Carmel-by-the-Sea City Council
May 12, 2026

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL AGENDA
Contact: 831.620.2000 www.ci.carmel.ca.us
Mayor Dale Byrne
Councilmembers Jeff Baron, Hans Buder, Bob Delves, and
Alissandra Dramov
All meetings are held in the City Council Chambers
East Side of Monte Verde Street
Between Ocean and 7th Avenues
Special Meeting – Budget Workshop
Tuesday, May 12, 2026
4:00 PM

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/86126833428
Webinar ID: 861 2683 3428
Passcode: 490348
Dial-in: (253) 215-8782

HOW TO OFFER PUBLIC COMMENT
The public may give public comment at this meeting in person, or use the Zoom teleconference module, provided that there is access to Zoom during the meeting. Zoom comments will be taken after the inperson comments. The public can also email comments to [email protected]. Comments must be received at least 2 hours before the meeting in order to be provided to the legislative body. Comments received after that time and up to the beginning of the meeting will be made part of the record.

PUBLIC COMMENT GUIDELINES FOR SPECIAL MEETINGS
During Special City Council Meetings, public comments are permitted on items listed on the agenda. After each item on the agenda is introduced, the Mayor will invite public comment on that item. Each speaker has 3 minutes to speak unless otherwise adjusted by the Mayor. While stating your name is optional, it helps to identify speakers in the meeting minutes. Remote or in-person participants who do not comply with the requirements of the Brown Act will be muted.

CALL TO ORDER AND ROLL CALL - 4:00 P.M.

ORDERS OF BUSINESS
Orders of Business are agenda items that require City Council discussion, debate, direction to staff, and/or action.

1) Conduct a Workshop to receive a presentation on the Fiscal Year 2026-2027 Recommended Budget and provide direction.
2) Receive a presentation on the updated Council Strategic Priorities list following the January 22nd workshop, and provide direction to staff - Continued from March 24, 2026

ADJOURNMENT
This agenda was posted at City Hall, Monte Verde Street between Ocean Avenue and 7th Avenue, Harrison Memorial Library, located on the NE corner of Ocean Avenue and Lincoln Street, the Carmel-bythe-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.

CORRESPONDENCE RECEIVED AFTER THE POSTING OF THE AGENDA Any correspondence or supplemental materials related to items on this agenda that are received after the agenda has been posted will be distributed to the City Council and made available for public review at City Hall (Monte Verde Street between Ocean and Seventh Avenues) during regular business hours. Written comments emailed to the City Clerk will not be read aloud, but will be posted online with the related agenda at: https://carmelbytheseaca.portal.civicclerk.com/.

SPECIAL NOTICES TO PUBLIC
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk's Office at 831-620-2000 at least 48 hours prior to the meeting to ensure that reasonable arrangements can be made to provide accessibility to the meeting (28CFR

35.102-35.104 ADA Title II).

CITY OF CARMEL-BY-THE-SEA
City Council
Staff Report
May 12, 2026

ORDERS OF BUSINESS
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Jayme Fields, Finance Manager
APPROVED BY: Brandon Swanson, Acting City Administrator SUBJECT: Conduct a Workshop to receive a presentation on the Fiscal Year 2026-2027 Recommended Budget and provide direction.

RECOMMENDATION:

Conduct a Workshop to receive a presentation on the Fiscal Year 2026-2027 Recommended Budget and provide direction.

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 2026-2027 (FY 26-27) Recommended Budget of $41.3 million is submitted for Council’s consideration.

The City today brings back a budget for a workshop. Staff will also be returning with answers to questions received thus far in the budget process from Council and the community. The purpose of this workshop is to understand the full scope of information and analysis incorporated in the budget, consider a list of potential additional changes, then move the budget to final adoption.

BACKGROUND
The City has continued its new approach to budgeting. It is being more aggressive with revenue estimates. It is being serious about identifying opportunities to trim operating expenses. It is

taking seriously the policy goal set out for it, balancing operating costs against capital outlay.

This is an effort that has gone into forming the 2026-2027 budget and an effort that will continue into the future.

The budget is a puzzle made up of three pieces: operating expenses, capital outlay and revenue. The City has identified a list of approximately $100 million of deferred maintenance.

The Community and the City Council have made addressing this a priority, resulting in a 10-year plan to resolve the City’s deferred maintenance needs. The budget reflects the first year of that plan and the right-sizing of the project management staff to do it.

In order to address the necessary capital outlay, the City must address the operating expenses piece of the puzzle. Administration is committed to fiscal discipline. Multiple meetings with department heads and transparent sharing with the Financial Stewardship Workgroup have resulted in meaningful spending cuts to help fund Capital Outlay. The City is seeking to maximize its impact with reduced resources.

But addressing operating expenses alone is not enough to finish the puzzle. Revenue is the missing piece. The City is utilizing informed, more aggressive forecasting to help it plan. It is trying to balance operating needs against sustainable revenues. At the same time, every dollar counts as the City is seeking to address capital outlay needs that exceed its current revenue sources.

SUMMARY OF BUDGET PRESENTED
The budget originated from Departmental Requests that were formed based on current year operations and planned projects for the coming year. City management reviewed the detail of those requests with department heads and identified areas where current operating costs could be redirected, new projects and new positions eliminated, additional revenues identified and revenue assumptions made less conservative.

For fiscal year 2026-2027, the City is budgeting $39.1 million of revenues, $32.8 million of operating expenditures and $8.5 million of capital project expenditures. Operating expenditure represents 84% of budgeted revenues, which is $2.4 million less than the 90% budgetary

maximum. Capital Project expenditures represent 22% of budgeted revenues, which is $4.6 million in excess of the 10% budgetary minimum. These capital project expense amounts are in addition to any unfinished FY 25-26 projects that will be carried over into FY 26-27. See “Capital Outlay and Fund Balance” below.

FY26-27 Adopted Revenues $39,052,739
General Fund Expenditures 29,295,802
Debt Service Expenditures 518,900
Pension Unfunded Liability Mitigation Expenditures 2,972,561 Capital Outlay Expenditures 8,503,680
FY26-27 Adopted Expenditures $41,290,943
Use of Fund Balance for Capital Projects $2,238,204
The budget anticipates continued increases in revenues for FY 26-27. Additionally, the budget also expects expenditures to grow in FY 26-27, 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 $15.0 million in funding for maintaining 92 fulltime equivalent (FTE) positions supporting daily citywide operations and capital projects. • Pension costs of approximately $3.0 million for the City’s annual unfunded accrued liability (“UAL”) payment to CalPERS, in addition to the normal pension costs included in salary and benefits.
• Services and supplies costs of approximately $14.3 million to fund contractual services, fuel and vehicle maintenance, supplies and materials, utilities, fire services, insurance premiums, Sunset Center, staff training, marketing and other operational costs. • $8.5 million for capital projects and vehicle and equipment. • $519,000 for debt service payments on the City’s bonds.

The budget above is consistent with the City’s budget policies:

Budget Policy
Policy
Minimum
Policy
Percentage
Budgeted
Amount
Budget
Percentage
Amount
Spent
More
than
Policy
Minimum
Capital Outlay Expenditures to
be at least 10% of Revenue 3,905,274 10% 8,503,680 22% 4,598,406 Budget Policy
Policy
Maximum
Policy
Percentage
Budgeted
Amount
Budget
Percentage
Amount
Spent
Less than
Policy
Maximum
Operational Expenditures to be
no more than 90% of Revenue 35,147,465 90% 32,787,263 84% 2,360,202 The City’s policy says that it will spend at least $3.9 million (10%) on capital outlays. The proposed budget this year shows projects totaling $8.5 million, which is more than double the minimum required capital investment. The City’s policy also says that it will spend no more than $35.1 million (90%) on operating expenditures. The proposed budget this year is for $32.8 million (84%). That is a $2.3 million savings in operating costs below the policy maximum, compared to the operating expenditures of 91% exceeding the policy last year.

What it Took to Get to 84%
In the light of increasing deferred maintenance demands increasing capital outlay expenditures, the City has examined operations carefully. In summary, the initial set of cuts this year center around:
• Slowing down upgrading and modernization projects like digitizing files • Trimming back the tree program to only slightly more than a maintenance-level of effort • Reducing landscaping expenditures
• Scaling back climate action initiatives
• Decreasing holiday event expenditures

• Asking Departments to review all contracts with direction to reduce those contract amounts by 10%
• No new Cost of Living Adjustment (“COLA”) to salaries for Represented and At-Will employees
Continuing on the Path of Efficiencies and Cost Savings Going forward into future years, this simple process of cutting the budget will most likely not be sufficient to balance the budget within the stated guidelines. Instead, significant changes to operations, including realignment to focus operations on essential priority services while eliminating non-essential services, will need to take place, as the forecast discussed in previous City Council meetings shows us that growth in operating costs outpaces growth in existing revenue sources. In addition, new sources of revenue will have to be identified by the City and supported by the community.

But more fundamentally, the management team is looking critically at what services the City is providing and how they are provided, what are the costs vs. what are the benefits and how the desired outcomes can be achieved most efficiently and will an eye to increased customer service. It is early days yet, but this budget has been cut back in order to explore how operating costs might be cut to fund deferred maintenance costs.

Capital Outlay and Fund Balance
Per the City’s Five-Year Capital Improvement Plan, an investment of $9 – 12 million of spending is required each year, starting with $8.5 million in FY 26-27. As previously discussed, this level of spending will require the City to spend more than it receives in revenue, using up $2.2 million of available fund balance in FY 26-27:

FY26-27 Adopted Revenues $39,052,739
FY26-27 Adopted Expenditures (41,290,943)
Use of Fund Balance for Capital Projects ($2,238,204)
Fund balance is the difference between the City’s assets and its liabilities. It represents the net financial resources of the City. Portions of the fund balance are reserved, either by law or by policy, and a portion of the fund balance is available for spending. The budget anticipates a use of $2.2 million of the available net financial resources or “fund balance” accumulated in prior years.

The goal of the City is that its new capital projects team model with additional project managers will allow the City to complete all $8.5 million of the capital projects in the fiscal year. If all the projects are not finished, the remainder of their budget will be set aside in a reserve of fund balance until they are completed. Projects not finished in prior years have been similarly rolled over. It is anticipated that a CIP reserve of $6 million will be rolled from FY 25-26 into FY 26-27.

Additionally, in the proposed budget, fund balance is also used to put money into reserves. For the past five years, the City has set aside $1 million of fund balance each year to be used to address the Unfunded Pension Liability. This year the City is proposing to not put money into that reserve and instead set aside a reserve for a Housing Trust in the amount of $1 million.

This reserve will also reduce the availability of resources to fund capital outlays.

Together these result in the following forecast reduced fund balance:

Projected Fund Balances
CIP Reserve and Available fund balance as of June 30, 2025 $ 21,758,242 Projected operating deficit FY 25-26 (per Five Year Forecast) (2,071,955) Set aside to fund Unfunded Pension Liability ("UAL") (1,000,000) Projected Available Fund Balances June 30, 2026 18,686,287 Projected operating deficit FY 26-27 (per budget) (2,238,204) Set aside to fund Housing Trust Fund (1,000,000)
Projected Available Fund Balances June 30, 2026 $15,448,083 Per the forecasts discussed at the March 24 workshop, the proposed five-year Capital Improvement Plan will consume all available fund balance in approximately four years without the addition of new revenue sources or further cuts to operational expenses.

CURRENT STATUS AND FUTURE
We began this planning process at the strategic retreat in January talking about strategic goals and how to reach them. There we talked about what ‘levers to pull’. This year the City has looked aggressively for cost cutting levers. Increased revenue is another lever that will need to be pulled in order to sustain the budget into the future. That discussion is already underway with topics like Sales Tax and Transient Occupancy Tax ballot measures being considered by Council.

The Community, the City and the City Council must all work to fit the pieces of the puzzle together. With the aid of several new Department Heads and an eye to the use of technology, the City will continue to review its operations in detail, looking at efficiencies and outcomefocused expenditures. It will also be working closely with the City Council and the community to identify sustainable revenue sources.

Staff provided a brief overview of the budget as part of the May 5, 2026 Council meeting. At the May 12, 2026 budget workshop, staff will present a detailed review of the budget as well as present responses to any questions that staff have received. The period for sending questions has been extended to midnight on Saturday, May 9. Staff will receive direction from Council on the budget and this direction will be incorporated into the FY 26-27 Recommended Budget, which will be considered for adoption by Council on June 2, 2026.

FISCAL IMPACT:

The FY 26-27 Recommended Budget totals $41.3 million. There is no fiscal impact associated with receiving a presentation on the FY 26-27 Recommended Budget. However, direction provided by Council may have an impact on the budget and planned expenditures for the upcoming fiscal year.

PRIOR CITY COUNCIL ACTION:

Council participated in a Priorities Workshop in January, 2026 and received a presentation regarding the Five-Year Financial Forecast and Five-Year CIP on March 24, 2026. Council received a presentation regarding the FY 26-27 Recommended Budget, inclusive of the Capital budget, on May 5, 2026.

ATTACHMENTS:

Attachment 1) FY 26-27 Recommended Budget Book

FISCAL YEAR 2026-2027

RECOMMENDED BUDGET

CITY OF CARMEL-BY-THE-SEA

CITY OF CARMEL-BY-THE-SEA
P.O. BOX CC, CARMEL-BY-THE-SEA, CA 93921
T: (831) 620-2000
www.ci.carmel.ca.us
ATTACHMENT 1

Table of Contents
Introduction 3
City Boundaries Map 4
City Organizational Chart 5
City Council 6
Department Heads 6
Boards, Committees & Commissions 7
City Profile 8
Demographics & Key Statistics 9
Financial Summaries 10
Budget Message 11
Revenue 12
Expenditures 16
Authorized Positions 19
Operating Budget 21
City Council 22
City Attorney 24
Administration 25
Citywide (Non-Departmental) 31
Debt Service 32
Economic Development 33
Library 34
Community Activities 36
Community Planning & Building 38
Public Works 43
Public Safety 51
Capital Improvement Plan 55
Vehicle and Equipment Fund 57
Capital Projects Fund 58
Key Projects and Funding Needs (Years 2-5) 65
Other Funds 68
2 ATTACHMENT 1

INTRODUCTION
3 ATTACHMENT 1

City Boundaries Map
4 ATTACHMENT 1

City Organizational Chart
5 ATTACHMENT 1

City Council
Department Heads
ACTING CITY ADMINISTRATOR – Brandon Swanson
ACTING ASSISTANT CITY ADMINISTRATOR – Marisa Bermudez
CITY ATTORNEY – Brian Perik
POLICE CHIEF – Todd Trayer
DIRECTOR OF PUBLIC WORKS – Ken Wysocki
DIRECTOR OF PLANNING & BUILDING – Anna Ginette
LIBRARY DIRECTOR – Heather Cousin
6 ATTACHMENT 1

Boards, Committees & Commissions
City Board and Commissions advise and assist the City Council with specific projects, policies and issues.

Terms of office are 4 years, with the exception of the Harrison Memorial Library Board of Trustees who serve 3-year terms. Terms run through May 30th. Vacancies occur on a rotating basis each year and the City recruits to fill these vacancies each year in March or whenever an unscheduled vacancy occurs.

City Council
Building Code
of Appeals
Community
Activities
Commission
Forest and
Beach
Commission
Historic
Resources
Board
Harrison
Memorial
Library Board
of Trustees
Planning
Commission
7 ATTACHMENT 1

CITY OF CARMEL-BY-THE-SEA PROFILE
Located about 120 miles south of San Francisco on the Monterey Peninsula, Carmel-bythe-Sea is a world-renowned coastal village spanning just one square mile. Despite its small footprint, it is home to 3,049 residents and an impressive urban forest of over 10,000 public trees, including Monterey pines, live oaks, and Monterey cypress. Visitors and residents alike enjoy its signature white sand beach, natural parklands, and a walkable downtown famous for its unique architecture, dining, and shopping. The community is further enriched by cultural hubs like the Sunset Center and the outdoor Forest Theater, alongside beloved local events such as the Sandcastle Contest, the City Halloween Parade, and the annual Pumpkin Roll.

Established on October 31, 1916, Carmel-by-the-Sea operates as a General Law City with a Council-City Manager form of government. All legislative authority rests with a five-member City Council, which includes a Mayor serving a two-year term and four Councilmembers serving four-year terms. This Council acts as the ultimate policymaking body, responsible for adopting the annual budget, enacting local laws, and approving major contracts or acquisitions. To manage the city's daily affairs, the Council appoints a City Administrator to act as the chief administrative officer. This individual is tasked with enforcing ordinances, executing Council orders, maintaining city records, and overseeing the day-to-day operations of departments like Public Works, Public Safety, and Community Planning and Building.

The City provides a wide variety of services to ensure the village remains a safe and beautiful place for everyone. This includes everything from building safety and planning functions to law enforcement and crime prevention through the Police department.

While many services are handled internally, fire and ambulance are provided through a contract with the City of Monterey. The Public Works department maintains the village's vital infrastructure, including streets, sidewalks, and the iconic shoreline and urban forest. The City also manages two library branches and organizes a variety of community activities and special events.

The true soul of Carmel-by-the-Sea is found in its residents, who stand as the City’s most precious resource. Their unwavering pride and dedication are the driving forces that preserve the unique, historic character of our one-square-mile community. It is the commitment of our residents that keeps the village’s legendary charm and natural beauty alive for everyone to enjoy.
8 ATTACHMENT 1

CITY OF CARMEL-BY-THE-SEA STATISTICS
AS OF JUNE 30, 2025
3 Unemployment
Rate:

4.30%
Median
Age:

68.9 Percent
with
Bachelor’s
Degree:
76%
Median
Household
Income:
$115,729
Population:
3,049
Annual
Precipitation:
15 inches
Average
Annual Low
Temperature:
48°F
Average
Annual High
Temperature:
65°F
Average
Room Rate:
$373
Average
Hotel
Occupancy:

68.9%
Hotel
Rooms
Available:
981
City Fleet
Vehicles:
46 Miles of
Paved
Streets:
27 Parking
Lots:
3 Tennis
Courts:
2 Parks:
10 Playgrounds:
1 Reference
Questions:
20,622
Library
Facilities:
2 Circulation
of library
materials:
156,306
Public Works
Calls for
Service:
7,140
Fire Calls for
Service:
924
Police Calls
for Service:
10,602
Restaurants:
58 9
ATTACHMENT 1

FINANCIAL SUMMARIES
10 ATTACHMENT 1

BUDGET MESSAGE
The City Administrator’s message will be included following the upcoming community meetings and discussions at which the budget is being developed.

The draft budget can be summarized as follows:

FY26-27 Adopted Revenues $39,052,739
General Fund Expenditures 29,295,802
Debt Service Expenditures 518,900
Pension Unfunded Liability Mitigation Expenditures 2,972,561 Capital Outlay Expenditures 8,503,680
FY26-27 Adopted Expenditures $41,290,943
Use of Fund Balance for Capital Projects $2,238,204
Funded Full Time Equivalent (FTE) positions 92.0
This budget is crafted based on the City’s budget policies, which include a policy that requires that no more than 90% of revenues be used to fund operations and that at least 10% of revenues be used to pay for the capital improvement plan (“CIP”).

Based on the budgeted revenues of $39.1 million, the goal for this year’s Operating Expenses to meet the 90%/10% policy would be $35.1 million or less, and Capital Expenses would be $3.9 million or more. That being said, the forecast 5-Year CIP plan total costs, which focus on deferred maintenance, are $9M - $12M per year. Given the fact that the City has no new revenues sources to increase the projected $39.1M revenue, City Administration and Department Leadership has been looking for ways to cut costs and control spending. Thanks to this thoughtful scrutiny of department operations, the proposed budget on the following pages results in operating expenses equal to 84% of revenues (compared to the 90% maximum per the policy).

Budget Policy
Policy
Amount
Policy
Percentage
Budgeted
Amount
Budget
Percentage
Operational Expenditures to be no
more than 90% of Revenue 35,147,465 90% 32,787,263 84%
Capital Outlay Expenditures to be at
least 10% of Revenue 3,905,274 10% 8,503,680 22%
This makes additional funding available for CIP but the current capital plan still exceeds the available revenues, resulting in the above-noted $2.3 million use of fund balance for Capital Projects.
11 ATTACHMENT 1

REVENUE
The FY 26-27 Recommended Budget includes $39,052,739 in estimated total revenue.

As detailed in the following table, the City’s three major sources of revenue—Property Tax, Sales and Use Taxes (including Measure C), and Transient Occupancy Tax (TOT)— continue to provide the foundation for essential services Source Budget
Property Taxes $9,680,989
Sales Tax 4,166,843
Measure C 7,023,597
Other 4,839,968
Charges for Services 3,576,437
Transient Occupancy Tax 9,764,905
Total $39,052,739
Sales Tax
11%
Measure C
18%
Property Taxes
25%
Transient
Occupancy Tax
25%
Other
12%
Charges for
Services
9%
FY 26-27 Citywide Revenue Sources
12 ATTACHMENT 1

Table 1: Estimated Performance and Recommended Budget for Major Revenue Sources Key
Revenues
FY 22-23
Actual
FY23-24
Actual
FY24-25
Actual
FY25-26
Estimated
Actual
FY26-27
Recommended
Budget
Property Taxes $8,136,928 $8,770,848 $9,147,434 $9,445,000 $9,680,989 Sales Tax $3,469,412 $3,692,470 $3,956,282 $4,092,183 $4,166,843 Measure C $5,868,695 $6,386,122 $6,913,837 $6,900,734 $7,023,597 TOT $8,455,742 $8,579,344 $9,559,155 $9,526,737 $9,764,905 Total $25,930,777 $27,428,783 $29,576,709 $29,964,653 $30,636,334 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
Property taxes are budgeted at $9,680,989, representing approximately 25% of the total budgeted revenue. This reflects a 2.5% projected growth over the FY 25-26 estimated actual. The projected growth is minimal and expected to remain below the Consumer Price Index (CPI). As of February 2026, typical home values in the City remain among the highest in the State, with median prices estimated roughly at $1.17 million, resulting in an average annual tax bill of $12,281. The desirability of Carmel-by-the-Sea and its limited housing stock are major factors in its strong local market. Even so, the City has opted for a conservative projection due to a general softening in the broader housing market.

SALES AND USE TAXES
In Carmel-by-the-Sea, Sales and Use taxes and the local Measure C district tax are vital revenue streams, collectively budgeted to contribute $11,190,440, which represents nearly 29% of the City's total revenue.

Carmel’s revenue is heavily concentrated in three primary sectors, starting with General Consumer Goods, which remains the largest contributor at approximately 41% of the total sales tax revenue. This sector's performance is bolstered by receipts at jewelry stores and women's apparel. The Restaurants and Hotels sector follow closely at approximately 38% of the total revenue. Within this group, casual dining saw an increase, while hotels also experienced jump in tax receipts. Lastly, the State and County Pools classification accounts for 17% of total sales tax revenue.

Although fiscal year 2025-26 has shown a rebound in sales tax revenues, the outlook for fiscal year 2026-27 remains cautious due to a variety of economic pressures. A significant driver of this caution is shifting consumer sentiment, as shoppers are becoming increasingly cost-conscious and value-focused while navigating the combined 13 ATTACHMENT 1

impacts of inflation and evolving tariff policies. Despite these challenges, there is a sense of optimism regarding potential Federal Reserve interest rate changes in 2026, which are expected to improve consumer financing conditions and potentially stimulate growth.

