Pension Funding Update
Carmel, CA
Defined Benefit (DB) Pension Promise
Global Markets
Invests
Returns
Employer and
Employee
Contributions
Pension
Benefit
Payments
City guarantees the benefit level not just
the contribution. Therefore, the City
guarantees the economic and actuarial
assumptions, including investment return.
IMPORTANT:
Assumptions Set Future Cost & Funding Expectations
3 Economic
• Inflation
• Investment Return
• Salary Growth
Demographic
• Retirement
• Disability
• Death
• Termination
Major Driver of
Plan Cost and
Affordability
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 EE & ER Contributions (Normal Cost Only) Actual Investment Earnings Target Balance (Accrued Liability) Accrued Liability (AL)
(Target funding progress
at a static point in time)
Investment
Earnings
+
Cumulative
Normal Cost
Contributions
Projected Benefit Promise:
Estimated amount necessary at
the end of active employment to
Employee Age
Illustration Only
Hypothetical Prefunding Example for Individual Employee’s Retirement Benefit
4 When benefits are “prefunded,”
investment earnings are
assumed to offset 50% -60% of
the promised benefit.
Actuarially Determined Contribution
5 Normal Cost
Unfunded
Actuarial
Liability (UAL)
Payment
Total Employer
Contribution
Normal Cost – the cost for current
service paid as a percent of payroll.
Increases when payroll increases,
decreases when payroll decreases
UAL Contribution – payment
toward past service. Paid as a
fixed dollar amount each year.
Assumed Cost Variance
Corrections
-3.1%
35.4%
24.6%
13.8%
3.9%
15.7%
9.7%
6.5%
12.5%
14.5%
2.0%
16.3%
15.3%
20.1%
19.5%
12.5%
10.5%
-7.2% -6.1%
3.7%
16.6%
12.3%
11.8%
19.1%
-5.1%
-24.0%
13.3%
21.7%
0.1%
18.4%
18.4%
2.4%
0.6%
11.2%
8.6%
6.7%
4.7%
21.3%
-6.1%
5.8%
9.3%
11.6%
-30.0%
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
198419851986198719881989199019911992199319941995199619971998199920002001200220032004200520062007200820092010201120122013201420152016201720182019202020212022202320242025 Plan Year Ending June 30
Investment Return Discount Rate 5 per. Mov. Avg. (Investment Return) Dot Com Crash
Great Recession
CalPERS Historical Investment Returns (Prelim)*
6 Compound Annual Return
1 Year 5 Year 10 Year 20 Year 30 Year
June 30, 2025 11.6% 8.0% 7.1% 6.7% 7.6%
June 30, 2024 9.3% 6.6% 6.2% 6.7% 7.7%
* CalPERS’ Investment Office does not report
final adjusted returns.
Not reflected in current
actuarial valuation.
