the Council to allocate funding for the most critical projects over time.
1. Projects Completed in Fiscal Year 2024/25
Twenty-Five capital improvement projects, with a total value of approximately $11,614,000, were completed or are anticipated to be substantially completed by June 30, 2025. These projects are listed below:
Attachment 1
Ongoing, maintenance-oriented projects have been included in the applicable department’s operating budget rather than the Capital Improvement Program, even if the budget for these maintenance projects exceeds $10,000.
2. Prior Projects Recommended for Cancellation
One project is recommended for cancellation:
Scout House Relocation
3. Projects Funded in (or prior to) FY 2024/25 that are recommended to be carried over to FY 2025/26
The following six capital improvement projects, funded in or prior to Fiscal Year 2024/25 but not fully completed, are recommended to be carried over into FY 2025/26. The total budget for these projects in FY 2024/25 was $7,709.000, and an estimated balance of $2,110,000 is proposed to be carried over into FY 2025/26 (this amount does not include the budget for the Police/Public Works Building). The exact carryover amount will not be known until the end of the current fiscal year.
Carry-Over Capital Improvement Projects
Description Budget
Conglomerate Paving Project $1,400,000
Police/Public Works Building Project TBD
Ambulance – Balance of $410k $85,000
Shoreline Infrastructure Repairs
Design
$325,000
Coastal Engineering Study – Phase
2 $250,000
Library Master Plan Administration $50,000
Total $2,110,000
4. Introduction of the Updated 5-Year Capital Improvement Plan The updated 5-year CIP Exhibit is provided in Attachment 1. While only the first fiscal year (2025/26) will be funded as part of the City Budget, the remaining four years serve as a planning tool to identify anticipated future projects. Below is a brief overview of the potential new vehicle and equipment fund projects:
Potential New Vehicle and Equipment Fund Projects:
Radios Lease, Year 5 ($30,000): The City of Carmel initiated a lease for twenty-two (22) police radios in FY 2021/2022 to replace outdated hand-held radios. These radios are being leased/purchased at a cost of $30,000 per year over six (6) years, funded by the Vehicle and Equipment Fund. FY 2025/26 is the fifth year of this lease.
Public Works Compact Track Loader ($125,000): The purchase of a compact track loader will significantly improve the City’s beach maintenance operations. Currently, the lack of a dedicated equipment ramp for beach access makes transporting machinery onto the beach difficult and inefficient. This purchase will enhance our ability to perform essential tasks such as sand redistribution and erosion control on the Del Mar and Volleyball Dunes. These areas are crucial for both recreational use and ecological health, and Attachment 1
proactive maintenance is vital for their preservation. The compact track loader will provide the necessary mobility and power to navigate the sandy terrain effectively. We are requesting the inclusion of a flail mower and a street broom as attachments to further broaden the machine's utility. The flail mower will assist in vegetation management throughout the City, and the street broom will be used for debris removal and maintaining cleanliness in the Del Mar parking lot. This proactive approach will save time and resources by preventing more significant issues from developing.
Public Works EV Trucks (2) ($150,000): The Public Works Department plans to replace a 2000 Dodge Dakota and a 2013 Ford F-150 by acquiring two Electric Vehicle (EV) trucks. These EV trucks will be used across all divisions of the Public Works Department. Given the department's heavy reliance on its fleet of trucks for routine maintenance, repairs, equipment transportation, and emergency response, the transition to EV trucks will reduce the City’s carbon footprint and lower fuel and maintenance expenses. Additionally, acquiring these EV trucks aligns with the State's mandate for increasing EV adoption in municipal fleets. By proactively transitioning to electric vehicles, the City demonstrates its commitment to environmental sustainability and compliance with state regulations. This initiative will position the City of Carmel as a leader in adopting clean energy solutions and contribute to a healthier environment for our community.
Fire Vehicle EV ($75,000): The Fire Department plans to replace a 2010 fire vehicle by acquiring an EV vehicle.
Ambulance Heart Monitor ($35,000): This project involves the purchase new monitors to improve emergency medical care by enabling real-time cardiac assessment during transport, ensuring faster, more effective treatment for patients with heart-related conditions.