TRANSIENT OCCUPANCY TAX
Transient Occupancy Tax (“TOT”) is levied at 10% of the rent charged by a hostelry operator within the City. Adopted at $9,764,905, TOT accounts for 25% of revenues and assumes continued occupancy at the current fiscal year’s rate. The City of Carmel-bythe-Sea has seen generally positive growth in TOT driven by higher daily room rates and stable occupancy compared to the previous fiscal year. July-August remains the City’s highest revenue-generating period while January-February is still considered the City’s tourism off season. The primary driver for increased tax revenue appears to be rising room rates. The average daily rate for the fiscal year to date is $397.36, up 6.80% from the prior year's annual average. Occupancy has remained relatively stable. Even with a decrease in the total rooms available, TOT collections show higher demand for the existing inventory.

The City has historically outperform its initial budget assumptions for TOT. While the current fiscal year has been robust, the City’s official outlook for fiscal year 2026-27 remains optimist. Statewide forecasts for the Restaurant and Hotel sector project a

2.8% growth for fiscal year 2026-27. The full reopening of Highway 1 and a new direct flight service from Chicago to Monterey are expected to boost visitor volume.

International tourism is forecast to rise 2.7%, supported by San Francisco and Los Angeles hosting the 2026 FIFA World Cup.

Fiscal Year * TOT Sales ** Property
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 $9,559,155 $10,870,120 $9,147,434
2026 Estimated $9,526,737 $10,992,917 $9,445,000
2027 Budget $9,764,905 $11,190,440 $9,680,989
*Ending June 30th
** Combination of Bradley Burns & Measure C 1.5%
14 ATTACHMENT 1

CHARGES FOR SERVICES
The City of Carmel-by-the-Sea is a unique coastal community that takes pride in providing high-quality services to its residents and visitors. To maintain essential services—such as public safety, forest and beach maintenance, and library services—the City must ensure that its fee-supported services are accurately priced to recover the actual cost of providing them. These fee supported services make up the revenue category Charges for Services, which accounts for 9% of the City’s total budgeted revenue. The fiscal year 2026-27 budget of Charges for Services has been adjusted to reflect the change in fees presented in the fiscal year 2026-27 Master User Fee Schedule along with no change to number of services provided.

OTHER
Other Revenue budgeted at $4,839,968 sources make up the final 13% of the budgeted revenues. Other Revenue is made up of business license tax, franchise fees, grant, intergovernmental funding and interest and investment earnings. Interest and investment earnings are budgeted higher than in the prior fiscal year, as the City has been more strategic in its investments.
$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
15 ATTACHMENT 1

EXPENDITURES
The FY 26-27 Budget totals $41.3 million, consisting of the following expenditures:
· ▪ Operating Budget totals $32.3 million, or 78%, of the citywide budget · ▪ Debt service totals $518,900, or 1% of the citywide budget · ▪ Capital outlay, including Capital Improvement Projects ($7.9 million) and Vehicles and Equipment ($0.6 million), makes up 21% of the budget The Operating Budget encompasses the City’s departments and services. Debt Service is based upon required payments toward bonds issued by the City or by other governmental agencies on behalf of the City. As shown in the chart below, the FY 26-27 Budget includes the Operating Budget, Pension Unfunded Liability (“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 $15,030,430
Outside Services 11,286,625
Other Expenditures 2,978,747
Pension 2,972,561
Capital Outlay 8,503,680
Debt Service 518,900
Total $41,290,943
16 ATTACHMENT 1

The City’s largest expenditure is related to the cost of personnel. Salaries and benefits total $15 million and account for 36% of the citywide budget. The second largest type of expenditure is Outside Services. This category includes various types of expenditures, 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 services provided by the City of Monterey ($3.7 million, $2.2 million respectively); support for the operations of the Sunset Center and other economic development activities ($1.2 million); legal services ($495,000); tree care and landscape maintenance ($640,000); fuel reduction ($150,000); and janitorial service ($294,000, including all parks). Capital Outlay is the third largest type of expenditure at $8.5 million, or 21% 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. In addition, Pension expenses total $3 million, or 7%, of the budget and only include the annual required unfunded pension liability premium.

The citywide budget is rounded out with Debt Service ($509,100) accounting for 1% of the citywide budget.

Together, the above budgeted operating expenditures represent 84% of budgeted revenues. This compares favorably to a budget policy that operating expenditures be no more than 90% of revenues.

Total expenditures also include budgeted Capital Outlay of $8.5 million. This budgeted capital outlay represents 22% of budgeted revenues, compared to a budget policy that capital outlay expenditures be a minimum of 10% of budgeted revenues. While this budgeted Capital Outlay of 22% is a positive variance the 10% minimum, it exceeds the amount of revenue available, causing the City to have to dip into fund balance reserves.

EXPENDITURES BY FUNCTION
Another way to view operating expenditures is by function, as depicted in the FY 26-27 illustration below. Capital Outlay makes up 21% 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 13% of the budget, as it includes the City’s unfunded actuarial pension liability premium. In total, Administration, Council, Planning, Legal, Economic Development (including the Sunset Center), and Library and Community Activities represent the remaining 24% of the budget expenditures. 17 ATTACHMENT 1

RESERVE OF FUND BALANCE
In past years the City made an additional annual transfer of fund balance to the Section 115 Pension Unfunded Liability trust ($1.0 million) for pension mitigation. The trust has been built-up to help reduce the long-term liability for pensions. This year the City will forgo transferring funds to the 115 Pension Trust and will instead Assign fund balance of $1 million to the City’s Housing Trust Reserve.

Total Expenditures Budget %
Administration $3,652,613 9%
Citywide 5,316,701 13%
Council 236,418 1%
Debt 518,900 1%
Legal 495,000 1%
Planning 2,429,695 6%
Ambulance 2,329,489 6%
Fire 3,797,984 9%
Police 5,401,414 13%
Marketing 1,222,947 3%
Library 1,411,947 3%
Community Activities 286,647 1%
Public Works 5,687,508 14%
Operating Budget $32,787,263 79%
Capital 8,503,680 21%
Total $41,290,943 100%
18 ATTACHMENT 1

Authorized Positions
FY 25/26 FY 26/27
Department and Title Adopted Recommended 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 Technician 0.00 1.00 1.00
Administrative Coordinator 1.00 0.00 -1.00
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 1.00 1.00 0.00
Information Services / Network Manager 1.00 1.00 0.00
IT Analyst 0.00 1.00 1.00
IT Help Desk/Technician 1.00 0.00 -1.00
IT Interns 0.00 0.50 0.50
Administration Total 12.00 12.50 0.50
Community Activities
Community Services Assistant 0.50 0.00 -0.50
Administrative Analyst 0.00 1.00 1.00
Executive Assistant 0.50 0.00 -0.50
Community Activities Total 1.00 1.00 0.00
Library
Library Director 1.00 1.00 0.00
Supervising Librarian 2.00 2.00 0.00
Librarian 1.00 1.00 0.00
Library Associate 3.00 3.00 0.00
Library Assistant 1.00 1.00 0.00
Executive Assistant 0.50 0.00 -0.50
Administration Technician 0.00 1.00 1.00
Librarian II (Local History) 0.00 0.00 0.00
Hourly Librarian 1.00 0.50 -0.50
Hourly Library Assistant 2.00 2.00 0.00
Library Total 11.50 11.50 0.00
19 ATTACHMENT 1

FY 25/26 FY 26/27
Department and Title Adopted Recommended Change
Community Planning & Building
Planning & Building Services Director 1.00 1.00 0.00
Principal Planner 2.00 2.00 0.00
Senior Planner 1.00 1.00 0.00
Associate Planner 2.00 2.00 0.00
Assistant Planner 0.50 0.50 0.00
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 1.50 1.50 0.00
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 1.00 -1.00
Streets Maintenance Worker I/II 5.00 6.00 1.00
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
Capital Program Manager 0.00 1.00 1.00
Project Manager 2.00 2.00 0.00
City Forester 1.00 1.00 0.00
Assistant City Forester 1.00 1.00 0.00
Tree Climber & Care Specialist 1.00 1.00 0.00
Administrative Analyst 1.00 1.00 0.00
F&B Maintenance Worker I/II 3.00 3.00 0.00
Tree Permit Technician 1.00 1.00 0.00
Public Works Total 25.00 26.00 1.00
Police
Public Safety Director 1.00 1.00 0.00
Police Commander 1.00 1.00 0.00
Sergeant 3.00 3.00 0.00
Police Officer 10.00 10.00 0.00
Police Services Supervisor 1.00 1.00 0.00
Police Services Officer 6.00 5.50 -0.50
Community Services Officer/Animal Control 2.00 2.50 0.50 Police Total 24.00 24.00 0.00
Citywide Total Funded Positions 90.50 92.00 1.50
20 ATTACHMENT 1

OPERATING BUDGET
21 ATTACHMENT 1

CITY COUNCIL
The City Council consists of the Mayor and four Councilmembers, elected at large by the citizens of Carmel-by-the-Sea on a non-partisan basis. The City Council is the policymaking legislative body of the City. The Council adopts the annual budget, enacts ordinances, and approves major contracts, acquisitions, and leases. With the advice and assistance of the City Administrator and City Attorney, the City Council reviews proposals to meet the community’s needs, initiates action for new policies and allocates resources.

YTD 2025-2026 WORKLOAD INDICATORS / PERFORMANCE MEASURES · 33 City Council meeting
· 136 Hours of City Council meetings
· 79 other City boards, committees and commission meetings · 67 Resolutions passed
· 5 Ordinances passed
2025-2026 INITIATIVES AND ACCOMPLISHMENTS
· Street Addresses Implementation
· Entered MOU with the Carmel Public Library Foundation to facilitate renovations at the historic Harrison Memorial Library
· Submitted revised draft Housing Element to the State of California for review · Completed contract with Monterey Fire to operate Ambulance · Established pickleball regulations by ordinance
· Adopted updated Fire Hazard Maps
· Adopted a Paid Parental Leave policy
2026-2027 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; 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; develop a facilities master plan.
· 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 $20,000 for the Council discretionary grant program, $3,000 for United Way 211, $4,000 for the Monterey County Film Commission, $7,500 22 ATTACHMENT 1

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.

City Council
Account Number Account Description
FY24-25
Actual
FY25-26
Estimated
Actual
FY26-27
Recommended
Budget
101-110-00-41008 Salaries -Elected $10,101 $9,600 $9,600 101-110-00-41101 Retirement 175 179 179
101-110-00-41104 Health Insurance 29,484 24,755 40,109
101-110-00-41105 Social Security 496 0 372
101-110-00-41106 Medicare 147 139 139
101-110-00-41108 Worker's Comp 3,122 514 429
Salaries & Benefits Subtotal $43,525 $35,187 $50,828
101-110-00-42005 Community Promotions $127,060 $128,500 $112,500 101-110-00-42007 Regional Memberships 47,428 53,065 54,240 101-110-00-42101 Office Supplies 0 450 500
101-110-00-42302 Conferences & Meetings 14,105 31,550 18,350 Services & Supplies Subtotal $188,594 $213,565 $185,590 Total $232,118 $248,752 $236,418
Regional Memberships
Account Number Account Description
FY24-25
Actual
FY25-26
Estimated
Actual
FY26-27
Recommended
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 20,875 101-110-00-42007 CoastWalks/Coastal Trail Association 300 300 315 101-110-00-42007 Carmel Chamber of Commerce 475 475 500 Total $50,546 $50,546 $54,240
23 ATTACHMENT 1

CITY ATTORNEY
The City Council appoints the City Attorney. The City Attorney represents the City as legal counsel and provides legal advice and/or training to the City Council, City Administrator, boards, commissions, and departments; investigates and resolves claims against the City; defends the City in litigation and administrative actions; initiates and prosecutes litigation on behalf of the City; and drafts and reviews legal documents and agenda items.

YTD 2025-2026 WORKLOAD INDICATORS / PERFORMANCE MEASURES · 744 hours logged by the City Attorney
· 703 hours logged by City Attorney staff
· 172 hours logged by other legal service providers

BUDGET SUMMARY AND SERVICE IMPACTS
The FY 26-27 City Attorney budget totals $495,000 and consists of $395,000 for general legal services and $100,000 for other specialized legal assistance from the City attorney’s office, including labor negotiations and personnel. The budget also includes $3,500 for the City attorney’s annual performance evaluation.

City Attorney
Account Number Account Description
FY24-25
Actual
FY25-26
Estimated
Actual
FY26-27
Recommended
Budget
101-112-00-42001 Contract Services $528,109 $442,000 $395,000 101-112-00-42004 Legal Costs 22,211 75,000 100,000
Total $550,320 $517,000 $495,000
24 ATTACHMENT 1

ADMINISTRATION
The City Administrator is appointed by the City Council and is ultimately responsible for the enforcement of City laws and ordinances; ensuring that the orders of the City Council are executed; preparing the budget and monitoring City finances; and managing day-to-day operations of all City Departments. The Assistant City Administrator serves at the behest of the City Administrator to assist in managing the activities and operations of the City, act in the absence of the City Administrator, and serve as the Director of the centralized administrative city functions of City Clerk, Finance, Human Resources, and Information Technology.

YTD 2025-2026 WORKLOAD INDICATORS / PERFORMANCE MEASURES · 199 PRA’s requested
· 539 fixed location and 1,071 in & about
business licenses issued
· 403 high heel permits issued
· Awarded Certificate of Achievement for
Excellence in Financial Reporting for the
City’s Annual Comprehensive Financial
Report for the Fiscal Year ended June 30,
2024.
· 2,497 invoices processed
· 10 vacant positions filled, including Police
Chief and Library Director
2025-2026 INITIATIVES AND ACCOMPLISHMENTS
· Implemented an electronic payment portal for the collection of administrative fees, including business licenses, TOT tax collections and CRID administration · New IT internship program established
· Street Addresses implementation program started
· Approved ballot measures for new revenues
2026-2027 PRIORITIES
· Digitize all historic City records, including Resolutions, Ordinances, and · Meeting Minutes, to improve accessibility and preserve institutional history. · Strategically implement Laserfiche software to create a centralized, web based 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. · Creation of web dashboard interface for more transparent fiscal reporting · 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.
· Implement Citywide Customer Service Program
25 ATTACHMENT 1

BUDGET SUMMARY AND SERVICE IMPACTS
Office of the City Administrator
Account Number Account Description
FY24-25
Actual
FY25-26
Estimated
Actual
FY26-27
Recommended
Budget
101-111-00-41001 Salaries $1,747,030 $1,960,191 $1,872,786 101-111-00-41003 Salaries -Part time 0 23,135 23,135
101-111-00-41005 Overtime 29 0 0
101-111-00-41101 Retirement 106,487 123,548 109,868
101-111-00-41103 Deferred Compensation 52,111 46,541 41,161 101-111-00-41104 Health Insurance 324,463 422,125 456,957 101-111-00-41105 Social Security 0 1,434 1,434
101-111-00-41106 Medicare 25,151 28,931 27,492
101-111-00-41107 LTD/STD/Life 1,357 4,226 5,386
101-111-00-41108 Worker's Comp 75,569 104,586 84,706
101-111-00-41109 Benefits-MOU Obligations 9,048 10,690 9,707 Salaries & Benefits Subtotal $2,341,245 $2,725,407 $2,632,632 101-111-00-42001 Contract Services $216,785 $566,500 $289,054 101-111-00-42002 Recruiting Services 29,765 57,500 50,500 101-111-00-42003 Auditing Services 77,325 96,500 75,000 101-111-00-42006 Records Management 7,528 25,000 26,000 101-111-00-42009 Advertising and Legal Notice 15,209 21,000 10,700 101-111-00-42015 Other Services 27,052 24,800 24,950
101-111-00-42101 Office Supplies 7,860 7,875 3,000
101-111-00-42102 Publications & Subscriptions 318,773 275,400 261,397 101-111-00-42105 Materials and Supplies 2,048 500 3,000 101-111-00-42106 Small Tools and Equipment 492 0 500
101-111-00-42115 Other Supplies 0 5,000 250
101-111-00-42202 Equipment Maintenance 7,486 8,750 10,000 101-111-00-42301 Training & Education 7,888 18,400 12,400 101-111-00-42302 Conferences & Meetings 13,636 17,625 18,200 101-111-00-42304 Dues & Memberships 9,426 3,580 6,780
101-111-00-42306 Employee Programs 2,784 6,000 6,000
101-111-00-42307 Employee Appreciation Costs 19,595 20,000 17,000 101-111-00-42403 Printing 8,722 5,900 9,000
101-111-00-42404 Shipping/Postage/Freight 16,708 500 500 101-111-00-42405 Telephone and Communications 161,058 125,000 125,000 101-111-00-42406 Bank & Merchant Fees 6,321 4,500 34,000 101-111-00-42407 Computer Non Capital 10,615 40,000 33,750 101-111-00-42410 Pre-employment Costs 2,418 4,000 3,000 Services & Supplies Subtotal $969,492 $1,334,330 $1,019,981 Total $3,310,737 $4,059,737 $3,652,613
26 ATTACHMENT 1

STAFFING
FY 25/26 FY 26/27
Department and Title Adopted Recommended Change
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 Technician 0.00 1.00 1.00
Administrative Coordinator 1.00 0.00 -1.00
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 1.00 1.00 0.00
Information Services / Network Manager 1.00 1.00 0.00
IT Analyst 0.00 1.00 1.00
IT Help Desk/Technician 1.00 0.00 -1.00
IT Interns 0.00 0.50 0.50
Administration Total 12.00 12.50 0.50

ADMINISTRATION
The Administration divisional budget includes funding for the City’s Administrator’s performance evaluation within contract services, office supplies, conferences and meetings and employee appreciation costs.

Administration
Account Number Account Description
FY24-25
Actual
FY25-26
Estimated
Actual
FY26-27
Recommended
Budget
101-111-10-42001 Contract Services $23,420 $152,585 $34,000 101-111-10-42015 Other Services 27,052 2,350 2,500
101-111-10-42101 Office Supplies 7,205 6,375 1,500
101-111-10-42102 Publications & Subscriptions 335 540 550 101-111-10-42302 Conferences & Meetings 11,202 5,325 9,200 101-111-10-42304 Dues & Memberships 3,691 1,350 4,550
101-111-10-42307 Employee Appreciation Costs 470 0 500
101-111-10-42403 Printing 0 100 200
101-111-10-42404 Shipping/Postage/Freight 16,708 500 500 Services & Supplies Subtotal $90,084 $169,125 $53,500
27 ATTACHMENT 1

CITY CLERK
The City Clerk provides timely and accessible service to all inquiries and requests for public information and records, 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 maintains 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.

City Clerk
Account Number Account Description
FY24-25
Actual
FY25-26
Estimated
Actual
FY26-27
Recommended
Budget
101-111-11-42001 Contract Services $56,039 $48,300 $62,754 101-111-11-42006 Records Management 7,528 25,000 26,000 101-111-11-42009 Advertising and Legal Notice 13,422 15,000 10,000 101-111-11-42101 Office Supplies 321 1,000 1,000
101-111-11-42115 Other Supplies 0 0 5,000
101-111-11-42302 Conferences & Meetings 1,599 3,000 3,000 101-111-11-42304 Dues & Memberships 540 500 500
101-111-11-42403 Printing 3,686 2,500 5,000
Services & Supplies Subtotal $83,136 $95,300 $113,254

FINANCE
The Finance Department provides financial analysis and reporting through budget development and expenditure monitoring. It also handles routine operations—including accounts payable, payroll, tax collection, and licensing—while managing investments and debt and administrating the hostelry and restaurant improvement districts.

Finance
Account Number Account Description
FY24-25
Actual
FY25-26
Estimated
Actual
FY26-27
Recommended
Budget
101-111-12-42001 Contract Services $77,781 $137,200 $44,800 101-111-12-42003 Auditing Services 77,325 96,500 75,000 101-111-12-42101 Office Supplies 31 0 0
101-111-12-42102 Publications & Subscriptions 1,357 29,350 30,500 101-111-12-42301 Training & Education 2,525 2,400 2,400 101-111-12-42304 Dues & Memberships 150 350 350
101-111-12-42403 Printing 4,673 2,900 3,800
101-111-12-42406 Bank & Merchant Fees 6,321 4,500 34,000 Services & Supplies Subtotal $170,162 $273,200 $190,850 28 ATTACHMENT 1

HUMAN RESOURCES
Human Resources (HR) recruits, develops, and retains a diverse, well-qualified workforce that reflects the high standards of the community, and leads the City Departments in positive employee relations, talent management, succession planning, and employee engagement. Services include employee orientation, recruitment, performance assessment, compensation and job classification assessments, safety and wellness programs, and organization development. HR Staff is responsible for negotiating Memorandums of Understanding with the City’s three labor bargaining units, subject to Council direction and approval.

HR
Account Number Account Description
FY24-25
Actual
FY25-26
Estimated
Actual
FY26-27
Recommended
Budget
101-111-13-42001 Contract Services $9,080 $68,415 $64,000 101-111-13-42002 Recruiting Services 29,765 57,500 50,500 101-111-13-42009 Advertising & Legal Notice 1,787 6,000 700 101-111-13-42101 Office Supplies 146 500 500
101-111-13-42102 Publications & Subscriptions 131 25,300 25,300 101-111-13-42301 Training & Education 1,373 6,000 2,500 101-111-13-42302 Conferences & Meetings 834 3,800 2,000 101-111-13-42304 Dues & Memberships 5,045 680 680
101-111-13-42306 Employee Programs 2,784 6,000 6,000
101-111-13-42307 Employee Appreciation Costs 19,125 20,000 16,500 101-111-13-42403 Printing 362 400 0
101-111-13-42410 Pre-employment Costs 2,418 4,000 3,000 Services & Supplies Subtotal $72,850 $198,595 $171,680

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 continuously improves essential technology infrastructure for enabling day-to-day operations of the City.
29 ATTACHMENT 1

IT
Account Number Account Description
FY24-25
Actual
FY25-26
Estimated
Actual
FY26-27
Recommended
Budget
101-111-14-42001 Contract Services $50,466 $160,000 $83,500 101-111-14-42015 Other Services 0 22,450 22,450
101-111-14-42101 Office Supplies 156 0 0
101-111-14-42102 Publications & Subscriptions 316,949 220,210 205,047 101-111-14-42105 Materials and Supplies 2,048 500 3,000 101-111-14-42106 Small Tools and Equipment 492 0 500
101-111-14-42202 Equipment Maintenance 7,486 8,750 10,000 101-111-14-42301 Training & Education 3,820 10,000 7,500 101-111-14-42302 Conferences & Meetings 0 5,500 4,000
101-111-14-42304 Dues & Memberships 0 700 700
101-111-14-42405 Telephone and Communications 161,058 125,000 125,000 101-111-14-42407 Computer Non capital 8,327 40,000 33,750 Services & Supplies Subtotal $550,801 $593,110 $495,447 30 ATTACHMENT 1

CITYWIDE (NON-DEPARTMENTAL)
Citywide, or Non-Departmental costs, are expenses that are spread across the entire organization. These items include the unfunded pension liability, the City’s insurance premiums for general liability and property insurance, and the City’s share of costs toward retiree healthcare. Other operational expenses include utilities, property tax assessments and the administrative fee charged by Monterey County for property tax collection.

