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
REGULAR MEETING
Tuesday, June 3, 2025
4:30 PM
AMENDED AGENDA
HYBRID MEETING ATTENDANCE OPTIONS
This meeting will be held in person and via teleconference ("hybrid"). The public is welcome to attend the meeting in person or remotely via Zoom, however, the meeting will proceed as normal even if there are technical difficulties accessing Zoom. The City will do its best to resolve any technical issues as quickly as possible. To view or listen to the meeting from home, you may also watch the live stream on the City's YouTube page at: https://www.youtube.com/@CityofCarmelbytheSea/streams. To participate in the meeting via Zoom, copy and paste the link below into your browser.
https://ci-carmel-ca-us.zoom.us/j/86890317537 Webinar ID: 868 9031 7537 Passcode:
100836 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.
OPEN SESSION
4:30 PM
CALL TO ORDER AND ROLL CALL
PLEDGE OF ALLEGIANCE
EXTRAORDINARY BUSINESS
A. Carmel High School Report Out (Estimated time - 3 min) B. Pride Month Proclamation (Estimated time - 3 min)
C. Non-Profit Spotlight - Monterey Fire Fighters Community Foundation (Estimated time - 3 min)
D. Receive an information report on the City of Carmel-by-the-Sea Vacancies Pursuant to Government Code Section 3502.3 (AB 2561) (Estimated time - 5 min)
PUBLIC APPEARANCES
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.
Persons are not required to provide their names, however, it is helpful for speakers to state their names so they may be identified in the minutes of the meeting. Under the Brown Act, public comment for matters on the agenda must relate to that agenda item and public comments for matters not on the agenda must relate to the subject matter jurisdiction of this legislative body. If a member of the public attending the meeting remotely violates the Brown Act by failing to comply with these requirements of the Brown Act, then that speaker will be muted.
ANNOUNCEMENTS (Estimated time - 5 min)
A. City Administrator Announcements
B. City Attorney Announcements
C. Councilmember Announcements
PUBLIC HEARINGS
1. Resolution 2025-053 Adopting the Fiscal Year 2025-2026 Appropriations Limit (Estimated time - 10 min)
2. Resolution 2025-052 Adopting the Fiscal Year 2025-2026 Annual Operating and Capital Budget (Estimated time - 60 min)
3. First reading and introduction of Ordinance No. 2025-002 amending Carmel Municipal Code Section 15.08.010 and Section 15.10.020 to adopt the 2025 Fire Hazard Severity Zone Map for the City as identified by the California State Fire Marshall in Accordance with Government Code Section 51178 (Estimated time - 45 min)
4. First reading and introduction of Ordinance No. 2025-003 Adding Section 2.52.686 – (Paid Parental Leave) to the Carmel-by-the-Sea Municipal Code (Estimated time - 20 min)
ORDERS OF BUSINESS
Orders of Business are agenda items that require City Council, Board or Commission discussion, debate, direction to staff, and/or action.
5. Resolution 2025-054 approving a 4.19% percent rate increase to charges by the City’s franchised hauler, GreenWaste Recovery, for the collection of solid waste, recycling and organics, effective July 1, 2025, and approving Amendment No. 4 to the Memorandum of Understanding between ReGen Monterey and Member Agencies for Fiscal Year 2025/26 (Estimated time - 30 min)
FUTURE AGENDA ITEMS
CLOSED SESSION
A. CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO
GOVERNMENT CODE SECTION 54957.6
Agency Designated Representatives:
City Administrator Chip Rerig
Assistant City Administrator Brandon Swanson
City Attorney Brian Pierik
Senior HR Analyst Marisa Bermudez
Police Chief Paul Tomasi
Police Commander Todd Trayer
Employee Organization: Police Officers Association (POA) PUBLIC COMMENT - Limited to Closed Session item(s)
ADJOURNMENT
2. Correspondence Received After Agenda Posting
3. Presentations received after agenda posting
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).
PROCLAMATION OF THE CITY COUNCIL OF THE CITY OF
CARMEL-BY-THE-SEA RECOGNIZING JUNE 2025 AS LGBTQ
PRIDE MONTH
WHEREAS, many cities across the United States recognize June as Lesbian, Gay, Bisexual, Transgender and Queer Pride Month, in commemoration of the Stonewall riots in June of 1969 and to celebrate the progress that has been made for LGBTQ rights; and WHEREAS, continued discrimination against LGBTQ persons makes it important for cities to stand up and show solidarity and support for our LGBTQ residents and those in the community at large; and
WHEREAS, the City of Carmel-by-the-Sea has a diverse Lesbian, Gay, Bisexual, Transgender and Queer community and is committed to celebrating and supporting visibility, dignity and equality for all people in the community; and WHEREAS, The City of Carmel-by-the-Sea has a long and proud history of celebrating diversity, promoting inclusion and defending civil rights both within our community and outside of our community; and
WHEREAS, it is of great importance to respect one another and appreciate our differences.
NOW, THEREFORE, BE IT PROCLAIMED THAT I, Dale Byrne, Mayor of the City of Carmel-by-the-Sea, on behalf of the City Council and the citizens of Carmel hereby proclaim June 2025 as LGBTQ Pride Month.
IN WITNESS WHEREOF, I have hereunto set my hand this 3rd day of June, 2025, in Carmel-by-the-Sea, California.
______________________________
Dale Byrne, Mayor
Attachment 1
CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
Staff Report
June 3, 2025
EXTRAORDINARY BUSINESS
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Marisa Bermudez, Sr. Human Resources Analyst APPROVED BY: Chip Rerig, City Administrator
SUBJECT:
Receive an information report on the City of Carmel-by-the-Sea Vacancies Pursuant to Government Code Section 3502.3 (AB 2561) (Estimated time - 5 min) RECOMMENDATION:
Receive an information report on the City of Carmel-by-the-Sea Vacancies Pursuant to Government Code Section 3502.3 (AB 2561).
BACKGROUND/SUMMARY:
California State Assembly Bill AB 2561 (Attachment 1), codified in Government Code Section 3502.3 and approved on September 22, 2024, requires public agencies to present the status of their vacancies in a public hearing before their governing body at least once per fiscal year prior to the adoption of the upcoming final budget.
This report is presented to comply with Government Code 3502.3. If the number of job vacancies within a single bargaining unit meets or exceeds 20% of the total number of authorized full-time positions, the City must, upon request of the recognized employee organization, to provide additional specified information during the public hearing. As shown in the table below, the City’s represented bargaining units – General Unit, Management Unit, Police Officers Association Unit – have a vacancy rate below 10% and therefore not currently subject to this requirement.
Bargaining Unit
# of Budgeted
FTE's
# of
Vacancies
% of
Vacancies
General LiUNA 33 3 9.1%
Management LiUNA 11 1 9.1%
Police Officers
Association 22 2 9.1%
TOTAL 66 6 9.1% (avg)
Of the six vacancies, half are due to recent retirements, voluntary resignations, and internal promotion. One vacancy is currently under departmental review as part of an active recruitment. The City anticipates initiating recruitment for all vacant positions in the coming months, with the expectation that recruitments will conclude during summer 2025.
In accordance with AB 2561, the City must also identify any changes to policies, procedures, or recruitment activities that impact the City’s efforts to reduce its vacancies. Over the past year, the Human Resources Department has streamlined its recruitment procedures by working closely with hiring managers and, when needed, engaging our external recruiting consultant. These improvements have accelerated the application review process, interview scheduling, and conditional job offer stages. As a result of these efforts, the City’s successfully hired 22 new employees over the last 12 months.
While recruitment and retention continue to be challenges faced by many public agencies, the City’s recent adjustments, combined with salary alignments to market median levels, have enhanced our competitiveness and reduced turnover.
The City remains committed to ongoing evaluation and refinement of its policies and procedures to ensure continued success in minimizing vacancies and maintaining high employee retention.
FISCAL IMPACT:
This public hearing is held for informational purposes. There are no proposed changes for the FY 2025/2026 Recommended Budget.
PRIOR CITY COUNCIL ACTION:
N/A
ATTACHMENTS:
Attachment 1) AB 2561
SHARE THIS: Date Published: 09/23/2024 09:00 PM
AB-2561 Local public employees: vacant positions. (2023-2024) Assembly Bill No. 2561
CHAPTER 409
An act to add Section 3502.3 to the Government Code, relating to public employment. [ Approved by Governor September 22, 2024. Filed with Secretary of State September 22, 2024. ]
LEGISLATIVE COUNSEL'S DIGEST
AB 2561, McKinnor. Local public employees: vacant positions.
Existing law, the Meyers-Milias-Brown Act (act), authorizes local public employees, as defined, to form, join, and participate in the activities of employee organizations of their own choosing for the purpose of representation on matters of labor relations. The act requires the governing body of a public agency to meet and confer in good faith regarding wages, hours, and other terms and conditions of employment with representatives of recognized employee organizations and to consider fully presentations that are made by the employee organization on behalf of its members before arriving at a determination of policy or course of action.
This bill would, as specified, require a public agency to present the status of vacancies and recruitment and retention efforts at a public hearing at least once per fiscal year, and would entitle the recognized employee organization to present at the hearing. If the number of job vacancies within a single bargaining unit meets or exceeds 20% of the total number of authorized full-time positions, the bill would require the public agency, upon request of the recognized employee organization, to include specified information during the public hearing. By imposing new duties on local public agencies, the bill would impose a state-mandated local program. The bill would also include related legislative findings.
The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.
This bill would make legislative findings to that effect.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement shall be made pursuant to these statutory provisions for costs mandated by the state pursuant to this act, but would recognize that a local agency or school district may pursue any available remedies to seek reimbursement for these costs.
Vote: majority Appropriation: no Fiscal Committee: yes Local Program: yes Home Bill Information California Law Publications Other Resources My Subscriptions My Favorites 5/27/25, 3:00 PM Bill Text - AB-2561 Local public employees: vacant positions. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240AB2561 1/3 Attachment 1
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares as follows:
(a) Job vacancies in local government are a widespread and significant problem for the public sector affecting occupations across wage levels and educational requirements. (b) High job vacancies impact public service delivery and the workers who are forced to handle heavier workloads, with understaffing leading to burnout and increased turnover that further exacerbate staffing challenges.
(c) There is a statewide interest in ensuring that public agency operations are appropriately staffed and that high vacancy rates do not undermine public employee labor relations.
SEC. 2. Section 3502.3 is added to the Government Code, to read:
3502.3. (a) (1) A public agency shall present the status of vacancies and recruitment and retention efforts during a public hearing before the governing board at least once per fiscal year. (2) If the governing board will be adopting an annual or multiyear budget during the fiscal year, the presentation shall be made prior to the adoption of the final budget. (3) During the hearing, the public agency shall identify any necessary changes to policies, procedures, and recruitment activities that may lead to obstacles in the hiring process. (b) The recognized employee organization for a bargaining unit shall be entitled to make a presentation at the public hearing at which the public agency presents the status of vacancies and recruitment and retention efforts for positions within that bargaining unit.
(c) If the number of job vacancies within a single bargaining unit meets or exceeds 20 percent of the total number of authorized full-time positions, the public agency shall, upon request of the recognized employee organization, include all of the following information during the public hearing:
(1) The total number of job vacancies within the bargaining unit. (2) The total number of applicants for vacant positions within the bargaining unit. (3) The average number of days to complete the hiring process from when a position is posted. (4) Opportunities to improve compensation and other working conditions. (d) This section shall not prevent the governing board from holding additional public hearings about vacancies. (e) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(f) For purposes of this section, “recognized employee organization” has the same meaning as defined in subdivision (a) of Section 3501.
SEC. 3. The Legislature finds and declares that Section 2 of this act, which adds Section 3502.3 to the Government Code, furthers, within the meaning of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the purposes of that constitutional section as it relates to the right of public access to the meetings of local public bodies or the writings of local public officials and local agencies. Pursuant to paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the Legislature makes the following findings:
It is in the public interest, and it furthers the purposes of paragraph (7) of subdivision (b) of Section (3) of Article I of the California Constitution, to ensure that information concerning public agency employment is available to the public.
SEC. 4. No reimbursement shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code for costs mandated by the state pursuant to this act. It is recognized, however, that a local agency or school district may pursue any remedies to obtain reimbursement available to it under Part 7 (commencing with Section 17500) and any other law.
5/27/25, 3:00 PM Bill Text - AB-2561 Local public employees: vacant positions. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240AB2561 2/3 Attachment 1
5/27/25, 3:00 PM Bill Text - AB-2561 Local public employees: vacant positions. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240AB2561 3/3 Attachment 1
CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
Staff Report
June 3, 2025
PUBLIC HEARINGS
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Jayme Fields, Finance Manager
APPROVED BY: Chip Rerig, City Administrator
SUBJECT:
Resolution 2025-053 Adopting the Fiscal Year 2025-2026 Appropriations Limit (Estimated time - 10 min)
RECOMMENDATION:
Adopt the Fiscal Year 2025-2026 Appropriations Limit
BACKGROUND/SUMMARY:
The State Constitution (Article XII IB) places a limit on the amount of monies that a governmental entity is able to spend based upon projected tax revenues. In accordance with State law, the government entity must adopt an annual appropriations limit. This limit is calculated using a prescribed methodology outlined by the State. The limit is adjusted by the change in the cost of living and the change in population, using the California Department of Finance figures.
In calculating the appropriations limit, the City Council has the option to use either the change in per capita income or the percentage change in the local assessment roll. In addition, the Council may either use the change in population within the City or within the County. For consistency purposes, staff recommends using the California per capita personal income of 6.44% and the population growth for the City of Carmel by the Sea of -.23%. The Department of Finance uses a formula that converts the percent change in income and population growth into a ratio and thus the adjustment factors for calculating the GANN limit are
1.0644 for income and .9977 for population growth.
These adjustment factors are applied to the current fiscal year (Fiscal Year 2024-2025) GANN limit in order to determine the appropriation limit for the upcoming fiscal year (Fiscal Year 2025-2026). Using this formula, the City’s appropriation limit for Fiscal Year 2025-2026 is $45,081,158. The appropriations subject to the GANN limit is $29,884,344; thus, the City is well within its GANN limit.
FISCAL IMPACT:
The appropriation limit for fiscal year 2025-2026 is based upon budgeted revenues for property tax, sales tax, transient occupancy tax, motor vehicle in lieu and business license tax. Together, these revenues are budgeted at $29,884,344.
PRIOR CITY COUNCIL ACTION:
Council adopted the Fiscal Year 2024-2025 Appropriations Limit on June 4, 2024.
ATTACHMENTS:
Attachment 1) Resolution 2025-053 Adopting FY 25-26 GANN Limit Attachment 2) DOF Price and Population 2025
CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
RESOLUTION NO. 2025-053
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA ADOPTING THE FISCAL YEAR 2025-2026 APPROPRIATIONS LIMIT WHEREAS, under Article XIIIB of the State Constitution, public agencies are required to annually establish maximum appropriations limits referred to as the Gann limit (Limit); and WHEREAS, since fiscal year 1991, the City is permitted to adjust its Limit in accordance with inflation and population adjustment factors; and
WHEREAS, the annual adjustment factors that were selected to calculate the Fiscal Year 2025-2026 Limit were the California per capita personal income adjustment factor of 1.0644 and the Carmel by the Sea population growth factor of .9977; and WHEREAS, in accordance with California Government Code Section 7910, a notice of the public hearing was published in the Carmel Pine Cone on May 16, 2025; the documentation used in determining the Limit has been made available to the general public for fifteen days prior to the date of the adoption; and Council conducted a public hearing on the Limit on June 3, 2025; and WHEREAS, the City may not appropriate any proceeds of taxes in excess of its Limit.
NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES HEREBY:
1. Adopts the final calculation of the Appropriation Limit for Fiscal Year 2025-2026 as $45,081,158, which is attached hereto as Exhibit A.