Police Motorcycle EV ($30,000): The Police Department plans to replace a 2008 motorcycle with an EV police motorcycle.
Potential New Capital Improvement Fund Projects:
The City is evaluating a series of potential Capital Improvement Fund projects aimed at addressing key infrastructure and facility needs. These projects are designed to improve the functionality, safety, and sustainability of city assets, while also supporting long-term growth and enhancing public services.
Junipero Bypass Pipe - Design ($175,000): The design improvements aim to address capacity issues along Junipero and Ocean, including the installation of a parallel 30-inch pipe on Junipero Street between Fifth and Seventh Avenues and a parallel 24-inch pipe near Fifth Avenue and Torres Street. These upgrades will enhance flow and reduce hydraulic grade line (HGL) peaks. Coordination with the Mission Street Bypass and Fifth Avenue projects may also be considered during the design phase.
Resurface Parking Lots (CL, SC) ($300,000): The allocated funding will be used for the required asphalt pavement maintenance at the Children's Library and the Sunset Center Main Lot. This work will address necessary repairs and improvements to maintain the safety and functionality of the parking lots.
The funding will cover resurfacing, patching, and other asphalt-related maintenance tasks.
Sidewalks ($500,000): Funding will be used for sidewalk repairs in areas that pose trip hazards, ensuring safer pedestrian access throughout the city. This will involve identifying and repairing damaged or uneven sections of sidewalk to prevent accidents and improve walkability. The repairs will focus on high-traffic areas and locations with the most significant safety concerns.
ADA Updates – Year 8 ($20,000): A $20,000 budget has been allocated for ADA upgrades within the city, aimed at improving accessibility for individuals with disabilities. The funds will be used to address areas in Attachment 1
need of compliance, enhancing public spaces and facilities to ensure they meet ADA standards. Specific upgrade areas will be determined based on the city's infrastructure needs.
Sunset Center Retaining Walls - Construction ($400,000): Funding will be used for the construction of one structural retaining wall in the Sunset Center North Lot located on the north side adjacent to Eighth Avenue, which poses a hazard to the public. This wall has already been designed in the current year's CIP and requires funding for construction.
Fire Station Upgrades ($140,000): Funding to be used for upgrades to the Fire Station to accommodate a newly purchased fire truck. These upgrades will include modifications to the station’s bays, ensuring they are large enough to house the new equipment safely and efficiently.
Design Repairs – CH, FS per Facilities Conditions Assessment ($150,000): Funding to be used for repairs to City facilities as recommended in the Facilities Conditions Assessment prepared by Bureau Veritas. These repairs are necessary to address maintenance issues, ensuring the safety, functionality, and efficiency of city buildings. The improvements will help prevent further deterioration and reduce long-term repair costs.
Fire Backflows to Code (3 Buildings) ($200,000): Funding to be used for fire backflow improvements at three locations: City Hall, HML Library, and Park Branch Library, to bring them into compliance with current code requirements. These upgrades are essential to ensure the safety and effectiveness of the fire suppression systems at each facility. The improvements will address existing deficiencies and help meet regulatory standards.
Sunset Center Painting, Phase 2 ($250,000): Funding will be used for Phase 2 of painting the Sunset Center. This phase will complete the painting of areas not addressed in the previously completed work, enhancing the facility's appearance and protecting surfaces from wear and damage.
Police/Public Works Building Project (TBD): Project to be determined.
Picadilly Restroom Expansion Design ($70,000): Funding will be allocated for the design of an expansion to the Picadilly restroom, one of the City’s most heavily used facilities. During peak summer months, the line for this single-toilet restroom often extends to the sidewalk, highlighting the need for increased capacity.
Sunset Center Yoga Center Reroof ($100,000): Funding will be used for the roof replacement at the Sunset Center Yoga Center, which is over 30 years old and requires frequent maintenance. The new roof will address ongoing issues and provide long-term durability. This replacement will ensure the facility remains safe and protected from weather-related damage.
Park Branch Library Window Repairs ($50,000): Funding will be used for window repairs at Park Branch Library, which includes replacing 18 deteriorated double-pane windows. These windows have lost their insulation, resulting in a persistent steamy appearance, and the wood trim is also deteriorating. Once replaced, the windows will be restored, and the trim will undergo necessary painting.
