Monterey Regional Airport
THE EASY AND CONVENIENT WAY TO TRAVEL
MONTEREY PENINSULA AIRPORT DISTRICT
• Public Agency formed in 1941 by the California Legislature as an Independent Special District to own and operate the Monterey Regional Airport
• Not affiliated with any other governing body and has all authority of a city or municipality
• Fully self-sufficient enterprise fund operation
• Generate all revenues through fees and charges for on-Airport activities • Responsible for public safety on Airport property, including infrastructure, maintenance, property management, and police
and fire protection
2 AIRPORT VALUE AND OVERSIGHT
• MRY provides access to the movement of goods and services, and transports residents and visitors during diverse situations
• Medical emergency services
• Serve as a lifeline during emergencies
• Evacuation
• Fire fighting
• Urgent relief with supply delivery
• Community structural fire support (on-Airport ARFF facility) • Economic Development: The local economy thrives on the presence of consistent air service, Businesses large and small depend on reliable flights
• Regulatory Oversight by Federal Government Code of Federal Regulations, Department of Transportation, Federal Aviation Administration, Transportation Security Administration, Caltrans Division of Aeronautics
3 About MRY Air Service
MONTEREY REGIONAL AIRPORT
4 NONSTOP
DESTINATIONS
• 30 total combined arrivals
and departures daily
• 9 nonstop destinations • With one stop connections
across the world
• 4 commercial airlines • Alaska Airlines • Allegiant Air • American Airlines • United Airlines 5 SEASONAL SUMMER
HOP-ON JET SERVICE
• Operated by JSX
• Flights depart out of and arrive at
Monterey Jet Center
• 200 Sky Park Drive, Monterey
• Seasonal service
• June through September
• Two destinations
• Operates four days per week
6 BURBANK
ORANGE COUNTY
PASSENGER LEAKAGE
7 MRY
31%
SJC
39%
SFO
30%
AIRPORT OF ORIGIN
CY 2019
MRY
37%
SJC
35%
SFO
28%
AIRPORT OF ORIGIN
CY 2025
8 COMMUNITY MARKETING SUPPORT
About the Airport Master Plan
SAFETY IS ALWAYS OUR FIRST PRIORITY
9 10
$200M
TOTAL SEP
COST ESTIMATE
ENSURE
COMPLIANCE
WITH FEDERAL
SAFETY
STANDARDS
FUNDED
THROUGH
FEDERAL
GRANTS AND
AIRPORT
REVENUES
COMPRE-
HENSIVE
SUSTAINABILITY
INITIATIVES
TO-DATE
RECEIVED
$130M
FEDERAL
FUNDING
Plus/$20M
local match
ULTIMATE PROJECT GOAL • Phase 4
Shift Taxiway
1,850’ “A” – 52.5’
south to
increase
runway-taxiway
centerline to
centerline
11 12
PHASE 2 COMMERCIAL
RAMP CONSTRUCTION
Enhancements Include:
• Construct relocated airline parking
(ramp) completed September 2025
• Demolish southside Aircraft Rescue
and Firefighting Facility (ARFF)
• Demolish southside General Aviation
(GA) hangars including maintenance
hangars
• Construct temporary relocation of
passenger long term parking
(opened June 14, 2024)
13 GATE LOUNGE TERMINAL AND CIRCULATION
INTEGRATED SYSTEMS
14 1. Mass Timber Structure
2. Acoustic Panels
3. Direct / Indirect Light Fixtures
4. HVAC Air Supply
5. Clerestory with Automated
Shades
6. HVAC Ceiling Fan Coil Unit
7. Passive Exterior Shading
8. High Performance Glazing
5 2
1 3
4 6
7 8
15 GATE LOUNGE
16 PROJECT CONSTRUCTION RECAP
Project Description
• 62,725 sq ft passenger terminal
• 1 security checkpoint, and space for
concessions
• 5 gates with passenger boarding bridges
• Net-zero energy ready
Project Status and Timeline
• Design: Completed in 2024
• Construction: October 2025 – Summer 2027
• Terminal - Construction Manager-asConstructor (CMaC): Helsel Phelps • Road and Parking -Construction Manager-atRisk (CMaR): Otto Construction Highway 68
PREMIUM LOT
LONG TERM LOT
Future Frontage Rd
Fred Kane Dr
READY/RETURN
TERMINAL FACILITY
AIRFIELD
CIRCULATION AND PARKING IMPROVEMENTS
Thank you!
FLY LOCAL. FLY MRY.
526
269
418
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459
530
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553
Map data © OpenStreetMap contributors, Microsoft, Facebook, Google, Esri Community Maps contributors, Map layer by Esri
J. Valdez/MFD
WGS 1984 Web Mercator
April 16, 2026
Carmel-by-the-Sea
Fire Defense Plan
APPENDIX H
Pescadero Canyon
Proposed Project
0 0.05 0.1
Miles
Legend
CBTS Annual Defensible
Space Inspections
FR
Pebble Beach CSD
Cypress FPD
Carmel-by-the-Sea
Fuels Reduction Zone
Dspace Inspections
Fire Road
Roadside Clearance
Pebble Beach CSD
Cypress FPD
DMFC
008-383-004-000
CAL AM
008-161-003-000
CBTS Parcels
CBTS
Parcel
FR
Fiscal Year 2026-2027
Budget Adoption
Resolution 2026-035
CITY OF CARMEL-BY-THE-SEA
June 2, 2026
Meeting Objective
• Review and approve the amended budget
• Provide policy direction regarding split between
Operating Expenses and Capital outlay. Should policy
formally remain 90/ 10 or be changed to 85/ 15 or
some other measure?