2. Certifies the Fiscal Year 2025-2026 Adopted Appropriations Subject-To-Limit of $29,884,344 does not exceed the Gann limit, which is attached hereto as Exhibits A and B respectively.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BYTHE-SEA this 3rd day of June 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED: ATTEST:
________________________ _________________________
Dave Byrne Nova Romero
Mayor City Clerk
Attachment 1
Attachment 1
Attachment 1
May 2025
Dear Fiscal Officer:
Subject: Price Factor and Population Information
Appropriations Limit
California Revenue and Taxation Code Section 2227 requires the Department of Finance to transmit an estimate of the percentage change in population to local governments. Each local jurisdiction must use their percentage change in population factor for January 1, 2025, in conjunction with a change in the cost of living, or price factor, to calculate their appropriations limit for fiscal year 2025-26. Attachment A provides the change in California’s per capita personal income and an example for utilizing the price factor and population percentage change factor to calculate the 2025-26 appropriations limit. Attachment B provides the city and unincorporated county population percentage change along with the population percentage change for counties and their summed incorporated areas. The population percentage change data excludes federal and state institutionalized populations and military populations.
Population Percent Change for Special Districts
Some special districts must establish an annual appropriations limit. California Revenue and Taxation Code Section 2228 provides additional information regarding the appropriations limit.
Article XIII B, Section 9(C) of the California Constitution exempts certain special districts from the appropriations limit calculation mandate. The code section and the California Constitution can be accessed at the following website: http://leginfo.legislature.ca.gov/faces/codes.xhtml.
Special districts required by law to calculate their appropriations limit must present the calculation as part of their annual audit. Any questions special districts have on this requirement should be directed to their county, district legal counsel, or the law itself. No state agency reviews the local appropriations limits.
Population Certification
The population certification program applies only to cities and counties. California Revenue and Taxation Code Section 11005.6 mandates Finance to automatically certify any population estimate that exceeds the current certified population with the State Controller’s Office. Finance will certify the higher estimate to the State Controller by June 1, 2025.
Please Note: The prior year’s city population estimates may be revised. The per capita personal income change is based on historical data.
If you have any questions regarding this data, please contact the Demographic Research Unit at (916) 323-4086.
JOE STEPHENSHAW
Director
By:
ERIKA LI
Chief Deputy Director
Attachment
Attachment 2
May 2025
Attachment A
A. Price Factor: Article XIII B specifies that local jurisdictions select their cost of living factor to compute their appropriation limit by a vote of their governing body. The cost of living factor provided here is per capita personal income. If the percentage change in per capita personal income is selected, the percentage change to be used in setting the fiscal year 2025-26 appropriation limit is:
Per Capita Personal Income
Fiscal Year Percentage change
(FY) over prior year
2025-26 6.44
B. Following is an example using sample population change and the change in California per capita personal income as growth factors in computing a 2025-26 appropriation limit.
2025-26:
Per Capita Cost of Living Change = 6.44 percent
Population Change = 0.28 percent
Per Capita Cost of Living converted to a ratio: 6.44 + 100 = 1.0644 100
Population converted to a ratio: 0.28 + 100 = 1.0028
100
Calculation of factor for FY 2025-26: 1.0644 x 1.0028 = 1.0674
Attachment 2
FISCAL YEAR 2025-26 About the Data
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2024 to January 1, 2025 and Total Population January 1, 2025 City County Percent Change 24-25
Population Minus
Exclusions 1-1-24
Population Minus
Exclusions 1-1-25 Total Population 1-1-25
Alameda City Alameda -0.22 78,406 78,236 79,020
Albany City Alameda 0.28 20,520 20,578 20,578
Berkeley City Alameda 1.32 126,676 128,348 128,348
Dublin City Alameda 2.17 72,462 74,031 74,691
Emeryville City Alameda -0.28 13,509 13,471 13,471
Fremont City Alameda 0.16 232,241 232,619 232,619
Hayward City Alameda 0.24 161,977 162,359 162,359
Livermore City Alameda -0.23 86,094 85,899 85,899
Newark City Alameda 1.04 48,382 48,886 48,886
Oakland City Alameda 0.52 424,015 426,237 426,457
Piedmont City Alameda -0.28 10,836 10,806 10,806
Pleasanton City Alameda -0.38 77,526 77,232 77,232
San Leandro City Alameda -0.35 88,124 87,813 87,813
Union City Alameda -0.36 66,898 66,657 66,657
Balance of County Alameda -0.27 147,978 147,579 147,646 Incorporated Alameda 0.37 1,507,666 1,513,172 1,514,836 County Total Alameda 0.31 1,655,644 1,660,751 1,662,482 Balance of County Alpine -0.42 1,181 1,176 1,177
County Total Alpine -0.42 1,181 1,176 1,177
Amador City Amador -0.51 197 196 196
Ione City Amador -0.19 5,173 5,163 9,037
Jackson City Amador -1.69 4,905 4,822 4,822
Plymouth City Amador 1.17 1,109 1,122 1,122
Sutter Creek City Amador -1.63 2,580 2,538 2,538
Balance of County Amador -1.63 22,167 21,805 21,848
Incorporated Amador -0.88 13,964 13,841 17,715
County Total Amador -1.34 36,131 35,646 39,563
Biggs City Butte -1.25 1,998 1,973 1,973
Chico City Butte 2.59 110,971 113,847 113,847
Gridley City Butte -1.10 7,383 7,302 7,302
Oroville City Butte 2.25 19,221 19,653 19,653
Paradise Town Butte 7.83 10,283 11,088 11,088
Balance of County Butte -7.51 58,017 53,662 53,662
Incorporated Butte 2.67 149,856 153,863 153,863
County Total Butte -0.17 207,873 207,525 207,525
Angels City Calaveras -0.42 3,585 3,570 3,570
Balance of County Calaveras -0.21 41,183 41,096 41,152
Incorporated Calaveras -0.42 3,585 3,570 3,570
County Total Calaveras -0.23 44,768 44,666 44,722
Colusa City Colusa -0.18 6,548 6,536 6,536
Williams City Colusa -0.48 5,616 5,589 5,589
Balance of County Colusa -0.28 9,929 9,901 9,901
Incorporated Colusa -0.32 12,164 12,125 12,125
County Total Colusa -0.30 22,093 22,026 22,026
Antioch City Contra Costa 0.52 116,177 116,781 116,781
Brentwood City Contra Costa 0.60 65,353 65,747 65,747
Clayton City Contra Costa -0.46 10,793 10,743 10,743
Concord City Contra Costa -0.34 123,074 122,650 122,650 Danville Town Contra Costa -0.16 43,030 42,960 42,960
El Cerrito City Contra Costa -0.31 25,943 25,862 25,862 Hercules City Contra Costa -0.50 26,357 26,225 26,225
Lafayette City Contra Costa -0.08 25,073 25,054 25,054
Martinez City Contra Costa -0.15 36,871 36,817 36,817
Moraga City Contra Costa -1.98 16,973 16,637 16,637
Oakley City Contra Costa 1.32 46,218 46,826 46,826
Orinda City Contra Costa -0.23 19,395 19,351 19,351
Pinole City Contra Costa -0.45 18,344 18,261 18,261
Pittsburg City Contra Costa 0.64 75,887 76,374 76,374
Pleasant Hill City Contra Costa -0.28 33,694 33,601 33,601 Richmond City Contra Costa -0.24 113,872 113,594 113,594 San Pablo City Contra Costa 0.18 31,450 31,507 31,507
San Ramon City Contra Costa 0.18 83,245 83,391 83,391
Walnut Creek City Contra Costa -0.44 70,238 69,927 69,927 Balance of County Contra Costa -0.20 176,178 175,833 175,917 Incorporated Contra Costa 0.03 981,987 982,308 982,308
County Total Contra Costa 0.00 1,158,165 1,158,141 1,158,225 Crescent City Del Norte -0.69 4,064 4,036 6,056
Balance of County Del Norte -1.44 20,738 20,439 20,488
Incorporated Del Norte -0.69 4,064 4,036 6,056
County Total Del Norte -1.32 24,802 24,475 26,544
Placerville City El Dorado 0.14 10,617 10,632 10,642
South Lake Tahoe City El Dorado -0.05 21,033 21,022 21,022 Balance of County El Dorado 0.09 158,862 159,009 159,106 Incorporated El Dorado 0.01 31,650 31,654 31,664
County Total El Dorado 0.08 190,512 190,663 190,770
Clovis City Fresno 1.13 127,674 129,121 129,121
Coalinga City Fresno 0.00 13,419 13,419 17,608
Firebaugh City Fresno 2.40 8,510 8,714 8,714
Fowler City Fresno 3.11 7,436 7,667 7,667
Fresno City Fresno 0.77 552,416 556,690 557,032
Huron City Fresno 7.96 6,421 6,932 6,932
Kerman City Fresno 0.76 17,403 17,535 17,535
Kingsburg City Fresno 0.90 13,167 13,285 13,285
Attachment 2
Mendota City Fresno 0.89 12,598 12,710 12,710
Orange Cove City Fresno 0.99 9,622 9,717 9,717
Parlier City Fresno 0.78 14,535 14,649 14,649
Reedley City Fresno 2.52 25,950 26,603 26,603
Sanger City Fresno 1.44 26,652 27,037 27,037
San Joaquin City Fresno 0.03 3,653 3,654 3,654
Selma City Fresno 0.40 24,487 24,585 24,585
Balance of County Fresno 0.17 158,883 159,148 160,204
Incorporated Fresno 0.97 863,943 872,318 876,849
County Total Fresno 0.84 1,022,826 1,031,466 1,037,053
Orland City Glenn 1.17 8,603 8,704 8,704
Willows City Glenn 1.62 6,372 6,475 6,475
Balance of County Glenn 1.33 14,004 14,190 14,190
Incorporated Glenn 1.36 14,975 15,179 15,179
County Total Glenn 1.35 28,979 29,369 29,369
Arcata City Humboldt 1.66 18,691 19,001 19,001
Blue Lake City Humboldt -0.70 1,144 1,136 1,136
Eureka City Humboldt 0.00 25,966 25,967 26,122
Ferndale City Humboldt -0.44 1,367 1,361 1,361
Fortuna City Humboldt -0.38 12,245 12,198 12,198
Rio Dell City Humboldt -0.71 3,255 3,232 3,232
Trinidad City Humboldt -0.67 298 296 296
Balance of County Humboldt -0.73 70,625 70,107 70,471
Incorporated Humboldt 0.36 62,966 63,191 63,346
County Total Humboldt -0.22 133,591 133,298 133,817
Brawley City Imperial 0.84 28,710 28,952 28,952
Calexico City Imperial 0.78 39,762 40,073 40,073
Calipatria City Imperial 0.69 3,646 3,671 6,061
El Centro City Imperial 1.12 45,456 45,966 46,007
Holtville City Imperial 0.57 5,653 5,685 5,685
Imperial City Imperial 1.98 22,422 22,866 22,866
Westmorland City Imperial 0.39 2,076 2,084 2,084
Balance of County Imperial 0.59 31,371 31,557 34,771
Incorporated Imperial 1.06 147,725 149,297 151,728
County Total Imperial 0.98 179,096 180,854 186,499
Bishop City Inyo -0.10 3,854 3,850 3,850
Balance of County Inyo -0.31 14,938 14,892 14,950
Incorporated Inyo -0.10 3,854 3,850 3,850
County Total Inyo -0.27 18,792 18,742 18,800
Arvin City Kern 0.99 19,796 19,991 19,991
Bakersfield City Kern 1.16 414,451 419,238 419,238
California City Kern 0.97 13,189 13,317 13,317
Delano City Kern 1.15 46,036 46,566 52,831
Maricopa City Kern 0.59 1,018 1,024 1,024
McFarland City Kern 2.24 13,902 14,213 14,213
Ridgecrest City Kern 0.25 27,664 27,732 28,386
Shafter City Kern 4.72 22,356 23,412 23,455
Taft City Kern -0.03 7,089 7,087 7,087
Tehachapi City Kern 0.64 9,372 9,432 11,476
Wasco City Kern -2.55 23,447 22,850 26,235
Balance of County Kern 0.05 304,188 304,351 306,708
Incorporated Kern 1.09 598,320 604,862 617,253
County Total Kern 0.74 902,508 909,213 923,961
Avenal City Kings 1.07 9,431 9,532 13,315
Corcoran City Kings 0.88 13,547 13,666 21,612
Hanford City Kings 2.31 59,856 61,238 61,238
Lemoore City Kings 2.10 27,122 27,692 27,692
Balance of County Kings 1.45 25,135 25,500 30,158
Incorporated Kings 1.98 109,956 112,128 123,857
County Total Kings 1.88 135,091 137,628 154,015
Clearlake City Lake 1.01 16,367 16,533 16,533
Lakeport City Lake -0.85 5,069 5,026 5,026
Balance of County Lake -0.61 45,889 45,607 45,695
Incorporated Lake 0.57 21,436 21,559 21,559
County Total Lake -0.24 67,325 67,166 67,254
Susanville City Lassen 1.90 9,199 9,374 12,270
Balance of County Lassen 1.77 14,802 15,064 16,446
Incorporated Lassen 1.90 9,199 9,374 12,270
County Total Lassen 1.82 24,001 24,438 28,716
Agoura Hills City Los Angeles -0.18 19,940 19,904 19,904 Alhambra City Los Angeles 0.22 82,176 82,353 82,374
Arcadia City Los Angeles 0.13 56,044 56,116 56,116
Artesia City Los Angeles 1.33 16,060 16,273 16,359
Avalon City Los Angeles -0.12 3,387 3,383 3,383
Azusa City Los Angeles -1.50 49,736 48,988 48,988
Baldwin Park City Los Angeles 0.23 70,685 70,848 70,848 Bell City Los Angeles -0.15 33,366 33,315 33,315
Bellflower City Los Angeles -0.32 76,902 76,656 76,656
Bell Gardens City Los Angeles 0.09 38,438 38,471 38,471 Beverly Hills City Los Angeles -0.12 31,984 31,945 31,945 Bradbury City Los Angeles 0.78 895 902 902
Burbank City Los Angeles 0.29 105,842 106,146 106,146
Calabasas City Los Angeles -0.26 22,856 22,797 22,797
Carson City Los Angeles 0.07 91,745 91,808 91,812
Cerritos City Los Angeles -0.28 48,005 47,871 47,871
Claremont City Los Angeles -0.02 37,305 37,299 37,299
Commerce City Los Angeles -0.32 12,185 12,146 12,146
Compton City Los Angeles -0.01 93,699 93,692 93,692
Covina City Los Angeles 0.92 50,625 51,090 51,090
Cudahy City Los Angeles -0.34 22,208 22,132 22,132
Attachment 2
Culver City Los Angeles 0.16 40,340 40,403 40,403
Diamond Bar City Los Angeles -0.07 53,577 53,539 53,539 Downey City Los Angeles -0.02 111,891 111,871 111,871