Sunset Center Elevator Power Unit ($120,000): Funding will be used for the replacement of the Sunset Center's power unit, including the hydraulic valves. The existing system has reached the end of its useful life and requires an upgrade to ensure continued reliable operation.
City Hall Exterior Shingles ($70,000): Funding will be used for the repair and restoration of wood shingles on the exterior walls of City Hall, as they need maintenance and some may require replacement.
Attachment 1
This work will address areas of wear and deterioration, helping to preserve the building’s exterior. The project will ensure the structure remains protected and visually appealing.
MTNP Stream Projects 5-6 Design ($125,000): Funding will be used for Projects 5-6 as identified in the stream stability survey performed by Dudek. These projects include addressing bank erosion along Serra Trail and replacing a bridge over the tributary channel, as well as implementing bio-remediation measures.
These efforts aim to improve stream stability, enhance environmental health, and ensure the safety of the affected areas.
Reconstruction of the Fourth Avenue Outfall – Construction ($900,000): Funding will be used for construction work to replace the outfall structure at 4th Avenue, which is showing significant structural deficiencies and is in a high level of disrepair. The existing structure is at risk of further deterioration, impacting the surrounding area. Design work for the replacement is being initiated in the current fiscal year, with construction aimed at restoring the outfall’s functionality, preventing further erosion, and ensuring the long-term stability of the area.
Sand Ramp at Eighth Avenue ($250,000): Funding will be used for the reconstruction of the access sand ramp near Eighth Avenue, which has been repeatedly damaged by winter storms and the impacts of sea level rise. The ramp no longer exists in its current location due to extensive damage. Design work for the new ramp will begin in the current fiscal year, with reconstruction aimed at ensuring safe and reliable access while addressing future environmental challenges.
Shoreline Repairs Stairs – Construction ($500,000): Construction ($500,000): Funding will be used for construction work to reconstruct stairs damaged by winter storms and the effects of sea level rise. The stairs located north of 10th Avenue and on Twelfth Avenue have sustained deterioration and damage from these storms. Design work for the reconstruction will begin in the current fiscal year, with the goal of restoring safe access while addressing future environmental conditions.
IT Network Refresh ($60,000) – Funding will be used to upgrade and modernize the City’s existing network infrastructure to enhance performance, reliability, and security. The City would replace outdated hardware, implement faster and more scalable solutions, and seamless connectivity for all departments and services. The project will focus on improving cybersecurity measures.
Wireless Access Point ($50,000) – Funding will be used to purchase and install new Wireless Access Points (WAPs) throughout city facilities to enhance wireless connectivity and ensure reliable, high-speed internet access for employees and city operations. The project will upgrade outdated or insufficient wireless infrastructure, providing better coverage, faster speeds, and improved security across public buildings and departments. These upgrades will also support the growing demand for mobile devices.
Library Master Plan Administration ($50,000) – Funding will be used to oversee and administer the interior renovations of the Harrison Memorial Library. This project will be a private-public partnership between the Carmel Public Library Foundation and the City of Carmel-by-the-Sea. The library requires essential upgrades to meet modern standards, including improvements to plumbing, electrical systems, and ADA compliance.
CIP Contingency Fund ($500,000): The CIP Contingency Fund, set at 5% of the total budget for current year (CY) projects, is reserved to cover unforeseen costs during the execution of capital projects. It addresses unexpected expenses such as material cost increases, design changes, or unforeseen site conditions. This fund ensures financial flexibility, preventing project delays or scope reductions and helping to keep projects on track and within budget.
Attachment 1
5. Council Guidance
Staff is seeking direction from the Council on the following issues. Please note that this is the first review and screening of potential projects. Staff will return at a future meeting to refine the list of potential projects based on feedback received on March 24, 2025.
Acceptance of the capital improvement projects completed or anticipated to be completed in FY 2024/25, as listed in Section 1 above.
Confirmation to cancel the one project described in Section 2 above.
Confirmation to carry over six projects from FY 2024/25, including their remaining project funds, into FY 2025/26, as described in Section 3 above.
Review potential projects for the FY 2025/26 CIP in the Vehicle and Equipment and Capital Improvement Funds as listed in Section 4 above.