Funded Status Trend (Without Trust)
7 Fiscal Year End (FYE) 2021 2022 2023 2024 2025 Projected Accrued Liability (AL) $86,912,426 $90,071,331 $95,761,002 $99,221,092 $102,908,989 Market Value of Assets (MVA) $67,068,915 $59,892,928 $63,766,874 $67,658,722 $73,936,871 Unfunded Accrued Liability (UAL) $19,843,511 $30,178,403 $31,994,128 $31,562,370 $28,972,118 Funded Status 77.17% 66.49% 66.59% 68.19% 71.85%
Investment Return
Assumption 7.00% 6.80% 6.80% 6.80% 6.80%
Actual 22.40% -7.50% 6.10% 9.50% 12.10%
Experience Gain(Loss) 15.40% -14.30% -0.70% 2.70% 5.30% *Final Adjusted Return
Source: https://www.calpers.ca.gov/employers/actuarial-resources/public-agency-actuarial-valuation-reports Funded Status Trend (With Trust)
8 Fiscal Year End (FYE) 2021 2022 2023 2024 2025 Projected Accrued Liability (AL) $86,912,426 $90,071,331 $95,761,002 $99,221,092 $102,908,989 Market Value of Assets (MVA) $67,068,915 $59,892,928 $63,766,874 $67,658,722 $73,936,871 115 Trust Assets (Volatility Reserve) $942,628 $1,983,781 $4,124,794 $4,438,844 Unfunded Accrued Liability (UAL) $19,843,511 $29,235,775 $30,010,347 $27,437,576 $24,533,274 Funded Status 77.17% 67.54% 68.66% 72.35% 76.16%
Investment Return
Assumption 7.00% 6.80% 6.80% 6.80% 6.80%
Actual* 22.40% -7.50% 6.10% 9.50% 12.10%
Experience Gain(Loss) 15.40% -14.30% -0.70% 2.70% 5.30% *Final Adjusted Return
UAL & Total ER Required Contribution
Projection
Investment Return’s Impact on UAL Amortization
Payment
10 Total Required Employer Contribution
11 Stress Test
Expect Funding Progress Disruptions
• Investment returns are presumed to pay for 50-60% of pension costs • Underperformance in ANY one year can result in a significant change in funded status and increases in required employer contributions, even if a plan is highly funded • Ultimately UAL contribution spikes threaten service delivery • Pension Volatility Reserve (PVR) can smooth impact of investment experience losses Expected Distribution of Future Investment Losses
Stress Test – UAL Amortization Payment
Rarely
Intended Goals of Pension Volatility Reserve
• Provide source of liquidity and budgetary stability during periods of market volatility • Reduce interest costs and negative amortization of UAL • Maintain intergenerational equity in the cost of public services • Support long-term fiscal sustainability by mitigating pension risk as one component of the agency’s comprehensive long-term financial planning and risk-management framework
Observations and Recommendations
• City is making solid funding progress toward its pension obligation. • Expect that market volatility will periodically disrupt the course of funding progress. • Continue prudent funding of pension volatility reserve to act as buffer and a source of liquidity during times of market disruption or other economic duress. • The pension reserve is maintained as part of the agency’s broader financial planning and reserve structure and is not intended to replace ongoing funding discipline or long-term planning efforts.
Questions
18 Reference
CalPERS Historical Pattern of Prelim and Final
Adjusted Investment Returns
18.4%
2.4%
0.6%
11.2%
8.6%
6.7%
4.7%
21.3%
-6.1%
5.8%
9.3%
11.6%
18.3%
2.2%
0.5%
11.2%
8.4%
6.5%
5.0%
22.4%
-7.5%
6.1%
9.5%
12.1%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Preliminary Return Final Adjusted Return
CalPERS’ Investment Experience Gain/Loss
10.8%
-5.3% -6.9%
4.0%
1.4%
-0.5% -2.0%
15.6%
-14.3%
-0.7%
2.7%
5.3%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Experience Gain/Loss (Based on Final Adjusted Return)
Fiscal Year 2025-2026
First Tri-Annual Budget Report
City Council Meeting
January 12, 2026
Provide an update on the financial results:
• Take a look at how the FY 25-26 year has started
• What do we preliminarily see for revenues?
• Are expenditures what we expected?