2 Updates and Timeline
May 12, 2026 Budget workshop
• Discretionary Grants increased to $25k
• Removed Visit Carmel $90k
• Added Beach Emergency Vehicle and Storage $60k
• Added back Operating Cost Cuts
J une 2, 2026 Council Approval of Fiscal Year 2026 – 2027 Budget • If approved, additional Budget Adjustments can be approved at the J uly Regular Meeting • If not approved, City Council will hold a special meeting on J une 23 to continue work 3 Budget Changes to Date
4 Department Description
Original Budget
Ask
Pre-Workshop
Cuts
Draft Budget Post-Workshop
Changes
Final Budget
Forestry Contract Services- tree maintenance $ 600,000 $ (300,000) $ 300,000 $ 300,000 $ 600,000 Forestry Contract Services- fuel mitigation 300,000 (150,000) 150,000 150,000 300,000 Forestry Contract Services-landscaping maint 250,000 (50,000) 200,000 50,000 250,000 Plan/Build Digitization, consultants 85,000 (45,000) 55,000 45,000 100,000 Comm Activities Holiday decorations 12,900 (5,400) 7,500 5,400 12,900 Human Res. Records digitization 10,000 (5,000) 5,000 5,000 10,000 Human Res. Employee appreciation expenditures 18,500 (3,500) 15,000 3,500 18,500 Administration Conferences and trainings 7,700 (3,900) 3,800 3,900 7,700 Human Res. Employee trainings & education 1,000 (500) 500 500 1,000 Information Tech Conferences and trainings 10,000 (2,500) 7,500 2,500 10,000 Public Works Conferences and trainings 13,500 (3,000) 10,500 3,000 13,500 Human Res. Human Resources trainings 1,800 (1,800) - 1,800 1,800 Information Tech IT conferences and trainings 5,500 (1,500) 4,000 1,500 5,500 Council Conferences and trainings 5,200 (5,200) - 5,200 5,200 Vehicle&Equip. Beach rescue vehicle - - - 30,000 30,000 CIP Storage area for beach rescue vehicle - - - 30,000 30,000 Council Community Promotions 128,500 (16,000) 112,500 5,000 117,500 Council Meetings 31,550 (18,600) 12,950 8,000 20,950
Vehicle&Equip. Animal control vehicle 75,000 - 75,000 (75,000) - Econ Dev Visit Carmel 120,000 (30,000) 90,000 (90,000) - FY 26-27 Budget at-a-Glance
5 FY26-27 Adopted Revenues $39,087,497
General Fund Expenditures 29,782,406
Debt Service Expenditures 518,900
Pension Unfunded Liability Mitigation Expenditures 2,972,561 Capital Outlay Expenditures 8,488,680
FY26-27 Adopted Expenditures $41,762,547
Use of Fund Balance for Capital Projects $2,675,050
Funded Full Time Equivalent (FTE) positions 92.0
Revenues at-a-Glance
79%
Source Budget % of Budget
Sales Tax $4,166,843 11%
Measure C 7,023,597 18%
Property Taxes 9,680,988 25%
Transient Occupancy Tax 9,764,905 25%
Other 4,874,727 13%
Charges for Services 3,576,436 8%
Building 976,652 27%
Ambula nce 1,477,494 41%
Pla nning 477,600 13%
Other Depa r tmenta l Cha r ges 644,690 18%
Total $ 39,087,497 100%
6 Expenditures at-a-Glance
7 Type of Expenditure
FY26-27
Adopted
Budget
% of
Budget
Salaries & Benefits $14,814,197 35%
Outside Services 11,989,462 29%
Other Expenditures 2,978,747 8%
Pension 2,972,561 7%
Capital Outlay 8,488,680 20%
Debt Service 518,900 1%
Total $41,762,547 100%
Expenditures by Function
8 Total Expenditures Budget %
Public Works $6,190,509 15%
Police 5,401,414 13%
Citywide 5,316,701 13%
Fire 3,797,984 9%
Administration 3,671,312 9%
Planning & Building 2,474,695 6%
Ambulance 2,329,489 6%
Library 1,428,253 3%
Economic Development 1,102,947 3%
Debt 518,900 1%
Legal 495,000 1%
Community Activities 292,047 1%
Council 254,618 1%
Operating Budget $33,273,867 80%
Capital 8,488,680 20%
Total $41,762,547 100%
Staffing at-a-Glance
9 FY 25/ 26 FY 26/ 27
Department and Title Adopted Budget Change
Administration
Administrative Technician 0.00 1.00 1.00
Administrative Coordinator 1.00 0.00 (1.00)
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
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)
Library
Executive Assistant 0.50 0.00 (0.50)
Administration Technician 0.00 1.00 1.00
Hourly Librarian 1.00 0.50 (0.50)
Public Works
Streets Maintenance Worker III 2.00 1.00 (1.00)
Streets Maintenance Worker I/ II 5.00 6.00 1.00
Capital Program Manager 0.00 1.00 1.00
Police
Police Services Officer 6.00 5.50 (0.50)
Community Services
Officer/ Animal Control 2.00 2.50 0.50
Total Change in FTE 1.50
Capital Projects at-a-Glance
Category
Streets & Sidewalks $1,475,000 17%
Drainage 475,000 6%
Facilities 4,175,000 49%
Forest, Parks & Beach 555,000 7%
Project Management 673,680 8%
Contingency 600,000 7%
Vehicle & Equipment 535,000 6%
Total $8,488,680 100%
10 Budgetary Guideline – Operating Expenses
Policy states that:
Total Expenditures, excluding CIP, shall not exceed 90% of Budgeted Revenue and CIP shall be a minimum of 10% of Budgeted Revenue.