YTD 2025-2026 WORKLOAD INDICATORS / PERFORMANCE MEASURES · $1 million contribution to the City’s §115 Pension Mitigation Trust

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 $264,403 or 9.7%, in FY 26-27 compared to the FY 25-26 Adopted Budget.
· The City’s liability insurance premiums are budgeted at $977,140, a decrease by $126,800, or 11%.
· Changes to the City’s out-of-pocket deductible per occurrence increased and the budget reflects the increase in the City’s exposure.

Non-Departmental
Account Number Account Description
FY24-25
Actual
FY25-26
Estimated
Actual
FY26-27
Recommended
Budget
101-130-00-42501 Liability Insurance Premium $964,366 $1,103,940 $977,140 101-130-00-42503 PERS UAL Payment 2,298,486 2,708,158 2,972,561 101-130-00-42504 Insurance Claims Paid 3,481 100,000 450,000 101-130-00-42505 Utilities 493,804 464,000 477,000
101-130-00-42506 Property Tax Assessments 94,134 100,000 100,000 101-130-00-42508 Unemployment Costs 17,067 15,000 18,000 101-130-00-42509 Citywide Mailing Costs 0 24,845 25,000 101-130-00-42510 Retiree Health Share 84,578 87,000 85,000 101-130-00-42511 County Property Tax Admin Fees 57,868 75,000 75,000 101-130-00-42512 Forest Theater Utilities 0 10,000 10,000 Total $4,013,784 $4,687,943 $5,189,701
31 ATTACHMENT 1

DEBT SERVICE (FUND 401)
Debt Service includes payments for the 2020 Refunding Lease Revenue Bonds. These payments total $518,900 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 SOURCE
General Fund revenue is the source of funding for debt service obligations. The General Fund (Fund 101) will transfer $518,900 to Debt Service (Fund 401) in FY 26-27 with approximately 75% of that going to the principal.

Debt Service: Total
Account Number Account Description
FY24-25
Actual
FY25-26
Estimated
Actual
FY26-27
Recommended
Budget
401-411-00-44001 Principal $375,000 $380,000 $405,000
401-411-00-44002 Interest 133,526 126,600 111,400
401-411-00-44003 Administrative Fees 2,105 2,500 2,500
Total $510,631 $509,100 $518,900
FY 24-25 Debt Service by Bond
Bond Principal Interest Fee Total
Sunset Center $405,000 $111,400 $2,500 $518,900
Total $405,000 $111,400 $2,500 $518,900
32 ATTACHMENT 1

ECONOMIC DEVELOPMENT
Two of the City’s unique facilities include the performing arts venue known as the Sunset Community and Cultural Center and the Forest Theater, an outdoor amphitheater. These locations support musical performances, lectures and other cultural activities that enhance the quality of life for residents and promote the City and the Monterey Peninsula as an artistic and cultural destination.

In 2017, the City entered into a lease agreement with the Sunset Cultural Center, Inc. (SCC) for the management of these facilities and the terms of the lease require the City to make an annual grant to SCC to support operations. The annual grant for management of only Sunset Center is in this fiscal year’s 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.

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-the-Sea.

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, 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
Economic Development
Account Number Details
FY24-25
Actual
FY25-26
Estimated
Actual
FY26-27
Recommended
Budget
101-122-00-42008 SCC- Sunset Center Operating Grant $750,000 $750,000 $750,000 101-122-00-42008 See Monterey 226,297 226,297 292,947
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 $1,222,947
33 ATTACHMENT 1

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.

YTD 2025-2026 WORKLOAD INDICATORS / PERFORMANCE MEASURES · 21,773 reference and information questions were
answered
· 1,827 library cards were issued
· 98,658 library items were circulated
· 8,643 people attended library programs
· 133,376 visits were made to the library
· 8,884 logins were made to library wi-fi
· 122,000 digital items (e-books, audios,
magazines, films, music) were accessed
· 450 items added to the online historical collection
· 6 new oral history interviews were captured
2025-2026 INITIATIVES AND ACCOMPLISHMENTS
Increased the number of adult, kids, and teen
programs. Attendance at all programs continues to grow and patrons are enjoying the variety of programs.
· Hired an Interim Library Director and completed the recruitment and hiring for a permanent Library Director.
· Actively working on the FY 2025-27 Library Strategic Plan objectives. In March 2026 the Library Board of Trustees established a Library Strategic Plan Ad Hoc Committee to work closely with staff. Staff provided an update. 2026-2027 PRIORITIES
· Continue work to accomplish FY 2025-2027 Library Strategic Plan objectives. · Relocate and open a temporary library for operation by fall 2026 while the Harrison Memorial Library restoration project is under construction. 34 ATTACHMENT 1

· Participate in design development and construction processes for the Harrison Memorial Library restoration project.
· Establish a circulating collection for all ages at the Park Branch Library. · Open the Park Branch Library for Saturday operations.

BUDGET SUMMARY AND SERVICE IMPACTS
Library
Account Number Account Description
FY24-25
Actual
FY25-26
Estimated
Actual
FY26-27
Recommended
Budget
101-120-00-41001 Salaries $813,182 $918,714 $859,112
101-120-00-41003 Salaries -Part time 126,365 263,505 228,720 101-120-00-41101 Retirement 54,785 57,229 38,599
101-120-00-41103 Deferred Compensation 10,275 11,436 6,300 101-120-00-41104 Health Insurance 138,521 159,635 156,174 101-120-00-41105 Social Security 6,707 16,344 27,819
101-120-00-41106 Medicare 13,485 17,155 15,774
101-120-00-41107 LTD/STD/Life 886 1,399 1,287
101-120-00-41108 Worker's Comp 45,503 61,582 48,602
101-120-00-41109 Benefits-MOU Obligations 14,242 14,986 14,560 Salaries & Benefits Subtotal $1,223,951 $1,521,984 $1,396,947 101-120-00-42001 Contract Services $5,666 $10,500 $15,000 Services & Supplies Subtotal $5,666 $10,500 $15,000
Total $1,229,617 $1,532,484 $1,411,947

STAFFING
FY 25/26 FY 26/27
Department and Title Adopted Recommended Change
Library
Library Director 1.00 1.00 0.00
Supervising Librarian 2.00 2.00 0.00
Librarian 1.00 1.00 0.00
Library Associate 3.00 3.00 0.00
Library Assistant 1.00 1.00 0.00
Executive Assistant 0.50 0.00 -0.50
Administration Technician 0.00 1.00 1.00
Librarian II (Local History) 0.00 0.00 0.00
Hourly Librarian 1.00 0.50 -0.50
Hourly Library Assistant 2.00 2.00 0.00
Library Total 11.50 11.50 0.00
35 ATTACHMENT 1

COMMUNITY ACTIVITIES
The Community Activities Department encourages and
supports the interaction of neighbors, friends, families and visitors through the shared experience of special
events, programs, and gatherings which bring the
community together safely on the City’s streets and in
its parks and create opportunities to interact, celebrate, enrich people’s lives, and promote inclusiveness. Its
mission is to inspire connections and strengthen
community bonds by creating safe, inclusive events that foster belonging through shared celebrations and
gatherings.

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).

YTD 2025-2026 WORKLOAD INDICATORS / PERFORMANCE MEASURES · 125 beach, film, parking stall, special event and Car Week permits · 11 planned and facilitated City Special Events.
2025-2026 INITIATIVES AND ACCOMPLISHMENTS
· Reestablished the Community
Activities Commission
· Updated Mission Statement
2026-2027 PRIORITIES
· Plan special events to celebrate the
City’s 110th Birthday in October
2026
· Continue to engage the
Community Activities Commission
in planning and executing City events
· Continue to explore potential collaborations with community partners 36 ATTACHMENT 1

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
Actual
FY25-26
Estimated
Actual
FY26-27
Recommended
Budget
101-121-00-41001 Salaries $48,506 $62,351 $118,872
101-121-00-41003 Salaries -Part time 0 28,649 0
101-121-00-41101 Retirement 4,652 5,553 10,921
101-121-00-41103 Deferred Compensation 600 1,219 1,200
101-121-00-41104 Health Insurance 5,667 14,324 14,491
101-121-00-41105 Social Security 0 1,776 0
101-121-00-41106 Medicare 677 1,332 1,724
101-121-00-41107 LTD/STD/Life 51 209 418
101-121-00-41108 Worker's Comp 4,375 4,768 5,311
Salaries & Benefits Subtotal $64,528 $120,182 $152,937
101-121-00-42001 Contract Services $81,616 $111,040 $107,890 101-121-00-42005 Community Promotions 11,717 9,340 19,090 101-121-00-42009 Advertising and Legal Notice 3,410 6,950 5,000 101-121-00-42101 Office Supplies 169 200 200
101-121-00-42403 Printing 241 1,440 1,530
Services & Supplies Subtotal $97,153 $128,970 $133,710
Total $161,681 $249,152 $286,647

STAFFING
FY 25/26 FY 26/27
Department and Title Adopted Recommended Change
Community Activities
Community Services Assistant 0.50 0.00 -0.50
Administrative Analyst 0.00 1.00 1.00
Executive Assistant 0.50 0.00 -0.50
Community Activities Total 1.00 1.00 0.00
37 ATTACHMENT 1

COMMUNITY PLANNING AND BUILDING
The Community Planning and Building Department (CPB) includes the Administration, 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.

YTD 2025-2026 WORKLOAD INDICATORS / PERFORMANCE MEASURES · 344 Planning Permits Applications
· 53 Business Licenses Applications
· 534 Building Permits Applications
· 203 Code Compliance Cases
· 10 Transient Rental Case
· 233 Encroachment Permit Applications
2025-2026 INITIATIVES AND ACCOMPLISHMENTS
· Adopted the updated Fire Hazard Severity Zone Map via ordinance. · Adopted the Historic Context Statement update and received certification from the California Coastal Commission.
· Adopted consultant contract with Opticos Design and commenced work on the City’s Objective Design and Development Standards.
· Adopted the Water Allocation Resolution placing 14-acre feet of water received from the Monterey Peninsula Water Management District into six water allocation categories.
· Created a Permit Streamline Task Force to elicit suggestions for permit process improvements.
· Conducted internal staff training with the goal of providing cross-training opportunities resulting in holistic project review.
· Adopted consultant contract with Granicus for improved Short-Term Rental compliance.
· Received Planning Commission recommendation on a draft Roof Material Policy. · Continued work with the Affordable Housing Alternatives (“AHA”) resident group and finalized the 6th Cycle General Plan Housing Element amendment draft.
· Submitted the 6th Cycle General Plan Housing Element amendment to the California Department of Housing and Community Development for review and certification.
· Provided assistance to Public Works on the Carmel Coastal Hazards Local Coastal Program update.
· Received Planning Commission direction on the draft Accessory Dwelling Unit Ordinance Update.
· Adopted the Building Code Update Ordinance.
· Commenced quarterly check-in meetings with California Coastal Commission staff.
· Created a Long-Range Planning work plan.
38 ATTACHMENT 1

· Updated Staff Report and Draft Resolution templates.
2026-2027 PRIORITIES
· Adoption of updated Design Guidelines and Zoning Code through the Design Traditions 1.5 Project.
· Adoption of ordinances for the 6th Cycle General Plan Housing Element implementation.
· Complete the scanning/digitizing of rolled building plans currently in storage at Vista Lobos.
· Adopt the General plan Safety Element updates before the end of fiscal year 2027.
· Adoption of the updated Accessory Dwelling Unit Ordinance. · Engage staff to participate in more training opportunities to continue the professionalization and growth of the Community Planning and Building Department.
· Adopt necessary ordinances and policies to ensure development and construction consistency with update state laws on wildfire.
· Replace existing permitting software to increase efficiency and improve user (applicants and staff) experience.
· Continue to meet with the Permit Streamline Task Force to identify policy gaps and improve confusing/complex regulations and processes. · Continue to collaborate with Public Works to improve the permit process for interrelated tasks.
· Update and improve Planning handouts and checklists.
· Update and improve Building handouts and checklists.
· Update and improve Code Compliance handouts.
· Continue internal training program and include cross training with Public Works, Monterey Fire Department and California Coastal Commission staff. 39 ATTACHMENT 1

BUDGET SUMMARY AND SERVICE IMPACTS
Community Planning & Building
Account Number Account Description
FY24-25
Actual
FY25-26
Estimated
Actual
FY26-27
Recommended
Budget
101-115-00-41001 Salaries $1,131,924 $1,604,924 $1,604,331 101-115-00-41005 Overtime 1,440 0 0
101-115-00-41101 Retirement 60,897 85,614 84,808
101-115-00-41103 Deferred Compensation 8,000 12,216 12,300 101-115-00-41104 Health Insurance 231,680 339,397 366,940 101-115-00-41106 Medicare 15,942 23,254 23,262
101-115-00-41107 LTD/STD/Life 1,135 2,067 3,390
101-115-00-41108 Worker's Comp 51,954 83,899 71,704
101-115-00-41109 Benefits-MOU Obligations 18,587 23,623 22,880 Salaries & Benefits Subtotal $1,521,560 $2,174,995 $2,189,615 101-115-00-42001 Contract Services $221,867 $179,135 $179,185 101-115-00-42009 Advertising and Legal Notice 500 0 12,000 101-115-00-42101 Office Supplies 2,633 7,100 2,000
101-115-00-42102 Publications & Subscriptions 1,673 18,138 15,850 101-115-00-42104 Safety Equipment and Supplies 2,638 1,700 2,600 101-115-00-42106 Small Tools and Equipment 0 0 500
101-115-00-42107 Gas and Oil 250 100 0
101-115-00-42115 Other Supplies 2,962 4,300 1,400
101-115-00-42301 Training & Education 9,225 11,305 8,195 101-115-00-42302 Conferences & Meetings 5,735 10,700 6,620 101-115-00-42304 Dues & Memberships 5,084 6,760 6,930
101-115-00-42403 Printing 1,334 1,150 4,800
Services & Supplies Subtotal $253,902 $240,388 $240,080 Total $1,775,462 $2,415,383 $2,429,695

STAFFING
40 ATTACHMENT 1

ADMINISTRATION
The Administration Division provides administrative support, budgeting, scheduling and performance oversight of the Community Planning and Building operating divisions.

Community Planning & Building: Administration
Account Number Account Description
FY24-25
Actual
FY25-26
Estimated
Actual
FY26-27
Recommended
Budget
101-115-23-42001 Contract Services $0 $0 $5,250
101-115-23-42102 Publications & Subscriptions 0 0 250
101-115-23-42304 Dues & Memberships 0 0 1,200
Services & Supplies Subtotal $0 $0 $6,700

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.

Community Planning & Building: Planning
Account Number Account Description
FY24-25
Actual
FY25-26
Estimated
Actual
FY26-27
Recommended
Budget
101-115-20-42001 Contract Services $191,663 $79,200 $98,800 101-115-20-42009 Advertising and Legal Notice 500 0 12,000 101-115-20-42101 Office Supplies 2,633 7,100 2,000
101-115-20-42102 Publications & Subscriptions 1,613 1,138 600 101-115-20-42104 Safety Equipment and Supplies 2,638 1,700 2,600 101-115-20-42115 Other Supplies 1,210 575 0
101-115-20-42301 Training & Education 5,435 6,825 4,365 101-115-20-42302 Conferences & Meetings 1,695 4,000 950 101-115-20-42304 Dues & Memberships 3,800 4,680 3,500
101-115-20-42403 Printing 1,334 1,150 4,800
Services & Supplies Subtotal $212,523 $106,368 $129,615

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. 41 ATTACHMENT 1

Community Planning & Building: Building
Account Number Account Description
FY24-25
Actual
FY25-26
Estimated
Actual
FY26-27
Recommended
Budget
101-115-21-42001 Contract Services $16,055 $84,935 $65,635 101-115-21-42102 Publications & Subscriptions 60 17,000 15,000 101-115-21-42106 Small Tools and Equipment 0 0 500
101-115-21-42107 Gas and Oil 250 100 0
101-115-21-42115 Other Supplies 1,752 2,225 700
101-115-21-42301 Training & Education 1,700 4,480 1,830 101-115-21-42302 Conferences & Meetings 1,730 4,300 3,670 101-115-21-42304 Dues & Memberships 1,284 2,080 2,030
Services & Supplies Subtotal $22,831 $115,120 $89,365

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.

Community Planning & Building: Code Compliance
Account Number Account Description
FY24-25
Actual
FY25-26
Estimated
Actual
FY26-27
Recommended
Budget
101-115-22-42001 Contract Services $14,148 $15,000 $9,500 101-115-22-42115 Other Supplies 0 1,500 700
101-115-22-42301 Training & Education 2,090 0 2,000
101-115-22-42302 Conferences & Meetings 2,310 2,400 2,000 101-115-22-42304 Dues & Memberships 0 0 200
Services & Supplies Subtotal $18,548 $18,900 $14,400
42 ATTACHMENT 1

PUBLIC WORKS
The mission of the Public Works Department is to plan, design, construct, operate, and maintain public infrastructure, streets, sidewalks, storm drains, building facilities, the urban forest, parks, and beach that contribute to the health, safety, and well-being of the Village. Public Works consists of an administrative unit and five operating divisions:

Street Maintenance, Facilities Maintenance, Environmental Compliance, Project Management, and Forestry, Parks and Beach.

YTD 2025-2026 WORKLOAD INDICATORS / PERFORMANCE MEASURES · 133 Trees planted
· 157 Tree permits issued
· 54 tons of hot mix asphalt for in-house street
repairs
· 29 potholes filled
· 1,001 USA tickets
· 5,248 Linear Feet of asphalt overlay
· 1,430 sidewalk grinds
· 206 Encroachment Permits
2025-2026 INITIATIVES AND ACCOMPLISHMENTS
Street and Sidewalk Maintenance
· City-Wide Sidewalk Repairs: Initiated a major sidewalk shaving project and fixed 1,426 identified locations for safety.
· Contracted with Precision Concrete Cutting for a digital sidewalk assessment and mapping database.
· Asphalt and Berm Enhancements: Performed continuous hot-mix street repairs, fixed uneven pavement, and installed multiple hot-mix asphalt berms throughout the city to improve street drainage.
· Storm and Erosion Management: Cleaned storm drains to prepare for winter rains and managed multiple emergency erosion issues, including building rock drainage channels and repairing the 4th Avenue pathway and Serra Trail in the Mission Trail Nature Preserve (MTNP).
· Installed 16 new stop signs, repaired damaged street signs. · Maintained public sandbag station.
· Procured Compact Track Loader and two EV pickup trucks.

Habitat Restoration & Environmental Oversight
· North Dunes Restoration Project: Continued the removal of invasive ice plant and began clearing over 2.5 acres of it. Navigated the multi-year renewal process for the 5-year Coastal Development Permit.
· Carmel Beach Sea Level Rise/Adaptation Project: Completed a Socio-Economic Report, conducted community surveys and workshops, and presented the 43 ATTACHMENT 1

resulting Adaptation Pathway Report to both the Planning Commission and Forest & Beach Commission.

Stormwater & Waste Management
· Stormwater Compliance: Completed dryweather and wet-weather stormwater outfall sampling in coordination with Applied
Marine Science and the Monterey Sanctuary
Foundation.
· Conducted ongoing, periodic construction
site inspections, restaurant grease-trap
inspections, and successfully navigated an
intensive audit by the State Water Board.
· Waste Management: Executed a Franchise
Agreement MOU with ReGen and member
agencies. Coordinated the cleaning and
water-vacuuming of 30 downtown trash
cans and prepared records for CalRecycle
physical audits.
· Copper Gutter Policy: Installed BioChar
socks at the 4th Ave storm drain to test filtration and progressed the policy to the Planning Commission and City Council.

Facilities Improvements & Repairs
· Fire Station Upgrades: Completed construction to accommodate a new Fire Truck, while replacing the facility's epoxy flooring, relocating the turnout room, and indoor painting.
· Forest Theater: Completed repairs to the Forest Theater stage. · Sunset Center: Completed Phase II of exterior painting, replaced an elevator power unit.
· Completed Yoga Center reroofing project.
· First Murphy House: Repaired extensive dry rot.
· Installed A/C units at Vista Lobos, Public Works, and City Hall. · Installed new rollup door and upgraded security at the PW administrative office. · Installed new ADA handrails on the Ocean Ave side of Devendorf Park. · Completed Park Branch Library window repairs.

Urbanized Forest, Parks & Landscaping
· Completed the deferred maintenance “catchup plan” of removing dead trees and stumps, one year ahead of schedule.
· Carmel Forest Master Plan (CFMP): Completed the first draft, collected feedback from the steering committee and the public, created a dedicated webpage to track the project's progress, and advanced the plan into the CEQA environmental review process.
44 ATTACHMENT 1

· Fire Defense & Tree Maintenance: Removed hundreds of dead, dying, or hazardous trees, pruned for street clearance, and planted new trees. Created vehicle turnarounds in the MTNP.
· Tree Fine Ad-Hoc Committee: Formed an ad-hoc committee to overhaul the Tree Fee and Fine Schedule, specifically targeting unauthorized tree removals and damage during construction.
· Parks & Landscaping: Re-landscaped the Rio Road Medians, actively watered newly planted trees across the city, and modernized irrigation systems by replacing broken valves and control boxes at Devendorf Park and Vista Lobos.

Project Management (CIP)
· Shoreline Infrastructure: Brought the 10th and 12th Avenue Beach Stairs to 100% design completion and submitted them for bidding.
· Facilitated geotechnical investigations and concept designs for the 4th Ave Outfall and Sand Ramp.
· Initiated emergency engineering designs and tarping for the 11th Ave shoreline bluff erosion.
· Conglomerate Paving Project: Managed a
massive paving project that included city-wide
street paving, sidewalk repairs, and AC berm
installations.
· Process Improvements & Utilities Coordination:

Published a CIP Gantt chart and process
documents online for transparency.
· Coordinated extensive utility infrastructure
replacements across the city with CalAm and
CAWD.
2026-2027 PRIORITIES
· Construction of shoreline infrastructure repairs,
including beach stairs at 10th Avenue and 12th
Avenue
· Complete designs and begin construction of the
8th Avenue Sand Ramp
· Construct the Fourth Avenue outfall
· Construct the Junipero bypass drainage project
· Implement Copper Policy
· Repair retaining walls at Sunset Center
· Fire service backflows upgrades for City Hall and both libraries · City Hall exterior shingles replacement and handrail painting · Flanders Mansion window frame/gutter painting
· Repair roof leaks into Public Works garage
· ADA upgrades for 2nd elevator unit at Sunset Center
· Paint Vista Lobos building
· Upgrade electrical panel and install EV chargers at Vista Lobos 45 ATTACHMENT 1

· Complete fire fuel abatement along emergency exit routes and secondary exit routes
· Implement beautification projects, including the re-landscaping of the First Murphy park
· Install new split rail fencing at the north end of the North Dunes Habitat Restoration Area
· Continue North Dunes Restoration Improvements and Reporting, including removal of ice plant, acacia trees, and the protection of endangered plants · Complete the new Amendment to the Coastal Development Permit for the North Dunes Habitat Restoration Area
· Design MTNP stream projects 4 & 5

BUDGET SUMMARY AND SERVICE IMPACTS
46 ATTACHMENT 1

STAFFING
FY 25/26 FY 26/27
Department and Title Adopted Recommended Change
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 1.00 -1.00
Streets Maintenance Worker I/II 5.00 6.00 1.00
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
Capital Program Manager 0.00 1.00 1.00
Project Manager 2.00 2.00 0.00
City Forester 1.00 1.00 0.00
Assistant City Forester 1.00 1.00 0.00
Tree Climber & Care Specialist 1.00 1.00 0.00
Administrative Analyst 1.00 1.00 0.00
F&B Maintenance Worker I/II 3.00 3.00 0.00
Tree Permit Technician 1.00 1.00 0.00
Public Works Total 25.00 26.00 1.00

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.
47 ATTACHMENT 1

PW Administration
Account Number Account Description
FY24-25
Actual
FY25-26
Estimated
Actual
FY26-27
Recommended
Budget
101-119-40-42001 Contract Services $22,278 $19,700 $16,500 101-119-40-42009 Advertising and Legal Notice 4,722 4,075 4,400 101-119-40-42101 Office Supplies 1,263 6,000 5,000
101-119-40-42102 Publications & Subscriptions 6,615 19,000 860 101-119-40-42104 Safety Equipment and Supplies 13,898 11,000 0 101-119-40-42203 Vehicle Maintenance* 54 0 0
101-119-40-42301 Training & Education 9,002 14,000 16,800 101-119-40-42304 Dues & Memberships 1,426 4,060 4,195
101-119-40-42403 Printing 192 0 0
Services & Supplies Subtotal $59,449 $77,835 $47,755

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.