• Compare current results to the budget
Purpose
Tri-annual means three times per year:
• Enhance financial reporting to the Council and the citizens • Sooner
• More frequently (tri-annually)
• Based on internal monthly reporting
• Will come back again as part of budget process in Spring and year-end in Summer
Background
Summary
• Revenues generally consistent with prior year and
budget
• Tax revenues still to be received
• Aggressive budgets to be monitored
• Expenditures likewise consistent with prior year and
budget
• No adjustments identified at this time
Summary
FY 25-26 Revenues
Revenue Category
FY 25-26
Adopted
Budget
Jul - Oct
Expended
Percent
Expended
Percent
Expended Prior
Year Jul-Oct
Property Taxes 9,198,405 79,033 1% 1%
State Sales & Use Tax 3,828,119 1,447,099 38% 34%
Local Sales Tax - Measure C 6,595,056 2,618,793 40% 36% Transient Occupancy Taxes 9,109,116 4,219,592 46% 49%
Charge for Services 2,911,901 818,877 28% 42%
Other 3,272,484 1,865,174 57% 54%
Total 34,915,081 11,048,568 32% 31%
FY 25-26 Expenditures
Expense Category
FY 25-26
Adopted
Budget
Jul - Oct
Receipts
Percent
Expended
Percent
Expended Prior
Year Jul-Oct
Salaries/Benefits 15,244,084 5,018,470 33% 26%
Services/Supplies 11,791,173 3,238,871 27% 27%
Non-Departmental * 4,747,943 3,768,421 79% 83%
Debt Service 509,100 443,193 87% 83%
Capital Outlay 8,405,191 637,336 8% 6%
Total 40,697,491 13,106,289 32% 27%
* Largely comprised of Insurance and Unfunded Pension Liability Payments FY 25-26 CIP Expenditures (as of 10/31/25)
Project Label: Budget CY Activity PY Activity Total to Date 251421 - Council Chambers AV Upgrade $ 70,000 $ 4,232 $ 2,763 $ 6,994 251423 - Network Firewalls 180,000 2,620 109,998 112,618 254101 - Paving Grant Streets 2,810,000 41,293 42,261 83,555 254102 - San Antonio Pathway Reconstruct 550,000 19,339 571,654 590,993 254104 - Lincoln/Fourth Trestle Bridge 40,000 7,736 28,205 35,941 254106 - Drainage System Repairs 1,440,611 35,217 1,224,688 1,259,905 254203 - Sunset Center Retaining Wall 550,000 5,802 13,364 19,166 254207 - Police Building Project 3,239,000 103,610 305,999 409,609 254208 - ADA Upgrades Year 7 20,000 10,241 21,936 32,177 254210 - S Center North Lot Elect Panel 100,000 5,802 5,402 11,204 254211 - Vista Lobos 3 EV Chging/Elec Pan 460,000 15,471 14,021 29,492 254212 - Facility Renovations 527,000 49,440 388,509 437,949 254314 - Coastal Eng Study - Phase II 500,000 59,660 148,719 208,379 254315 - Shoreline Infrastructure Repairs 400,000 22,606 12,442 35,048 254316 - Shoreline Wall/Fourth Av Outfall 250,000 15,471 0 15,471 254505 - MTNP 3 Str Drainage Projects 335,000 29,009 465,567 494,576 261201 - HML Restoration Project 100,000 1,440 0 1,440
261437 - IT Network Refresh 40,000 42,051 0 42,051
261438 - Wireless Access Point 50,000 10,072 0 10,072
261528 - CEQA MTNP CFMP 70,000 3,963 0 3,963
261634 - Police Patrol Vehicles (2) 150,000 178,694 0 178,694 261636 - Police Radios Year 5 of 6 30,000 29,003 0 29,003 264132 - PW Compact Track Loader 125,000 121,897 0 121,897 264209 - Design Repairs - CH, FS 150,000 4,860 0 4,860
264211 - Fire Station Upgrades 175,000 20,531 0 20,531
264215 - Police/Public Works Bldg Project 50,000 41,853 0 41,853 264522 - Shoreline Rep Stair Reconstruct 300,000 6,879 0 6,879 $ 12,711,611 $ 888,790 $ 3,355,529 $ 4,244,319
FY 25-26 CIP In Planning
Project Label: Budget
261527 - Planning ODDS Element $ 200,000
261830 - Ambulance Heart Monitor 35,000
261831 - Ambulance 450,000
264101 - Resurfacing Parking Lots (CL,SC) 300,000