Review the preliminary 5-Year CIP, Attachment 1, including the preliminary list of identified projects for Years 2 - 5.
Add, delete, or modify identified projects based on public comments and Council’s input. Direct staff to return at a future meeting to refine the list of proposed projects for a second review.
Upon Council’s tentative approval, the CIP document will be presented to the Planning Commission for a General consistency review, as required by State law and the City’s Municipal Code.
FISCAL IMPACT:
The preliminary amount of CIP project funding available to be carried over into FY 25/26 is approximately $2,110,000. This amount will be refined during the remainder of the current FY 24/25.
Six carry-over capital improvement projects are recommended to be carried over into FY 2025/26, with an estimated remaining budget of $2,110,000.
Potential New Projects – Vehicle and Equipment Fund: 6 new vehicle and equipment projects are proposed at an estimated cost of $530,000.
Potential New Projects – Capital Improvement Fund: 16 additional projects were listed above with a total estimated cost of $7,285,000. Staff recommends that this list be slimmed down to fit within the available budget.
PRIOR CITY COUNCIL ACTION:
None for Fiscal Year 2025/26.
ATTACHMENTS:
Attachment #1 - Preliminary 5-Year Capital Improvement Plan Attachment 1
City of Carmel-by-the-Sea
5-Year Capital Improvement PlanExcluding Operating Budget Projects As of : 3/12/25
Category Year 1 Year 1 Year 2 Year 2 Year 3 Year 3 Year 4 Year 4 Year 5 Year 5 FY 2025/26 Estimate FY 2026/27 Estimate FY 2027/28 Estimate FY 2028/29 Estimate FY 2028/29 Estimate Junipero Bypass Pipe - Design 175 Junipero Bypass Construct Ph 1 Drainage Repairs - Design 250 750 Drainage Repairs Construct 800 4th Ave CDS - Design 4th Ave CDS - Construction 450 75
Drainage Junipero Bypass Construct, Ph 2 1,000
$3,500 $ 175 $ 825 $ 1,700 $ 800 $ -
FY26 Allocate to Concrete Streets?? FY 27 Paving, Bike, S/W 1,000 FY28 Paving, Bike, S/W 720 FY29 Paving, Bike, S/W 730 FY30 Paving, Bike, S/W TAMC: SB1, X, RSTIP, HUTA TAMC: SB1, X, RSTIP, HUTA - 700 TAMC: SB1, X, RSTIP, HUTA - 430 TAMC: SB1, X, RSTIP, HUTA - 440 Resurface Parking Lots (CL, SC) Bicycle Master Plan 70 300 Resurface Parking Lots 300 Sidewalks 500 Sidewalks 500
Conglomerate Paving Project 1,400 Lincoln 4th trestle bridge - Design 150 Pavement Survey Update 30
Streets
$5,700 $ 2,200 $ 1,750 $ 1,020 $ 730 $ -
ADA Updates - Year 8 ADA Updates - Year 9 20 ADA Updates - 20 Year 10 20 ADA Updates - Year 11 25 SC Retaining Walls - Construction 400 SC Retaining Walls - Construction 900 Scout House Relocate-PM, Env, Des Scout House Relocation 350 Scout House Renovation 500 Sell Scout House Property TBD
Fire Station Upgrades Flanders Structural Shoring 250 140 Design Repairs - CH, FS per Facilities Conditions Assessment 150 CH FCA: Fire, Doors, Lighting 400 FS FCA: Roof, Windows, Alarm 500 Fire Backflows to Code (3 bldgs) 200 Park Restroom Repairs 150 Sunset Center Railings 225 Sunset Ctr Painting, Ph 2 Facility Assessment (Flanders, RRs) 85 250 Police/Public Works Building Project 2,000 Police Building - Construction 10,000 Police Building Construction 10,000 Police Building - Construction 10,000 Police Building - Construction 5,000 Police Building, Fed Appropriation TBD Devendorf Bathroom RR 50 Picadilly restroom expansion design 70 Picadilly restroom expansion contructionTBD SC Yoga Center ReRoof 100 Sunset Center Portico Design, Const 475 PBL Window Repairs 50SC elevator power unit 120City Hall Shingles 70 Facilities