Duarte City Los Angeles -0.22 23,798 23,746 23,746
El Monte City Los Angeles 0.82 107,056 107,938 107,986
El Segundo City Los Angeles -0.11 16,976 16,958 16,983
Gardena City Los Angeles 0.14 60,176 60,263 60,263
Glendale City Los Angeles 0.26 191,706 192,212 192,212
Glendora City Los Angeles -0.07 51,289 51,254 51,254
Hawaiian Gardens City Los Angeles 0.07 13,552 13,561 13,561 Hawthorne City Los Angeles -0.25 85,868 85,653 85,653
Hermosa Beach City Los Angeles -0.22 19,055 19,014 19,014 Hidden Hills City Los Angeles 0.23 1,742 1,746 1,746
Huntington Park City Los Angeles -0.32 53,213 53,041 53,051 Industry City Los Angeles -0.23 432 431 431
Inglewood City Los Angeles -0.29 106,617 106,305 106,305 Irwindale City Los Angeles -0.07 1,510 1,509 1,509
La Canada Flintridge City Los Angeles 0.05 20,149 20,160 20,160 La Habra Heights City Los Angeles -0.13 5,510 5,503 5,503 Lakewood City Los Angeles 0.10 80,517 80,596 80,596
La Mirada City Los Angeles -0.17 48,315 48,233 48,233
Lancaster City Los Angeles 1.62 170,661 173,424 177,768 La Puente City Los Angeles 0.10 37,508 37,546 37,546
La Verne City Los Angeles 0.59 32,111 32,300 32,300
Lawndale City Los Angeles -0.20 30,921 30,860 30,860
Lomita City Los Angeles 0.04 20,398 20,407 20,407
Long Beach City Los Angeles 0.44 460,230 462,246 462,561 Los Angeles City Los Angeles 0.44 3,813,575 3,830,479 3,835,263 Lynwood City Los Angeles 0.45 66,360 66,660 66,660
Malibu City Los Angeles -0.18 10,623 10,604 10,604
Manhattan Beach City Los Angeles -0.18 34,111 34,051 34,051 Maywood City Los Angeles -0.25 24,557 24,496 24,496
Monrovia City Los Angeles 1.94 38,181 38,920 38,920
Montebello City Los Angeles 0.79 62,243 62,732 62,732
Monterey Park City Los Angeles -0.13 59,342 59,262 59,269 Norwalk City Los Angeles -0.32 100,585 100,265 101,075
Palmdale City Los Angeles 0.31 166,580 167,097 167,097
Palos Verdes Estates City Los Angeles -0.12 13,014 12,999 12,999 Paramount City Los Angeles -0.08 52,415 52,371 52,371
Pasadena City Los Angeles 0.41 140,054 140,631 140,631
Pico Rivera City Los Angeles 0.00 60,859 60,858 60,858
Pomona City Los Angeles 0.68 152,005 153,042 153,042
Rancho Palos Verdes City Los Angeles -0.25 40,831 40,727 40,727 Redondo Beach City Los Angeles -0.33 68,319 68,091 68,091 Rolling Hills City Los Angeles 0.24 1,673 1,677 1,677
Rolling Hills Estates City Los Angeles -0.14 8,557 8,545 8,545 Rosemead City Los Angeles 0.41 50,296 50,501 50,501
San Dimas City Los Angeles -0.05 34,226 34,209 34,209
San Fernando City Los Angeles 0.62 23,546 23,692 23,692 San Gabriel City Los Angeles 1.00 38,569 38,953 38,953
San Marino City Los Angeles -0.09 12,341 12,330 12,330
Santa Clarita City Los Angeles 0.35 231,573 232,377 232,377 Santa Fe Springs City Los Angeles 0.90 18,341 18,506 18,680 Santa Monica City Los Angeles 0.19 93,034 93,212 93,212 Sierra Madre City Los Angeles -0.30 10,903 10,870 10,870 Signal Hill City Los Angeles -0.31 11,457 11,421 11,421 South El Monte City Los Angeles -0.02 19,538 19,535 19,535 South Gate City Los Angeles 0.08 92,883 92,955 92,955
South Pasadena City Los Angeles 0.06 26,272 26,287 26,287 Temple City Los Angeles 0.70 36,069 36,322 36,322
Torrance City Los Angeles -0.10 143,410 143,261 143,261 Vernon City Los Angeles -0.48 208 207 207
Walnut City Los Angeles 0.74 28,008 28,214 28,214
West Covina City Los Angeles -0.21 109,657 109,428 109,428 West Hollywood City Los Angeles 0.10 35,250 35,284 35,284 Westlake Village City Los Angeles -0.31 7,943 7,918 7,918 Whittier City Los Angeles 0.03 87,820 87,850 87,850
Balance of County Los Angeles 0.18 1,001,862 1,003,674 1,004,490 Incorporated Los Angeles 0.31 8,834,429 8,861,693 8,872,321 County Total Los Angeles 0.30 9,836,291 9,865,367 9,876,811 Chowchilla City Madera -1.64 13,729 13,504 18,742
Madera City Madera -0.85 67,013 66,443 66,443
Balance of County Madera 2.24 75,718 77,414 77,414
Incorporated Madera -0.98 80,742 79,947 85,185
County Total Madera 0.58 156,460 157,361 162,599
Belvedere City Marin 0.29 2,052 2,058 2,058
Corte Madera City Marin 0.09 9,947 9,956 9,966
Fairfax City Marin 0.09 7,400 7,407 7,407
Larkspur City Marin -0.15 12,750 12,731 12,731
Mill Valley City Marin 0.07 13,679 13,688 13,688
Novato City Marin 0.22 51,372 51,486 51,690
Ross City Marin 0.83 2,290 2,309 2,309
San Anselmo City Marin 0.26 12,519 12,551 12,551
San Rafael City Marin -0.05 59,917 59,885 59,885
Sausalito City Marin 0.07 6,936 6,941 6,941
Tiburon Town Marin 0.18 8,894 8,910 8,910
Balance of County Marin 0.29 63,257 63,441 66,414
Incorporated Marin 0.09 187,756 187,922 188,136
County Total Marin 0.14 251,013 251,363 254,550
Balance of County Mariposa -0.21 16,897 16,861 16,917
Attachment 2
County Total Mariposa -0.21 16,897 16,861 16,917
Fort Bragg City Mendocino -0.10 7,194 7,187 7,187
Point Arena City Mendocino 1.57 445 452 452
Ukiah City Mendocino 0.60 16,227 16,325 16,325
Willits City Mendocino -0.31 4,853 4,838 4,838
Balance of County Mendocino -0.09 61,031 60,975 61,025
Incorporated Mendocino 0.29 28,719 28,802 28,802
County Total Mendocino 0.03 89,750 89,777 89,827
Atwater City Merced -0.18 31,921 31,862 31,862
Dos Palos City Merced -0.28 5,728 5,712 5,712
Gustine City Merced -0.23 6,035 6,021 6,021
Livingston City Merced -0.07 14,451 14,441 14,441
Los Banos City Merced 1.42 48,213 48,896 48,896
Merced City Merced 5.26 93,138 98,039 98,039
Balance of County Merced -4.65 91,101 86,861 88,109
Incorporated Merced 2.75 199,486 204,971 204,971
County Total Merced 0.43 290,587 291,832 293,080
Alturas City Modoc -0.19 2,662 2,657 2,657
Balance of County Modoc -0.22 5,847 5,834 5,834
Incorporated Modoc -0.19 2,662 2,657 2,657
County Total Modoc -0.21 8,509 8,491 8,491
Mammoth Lakes Town Mono -1.47 7,145 7,040 7,040
Balance of County Mono -1.75 5,647 5,548 5,644
Incorporated Mono -1.47 7,145 7,040 7,040
County Total Mono -1.59 12,792 12,588 12,684
Carmel-by-the-Sea City Monterey -0.23 3,056 3,049 3,049 Del Rey Oaks City Monterey -0.32 1,551 1,546 1,546
Gonzales City Monterey -0.30 8,459 8,434 8,434
Greenfield City Monterey 1.18 20,543 20,785 20,785
King City Monterey 1.09 14,189 14,344 14,344
Marina City Monterey 1.12 22,831 23,086 23,086
Monterey City Monterey -0.33 24,282 24,202 27,273
Pacific Grove City Monterey -0.43 14,935 14,871 14,871
Salinas City Monterey -0.24 161,039 160,645 160,645
Sand City Monterey -0.27 374 373 373
Seaside City Monterey 1.35 26,367 26,724 32,019
Soledad City Monterey 1.80 20,005 20,366 27,310
Balance of County Monterey -0.14 105,111 104,962 105,096 Incorporated Monterey 0.25 317,631 318,425 333,735
County Total Monterey 0.15 422,742 423,387 438,831
American Canyon City Napa 2.94 21,757 22,396 22,396
Calistoga City Napa -0.41 5,181 5,160 5,160
Napa City Napa 0.28 77,520 77,736 77,736
St Helena City Napa -0.13 5,356 5,349 5,349
Yountville City Napa -0.54 2,056 2,045 2,638
Balance of County Napa -0.30 21,840 21,775 22,845
Incorporated Napa 0.73 111,870 112,686 113,279
County Total Napa 0.56 133,710 134,461 136,124
Grass Valley City Nevada -0.72 13,461 13,364 13,364
Nevada City Nevada -0.86 3,365 3,336 3,336
Truckee Town Nevada 0.03 16,923 16,928 16,928
Balance of County Nevada -0.63 67,092 66,667 66,726
Incorporated Nevada -0.36 33,749 33,628 33,628
County Total Nevada -0.54 100,841 100,295 100,354
Aliso Viejo City Orange -0.45 50,442 50,213 50,213
Anaheim City Orange -0.08 341,967 341,686 341,773
Brea City Orange -0.42 48,101 47,900 47,900
Buena Park City Orange -0.13 82,772 82,667 82,667
Costa Mesa City Orange 0.25 110,048 110,321 110,321
Cypress City Orange -0.13 49,563 49,499 49,499
Dana Point City Orange -0.37 32,850 32,730 32,730
Fountain Valley City Orange -0.09 56,612 56,560 56,560
Fullerton City Orange -0.31 141,909 141,469 141,469
Garden Grove City Orange 0.12 171,260 171,470 171,492
Huntington Beach City Orange -0.19 193,510 193,134 193,134 Irvine City Orange 0.79 316,119 318,629 318,629
Laguna Beach City Orange 0.02 22,759 22,763 22,763
Laguna Hills City Orange -0.41 30,435 30,309 30,309
Laguna Niguel City Orange 0.65 64,834 65,257 65,257
Laguna Woods City Orange -0.46 17,262 17,183 17,183
La Habra City Orange -0.06 61,236 61,202 61,202
Lake Forest City Orange 0.10 87,553 87,639 87,639
La Palma City Orange -0.44 15,177 15,110 15,110
Los Alamitos City Orange -0.32 12,044 12,006 12,006
Mission Viejo City Orange -0.28 91,993 91,740 91,740
Newport Beach City Orange -0.41 82,995 82,654 82,654
Orange City Orange 0.95 138,403 139,724 139,724
Placentia City Orange 2.52 52,653 53,982 53,982
Rancho Santa Margarita City Orange -0.46 46,553 46,341 46,341 San Clemente City Orange -0.35 63,085 62,865 62,865
San Juan Capistrano City Orange 0.23 35,247 35,329 35,329 Santa Ana City Orange 0.68 313,210 315,325 315,325
Seal Beach City Orange -0.47 24,439 24,325 24,400
Stanton City Orange -0.06 40,576 40,552 40,552
Tustin City Orange -0.15 79,449 79,326 79,326
Villa Park City Orange -0.21 5,750 5,738 5,738
Westminster City Orange 0.13 90,181 90,295 90,295
Yorba Linda City Orange -0.46 66,573 66,267 66,267
Balance of County Orange 0.54 132,313 133,023 133,033
Incorporated Orange 0.15 3,037,560 3,042,210 3,042,394
Attachment 2
County Total Orange 0.17 3,169,873 3,175,233 3,175,427
Auburn City Placer -1.27 13,457 13,286 13,286
Colfax City Placer -1.48 2,026 1,996 1,996
Lincoln City Placer 0.65 54,167 54,520 54,520
Loomis Town Placer -0.59 6,729 6,689 6,689
Rocklin City Placer 0.28 72,967 73,172 73,172
Roseville City Placer 0.76 157,304 158,494 158,494
Balance of County Placer -0.44 113,786 113,289 113,289
Incorporated Placer 0.49 306,650 308,157 308,157
County Total Placer 0.24 420,436 421,446 421,446
Portola City Plumas -0.94 2,118 2,098 2,098
Balance of County Plumas 0.62 16,684 16,787 16,787
Incorporated Plumas -0.94 2,118 2,098 2,098
County Total Plumas 0.44 18,802 18,885 18,885
Banning City Riverside -0.37 32,068 31,949 31,949
Beaumont City Riverside 1.78 58,665 59,708 59,708
Blythe City Riverside -0.95 12,593 12,473 15,400
Calimesa City Riverside -0.79 11,082 10,994 10,994
Canyon Lake City Riverside -0.74 11,086 11,004 11,004
Cathedral City Riverside -0.67 51,962 51,615 51,651
Coachella City Riverside 0.76 44,050 44,384 44,384
Corona City Riverside -0.32 159,667 159,157 159,157
Desert Hot Springs City Riverside 0.02 33,255 33,262 33,262 Eastvale City Riverside -0.68 70,274 69,799 69,799
Hemet City Riverside 0.20 91,751 91,934 91,934
Indian Wells City Riverside 0.06 4,859 4,862 4,862
Indio City Riverside -0.17 92,693 92,539 92,539
Jurupa Valley City Riverside -0.90 106,830 105,870 105,928 Lake Elsinore City Riverside 0.97 72,934 73,638 73,783
La Quinta City Riverside -0.90 39,148 38,796 38,796
Menifee City Riverside 1.30 113,837 115,316 115,316
Moreno Valley City Riverside -0.27 211,389 210,823 210,823 Murrieta City Riverside 0.44 111,299 111,789 111,789
Norco City Riverside -0.63 22,563 22,421 25,221
Palm Desert City Riverside 0.04 51,961 51,980 51,980
Palm Springs City Riverside -0.63 44,760 44,476 44,476
Perris City Riverside 0.36 80,947 81,240 81,240
Rancho Mirage City Riverside -0.62 17,227 17,120 17,120 Riverside City Riverside -0.37 321,479 320,278 320,337
San Jacinto City Riverside 0.10 54,936 54,990 54,990
Temecula City Riverside 1.19 110,898 112,220 112,220
Wildomar City Riverside 0.05 37,060 37,077 37,077
Balance of County Riverside 1.53 411,338 417,646 417,901 Incorporated Riverside 0.02 2,071,273 2,071,714 2,077,739 County Total Riverside 0.27 2,482,611 2,489,360 2,495,640 Citrus Heights City Sacramento -0.43 86,655 86,280 86,280 Elk Grove City Sacramento 1.24 180,599 182,842 182,842
Folsom City Sacramento 3.69 84,416 87,532 92,577
Galt City Sacramento 1.38 25,738 26,092 26,092
Isleton City Sacramento -0.65 769 764 764
Rancho Cordova City Sacramento 3.16 82,837 85,451 85,451 Sacramento City Sacramento 0.31 526,327 527,979 527,979 Balance of County Sacramento -0.26 604,360 602,760 602,760 Incorporated Sacramento 0.97 987,341 996,940 1,001,985
County Total Sacramento 0.50 1,591,701 1,599,700 1,604,745 Hollister City San Benito 0.51 43,272 43,492 43,492
San Juan Bautista City San Benito -0.81 2,095 2,078 2,078 Balance of County San Benito 0.50 21,147 21,252 21,252
Incorporated San Benito 0.45 45,367 45,570 45,570
County Total San Benito 0.46 66,514 66,822 66,822
Adelanto City San Bernardino 1.42 36,629 37,150 37,150
Apple Valley Town San Bernardino -0.11 75,339 75,255 75,262 Barstow City San Bernardino -0.55 24,634 24,498 24,811
Big Bear Lake City San Bernardino -0.48 4,977 4,953 4,953 Chino City San Bernardino 1.76 90,123 91,712 95,206
Chino Hills City San Bernardino -0.18 77,452 77,314 77,314 Colton City San Bernardino -0.42 53,505 53,278 53,278
Fontana City San Bernardino 0.96 217,084 219,172 219,172 Grand Terrace City San Bernardino -0.51 12,868 12,803 12,803 Hesperia City San Bernardino 0.54 101,248 101,792 101,792 Highland City San Bernardino 1.16 56,436 57,088 57,088
Loma Linda City San Bernardino -0.19 25,323 25,276 25,322 Montclair City San Bernardino -0.38 37,670 37,526 37,526 Needles City San Bernardino -0.54 4,817 4,791 4,791