264102 - Road Segment Project (10 segment 300,000
264103 - Scenic/Santa Lucia ADA Parking 20,000
264104 - Sidewalks 500,000
264133 - PW EV Trucks (2) 150,000
264207 - ADA Upgrade, Year 8 20,000
264208 - City Hall Ext Shingles 70,000
264212 - Forest Theater Stage 60,000
264213 - Park Branch Library Windows 50,000
264214 - Picadilly Restroom Exp Desgin 70,000
264216 - Sunset Ctr Elevator Power Unit 120,000
264217 - Sunset Center Painting, Phase 2 250,000
264218 - Sunset Ctr Retaining Walls Const 450,000
264219 - Sunset Center Yoga Center Reroof 50,000
264310 - Fire Backflows to Code (3Bldgs) 200,000
264429 - Staff Time 295,000
264439 - CIP Contingency 500,000
264505 - Junipero Bypass Pipe-Design 175,000
264506 - MTNP Stream Projects 5 -6 Design 175,000
264520 - Rio/Junipero Ave Median Enhance 25,000
264521 - Reconstruction Fourth Ave Outfal 900,000
264523 - Forest Plan Implementation Yr 2 739,000
264524 - Devendorf Park Improvements 35,000
264525 - Sand Ramp at Eight Avenue 275,000
264526 - Scenic Pathway Enhancements 100,000
264535 - Forestry Utility Bucket Truck 180,000
$ 6,694,000
FY 25-26 CIP
FY 25-26 CIP
• Conglomerate Paving Project
• Ocean Ave (btw Hwy 1 & Carpenter)
• San Antonio Ave (btw Ocean & 4th)
• 10th Ave (btw Mission & Junipero)
• 6th Ave (btw Guadalupe & Carpenter)
• Torres st (btw 2nd & 4th)
• PD/PW Project
• New Evidence Room – PD
• HVAC Repair – PD
• Security Door & Cameras – PD
• Security Counter & Access System – PW
• Design Repairs
• Exterior Painting of Windows – CH
• Exterior Painting of Handrails – CH
• Update Sleeping Quarters & Offices – FS
• Sunset Center Elevator Power Unit
• Sidewalks (various locations: pavers)
FY 25-26 CIP COMPLETED
• Conglomerate Paving Project
• May include: Road Segments & Resurface Sunset Center Parking Lot • Sidewalk Repairs
• 1,426 locations (6,572 linear feet)
• Fire Station Upgrade
• Rio/Junipero Median
• PD/PW Work
• Install Evidence Racks
• PD Parking Lot Secure Gate
• Forest Plan Implementation
FY 25-26 CIP ACTIVE
• Forest Theater Stage Repairs
• Sunset Center Painting
• City Hall Shingles
• Park Library Window Repairs
• ADA Upgrade: Handrail @ Devendorf Park Stairway
• Shoreline Stairs Repairs (10th & 12th)
• Devendorf Park Improvements
FY 25-26 CIP COMING UP
• Based on the revenues collected and planned,
revenues appear sufficient to fund the City’s
operations
• Based on expenditures to date, budgeted
expenditures appear to be sufficient
• Recommend continued monitoring of financial
results, with second tri-annual report in the spring
Conclusion
FY 25-26 Expenditures by Department
General Fund Operating Expense by
Department
FY-25-26
Amended
Budget
July-Oct
Expenses
% Budget
Expended
City Council 248,752 107,286 43%
City Administration 3,755,017 1,016,835 27%
City Attorney 517,000 155,110 30%
Community Planning & Building 2,356,051 639,183 27%
Police 5,556,940 1,389,771 25%
Fire 3,417,424 1,192,170 35%
Ambulance 2,359,760 817,059 35%
Public Works 5,851,028 1,396,253 24%
Library 1,491,904 459,240 31%
Community Activities 246,400 70,231 29%
Economic Revitalization 1,167,981 494,495 42%
Non-Departmental 5,324,043 4,731,321 89%
Authorization to spend up to $150,000
for the purchase of a reserve ambulance
City Council Meeting
January 12, 2025
CITY OF CARMEL-BY-THE-SEA
1 Current Ambulance vehicle inventory:
Industry standards replacement schedule for emergency medical vehicles:
10 years of service or 120,000 miles
2 Background
High Maintenance Costs:
Over $50,000 spent in repair cost in the last year
Decreased Reliability:
Risk of failure during patient transport
Lack of Reliable Reserve Vehicle:
Neither unit is a dependable reserve ambulance for the new unit arriving in April 2026
CITY OF CARMEL-BY-THE-SEA 3
Risks
CITY OF CARMEL-BY-THE-SEA 4
Conclusion
Staff is recommending the purchase of a reserve ambulance Thank you
Sunset Center Painting, Phase II
(Bid Award)
City Council Meeting
01/12/2026
CITY OF CARMEL-BY-THE-SEA
• City Council appropriated $250,000 to Sunset
Center Painting, Phase II CIP project in Fiscal
Year 2025-26
• Formal Bid Process: 5 Bids Received
Lowest Base Bidder, and Lowest Total Bidder:
Color New Corps at $188,000
CITY OF CARMEL-BY-THESEA
Background
CITY OF CARMEL-BY-THESEA
Background
• Phase I of this project (Fiscal Year 22-23) addressed:
- Haz Mat Remediation
- Some exterior painting on the north face of
the Sunset Center, partially wrapping around
on Mission Street.
• Phase II (current phase) addresses remainder of
painting on exterior façade.
• A 15% contingency ($28,200) is recommended,
for a a Not-To-Exceed total of $216,200.
CITY OF CARMEL-BY-THESEA
Fiscal Impact
Budgeted = $250,000 Under Budget
CITY OF CARMEL-BY-THESEA
Recommendation
• Adopt Resolution 2026-004:
• To award Color New Corps a contract with a total
Not-To-Exceed amount of $216,200.
• Scheduling:
• Project Completion prior to end of 2025-26 Fiscal Year Questions?
CITY OF CARMEL-BY-THE-SEA
Harrison Memorial Library
Board of Trustee Appointments
Presented to the Carmel-by-the-Sea City Council
January 12, 2026
LEGAL FRAMEWORK
Appointment Authority and Process
Governing Code
Chapter 2.72 of the Municipal Code establishes the
Public Library Board and clearly defines the
appointment process in Section 2.72.030.
2.72.030.A: Members of the Harrison Memorial Library
Board of Trustees shall be nominated by the Mayor,
whose nomination must be ratified by at least three of
the five members of the City Council.
2.72.030.B: At least three members of the Harrison
Memorial Library Board of Trustees shall be residents
of the City, and no more than two members shall be
residents from the City's adopted sphere of
influence.
Current Situation
As Mayor, I am presenting two highly qualified
candidates. One lives in CBTS and one on Carmel
Point, which will make the composition of the board
4 CBTS members and 1 SPHERE member.
This meets the requirement of 2.72.030.B for this 5
person board.
Confirming these nominees will restore a full fivemember board and ensure proper governance of this vital community institution.
That is our goal today.
Meet the Candidates
These highly qualified candidates have stepped forward to serve our community through the Harrison Memorial Library Board of Trustees. Each brings unique experience, deep commitment to Carmel, and a proven track record of civic engagement and leadership.
1 Billy Farina
2 Joe DiNucci
CANDIDATE PROFILE
Billy Farina: Strategic Vision Meets Community Commitment Finding a Forever Home in Carmel
After retiring in 2019, Billy and his wife visited Carmel, their first stop, and within 24 hours knew it was their forever home. After investing four years renovating their home on the Point, Billy now seeks to expand his purpose through community service, deeply believing in the obligation to protect, nurture, and evolve this wonderful community.
"Our library is a century-old legacy and serving as a Trustee requires a vision that looks just as far into the future. I am seeking a seat on the Board to be a strategic partner and a collaborative team player.