$42,520 $ 3,570 $ 12,680 $ 11,245 $ 10,025 $ 5,000
MTNP Doolittle Bridge Construct 125
MTNP Stream Projects 5-6 Design 125 MTNP - Stream 5-6 Construct 500 MTNP-Stream 7-8-Design 150 MTNP-Stream 7-8-Construct 600 - -
Forestry, - -
Parks & Beach
$1,500 $ 125 $ 625 $ 150 $ 600 $ -
Radios Lease, Year 5 30 Radios Lease, Year 6 (Last) 30PW Compact Track Loader (Priority) 125 Facilities Truck EV (2007) 85 Streets Pickup EV (2005) 75 Streets Pickup EV (2012) 75 PW EV Truck (2012 Ford F150) * 75 Fire Inspector Vehcile EV (2012) 75 Forestry Water Truck (1994) 120 PD Detective Veh EV (2017) 75 PW EV Truck (2000 Dakota) * 75 PD Admin Vehicle EV (2013) 75 Streets Patch Truck (1999) 100 PD Patrol Vehicle EV (2020) 75 Fire Vehicle EV (2010) * 75 PD Animal Control Veh (2009) 75 PD Patrol Vehicle EV (2019) 75 Ambulance - Balance of $410k * 400Ambulance Heart Monitor * 35 Fleet & PD Motorcycle EV (2008) * 30 PD Radar Trailer (2009) 25 PD Parking Vehicle EV (2014) 45 Equipment EV Vehicles - 3CE Grants - 20 EV Vehicles - 3CE Grants - 30 EV Vehicles - 3CE Grants - 30 EV Vehicles - 3CE Grants - 35 Category Year 1 Year 1 Year 2 Year 2 Year 3 Year 3 Year 4 Year 4 Year 5 Year 5 FY 2025/26 Estimate FY 2026/27 Estimate FY 2027/28 Estimate FY 2028/29 Estimate FY 2028/29 Estimate (Vehicle & Equipment Fund)
$1,850 $ 845 $ 365 $ 415 $ 225 $ -
Climate Action Plan Projects 50 Climate Action Plan Projects 50 Climate Action Plan Projects 50 Energy Upgrades 50 Energy Upgrades 50 Energy Upgrades 50 SC EV Parking 1,000
SC EV Parking reimbursement TBD
Reconst. 4th Outfall - Const 900 Shoreline Inf Repairs - Const 4 750 Shoreline Inf Repairs - Const 5 750 Sand Ramp at 8th Avenue 250
Shoreline Repairs Stairs (2) - Const 500
Complete Design Work for Shoreline Inf Repairs 325
Environmental Coastal Engineering Phase 2 Shoreline Inf Repairs - Design 5 150 250 & Climate Change
$5,175 $ 2,225 $ 2,000 $ 850 $ 100 $ -
IT Network Refresh 60 IT Equipment 75 IT Equipment 80 IT Equipment 85 Wireless Access Point 50
IT GIS Upgrades 30
(Vehicle & PD Records Management 200
Equipment Fund)
$580 $ 110 - $ $ 305 $ 80 $ 85 $ -
MP Administration 50
MP Project #1 - Construction MP Project #2 - Design MP Project #2 - Construction MP Project #2 - ConstructionMP Project #1 - Donations same as above MP Project #2 - Donations same as above MP Project #2 - Donations same as above MP Project #2 - Donations same as above
Library
$50 $ 50 $ - $ - $ - $ -
Contingency CIP Contingency - 5% of CY projects 500 CIP Contingency 250 CIP Contingency 250 CIP Contingency 250 CIP Contingency 250 $1,500 $ 500 $ 250 $ 250 $ 250 $ 250
5-Year Totals:
Grand Totals(incl. carry over) $62,461 $9,800 $18,800 $15,710 $12,815 $5,250City Funding $60,690 $9,780 $18,070 $15,250 $12,340 $5,250External Funding $1,685 $20 $730 $460 $475 $0 = amount of external funding source
* EV Vehicles needed to meet State EV fleet requirments "Time Weight" is a way to understand how much project management time a project will take. "5" is a hands on, day-to-day project. "1" is a minimal time project, like a single-vendor delivered or that handled by an interal city department.