11 Policy states that:
A balanced budget is a budget in which total funding sources meet or exceed uses. ✓
✕
Budgeted Revenue $39,087,497
Budgeted Expenditures, excluding CIP 33,273,867
Budgeted CIP Expenditures 8,488,680
Total Budgeted Expenditures 41,762,547
Use of Fund Balance for Capital Projects 2,675,050
Budget Policy Policy Amount % Budgeted Amount %
Operational Expenditures to be a m axim um of 90% 35,178,748 90% 33,363,867 85% Capital Outlay Expenditures to be a m inim um of 10% 3,908,750 10% 8,488,680 22% Projected Fund Balances – June 30, 2027
12 Projected Fund Balance Summary
13 Estimated
Fund Type Fund Balance
June 2027
Unspendible Prepaid Items $14,936
Restricted funds 7,835,415
Assigned funds 23,881,933
Unassigned funds 7,427,750
$39,160,035
The Budget Puzzle
Operating
Expenses
Capital
Expenses
Revenue
Budget
Budget Results
•Policy goals exceeded
•Capital Expenditures addressing $100MM deferred
maintenance
•Operating expenditures transparently analyzed
•Revenues assumptions increased, sustainability to
be considered
•Momentum into future
Adopt Resolution 2026-035
Approving the FY 2026-27
Annual Operating
and Capital Budget
Recommendation
16 Additional Objective
17 Provide direction whether to
amend the budget policy.
The policy currently requires
Operating Expenditures to a
maximum of 90% of revenues
and Capital Outlays to be a
minimum of 10% of revenues.
Questions?
18 Capital Projects
19 Vehicle & Equipment
20 Years 2 -5 CIP
21 Year 2 Year 3 Year 4 Year 5
FY 2027/ 2028 FY 2028/ 2029 FY 2029/ 2030 FY 2030/ 2031 Drainage 3,000,000 715,000 2,750,000 865,000
Streets 2,626,000 3,523,600 2,480,960 2,399,056
Facilities 940,000 720,000 420,000 320,000
Forest/ Park/ Beach 2,125,000 2,800,000 3,200,000 6,650,000 Planning
Project Management 1,290,522 1,307,785 1,325,480 1,343,617 Fleet 245,000 365,000 200,000 200,000
Total 10,226,522 9,431,385 10,376,440 11,777,673
Category
Five-Year Forecast
22 Five Year Financial Forecast FY 24-25 Actual
FY 25-26
Estimated
Actual
FY 26-27
Adopted Budget
FY 27-28
Projection
FY 28-29
Projection
FY 29-30
Projection
FY 30-31
Projection
Property 9,147,434 9,445,000 9,680,988 9,923,013 10,171,088 10,425,366 10,686,000 Sales tax - Bradley Burns 3,956,282 4,092,183 4,166,843 4,279,348 4,394,890 4,513,552 4,635,418 Sales tax - Local Meas. C 6,913,837 6,900,734 7,023,597 7,220,258 7,422,425 7,630,253 7,843,900 Transient Occupancy Tax (TOT ) 9,559,155 9,526,737 9,764,905 9,891,849 10,020,443 10,150,709 10,282,668 Charges for Services 2,903,856 2,725,019 3,584,379 3,684,742 3,787,915 3,893,976 4,003,007 Other Revenues ** 5,302,347 4,600,827 4,866,785 5,003,055 5,143,140 5,287,148 5,435,188 Revenue Total 37,782,913 37,290,499 39,087,497 40,002,264 40,939,901 41,901,004 42,886,181 Salaries/ Benefits/ WC 13,749,575 15,598,822 14,952,897 15,456,883 15,977,856 16,516,388 17,073,071 CalPERS Unfunded Liability Payment 2,298,486 2,708,158 2,972,561 3,001,737 3,176,353 3,124,497 3,064,255 Services/ Supplies 11,722,679 14,226,458 14,919,509 15,337,255 15,766,698 16,208,166 16,661,994 Debt Service Total 510,631 509,100 518,900 517,960 517,960 517,960 517,960 Oper ating Expense Total 28,281,371 33,042,538 33,363,867 34,313,835 35,438,867 36,367,010 37,317,280 Revenue Net of Oper ating Costs 9,501,542 4,247,961 5,723,631 5,688,429 5,501,034 5,533,993 5,568,901 Capital Expenditures 3,862,210 6,319,916 8,488,680 8,701,522 9,361,385 10,376,440 11,777,673 Expenses Total 32,143,581 39,362,454 41,852,547 43,015,357 44,800,252 46,743,450 49,094,953 Sur plus/ (Deficit) * 5,639,332 (2,071,955) (2,765,050) (3,013,093) (3,860,351) (4,842,446) (6,208,771) Pension Mitigation 1,000,000 1,000,000
Housing Trust 1,000,000
Ava ila b le Re s o u r ce s - Un a s s ign e d
and CIP Fund Balances 21,758,242 18,686,287 14,921,237 11,908,144 8,047,793 3,205,347 (3,003,424) Revenues
Expenditur es
Capital Improvement Projects
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.
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.
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.