My goal is to complement the Board¾s existing expertise with my background in business planning and long-range strategy. I believe in a 'team-first' approach by aligning on shared goals to build the fiscal and operational framework our library needs to thrive." Meet Billy Farina
A Deep Appreciation For This Unique Community
Billy's extensive career spans in leadership, problem-solving, and understanding human dynamics from every business perspective. Each of his roles built the skills essential for effective board governance and community service.
Academic Foundation
BS and BA from University of Arizona in Political
Science and Radio/Television; MBA from University
of Connecticut
Corporate Leadership
30+ year career with Cox Communications, rising
from front-line employee to President
Diverse Experience
Managed over 40 different locations throughout the
country, from major cities to rural communities
Key Insight
Gained deep understanding of community dynamics
and the positive impact created when leaders work
together
Billy's extensive career provided education in leadership, problem-solving, and understanding human dynamics from every business perspective. Each role built skills essential for effective board governance and community service.
Billy's Board Experience/Philosophy
Board Service
Over 35 years of involvement
with numerous boards,
serving both as board member
and Chair across
environmental, housing, and
children's organizations
Current Engagement
Board member of Habitat for
Humanity in Monterey County,
continuing his commitment to
community housing and
development. He is also a
Special Project Docent at Tor
House.
Collaborative
Approach
Proven record of bringing
different perspectives into
cohesive, mutually acceptable
solutions through compromise
and data-driven decisionmaking
Billy understands the critical dynamics of working toward solutions through organizational boards. His experience spans diverse sectors, giving him unique insight into how effective governance can serve community needs while balancing multiple stakeholder interests.
CANDIDATE PROFILE
Joe DiNucci: A Legacy of Service and Leadership
Connection to Carmel
Joe is a longtime, proud Carmel resident and homeowner who deeply values the town's heritage, including owning a historic Murphy cottage. He is a frequent attendee and speaker at Carmel council and commission meetings, consistently bringing thoughtful perspectives to civic discourse.
"I want to serve because the library is the cornerstone of thought and ideas in Carmel. As the remodel proceeds, I would bring steady judgment, 16 years as a book creator and publisher, and a long view on balancing physical collections with timeless services and 21st-century technologies. My goal is to help keep the library welcoming, relevant, and intellectually vital for our future while honoring our past".
Joe's Professional Background
Joe emphasizes that his 80+ years of living and working have taught him "how to think and how to listen", essential qualities for effective board service. Fifteen years of professional coaching has equipped him with the business acumen and human understanding to engage meaningfully with authors, library patrons, and community stakeholders and provide assistance to the CPLF when required. 1 Educational Foundation
Bachelor of Science from Carnegie Mellon University and MBA from Duquesne University, plus coaching certification from New Ventures West
2 Technology Career
42-year sales and marketing veteran of Silicon Valley with 50 years in high technology sector 3 Coaching Practice
Founded "Surviving Success" in 2007, bringing business insights and human empathy to professional coaching
4 Aging Interrupted
Co-founded with wife Hedda Adler in Spring 2021 to challenge myths about aging and promote healthy living
Joe's Community Impact
"I aspire to be the Servant Leader Model", a philosophy that places community needs at the center of decisionmaking.
Academic Leadership
Taught graduate classes on
leadership and teamwork at
Stanford, Oxford, and MIT,
bringing academic rigor to
practical applications
Healthcare Advocacy
Helped create the REACH
program for stroke survivors in
Palo Alto since 1989; served as
board member and chair from
2012 to 2022
Media Innovation
Co-created Silicon Valley Press
and has directed it since 2010,
demonstrating entrepreneurial
leadership in community media
Beyond professional accomplishments, Joe's life includes his wife Hedda, sons David and Michael, grandchildren Jack and Kate, and daily walks on Carmel Beach. He's also known as a car enthusiast, regularly showing his famous '61 red VW Bug convertible at many Peninsula shows during Car Week.