EXTERNAL FUNDING 5/13/24 For March, 2025_Draft Meeting
Category Last Fiscal Year FY 23/24 Year 1 Year 1 Year 2 Year 2 Year 3 Year 3 Year 4 Year 4 Year 5 Year 5 FY 2023/24 Budget Status FY 2024/25 Estimate FY 2025/26 Estimate FY 2026/27 Estimate FY 2027/28 Estimate FY 2028/29 Estimate Contingency CIP Contingency 500 Done CIP Contingency 400 CIP Contingency 250 CIP Contingency 250 CIP Contingency 250 CIP Contingency 250 $1,900 500$ $ 400 $ 250 $ 250 $ 250 $ 250
Drainage System Repairs (4) 580 Carry Over Drainage Repairs 4 - Suppl. $ 638 Junipero Bypass Pipe - Design 175 Junipero Bypass Construct Ph 1 Drainage Repairs - Design 250 750 Drainage Repairs Construct 800 Drainage Junipero Bypass Pipe - Design 175 4th Ave CDS - Design 4th Ave CDS - Construction 450 75 Junipero Bypass Construct, Ph 2 1,000
$4,893 580$ $ 813 $ 175 $ 825 $ 1,700 $ 800
FY 22 Paving Overlay/Micro Surf 543 Done FY25 Conglomerate Paving (FY24) 692 FY26 Allocate to Concrete Streets 700 FY27Allocate to Concrete Streets 710 FY28 Paving, Bike, S/W 720 FY29 Paving, Bike, S/W 730 Streets TAMC: SB1, X, HUTA, RSTP 335 Done TAMC: SB1, X, RSTIP, HUTA 408 TAMC: SB1, X, RSTIP, HUTA 410 TAMC: SB1, X, RSTIP, HUTA 420 TAMC: SB1, X, RSTIP, HUTA 430 TAMC: SB1, X, RSTIP, HUTA 440 SC - Retaining Walls - Design 40 Done San Antonio/Ocean Intersection 293 Resurface Parking Lots (CL, SC) Bicycle Master Plan 70 300 Resurface Parking Lots 300 FY 23 Concrete Street Repairs Carry Over 564 FY 22 - 4 Bid Additives 835 SC Retaining Walls - Construction 1,300 Pavement Survey Update 30 TAMC: SB1, X, RSTIP, HUTA Carry Over 441 FY 23 Concrete Streets ($ to FY22, 24) - FY24 Paving Overlay, Slurry, S/W 657 Carry Over Lincoln.4th trestle bridge - Const 1,000 TAMC: SB1, X, RSTIP, HUTA 439 Carry Over San Antonio Pathway - Reconstruction 550 Lincoln/4th Trestle Bridge - Evaluate 40
Ocean Ave, Carpenter-Hwy 1 (County) 500
$13,897 3,019$ $ 3,318 $ 3,710 $ 1,230 $ 1,450 $ 1,170
ADA Updates - Year 6 Done 20 ADA Updates - Year 7 20 ADA Updates - Year 8 ADA Updates - Year 9 20 ADA Updates - Ye 20 ar 10 20 ADA Updates - Year 11 25 Facilities City Hall Retaining Wall Repair 170 Done Scout House Relocate-PM, Env, Des 250 Scout House Relocation 350 Scout House Renovation 500 Elect Panels (CH, FS, VL, Ocean) 75 Done Vista Lobos: EV Chargers & E Panel 40 Facility Assessment (Flanders, RRs) 85 Sell 0 Scout House Property TBD Sunset Center Ext Painting Done 3CE EV Chargers & Electrical 60 250 Fire Station Painting Flanders Structural Shoring 250 100 Sunset Center - 8 Bollards 20 Done Norton Garage - Secure Access 15 Design Repairs - CH, FS per FCA 150 CH FCA: Fire, Doors, Lighting 400 FS FCA: Roof, Windows, Alarm 500 SC - Carpenter Hall Heater 45 Done Fire Backflows to Code (3 bldgs) 200 Park Restroom Repairs 150 Sunset Center Railings 225 Sunset Center- Portico Concepts 40 Done Sunset Ctr Painting, Ph 2 250 Police Building Project 3,239 Carry Over Police Building Project - Design 1,000 Police Building - Construction 10,000 Police Building Construction 10,000 PW Building Reno - Design 1,000 Resilience Infr. Pilot Design 85 Merge w/PD Police Building, Fed Appropriation TBD City Hall Roof Replacement Carry Over City Hall Roof - Supplemental $ 1 160 67 Devendorf Bathroom RR 50 Sunset Ctr Cottage Windows 100 Carry Over Sunset Ctr Cottage Windows-Suppl $ 100 Sunset Center Portico Design, Const 475 Sunset Center - N Lot Electrical 100 Carry Over SC Yoga Center RR 100 PBL Window Repairs TBDCity Hall Shingles 70