PW Street
Account Number Account Description
FY24-25
Actual
FY25-26
Estimated
Actual
FY26-27
Recommended
Budget
101-119-41-42001 Contract Services $50,277 $42,745 $31,200 101-119-41-42102 Publications & Subscriptions 0 0 7,000 101-119-41-42104 Safety Equipment and Supplies 0 0 10,000 101-119-41-42105 Materials and Supplies 88,253 71,500 80,100 101-119-41-42106 Small Tools and Equipment 2,611 17,500 10,800 101-119-41-42107 Gas and Oil 32,023 38,000 41,000
101-119-41-42202 Equipment Maintenance 13,515 30,555 32,000 101-119-41-42203 Vehicle Maintenance 27,027 39,500 40,500 101-119-41-42409 Rentals 6,879 10,000 20,600
Services & Supplies Subtotal $220,585 $249,800 $273,200 48 ATTACHMENT 1

FACILITIES MAINTENANCE
The Facilities Maintenance Division
maintains and repairs 20 City-owned
buildings and facilities totaling 137,000
square feet, including 8 historic
buildings nearly 100 years old, supports
facility renovation capital
improvements, oversees the janitorial
contract, obtains quotes and manages
building trade contractors, implements
ADA projects, and performs annual fire
safety apparatus, generators, and
backflow inspections.

PW Facilities
Account Number Account Description
FY24-25
Actual
FY25-26
Estimated
Actual
FY26-27
Recommended
Budget
101-119-42-42001 Contract Services $598,094 $624,585 $578,880 101-119-42-42105 Materials and Supplies 68,301 99,500 72,450 Services & Supplies Subtotal $666,395 $724,085 $651,330

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 the ReGen Monterey and Monterey Regional Stormwater 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.

PW Environmental Compliance
Account Number Account Description
FY24-25
Actual
FY25-26
Estimated
Actual
FY26-27
Recommended
Budget
101-119-43-42001 Contract Services $149,724 $188,200 $237,510 101-119-43-42408 Permits and Licenses 11,814 14,500 15,225 Services & Supplies Subtotal $161,538 $202,700 $252,735 49 ATTACHMENT 1

PROJECT MANAGEMENT
The Project Management Division implements planning, design, engineering, public bidding, and construction of capital improvement projects, including transportation, drainage, and facility renovation projects, performs condition assessments, manages consultants and contractors, coordinates with utility providers 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.

PW Project Management
Account Number Account Description
FY24-25
Actual
FY25-26
Estimated
Actual
FY26-27
Recommended
Budget
101-119-44-42102 Publications & Subscriptions 0 0 $4,500 101-119-44-42105 Materials and Supplies 0 0 600
101-119-44-42301 Training & Education 250 0 2,000
101-119-44-42302 Conferences & Meetings 0 0 2,500
101-119-44-42403 Printing 0 0 2,500
101-119-44-42999 Contra Operating Expenses 0 0 (12,100) Services & Supplies Subtotal $250 $0 $0

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.

PW Forest & Beach
Account Number Account Description
FY24-25
Actual
FY25-26
Estimated
Actual
FY26-27
Recommended
Budget
101-119-45-42001 Contract Services $1,144,433 $577,340 $865,000 101-119-45-42105 Materials and Supplies 73,871 98,475 68,225 Services & Supplies Subtotal $1,218,304 $675,815 $933,225 50 ATTACHMENT 1

PUBLIC SAFETY
YTD 2025-2026 WORKLOAD INDICATORS / PERFORMANCE MEASURES · 631 Fire calls for service
· 339 Ambulance calls for service in City limits
· 614 Ambulance calls for service outside City limits
· 9,646 Police calls for service
· 431 Traffic violations issued
· 3,164 Parking tickets issued
2025-2026 INITIATIVES AND ACCOMPLISHMENTS
· Ambulance Merger with Monterey Fire
· Implemented a Police Social Media Presence
· Successful recruitments to fill Police Officer positions · Development and execution of a citywide evacuation drill 2026-2027 PRIORITIES
· Continue recruitments to fill additional Police Officer positions and be fully staffed.
· Continue work towards the completion of the Police Department Remodel Project.
· Update the City Emergency Operations Plan.
· Expand the Seniors Helping Seniors program to include an App for seniors needing special care during emergencies.

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.

BUDGET SUMMARY AND SERVICE IMPACTS
The FY 26-27 Budget reflects a total decrease of $216,000 from the FY 25-26 budget.

The decrease is primarily the result of the change in Salaries and Benefits. 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.
51 ATTACHMENT 1

Police
Account Number Account Description
FY24-25
Actual
FY25-26
Estimated
Actual
FY26-27
Recommended
Budget
101-116-00-41001 Salaries $613,587 $905,162 $690,344
101-116-00-41002 Salaries -Safety 1,892,743 2,409,354 2,575,908 101-116-00-41005 Overtime 0 37,500 0
101-116-00-41006 Overtime -Safety 500,025 113,529 200,000 101-116-00-41009 Holiday in Lieu 119,745 116,197 131,494 101-116-00-41101 Retirement 42,973 59,573 45,177
101-116-00-41102 Retirement -Safety 316,070 293,521 389,266 101-116-00-41103 Deferred Compensation 210,539 199,623 45,568 101-116-00-41104 Health Insurance 388,588 657,795 536,779 101-116-00-41105 Social Security 0 0 5,578
101-116-00-41106 Medicare 47,329 52,930 48,787
101-116-00-41107 LTD/STD/Life 2,282 3,209 4,607
101-116-00-41108 Worker's Comp 141,590 191,243 150,323
101-116-00-41111 Uniform Allowance 21,030 19,014 21,840 Salaries & Benefits Subtotal $4,296,501 $5,058,650 $4,845,671 101-116-00-42001 Contract Services $245,801 $250,000 $329,393 101-116-00-42005 Community Promotions 1,067 5,300 2,000 101-116-00-42101 Office Supplies 5,600 8,800 5,000
101-116-00-42102 Publications & Subscriptions 308 420 350 101-116-00-42104 Safety Equipment and Supplies 35,821 51,500 79,800 101-116-00-42107 Gas and Oil 27,306 35,000 25,000
101-116-00-42201 Building Maintenance 779 2,000 0
101-116-00-42202 Equipment Maintenance 35,900 85,700 28,000 101-116-00-42203 Vehicle Maintenance 48,273 40,000 40,000 101-116-00-42301 Training & Education 44,579 50,000 30,000 101-116-00-42304 Dues & Memberships 1,369 1,400 6,300
101-116-00-42403 Printing 238 6,300 1,700
101-116-00-42404 Shipping/Postage/Freight 13 600 200
101-116-00-42405 Telephone and Communications 2,042 10,000 0 101-116-00-42415 Other Expenditures 25,407 12,000 8,000 Services & Supplies Subtotal $474,503 $559,020 $555,743 Total $4,771,004 $5,617,670 $5,401,414
52 ATTACHMENT 1

STAFFING
FY 25/26 FY 26/27
Department and Title Adopted Recommended Change
Police
Public Safety Director 1.00 1.00 0.00
Police Commander 1.00 1.00 0.00
Sergeant 3.00 3.00 0.00
Police Officer 10.00 10.00 0.00
Police Services Supervisor 1.00 1.00 0.00
Police Services Officer 6.00 5.50 -0.50
Community Services Officer/Animal Control 2.00 2.50 0.50 Police Total 24.00 24.00 0.00

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 Assistant City Administrator manages the contract with the City of Monterey and is responsible for oversight of needed equipment and supplies.

BUDGET SUMMARY AND SERVICE IMPACTS
The FY 26-27 budget reflects a total increase of $168,000 over FY 25-26 Estimated Actual. Contract Services include fire coverage, Chief management and Fire Prevention Service all provided by the City of Monterey ($3,618,584). It also includes County of Monterey dispatch services, alarm service, as well as laundry service.

Fire
Account Number Account Description
FY24-25
Actual
FY25-26
Estimated
Actual
FY26-27
Recommended
Budget
101-117-00-42001 Contract Services $3,520,760 $3,558,924 $3,727,484 101-117-00-42005 Community Promotions 1,150 1,000 1,000 101-117-00-42103 Medical Supplies 0 3,000 3,000
101-117-00-42104 Safety Equipment and Supplies 5,749 0 0 101-117-00-42107 Gas and Oil 8,339 22,000 22,000
101-117-00-42202 Equipment Maintenance 1,257 4,500 4,500 101-117-00-42203 Vehicle Maintenance 103,192 40,000 40,000 Total $3,640,447 $3,629,424 $3,797,984
53 ATTACHMENT 1

AMBULANCE
The Ambulance Department provides advanced life support ambulance service to the residents of Carmel-by-the-Sea. Ambulance has operated under a contract with the City of Monterey since 2025. The Assistant City Administrator manages the contract with the City of Monterey and is responsible for oversight of needed equipment and supplies.

Ambulance staffing includes paramedic-firefighters and emergency medical technicianfirefighters to provide front line medical emergency response and all-hazard response as a key component of the City’s public safety services.

Ambulance
Account Number Account Description
FY24-25
Actual
FY25-26
Estimated
Actual
FY26-27
Recommended
Budget
101-118-00-41002 Salaries -Safety $734,676 $214,875 $0
101-118-00-41006 Overtime -Safety 268,848 78,017 0
101-118-00-41009 Holiday in Lieu 65,124 8,069 0
101-118-00-41102 Retirement -Safety 87,615 21,478 0
101-118-00-41103 Deferred Compensation 4,900 1,138 0
101-118-00-41104 Health Insurance 81,160 20,366 0
101-118-00-41106 Medicare 15,238 4,298 0
101-118-00-41107 LTD/STD/Life 547 130 0
101-118-00-41108 Worker's Comp 46,288 0 0
101-118-00-41111 Uniform Allowance 2,875 969 0
Salaries & Benefits Subtotal $1,307,271 $349,339 $0
101-118-00-42001 Contract Services $158,533 $2,456,110 $2,224,489 101-118-00-42103 Medical Supplies 50,302 48,150 45,000
101-118-00-42104 Safety Equipment and Supplies 480 17,500 5,000 101-118-00-42107 Gas and Oil 8,789 21,000 15,000
101-118-00-42201 Building Maintenance 2,177 5,000 5,000 101-118-00-42202 Equipment Maintenance 663 4,000 0
101-118-00-42203 Vehicle Maintenance 31,951 70,000 35,000 101-118-00-42301 Training & Education 5,620 15,000 0
Services & Supplies Subtotal $258,514 $2,636,760 $2,329,489 Total $1,565,785 $2,986,099 $2,329,489
54 ATTACHMENT 1

CAPITAL IMPROVEMENT
PLAN
55 ATTACHMENT 1

CAPITAL IMPROVEMENT PLAN
The FY 26-27 Budget includes $8.5 million for capital projects, including vehicles and equipment. This level of capital spending represents 21% of the total citywide budget of $41.3 million and requires the use of $2.3 million of the City’s unassigned fund balance.

Sales tax revenue generated by Measure C, the City’s local sales tax, 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.

The “FY 26-27 CIP Funding by Category” donut chart illustrates the allocation of Capital Improvement Program funds across eight sectors, with Facilities receiving the largest share at 47%—nearly half of the total budget. Streets & Sidewalks and Forest, Parks & Beach follow as the next largest priorities, accounting for 15% and 11% of funding, respectively. The remaining quarter of the budget is distributed among Drainage (7%), Project Management (6%), and Contingency (6%), while Vehicle and Equipment (6%) and Planning (2%) receive the smallest portions of the projected funding. 56 ATTACHMENT 1

VEHICLE AND EQUIPMENT FUND
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.

Vehicle and Equipment Fund
Account Number Account Description
FY26-27
Recommended
Budget
503-513-00-43005 PW Patch Truck 125,000
503-513-00-43005 PD Radar Trailer 25,000
503-513-00-43005 PD Parking Vehicle 50,000
503-513-00-43005 PD Admin Vehicle EV 75,000
503-513-00-43005 PD Animal Control Vehicle 75,000
503-513-00-43006 Police Radios Year 6 of 6 30,000
503-513-00-43007 Tracnet Replacement (RIMS Sun System) 200,000 Vehicle and Equipment Total $580,000
Publics Works Fleet
The Public Works Street Division’s asphalt patch truck is 27 years old with 62,000 miles.

While the truck has low mileage, it is in poor condition and has an outdated leaking asphalt tack oil sprayer. This truck will be replaced with a medium- sized truck, outfitted with a dump bed, lift gate, and tack oil sprayer. An EV option will be evaluated.

Police Department Fleet
Police will be replacing four vehicles this fiscal year, all based on age. (1) Parking Enforcement Vehicle, (2) A 2009 Animal Control Vehicle, (3) 2013 Police Administration Vehicle, (4) 2009 Radar Trailer. EV options for all vehicles will be evaluated.

Police Radios Lease, Year 6 of 6
Twenty-two (22) radios were purchased in 2021 with a payment schedule of $30,000 per year payments for six years, with funding from the Vehicle and Equipment Fund.

Police Public Safety Automation Solutions
Replace and/or upgrade current automated system for records management, jail management and computer aided dispatch.
57 ATTACHMENT 1

CAPITAL PROJECTS FUND
The Capital Projects budget for expenditure includes 20 new projects for a total of $7.9 million of new funds requested in FY26-27. There are another 9 projects being carried over from FY25-26 with a reserve of fund balance of $2.1 million.

STREETS AND SIDEWALKS INFRASTRUCTURE
Maintaining roadway and pedestrian infrastructure integrity remains a core focus of the CIP program.
10-Year Street Improvement Program ($200,000)
This project funds engineering design for priority street rehabilitation and improvement projects identified through the City’s pavement management program, StreetSaver, evaluates roadway conditions and assigns a Pavement Condition Index (PCI) score to help prioritize the most cost-effective maintenance and rehabilitation strategies across the City’s street network. The design phase will include field verification, surveying, and preparation of construction documents and cost estimates for the highest-priority roadway segments. Implementing these improvements helps preserve pavement 58 ATTACHMENT 1

conditions, extend the useful life of the roadway system. This project funds engineering design for priority street rehabilitation and maintenance projects identified through the City’s pavement management program, StreetSaver, which evaluates roadway conditions and assigns a Pavement Condition Index (PCI) score to help prioritize the most cost-effective maintenance and rehabilitation
strategies across the City’s street
network. The design phase will include field verification, surveying, and preparation of
construction documents and cost estimates for the
highest-priority roadway segments.

Implementing these improvements helps preserve
pavement conditions, extend the
useful life of the roadway system, and improve the City’s overall PCI score while
minimizing more costly reconstruction in the future.

The 10-Year Street Improvement Program brings all
streets above a PCI of 50 and an average PCI of 80 within ten years.
10-Year Street Preventative Maintenance Program ($850,000) This project includes rehabilitation work on selected streets identified through the StreetSaver pavement evaluation program. Improvements will consist primarily of microseal/microsurfacing or similar treatments designed to extend the service life of existing roadways and prevent further deterioration. By addressing pavement needs proactively, this project reduces long-term costs associated with major repairs or full street reconstruction. These preventive maintenance efforts help preserve roadway integrity, improve safety, and maintain the overall quality of the pavement throughout the project area.

The 10-Year Street Preventative Maintenance Program brings all streets above a PCI of 50 and an average PCI of 80 within ten years through a phased preventative maintenance approach. To keep streets at an average PCI of 80, the City will need to continue regular preventative maintenance on an ongoing basis. This ongoing maintenance is essential to preserve pavement conditions over the long term.

Resurface Parking Lot – Sunset Center ($300,000)
This project completes asphalt rehabilitation improvements at the Sunset Center north and south parking lots, one of the City’s most heavily used public parking facilities.

Work includes pavement resurfacing, localized asphalt repair, restriping, and accessibility improvements where needed. These upgrades extend the service life of the parking lots while improving safety, circulation, and ADA compliance for visitors to the Sunset Center campus.
59 ATTACHMENT 1

Sidewalk Improvement Project – Design ($275,000)
This project supports the design of priority sidewalk
repair and replacement projects throughout the City to
improve pedestrian safety and accessibility. Areas
requiring improvement have been identified through
the City’s recent sidewalk condition assessment
conducted by Precision Concrete, which documented
trip hazards, vertical offsets, and deteriorated sidewalk segments across the community. The assessment data is
managed through the City’s DataWorks infrastructure
management software, allowing staff to prioritize
repairs based on safety risk, condition severity, and
pedestrian usage. The design phase will include
surveying, preparation of construction drawings, and
cost estimates for the highest-priority locations,
supporting future construction projects that enhance
walkability, reduce liability risks, and improve overall sidewalk conditions.

DRAINAGE INFRASTRUCTURE
Drainage improvements intended to address localized flooding, improve stormwater conveyance, and increase long-term system resilience.

Drainage Improvement Project- Design ($450,000)
This project addresses recurring localized neighborhood street ponding by improving surface drainage and upgrading the stormwater intake and conveyance system. The work will include targeted roadway and gutter grading to restore positive flow, installation of new catch basins to increase intake capacity, up sizing select storm drain pipelines to improve conveyance and adding new manholes to enhance system access and long-term maintenance. These improvements will reduce and eliminate floodwater entering residential properties and prevent standing water from accumulating on neighborhood streets, resulting in safer conditions, reduced pavement deterioration, and improved stormwater performance during peak rainfall events. The project also serves as an important preparatory phase for the future major storm drainage bypass pipeline improvement along Junipero, ensuring that upstream and local drainage conditions are properly integrated with the larger system upgrade.

Scenic Drainage Improvement & Pathway Restoration - Design ($300,000) This project addresses ongoing erosion, drainage deficiencies, and pathway deterioration along the Scenic Pathway corridor between Eighth and Eleventh Avenues—one of Carmel-by-the-Sea’s most heavily used and visually significant coastal routes. Seasonal stormwater runoff, combined with coastal bluff exposure and inadequate drainage infrastructure, has resulted in localized flooding, surface degradation, and slope instability, creating safety hazards for pedestrians and increasing long-term maintenance demands.
60 ATTACHMENT 1

The project will implement a comprehensive drainage strategy, including the installation of new subsurface drains, upgraded piping systems, and improved surface conveyance features along Scenic Drive to better capture and direct stormwater away from the pathway and adjacent slopes. These improvements are designed to reduce erosion, minimize sediment transport, and protect the structural integrity of the coastal bluff.

In conjunction with drainage upgrades, the pathway will be reconstructed to restore a safe, durable, and accessible walking surface consistent with the character of the Scenic corridor. Work will also include targeted slope stabilization measures—such as reinforcement, regrading, and potential bioengineering treatments—to reduce the risk of further degradation. Protective barriers and edge treatments will be installed where necessary to enhance user safety while maintaining coastal views.

PUBLIC FACILITIES
Projects addressing maintenance, safety improvements, and long-term facility planning.

Picadilly Restroom Design ($150,000)
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.

Vista Lobos Electrical Panel Upgrade and EV Infrastructure ($560,000)
This project implements previously authorized Council action to upgrade the electrical infrastructure at the Vista Lobos facility and is currently in progress, with bid solicitation underway. The City has executed an agreement for this work, and the project is advancing toward construction.

Improvements include replacement of aging electrical panels, modernization of electrical systems, and expansion of capacity to support current operations and future electric vehicle (EV) charging infrastructure for the City’s fleet. These upgrades are necessary to ensure safe, reliable, and code-compliant electrical service while supporting the City’s sustainability and fleet electrification goals.

Completion of the project by the end of the calendar year is required to meet contractual and funding obligations. Failure to meet this deadline may result in financial penalties or loss of eligible funding. The project is being actively managed to maintain schedule and mitigate delivery risks.
61 ATTACHMENT 1

ADA Upgrade Program ($20,000)
The City continues its ongoing program of accessibility improvements to public facilities and infrastructure. Funding supports targeted upgrades identified through ADA transition planning and accessibility reviews. Improvements may include pathway modifications, accessibility improvements to public buildings, and upgrades that ensure compliance with current accessibility standards.

Sunset Center Piano Room Floor and Guardrail Replacement ($75,000) This project includes two improvements at the Sunset Center facility to address aging infrastructure and safety concerns. The Piano Room floor requires replacement due to deterioration from years of use, which has impacted its structural integrity and appearance. Upgrading the floor will restore the functionality and safety of the space used for rehearsals, events, and performances.

The project also includes replacement
of the exterior guardrail along the
ramp in the Sunset Center North
Parking Lot, which has deteriorated
due to age and exposure to coastal
weather conditions. Replacing the
guardrail will improve safety for
pedestrians using the ramp and
adjacent parking areas while
maintaining compatibility with the
character of the Sunset Center
campus.

Fire Station Alert System Upgrade ($200,000)
This project replaces the Fire Station’s alerting and notification system that receives dispatch signals from Monterey County and alerts personnel to emergency incidents.

The need for this upgrade was identified during the current fiscal year CIP discussions but was not included due to timing constraints and is now proposed for the upcoming fiscal year.

The existing system is outdated, no longer supported by the manufacturer, and is beginning to experience failures similar to those encountered at neighboring stations prior to replacement. Replacement parts are unavailable, increasing the risk of system failure and delayed emergency response. Additionally, Monterey County has enhanced its dispatch capabilities, and the current system is not fully compatible with these updates.

The project includes installation of a modern station alerting system with a central controller, voice alerting, LED speaker and strobe notifications, room alerting components, and mobile application integration to support real-time notifications.

These improvements will enhance reliability, improve response times, and ensure compatibility with current emergency communications systems. 62 ATTACHMENT 1

Police / Public Works Facility – Architectural Design ($3,500,000) This project initiates architectural and engineering design services associated with the future Police and Public Works facility project. Work will include feasibility studies, conceptual layouts, site evaluation, and preliminary architectural design alternatives for renovation or replacement of the existing facility. This phase will establish project scope, cost estimates, and potential development strategies for one of the City’s most significant future infrastructure investments.

Flanders Mansion Foundation Repair ($150,000)
Structural assessment and stabilization work will address foundation issues identified at Flanders Mansion. The project includes engineering evaluation, development of repair strategies, and implementation of stabilization measures to protect the historic structure. These improvements ensure the continued structural integrity and preservation of one of the City’s most historically significant properties.