Recommendation for Approval
Highly Qualified Candidates
I believe that Billy Farina and Joe DiNucci
will be mission-driven, thoughtful,
prepared, and community-minded
members who will lead with perspective,
ask good questions, be team players and
help position the library for the next
generation.
Requested Action
In accordance with Chapter 2.72.030 of the Municipal Code, I respectfully request that at least three council members ratify these mayoral nominations:
Billy Farina to a term expiring 5/30/2028
Joe DiNucci to a term expiring 5/30/2029
Committee Recommendations
for City Council
A comprehensive review of municipal committees and
working groups to optimize governance and operational
efficiency
Committee Restructuring
As part of our ongoing commitment to efficient
governance, here is a review of all active
committees and working groups.
This identifies opportunities to streamline
operations while maintaining effective oversight
of critical city functions.
This list does not include Climate Committee
which will also be discussed.
OVERVIEW
Recommendations 5
Retirement
Mission completed or
redundant
3 Sunsetting
Upon task completion
4 Review Active
Committees
Discuss status and
direction
CATEGORY 1
Committees Recommended for Retirement
The following committees have successfully completed their primary missions or can be effectively replaced by existing city personnel and processes:
1 Library Centennial
Restoration Project
Committee
With the restoration project
underway, oversight can transition
to key City personnel. The Mayor
and City Administrator will
participate in Project Team
meetings as needed for decisionmaking and Council reporting. Both the City and CPLF maintain active
Project Managers for ongoing
operations.
2 Pickleball Ad Hoc
Preliminary research is complete
and the Municipal Ordinance will
be approved. Council members can
continue independent research and
community engagement, reporting
findings back to Council as needed.
3 Strategic Priorities
Ad Hoc
This group will complete its task
this month following the January
22nd Strategic Planning session.
Staff can update the Strategic
Priorities list immediately following
that meeting.
4 Parking Ad Hoc
Since Parking is not a Strategic
Priority, there is no need for a
separate committee. Future
requirements will be determined
during the upcoming Strategic
Planning Session.
5 Police & Public Works
Building Ad Hoc
This committee has successfully
completed its work with the release
of the Police Station/Public Works
Building Request for Proposal
(RFP). The project now moves into
the next phase under standard city
procurement processes.
CATEGORY 2
Committees Sunsetting Upon Task Completion
These working groups remain active with clear completion timelines, after which their functions will transition to regular city staff operations.
Street Address
Workgroup
With the new address system
receiving approval this week, this
group should fulfill its mandate by
May/June. Communication and
maintenance responsibilities could
then transfer to City Staff.
Financial Stewardship Ad
Hoc
This highly valuable Adhoc
Committee could sunset following
finalization of next year's budget in
June. Council will then discuss the
structure for future staff
engagement on financial matters.
Wildfire Preparedness
Committee
The Wildfire Preparedness
Committee addresses one of our
community's most significant
safety challenges, requiring
seamless coordination across
multiple departments. Need to
determine appropriate time to
sunset this committee.
CATEGORY 3
Active Steering Committees Under Review
Carmel Forest Master
Plan Steering Committee
This work aligns directly with Forest
and Beach Commission functions.
Recommendation: Take the time to
review the status of the current
process which has gone through
different stages and seems to be
stalled. We need to take the time to
get this right.
Climate Committee
This Committee has done excellent
work since 2019 and was reformed
in 2023 with one councilmember, 3
members of the public, and one
staff member. This standing
committee meets only when
required.
See following slide.
AHA Workgroup
This group was established to
develop Housing Element
Amendment to primarily to more
efficiently support the provision of
149 affordable units in locations
other than the 3 City-owned
parking lots.
See following slide.
Design Traditions 1.5 Steering Committee
Committee discussions and recommendations will be addressed during the dedicated agenda item at the January 13th Regular Council Meeting.