23 Departments at-a-Glance – Forest, Parks & Beach
24 $900,000
Departments at-a-Glance – Economic Development
Economic Development
City contributions:
• Support business
development
25 Economic Development
Account Number Details
FY24-25
Actual
FY25-26
Estimated
Actual
FY26-27
Adopted
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 0
101-122-00-42008 Carmel Chamber of Commerce 60,000 60,000 60,000 Total $1,156,297 $1,156,297 $1,102,947
City Council Meeting
June 2, 2026
CITY OF CARMEL-BY-THE-SEA
Resolution 2026-036
Appropriations (GANN) Limit
Adopting Fiscal Year 2026-2027
• State Constitution to place limit (ceiling) on spending by state, school districts and local governments
• State prescribed formula for calculating spending limit • Applies only to revenues defined as proceeds of taxes • Adjusted annually by change in cost-of-living and population (both factors provided by State Department of Finance)
• Council to select adjustment factors
• Change in local assessment roll or per capita personal income (historic choice and current year choice)
• Change in City (historic choice) or County population (current year choice)
Purpose and Background
Prior FY 25-26 Appropriations Limit of $45,081,157
X
Change factor of 1.0477 (A multiplied by B)
A-Based on State per capita income (1.0495) and
B-Based on County population adjustment (.9983)
FY 26-27 Appropriations Limit of $47,231,529
Spending Limit Calculation
• Confirm selection of annual adjustment factors as provided by State Department of Finance
• Change in County population and State per capita personal income • Adopt FY 26-27 Appropriation Limit (Resolution 2026-036) • Appropriation Limit of $47,231,529 Recommendation
Resolution 2026-038 approving a 3.04% Rate Increase
for Solid Waste, Recycling and Organics Collection by
GreenWaste Recovery, and approving an Amendment to
the Memorandum of Understanding with ReGen
Monterey effective July 1, 2026
City Council Regular Meeting
June 2, 2026
CITY OF CARMEL-BY-THE-SEA
CITY OF CARMEL-BY-THE-SEA 1
CITY OF CARMEL-BY-THE-SEA 2
Background
• GreenWaste Recovery selected June 19, 2014 for a 15-year term (July 1, 2015 – June 30, 2030)
• Franchise Agreement allows for an annual rate adjustment • Index-based Rate Adjustment includes:
• Cost of disposal and processing (“tipping fee”) at the ReGen Monterey facility in Marina
• Inflationary adjustments to GWR labor and operating costs • The City’s Franchise Fee of 13% for FY 2025/2026 was estimated at $478,211, and for next FY 2026/2027, the franchise fee is estimated at $492,736
CITY OF CARMEL-BY-THE-SEA 3
2026 Rate Adjustment
• 3.04% Collection Rate Increase
• Due primarily to increases to labor and
material indices, and disposal costs
• GWR initially estimated the City’s rate
increase to be 2.89%
• Final rate increase after third party
review by HF&H is 3.04%
• Prior Year (June 3, 2025), Council
approved a 4.19% rate increase
(monthly)
Carmel Rate Adjustment
Current Rates
(FY 2025/26)
FY 2026/27
Adjustment 4.19% 3.04%
Residential 32-
gallon rate
$56.03 $57.73
CITY OF CARMEL-BY-THE-SEA 4
SB 1383 Implementation
2025
• 75% Reduction in Organics
Disposal by January 1, 2025
• 20% Increase in Edible Food
Recovery by 2025
CITY OF CARMEL-BY-THE-SEA 5
SB 1383 Implementation
• MOU update for 2026/27 regional implementation costs. Regional implementation cost for Carmel in FY 2026/27 is $15,935 (included in GWR rates). This amount is covered in Public Works budget.
• City staff is coordinating w/ GWR to support local implementation efforts, including outreach to non-compliant residential and commercial accounts and management of a waiver system.
• 7 waivers have been issued during FY 2025/26; no pending waivers. • Single-family diversion rate achieved 75%; commercial diversion reached 71%. • Organics participation increased while contamination decreased during audits.
CITY OF CARMEL-BY-THE-SEA 6
Recommendation
Adopt Resolution 2026-038 to approve:
• A 3.04% rate increase to charges by the City’s franchised hauler, GreenWaste Recovery, for the collection of solid waste, recycling and organics, effective July 1, 2026, and
• Amendment #5 to the Memorandum of Understanding between ReGen Monterey and Member Agencies for Fiscal Year 2026/27 regional cost allocation
Questions?
City of Carmel-By-The-Sea
Adoption of Resolution 2026-37
CITY COUNCIL MEETING
June 2, 2026
Implementing an Address Identification System
Street Address Program
October 7, 2025: The City Council adopted Resolution 2025-087 (Attachment 3) directing staff to begin developing a comprehensive Street Address Program and an Ordinance amending the Carmel-By-The-Sea Municipal Code Section 15.55.100
Prior to October 7, 2025: There were multiple meetings of the City Council which included discussion of the subject of address identification
December 2, 2025: There was an item on the City Council agenda for a first reading of Ordinance No. 2025-006 titled: An Ordinance Amending City of Carmel-by-the-Sea Municipal Code Section 15.55.100 for Street Identification Pursuant to the California Building Standards Code (“Ordinance”). The Staff Report for the December 2, 2025 City Council meeting
January 13, 2026: The City Council adopted the Ordinance.