Ontario City San Bernardino 0.84 182,875 184,404 184,404 Rancho Cucamonga City San Bernardino 0.44 175,227 175,992 175,992 Redlands City San Bernardino 0.10 73,416 73,488 73,488
Rialto City San Bernardino 1.09 104,426 105,565 105,565 San Bernardino City San Bernardino 0.08 221,218 221,387 222,727 Twentynine Palms City San Bernardino 7.84 14,775 15,934 24,257 Upland City San Bernardino -0.23 79,326 79,140 79,140
Victorville City San Bernardino 0.49 135,981 136,652 141,013 Yucaipa City San Bernardino 0.51 54,561 54,838 54,838
Yucca Valley Town San Bernardino 0.03 22,021 22,027 22,027 Balance of County San Bernardino -0.22 290,454 289,811 297,505 Incorporated San Bernardino 0.54 1,881,931 1,892,035 1,909,919 County Total San Bernardino 0.44 2,172,385 2,181,846 2,207,424 Carlsbad City San Diego -0.24 116,652 116,368 116,368
Chula Vista City San Diego 0.19 280,590 281,137 281,401 Coronado City San Diego -0.41 17,471 17,400 22,610
Attachment 2
Del Mar City San Diego 0.05 3,948 3,950 3,950
El Cajon City San Diego -0.47 105,429 104,932 104,932
Encinitas City San Diego 0.17 61,851 61,956 61,956
Escondido City San Diego -0.63 151,386 150,425 150,425
Imperial Beach City San Diego -0.35 26,462 26,369 26,369 La Mesa City San Diego -0.27 61,072 60,908 60,908
Lemon Grove City San Diego 0.93 27,903 28,163 28,163
National City San Diego 0.07 56,900 56,941 58,965
Oceanside City San Diego 0.44 173,569 174,340 174,340
Poway City San Diego 0.86 49,948 50,379 50,379
San Diego City San Diego 1.15 1,378,448 1,394,234 1,408,937 San Marcos City San Diego -0.14 97,261 97,123 97,123
Santee City San Diego -0.60 59,928 59,568 59,568
Solana Beach City San Diego -0.52 13,054 12,986 12,986
Vista City San Diego -0.14 101,740 101,599 101,599
Balance of County San Diego -0.19 470,041 469,135 509,160 Incorporated San Diego 0.54 2,783,612 2,798,778 2,820,979 County Total San Diego 0.44 3,253,653 3,267,913 3,330,139 San Francisco City San Francisco -0.39 844,789 841,467 842,027 Incorporated San Francisco -0.39 844,789 841,467 842,027 County Total San Francisco -0.39 844,789 841,467 842,027 Escalon City San Joaquin -1.43 7,337 7,232 7,232
Lathrop City San Joaquin 4.03 37,102 38,596 38,596
Lodi City San Joaquin -0.25 67,262 67,093 67,093
Manteca City San Joaquin 1.76 92,116 93,733 93,733
Mountain House City San Joaquin 0.00 28,795 28,795
Ripon City San Joaquin -1.33 15,966 15,753 15,753
Stockton City San Joaquin -0.77 323,325 320,847 320,877 Tracy City San Joaquin 0.73 97,501 98,215 98,215
Balance of County San Joaquin -16.29 159,392 133,422 135,562 Incorporated San Joaquin 4.63 640,609 670,264 670,294
County Total San Joaquin 0.46 800,001 803,686 805,856
Arroyo Grande City San Luis Obispo -0.64 18,025 17,910 17,910 Atascadero City San Luis Obispo -0.72 29,305 29,093 30,134 El Paso de Robles City San Luis Obispo 0.24 30,988 31,061 31,061 Grover Beach City San Luis Obispo -0.35 12,455 12,411 12,411 Morro Bay City San Luis Obispo 0.00 10,404 10,404 10,404 Pismo Beach City San Luis Obispo -0.69 7,858 7,804 7,804 San Luis Obispo City San Luis Obispo 1.52 48,791 49,534 49,534 Balance of County San Luis Obispo -0.61 118,580 117,852 120,079 Incorporated San Luis Obispo 0.25 157,826 158,217 159,258 County Total San Luis Obispo -0.12 276,406 276,069 279,337 Atherton Town San Mateo -0.33 7,030 7,007 7,007
Belmont City San Mateo 3.90 27,146 28,206 28,206
Brisbane City San Mateo -0.51 4,700 4,676 4,676
Burlingame City San Mateo 2.55 30,768 31,552 31,552
Colma Town San Mateo -0.70 1,421 1,411 1,411
Daly City San Mateo -0.16 102,315 102,155 102,155
East Palo Alto City San Mateo -0.65 29,325 29,133 29,133 Foster City San Mateo -0.60 32,856 32,658 32,658
Half Moon Bay City San Mateo -0.26 11,333 11,303 11,303 Hillsborough Town San Mateo 0.38 11,211 11,254 11,254
Menlo Park City San Mateo -0.35 33,291 33,175 33,311
Millbrae City San Mateo -0.53 23,288 23,164 23,164
Pacifica City San Mateo -0.41 37,365 37,212 37,217
Portola Valley Town San Mateo -0.02 4,286 4,285 4,285
Redwood City San Mateo -0.57 82,546 82,073 82,073
San Bruno City San Mateo 0.29 42,507 42,631 42,631
San Carlos City San Mateo -0.45 29,669 29,535 29,535
San Mateo City San Mateo 0.09 104,221 104,315 104,315
South San Francisco City San Mateo 0.39 65,146 65,397 65,397 Woodside Town San Mateo 0.58 5,176 5,206 5,206
Balance of County San Mateo -0.32 62,047 61,848 61,848
Incorporated San Mateo 0.11 685,600 686,348 686,489
County Total San Mateo 0.07 747,647 748,196 748,337
Buellton City Santa Barbara 2.23 4,980 5,091 5,091
Carpinteria City Santa Barbara 0.09 12,723 12,735 12,735 Goleta City Santa Barbara 0.45 32,601 32,747 32,747
Guadalupe City Santa Barbara 1.81 8,694 8,851 8,851
Lompoc City Santa Barbara 0.05 40,518 40,538 43,424
Santa Barbara City Santa Barbara 0.31 86,159 86,422 86,451 Santa Maria City Santa Barbara 1.19 110,885 112,208 112,208 Solvang City Santa Barbara 0.47 5,728 5,755 5,755
Balance of County Santa Barbara 0.52 136,287 136,992 139,870 Incorporated Santa Barbara 0.68 302,288 304,347 307,262 County Total Santa Barbara 0.63 438,575 441,339 447,132 Campbell City Santa Clara -0.22 43,377 43,281 43,281
Cupertino City Santa Clara -0.09 59,887 59,831 59,831
Gilroy City Santa Clara 1.10 61,402 62,076 62,205
Los Altos City Santa Clara 0.62 31,523 31,720 31,720
Los Altos Hills Town Santa Clara 0.33 8,520 8,548 8,548 Los Gatos Town Santa Clara -0.43 33,500 33,355 33,355
Milpitas City Santa Clara -0.59 82,401 81,915 81,915
Monte Sereno City Santa Clara 0.66 3,613 3,637 3,637
Morgan Hill City Santa Clara 0.06 46,573 46,599 46,599
Mountain View City Santa Clara -0.19 86,674 86,513 86,513 Palo Alto City Santa Clara 0.31 68,550 68,763 68,794
San Jose City Santa Clara -0.08 980,174 979,415 979,415 Santa Clara City Santa Clara 0.57 133,829 134,587 134,587 Saratoga City Santa Clara 0.29 31,020 31,110 31,110
Attachment 2
Sunnyvale City Santa Clara 0.46 158,948 159,673 159,673 Balance of County Santa Clara -0.21 90,602 90,412 91,076 Incorporated Santa Clara 0.06 1,829,991 1,831,023 1,831,183 County Total Santa Clara 0.04 1,920,593 1,921,435 1,922,259 Capitola City Santa Cruz -0.35 9,704 9,670 9,670
Santa Cruz City Santa Cruz 0.18 62,861 62,972 62,972
Scotts Valley City Santa Cruz -0.04 11,836 11,831 11,831 Watsonville City Santa Cruz 0.47 50,860 51,101 51,101
Balance of County Santa Cruz -0.04 128,130 128,079 128,136 Incorporated Santa Cruz 0.23 135,261 135,574 135,574
County Total Santa Cruz 0.10 263,391 263,653 263,710
Anderson City Shasta -0.73 11,048 10,967 10,967
Redding City Shasta 0.09 93,330 93,413 93,534
Shasta Lake City Shasta -0.74 10,209 10,133 10,133
Balance of County Shasta -0.49 65,836 65,514 65,567
Incorporated Shasta -0.06 114,587 114,513 114,634
County Total Shasta -0.22 180,423 180,027 180,201
Loyalton City Sierra -0.27 732 730 730
Balance of County Sierra -0.20 2,445 2,440 2,440
Incorporated Sierra -0.27 732 730 730
County Total Sierra -0.22 3,177 3,170 3,170
Dorris City Siskiyou -0.84 837 830 830
Dunsmuir City Siskiyou -0.91 1,643 1,628 1,628
Etna City Siskiyou -0.75 667 662 662
Fort Jones City Siskiyou -0.75 668 663 663
Montague City Siskiyou -0.42 1,200 1,195 1,195
Mount Shasta City Siskiyou -0.72 3,202 3,179 3,179
Tulelake City Siskiyou -0.82 858 851 851
Weed City Siskiyou 0.30 2,708 2,716 2,716
Yreka City Siskiyou 0.64 7,829 7,879 7,879
Balance of County Siskiyou -0.49 23,772 23,656 23,708
Incorporated Siskiyou -0.05 19,612 19,603 19,603
County Total Siskiyou -0.29 43,384 43,259 43,311
Benicia City Solano -0.58 26,347 26,195 26,195
Dixon City Solano 2.89 19,608 20,174 20,174
Fairfield City Solano -0.07 116,199 116,112 120,720
Rio Vista City Solano 1.78 10,157 10,338 10,338
Suisun City Solano -0.13 29,074 29,036 29,036
Vacaville City Solano 0.04 97,347 97,382 103,181
Vallejo City Solano -0.48 122,791 122,207 122,207
Balance of County Solano -0.27 17,285 17,238 17,988
Incorporated Solano -0.02 421,523 421,444 431,851
County Total Solano -0.03 438,808 438,682 449,839
Cloverdale City Sonoma -0.97 8,763 8,678 8,678
Cotati City Sonoma -0.86 7,353 7,290 7,290
Healdsburg City Sonoma -0.35 11,010 10,972 10,972
Petaluma City Sonoma 0.40 58,858 59,094 59,094
Rohnert Park City Sonoma -0.06 44,089 44,062 44,062
Santa Rosa City Sonoma 0.80 177,043 178,452 178,452
Sebastopol City Sonoma 0.40 7,338 7,367 7,367
Sonoma City Sonoma -0.83 10,595 10,507 10,507
Windsor Town Sonoma -0.17 25,669 25,625 25,625
Balance of County Sonoma -0.46 130,591 129,985 130,801
Incorporated Sonoma 0.38 350,718 352,047 352,047
County Total Sonoma 0.15 481,309 482,032 482,848
Ceres City Stanislaus -0.35 49,480 49,305 49,305
Hughson City Stanislaus 2.26 7,801 7,977 7,977
Modesto City Stanislaus 0.03 219,705 219,765 219,765
Newman City Stanislaus 1.05 12,260 12,389 12,389
Oakdale City Stanislaus 0.28 23,167 23,231 23,231
Patterson City Stanislaus 3.57 24,977 25,868 25,868
Riverbank City Stanislaus 3.16 25,290 26,090 26,090
Turlock City Stanislaus 0.31 71,997 72,219 72,219
Waterford City Stanislaus 0.09 9,161 9,169 9,169
Balance of County Stanislaus -0.02 109,776 109,752 109,752 Incorporated Stanislaus 0.49 443,838 446,013 446,013
County Total Stanislaus 0.39 553,614 555,765 555,765
Live Oak City Sutter 0.58 9,602 9,658 9,658
Yuba City Sutter 0.96 69,781 70,453 70,453
Balance of County Sutter 0.49 20,048 20,146 20,146
Incorporated Sutter 0.92 79,383 80,111 80,111
County Total Sutter 0.83 99,431 100,257 100,257
Corning City Tehama 1.30 8,162 8,268 8,268
Red Bluff City Tehama 0.11 14,450 14,466 14,466
Tehama City Tehama 0.23 427 428 428
Balance of County Tehama -0.41 41,702 41,532 41,665
Incorporated Tehama 0.53 23,039 23,162 23,162
County Total Tehama -0.07 64,741 64,694 64,827
Balance of County Trinity -0.16 15,850 15,825 15,884
County Total Trinity -0.16 15,850 15,825 15,884
Dinuba City Tulare 0.67 25,852 26,025 26,025
Exeter City Tulare -0.19 10,252 10,233 10,233
Farmersville City Tulare -0.29 10,422 10,392 10,392
Lindsay City Tulare -0.07 12,734 12,725 12,725
Porterville City Tulare 0.04 63,427 63,455 63,622
Tulare City Tulare 2.02 71,557 73,002 73,002
Visalia City Tulare 0.69 145,714 146,722 146,978
Woodlake City Tulare 2.72 7,793 8,005 8,005
Balance of County Tulare 0.54 135,452 136,180 136,227
Incorporated Tulare 0.81 347,751 350,559 350,982
Attachment 2
County Total Tulare 0.73 483,203 486,739 487,209
Sonora City Tuolumne -0.74 5,154 5,116 5,116
Balance of County Tuolumne -0.27 46,963 46,836 49,241
Incorporated Tuolumne -0.74 5,154 5,116 5,116
County Total Tuolumne -0.32 52,117 51,952 54,357
Camarillo City Ventura -0.78 69,467 68,927 68,927
Fillmore City Ventura -0.35 17,095 17,035 17,035
Moorpark City Ventura -0.77 35,023 34,754 34,754
Ojai City Ventura 0.04 7,556 7,559 7,559
Oxnard City Ventura 0.18 198,384 198,733 198,733
Port Hueneme City Ventura -0.81 19,024 18,870 20,838
San Buenaventura (Ventura) City Ventura 0.58 108,304 108,930 108,985 Santa Paula City Ventura 0.47 31,511 31,658 31,658
Simi Valley City Ventura 0.00 124,640 124,645 124,815
Thousand Oaks City Ventura -0.73 123,372 122,468 122,468 Balance of County Ventura 1.49 90,070 91,416 93,233
Incorporated Ventura -0.11 734,376 733,579 735,772
County Total Ventura 0.07 824,446 824,995 829,005
Davis City Yolo -0.43 65,708 65,423 65,423
West Sacramento City Yolo 0.85 54,938 55,403 55,403
Winters City Yolo 4.14 7,702 8,021 8,021
Woodland City Yolo 0.35 61,406 61,623 61,623
Balance of County Yolo 1.83 34,334 34,963 34,963
Incorporated Yolo 0.38 189,754 190,470 190,470
County Total Yolo 0.60 224,088 225,433 225,433
Marysville City Yuba -0.84 12,825 12,717 12,717
Wheatland City Yuba 2.29 3,922 4,012 4,012
Balance of County Yuba 0.57 65,454 65,828 68,294
Incorporated Yuba -0.11 16,747 16,729 16,729
County Total Yuba 0.43 82,201 82,557 85,023
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.
Attachment 2
CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
Staff Report
June 3, 2025
PUBLIC HEARINGS
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Jayme Fields, Finance Manager
APPROVED BY: Chip Rerig, City Administrator
SUBJECT:
Resolution 2025-052 Adopting the Fiscal Year 2025-2026 Annual Operating and Capital Budget (Estimated time - 60 min)
RECOMMENDATION:
Adopt Resolution 2025-052 Adopting the Fiscal Year 2025-2026 Annual Operating and Capital Budget.
BACKGROUND/SUMMARY:
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 $39.8 million is submitted for Council’s consideration. The proposed expenditures totaling $39.8 million, include the General Fund operating budget ($28.8 million), debt service ($509,100), pension unfunded liability ($2.7 million),and capital budget ($7.8 million). The proposed revenues totaling $34.9 million include property taxes ($9.2 million), sales tax ($10.4 million), transient occupancy tax ($9.1 million), and other revenue ($3.2 million). The FY 25-26 Recommended Budget requires the use of $4.9 million in prior years’ savings ("unassigned fund balance") specifically to fund deferred Capital projects.