CATEGORY 3
Climate Committee: Essential for Coastal Resilience
The Climate Committee is a Standing Committee that plays a pivotal role in safeguarding our city's future, guiding crucial initiatives related to environmental protection and adaptation.
Since the Climate Adaptation Plan contains continuing responsibilities, we could discuss the role and composition of this Committee now or at the Strategic Planning session.
Great Work Product and
Diverse Expertise
Comprised of a Council member,
representatives from the
community and one staff member.
With relevant experience, ensuring
a broad range of perspectives, they
have produced an approved Climate
Action and Adaptation Plan.
Shoreline Infrastructure
Oversight
Involved in oversight of consultants
on shoreline infrastructure projects
and providing direction for the
coastal engineering study.
Community Engagement
They are committed to engaging
key stakeholders, the broader
community, and vulnerable
populations throughout the
Vulnerability Assessment and
Climate Action and Adaptation Plan
iterations.
AHA Workgroup Housing Element Revision Oversight
Current Structure
The AHA Group currently involves both City Staff and
community members in a collaborative effort to develop a Housing Element Amendment. That work product has been
submitted and is under review.
Proposed Transition
Once HCD approval is secured, estimated in May/June, City Staff will take full operational control, ensuring efficient execution of Housing Element commitments. The
community group, would continue advisory work
independently if they chose to do so.
IMPLEMENTATION STRATEGY
Expected Outcomes and Benefits
Enhanced Operational Efficiency
Streamlined committee structure reduces
administrative overhead and eliminates redundant
oversight, allowing staff to focus on core municipal
functions and service delivery.
Clear Lines of Accountability
Defined responsibilities and reporting structures
ensure better coordination between Council, staff,
and community stakeholders with transparent
decision-making processes.
Optimized Resource Allocation
Consolidating completed committee functions into
regular staff operations frees up personnel and
budget resources for emerging priorities and
strategic initiatives.
Maintained Oversight Quality
Transitioning to staff management maintains the
same high standards of project oversight while
leveraging existing expertise and established
operational frameworks.
Next Steps and Timeline
01 January 13th
Council Meeting
Review and discuss Design Traditions
1.5 Committee status as dedicated
agenda item
02 January 22nd Strategic
Planning Meeting
Complete Strategic Priorities.
Staff will update and maintain
master list.
Have interim review of Priorities
throughout the year.
03 May-June Timeframe
Street Addresses Working Group
completes mandate and sunsets
Financial Stewardship Ad Hoc
sunsets after budget finalization
AHA Group transitions to
community-only structure after
Housing Element Amendment
approval
04 Ongoing Coordination
Monthly School District meetings with Mayor and City Administrator to include discussion of potential parking lot Coordinate with Monterey Fire on Wildfire Preparedness transition timeline or move to Standing Committee Coordinate with Climate Committee to determine members as a Standing Committee Council Action Required: Review and approve committee restructuring recommendations to optimize municipal governance and resource allocation Discussion
FSW Update
City Council Meeting
January 12, 2026
Financial Stewardship Workgroup
CITY OF CARMEL-BY-THE-SEA 1
• New approach to financial reporting
• Emphasis on more realistic budget projections
• Monthly internal reporting; semi-annual → tri-annual Council review • Better CIP tracking throughout the year
• Online financial dashboard
• Unfunded pension liability
• Collapsed various reserves into a single rainy day fund • Updated financial policies
• Implemented new 90/10 policy
• At least 10% of revenue must be budgeted for capital projects CITY OF CARMEL-BY-THE-SEA 2
Accomplishments in 2025
• Quantify deferred maintenance and capital needs
• Search for operating expense cuts
• Consider revising policy to allocate >10% of revenue to capital needs • Review revenue options
• Consider 2-year budgeting cycle
• Create performance metrics
• Improve reporting in Council packets
CITY OF CARMEL-BY-THE-SEA 3
Agenda for 2026