Section 5 of the Ordinance provides as follows in regard to the effective date of the Ordinance:
“SECTION 5. Effective Date. This Ordinance shall take effect 30 days after its adoption by the City Council of the City of Carmel-by-the-Sea or upon the adoption of a Resolution by the City Council confirming that the City has implemented an address identification system which is consistent with the requirements of the California Building Standards Code whichever is later.” City of Carmel-By-The-Sea
The City has completed all actions necessary to develop a Street Address Program and implement an address identification system consistent with the requirements of the California Building Standards Code and California Fire Code The objective of the project was to create a consistent, logical, and safetyoriented house numbering system that:
Improves emergency response and public safety
Enhances navigation and wayfinding for residents, visitors, and service providers Integrates with the City’s Planning Department processes and GIS systems Provides a citywide address numbering framework based on clear principles Assigns consistent and logical property numbers along all named streets Street Address Program
Best Practices and Guidance from the American Planning Association (APA) Reviewed systems used in neighboring jurisdictions
Utilized the California Building Code and California Fire Code as guiding pillars for compliance
Staff worked with The Address Workgroup, to evaluate and refine the process for developing an address system that would be unique and effective The development process prioritized public safety
Research and Collaboration
Street Address Program Development
the City’s existing layout of streets
standard blocks
non-standard blocks
diagonal streets
irregular lots
The system was methodically developed with consideration of Carmel Police Department
Carmel Fire Department
USPS representatives
County of Monterey staff
The system was reviewed by
Tailoring the New Address System
for Carmel-By-The-Sea
1. Coordinated effort with multiple departments and agencies to ensure operational functionality and regulatory compliance
Police Department
Fire Department
Key Phases of Address System Development
Planning & Building
Public Works
County of Monterey
USPS Address Management Systems
CA District Manager
Neighboring jurisdictions
Major utility service providers
Carmel-By-The-Sea Staff
Outside Agencies
2. Created an address inventory and GIS map
identifying the Assessor’s Parcel Number
(APN) and newly assigned address number
for every parcel in the City
3. Conducted field surveys to document
multi-unit buildings and create the
City’s first database identifying multiunit buildings and occupied spaces Key Phases of Address System Development
Key Phases of Address System Development
4. Developed a process for reviewing, correcting,
and modifying assigned address numbers
5. Conducted field visits in response to requests submitted by property owners seeking review of preliminary address assignments City staff has completed all actions necessary to
develop and implement the Street Address Program
Elements of Street Address
Program Completed
The completed address system will become active once the County of Monterey and USPS complete the integration process.
City staff submitted final addressing data to the County of Monterey’s Assessor’s Office, GIS/IT Department, and Department of Emergency Communications on May 8, 2026 Timing Expectations
Newly assigned addresses will not be considered “live” or usable until after all addressing data is fully integrated into the County and the USPS Address Management System Timing:
The County of Monterey estimated a timeline of 2 weeks - 2 months USPS estimates 1 week after the County’s notification of all address data approval
Major utility providers and GPS systems will integrate data after County and USPS integration
Proposed Resolution
Staff recommends that the City Council
take the final administrative step in
adopting Resolution 2026-037
Adopt Resolution 2026-039
Rejecting All Bids Received For Beach Access
12th And 10th Avenues Stairs Repair
(Carmel Beach Coastal Protection And
Access Improvement)
City Council Meeting
June 2, 2026
Shari Carlet
CITY OF CARMEL-BY-THE-SEA
Present to Council a Resolution rejecting all the bids received for Beach Access 12th And 10th Avenues Stairs repair (Carmel Beach Coastal Protection And Access Improvement)
Present the reason/s for the rejection of the bids considering all the received bids were deemed non-responsive
Receive Council direction to re-advertise the project to receive new bids
CITY OF CARMEL-BY-THE-SEA
Purpose
On April 17, 2026, the City issued a Notice Inviting Bids for this project.
By the bid deadline of May 15, 2026, we received 5 bids from the following bidders:
1. All Star Development Group Inc
2. Sharp Engineering and Construction Inc.
3. Silcon Constructor
4. Tombleson Incorporated
5. Wave Construction Inc.
CITY OF CARMEL-BY-THE-SEA
Background
Upon evaluation, all 5 bids contained arithmetic errors that materially affected the bid amounts and therefore must be rejected as non-responsive.
CITY OF CARMEL-BY-THE-SEA
Bid Summary and Evaluation
As a result of these arithmetic errors, none of the Bids are responsive and must be rejected because the errors impact the amount of the bids.
CITY OF CARMEL-BY-THE-SEA
Bid Evaluation
The project has an allocated budget of $300,000 for
FY 2025–2026, but the contract will be awarded based on the lowest bid received plus and
a recommended 20 percent contingency.
CITY OF CARMEL-BY-THE-SEA
Fiscal Impact
Adopt Resolution 2026-039
Authorizing the City Administrator to reject all the bids for the Beach Access 12th and 10th Avenues Stairs Repair Project (Bid25-26-006), and
Direct staff to re-advertise the project for new bids.
CITY OF CARMEL-BY-THE-SEA
Recommendation
Resolution 2026-040 - Calling for the Nov.
3rd General Municipal Election,
Consolidating with the County, Establish
Tie-Vote procedures, Resolution 2026-041
- Establishing Candidate Statement
Guidelines, and Approving the Monterey
County Elections service agreement
City Council Regular Meeting
June 2, 2026
CITY OF CARMEL-BY-THE-SEA
CITY OF CARMEL-BY-THE-SEA 1
• In November of every even-numbered year, the
City of Carmel-by-the-Sea holds a general
municipal election, consolidated with the
Statewide General Election. (CMC 2.73, CA Elections Code 12001)
• The Statewide General Election will be held on
Tuesday, November 3, 2026.
• Council must take certain actions at this time to
prepare for the November general municipal
election.
CITY OF CARMEL-BY-THE-SEA 2
Background
3 actions to prepare the City for the November 3rd
General Municipal Election
1. Adopt a Resolution (2026-040) to call the election of certain officers, request County consolidation, and
establish guidelines for a tie vote. (CA Elections Code 10002, 15651)
2. Adopt a Resolution (2026-041) to establish candidate statement regulations (CA Elections Code 13307)
3. Approve the Agreement with the Monterey County
Elections Department to provide election services.