The total fund balance is estimated to end the current FY 24-25 at $40.6 million which includes all restricted, reserves and unassigned funds. Unassigned fund balance is estimated to be $14 million of that.
As the economy remains unpredictable, the City remains cautious and anticipates a conservative increase in revenues for FY 25-26. Conversely, 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 million with a -6.75 decrease to FTE over prior FY for a budgeted 90.5 total FTE total. Six of the decrease in FTE were due to the newAmbulance contract with the City of Monterey.
Pension costs of approximately $2.7 million. Additionally, the City will restrict $1 million by transferring funds into the City’s established Section 115 Trust.
Services and supplies costs of approximately $10.7 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. $7.8 million for capital projects and vehicle and equipment purchases in the following categories:
forest/beach/parks ($2.4 million), streets/sidewalks ($1.1 million), facilities ($1.7 million), drainage ($350,000), IT ($90,000), fleet ($1.1 million), and CIP Contingency ($500,000). NOTE: At the May 21st budget workshop, Council made minor cuts to the draft CIP as detailed below, so the original $7.8M list has stayed largely intact. As part of the staff presentation on June 3rd, Council will receive the same list of CIP projects, with a handful of them highlighted as options for the Council to consider if they wish to reduce the FY25/26 CIP. Staff will be prepared to provide rationale for each item that is highlighted as a potential cut from the FY 25/26 CIP.
$509,100 for debt service payments.
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 presented a detailed review of the budget, and received questions and feedback from both the public and Council. At the direction of Council at the budget workshop, the Recommended Budget was updated to remove two Library CIP projects from FY25-26. Those projects were Library Master Plan Administration and UV Film replacement for HML windows. Devendorf Park Improvements and Rio/Junipero Median Enhancements were also both reduced at the direction of Council. With respect to the operating budget, and Council's new policy of capping operating expenses at 10% of revenues, Council made no further cuts to operating expenditures and directed using approximately $500K of fund balance to meet the 10% goal. Additionally, the Recommended Budget Book has been revised to reflect updates to the Capital Improvement Plan narratives and Table: FY 25-26 Capital Projects (see Attachment 2) and the Question & Answer report has been updated for questions received since it was published for the May 21 meeting (see Attachment 3).
FISCAL IMPACT:
The FY 24-25 Recommended Budget totals $39,829,800 and uses $4,915,000 in prior years’ savings ("unassigned fund balance") largely to fund capital projects.
PRIOR CITY COUNCIL ACTION:
Council received a presentation regarding the 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. Council held a FY 25-26 budget workshop on May 21, 2025.
ATTACHMENTS:
Attachment 1) Resolution 2025-052
Attachment 2) Proposed FY 25-26 Budget Book
Attachment 3) Questions and Answers - updated
CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
RESOLUTION NO. 2025-052
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA ADOPTING THE FISCAL YEAR 2025-2026 ANNUAL OPERATING AND CAPITAL BUDGET WHEREAS, on January 13, 2025, the City Council of the City of Carmel-by-the-Sea adopted the budget schedule for Fiscal Year 2025-2026 in accordance with Carmel Municipal Code Section 3.060.020; and
WHEREAS, the City Council held public meetings on the proposed Fiscal Year 2025-2026 capital projects and Five-Year Capital Improvement Program on March 24, 2025 and May 21, 2025; and
WHEREAS, in accordance with Section 3.06.020 of the Carmel Municipal Code and Section 65103 of the State Government Code, the City’s Planning Commission will hold a hearing on June 11, 2025 and will determine whether the Capital Improvement Program is consistent with the City’s General Plan; and
WHEREAS, the City Council has received and completed its review of the proposed Fiscal Year 2025-2026 Operating and Capital Improvement Program Budgets during the budget hearing held on May 21, 2025 and gave general direction on the recommendations contained therein during a public meeting; and
WHEREAS, the City Council held a public hearing on June 3, 2025 for consideration of adoption of the proposed Fiscal Year 2025-2026 Operating and Capital Budget; and WHEREAS the City’s budget totals $39,829,800 for Fiscal Year 2025-2026 consisting of appropriations, inter-fund transfers, General Fund expenditures of $31,486,700, Capital expenditures of $7,834,000 (Capital Projects and Vehicle and Equipment Funds), and Debt Service expenditures of $509,100.
WHEREAS the City’s budgeted revenue totals $34,915,081 for Fiscal Year 2025-2026.
WHEREAS, in accordance with Carmel Municipal Code Section 3.06.010, the City Council shall adopt a budget for expenditures and anticipated revenues prior to the beginning of the fiscal year and the City Council now desires to adopt the Operating and Capital Budgets for Fiscal Year 2025-2026.
NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES HEREBY:
Authorize the City Administrator to make ministerial changes to budgeted transfers and adjust appropriations to or from designated funds for Fiscal Year 2024-2025 as necessary as part of the fiscal year-end process on June 30, 2025.
Approves and adopts the City of Carmel-by-the-Sea’s Fiscal Year 2025-2026 Recommended Operating Budget and Capital Improvement Program Budget.
Authorize the City Administrator to make ministerial changes to budgeted transfers and adjust appropriations to or from designated funds as necessary during Fiscal Year 2025-2026.
Attachment 1
Resolution No. 2025-052
Directs that a copy of the adopted budget, signed by the Mayor and attested to by the City Clerk, shall be kept on file with the City Clerk of the City of Carmel-by-the-Sea as the official budget of the City of Carmel-by-the-Sea for Fiscal Year 2025-2026.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BYTHE-SEA this 3rd day of June, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED: ATTEST:
_________________________ _________________________
Dale Byrne Nova Romero
Mayor City Clerk
Attachment 1
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 2
CITY LEADERSHIP
DALE BYRNE,
MAYOR
BOB DELVES,
MAYOR PRO TEMPORE
JEFF BARON,
COUNCILMEMBER
HANS BUDER,
COUNCILMEMBER
ALISSANDRA DRAMOV,
COUNCILMEMBER
CHIP RERIG,
CITY ADMINISTRATOR
Attachment 2
Table of Contents
INTRODUCTION ..................................................................................................................... 4 BUDGET MESSAGE ............................................................................................................ 5 REVENUE ............................................................................................................................ 9 EXPENDITURES ................................................................................................................13 FY25-26 AUTHORIZED POSITIONS.................................................................................16 ORGANIZATIONAL CHART ..............................................................................................18 OPERATING BUDGET...........................................................................................................20 CITY COUNCIL ..................................................................................................................21 CITY ATTORNEY ...............................................................................................................23 ADMINISTRATION ............................................................................................................24 CITYWIDE (NON-DEPARTMENTAL)...............................................................................31 ECONOMIC DEVELOPMENT ...........................................................................................32 LIBRARY AND COMMUNITY ACTIVITIES .....................................................................34 COMMUNITY PLANNING AND BUILDING ...................................................................38 PUBLIC WORKS .................................................................................................................42 PUBLIC SAFETY ................................................................................................................52 CAPITAL IMPROVEMENT PLAN (CIP) ...............................................................................58 OTHER FUNDS ......................................................................................................................72 PROJECTED FUND BALANCES ..........................................................................................76 FINANCIAL POLICIES ..........................................................................................................78 Attachment 2
INTRODUCTION
Attachment 2
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 Attachment 2
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 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 $4,914,719. Using this amount will consume roughly 35% of our current year unassigned fund balances, the remainder of which will continue to be saved.
Attachment 2
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 $7.8 million of capital project expenditures. Operating expenditures represent 91.6% of budgeted revenues, which is $572 thousand in excess of the 90% budgetary guideline. Capital Project expenditures represent 20% of budgeted revenues, which is $4.3 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 small decrease in the number of City staff. 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 only .75 FTE is being eliminated from the entire workforce, after accounting for the 6 ambulance FTE that are being transferred to the City of Monterey, but this number does not reflect the full story. 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. While the total number of FTEs has remained relatively unchanged, the net result of these changes is an increase in salary expense as compensation for the new positions exceeds the positions eliminated.
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 30 CIP projects and 9 Vehicle and Equipment projects, the combined total CIP investment for new projects would be $7,834,000 – 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.
Attachment 2
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 7,834,000
FY25-26 Proposed Expenditures $39,829,800
Use of Fund Balance for Capital Projects $4,914,719
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
Attachment 2
REVENUE
The FY 25-26 Budget includes $34.9 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
Attachment 2
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 $2.7 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.
Attachment 2
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.
Attachment 2
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
Attachment 2
EXPENDITURES
The FY 25-26 Budget totals $39.8 million, which consists of the following:
▪ Operating Budget, or General Fund, totals $31.4 million, or 79%, of the citywide budget ▪ Debt service totals $509,100, or 1% of the citywide budget ▪ Capital outlay, including Capital Improvement Projects ($6.6 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 7,834,000
Debt Service 509,100
Total $39,829,800
Salaries & Benefits,
37%
Outside Services,
27%
Other Expenditures,
8%
Pension, 7%
Capital Outlay, 20%
Debt Service, 1%
FY 25-26 Expenditure by Type
Attachment 2
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 economic development 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 $7.8 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 28% of the budget. The Public Works Department is the next largest operating expenditure at 14% followed by Citywide at 12% of the budget, as it includes the City’s unfunded actuarial pension liability. In total, Administration, Council, Planning, Legal, Economic Development (including the Sunset Center), and Library and Community Activities represent the remaining 26% of the budget expenditures.
Attachment 2
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 7,834,000 20%
Total $39,829,800 100%
Administration
9%
Citywide
12%
Council1% Legal
1%
Planning
6%
Ambulance
6%
Fire
9%
Police
14%
Economic Dev
3%
Community Activities
4%
Public Works 14%
Debt
1%
Capital
20%
Workers Comp
0%
FY 25-26 Expenditures by Function
Attachment 2
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
Attachment 2
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
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
Environmental 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
Forestry 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
Attachment 2
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
Attachment 2
Attachment 2
OPERATING BUDGET
GENERAL FUND - 101
(CITY DEPARTMENTS AND SERVICES)
Attachment 2
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.
Attachment 2
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
Attachment 2
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
Attachment 2
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.
Attachment 2
▪ 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.
Attachment 2
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 21,000 101-111-00-42015 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 $1,091,330 Total $3,409,232 $3,081,726 $3,755,017
Attachment 2
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.
Attachment 2
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 Attachment 2
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 Attachment 2
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 Attachment 2
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 again in July of 2025, 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 15,000 101-130-00-42509 Citywide Mailing costs 0 0 24,845
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 $4,687,943
Attachment 2
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, Attachment 2
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 $237,981, 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 226,297 226,297 237,981
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 $1,167,981
Attachment 2
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.
Attachment 2
▪ 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
Attachment 2
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.
Attachment 2
▪ 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
101-121-00-41003 Salaries -Part time 0 0 28,649
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
101-121-00-41105 Social Security 0 0 1,776
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 $117,430
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 $246,400
Attachment 2
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.
Attachment 2
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.
Attachment 2
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 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.
Attachment 2
Community Planning & Building: Planning
Account Number Account Description FY24-25
Amended
Budget
FY24-25
Estimated
Actual
FY25-26
Recommended
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
Recommended
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
Attachment 2
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
Attachment 2
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.
Attachment 2
▪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.
Attachment 2
▪ 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.
Attachment 2
▪ 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
▪ Construct four of the Carmel Beach Coastal Protection and Access Improvements Projects
Attachment 2
▪ 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.
Attachment 2
BUDGET SUMMARY AND SERVICE IMPACT
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 39,520 101-119-00-49999 Contra Salaries and Benefits - - (295,000) Salaries & Benefits Subtotal $3,701,609 $3,010,602 $3,657,793 101-119-00-42001 Contract Services $2,416,862 $916,213 $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 $1,245,492 $1,898,235 Total $6,538,001 $4,256,095 $5,556,028
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).
PW Administration
Attachment 2
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) which in turn includes mutt mitts ($30,000), asphalt, sidewalk pavers, and traffic paint. Street Maintenance costs also include 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.
PW Facilities
Attachment 2
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 ($188,200), 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.
Environmental Compliance costs also include 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
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 $289,069 $545,340 101-119-45-42105 Materials and Supplies 82,200 63,062 98,475 Services & Supplies Subtotal $1,511,400 $352,131 $643,815 Attachment 2
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
Attachment 2
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.
Attachment 2
▪ 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.
Attachment 2
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
Attachment 2
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).
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
Attachment 2
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 ($48,000). Other major expenses include medical supplies ($48,000), fuel and vehicle maintenance ($21,000 and $70,000 respectively), safety equipment ($17,500).
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
Attachment 2
DEBT SERVICE – FUND 401
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
Attachment 2
CAPITAL IMPROVEMENT PLAN (CIP)
Attachment 2
CAPITAL IMPROVEMENT PLAN
The FY 25-26 Budget includes $7.8 million for capital projects. This level of capital spending represents 20% of the total citywide budget of $39.8 million and requires the use of $4.9 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. As the City continues street repairs through the summer, finishing the projects that were budgeted in the FY 24-25 year, it is again budgeting for street repairs in the coming budget year FY 25-26. Streets account for 14% of budgeted capital expense, with a proposed budget of $1.1 million, largely funded by revenues the City receives specifically for street maintenance and other transportation-related projects. In addition to a continued emphasis on Streets, the City is budgeting significant expenditures of $2.4 million or 30% of budgeted capital for Forest, Parks and Beach. The FY 25-26 Budget also recognizes the importance of facility investments including $1.7 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
14%
Drainage
5%
Facilities
22%
Forest/Park/
Beach
30%
Planning
4%
Contingency
6%
Project
Management
4%
IT
1%
Fleet
14%
FY 25-26 CIP Funding by Category
Attachment 2
Drainage projects reach $350,000 or 4% 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 control on the Del Mar and Volleyball Dunes. These areas are crucial for both recreational Attachment 2
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 insufficient wireless infrastructure, providing better coverage, faster speeds, and improved Attachment 2
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 30 new projects for a total of $6.6 million.
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
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 Retaining Walls Construction 450,000 Facilities Sunset Center Yoga Center Reroof 50,000
Forest/Park/Beach Rio and Junipero Ave Median Enhancements 25,000 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 35,000
Forest/Park/Beach Sand Ramp at Eighth Avenue 275,000
Forest/Park/Beach Scenic Pathway Enhancements 100,000
Planning Planning ODDS element 200,000
Planning CEQA MTNP CFMP 70,000
Project Mgmt Staff Time 295,000
Contingency CIP Contingency 500,000
Total New CIP $6,624,000
Attachment 2
STREETS
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.
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.
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 Attachment 2
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:
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 Attachment 2
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)
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.
Attachment 2
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 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.
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.
Attachment 2
FOREST, PARKS AND BEACH
Rio and Junipero Ave Median Enhancements ($25,000)
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.
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.
Attachment 2
Devendorf Park Improvements ($35,000)
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.
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.
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.
Attachment 2
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 Attachment 2
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
Attachment 2
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
Attachment 2
OTHER FUNDS
Attachment 2
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 Attachment 2
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.
Attachment 2
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.
Attachment 2
PROJECTED FUND BALANCES
Attachment 2
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 (6,624,000) 6,624,000 3,893,235 Unassigned funds 101 General Fund 14,153,262 (12,725,713) 6,467,116 7,894,665 $40,569,730 ($4,914,719) $0 $35,655,011 Projected Fund Balances June 30, 2025
Projected Fund Balances June 30, 2026
Attachment 2
FINANCIAL POLICIES
Attachment 2
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.
Attachment 2
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.
Attachment 2
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;
Attachment 2
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.
Attachment 2
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 Attachment 2
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.
Attachment 2
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.
Attachment 2
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.
Attachment 2
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, Attachment 2
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.
Attachment 2
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.
Attachment 2
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.