$31,256 4,304$ $ 762 $ 2,750 $ 11,170 $ 11,245 $ 1,025
MTNP Tank & Well Demo 121 Done MTNP Doolittle Bridge - Env, Design 175 MTNP Doolittle Bridge Construct 125 Forestry, Urban Forest Master Plan 75 Done Forest Management Plan 200 Parks & Beach Urban Forest MP CalFire Grant Done 150
N Dunes Split Rail + Signage Fence Done 25 MTNP Stream Projects 5-6 Design 125 MTNP - Stream 5-6 Construct 500 MTNP-Stream 7-8-Design 150 MTNP-Stream 7-8-Construct 600 MTNP - Stream 3 Drainage Carry Over MTNP - 3 Drainage Supplementa 85 l $ 68 MTNP - Stream 3 Drainage Grant 178 Carry Over -
Scenic Pathway Hardscape 100 Carry Over - Scenic Pathway Hardscape (CC) 100 Carry Over $2,777 834$ $ 243 $ 450 $ 500 $ 150 $ 600
Radios Lease, Year 3 30 Done Radios Lease, Year 4 30 Radios Lease, Year 5 30 Radios Lease, Year 6 (Last) 30 Fleet & 2 Forestry & 2 PD Vehicles Done 220 PW Dump Truck (1995) 150 PW Compact Track Loader (Priority) 125 Facilities Truck EV (2007) 85 Streets Pickup EV (2005) 75 Streets Pickup EV (2012) 75 Equipment EV Vehicles - 3CE Grants 25 TBD Police EV Patrol (2017) 75 PW EV Truck (2012 Ford F150) 75 Fire Inspector Vehcile EV (2012) 75 Forestry Water Truck (1994) 120 PD Detective Veh EV (2017) 75 (Vehicle & Ambulance & Equipment/AED 275 Carry Over EV Vehicles - 3CE Grants 15 PW EV Truck (2000 Dakota) 75 PD Admin Vehicle EV (2013) 75 Streets Patch Truck (1999) 100 PD Patrol Vehicle EV (2020) 75 Equipment Fund) Ambulance (Donation) 50 Carry Over Fire Vehicle EV (2010) 75 PD Animal Control Veh (2009) 75 PD Patrol Vehicle EV (2019) 75 Fire Engine (Prepaid $880k) 0 Carry Over Ambulance - Balance of $410k 85 PD Radar Trailer (2009) 25 PD Parking Vehicle EV (2014) 45 Ambulance Heart Monitor 35 EV Vehicles - 3CE Grants 30 EV Vehicles - 3CE Grants 30 EV Vehicles - 3CE Grants 35 PD Motorcycle EV (2008) 30
EV Vehicles needed to meet State EV fleet requirmentsEV Vehicles - 3CE Grants 20 $2,520 600$ $ 270 - $ $ 550 - $ $ 395 $ 445 $ 260
Coastal Engineering Study, Ph I Done 133 Climate Action Plan Projects 50 Climate Action Plan Projects 50 Climate Action Plan Projects 50 Climate Action Plan Projects 50 Environmental Coastal Engineering Study, Ph 2 500 Carry Over Energy Upgrades 50 Energy Upgrades 50 Energy Upgrades 50 Energy Upgrades 50 & Climate Change Rule 20A Undergr. Utility Dist. 667 Carry Over SC EV Parking 1,000 Shoreline Inf Repairs, Stairs 350 Carry Over 4th Ave. Outfall Wall - Env, Design 250 Reconst. 4th Outfall - Const 900 Shoreline Inf Repairs, FEMA $ 50 Carry Over Shoreline Inf Repairs (3rd) - Const 750 Shoreline Inf Repairs - Const 4 750 Shoreline Inf Repairs - Const 5 750 Shoreline Inf Repairs (4th) - Design 150 Shoreline Inf Repairs - Design 5 150 $6,800 1,700$ $ 250 - $ $ 2,900 - $ $ 1,000 $ 850 $ 100 HML Generator - Cancel Core Networks 50 IT Network Refresh 60 IT Equipment 75 IT Equipment 80 IT Equipment 85 IT IT Servers 50 Done Network Firewalls 180 Wireless Access Point 50 GIS Upgrades 30 (Vehicle & Council Chambers AV Upgrade 60 PD Records Management 200 Equipment Fund)