CITY OF CARMEL-BY-THE-SEA 3
What Council is being asked to do
- Calls the November 3, 2026, election for the
office of Mayor (2-year term) and two
Councilmembers (4-year terms)
- Requests consolidation with Monterey County
- Authorizes the election services to be provided by
the County Elections Department
- Establishes tie-vote procedure by lot
- Directs the City Clerk to submit the Resolution to
the Monterey County Board of Supervisors and
County Elections Department
CITY OF CARMEL-BY-THE-SEA 4
Summary of Resolution 2026-040
- Candidate Statement Regulations must be
adopted by City Council no later than July 6, 2026
- The regulations pertain to materials prepared by any
candidate for municipal election, including costs of the candidate statement (printing, handling, translation,
and mailing)
- establishes a 200 word limit.
- A copy of the Resolution must be provided to all
candidates
Note: Candidate Statements are optional
CITY OF CARMEL-BY-THE-SEA 5
Summary of Resolution 2026-041
• The FY 2026-2027 recommended operating
budget includes sufficient funding for the
consolidated election.
• The County provides a generalized estimate of $7- 10 per registered voter (several factors impact the actual cost)
• The actual cost for a consolidated election in
2024 was less than $4 per voter (with no ballot
measures)
• The City has an estimated 2,562 registered voters
CITY OF CARMEL-BY-THE-SEA 6
Fiscal Impact
1. Adopt Resolution 2026-040, Calling for the election
of certain officers, consolidating with the County,
and establishing a procedure for a tie-vote
2. Adopt Resolution 2026-041, establishing Candidate
Statement Regulations
3. Approve the Monterey County Elections service
agreement.
Note: the Council may still adopt separate Resolutions
calling for ballot measure(s) to be combined with the
November 3rd election.
CITY OF CARMEL-BY-THE-SEA 7
Recommendation
Questions?
CITY OF CARMEL-BY-THE-SEA 8
End of Presentation
Consideration of Resolution 2026-042 relating
to a potential ballot measure establishing a
new 2% City’s Transient Occupancy Tax in
addition to the existing 10% and Direction
regarding the submission of such ballot
measure to the City’s voters at the November
3, 2026, general municipal election or, in the
alterative provide direction and Motion to
approve draft Primary Argument
City Council Regular Meeting
June 2, 2026
CITY OF CARMEL-BY-THE-SEA
CITY OF CARMEL-BY-THE-SEA 1
This Agenda item is based on the direction from the
City Council at its meeting on May 4, 2026 that
Council City Council at its meeting on June 2, 2026
discuss and consider adopting the Resolution 2026-
042 (Attachment 1) which would submit to the City’s
qualified voters a ballot measure that would adopt a
new 2% Transient Occupancy Tax (TOT) in addition
to the existing 10% TOT rate if approved by a
majority of the voters.
CITY OF CARMEL-BY-THE-SEA 2
Background
“Shall the measure providing additional funding for
City of Carmel-by-the-Sea general government
purposes by establishing a new transient occupancy
tax of 2%, paid by lodging guests to the operators of
hotels and hostelries, in addition to the existing 10%
transient occupancy tax, so the total tax rate is 12%,
with the new 2% tax providing approximately
$1,900,000 annually and the 12% providing
approximately $11,700,000 annually in total until
ended by voters, be adopted?”
CITY OF CARMEL-BY-THE-SEA 3
Ballot Question – Option 1
“To upgrade streets/ and sidewalks, address beach
erosion, enhance wildfire preparedness, maintain
City trees, and fund other general government
purposes in Carmel-by-the-Sea, shall the measure
establishing a new 2% transient occupancy tax, paid
by hotel/lodging guests, in addition to the existing
10% transient occupancy tax, increasing the total tax
rate to 12%, with the new 2% tax generating
approximately $1,900,000 annually, and the total
12% tax generating approximately $11,700,000
annually, until ended by voters, be adopted?”
CITY OF CARMEL-BY-THE-SEA 4
Ballot Question – Option 2
Under Proposition 218, the City may only increase a
general tax if:
(a)Two-thirds of the members of the City Council
(which would be four affirmative votes) approving
placing a tax measure on the ballot for voter
consideration, and
(b)The ballot measure is approved by a majority vote
of the electorate at a general municipal election
(for the election of members of Council). The
next general election is November 3, 2026
CITY OF CARMEL-BY-THE-SEA 5
Votes Required
In order to submit a TOT measure to the voters at the
November 3, 2026, general municipal election, the City
Council must adopt a resolution that:
1) submits the measure to the voters and include the
TOT ordinance establishing a new TOT of 2% in
addition the existing 10% TOT
2) requests the consolidation of such general municipal election with the Statewide General Election on
November 3, 2026; and
3) authorizes the drafting of primary arguments by all or some councilmembers, directs the City Attorney to
draft an impartial analysis of the measure, and
authorizes rebuttal arguments.
CITY OF CARMEL-BY-THE-SEA 6
Submitting Measure to Voters
Submission of Measure. Pursuant to the laws of the State of California, including, but not limited to, Elections Code Section 9222 and 10201, the City Council, pursuant to its right and authority, does hereby order the submission to the voters of the City at the General Municipal Election to be held on November 3, 2026, which was called pursuant to Resolution No2026-040, a ballot measure that, if approved, establishes a new 2% transient occupancy tax that is in addition to the existing 10% transient occupancy tax so the total tax rate is 12%, with the new 2% tax providing approximately $1,900,000 $1,952,981 annually and the 12% providing approximately $11,700,000 $11,717,886 annually in total and will be effective until ended by voters (“Measure”). As required by Elections Code Section 13247, the abbreviated form of the Measure to appear on the ballot is specified below in Section 3.