Attachment 2
Fund Department Division
101 General Fund 110 City Council 10 Administration
102 Hostelry Tax 111 City Administration 11 City Clerk
201 Gas Tax 112 City Attorney 12 Finance
202 Transportation Safety 115 Community Planning & Building 13 Human Resources 203 COPS Grant 116 Police 14 Information Technology
204 Parking in Lieu 117 Fire 20 Planning
205 Asset Seizure 118 Ambulance 21 Building
206 Local Measure Sales Tax 119 Public Works 22 Code Enforcement 301 Capital Projects 120 Library 40 Public Works Admin
401 Debt Service 121 Community Activities 41 Streets
501 Worker's Compensation 122 Economic Revitalization 42 Facilities 502 OPEB Reserve Fund 130 Non-Departmental 43 Environmental 503 Vehicle & Equipment Fund 135 Hostelry Tax 44 Project Management 211 Gas Tax 45 Forestry, Parks & Beach
212 Transportation Safety
213 COPS Grant
214 Parking in Lieu
215 Asset Seizure
216 Local Measure Sales Tax
311 Capital Projects
411 Debt Service
511 Worker's Compensation
512 OPEB Reserve Fund
513 Vehicle & Equipment Fund
Attachment 2
Fiscal Year 2025-2026 Budget
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 3
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 3
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 3
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 Attachment.
Attachment 3
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 3
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 3
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 3
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 3
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 3
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 3
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.
Attachment 3
Question & Answer Subsequent to Budget Workshop
44. Could a discussion of Carmel's current reserve policy or goals, including the risks caused by these practices, be included in the budget narrative? In particular, please characterize the risk associated with Carmel's lack of reserves for deferred maintenance and climate/resilience.
As outlined in the budget document, the City has adopted a simplified set of budgetary guidelines and a new, consolidated reserve for uncertainties.
The policy now states that a reserve of 50% of operating expenditure shall be maintained. This reserve is to be available to cushion the impact on operations of the volatile nature of the City's revenues. The new budget guidelines further seek to focus on reserves and capital maintenance by capping operational spending at 90% of revenues and requiring capital improvements spending to be at least 10% of revenues. As discussed at the May 21 budget workshop, these policies will contribute a steady stream of funding in addition to the current unallocated fund balance being held and budgeted for capital improvements. At the same time, as mentioned in the May 21 workshop, the City has a significant amount of as-of-yet unquantified maintenance work to do, and the amount of the currently available and future funding may not be sufficient to get the work done in the near-term. The City is currently working on an updated plan but that plan is not yet available.
45. First, I would encourage spending the un-allocated balance to what the Staff refers to as “aging” infrastructure. We continue to profess that we live in Beautiful Carmel, which requires we look at vistas, not the roads and pathways beneath our feet or the public green spaces like those on Ocean Avenue towards Del Mar parking. Our city is in deplorable shape. Let’s fix the roads, beautify the public pathways, fix or replace the police facility, so that the entire city gets the type of attention that tax-paying citizens are giving to Scenic Pathway.
The spending of the unallocated fund balance is at the discretion of Council. In FY25-26 budget, Council has authorized a capital improvements ("CIP") budget of $7.9 million that will consume $4.9 million of the $14 million unassigned fund balance to be spent on the FY25-26 approved CIP projects, including projects addressing the City's aging infrastructure. This spending comes on top of an estimated $5 million of CIP spending in the current FY 24-25 year.
46. Second, you are considering cost cuts to operating expenses appropriately; however, now is also the time to consider revenue increases. Why does Carmel persist on being below market on TOT. We tax at 10% for Transient Occupancy Tax while other coastal communities, including Pacific Grove, Laguna Beach, etc. are at 12%. That additional +2% would address the concern about not meeting the 90/10 guideline over the next 5 years; but for some reason this is a “parking lot” item to be addressed at a future date? Attachment 3
The City currently collects 10% for Transient Occupancy Tax (TOT). Another 2% is collected as part of a self-assessment which all of the Hotels placed on themselves as part of the Carmel Hospitality Improvement District for a total cost to the visitor of 12%. The 2% is passed directly from the hotels to Visit Carmel for marketing. In other words, the City only receives a 10% TOT from hotels. Increasing the City TOT from 10% to 12% would raise an estimated additional $1.8 million, or 5% of operating expenditures. The City Council considered this action in 2024 but decided to keep the TOT at 10%. The City is actively looking for additional revenue sources, but considering additional revenue sources requires more research and staff time than cutting expenditures. It also takes longer for the implementation and realization of new revenues. For example, creating new revenues in FY25-26 would have required Council actions as early FY23-24.
47. Since Salaries & Benefits are the biggest expense, I recommend we make it clearer as to how the $15,069,084 of expenses are being applied. The budget shows a total of 90.5 positions, yet the organizational chart only shows some positions and each organization just shows a total salary number as a line item. I recommend the document: 1) show the amount of salaries and in parenthesis depict how many positions that represents or, 2) under each organization restate how many employees work there. For example:
Community Planning & Building organization has a total of 12 employees for salaries of $1,561,919; how about displaying it as: Salaries (12 positions)……….$1,561,919 on the Budget Summary & Service Impacts table. By simplifying the ability to connect both salaries and positions, we can celebrate how small some organizations are and how impressive their performance is or evaluate inconsistencies on how to utilize headcount.
The City will incorporate these changes in the preparation of the FY26-27 budget.
48. Although it is always recommended to have a General Fund Reserve, a 50% reserve of annual projected operating expenditures it is very high. I recommend a more traditional use of 30 to 35%; therefore, allocating funds to projects both short term and long term to ensure continuity and completion.
Please reference Question 21
49. Unassigned General Fund: Currently we are showing an unassigned Fund balance by June 2025 of $14,153,262. Why are we increasing it? What about we allocate to some key operational or capital improvement areas instead of showing it as unassigned? The practical element of that is to allow for the city to function.
The City's unassigned fund balance represents all non-restricted funds leftover after the General Fund Reserve is funded. The unassigned fund balance is projected to increase in the current FY24-25 year because the City anticipates current-year revenues to be greater than current-year expenditures by a surplus of $3.8 million. That increase is budgeted to go the other direction in the FY25-26 budget. For FY25-26, Council has Attachment 3
authorized $4.9 million of the $14 million unassigned fund balance to be spent, mostly on FY25-26 approved CIP projects.
50.Potential Changes to the Budget (budget workshop): Very good effort in trying to identify how to cut expenditures. A hiring freeze and cut to Economic Development seem appropriate as a way to reassess. I do not recommend reducing/eliminating: 1) Computer replacement, 2) Building department, 3) employee appreciation, 4) City clerk vital records, 5) HR Physical personnel file, 6) Public Web based budget. It is imperative to keep supporting efforts for our employees to be able to perform and efficiently manage the multiple requests they receive.
I recommend we as a community, with the support of our businesses and residents, start looking at other sources of revenue such as parking spaces, increasing transit occupancy tax, vacancy tax on empty homes, pay-per-use of services, etc.
Council made no additional cuts to operating expenditures at the May 21, 2025 Budget Workshop and is discussing various revenue generating ideas.
51.Unassigned Fund Balance in June 2026: The value shown on the budget book (page 80) shows $7,729,665 vs. the projected balance on the presentation shows $7,260,561. Seems this is an error.
As the current FY24-25 fiscal year draws to a close, year-end forecasts for operating and CIP expenditures continue to be refined. Between the publishing of the draft budget book, the publishing of the presentation and the republishing of the budget book, the estimate for spending and project completion has continued to be updated and refined. At this time, the forecast for the June 2026 unassigned fund balance is approximately $7.9 million.
Attachment 3
Attachments:
Attachment 3
Attachment 3
FY 24/25 FY 24/25 FY 25/26 Department and Title Salary Schedules Adopted Proposed Change Council Councilmember monthly $150 4.00 4.00 0.00 Mayor monthly $200 1.00 1.00 0.00
City Council Total 5.00 5.00 0.00 Administration City Administrator Max 241,088 1.00 1.00 0.00 Assistant City Administrator 193,753 - 235,507 1.00 1.00 0.00 Administrative Analyst 89,359 - 108,607 1.00 1.00 0.00 Administrative Coordinator 66,227 - 80,517 1.00 1.00 0.00 City Clerk 151,864 - 184,591 1.00 1.00 0.00 Finance Manager 151,864 - 184,591 1.00 1.00 0.00 Accountant 121,701 - 147,930 1.00 1.00 0.00 Finance Analyst 89,357 - 108,638 1.00 1.00 0.00 Finance Specialist 69,659 - 84,677 1.00 1.00 0.00 Human Resources Manager 151,864 - 184,591 0.00 1.00 1.00 Senior Human Resources Analyst 1.00 0.00 -1.00 Information Services/Network Manager 151,864 - 184,591 1.00 1.00 0.00 Information Technology Technician 75,920 - 92,310 1.00 1.00 0.00 Administration Total 12.00 12.00 0.00 Community Activities Community Activities Assistant I hourly 33,998 - 41,319 1.00 0.50 -0.50 Executive Assistant 44,941 - 48,607 0.50 0.50 0.00 Community Activities Total 1.50 1.00 -0.50 Library
Library and Community Activities Director 167,573 - 203,687 1.00 1.00 0.00 Supervising Librarian 83,907 - 101,982 2.00 2.00 0.00 Librarian 76,274 - 92,706 1.00 1.00 0.00 Library Associate 64,355 - 78,250 0.00 3.00 3.00 Library Assistant 58,510 - 71,136 4.00 1.00 -3.00 Executive Assistant 44,941 - 48,607 0.50 0.50 0.00 Librarian II (Local History) 1.00 0.00 -1.00 Librarian I hourly 65,312 - 79,394 1.00 1.00 0.00 Library Assistant hourly 56,264 - 68,390 3.25 2.00 -1.25 Library Total 13.75 11.50 -2.25 Community Planning & Building
Community Planning and Building Director - 230,733 189,825 1.00 1.00 0.00 Principal Planner 134,160 - 163,093 2.00 2.00 0.00 Senior Planner 121,701 - 147,930 0.00 1.00 1.00 Associate Planner 92,161 - 111,998 2.00 2.00 0.00 Assistant Planner 83,450 - 101,400 1.00 0.50 -0.50 Administrative Coordinator 66,227 - 80,517 1.00 1.00 0.00 Building Official 125,439 - 152,448 1.00 1.00 0.00 Building Inspector 101,213 - 123,053 1.00 1.00 0.00 Permit Technician 69,659 - 84,677 1.00 1.00 0.00 Code Compliance Coordinator 87,152 - 105,934 2.00 1.50 -0.50 Community Planning & Building Total 12.00 12.00 0.00 Public Works Public Works Director 189,825 - 230,733 1.00 1.00 0.00 Administrative Coordinator 66,227 - 80,517 1.00 1.00 0.00 Public Works Superintendent 125,445 - 152,485 1.00 1.00 0.00 Streets Supervisor 88,899 - 108,098 1.00 1.00 0.00 Streets Maintenance Worker III 74,381 - 90,418 2.00 2.00 0.00 Streets Maintenance Worker I/II 61,485 - 82,181 5.00 5.00 0.00 Facilities Maintenance Supervisor 93,434 - 113,568 1.00 1.00 0.00 Facilities Maintenance Specialist 74,381 - 90,418 1.00 1.00 0.00 Environmental Compliance Manager 125,439 - 152,448 1.00 1.00 0.00 Administrative Analyst 89,359 - 108,607 1.00 1.00 0.00 Project Manager 125,439 - 152,448 2.00 2.00 0.00 City Forester 125,445 - 152,485 1.00 1.00 0.00 Assistant City Forester 92,539 - 112,507 1.00 1.00 0.00 Tree Climber & Care Specialist 74,381 - 90,418 1.00 1.00 0.00 Administrative Analyst 89,359 - 108,607 1.00 1.00 0.00 F&B Maintenance Worker I/II 61,485 - 82,181 3.00 3.00 0.00 Tree Permit Technician 69,659 - 84,677 1.00 1.00 0.00 Public Works Total 25.00 25.00 0.00 Police Public Safety Director 193,753 - 235,507 1.00 1.00 0.00 Police Commander 167,573 - 203,687 1.00 1.00 0.00 Police Sergeant 148,637 - 161,158 2.00 3.00 1.00 Police Officer 129,230 - 140,109 9.00 10.00 1.00 Police Services Supervisor 76,960 - 96,346 1.00 1.00 0.00 Police Services Officer 66,914 - 83,762 6.00 6.00 0.00 Community Services Officer/Animal Control 62,046 - 77,688 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 Attachment 3
CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
Staff Report
June 3, 2025
PUBLIC HEARINGS
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Anna Ginette, AICP, Community Planning & Building Director APPROVED BY: Chip Rerig, City Administrator
SUBJECT:
First reading and introduction of Ordinance No. 2025-002 amending Carmel Municipal Code Section 15.08.010 and Section 15.10.020 to adopt the 2025 Fire Hazard Severity Zone Map for the City as identified by the California State Fire Marshall in Accordance with Government Code Section 51178 (Estimated time - 45 min) RECOMMENDATION:
Staff recommendation:
1. Request the City Attorney to read the title of the Ordinance.
2. Motion to introduce Ordinance 2025-002 amending Carmel Municipal Code Section 15.08.010 and Section 15.10.020 to adopt the 2025 Fire Hazard Severity Zone Map for the City as identified by the California State Fire Marshall in Accordance with Government Code Section 51178, and schedule a second reading of the Ordinance for the next Council meeting.
BACKGROUND/SUMMARY:
California law requires the State Fire Marshal designate fire hazard severity zones (FHSZ), based on fuel loading, slope, fire weather and other relevant factors, such as wind. The law also requires the State Fire Marshal periodically review these zones to determine if zones or ratings should be revised or repealed.
This is to ensure an accurate reflection of areas susceptible to wildfire based on new science, climate data and fire assessment modeling.
On May 5, 2025, Community Planning and Building staff presented changes for the current FHSZ map (2011) and the updated map the State Fire Marshal released on March 10, 2025. Staff also presented relevant wildfire code requirements and the Wildland-Urban Interface (WUI) area designated in the 2024 adopted a Community Wildfire Protection Plan.
Pursuant to state law, local jurisdictions shall adopt updated FHSZ maps by ordinance within a specified amount of time. Local jurisdictions do not have the ability to decrease the level of hazard severity identified by the State Fire Marshal. However, local jurisdictions do have the discretion to increase the level of hazard severity.
On May 5, 2025, the City Council directed staff to return with a draft ordinance adopting the 2025 State Fire Marshall prepared FHSZ map.
The draft Ordinance for adoption is included as Attachment 1, with the updated map (Exhibit A to the Ordinance) included as Attachment 2. A redline version of the draft Ordinance to show the changes to the municipal code if adopted are included as Attachment 3.
DISCUSSION
Government Code (GC) Section 51179(a) states that “A local agency shall designate, by ordinance, moderate, high, and very high fire hazard severity zones in its jurisdiction within 120 days of receiving recommendations from the State Fire Marshal pursuant to Section 51178.” On March 10, 2025, the State Fire Marshal released an updated Fire Hazard Severity Zone (FHSZ) map and pursuant to state law, the city shall adopt the map by ordinance on or before July 8, 2025.
On May 5, 2025, the City Council received a staff presentation on the updated FHSZ map and directed staff to return with a draft ordinance. At the direction of Council, staff is returning to introduce and waive the full reading of Ordinance 2025-002 (Attachment 1) and will return for a second reading at the July 1, 2025, City Council meeting.
Environmental Review
Adoption of an ordinance pursuant to GC Section 51179(a) does not include an increase to FHSZ levels or areas beyond what was identified by the State Fire Marshall. Therefore, action by the City Council does not include exercising the discretion afforded in GC Section 51179(b). As such, adoption of the ordinance is a ministerial action statutorily exempt pursuant to Public Resources Code (PRC) Section 21080(b)(1) and CEQA Guidelines Section 15268. Further, PRC Section 21080(b)(4) and CEQA Guidelines Section 15269(c) statutorily exempts actions necessary to prevent or mitigate an emergency. The Governor of California Executive Order N-18-25 identifies that California is at a great risk due to wildfire. This order proclaims that standards, regulations and statutes shall be incorporated to harden communities to reduce wildfire risk. Adoption of the FHSZ map furthers this proclamation. Therefore, this action qualifies under this exemption.