Transfer Switch Installation – City Hall and Vista Lobos ($100,000) Automatic transfer switches will be installed at City Hall and the Vista Lobos facility to support backup power operations. These systems allow facilities to seamlessly transition to emergency power during outages, improving operational continuity for essential municipal services.

FOREST, PARKS AND BEACH INFRASTRUCTURE
Several projects focus on coastal resilience, environmental restoration, and park infrastructure.

Sand Ramp – Eighth Avenue Repair and Design ($400,000)
This project advances the design and reconstruction of the sand access ramp near
Eighth Avenue, which has experienced repeated storm damage due to coastal erosion
and sea level rise. Improvements will restore reliable access to the beach while
incorporating design features that improve durability under changing coastal conditions.

Eroded Bluff Emergency Repair ($200,000)
Emergency stabilization work will address coastal bluff erosion that poses risks to public safety and nearby infrastructure. The project will include geotechnical investigation and design, along with the necessary emergency repairs or construction activities to address damaged areas. Additional restoration efforts will be undertaken to reduce future instability.
63 ATTACHMENT 1

Shoreline Infrastructure Repairs ($400,000)
A recent Coastal Engineering Study included a comprehensive Shoreline Infrastructure Condition Assessment that identified priority repairs needed to protect critical coastal assets. This project initiates the engineering, design, and permitting of the highest priority shoreline infrastructure improvements.

The assessment identified six rock revetments along the shoreline, four of which are in high-priority condition requiring repair—one requiring full reconstruction and others requiring partial rehabilitation. These structures are essential for protecting public infrastructure, maintaining coastal access, and reducing the risk of erosion and stormrelated damage.

This project will advance design and regulatory coordination for these priority repairs, allowing the City to proactively address deteriorating conditions while streamlining the permitting process with agencies such as the California Coastal Commission.

Advancing a focused set of priority improvements is expected to improve permitting efficiency and position the City to respond more effectively to coastal hazards.

Additionally, this effort will refine construction cost estimates, identify project phasing, and establish a clear implementation strategy for future shoreline infrastructure investments. This work lays the foundation for a comprehensive, long-term approach to maintaining and protecting the City’s shoreline assets.

North Dunes Habitat Restoration ($200,000)
This ecological restoration project targets invasive species removal and habitat restoration within the North Dunes area. The effort supports recovery of native dune ecosystems while improving habitat conditions for coastal wildlife. Work may include invasive plant removal, restoration planning, and revegetation with native species.

PLANNING
Objective Development Design Standards (ODDS) ($150,000) ODDS is created to provide objective (ministerial) design and development regulations for affordable housing projects in compliance with State Laws.

PROJECT MANAGEMENT
Project Management ($673,680)
Staff time and resources allocated to manage FY26-27 CIP projects.

CIP PLANNING
CIP Contingency Fund ($600,000)
A $600,000 Contingency Fund will be budgeted to cover any shortfalls to award construction contracts or to close out projects.
64 ATTACHMENT 1

CAPITAL IMPROVEMENT PLAN – YEARS 2 - 5
City develops and maintains an on-going Capital Improvement Plan for the next five years, of which the preceding budget represents the first year. The remaining four years (years 2 – 5 of the plan) serve as an advance planning tool to identify anticipated future projects.

In addition, the City is measuring and planning for deferred maintenance needs that extend significantly beyond five years. The 5-year CIP is a “snapshot” in time of in which the City can anticipate needs for future infrastructure revitalization funding in more detail. As a dynamic planning document, the CIP for years 2 through 5 is subject to change as updated information becomes available. The 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 as in the current year.

The following are key projects and preliminary budget estimates, by asset category, for years 2 to 5 of the CIP.
65 ATTACHMENT 1

KEY PROJECTS AND FUNDING NEEDS FOR YEARS TWO THROUGH FIVE OF THE CAPITAL IMPROVEMENT PLAN (CIP) Category/Project Estimated Category/Project Estimated
Drainage Scenic Drainage Improvement & Pathway
Restoration Construction Phase 1* 1,500,000
Scenic Drainage Improvement & Pathway
Restoration Planting Monitoring Phase 2 * 300,000
Drainage Improvement Project - 1,500,000
Mission Bypass Pipe - Design * 415,000
7,330,000 3,000,000 715,000
Streets Street Improvement Project A - Construction 800,000 Street Improvement Project C - Design * 193,600 Street Improvement Project B - Design * 176,000 Street Improvement Project B - Construction * 880,000 Street Preventative Maintenance Project -
Design and Construction * 700,000
Street Preventative Maintenance Project -
Design and Construction * 500,000
Sidewalk Improvement Project -
Construction Phase 1 * 500,000
Sidewalk Improvement Project - Construction
Phase 2 * 600,000
Sunset Center Retaining Walls, Sidewalk,
Fence - Design * 450,000
Sunset Center Retaining Walls, Sidewalk,
Fence - Construction * 1,200,000
Children's Library Drainage and Parking Lot
Resurface - Design * 150,000
11,029,616 2,626,000 3,523,600
Facilities ADA Upgrades 20,000 ADA Upgrades 20,000
Facility Condition Assessment 200,000
Flanders Window and Gutter Repair * 100,000
City Hall Shingles and Windows * 500,000
Fire Station Window Upgrades * 20,000
Police Station / Public Works Architecture -
Design *
Picadilly Restroom Construction * 600,000
Back-up Generator Transfer Switch for City
Hall and Vista Lobos 200,000
2,400,000 940,000 720,000
Forest/Park/Beach Sand Ramp 8th Avenue Repair Project - Design and Permitting* 0
Sand Ramp 8th Avenue Repair Project -
Construction * 2,000,000
North Dunes Habitat Restoration Area -
Invasive Species Removal 200,000
North Dunes Habitat Restoration Area -
Planting 100,000
Shoreline Infrastructure Repairs * 200,000
Carmel Beach Climate Adaption & Coastal
Resiliency Program - Studies, Design, CEQA 650,000
Carmel Beach Climate Adaption & Coastal
Resiliency Program - Implementation 300,000
4th Ave Outfall - Design * 900,000 4th Ave Outfall - Permitting 0 Mission Trail Nature Preserve - Stream
Restoration/Trail Resiliency Design * 175,000
Mission Trail Nature Preserve - Stream
Restoration/Trail Resiliency Permitting * 400,000
14,775,000 2,125,000 2,800,000
Project Management CIP Contingency 600,000 CIP Contingency 600,000 Project Managers (3 FTE) 690,522 Project Managers (3 FTE) 707,785 5,267,403 1,290,522 1,307,785
Fleet PW Water Truck (1994 Ford SD) 125,000 PW EV Truck (2005 Ford LCF) 125,000 PD Patrol Vehicle EV (2019) 75,000 PD Dectective Vehicle EV (2017) 75,000 PD Parking Vehicle EV (2014) 45,000 PD Patrol Vehicle EV (2020) 75,000 PW Backup Portable Generator 90,000
1,010,000 245,000 365,000
Years 2-5 CIP $41,812,019 Total Year 2 $10,226,522 Total Year 3 $9,431,385 Carryover Budget from Prior Years (1,525,000) Carryover Budget from Prior Years (70,000) FY 2027/2028 Budget Need $8,701,522 FY 2028/2029 Budget Need $9,361,385 * Deferred Maintenance
Year 3
FY 2028/2029
Years 2 - 5
CIP
Year 2
FY 2027/2028
FY 27/28 FY 28/29
Drainage
Streets
Facilitie
s
Forest/Park/Beach
Project
Management Fleet
66 ATTACHMENT 1

KEY PROJECTS AND FUNDING NEEDS FOR YEARS TWO THROUGH FIVE OF THE CAPITAL IMPROVEMENT PLAN (CIP) Category/Project Estimated Category/Project Estimated
Drainage
Drainage Improvement Project - Design * 865,000
Mission Bypass Pipe - Construction * 2,750,000
2,750,000 865,000 7,330,000
Street Improvement Project C - Construction 968,000 Street Improvement Project E - Design * 234,256 Streets Street Improvement Project D - Design * 212,960
p j
* 1,064,800
Street Preventative Maintenance Project -
Design and Construction * 400,000
Street Preventative Maintenance Project -
Design and Construction * 400,000
Sidewalk Improvement Project - Design * 300,000
Sidewalk Improvement Project - Construction
Phase 1 * 700,000
Children's Library Drainage and Parking Lot
Resurface - Construction * 600,000
2,480,960 2,399,056 11,029,616
ADA Upgrades 20,000 ADA Upgrades 20,000 Facilities
Facility Repairs * 300,000 Facility Repairs * 300,000
Public Works Roll-up Doors (2) * 100,000
420,000 320,000 2,400,000
Forest/Park/Beach
4th Ave Pathway Monte Verde to San
Antonio - Design 400,000
Carmel Beach Climate Adaption & Coastal
Resiliency Program - Implementation 200,000
Carmel Beach Climate Adaption & Coastal
Resiliency Program - Monitoring 150,000
4th Ave Outfall - Permitting and 2,500,000 4th Ave Outfall - Construction * 2,500,000 Mission Trail Nature Preserve - Stream
Restoration/Trail Resiliency * 100,000
Mission Trail Nature Preserve - Stream
Restoration/Trail Resiliency * 4,000,000
3,200,000 6,650,000 14,775,000
CIP Contingency 600,000 CIP Contingency 600,000 Project Management Project Managers (3 FTE) 725,480 Project Managers (3 FTE) 743,617 1,325,480 1,343,617 5,267,403
PW Maintenance Truck (2008 Ford F350) 125,000 PW Maintenance Truck (2012 F250) 125,000 Fleet PD Patrol Vehicle EV (2016) 75,000 PD Patrol Vehicle EV (2020) 75,000 200,000 200,000 1,010,000
Total Year 4 $10,376,440 Total Year 5 $11,777,673 Years 2-5 CIP $41,812,019 FY 2029/2030 Budget Need $10,376,440 FY 2030/2031 Budget Need $11,777,673 * Deferred Maintenance
Years 2 - 5
CIP
Year 4
FY 2029/2030
Year 5
FY 2030/2031
FY 29/30 FY 30/31
Drainage
Streets
Facilitie
s
Forest/Park/Beach
Project
Management Fleet
67 ATTACHMENT 1

OTHER FUNDS
68 ATTACHMENT 1

OTHER FUNDS OVERVIEW
The City uses what is known as a “fund” accounting structure, which house and track resources (i.e.: money) that are limited in their use by law or governing agency. The major governmental funds are the General Fund, Measure C 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 reserve at no less than 50% of annual projected operating expenditures.

Hostelry Fund (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.

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 projects and general City services. Fund 206 is used to house revenue from these tax sources.
69 ATTACHMENT 1

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 (Fund 203)
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
70 ATTACHMENT 1

INTERNAL SERVICE FUNDS
Workers Compensation (Fund 501)
This fund houses monies meant for workers’ compensation insurance provided to departments on a cost reimbursement basis.

Other Post-Employment Benefits (OPEB) Liability Reserve (Fund 502) This fund houses dollars for other post-employment benefits.

Vehicle and Equipment Replacement Fund (Fund 503)
This fund is to set aside to house financial resources for future purchases of replacement equipment essential to the operations of the City. A reserve will be maintained with a target of 10% the total fleet replacement value.

AGENCY FUNDS
Refundable Deposits (Fund 601)
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. 71 ATTACHMENT 1

CITY OF CARMEL-BY-THE-SEA
City Council
Staff Report
May 12, 2026

ORDERS OF BUSINESS
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Brandon Swanson, Acting City Administrator APPROVED BY: Brandon Swanson, Acting City Administrator SUBJECT: Receive a presentation on the updated Council Strategic Priorities list following the January 22nd workshop, and provide direction to staff - Continued from March 24, 2026
RECOMMENDATION:

Receive a presentation on the updated Council Strategic Priorities list following the January 22nd workshop and provide direction to staff on priorities for the calendar year, 2026. This is a
BACKGROUND / SUMMARY:

On January 22, 2026, the City Council held their annual workshop to review their list of strategic priority projects. This list is intended to provide the City Administrator with guidance on projects that should be completed or see meaningful progress made in the calendar year. The format of the meeting allows feedback from the public during the entire workshop. Throughout the meeting, Councilmembers provided direction about adding and removing projects, and feedback on the level of priority for a handful of projects (level 1, 2 or 3). The results of the January workshop have been marked up on the attached Strategic Priorities Spreadsheet so that the changes can be tracked (Attachment 1). In summary, the following actions were taken:
• 16 priority projects added
• 1 priority project canceled
• 6 priority projects marked as “Complete” and removed from the list • 5 titles modified to better represent Council’s objectives

At their February 3rd meeting, Council was presented with a marked-up list which captured their direction from that January workshop and asked to finalize the list, item by item. Due to a full agenda, Council was not able to make it through the entire list, and directed staff to return at an upcoming meeting to complete the task.

This item was brought back to Council on March 24th to finish where they left off on February 3rd, however, due to the lateness of the evening, the item was continued to a future meeting date.

What is Council Being Asked to do on May 12th?
Council has been presented with a marked-up list which shows where decisions were made at the February 3rd meeting, and where direction is still needed. Council will begin at section "S-4 Preserve the Village Character". As a reminder, Council is being asked to review the remaining items on this list and be prepared to:

1. Clarify any changes which were not accurately captured by staff

2. Assign a “priority level” to every project on the list – Level 1, 2 or 3. Level 1 being the highest.

3. Move some items from the active list to “Future Projects” to create a manageable list for 2026.
a. NOTE: The City Administrator’s recommendation is that the current list is too long for every item to be completed or see meaningful progress in 2026.

Council has also been provided with a “clean” version of the list, which incorporates all the draft changes noted in the markup version (Attachment 2). This clean version is only being offered as a convenience for Council as a worksheet to prepare notes for the February 3rd meeting. It is not meant to imply that the draft changes are finalized.

Some Notes about the Priorities List
To assist in reviewing, here are a few notes about the list:
• There is a key at the top of the list showing how the colors relate to changes:
o Green = new item
o Pink = complete item
o Yellow = modified title
o Red = canceled project
• For any item which the Council provided a “priority level” at the workshop, that number has been added in BOLD. The rest of the priorities are left blank for Council to fill in.
• Items elevated from the “future projects” list include a note showing which section they moved to.

Capacity Discussion
The ability to complete projects on the priorities list is directly related to the City’s capacity. In this sense, “capacity” means both staff time and budgeted funds. With that in mind, Council is asked to consider other core City tasks while deliberating on whether to keep items on the active priority list or place them on the “Future Project” list.

Examples of core city tasks that already take capacity include things like: processing development permits, preparing recurring reports for state and other regulatory agencies, ongoing infrastructure and facility maintenance, routine forest management, daily finance and accounts payable work, IT troubleshooting and network management, implementing adopted City Plans, providing staff support to various City Boards and Commissions, and execution of the City’s approved Capital Improvement Program (CIP).

In an effort to help begin the conversation, Council has been provided with a sample rebalanced list prepared by the City Administrator. This sample shows some projects moved to the “Future Projects” list and levels of priority for those not assigned by Council at the recent workshop (Attachment 3). This sample list is in no way meant to change or limit Council’s ability to decide what projects stay on the active priority list and the Council’s level of priority. This list of priorities belongs to Council, and the City Administrator will work to fulfill all the goals of the list that Council assigns.

Next Steps
Following direction from Council, the priorities list will be finalized accordingly. From there, the list will become one of the regular reports attached to each regular City Council agenda for the rest of the year. This will allow the list to be pulled at any meeting by Council, staff, or the public to discuss an item on the list. In addition, staff will plan to return to Council with formal updates in May, September, and December of this year.

FISCAL IMPACT:

Time associated with preparation of the priorities list is included in the FY25/26 Fiscal Year operating budget. Projects on the list will all have their own associated costs, which will be included in agenda reports for any future Council actions on those items.

PRIOR CITY COUNCIL ACTION:

January 22, 2026: City Council held a Strategic Priorities Workshop.

February 3, 2026: Council reviewed a marked-up priority list reflecting direction from the workshop. Due to time constraints, Council was unable to complete its review and directed staff to return at a future meeting.

March 24, 2026: The item was continued to a future meeting due to the late hour.

ATTACHMENTS:

1. 2-3-2026 MARKUPS Council Priority Tracker 01.22.26

2. CLEAN Council Priortiy Tracker 01.22.26

3. SAMPLE Council Priortiy Tracker 01.22.26

City Council Strategic Priorities Responsible
Department Priority Level Target Goal Completion
Item is complete, and will be removed from the list
Item was added by Council at Strategic Priorities Meeting Item name has been changed based on Council feedback (changes struck and underlined) Item is not complete, and was removed by Council from the list S-1 Exercise Financial Sustainability, Accountability and Transparency P-1.1 Budget Clarity
G-1.1.1 Increase usability and clarity of financial reports given to Council Admin/Finance 3 July 2026 G-1.1.2 Create an online public facing CIP tracking dashboard Admin/IT 2 Mar 2026 P-1.2 Financial Health
G-1.2.1 Receive Council approval on revised investment portfolio approach Admin/Finance future TBD G-1.2.3 Implement a new HR, Finance and Payroll management system (ERP) Admin/Finance 1 Jan 2027 G-1.2.4 Develop menu of potential funding sources to close City's funding shortfalls 1 May 2026 G-1.2.5 Provide Council a presentation on placing a TOT increase on the Nov 2026 ballot and receive direction Admin/Clerk 1 Feb 2026 G-1.2.6 Provide Council with a presentation on options for paid parking as a management tool Admin/PD 2 June 2026 S-2 Steward the Natural Environment
P-2.1 Beach Infrastructure Repairs and Maintenance
G-2.1.1 Rebuild 8th Ave. sand ramp PW 1 Mar 2027
G-2.1.2 Complete 4th Ave. outfall repair/replacement PW 2 Sep 2027 G-2.1.3 Rebuild 10th Ave. stairs PW 1 June 2026
G-2.1.4 Rebuild 12th Ave. stairs PW 1 June 2026
G-2.1.5 Complete maintenance/repair of bluff revetments PW 1 - ongoing Ongoing G-2.1.6 Implementation of coastline related items from Climate Action and Adaptation Plan PW ongoing Ongoing P-2.2 Wildfire Mitigation and Prevention
G-2.2.1 Adopt updated Carmel Forest Management Plan (City Council), and Certify LCP amendment for updated Carmel Fores PW 2 Jan 2027 G-2.2.3 Adopt additional citywide wildfire and prevention measures (e,g,: allowed materials, building code, etc.), and Create a CPB/PW 2 Ongoing G-2.2.4 Complete all tasks on the arpproved list of prioritized fuel mitigation projects CPB/PW 1 Ongoing G-2.2.6 Execute a citywide evacuation drill PD 1 May 2026 S-3 Maintain Public Safety and Infrastructure
P-3.1 Public Safety
G-3.1.1 Ambulance mutual aid contract Admin 1 3/1/2026
S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 1 of 10 ATTACHMENT 1

City Council Strategic Priorities Responsible
Department Priority Level Target Goal Completion
G-3.1.1 Implement a Street Address Program Admin 1 May 2026 G-3.1.2 Create a plan to improve the resiliency of the City's power grid and present to City Council Admin/PW 2 TBD G-3.1.3 Complete the City's Rule 20-A project at Del Mar Parking Lot PW 3 TBD P-3.2 City Buildings and Property (Non-Police/PW)
G-3.2.1 Conduct condition assessment of all City buildings and develop maintenance plan PW 2 Dec 2027 G-3.2.2 Provide presentation to Council on the process required to sell the Scout House and receive direction Admin/PW future April 2026 G-3.2.3 Have Council receive a presentation from the Friends of MTNP for a Rio Park project Admin/PW 2 TBD P-3.3 City Building (Police/PW)
G-3.3.2 Select architect PW/PD 1 March 2026
G-3.3.3 Construction Plans and financing approved by City Council PW/Admin 1 July 2027 P-3.4 Digital Infrastructure
G-3.4.1 Complete an IT audit, including cyber-security Admin/IT 1 May 2026 G-3.4.2 Develop and adopt an IT Strategic Plan Admin/IT 1 July 2026 P-3.5 Streets and Sidewalks
G-3.5.1 Complete repairs to get current on all sidewalk and ADA improvements PW 2 Ongoing G-3.5.3 Significantly increase parking enforcement capabilities PD 1 June 2026 S-4 Preserve the Village Character - Start here on 3-24-2026 P-4.1 Design Review
G-4.1.1 Adopt updated Design guidelines and Zoning Code - Design Traditions 1.5 Project (City Council) CPB Dec 2026 G-4.1.2 Certify LCP amendment for updated Design Guidelines and Zoning Code (Coastal Commission) CPB Mar 2027 G-4.1.3 Reinstate the Design Review Board (DRB) CPB TBD G-4.1.4 Complete Objective Design and Development Standards for affordable units (ODDS) CPB April 2027 P-4.2 Housing Policy and Community Sustainability Attract New Full Time Residents G-4.2.1 Adopt ADU ordinance (City Council) CPB Dec 2026 G-4.2.2 Certify LCP amendment for ADU Ordinance (Coastal Commission) CPB Mar 2027 G-4.2.3 Adopt Housing Element amendment to move units from City lots (City Council) CPB April 2026 G-4.2.4 Certification of Housing Element amendment to move units from City lots (CA State HCD) CPB June 2026 G-4.2.5 Research policy options in response to accelerating population loss / loss of families with children Admin/CPB 2 TBD G-4.2.6 Implement the City's 6th Cycle Housing Element Admin/CPB 1 Ongoing S-5 Provide Effective, Reliable, Responsive and Friendly Government Services P-5.1 Process Improvements
G-5.1.1 Implement new permitting software, with focus on integrating Artificial Intelligence CPB/IT Dec 2026 S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 2 of 10 ATTACHMENT 1

City Council Strategic Priorities Responsible
Department Priority Level Target Goal Completion
G-5.1.2 Implement technologies to support routine staff tasks and free up time for enhanced customer service CPB/IT Ongoing G-5.1.3 Implement a citywide customer service program CPB/IT 1 Dec 2026 P-5.2 Public Access to Records
G-5.2.1 Scan and digitize all physical city records to make available online (resolutions, ordinances, etc.) Admin/IT Ongoing P-5.3 "Smart Village" Plan DELETED
G-5.3.1 Expand free public Wi-Fi network to cover all parks and key public areas Admin/IT DELETED S-6 Implement the City's Adopted Plans
P-6.1 Climate Action (C) and Adaptation (D) Plan
Program # Program Name
G-C-1.1.1 Energy Efficiency Outreach PW TBD
G-C-1.1.2 Energy Efficiency and Electrification Incentives PW TBD G-C-1.1.3 Energy Efficiency Audits PW TBD
G-C-1.2.1 Feasibility Study for Existing Building Electrification and Back-up Power. PW TBD G-C-1.2.2 Residential Home Energy Renovations. PW TBD
G-C-1.2.3 Residential Home Energy Renovation Incentives. PW TBD G-C-1.2.4 Commercial Energy Renovations. PW TBD
G-C-1.2.5 Residential Commercial Energy Renovation Incentives. PW TBD G-C-1.3.1 Energy Efficiency in New Residential Construction PW TBD G-C-1.3.2 Energy Efficiency in New Commercial Construction PW TBD G-C-2.1.1 Reduce Reliance on Automobiles. PW TBD
G-C-2.1.2 Develop Bicycle Master Plan to Create Safe Bike Routes around the City PW TBD G-C-2.1.3 Ride-Sharing and Bike to Work Programs within City Operations and Businesses PW TBD G-C-2.2.1 Prioritize Electric Vehicles (EVs) PW TBD
G-C-2.3.1 Develop Origin/Destination Transportation Model. PW TBD G-C-3.1.1 Incentivize Clean Energy Installations PW TBD G-C-3.1.2 Increase uptake of 3CE Renewable Generation portfolio PW TBD G-C-4.1.1 Continued Implementation and Promotion of City and Model Water Efficient Ordinance Standards PW TBD G-C-4.1.2 Exceed Water Efficiency Standards PW TBD
G-C-5.1.1 Increase the City’s solid waste diversion to reduce landfill methane emissions PW TBD G-C-6.1.1 Urban Forest Maintenance and Improvement PW TBD G-C-6.2.1 Allow Cool Roof Options PW TBD
G-D-1.1.1 Maintain and Update Evacuation Plan Every 8 Years. PW TBD G-D-1.1.2 Update Emergency Preparedness. PW TBD
S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 3 of 10 ATTACHMENT 1