CITY OF CARMEL-BY-THE-SEA 7
Section 2 of Resolution
CITY OF CARMEL-BY-THE-SEA 8
Section 10 a. i of Resolution
Pursuant to Elections Code Section 9282, the City
Council authorizes the Mayor and City
Councilmembers to author and submit the primary
argument in favor of the Measure not exceeding 300
words, accompanied by the printed name(s) and
signature(s) of the author(s) submitting it, in
accordance with Article 4, Chapter 3, Division 9 of the Elections Code, and authorizes the Mayor and City
Councilmembers, to submit a rebuttal argument to the
argument against the Measure pursuant to Section
10(c) if time permits or, in the alternative, the rebuttal argument shall be submitted by the Mayor and Mayor
Pro Tem
• The deadline to submit the Primary Argument to the City Clerk is August 7, 2026, at 5:00 pm and the deadline to submit the Rebuttal Argument if an Opposition Primary
Argument has been submitted is August 17, 2026 at 5:00
pm
• Two choices in regard to Section 10 a i of Resolution:
(1) Revise to read: Mayor and City Councilmembers
shall submit a rebuttal argument. This would require
setting a special meeting of the City Council to approve the Rebuttal Argument, most likely August 12 to 14 or
(2) Revise to read: The persons authorized to submit the Rebuttal Argument are: insert two names.
CITY OF CARMEL-BY-THE-SEA 9
Deadline to Submit Arguments
Transient Occupancy Tax (TOT) is paid entirely by visitors staying in hotels and other overnight
accommodations. It is not paid by Carmel residents.
At 10%, Carmel’s TOT has not been raised in 30 years, and is now well below neighboring cities and
comparable destination communities, as shown below:
Half Moon Bay – 15%
Sausalito – 14%
Marina – 14%
Healdsburg – 14%
St Helena – 13%
Calistoga – 13%
Sonoma – 13%
Pacific Grove – 12%
Monterey – 12%
Sand City – 12%
Santa Barbara – 12%
Laguna Beach – 12%
Carmel-by-the-Sea – 10%
CITY OF CARMEL-BY-THE-SEA 10
Draft Primary Argument in Support of Ballot Measure
(Attachment 6)
Raising Carmel’s TOT by 2% to 12% will bring us more in line with comparable communities and generate
approximately $1.9 million in sorely needed revenue for the City, while adding just $5 to a $250 hotel room.
Our economy depends on tourism. Visitors support local
businesses, and related taxes help fund our city
government. Visitors are welcome here, but tourism also creates unwelcome impacts for our residents.
Congestion, pollution, noise and trash are daily realities.
The busiest days produce gridlock and heightened
tensions. Sometimes our private property is
disrespected.
CITY OF CARMEL-BY-THE-SEA 11
Draft Primary Argument in Support of Ballot Measure
(Attachment 6) - Continued
Our city’s infrastructure is heavily used. It is old and has been ignored. We have over $100 Million in deferred maintenance. For the current City Council, addressing this problem is important and urgent. We’ve already implemented a “Capital First” approach to annual budgeting where at least 15% of annual revenues must be devoted to rehabilitating aging infrastructure. We’ve seen results.
Street paving, sidewalk leveling, and wildfire management have been accelerated. New projects will address beach access and erosion, storm drainage and improving city buildings. The challenge is daunting, and to address it with all due urgency, we simply need more revenue. Raising this tax paid by non-residents will help.
Join us. Vote yes on measure X.
CITY OF CARMEL-BY-THE-SEA 12
Draft Primary Argument in Support of Ballot Measure
(Attachment 6) - Continued
A. For the privilege of occupancy in any hostelry,
each transient is subject to and shall pay a tax in the amount of 10 percent of the rent charged by the
operator, plus a new tax in the amount of 2 percent
of the rent charged by the operator, for a total tax in the amount of 12 percent of the rent charged by the
operator. The tax constitutes a debt owed by the
transient to the City which is extinguished only by
payment to the operator or to the City.
CITY OF CARMEL-BY-THE-SEA 13
3.32.020: Tax Imposed
C. The additional two percent added by
Ordinance No. 26-003 shall be added to the
General Fund for usual and current expenses.
CITY OF CARMEL-BY-THE-SEA 14
Section 3.32.130: Disposition of Proceeds
After a measure is “certified to appear” on a
particular election ballot, the City is prohibited from spending any City resources to support or oppose
the ballot measure.
The City is able to provide information to the public
in a neutral and unbiased manner and in a format
that is not argumentative. This involves utilization of the City’s standard methods of communication with
the public.
CITY OF CARMEL-BY-THE-SEA 15
Informational Activities
CITY OF CARMEL-BY-THE-SEA 16
Election Timeline
1. If the Council decides to submit the TOT ballot
measure to the voters, then Motion to adopt Resolution 2026-042 relating to a potential ballot measure to establish a new TOT of 2% in addition to the existing 10%
2. Motion to approve draft Primary Argument in
Support of TOT Ballot Measure
3. Motion to revise Section 10 a i of Resolution
2026-042 by one of the following: (1) Mayor and City Councilmembers are authorized to submit a rebuttal argument or (2) The persons authorized
to submit the Rebuttal Argument are: insert two
names.