CEQA Guidelines Sections 15307 and 15308 categorically exempts actions by regulatory agencies for protection of natural resources and of the environment, respectively. These include actions taken by regulatory agencies (i.e. the City) as authorized by state law (i.e. GC Section 51179(a)) to assure the maintenance of a natural resource and protection of the environment where the regulatory process involves procedures for such maintenance and protection. Adoption of an ordinance incorporating the updated FHSZ map prepared by the State Fire Marshal within the Carmel-by-the-Sea Municipal Code is required by state law and associated wildfire prevention and protection measures ensure the maintenance of the city’s natural resources and protection of the overall environment. None of the exceptions to the exemptions listed in CEQA Guidelines Section 15300.2 exist in this case. Although additional areas are now designated, from 221 acres to 488 acres, the required vegetation management and structural hardening are already required by state law and do not go beyond the baseline requirements. Therefore, the ordinance does not present or entail any unusual circumstances.
FISCAL IMPACT:
N/A
PRIOR CITY COUNCIL ACTION:
On May 5, 2025, the City Council received a staff presentation on the updated FHSZ map and directed staff to return with a draft ordinance. At the direction of Council, staff is returning to introduce and waive the reading of the ordinance.
ATTACHMENTS:
Attachment 1) CLEAN VERSION - ORD 2025-002_Adopting Fire Hazard Safety Map 2025 Attachment 2) 2025 FHSZ Map (Exhibit A)
Attachment 3) REDLINE - ORD 2025-002_Adopting Fire Hazard Safety Map 2025
CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
ORDINANCE NO. 2025-002
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA AMENDING CARMEL MUNICIPAL CODE SECTION 15.08.010 AND SECTION 15.10.020 TO ADOPT THE 2025
FIRE HAZARD SEVERITY ZONE MAP FOR THE CITY AS IDENTIFIED BY THE CALIFORNIA STATE FIRE MARSHALL IN ACCORDANCE WITH GOVERNMENT CODE SECTION 51178 WHEREAS, the City has adopted a General Plan and Municipal Code that prioritizes and the protection of its unique village character and public safety through effective land use planning and hazard mitigation; and
WHEREAS, the City previously adopted revisions to the California Building Code on February 5, 2008, including requirements for new construction in the Very High Fire Hazard Severity Zones to incorporate ignition-resistant and noncombustible materials; and WHEREAS, Government Code Sections 51178 and 51179 require local jurisdictions to designate Very High Fire Hazard Severity Zones based on recommendations by the California Department of Forestry and Fire Protection (CAL FIRE); and
WHEREAS, on March 10, 2025, the California State Fire Marshal updated and officially released the 2025 Fire Hazard Severity Zone (FHSZ) map (Exhibit A), using the latest science, data, and modeling methodologies, and transmitted the new map to the City as required by law; and WHEREAS, the City of Carmel-by-the-Sea is required to adopt the 2025 FHSZ map within 120 days of receipt in order to remain in compliance with Government Code Section 51179 and to enhance wildfire resilience and planning measures.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES ORDAIN AS FOLLOWS:
SECTION 1. Findings. The City Council finds that the foregoing recitals are true and correct and incorporates them herein by reference.
SECTION 2. Chapter 15.08.010 (Building Code), of the Carmel-by-the-Sea Municipal Code is hereby amended to read as follows:
15.08.010 Adoption. Except as otherwise amended by this chapter and Chapter 15.04 CMC, the following model codes are hereby adopted and are incorporated in this chapter by reference and made a part hereof as if fully set forth herein:
A. 2022 California Building Code and Appendices;
B. 2022 California Historical Building Code;
C. 2022 California Existing Building Code;
D. 2022 California Residential Code;
E. 2022 California Plumbing Code;
Attachment 1
Ordinance 2025-002
F. 2022 California Electrical Code;
G. 2022 California Mechanical Code;
H. 2022 California Green Building Standards Code;
I. 2022 California Fire Code;
J. 2021 International Property Maintenance Code;
K. 2022 California Energy Code.
The Very High Fire Hazard Severity Zone Map, as transmitted to the City on March 10, 2025, by the Department of Forestry and Fire Protection, is also adopted as required by law.
SECTION 3. Chapter 15.10.020 (Residential Code) of the Carmel-by-the-Sea Municipal Code is hereby amended to read as follows:
15.10.020 Very High Fire Hazard Severity Zone Adopted. (Residential Code) The Very High Fire Hazard Severity Zone Map, as transmitted to the City on March 10, 2025, by the Department of Forestry and Fire Protection, is also adopted as required by law.
SECTION 4. Determinations. Based on the findings above, in addition to information provided to the City Council at the public meeting, the City Council determines as follows:
1. Pursuant to California Government Code Sections 51178 and 51179, the City of Carmel-bythe-Sea hereby adopts the 2025 Fire Hazard Severity Zone Map as developed and recommended by the California State Fire Marshal.
2. This adoption includes all zones identified as Very High Fire Hazard Severity Zones within the incorporated boundaries of the City, as depicted in the official map attached hereto as Exhibit A and incorporated herein by reference.
SECTION 5. California Environmental Quality Act (CEQA). The City Council finds that the designation of Fire Hazard Severity Zones in Sections 2 and 3 of this Ordinance is:
1. A ministerial action required by Government Code Section 51179(a) that is Statutorily exempt from CEQA pursuant to pursuant to Public Resources Code Section 21080(b)(1) and CEQA Guidelines Section 15268.
2. An action necessary to prevent or mitigate an emergency that is statutorily exempt from CEQA pursuant to Public Resources Code Section 21080(b)(4) and CEQA Guidelines Section 15269(c).
3. An action taken by regulatory agencies for protection of natural resources (CEQA Guidelines Section 15307) and of the environment (CEQA Guidelines Section 15308) and that none of the exceptions to the exemptions found in Section 15300.2 apply. Adoption of the Ordinance does not present or entail any unusual circumstances. The Ordinance is a regulatory change that Attachment 1
Ordinance 2025-002
would not directly cause any reasonably foreseeable physical change, nor would it determine or cause any future development. Indirect physical changes would require application of existing regulations for structure hardening and vegetation maintenance. This would reduce environmental threats caused by wildfires and would be beneficial to the environment.
SECTION 6. Severability. If any section, subsection, provision, sentence, clause, phrase or word of this Ordinance is for any reason held to be illegal or otherwise invalid by any court of competent jurisdiction, such invalidity shall be severable, and shall not affect or impair any remaining sections, subsections, provisions, sentences, clauses, phrases or words of this Ordinance.
SECTION 7. Effective Date. This Ordinance shall take effect 30 days after its adoption by the City Council of the City of Carmel-by-the-Sea.
SECTION 8. Codification. The City Clerk is hereby authorized and directed to codify the provisions of Sections 2 and 3 of this Ordinance into the Carmel-by-the-Sea Municipal Code.
INTRODUCED at a Regular City Council Meeting on June 3, 2025.
Attachment 1
Ordinance 2025-002
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this 9th day of July 2024 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED: ATTEST:
________________________ _______________________________ Dale Byrne, Mayor Nova Romero, MMC, City Clerk
EXHIBIT A: 2025 FIRE HAZARD SEVERITY MAP
Attachment 1
Ordinance 2025
-002
Attachment 1
City and County boundaries as of 10/22/24 (CA Board of Equalization) CAL FIRE State Responsibility Areas (SRA25_1)
CAL FIRE Fire Hazard Severity Zones (FHSZSRA23_3, FHSZLRA_25_1) Data Sources:
Daniel Berlant, State Fire Marshal, CA Department of Forestry and Fire Protection Joe Tyler, Director/Fire Chief, CA Department of Forestry and Fire Protection Wade Crowfoot, Secretary for Natural Resources, CA Natural Resources Agency The State of California and the Department of Forestry and Fire Gavin Newsom, Governor, State of California Protection make no representations or warranties regarding the accuracy of data or maps. Neither the State nor the Department shall be liable under any circumstances for any direct, special, incidental, or consequential damages with respect to any claim by any user or third party on account of, or arising from, the use of data or maps. and other relevant factors including areas where winds
have been identified by the Office of the State Fire Marshal as a major cause of wildfire spread.
statewide criteria and based on the severity of fire hazard that is expected to prevail in those areas. Moderate, high, and very high fire hazard severity zones shall be based on fuel loading, slope, fire weather, Government Code section 51178 requires the State Fire
Marshal to identify areas in the state as moderate, high, and very high fire hazard severity zones based on consistent Unzoned LRA
Incorporated City
Projection: NAD 83 California Teale Albers
Scale: 1:14,000 at 11" x 17"
Km 0 0.2 0.4 0.6 0.8 1
Mi 0 0.2 0.4 0.6
Very High High Moderate
Fire Hazard Severity Zones in State Responsibility Area (SRA), Effective April 1, 2024
Very High High Moderate
Fire Hazard Severity Zones (FHSZ) in Local Responsibility Area (LRA), as Identified by the State Fire Marshal
Carmel-by-the-Sea
San Antonio Ave
4th Ave
Mission St
Mountain View Ave
Monte Verde St
San Carlos St
Santa Lucia Ave Cam Real
Santa Rita St
Casanova St
10th Ave Junipero St
Ocean Ave
5th Ave
Dolores St
Torres St
Lincoln St
Guadalupe St
Carpenter St
8th Ave
Second Ave
11th Ave
7th Ave
12th Ave
6th Ave
Scenic Rd
Carmelo St
Santa Fe St
UNINCORPORATED
MONTEREY CO.
UNINCORPORATED
MONTEREY CO.
M O N T E
R
E Y
C
O
.
March 10, 2025
As Identified by the
State Fire Marshal
Local Responsibility Area
Fire Hazard Severity Zones
CITY OF CARMEL-BY-THE-SEA – MONTEREY COUNTY
Attachment 2
CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
ORDINANCE NO. 2025-002
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA AMENDING CARMEL MUNICIPAL CODE SECTION 15.08.010 AND SECTION 15.10.020 TO ADOPT THE 2025
FIRE HAZARD SEVERITY ZONE MAP FOR THE CITY AS IDENTIFIED BY THE CALIFORNIA STATE FIRE MARSHALL IN ACCORDANCE WITH GOVERNMENT CODE SECTION 51178 WHEREAS, the City has adopted a General Plan and Municipal Code that prioritizes and the protection of its unique village character and public safety through effective land use planning and hazard mitigation; and
WHEREAS, the City previously adopted revisions to the California Building Code on February 5, 2008, including requirements for new construction in the Very High Fire Hazard Severity Zones to incorporate ignition-resistant and noncombustible materials; and WHEREAS, Government Code Sections 51178 and 51179 require local jurisdictions to designate Very High Fire Hazard Severity Zones based on recommendations by the California Department of Forestry and Fire Protection (CAL FIRE); and WHEREAS, on March 10, 2025, the California State Fire Marshal updated and officially released the 2025 Fire Hazard Severity Zone (FHSZ) map (Exhibit A), using the latest science, data, and modeling methodologies, and transmitted the new map to the City as required by law; and WHEREAS, the City of Carmel-by-the-Sea is required to adopt the 2025 FHSZ map within 120 days of receipt in order to remain in compliance with Government Code Section 51179 and to enhance wildfire resilience and planning measures.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES ORDAIN AS FOLLOWS:
SECTION 1. Findings. The City Council finds that the foregoing recitals are true and correct and incorporates them herein by reference.
SECTION 2. Chapter 15.08.010 (Building Code), of the Carmel-by-the-Sea Municipal Code is hereby amended to read as follows:
15.08.010 Adoption. Except as otherwise amended by this chapter and Chapter 15.04 CMC, the following model codes are hereby adopted and are incorporated in this chapter by reference and made a part hereof as if fully set forth herein:
A. 2022 California Building Code and Appendices;
B. 2022 California Historical Building Code;
C. 2022 California Existing Building Code;
D. 2022 California Residential Code;
E. 2022 California Plumbing Code;
Attachment 3
Ordinance 2025-002
F. 2022 California Electrical Code;
G. 2022 California Mechanical Code;
H. 2022 California Green Building Standards Code;
I. 2022 California Fire Code;
J. 2021 International Property Maintenance Code;
K. 2022 California Energy Code.
The Very High Fire Hazard Severity Zone Map, as transmitted to the City on November 18, 2008 March 10, 2025, by the Department of Forestry and Fire Protection, is also adopted as required by law.
SECTION 3. Chapter 15.10.020 (Residential Code) of the Carmel-by-the-Sea Municipal Code is hereby amended to read as follows:
15.10.020 Very High Fire Hazard Severity Zone Adopted. (Residential Code) The Very High Fire Hazard Severity Zone Map, as transmitted to the City on November 18, 2008 March 10, 2025, by the Department of Forestry and Fire Protection, is also adopted as required by law.
SECTION 4. Determinations. Based on the findings above, in addition to information provided to the City Council at the public meeting, the City Council determines as follows:
1. Pursuant to California Government Code Sections 51178 and 51179, the City of Carmel-bythe-Sea hereby adopts the 2025 Fire Hazard Severity Zone Map as developed and recommended by the California State Fire Marshal.
2. This adoption includes all zones identified as Very High Fire Hazard Severity Zones within the incorporated boundaries of the City, as depicted in the official map attached hereto as Exhibit A and incorporated herein by reference.
SECTION 5. California Environmental Quality Act (CEQA). The City Council finds that the designation of Fire Hazard Severity Zones in Sections 2 and 3 of this Ordinance is:
1. A ministerial action required by Government Code Section 51179(a) that is Statutorily exempt from CEQA pursuant to pursuant to Public Resources Code Section 21080(b)(1) and CEQA Guidelines Section 15268.
2. An action necessary to prevent or mitigate an emergency that is statutorily exempt from CEQA pursuant to Public Resources Code Section 21080(b)(4) and CEQA Guidelines Section 15269(c).
3. An action taken by regulatory agencies for protection of natural resources (CEQA Guidelines Section 15307) and of the environment (CEQA Guidelines Section 15308) and that none of the Attachment 3
Ordinance 2025-002
exceptions to the exemptions found in Section 15300.2 apply. Adoption of the Ordinance does not present or entail any unusual circumstances. The Ordinance is a regulatory change that would not directly cause any reasonably foreseeable physical change, nor would it determine or cause any future development. Indirect physical changes would require application of existing regulations for structure hardening and vegetation maintenance. This would reduce environmental threats caused by wildfires and would be beneficial to the environment.
SECTION 6. Severability. If any section, subsection, provision, sentence, clause, phrase or word of this Ordinance is for any reason held to be illegal or otherwise invalid by any court of competent jurisdiction, such invalidity shall be severable, and shall not affect or impair any remaining sections, subsections, provisions, sentences, clauses, phrases or words of this Ordinance.
SECTION 7. Effective Date. This Ordinance shall take effect 30 days after its adoption by the City Council of the City of Carmel-by-the-Sea.
SECTION 8. Codification. The City Clerk is hereby authorized and directed to codify the provisions of Sections 2 and 3 of this Ordinance into the Carmel-by-the-Sea Municipal Code.
INTRODUCED at a Regular City Council Meeting on June 3, 2025.
Attachment 3
Ordinance 2025-002
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this 9th day of July 2024 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED: ATTEST:
________________________ _______________________________ Dale Byrne, Mayor Nova Romero, MMC, City Clerk
EXHIBIT A: 2025 FIRE HAZARD SEVERITY MAP
Attachment 3
Ordinance 2025
-002
Attachment 3
CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
Staff Report
June 3, 2025
PUBLIC HEARINGS
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Brandon Swanson, Assistant City Administrator APPROVED BY: Chip Rerig, City Administrator
SUBJECT:
First reading and introduction of Ordinance No. 2025-003 Adding Section 2.52.686 – (Paid Parental Leave) to the Carmel-by-the-Sea Municipal Code (Estimated time - 20 min)
RECOMMENDATION:
1. Request the City Attorney to read the title of the ordinance
2. Introduce Ordinance 2025-003 (Attachment 1) adding section 2.52.686 - Paid Parental Leave, to the Carmel-by-the-Sea Municipal Code; and schedule a second reading of the Ordinance for the next Council meeting.