City Council Strategic Priorities Responsible
Department Priority Level Target Goal Completion
G-D-1.1.3 Collaborate with Monterey Fire. PW TBD
G-D-1.1.4 Publicize Local Evacuation Routes. PW TBD
G-D-1.1.5 Evaluate Evacuation Route Capacity. PW TBD
G-D-1.2.1 Establish a Resilience Hub. PW TBD
G-D-1.2.2 Limit the Impacts of Climate Change on the Most Vulnerable Populations. PW TBD G-D-1.2.3 Engage the Community. PW TBD
G-D-1.2.4 Social Support Network. PW TBD
G-D-1.2.5 Back-up Power for Vulnerable Populations. PW TBD G-D-1.3.1 Partner with Monterey County Health Department. PW TBD G-D-1.3.2 Initiate a Heat Pump Retrofit Program. PW TBD G-D-1.3.3 Invest in Improving Resilience in Critical Facilities. PW TBD G-D-1.3.4 Conduct a Feasibility Study for Existing Building Electrification and Back-up Power. PW TBD G-D-1.3.5 Improve Resilience in Existing Building Stock. PW TBD G-D-1.3.6 Promote Funding Opportunities. PW TBD
G-D-1.4.1 Develop Partnerships to Provide Support to Displaced Workers. PW TBD G-D-1.4.2 Establish Partnerships to Develop a Resilient Economy. PW TBD G-D-1.4.3 Business Resilience Outreach Program. Collaborate PW TBD G-D-1.4.4 Hire a Grant Writer/Climate Coordinator. PW TBD G-D-2.1.1 Increase Funding for Climate Adaptation. PW TBD G-D-2.1.2 Increase Urban Forest Resilience. PW TBD
G-D-2.1.3 Increase Resilience of the Mission Trail Nature Preserve and Pescadero Canyon. PW TBD G-D-2.1.4 Increase Resilience of the North Dunes. PW TBD G-D-2.1.5 Increase Resilience to Stronger Storms. PW TBD G-D-2.1.6 Beach Sand Monitoring Program. PW TBD
G-D-2.1.7 Carmel Cove Sand Supply. PW TBD
G-D-3.1.1 Underground Utilities in Fire Hazard Zones (Develop Plan). PW TBD G-D-3.1.2 Increase Green Infrastructure. PW TBD
G-D-3.1.3 Public Building Electrification. PW TBD
G-D-3.1.4 Reduce Stormwater Runoff. PW TBD
G-D-3.1.5 Storm Drain Repair Funding and Improvements. PW TBD G-D-3.1.6 Retrofit Existing Critical Buildings and Related Infrastructure. PW TBD G-D-3.1.7 Water Conservation. PW TBD
G-D-3.1.8 Bluff Structural Monitoring Program. PW TBD
G-D-3.1.9 Sea Level Rise Coastal Vulnerability Study. PW TBD S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 4 of 10 ATTACHMENT 1

City Council Strategic Priorities Responsible
Department Priority Level Target Goal Completion
G-D-3.1.10 Wastewater Treatment. PW TBD
G-D-3.2.1 Development Standards. PW TBD
G-D-3.2.2 Update City Planning Guidelines. PW TBD
G-D-3.2.3 Incorporate Climate Change Adaptation into Local Plans. PW TBD G-D-3.2.4 Update Shoreline Management Plan. PW TBD
G-D-3.2.5 Multi-Jurisdictional Hazard Mitigation Plan. PW TBD P-6.2 Housing Element - Cycle 6
Program # Program Name

1.1.A Adequate Sites CPB Dec-31

1.1.B Development on Small Sites CPB Jun-28

1.1.C Live/Work Housing CPB Jun-26

1.1.D Mixed-Income Incentive Program CPB Jun-28

1.1.E Affordable Housing on Religious Facility Properties CPB Multiple

1.1.F Hotel-to-Residential Conversion CPB Jun-27

1.1.G Hotel Employee Housing Program CPB Jun-27

1.1.H Accessory Dwelling Units CPB Multiple

1.2.A Water Distribution Prioritization for Affordable Housing CPB DONE

1.2.B Address Infrastructure Constraints CPB Dec-31

1.3.A Condominium Conversions CPB Dec-31

1.3.B Employee Housing (Farmworker) CPB Jun-26

1.3.C Manufactured Homes on a Foundation System CPB Jun-26

1.3.D Senate Bill 35 and Senate Bill 423 Processing Procedure CPB Dec-26

1.3.E Emergency Shelters CPB Jun-26

1.3.F Forest and Beach Commission Required Findings CPB Jun-26

1.4.A Modify or Eliminate Onerous Use Permits CPB Jun-28

1.4.B Objective Design and Development Standards CPB Jun-27

1.4.C By-Right Approval CPB Dec-31

2.1.A Incentives for Mixed-Use Development CPB Jun-28

2.1.B Permanent Housing CPB Dec-31

2.1.C Monitor Affordable Housing Stock CPB Jun-26

2.1.D Establish Affordable Housing Trust Fund CPB Dec-26

2.2.A Historic Preservation Educational Programs CPB Dec-31

2.3.A Preserve and Increase Upper Floor Residential Uses CPB Dec-31 S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 5 of 10 ATTACHMENT 1

City Council Strategic Priorities Responsible
Department Priority Level Target Goal Completion

2.4.A Housing Rehabilitation and Maintenance Information CPB Dec-31

3.1.A Mixed-Use Affordable Housing CPB Jun-28

3.1.B Housing for Extremely Low-Income Households CPB Dec-31

3.1.C Density Bonus CPB Dec-31

3.1.D Reduced Entitlement and Development Fees CPB Jul-26

3.1.E Reduced Parking Requirements CPB Jun-26

3.1.F Expedited Processing Procedures CPB Dec-26

3.1.G Establish Minimum Densities CPB Jun-28

3.2.A Reasonable Accommodation Procedures CPB DONE

3.2.B Housing Mobility CPB Multiple

3.2.C Family Friendly Housing CPB Jun-28

3.2.D Local Universal Design Standards CPB Jun-28

3.3.A Zoning for Transitional and Supportive Housing CPB Jun-26

3.3.B Low-Barrier Navigation Centers CPB Jun-26

3.3.C Unlicensed Residential Care Facilities CPB Jun-26

3.3.D Single Room Occupancy (SRO) Units CPB Jun-26

4.1.A Water Conservation CPB Dec-31

4.1.B Energy Conservation and Green Building CPB Dec-31

5.1.A Fair Housing Services CPB Dec-31

5.1.B Housing Choice Voucher Program CPB Dec-31

5.1.C Shared Housing Information CPB Dec-31

5.1.D Farmworker Housing CPB Dec-31

5.2.A Support Community Organizations CPB Dec-31
P-6.3 Carmel Forest Management Plan
Program # Program Name
G-6.3.1 IN PROCESS PW TBD
P-6.4 Community Wildfire Prevention Program (CWPP)
Program # Program Name
G-1.1 Conduct biannual educational seminars to educate residents on wildfire preparedness and mitigation PW/CPB TBD G-1.2 Create educational materials depicting proper defensible space guidelines PW/CPB TBD G-1.3 Maintain the project StoryMap as a hub for information sharing amongst community members and interested parties PW/CPB TBD G-1.4 Provide resources to for groups to pursue National Fire Protection Association Firewise USA Program PW/CPB TBD S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 6 of 10 ATTACHMENT 1

City Council Strategic Priorities Responsible
Department Priority Level Target Goal Completion
G-1.5 Conduct outreach specific to vulnerable communities PW/CPB TBD G-1.6 Collaborate with Monterey County Fire Safe Council to disseminate educational information PW/CPB TBD G-1.7 Leverage local groups, such as Carmel CERT, to disseminate information on wildfire risk PW/CPB TBD G-1.8 Host practice evacuation events throughout the Plan Area on an annual basis PW/CPB TBD G-1.9 Conduct public outreach/education where vegetation management projects are proposed prior to work PW/CPB TBD G-2.1 Support collaborative vegetation management projects across ownership boundaries PW/CPB TBD G-2.2 Collaborate with Pebble Beach Community Services District and CAL FIRE on wildfire mitigation strategies PW/CPB TBD G-2.3 Consult with local tribes during wildfire mitigation planning PW/CPB TBD G-2.4 Collaborate with the Monterey County Fire Safe Council to prioritize community wildfire mitigation projects PW/CPB TBD G-2.5 Work with rec. facilities, campgrounds, and other guest-oriented businesses to develop evacuation preplans PW/CPB TBD G-2.6 Coordinate with interested parties (U.S. Forest Service, CAL FIRE, etc.) on information and resource sharing PW/CPB TBD G-2.7 Update the General Plan Safety Element to address wildfire risk PW/CPB TBD G-2.8 Partner with universities and research institutions to support or conduct wildfire-related projects or research PW/CPB TBD G-2.9 Develop an evacuation plan with the Community Hospital of the Monterey Peninsula PW/CPB TBD G-3.1 Identify critical infrastructure and facilities in need of structural hardening PW/CPB TBD G-3.2 Conduct roadside fuels reduction along major roadways and roads identified as evacuation routes PW/CPB TBD G-3.3 Identify and remove hazardous trees along major evacuation corridors PW/CPB TBD G-3.4 Revaluate City Tree Ordinances to expedite maintenance or the removal of trees that pose wildfire hazards PW/CPB TBD G-3.5 Develop a coordinated evacuation plan for the Plan Area PW/CPB TBD G-3.6 Evaluate opportunities for engaging residents and landowners in structural retrofit programs PW/CPB TBD G-3.7 Encourage structural retrofits through assessments, community education, and grant funding opportunities PW/CPB TBD G-3.8 Install evacuation signage/lighting along designated evacuation routes PW/CPB TBD G-3.9 Facilitate emergency vehicle access and evaluate need for road maintenance on private and public roads PW/CPB TBD G-3.10 Coordinate with jurisdictions controlling outside roads (CalTrans, etc.) on maintenance agreements PW/CPB TBD G-3.11 Establish staging areas and shelter-in-place sites PW/CPB TBD G-4.1 Implement vegetation treatment activities identified in Appendix C PW/CPB TBD G-4.2 Ensure appropriate environmental review is conducted prior to implementing fuels reduction projects PW/CPB TBD G-4.3 Consult with a qualified biologist and/or Professional Forester when designing fuels treatment prescriptions PW/CPB TBD G-4.4 Promote Monterey pine regeneration through fuels reduction projects PW/CPB TBD G-4.5 Develop a French broom removal program and reduce hazardous ladder fuels PW/CPB TBD G-4.6 Remove dead and down woody debris annually following winter storms and prior to June 1 of each year PW/CPB TBD G-4.7 Conduct annual monitoring of vegetation management project areas and maintain as needed PW/CPB TBD G-4.8 Consider the use of cultural burning PW/CPB TBD
G-4.9 Develop post-fire rehabilitation guidelines in cooperation with appropriate federal, state, and local agencies PW/CPB TBD S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 7 of 10 ATTACHMENT 1

City Council Strategic Priorities Responsible
Department Priority Level Target Goal Completion
G-5.1 Hold annual meetings with mutual aid partners to discuss emergency response goals and review targets PW/CPB TBD G-5.2 Prepare annual reports of incidents and responding mutual aid partners PW/CPB TBD G-5.3 Identify additional resources needed to adequately respond to wildfires and achieve response target goals PW/CPB TBD G-6.1 Evaluate staffing capacity annually and identify needs to ensure capacity for wildfire projects PW/CPB TBD G-6.2 Identify and pursue grant funding opportunities for wildfire projects PW/CPB TBD G-6.3 Pursue efforts to get on California’s Fire Risk Reduction Communities List to be prioritized for Grant Funding PW/CPB TBD G-6.4 Pursue the development of a Home Hardening Grant Program PW/CPB TBD G-6.5 Collaborate with the Monterey County Fire Safe Council to obtain grants for wildfire mitigation projects PW/CPB TBD G-6.6 Increase the number of properties inspected in the Plan Area annually PW/CPB TBD G-6.7 Empower community groups, etc. to pursue grant funding for community-scale retrofits PW/CPB TBD G-6.8 Evaluate subsidies or incentives for property owners to complete and maintain vegetation management PW/CPB TBD P-6.5 IT Strategic Plan
Program # Program Name
G-x.x.x IN PROCESS Admin/IT TBD
P-6.6 Library Master Plan
Program # Program Name
G-1.1.1 Establish regular weekly hours for tech help Admin/Library TBD G-1.1.2 Collaborate with Carmel, Carmel Valley, Big Sur and Pebble Beach schools on programs on a regular basis Admin/Library TBD G-1.1.3 Continue to learn from and build on established programs and explore new program ideas as they arise Admin/Library TBD G-1.2.1 Conduct Community Conversations and produce an updated Public Knowledge Report Admin/Library TBD G-1.2.2 Provide a variety of ways for community members to provide feedback Admin/Library TBD G-1.3.1 Better serve patrons with dementia and Alzheimer's and their caregivers Admin/Library TBD G-1.3.2 Start a conversation with the community workforce to understand their needs and wants Admin/Library TBD G-1.3.3 Explore option for books delivery to homebound patrons, including a partnership with Carmel Foundation Admin/Library TBD G-1.3.4 Develop an accommodation policy Admin/Library TBD G-1.4.1 Re-brand the library so that it is clear who we are, where we are, and what we do Admin/Library TBD G-1.4.2 Develop a plan and strategy for marketing and communication of library services Admin/Library TBD G-1.4.3 Conduct outreach to community leaders to ensure understanding of the value of the Library Admin/Library TBD G-1.4.4 Work with local realtors to distribute a welcome packet for new community members Admin/Library TBD G-1.4.5 Encourage community advocacy for the library Admin/Library TBD G-2.1.1 Look for opportunities to renovate both library buildings Admin/Library TBD G-2.1.2 Ensure continuity of operations during any renovation projects Admin/Library TBD S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 8 of 10 ATTACHMENT 1

City Council Strategic Priorities Responsible
Department Priority Level Target Goal Completion
G-2.2.1 Introduce patrons and visitors to the library in the Harrison Library garden with improved signage Admin/Library TBD G-2.2.2 Conduct nature-centric programs utilizing the HML garden and other greenspaces in the City Admin/Library TBD G-2.3.1 Restore Saturday hours Admin/Library TBD
G-2.4.1 Continue to invest in Wonderbook, large print, audio collections, and explore a braille collection Admin/Library TBD G-3.1.1 Review, reaffirm, and amend library policies and procedures to ensure transparency and efficiency Admin/Library TBD G-3.1.2 Work with Pacific Grove and Monterey libraries to implement book/DVD sharing Admin/Library TBD G-3.1.3 Work with community organizations to identify projects that could provide opportunities for special funding Admin/Library TBD G-3.1.4 Better promote purchase suggestions to further engage the community in collection development Admin/Library TBD G-3.2.1 Develop staff training plan (1 all-staff training per month) including emergency preparedness Admin/Library TBD G-3.2.2 Map the library’s volunteer needs and map the needs of volunteers Admin/Library TBD G-4.1.1 Investigate ways to reduce waste in library operations (paper, single-use plastics, etc.) Admin/Library TBD G-4.1.2 Look for opportunities to switch to local/sustainable/Certified/etc. companies and vendors when possible Admin/Library TBD G-4.1.3 Work with Public Works to identify opportunities to reduce energy consumption in library buildings Admin/Library TBD G-4.2.1 Develop Continuity of Operations Plan for the Library Admin/Library TBD G-4.2.2 Create a special collections evacuation plan in case of an emergency Admin/Library TBD G-4.2.3 Prioritize staff training on disaster recovery topics, such as salvaging water-damaged materials Admin/Library TBD G-4.3.1 Regularly host sustainability and resilience related programs that are relevant to Carmel Admin/Library TBD G-4.3.2 Provide opportunities for organizations such as CERT, CalFire, Carmel Prepares to share info Admin/Library TBD G-4.4.1 Continue to act as a charging/warming center during storms and power outages Admin/Library TBD G-x.x.x Explore additional ways we can support our community during emergencies and extreme weather events Admin/Library TBD P-6.7 Mission Trails Nature Preserve Master Plan
Program # Program Name
G-x.x.x IN PROCESS PW TBD
Future Projects - These are projects that are important, but are not actively being worked on by City Staff until directed by Council.

F-1 (MOVED UP TO PRIORITY G-1.2.5) Transient Occupancy Tax (TOT) Increase Admin TBD F-2 Explore Opportunities for Flanders Mansion Admin TBD F-3 Explore Opportunities for Permanent Outdoor Dining/Downtown Master Plan CPB DELETED F-4 Outdoor Wine Tasting Ordinance CPB DELETED
F-5 (MOVED UP TO PRIORITY G-3.3.2) Explore Opportunities for Scout House Admin TBD F-6 (MOVED UP TO PRIORITY G-3.3.2) Carmel Area Wastewater District (CAWD) Bridge to Everywhere Project CPB TBD F-7 Undergrounding Power Lines separate from Rule 20A PW TBD S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 9 of 10 ATTACHMENT 1

City Council Strategic Priorities Responsible
Department Priority Level Target Goal Completion
F-8 Build city-owned conduit system for data (currently Comcast owned) Admin/IT TBD F-9 Implement a parking and traffic management program Admin/CPB TBD S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 10 of 10 ATTACHMENT 1

City Council Strategic Priorities Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
Key to the Strategic Priorities List:

S: These are Council STRATEGIC areas, which are high-level and long term visions for the City P: These are Council PRIORITY areas, which focus on more specific objectives within one of the long term strategic visions G: These are Council GOALS, which are the measurable outcomes or tasks that will be completed within each priority area S-1 Exercise Financial Sustainability, Accountability and Transparency P-1.1 Budget Clarity
G-1.1.1 Increase usability and clarity of financial reports given to Council Admin/Finance 3 Y July 2026 G-1.1.2 Create an online public facing CIP tracking dashboard Admin/IT 1 Y Mar 2026 P-1.2 Financial Health
G-1.2.1 Receive Council approval on revised investment portfolio approach Admin/Finance Y TBD G-1.2.2 Complete internal review (checklist) of City readiness to take on bonds or other financing Admin/Finance Y TBD G-1.2.3 Implement a new HR, Finance and Payroll management system (ERP) Admin/Finance Y Jan 2027 G-1.2.4 Develop menu of potential revenue sources to close City's funding shortfalls 1 Y May 2026 G-1.2.5 Provide Council a presentation on placing a TOT increase on the Nov 2026 ballot and receive direction Admin/Clerk 1 Y Feb 2026 G-1.2.6 Provide Council with a presentation on options for paid parking Admin/PD 2 Y June 2026 S-2 Steward the Natural Environment
P-2.1 Beach Infrastructure Repairs and Maintenance
G-2.1.1 Rebuild 8th Ave. sand ramp PW N Mar 2027
G-2.1.2 Complete 4th Ave. outfall repair/replacement PW N Sep 2027 G-2.1.3 Rebuild 10th Ave. stairs PW N June 2026
G-2.1.4 Rebuild 12th Ave. stairs PW N June 2026
G-2.1.5 Complete maintenance/repair of bluff revetments PW N Ongoing G-2.1.6 Implementation of coastline related items from Climate Action and Adaptation Plan PW 2 N Ongoing P-2.2 Wildfire Mitigation and Prevention
G-2.2.1 Adopt updated Carmel Forest Management Plan (City Council) PW Y Sept 2026 G-2.2.2 Certify LCP amendment for updated Carmel Forest Management Plan (Coastal Commission) PW N Jan 2027 G-2.2.3 Adopt additional citywide wildfire and prevention measures (e.g.,: allowed materials, building code, etc.) CPB/PW N Ongoing G-2.2.4 Complete all tasks on the list of prioritized fuel mitigation projects CPB/PW 1 N Ongoing G-2.2.5 Create and distribute home hardening rules to the community CPB/PW 2 Y Aug 2026 G-2.2.6 Execute a citywide evacuation drill PD 1 N May 2026 S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 1 of 11 ATTACHMENT 2

City Council Strategic Priorities Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
S-3 Maintain Public Safety and Infrastructure
P-3.1 Public Safety
G-3.1.1 Implement a Street Address Program Admin N May 2026 G-3.1.2 Create a plan to improve the resiliency of the City's power grid and present to City Council Admin/PW N TBD G-3.1.3 Complete the City's Rule 20-A project at Del Mar Parking Lot PW N TBD P-3.2 City Buildings and Property (Non-Police/PW)
G-3.2.1 Conduct condition assessment of all City buildings, determine values and develop maintenance plan PW Y Sept 2026 G-3.2.2 Provide presentation to Council on the process required to sell the Scout House and receive direction Admin/PW 2 Y April 2026 G-3.2.3 Provide Council with a draft agreement between the City and the Friends of MTNP for a Rio Park project Admin/PW 3 N TBD P-3.3 City Building (Police/PW)
G-3.3.1 City Council decision on rebuild vs. renovate PW/PD Y DONE G-3.3.2 Select architect PW/PD Y March 2026
G-3.3.3 Construction Plans and financing approved by City Council PW/Admin N July 2027 G-3.3.4 Construction begins PW Y TBD
G-3.3.5 Employees fully move back into building PW/PD Y TBD P-3.4 Digital Infrastructure
G-3.4.1 Complete an IT audit, including cyber-security Admin/IT Y May 2026 G-3.4.2 Develop and adopt an IT Strategic Plan Admin/IT Y July 2026 P-3.5 Streets and Sidewalks
G-3.5.1 Complete repairs to get current on all sidewalk and ADA improvements PW Y Ongoing G-3.5.2 Complete modeling work of street condition to optimize use of CIP funds for maintenance and replacement PW Y April 2026 G-3.5.3 Significantly increase parking enforcement capabilities PD Y June 2026 S-4 Preserve the Village Character
P-4.1 Design Review
G-4.1.1 Adopt updated Design guidelines and Zoning Code - Design Traditions 1.5 Project (City Council) CPB Y Dec 2026 G-4.1.2 Certify LCP amendment for updated Design Guidelines and Zoning Code (Coastal Commission) CPB N Mar 2027 G-4.1.3 Reinstate the Design Review Board (DRB) CPB Y TBD G-4.1.4 Complete Objective Design and Development Standards for affordable units (ODDS) CPB Y April 2027 P-4.2 Housing Policy and Community Sustainability
G-4.2.1 Adopt ADU ordinance (City Council) CPB Y Dec 2026 S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 2 of 11 ATTACHMENT 2