$920 50$ $ 290 - $ $ 310 - $ $ 105 $ 80 $ 85
HML Carpet - Cancel PBL - Windows, Dry Rot 45
Library HML Exterior + Part Interior Paint 140 Done MP Project #1 - Construction 200 MP Project #2 - Design 200 MP Project #2 - Construction 200 MP Project #2 - Construction 200 Library Master Plan - Phases 2-4 100 Carry Over MP Project #1 - Donations - TBD 800 MP Project #2 - Donations TBD 800 MP Project #2 - Donations 800 MP Project #2 - Donations 800 $4,285 240$ $ 45 $ 1,000 $ 1,000 $ 1,000 $ 1,000
Grand Totals $69,248 $11,827 $6,391 $12,095 $16,475 $17,170 $5,290 City Funding $60,523 $9,115 $5,408 $10,850 $15,225 $15,910 $4,015 City of Carmel-by-the-Sea
5-Year Capital Improvement Plan
Excluding Operating Budget Projects
Capital Improvement Program (CIP) and 5-year CIP
Capital Projects 2024/25
Prior Project Recommended for Cancellation
One 2024/25 CIP Project, Scout House
Relocation is Recommended for Cancellation
Carry-Over CIPs
Conglomerate Street Resurfacing Project FY 2024/25
Conglomerate Street Resurfacing Project FY 2024/25
Updated 5-Year CIP
Updated 5-Year CIP
Potential New Vehicle and Equipment Fund Projects
Changes to New Vehicle and Equipment Fund Projects
Changes to the Request for New Vehicle and Equipment Funds Projects:
This replacement vehicle can be pushed to FY 2026/27.
The Police Department is requesting the replacement of two Dodge Durango's with 2 Ford Explorer patrol vehicles due to mechanical issues with their engines in FY 2025/26.
Potential New CIP Fund Projects
Potential New CIP Fund Projects
Potential New CIP Fund Projects
Potential New CIP Fund Projects
Potential New CIP Fund Projects
Potential New CIP Fund Projects
Potential New CIP Fund Projects
Proposed New CIP Projects for Consideration
1. Devendorf Park Improvements
• Enhancements to War Memorials
• Restoration and upgrade of the fishpond
• Guard rail/fence along Sixth Avenue
2. Scenic/Santa Lucia ADA Parking Spot(s)
• Design and implementation of ADA-compliant parking spaces
3. Scenic Pathway Enhancements
• Refresh of decomposed granite pathway and install new signage
4. Second Restroom at Picadilly Park
• Design phase included in FY 2025/26 CIP Project list
• Construction of additional restroom to meet growing demand Updated 5-Year CIP
Updated 5-Year CIP
Council Guidance
Staff is seeking direction from the Council on the following issues:
• Acceptance of the CIP projects completed or anticipated to be completed in FY 2024/25
• Confirmation to cancel the one CIP project, Scout House Relocation • Confirmation to carry over six projects from FY 2024/25 into FY 2025/26 • Review potential projects for FY 2025/26 in the Vehicle and Equipment and Capital Improvement Funds
• Review the preliminary 5-Year CIP, including the preliminary list of identified projects for Years 2-5
• Add, delete, or modify identified projects based on public comments and Council’s input. Direct staff to return at a future meeting to refine the list of proposed projects for a second review.