BACKGROUND/SUMMARY:
The City of Carmel-by-the-Sea is committed to maintaining a supportive and competitive work environment.
In line with this commitment, City Administration is proposing the codification of a Paid Parental Leave (PPL) policy to enhance the City’s employee benefits.
City Administration believes that Paid Parental Leave is a vital benefit for supporting our current employees and for enhancing our recruitment efforts, particularly among younger professionals and individuals looking to relocate to the Monterey Peninsula.
Summary of proposed policy:
The proposed ordinance would add Section 2.52.686 to the Municipal Code and establish the following framework for Paid Parental Leave:
Eligible employees must have completed 12 months of full-time employment with the City.
Qualifying events include the birth, adoption, or foster placement of a child.
Eligible employees may receive up to six (6) weeks (240 hours) of paid leave per event, available once in a 12-month rolling period (prorated for part-time employees).
Leave may be used at any time within 12 months of the qualifying event.
Leave can be taken consecutively or in minimum 40-hour increments.
Paid Parental Leave will run concurrently with FMLA and CFRA.
This leave has no cash-out value, and any unused leave expires after 12 months.
Requests must be submitted to Human Resources with 30 days' notice or as soon as possible.
Leave is offset by payments received from state or other agencies (e.g., State Disability Insurance or Paid Family Leave) to ensure no overcompensation.
Observed City holidays during the leave period will count toward the leave time.
The City Administrator retains discretion over policy interpretation and implementation.
ANALYSIS:
Attracting and Retaining Talent
This policy positions the City as an attractive employer to top-tier talent—particularly younger professionals —who increasingly prioritize family-supportive benefits when considering job opportunities. With the high cost of living in the Monterey Peninsula, attracting candidates within the region is critical, and robust benefits like PPL can be a deciding factor.
Workforce Diversity and Inclusivity
Providing Paid Parental Leave demonstrates the City’s commitment to fostering a diverse and inclusive workforce. It aligns with modern workforce expectations and supports employees through major life transitions, ultimately contributing to job satisfaction and retention.
Competitive Advantage
Carmel-by-the-Sea would be the only city in the Monterey Peninsula area to offer Paid Parental Leave as a codified benefit. This gives the City a distinct and meaningful advantage in regional government hiring, distinguishing it as a progressive and family-friendly employer.
Support for Existing Staff
While the benefit was not included in the final agreement with LiUNA, City Administration recognizes the value this benefit brings to current employees and views it as an important investment in workforce stability and employee well-being.
FISCAL IMPACT:
Based on an assumption that the benefit would be used on average by one employee per year, the associated accrual liability of carrying the balances with a potential payout would be around $15,000.
PRIOR CITY COUNCIL ACTION:
None for this action.
ATTACHMENTS:
Attachment 1) Ordinance No. 2025-003
Ordinance No. 2025-003
CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
ORDINANCE NO. 2025-003
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA ADDING SECTION 2.52.686 TO THE MUNICIPAL CODE TO ESTABLISH A PAID PARENTAL LEAVE
BENEFIT FOR CITY EMPLOYEES
WHEREAS, the City of Carmel-by-the-Sea seeks to support its workforce by offering modern, family-supportive benefits; and
WHEREAS, parental leave policies have been demonstrated to increase employee retention, productivity, and overall job satisfaction, while fostering a diverse and inclusive work environment; and
WHEREAS, the addition of Paid Parental Leave will help the City recruit and retain young professionals and provide a competitive advantage over other public sector employers in the Monterey Peninsula; and
WHEREAS, the City recognizes Paid Parental Leave’s intrinsic value for both current employees and future hires; and
WHEREAS, it is in the best interest of the City to codify Paid Parental Leave as a municipal benefit available to eligible City employees.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES ORDAIN AS FOLLOWS:
SECTION 1. The City Council hereby finds that the above recitals are true and correct and material to the adoption of this Ordinance.
SECTION 2. Determinations. Based on the findings above, in addition to information provided to the City Council at the public meeting, the City Council determines as follows:
Municipal Code Section 2.52.686 (Paid Parental Leave) is hereby added to the City Municipal Code as set forth in Exhibit A attached hereto and hereby incorporated by this reference.
SECTION 3. Severability. If any section, subsection, provision, sentence, clause, phrase or word of this Ordinance is for any reason held to be illegal or otherwise invalid by any court of competent jurisdiction, such invalidity shall be severable, and shall not affect or impair any remaining sections, subsections, provisions, sentences, clauses, phrases or words of this Ordinance.
Attachment 1
Ordinance 2025-003
SECTION 4. Effective Date. This ordinance is effective thirty (30) days after its adoption.
SECTION 5. Codification. The City Clerk is hereby authorized and directed to codify the provisions of Exhibit A of this Ordinance into the Carmel-by-the-Sea Municipal Code.
INTRODUCED at a Regular City Council Meeting on June 3rd, 2025.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA on this day of 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED: ATTEST:
_______________________________ _________________________________ Dale Byrne, Mayor Nova Romero, MMC, City Clerk
Attachment 1
Ordinance 2025-003
EXHIBIT A
2.52.686 Paid Parental Leave.
Employees who have completed twelve (12) months of full-time employment with the City shall be eligible for parental leave with pay of up to six (6) weeks, or a maximum of 240 hours of paid leave (prorated based on FTE), once per event, once per 12-month rolling time frame. The purpose of Paid Parental Leave (PPL) is to enable the employee to care for and bond with a newborn or newly adopted or placement of a foster child with the employee.
Paid Parental Leave coverage and guidelines:
a) Approved PPL may be taken at any time during the 12 month period immediately following the birth, adoption or placement.
b) PPL has no accrual or payout value. Any unused PPL will be forfeited at the end of the 12 month period following the birth of a child, adoption, or placement. c) PPL may be taken consecutively or intermittently in minimum increments of 40 hours following the birth, adoption, or placement of a child. This leave shall run concurrently with Family Medical Leave Act (FMLA)/California Family Rights Act (CFRA) and subject to the same request and reporting requirements. d) If observed City holidays occur while the employee is on an approved PPL, holiday/s will count towards such paid leave.
e) The employee must submit a request to the Human Resources Department (HR) with at least 30 days in advance of their need for parental leave, or as soon as possible.
The employee must complete the necessary HR forms and all documentation as required by the HR department to substantiate the request. f) PPL shall be reduced by any payment received by the employee from a federal, state or other local government agency (e.g. State Disability Insurance, Paid Family Leave).
An employee shall not receive supplemental compensation which would result in an employee receiving compensation greater than the employee’s regular wages. g) The City Administrator has discretion to interpret, terminate, or modify this policy at any time.
Attachment 1
CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
Staff Report
June 3, 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:
Resolution 2025-054 approving a 4.19% percent rate increase to charges by the City’s franchised hauler, GreenWaste Recovery, for the collection of solid waste, recycling and organics, effective July 1, 2025, and approving Amendment No. 4 to the Memorandum of Understanding between ReGen Monterey and Member Agencies for Fiscal Year 2025/26 (Estimated time - 30 min) RECOMMENDATION:
Adopt Resolution 2025-054 (Attachment 1) approving a 4.19% percent rate increase to charges by the City’s franchised hauler, GreenWaste Recovery, for the collection of solid waste, recycling and organics, effective July 1, 2025, and approving Amendment No. 4 to the Memorandum of Understanding (MOU) between ReGen Monterey and Member Agencies for Fiscal Year 2025/26.
BACKGROUND/SUMMARY:
On June 17, 2014, Council approved a Franchise Agreement (Agreement) with GreenWaste Recovery (GWR) for the collection of solid waste, recycling and organics, subsequent to a competitive Request for Proposals selection process. The Agreement became effective on July 1, 2015 and expires on June 30, 2030. The Agreement includes a prescribed formula to determine annual rate adjustments by GWR, effective each year on July 1. This index-based formula includes the cost of disposal and processing (“tipping fee”) at the ReGen Monterey (formerly known as Monterey Regional Waste Management District) facility in Marina, inflationary indexes for adjustments to GWR labor and operating costs, regional implementation of SB 1383, and the City’s Franchise Fee of 13%.
HF&H Consultants, LLC (HF&H) was retained by ReGen Monterey to review GWR’s request for an adjustment to customer rates, effective July 1, 2025 (Attachment 2). The rate review resulted in a 4.19% rate increase due to labor and material inflationary indices for the period reviewed.
HF&H has determined a 4.19% increase as appropriate as a result of the following components:
3.80% inflationary increase in labor-related costs
2.60% inflationary increase in vehicle-related costs (excl. fuel) Fuel rate held flat as set by the District
2.60% inflationary increase in other costs
Depreciation held flat per the Agreement
10.05% net processing costs increase due to an increase in per ton tip fees and tonnage
16.89% increase in disposal costs due to an increase in per ton disposal rate and tonnage Rate Adjustment Approval:
While the Agreement requires the City Council to approve annual rate adjustments, the rate adjustment is based upon disposal fees and actual tonnage, inflationary indexes for GWR labor and operational costs, and cost for the City’s Franchise Fee and other regulatory fees. City staff, in tandem with ReGen Monterey staff and HF&H, finds the rate calculation methodology to be consistent with the Agreement. Therefore, staff recommends Council approve Resolution 2025-054 and rate adjustment, which becomes effective on July 1, 2025, in accordance with the Agreement.
Memorandum of Understanding (MOU) for Regional SB1383 Implementation:
In November 2020, CalRecycle issued regulations to implement Senate Bill (SB) 1383, with the goal to reduce the amount of organic material being landfilled by 75% by 2025. CalRecycle regulations place significant responsibility for implementation on local municipalities, including food waste collection from all residential and commercial customers, public education and outreach, enforcement, developing or increasing the capacity of edible food recovery programs, and purchasing recycled organic material such as compost. In response to the SB 1383 regulations, ReGen Monterey’s Technical Advisory Committee (TAC), which is comprised of staff from each Member Agency including the City, waste haulers in the ReGen Monterey service area, and ReGen Monterey, have been working collaboratively to implement program changes to meet the regulations.
The Member Agencies determined ReGen Monterey has the expertise and resources necessary to implement shared activities on the Member Agencies’ behalf, and agreed to reimburse ReGen Monterey for proportionate shares of designated annual costs incurred by ReGen Monterey for these activities under the MOU (Attachment 3) regarding assistance with compliance with SB 1383. Elements of the regulations that are being managed by ReGen Monterey under guidance of the TAC are similar to previous years and include public outreach, contamination monitoring, enforcement, reporting, and edible food recovery programs. The regional costs for implementation of SB 1383 under this MOU are included in the collection rates charged by GWR.
The City’s share of regional costs for implementation of SB 1383 in Fiscal Year (FY) 2025/26 is $14,213.
This amount is reflected as an agency fee in the solid waste, recycling, and organics collection rate adjustment.
FISCAL IMPACT:
The new collection rates reflect an increase of 4.19% and are included as Exhibit A in Resolution 2025-054 and in the staff report as Attachment 2. The 4.19% rate increase is due to labor and material inflationary indices for the period reviewed. The cost of SB 1383 implementation is also included in the fees.
For context, a residential customer with a 32-gallon trash cart will now pay $56.03 a month for solid waste (recycling and organics are included) as compared to the current rate of $53.78 a month. The increase is $2.25 a month and $27.00 more per year. Commercial rates vary based upon the size of the cart, frequency of collection, and type of collection service.
The City’s share of regional cost to ReGen for FY 2025/26 will increase from $11,225 to $14,213. This cost will be covered in the Public Works/Environmental Programs operating budget.
The City’s Franchise Fee of 13% for FY 2024/2025 was estimated at $458,996 and for next FY 2025/2026, the franchise fee is estimated at $478,211.
The Residential service options are unchanged from previous years. For the FY 2025/2026 and future years per request by the City and based on customer feedback, GreenWaste will now add a 32 gallon multifamily/commercial food waste/yard waste cart service option. Previously, 64 gallons was the smallest cart available for mutli-family/commercial food waste/yard waste service. This will result in a cheaper option for commercial accounts with limited space and lower amounts of organic waste. The more affordable option is intended to encourage composting participation and commercial sector diversion rates (Attachment 4).
GreenWaste Sustainability Report is provided as an attachment for information purposes (Attachment 5).
PRIOR CITY COUNCIL ACTION:
In June 2021, Council approved GWR’s imposition of a 2% formula-based rate adjustment for the collection of solid waste, recycling and organics. GWR’s rate increase was primarily due to the creation of a $72,600 fund to buffer anticipated costs of SB 1383.
In November 2021, Council amended the City’s Solid Waste and Materials Recovery Ordinance (Chapter
8.16) to address the new requirements of SB 1383. In December 2021, Council amended the Franchise Agreement with GWR to comply with SB 1383 and approved a 3.76% extraordinary rate increase to cover the additional operational costs associated with SB 1383.
In June 2022, Council approved a 2.14% increase for GWR for the collection of solid waste, recycling and organics. Council also approved Amendment No. 1 to the MOU between the Monterey Regional Waste Management District and Member Agencies for FY 2022/23 regional costs associated with SB 1383.
In June 2023, Council approved a 3.71% increase for GWR for the collection of solid waste, recycling and organics. Council also approved Amendment No. 2 to the MOU for FY 2023/2024.
In June 2024, Council approved a 3.59% increase for GWR for the collection of solid waste, recycling and organics. Council also approved Amendment No. 3 to the MOU for FY 2024/2025.
ATTACHMENTS:
Attachment 1) Resolution 2025-054
Attachment 2) HF&H Final Report & Rate Sheet
Attachment 3) Memorandum of Understanding (MOU) for Regional SB1383 Implementation Attachment 4) Greenwaste Recovery 2024 Carmel-by-the-Sea Annual Report Attachment 5) Greenwaste Recovery Sustainability Report Highlights
CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
RESOLUTION NO. 2025-054
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA APPROVING A 4.19 PERCENT RATE INCREASE TO CHARGES BY THE CITY’S
FRANCHISED HAULER, GREENWASTE RECOVERY, FOR THE COLLECTION OF SOLID WASTE, RECYCLING AND ORGANICS, EFFECTIVE JULY 1, 2025, AND APPROVING AMENDMENT NO.4 TO THE MEMORANDUM OF UNDERSTANDING BETWEEN REGEN MONTEREY AND MEMBER AGENCIES FOR FISCAL YEAR 2025/26
WHEREAS, the City of Carmel-by-the-Sea (City) entered into a Franchise Agreement with GreenWaste Recovery, Inc. (GWR) on June 17, 2014 for solid waste, recycling, and organics collection services for the period of July 1, 2015 through June 30, 2030; and, WHEREAS, Section 8.2 of the Franchise Agreement requires annual inflationary adjustments to customer rates on July 1 of each year, as described in Exhibit E1 to the Agreement, based on agreed-upon cost indices, changes in tipping fees at the ReGen Monterey (formerly Monterey Regional Waste Management District) landfill, City fees, and actual tonnage of materials collected by GWR; and,
WHEREAS, HF&H Consultants, LLC (HF&H) was retained by ReGen on behalf of all its member agencies to review GWR’s request for an adjustment to customer rates, submitted to the City on March 1, 2024; and,
WHEREAS, HF&H’s calculation of the rate adjustments have been reviewed by City staff, and staff finds the calculations to be consistent with the methodology and requirements of the Franchise Agreement; and,
WHEREAS, the rate review resulted in a 4.19 percent rate increase; and, WHEREAS, in September 2016, Senate Bill 1383 (SB 1383) established methane emissions reduction targets, and in November 2020, CalRecycle issued regulations to implement SB 1383; and
WHEREAS, the ReGen’s Technical Advisory Committee developed a Memorandum of Understanding to conduct tasks to comply with CalRecycle SB 1383 regulations on a regional basis; and
WHEREAS, regional implementation costs included in the Memorandum of Understanding must be updated annually; and
WHEREAS, the City’s share of regional implementation costs is reflected as an agency fee in the solid waste, recycling, and organics collection rate adjustment.
NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES HEREBY:
Attachment 1
Resolution No. 2025-054