City Council Strategic Priorities Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
G-4.2.2 Certify LCP amendment for ADU Ordinance (Coastal Commission) CPB N Mar 2027 G-4.2.3 Adopt Housing Element amendment to move units from City lots (City Council) CPB N April 2026 G-4.2.4 Certification of Housing Element amendment to move units from City lots (CA State HCD) CPB N June 2026 G-4.2.5 Research policy options in response to accelerating population loss / loss of families with children Admin/CPB 2 Y TBD G-4.2.6 Implement the City's 6th Cycle Housing Element Admin/CPB 1 Y Ongoing S-5 Provide Effective, Reliable, Responsive and Friendly Government Services P-5.1 Process Improvements
G-5.1.1 Implement new permitting software, with focus on integrating Artificial Intelligence CPB/IT Y Dec 2026 G-5.1.2 Implement technologies to support routine staff tasks and free up time for enhanced customer service CPB/IT Y Ongoing G-5.1.3 Implement a citywide customer service program CPB/IT 1 Y Dec 2026 P-5.2 Public Access to Records
G-5.2.1 Scan and digitize all physical city records to make available online (resolutions, ordinances, etc.) Admin/IT Y Ongoing S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 3 of 11 ATTACHMENT 2

City Council Strategic Priorities Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
S-6 Implement the City's Adopted Plans
P-6.1 Climate Action (C) and Adaptation (D) Plan
Program # Program Name
G-C-1.1.1 Energy Efficiency Outreach PW Y TBD
G-C-1.1.2 Energy Efficiency and Electrification Incentives PW N TBD G-C-1.1.3 Energy Efficiency Audits PW N TBD
G-C-1.2.1 Feasibility Study for Existing Building Electrification and Back-up Power. PW Y TBD G-C-1.2.2 Residential Home Energy Renovations. PW Y TBD G-C-1.2.3 Residential Home Energy Renovation Incentives. PW N TBD G-C-1.2.4 Commercial Energy Renovations. PW Y TBD
G-C-1.2.5 Residential Commercial Energy Renovation Incentives. PW N TBD G-C-1.3.1 Energy Efficiency in New Residential Construction PW Y TBD G-C-1.3.2 Energy Efficiency in New Commercial Construction PW Y TBD G-C-2.1.1 Reduce Reliance on Automobiles. PW N TBD
G-C-2.1.2 Develop Bicycle Master Plan to Create Safe Bike Routes around the City PW Y TBD G-C-2.1.3 Ride-Sharing and Bike to Work Programs within City Operations and Businesses PW N TBD G-C-2.2.1 Prioritize Electric Vehicles (EVs) PW Y TBD
G-C-2.3.1 Develop Origin/Destination Transportation Model. PW N TBD G-C-3.1.1 Incentivize Clean Energy Installations PW Y TBD G-C-3.1.2 Increase uptake of 3CE Renewable Generation portfolio PW N TBD G-C-4.1.1 Continued Implementation and Promotion of City and Model Water Efficient Ordinance Standards PW Y TBD G-C-4.1.2 Exceed Water Efficiency Standards PW Y TBD
G-C-5.1.1 Increase the City’s solid waste diversion to reduce landfill methane emissions PW N TBD G-C-6.1.1 Urban Forest Maintenance and Improvement PW Y TBD G-C-6.2.1 Allow Cool Roof Options PW Y TBD
G-D-1.1.1 Maintain and Update Evacuation Plan Every 8 Years. PW N TBD G-D-1.1.2 Update Emergency Preparedness. PW Y TBD
G-D-1.1.3 Collaborate with Monterey Fire. PW N TBD
G-D-1.1.4 Publicize Local Evacuation Routes. PW N TBD
G-D-1.1.5 Evaluate Evacuation Route Capacity. PW Y TBD
G-D-1.2.1 Establish a Resilience Hub. PW N TBD
G-D-1.2.2 Limit the Impacts of Climate Change on the Most Vulnerable Populations. PW N TBD S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 4 of 11 ATTACHMENT 2

City Council Strategic Priorities Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
G-D-1.2.3 Engage the Community. PW Y TBD
G-D-1.2.4 Social Support Network. PW N TBD
G-D-1.2.5 Back-up Power for Vulnerable Populations. PW Y TBD G-D-1.3.1 Partner with Monterey County Health Department. PW N TBD G-D-1.3.2 Initiate a Heat Pump Retrofit Program. PW Y TBD G-D-1.3.3 Invest in Improving Resilience in Critical Facilities. PW Y TBD G-D-1.3.4 Conduct a Feasibility Study for Existing Building Electrification and Back-up Power. PW Y TBD G-D-1.3.5 Improve Resilience in Existing Building Stock. PW Y TBD G-D-1.3.6 Promote Funding Opportunities. PW N TBD
G-D-1.4.1 Develop Partnerships to Provide Support to Displaced Workers. PW N TBD G-D-1.4.2 Establish Partnerships to Develop a Resilient Economy. PW N TBD G-D-1.4.3 Business Resilience Outreach Program. Collaborate PW N TBD G-D-1.4.4 Hire a Grant Writer/Climate Coordinator. PW Y TBD G-D-2.1.1 Increase Funding for Climate Adaptation. PW Y TBD G-D-2.1.2 Increase Urban Forest Resilience. PW Y TBD
G-D-2.1.3 Increase Resilience of the Mission Trail Nature Preserve and Pescadero Canyon. PW N TBD G-D-2.1.4 Increase Resilience of the North Dunes. PW N TBD G-D-2.1.5 Increase Resilience to Stronger Storms. PW N TBD G-D-2.1.6 Beach Sand Monitoring Program. PW Y TBD
G-D-2.1.7 Carmel Cove Sand Supply. PW N TBD
G-D-3.1.1 Underground Utilities in Fire Hazard Zones (Develop Plan). PW N TBD G-D-3.1.2 Increase Green Infrastructure. PW N TBD
G-D-3.1.3 Public Building Electrification. PW Y TBD
G-D-3.1.4 Reduce Stormwater Runoff. PW N TBD
G-D-3.1.5 Storm Drain Repair Funding and Improvements. PW Y TBD G-D-3.1.6 Retrofit Existing Critical Buildings and Related Infrastructure. PW Y TBD G-D-3.1.7 Water Conservation. PW N TBD
G-D-3.1.8 Bluff Structural Monitoring Program. PW Y TBD G-D-3.1.9 Sea Level Rise Coastal Vulnerability Study. PW Y TBD G-D-3.1.10 Wastewater Treatment. PW N TBD
G-D-3.2.1 Development Standards. PW Y TBD
G-D-3.2.2 Update City Planning Guidelines. PW Y TBD
S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 5 of 11 ATTACHMENT 2

City Council Strategic Priorities Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
G-D-3.2.3 Incorporate Climate Change Adaptation into Local Plans. PW Y TBD G-D-3.2.4 Update Shoreline Management Plan. PW N TBD
G-D-3.2.5 Multi-Jurisdictional Hazard Mitigation Plan. PW N TBD P-6.2 Housing Element - Cycle 6
Program # Program Name

1.1.A Adequate Sites CPB Y Dec-31

1.1.B Development on Small Sites CPB Y Jun-28

1.1.C Live/Work Housing CPB Y Jun-26

1.1.D Mixed-Income Incentive Program CPB Y Jun-28

1.1.E Affordable Housing on Religious Facility Properties CPB Y Multiple

1.1.F Hotel-to-Residential Conversion CPB Y Jun-27

1.1.G Hotel Employee Housing Program CPB Y Jun-27

1.1.H Accessory Dwelling Units CPB Y Multiple

1.2.A Water Distribution Prioritization for Affordable Housing CPB N DONE

1.2.B Address Infrastructure Constraints CPB Y Dec-31

1.3.A Condominium Conversions CPB Y Dec-31

1.3.B Employee Housing (Farmworker) CPB Y Jun-26

1.3.C Manufactured Homes on a Foundation System CPB Y Jun-26

1.3.D Senate Bill 35 and Senate Bill 423 Processing Procedure CPB N Dec-26

1.3.E Emergency Shelters CPB Y Jun-26

1.3.F Forest and Beach Commission Required Findings CPB Y Jun-26

1.4.A Modify or Eliminate Onerous Use Permits CPB Y Jun-28

1.4.B Objective Design and Development Standards CPB Y Jun-27

1.4.C By-Right Approval CPB Y Dec-31

2.1.A Incentives for Mixed-Use Development CPB Y Jun-28

2.1.B Permanent Housing CPB Y Dec-31

2.1.C Monitor Affordable Housing Stock CPB Y Jun-26

2.1.D Establish Affordable Housing Trust Fund CPB Y Dec-26

2.2.A Historic Preservation Educational Programs CPB Y Dec-31

2.3.A Preserve and Increase Upper Floor Residential Uses CPB Y Dec-31

2.4.A Housing Rehabilitation and Maintenance Information CPB Y Dec-31 S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 6 of 11 ATTACHMENT 2

City Council Strategic Priorities Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion

3.1.A Mixed-Use Affordable Housing CPB Y Jun-28

3.1.B Housing for Extremely Low-Income Households CPB Y Dec-31

3.1.C Density Bonus CPB Y Dec-31

3.1.D Reduced Entitlement and Development Fees CPB Y Jul-26

3.1.E Reduced Parking Requirements CPB Y Jun-26

3.1.F Expedited Processing Procedures CPB Y Dec-26

3.1.G Establish Minimum Densities CPB Y Jun-28

3.2.A Reasonable Accommodation Procedures CPB Y DONE

3.2.B Housing Mobility CPB Y Multiple

3.2.C Family Friendly Housing CPB Y Jun-28

3.2.D Local Universal Design Standards CPB Y Jun-28

3.3.A Zoning for Transitional and Supportive Housing CPB Y Jun-26

3.3.B Low-Barrier Navigation Centers CPB Y Jun-26

3.3.C Unlicensed Residential Care Facilities CPB Y Jun-26

3.3.D Single Room Occupancy (SRO) Units CPB Y Jun-26

4.1.A Water Conservation CPB N Dec-31

4.1.B Energy Conservation and Green Building CPB N Dec-31

5.1.A Fair Housing Services CPB Y Dec-31

5.1.B Housing Choice Voucher Program CPB N Dec-31

5.1.C Shared Housing Information CPB Y Dec-31

5.1.D Farmworker Housing CPB Y Dec-31

5.2.A Support Community Organizations CPB Y Dec-31
P-6.3 Carmel Forest Management Plan
Program # Program Name
G-6.3.1 IN PROCESS PW Y TBD
P-6.4 Community Wildfire Prevention Program (CWPP)
Program # Program Name
G-1.1 Conduct biannual educational seminars to educate residents on wildfire preparedness and mitigation PW/CPB Y TBD G-1.2 Create educational materials depicting proper defensible space guidelines PW/CPB Y TBD G-1.3 Maintain the project StoryMap as a hub for information sharing amongst community members and interested partie PW/CPB Y TBD S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 7 of 11 ATTACHMENT 2

City Council Strategic Priorities Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
G-1.4 Provide resources to for groups to pursue National Fire Protection Association Firewise USA Program PW/CPB Y TBD G-1.5 Conduct outreach specific to vulnerable communities PW/CPB Y TBD G-1.6 Collaborate with Monterey County Fire Safe Council to disseminate educational information PW/CPB N TBD G-1.7 Leverage local groups, such as Carmel CERT, to disseminate information on wildfire risk PW/CPB N TBD G-1.8 Host practice evacuation events throughout the Plan Area on an annual basis PW/CPB Y TBD G-1.9 Conduct public outreach/education where vegetation management projects are proposed prior to work PW/CPB Y TBD G-2.1 Support collaborative vegetation management projects across ownership boundaries PW/CPB Y TBD G-2.2 Collaborate with Pebble Beach Community Services District and CAL FIRE on wildfire mitigation strategies PW/CPB N TBD G-2.3 Consult with local tribes during wildfire mitigation planning PW/CPB N TBD G-2.4 Collaborate with the Monterey County Fire Safe Council to prioritize community wildfire mitigation projects PW/CPB N TBD G-2.5 Work with rec. facilities, campgrounds, and other guest-oriented businesses to develop evacuation preplans PW/CPB Y TBD G-2.6 Coordinate with interested parties (U.S. Forest Service, CAL FIRE, etc.) on information and resource sharing PW/CPB N TBD G-2.7 Update the General Plan Safety Element to address wildfire risk PW/CPB Y TBD G-2.8 Partner with universities and research institutions to support or conduct wildfire-related projects or research PW/CPB N TBD G-2.9 Develop an evacuation plan with the Community Hospital of the Monterey Peninsula PW/CPB N TBD G-3.1 Identify critical infrastructure and facilities in need of structural hardening PW/CPB Y TBD G-3.2 Conduct roadside fuels reduction along major roadways and roads identified as evacuation routes PW/CPB Y TBD G-3.3 Identify and remove hazardous trees along major evacuation corridors PW/CPB Y TBD G-3.4 Revaluate City Tree Ordinances to expedite maintenance or the removal of trees that pose wildfire hazards PW/CPB Y TBD G-3.5 Develop a coordinated evacuation plan for the Plan Area PW/CPB Y TBD G-3.6 Evaluate opportunities for engaging residents and landowners in structural retrofit programs PW/CPB Y TBD G-3.7 Encourage structural retrofits through assessments, community education, and grant funding opportunities PW/CPB Y TBD G-3.8 Install evacuation signage/lighting along designated evacuation routes PW/CPB Y TBD G-3.9 Facilitate emergency vehicle access and evaluate need for road maintenance on private and public roads PW/CPB Y TBD G-3.10 Coordinate with jurisdictions controlling outside roads (CalTrans, etc.) on maintenance agreements PW/CPB N TBD G-3.11 Establish staging areas and shelter-in-place sites PW/CPB Y TBD G-4.1 Implement vegetation treatment activities identified in Appendix C PW/CPB Y TBD G-4.2 Ensure appropriate environmental review is conducted prior to implementing fuels reduction projects PW/CPB Y TBD G-4.3 Consult with a qualified biologist and/or Professional Forester when designing fuels treatment prescriptions PW/CPB Y TBD G-4.4 Promote Monterey pine regeneration through fuels reduction projects PW/CPB Y TBD G-4.5 Develop a French broom removal program and reduce hazardous ladder fuels PW/CPB Y TBD G-4.6 Remove dead and down woody debris annually following winter storms and prior to June 1 of each year PW/CPB Y TBD S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 8 of 11 ATTACHMENT 2

City Council Strategic Priorities Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
G-4.7 Conduct annual monitoring of vegetation management project areas and maintain as needed PW/CPB Y TBD G-4.8 Consider the use of cultural burning PW/CPB Y TBD G-4.9 Develop post-fire rehabilitation guidelines in cooperation with appropriate federal, state, and local agencies PW/CPB Y TBD G-5.1 Hold annual meetings with mutual aid partners to discuss emergency response goals and review targets PW/CPB N TBD G-5.2 Prepare annual reports of incidents and responding mutual aid partners PW/CPB Y TBD G-5.3 Identify additional resources needed to adequately respond to wildfires and achieve response target goals PW/CPB Y TBD G-6.1 Evaluate staffing capacity annually and identify needs to ensure capacity for wildfire projects PW/CPB Y TBD G-6.2 Identify and pursue grant funding opportunities for wildfire projects PW/CPB Y TBD G-6.3 Pursue efforts to get on California’s Fire Risk Reduction Communities List to be prioritized for Grant Funding PW/CPB Y TBD G-6.4 Pursue the development of a Home Hardening Grant Program PW/CPB Y TBD G-6.5 Collaborate with the Monterey County Fire Safe Council to obtain grants for wildfire mitigation projects PW/CPB N TBD G-6.6 Increase the number of properties inspected in the Plan Area annually PW/CPB Y TBD G-6.7 Empower community groups, etc. to pursue grant funding for community-scale retrofits PW/CPB Y TBD G-6.8 Evaluate subsidies or incentives for property owners to complete and maintain vegetation management PW/CPB Y TBD P-6.5 IT Strategic Plan
Program # Program Name
G-x.x.x IN PROCESS Admin/IT N TBD
P-6.6 Library Master Plan
Program # Program Name
G-1.1.1 Establish regular weekly hours for tech help Admin/Library Y TBD G-1.1.2 Collaborate with Carmel, Carmel Valley, Big Sur and Pebble Beach schools on programs on a regular basis Admin/Library N TBD G-1.1.3 Continue to learn from and build on established programs and explore new program ideas as they arise Admin/Library Y TBD G-1.2.1 Conduct Community Conversations and produce an updated Public Knowledge Report Admin/Library Y TBD G-1.2.2 Provide a variety of ways for community members to provide feedback Admin/Library Y TBD G-1.3.1 Better serve patrons with dementia and Alzheimer's and their caregivers Admin/Library Y TBD G-1.3.2 Start a conversation with the community workforce to understand their needs and wants Admin/Library Y TBD G-1.3.3 Explore option for books delivery to homebound patrons, including a partnership with Carmel Foundation Admin/Library Y TBD G-1.3.4 Develop an accommodation policy Admin/Library Y TBD G-1.4.1 Re-brand the library so that it is clear who we are, where we are, and what we do Admin/Library Y TBD G-1.4.2 Develop a plan and strategy for marketing and communication of library services Admin/Library Y TBD S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 9 of 11 ATTACHMENT 2

City Council Strategic Priorities Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
G-1.4.3 Conduct outreach to community leaders to ensure understanding of the value of the Library Admin/Library Y TBD G-1.4.4 Work with local realtors to distribute a welcome packet for new community members Admin/Library Y TBD G-1.4.5 Encourage community advocacy for the library Admin/Library N TBD G-2.1.1 Look for opportunities to renovate both library buildings Admin/Library Y TBD G-2.1.2 Ensure continuity of operations during any renovation projects Admin/Library Y TBD G-2.2.1 Introduce patrons and visitors to the library in the Harrison Library garden with improved signage Admin/Library Y TBD G-2.2.2 Conduct nature-centric programs utilizing the HML garden and other greenspaces in the City Admin/Library Y TBD G-2.3.1 Restore Saturday hours Admin/Library Y TBD
G-2.4.1 Continue to invest in Wonderbook, large print, audio collections, and explore a braille collection Admin/Library Y TBD G-3.1.1 Review, reaffirm, and amend library policies and procedures to ensure transparency and efficiency Admin/Library Y TBD G-3.1.2 Work with Pacific Grove and Monterey libraries to implement book/DVD sharing Admin/Library N TBD G-3.1.3 Work with community organizations to identify projects that could provide opportunities for special funding Admin/Library N TBD G-3.1.4 Better promote purchase suggestions to further engage the community in collection development Admin/Library Y TBD G-3.2.1 Develop staff training plan (1 all-staff training per month) including emergency preparedness Admin/Library Y TBD G-3.2.2 Map the library’s volunteer needs and map the needs of volunteers Admin/Library Y TBD G-4.1.1 Investigate ways to reduce waste in library operations (paper, single-use plastics, etc.) Admin/Library Y TBD G-4.1.2 Look for opportunities to switch to local/sustainable/Certified/etc. companies and vendors when possible Admin/Library Y TBD G-4.1.3 Work with Public Works to identify opportunities to reduce energy consumption in library buildings Admin/Library Y TBD G-4.2.1 Develop Continuity of Operations Plan for the Library Admin/Library Y TBD G-4.2.2 Create a special collections evacuation plan in case of an emergency Admin/Library Y TBD G-4.2.3 Prioritize staff training on disaster recovery topics, such as salvaging water-damaged materials Admin/Library Y TBD G-4.3.1 Regularly host sustainability and resilience related programs that are relevant to Carmel Admin/Library Y TBD G-4.3.2 Provide opportunities for organizations such as CERT, CalFire, Carmel Prepares to share info Admin/Library Y TBD G-4.4.1 Continue to act as a charging/warming center during storms and power outages Admin/Library Y TBD G-x.x.x Explore additional ways we can support our community during emergencies and extreme weather events Admin/Library Y TBD P-6.7 Mission Trails Nature Preserve Master Plan
Program # Program Name
G-x.x.x IN PROCESS PW N TBD
Future Projects - These are projects that are important, but are not actively being worked on by City Staff until directed by Council.

F-1 Explore Opportunities for Flanders Mansion Admin Y TBD S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 10 of 11 ATTACHMENT 2

City Council Strategic Priorities Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
F-2 Undergrounding Power Lines separate from Rule 20A PW Y TBD F-3 Build city-owned conduit system for data (currently Comcast owned) Admin/IT Y TBD F-4 Implement a parking and traffic management program Admin/CPB Y TBD S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 11 of 11 ATTACHMENT 2

City Council Strategic Priorities - SAMPLE Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
Key to the Strategic Priorities List:

S: These are Council STRATEGIC areas, which are high-level and long term visions for the City P: These are Council PRIORITY areas, which focus on more specific objectives within one of the long term strategic visions G: These are Council GOALS, which are the measurable outcomes or tasks that will be completed within each priority area S-1 Exercise Financial Sustainability, Accountability and Transparency P-1.1 Budget Clarity
G-1.1.2 Create an online public facing CIP tracking dashboard Admin/IT 1 Y Mar 2026 P-1.2 Financial Health
G-1.2.3 Implement a new HR, Finance and Payroll management system (ERP) Admin/Finance 2 Y Jan 2027 G-1.2.4 Develop menu of potential revenue sources to close City's funding shortfalls 1 Y May 2026 G-1.2.5 Provide Council a presentation on placing a TOT increase on the Nov 2026 ballot and receive direction Admin/Clerk 1 Y Feb 2026 G-1.2.6 Provide Council with a presentation on options for paid parking Admin/PD 2 Y June 2026 S-2 Steward the Natural Environment
P-2.1 Beach Infrastructure Repairs and Maintenance
G-2.1.1 Rebuild 8th Ave. sand ramp PW 1 N Mar 2027
G-2.1.2 Complete 4th Ave. outfall repair/replacement PW 1 N Sep 2027 G-2.1.3 Rebuild 10th Ave. stairs PW 1 N June 2026
G-2.1.4 Rebuild 12th Ave. stairs PW 1 N June 2026
G-2.1.5 Complete maintenance/repair of bluff revetments PW 1 N Ongoing G-2.1.6 Implementation of coastline related items from Climate Action and Adaptation Plan PW 2 N Ongoing P-2.2 Wildfire Mitigation and Prevention
G-2.2.1 Adopt updated Carmel Forest Management Plan (City Council) PW 1 Y Sept 2026 G-2.2.2 Certify LCP amendment for updated Carmel Forest Management Plan (Coastal Commission) PW 1 N Jan 2027 G-2.2.3 Adopt additional citywide wildfire and prevention measures (e.g.,: allowed materials, building code, etc.) CPB/PW 2 N Ongoing G-2.2.4 Complete all tasks on the list of prioritized fuel mitigation projects CPB/PW 1 N Ongoing G-2.2.5 Create and distribute home hardening rules to the community CPB/PW 2 Y Aug 2026 G-2.2.6 Execute a citywide evacuation drill PD 1 N May 2026 S-3 Maintain Public Safety and Infrastructure
P-3.1 Public Safety
S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 1 of 10 ATTACHMENT 3

City Council Strategic Priorities - SAMPLE Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
G-3.1.1 Implement a Street Address Program Admin 1 N May 2026 G-3.1.2 Create a plan to improve the resiliency of the City's power grid and present to City Council Admin/PW 2 N TBD P-3.2 City Buildings and Property (Non-Police/PW)
G-3.2.1 Conduct condition assessment of all City buildings, determine values and develop maintenance plan PW 2 Y Sept 2026 G-3.2.2 Provide presentation to Council on the process required to sell the Scout House and receive direction Admin/PW 2 Y April 2026 G-3.2.3 Provide Council with a draft agreement between the City and the Friends of MTNP for a Rio Park project Admin/PW 3 N TBD P-3.3 City Building (Police/PW)
G-3.3.2 Select architect PW/PD 1 Y March 2026
G-3.3.3 Construction Plans and financing approved by City Council PW/Admin 1 N July 2027 G-3.3.4 Construction begins PW 1 Y TBD
G-3.3.5 Employees fully move back into building PW/PD 1 Y TBD P-3.4 Digital Infrastructure
G-3.4.1 Complete an IT audit, including cyber-security Admin/IT 1 Y May 2026 G-3.4.2 Develop and adopt an IT Strategic Plan Admin/IT 2 Y July 2026 P-3.5 Streets and Sidewalks
G-3.5.1 Complete repairs to get current on all sidewalk and ADA improvements PW 2 Y Ongoing G-3.5.3 Significantly increase parking enforcement capabilities PD 1 Y June 2026 S-4 Preserve the Village Character
P-4.1 Design Review
G-4.1.1 Adopt updated Design guidelines and Zoning Code - Design Traditions 1.5 Project (City Council) CPB 1 Y Dec 2026 G-4.1.2 Certify LCP amendment for updated Design Guidelines and Zoning Code (Coastal Commission) CPB 1 N Mar 2027 G-4.1.4 Complete Objective Design and Development Standards for affordable units (ODDS) CPB 1 Y April 2027 P-4.2 Housing Policy and Community Sustainability
G-4.2.1 Adopt ADU ordinance (City Council) CPB 1 Y Dec 2026 G-4.2.2 Certify LCP amendment for ADU Ordinance (Coastal Commission) CPB 1 N Mar 2027 G-4.2.3 Adopt Housing Element amendment to move units from City lots (City Council) CPB 1 N April 2026 G-4.2.4 Certification of Housing Element amendment to move units from City lots (CA State HCD) CPB 1 N June 2026 G-4.2.5 Research policy options in response to accelerating population loss / loss of families with children Admin/CPB 2 Y TBD G-4.2.6 Implement the City's 6th Cycle Housing Element Admin/CPB 1 Y Ongoing S-5 Provide Effective, Reliable, Responsive and Friendly Government Services P-5.1 Process Improvements
S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 2 of 10 ATTACHMENT 3

City Council Strategic Priorities - SAMPLE Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
G-5.1.1 Implement new permitting software, with focus on integrating Artificial Intelligence CPB/IT 2 Y Dec 2026 G-5.1.2 Implement technologies to support routine staff tasks and free up time for enhanced customer service CPB/IT 1 Y Ongoing G-5.1.3 Implement a citywide customer service program CPB/IT 1 Y Dec 2026 P-5.2 Public Access to Records
S-6 Implement the City's Adopted Plans
P-6.1 Climate Action (C) and Adaptation (D) Plan
Program # Program Name
G-C-1.1.1 Energy Efficiency Outreach PW Y TBD
G-C-1.1.2 Energy Efficiency and Electrification Incentives PW N TBD G-C-1.1.3 Energy Efficiency Audits PW N TBD
G-C-1.2.1 Feasibility Study for Existing Building Electrification and Back-up Power. PW Y TBD G-C-1.2.2 Residential Home Energy Renovations. PW Y TBD G-C-1.2.3 Residential Home Energy Renovation Incentives. PW N TBD G-C-1.2.4 Commercial Energy Renovations. PW Y TBD
G-C-1.2.5 Residential Commercial Energy Renovation Incentives. PW N TBD G-C-1.3.1 Energy Efficiency in New Residential Construction PW Y TBD G-C-1.3.2 Energy Efficiency in New Commercial Construction PW Y TBD G-C-2.1.1 Reduce Reliance on Automobiles. PW N TBD
G-C-2.1.2 Develop Bicycle Master Plan to Create Safe Bike Routes around the City PW Y TBD G-C-2.1.3 Ride-Sharing and Bike to Work Programs within City Operations and Businesses PW N TBD G-C-2.2.1 Prioritize Electric Vehicles (EVs) PW Y TBD
G-C-2.3.1 Develop Origin/Destination Transportation Model. PW N TBD G-C-3.1.1 Incentivize Clean Energy Installations PW Y TBD G-C-3.1.2 Increase uptake of 3CE Renewable Generation portfolio PW N TBD G-C-4.1.1 Continued Implementation and Promotion of City and Model Water Efficient Ordinance Standards PW Y TBD G-C-4.1.2 Exceed Water Efficiency Standards PW Y TBD
G-C-5.1.1 Increase the City’s solid waste diversion to reduce landfill methane emissions PW N TBD G-C-6.1.1 Urban Forest Maintenance and Improvement PW Y TBD G-C-6.2.1 Allow Cool Roof Options PW Y TBD
G-D-1.1.1 Maintain and Update Evacuation Plan Every 8 Years. PW N TBD G-D-1.1.2 Update Emergency Preparedness. PW Y TBD
G-D-1.1.3 Collaborate with Monterey Fire. PW N TBD
S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 3 of 10 ATTACHMENT 3

City Council Strategic Priorities - SAMPLE Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
G-D-1.1.4 Publicize Local Evacuation Routes. PW N TBD
G-D-1.1.5 Evaluate Evacuation Route Capacity. PW Y TBD
G-D-1.2.1 Establish a Resilience Hub. PW N TBD
G-D-1.2.2 Limit the Impacts of Climate Change on the Most Vulnerable Populations. PW N TBD G-D-1.2.3 Engage the Community. PW Y TBD
G-D-1.2.4 Social Support Network. PW N TBD
G-D-1.2.5 Back-up Power for Vulnerable Populations. PW Y TBD G-D-1.3.1 Partner with Monterey County Health Department. PW N TBD G-D-1.3.2 Initiate a Heat Pump Retrofit Program. PW Y TBD G-D-1.3.3 Invest in Improving Resilience in Critical Facilities. PW Y TBD G-D-1.3.4 Conduct a Feasibility Study for Existing Building Electrification and Back-up Power. PW Y TBD G-D-1.3.5 Improve Resilience in Existing Building Stock. PW Y TBD G-D-1.3.6 Promote Funding Opportunities. PW N TBD
G-D-1.4.1 Develop Partnerships to Provide Support to Displaced Workers. PW N TBD G-D-1.4.2 Establish Partnerships to Develop a Resilient Economy. PW N TBD G-D-1.4.3 Business Resilience Outreach Program. Collaborate PW N TBD G-D-1.4.4 Hire a Grant Writer/Climate Coordinator. PW Y TBD G-D-2.1.1 Increase Funding for Climate Adaptation. PW Y TBD G-D-2.1.2 Increase Urban Forest Resilience. PW Y TBD
G-D-2.1.3 Increase Resilience of the Mission Trail Nature Preserve and Pescadero Canyon. PW N TBD G-D-2.1.4 Increase Resilience of the North Dunes. PW N TBD G-D-2.1.5 Increase Resilience to Stronger Storms. PW N TBD G-D-2.1.6 Beach Sand Monitoring Program. PW Y TBD
G-D-2.1.7 Carmel Cove Sand Supply. PW N TBD
G-D-3.1.1 Underground Utilities in Fire Hazard Zones (Develop Plan). PW N TBD G-D-3.1.2 Increase Green Infrastructure. PW N TBD
G-D-3.1.3 Public Building Electrification. PW Y TBD
G-D-3.1.4 Reduce Stormwater Runoff. PW N TBD
G-D-3.1.5 Storm Drain Repair Funding and Improvements. PW Y TBD G-D-3.1.6 Retrofit Existing Critical Buildings and Related Infrastructure. PW Y TBD G-D-3.1.7 Water Conservation. PW N TBD
G-D-3.1.8 Bluff Structural Monitoring Program. PW Y TBD G-D-3.1.9 Sea Level Rise Coastal Vulnerability Study. PW Y TBD S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 4 of 10 ATTACHMENT 3

City Council Strategic Priorities - SAMPLE Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
G-D-3.1.10 Wastewater Treatment. PW N TBD
G-D-3.2.1 Development Standards. PW Y TBD
G-D-3.2.2 Update City Planning Guidelines. PW Y TBD
G-D-3.2.3 Incorporate Climate Change Adaptation into Local Plans. PW Y TBD G-D-3.2.4 Update Shoreline Management Plan. PW N TBD
G-D-3.2.5 Multi-Jurisdictional Hazard Mitigation Plan. PW N TBD P-6.2 Housing Element - Cycle 6
Program # Program Name

1.1.A Adequate Sites CPB Y Dec-31

1.1.B Development on Small Sites CPB Y Jun-28

1.1.C Live/Work Housing CPB Y Jun-26

1.1.D Mixed-Income Incentive Program CPB Y Jun-28

1.1.E Affordable Housing on Religious Facility Properties CPB Y Multiple

1.1.F Hotel-to-Residential Conversion CPB Y Jun-27

1.1.G Hotel Employee Housing Program CPB Y Jun-27

1.1.H Accessory Dwelling Units CPB Y Multiple

1.2.A Water Distribution Prioritization for Affordable Housing CPB N DONE

1.2.B Address Infrastructure Constraints CPB Y Dec-31

1.3.A Condominium Conversions CPB Y Dec-31

1.3.B Employee Housing (Farmworker) CPB Y Jun-26

1.3.C Manufactured Homes on a Foundation System CPB Y Jun-26

1.3.D Senate Bill 35 and Senate Bill 423 Processing Procedure CPB N Dec-26

1.3.E Emergency Shelters CPB Y Jun-26

1.3.F Forest and Beach Commission Required Findings CPB Y Jun-26

1.4.A Modify or Eliminate Onerous Use Permits CPB Y Jun-28

1.4.B Objective Design and Development Standards CPB Y Jun-27

1.4.C By-Right Approval CPB Y Dec-31

2.1.A Incentives for Mixed-Use Development CPB Y Jun-28

2.1.B Permanent Housing CPB Y Dec-31

2.1.C Monitor Affordable Housing Stock CPB Y Jun-26

2.1.D Establish Affordable Housing Trust Fund CPB Y Dec-26

2.2.A Historic Preservation Educational Programs CPB Y Dec-31 S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 5 of 10 ATTACHMENT 3

City Council Strategic Priorities - SAMPLE Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion

2.3.A Preserve and Increase Upper Floor Residential Uses CPB Y Dec-31

2.4.A Housing Rehabilitation and Maintenance Information CPB Y Dec-31

3.1.A Mixed-Use Affordable Housing CPB Y Jun-28

3.1.B Housing for Extremely Low-Income Households CPB Y Dec-31

3.1.C Density Bonus CPB Y Dec-31

3.1.D Reduced Entitlement and Development Fees CPB Y Jul-26

3.1.E Reduced Parking Requirements CPB Y Jun-26

3.1.F Expedited Processing Procedures CPB Y Dec-26

3.1.G Establish Minimum Densities CPB Y Jun-28

3.2.A Reasonable Accommodation Procedures CPB Y DONE

3.2.B Housing Mobility CPB Y Multiple

3.2.C Family Friendly Housing CPB Y Jun-28

3.2.D Local Universal Design Standards CPB Y Jun-28

3.3.A Zoning for Transitional and Supportive Housing CPB Y Jun-26

3.3.B Low-Barrier Navigation Centers CPB Y Jun-26

3.3.C Unlicensed Residential Care Facilities CPB Y Jun-26

3.3.D Single Room Occupancy (SRO) Units CPB Y Jun-26

4.1.A Water Conservation CPB N Dec-31

4.1.B Energy Conservation and Green Building CPB N Dec-31

5.1.A Fair Housing Services CPB Y Dec-31

5.1.B Housing Choice Voucher Program CPB N Dec-31

5.1.C Shared Housing Information CPB Y Dec-31

5.1.D Farmworker Housing CPB Y Dec-31

5.2.A Support Community Organizations CPB Y Dec-31
P-6.3 Carmel Forest Management Plan
Program # Program Name
G-6.3.1 IN PROCESS PW Y TBD
P-6.4 Community Wildfire Prevention Program (CWPP)
Program # Program Name
G-1.1 Conduct biannual educational seminars to educate residents on wildfire preparedness and mitigation PW/CPB Y TBD G-1.2 Create educational materials depicting proper defensible space guidelines PW/CPB Y TBD S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 6 of 10 ATTACHMENT 3

City Council Strategic Priorities - SAMPLE Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
G-1.3 Maintain the project StoryMap as a hub for information sharing amongst community members and interested parties PW/CPB Y TBD G-1.4 Provide resources to for groups to pursue National Fire Protection Association Firewise USA Program PW/CPB Y TBD G-1.5 Conduct outreach specific to vulnerable communities PW/CPB Y TBD G-1.6 Collaborate with Monterey County Fire Safe Council to disseminate educational information PW/CPB N TBD G-1.7 Leverage local groups, such as Carmel CERT, to disseminate information on wildfire risk PW/CPB N TBD G-1.8 Host practice evacuation events throughout the Plan Area on an annual basis PW/CPB Y TBD G-1.9 Conduct public outreach/education where vegetation management projects are proposed prior to work PW/CPB Y TBD G-2.1 Support collaborative vegetation management projects across ownership boundaries PW/CPB Y TBD G-2.2 Collaborate with Pebble Beach Community Services District and CAL FIRE on wildfire mitigation strategies PW/CPB N TBD G-2.3 Consult with local tribes during wildfire mitigation planning PW/CPB N TBD G-2.4 Collaborate with the Monterey County Fire Safe Council to prioritize community wildfire mitigation projects PW/CPB N TBD G-2.5 Work with rec. facilities, campgrounds, and other guest-oriented businesses to develop evacuation preplans PW/CPB Y TBD G-2.6 Coordinate with interested parties (U.S. Forest Service, CAL FIRE, etc.) on information and resource sharing PW/CPB N TBD G-2.7 Update the General Plan Safety Element to address wildfire risk PW/CPB Y TBD G-2.8 Partner with universities and research institutions to support or conduct wildfire-related projects or research PW/CPB N TBD G-2.9 Develop an evacuation plan with the Community Hospital of the Monterey Peninsula PW/CPB N TBD G-3.1 Identify critical infrastructure and facilities in need of structural hardening PW/CPB Y TBD G-3.2 Conduct roadside fuels reduction along major roadways and roads identified as evacuation routes PW/CPB Y TBD G-3.3 Identify and remove hazardous trees along major evacuation corridors PW/CPB Y TBD G-3.4 Revaluate City Tree Ordinances to expedite maintenance or the removal of trees that pose wildfire hazards PW/CPB Y TBD G-3.5 Develop a coordinated evacuation plan for the Plan Area PW/CPB Y TBD G-3.6 Evaluate opportunities for engaging residents and landowners in structural retrofit programs PW/CPB Y TBD G-3.7 Encourage structural retrofits through assessments, community education, and grant funding opportunities PW/CPB Y TBD G-3.8 Install evacuation signage/lighting along designated evacuation routes PW/CPB Y TBD G-3.9 Facilitate emergency vehicle access and evaluate need for road maintenance on private and public roads PW/CPB Y TBD G-3.10 Coordinate with jurisdictions controlling outside roads (CalTrans, etc.) on maintenance agreements PW/CPB N TBD G-3.11 Establish staging areas and shelter-in-place sites PW/CPB Y TBD G-4.1 Implement vegetation treatment activities identified in Appendix C PW/CPB Y TBD G-4.2 Ensure appropriate environmental review is conducted prior to implementing fuels reduction projects PW/CPB Y TBD G-4.3 Consult with a qualified biologist and/or Professional Forester when designing fuels treatment prescriptions PW/CPB Y TBD G-4.4 Promote Monterey pine regeneration through fuels reduction projects PW/CPB Y TBD G-4.5 Develop a French broom removal program and reduce hazardous ladder fuels PW/CPB Y TBD G-4.6 Remove dead and down woody debris annually following winter storms and prior to June 1 of each year PW/CPB Y TBD S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 7 of 10 ATTACHMENT 3

City Council Strategic Priorities - SAMPLE Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
G-4.7 Conduct annual monitoring of vegetation management project areas and maintain as needed PW/CPB Y TBD G-4.8 Consider the use of cultural burning PW/CPB Y TBD G-4.9 Develop post-fire rehabilitation guidelines in cooperation with appropriate federal, state, and local agencies PW/CPB Y TBD G-5.1 Hold annual meetings with mutual aid partners to discuss emergency response goals and review targets PW/CPB N TBD G-5.2 Prepare annual reports of incidents and responding mutual aid partners PW/CPB Y TBD G-5.3 Identify additional resources needed to adequately respond to wildfires and achieve response target goals PW/CPB Y TBD G-6.1 Evaluate staffing capacity annually and identify needs to ensure capacity for wildfire projects PW/CPB Y TBD G-6.2 Identify and pursue grant funding opportunities for wildfire projects PW/CPB Y TBD G-6.3 Pursue efforts to get on California’s Fire Risk Reduction Communities List to be prioritized for Grant Funding PW/CPB Y TBD G-6.4 Pursue the development of a Home Hardening Grant Program PW/CPB Y TBD G-6.5 Collaborate with the Monterey County Fire Safe Council to obtain grants for wildfire mitigation projects PW/CPB N TBD G-6.6 Increase the number of properties inspected in the Plan Area annually PW/CPB Y TBD G-6.7 Empower community groups, etc. to pursue grant funding for community-scale retrofits PW/CPB Y TBD G-6.8 Evaluate subsidies or incentives for property owners to complete and maintain vegetation management PW/CPB Y TBD P-6.5 IT Strategic Plan
Program # Program Name
G-x.x.x IN PROCESS Admin/IT N TBD
P-6.6 Library Master Plan
Program # Program Name
G-1.1.1 Establish regular weekly hours for tech help Admin/Library Y TBD G-1.1.2 Collaborate with Carmel, Carmel Valley, Big Sur and Pebble Beach schools on programs on a regular basis Admin/Library N TBD G-1.1.3 Continue to learn from and build on established programs and explore new program ideas as they arise Admin/Library Y TBD G-1.2.1 Conduct Community Conversations and produce an updated Public Knowledge Report Admin/Library Y TBD G-1.2.2 Provide a variety of ways for community members to provide feedback Admin/Library Y TBD G-1.3.1 Better serve patrons with dementia and Alzheimer's and their caregivers Admin/Library Y TBD G-1.3.2 Start a conversation with the community workforce to understand their needs and wants Admin/Library Y TBD G-1.3.3 Explore option for books delivery to homebound patrons, including a partnership with Carmel Foundation Admin/Library Y TBD G-1.3.4 Develop an accommodation policy Admin/Library Y TBD G-1.4.1 Re-brand the library so that it is clear who we are, where we are, and what we do Admin/Library Y TBD G-1.4.2 Develop a plan and strategy for marketing and communication of library services Admin/Library Y TBD G-1.4.3 Conduct outreach to community leaders to ensure understanding of the value of the Library Admin/Library Y TBD S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 8 of 10 ATTACHMENT 3

City Council Strategic Priorities - SAMPLE Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
G-1.4.4 Work with local realtors to distribute a welcome packet for new community members Admin/Library Y TBD G-1.4.5 Encourage community advocacy for the library Admin/Library N TBD G-2.1.1 Look for opportunities to renovate both library buildings Admin/Library Y TBD G-2.1.2 Ensure continuity of operations during any renovation projects Admin/Library Y TBD G-2.2.1 Introduce patrons and visitors to the library in the Harrison Library garden with improved signage Admin/Library Y TBD G-2.2.2 Conduct nature-centric programs utilizing the HML garden and other greenspaces in the City Admin/Library Y TBD G-2.3.1 Restore Saturday hours Admin/Library Y TBD
G-2.4.1 Continue to invest in Wonderbook, large print, audio collections, and explore a braille collection Admin/Library Y TBD G-3.1.1 Review, reaffirm, and amend library policies and procedures to ensure transparency and efficiency Admin/Library Y TBD G-3.1.2 Work with Pacific Grove and Monterey libraries to implement book/DVD sharing Admin/Library N TBD G-3.1.3 Work with community organizations to identify projects that could provide opportunities for special funding Admin/Library N TBD G-3.1.4 Better promote purchase suggestions to further engage the community in collection development Admin/Library Y TBD G-3.2.1 Develop staff training plan (1 all-staff training per month) including emergency preparedness Admin/Library Y TBD G-3.2.2 Map the library’s volunteer needs and map the needs of volunteers Admin/Library Y TBD G-4.1.1 Investigate ways to reduce waste in library operations (paper, single-use plastics, etc.) Admin/Library Y TBD G-4.1.2 Look for opportunities to switch to local/sustainable/Certified/etc. companies and vendors when possible Admin/Library Y TBD G-4.1.3 Work with Public Works to identify opportunities to reduce energy consumption in library buildings Admin/Library Y TBD G-4.2.1 Develop Continuity of Operations Plan for the Library Admin/Library Y TBD G-4.2.2 Create a special collections evacuation plan in case of an emergency Admin/Library Y TBD G-4.2.3 Prioritize staff training on disaster recovery topics, such as salvaging water-damaged materials Admin/Library Y TBD G-4.3.1 Regularly host sustainability and resilience related programs that are relevant to Carmel Admin/Library Y TBD G-4.3.2 Provide opportunities for organizations such as CERT, CalFire, Carmel Prepares to share info Admin/Library Y TBD G-4.4.1 Continue to act as a charging/warming center during storms and power outages Admin/Library Y TBD G-x.x.x Explore additional ways we can support our community during emergencies and extreme weather events Admin/Library Y TBD P-6.7 Mission Trails Nature Preserve Master Plan
Program # Program Name
G-x.x.x IN PROCESS PW N TBD
Future Projects - These are projects that are important, but are not actively being worked on by City Staff until directed by Council.

F-1 Explore Opportunities for Flanders Mansion Admin Y TBD F-2 Undergrounding Power Lines separate from Rule 20A PW Y TBD F-3 Build city-owned conduit system for data (currently Comcast owned) Admin/IT Y TBD S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 9 of 10 ATTACHMENT 3

City Council Strategic Priorities - SAMPLE Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
F-4 Implement a parking and traffic management program Admin/CPB Y TBD G-1.2.1 Receive Council approval on revised investment portfolio approach Admin/Finance Y TBD G-1.2.2 Complete internal review (checklist) of City readiness to take on bonds or other financing Admin/Finance Y TBD G-1.1.1 Increase usability and clarity of financial reports given to Council Admin/Finance Y July 2026 G-3.1.3 Complete the City's Rule 20-A project at Del Mar Parking Lot PW N TBD G-3.5.2 Complete modeling work of street condition to optimize use of CIP funds for maintenance and replacement PW Y April 2026 G-4.1.3 Reinstate the Design Review Board (DRB) CPB Y TBD G-5.2.1 Scan and digitize all physical city records to make available online (resolutions, ordinances, etc.) Admin/IT Y Ongoing S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 10 of 10 ATTACHMENT 3