CITY OF CARMEL-BY-THE-SEA 17
Recommendation
Questions?
CITY OF CARMEL-BY-THE-SEA 18
End of Presentation
Carmel’s low TOT rate is an outlier
Jurisdiction TOT Rate Business Improvement District Assessments Effective TOT Half Moon Bay 15% $1 per night for City; $1-2 per night for County 15+% South Lake Tahoe 14% +2% 16%
Sausalito 14% Not yet adopted 14%
Beverly Hills 14% None 14%
San Francisco 14% ~0.5%-1.5% (varies by district) 14.5-15.5% Marina 14% None 14%
St Helena 13% +2% 15%
Napa 13% +2% 15%
Sonoma 13% +2% 15%
Monterey 12.8-13.6%* None 12.8-13.6%
Laguna Beach 12% +2% 14%
Santa Barbara 12% +2% 14%
Solvang 12% +2% 14%
Yountville 12% +2% 14%
Pacific Grove 12% $1-2 per night ~12.5%**
Monterey County (unincorporated) 10.50% None 10.5%
City of Carmel-by-the-Sea 10% +2% 12%
**Assumes $1.50 per night on a $300 average daily rate
*12% TOT plus Conference Center Facilities District charge of 1.6% for full service hotels and 0.8% for limited service hotels Tax Initiative Feedback
Overall, residents were generally favorable (72%) to voting for both the TOT and sales tax increases. Higher negative sentiment was expressed for the sales tax. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Resident Perspective on Tax Initiatives
Definitely Would Vote For This Probably Would Vote For This Might or Might Not Vote For This Probably Would Not Vote For This Definitely Would Not Vote For This TOT
+2%
Sales Tax
+0.375%
“I’m not for tax increases”
“We have family in the
business”
“I’m not for tax increases”
“I can’t afford to go out today”
15 3 4 1 2
12 6 1 6
N=25
TOT
92%
(22/24)
Sales
Tax
8%
(2/24)
Tax Initiative Feedback
Residents are generally willing to have both tax measures on the ballot (67%), and if forced to pick one, would overwhelmingly choose the TOT (92%).
If only 1 tax measure was on the ballot,
which would you be most in favor of…
Would you be willing to support both
tax measures being on the ballot…
YES,
would support
2 tax measures
67%
(10/15)
NO,
would not
support 2 tax
measures
33%
(5/15)
Paid Parking Feedback
Paid parking sentiment was more mixed than the tax initiatives. This isn’t to say favorable sentiment could not be achieved. Rather, it seems residents would want to better understand the implementation before lending their support. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Sales Tax +0.375%
TOT +2%
Paid Parking
Resident Perspective on Tax Initiatives & Paid Parking
Definitely Would Vote For This Probably Would Vote For This Might or Might Not Vote For This Probably Would Not Vote For This Definitely Would Not Vote For This “Some ideas are good and some aren’t”
“This feels like taking away one more thing
that makes Carmel special”
15 3 4 1 2
12 6 1 6
5 7 8 2 3
N=25
City Council Regular Meeting
June 2, 2026
CITY OF CARMEL-BY-THE-SEA
CITY OF CARMEL-BY-THE-SEA 1
Of Carmel-By-The-Sea Ordering The Submission To The Qualified Electors Of The City Of Carmel-By-The-Sea At The November 3, 2026, General Municipal Election A Measure To Increase The Transactions And Use Tax Rate By 0.375% To Make The Total Tax Rate 1.875% and Extending the Duration of the Transactions and Use Tax so that it remains in effect until ended by Voters or, in the alternative, provide direction and Motion to approve draft Primary Argument in Support of Ballot Measure
This Agenda item is based on the direction from the City Council at its meeting on May 4, 2026 that Council City Council at its meeting on June 2, 2026 discuss and
consider adopting the Resolution 2026-043 (Attachment
1) which would submit to the City’s qualified voters a
ballot measure that to increase the Transactions And Use Tax Rate (also known as sales tax) by 0.375% to make the total tax rate 1.875% and extending the duration of the Transactions and Use Tax so that it remains in effect until ended by Voters if approved by a majority of the voters.
CITY OF CARMEL-BY-THE-SEA 2
Background
“Shall the measure providing additional funding for
City of Carmel-by-the-Sea general government
purposes by increasing the transaction and use tax
(also known as sales tax) rate by 0.375% so that the
total tax rate is 1.875%, and the 0.375% providing
approximately $1,800,000 annually and the 1.875%
providing approximately $9,400,000 annually in
total, and extending the duration of such total tax so
that it remains in effect until ended by voters, be
adopted?”
CITY OF CARMEL-BY-THE-SEA 3
Ballot Question – Option 1
“To upgrade streets/ and sidewalks, address beach
erosion, enhance wildfire preparedness, maintain City
trees, and fund other general government purposes in
Carmel-by-the-Sea, shall the measure increasing the
transaction and use tax (also known as sales tax) by
0.375%, from 1.50% to 1.875%, providing approximately
$1,800,000 annually in additional revenue and
approximately $9,400,000 annually in total revenue, and extending the total 1.875% tax until ended by voters,
with independent audits and all funds benefitting
Carmel-by-the-Sea, be adopted?”
CITY OF CARMEL-BY-THE-SEA 4
Ballot Question – Option 2
• If the Council selects Option 2, then the proposed Ordinance would need to include language that provides words to the effect that the revenue from the sales tax will be subject to an independent audit as part of the City’s annual independent financial audit. The proposed Ordinance (Attachment 3) has been revised to read as follows in regard to an independent financial audit with the underlined text added:
• SECTION 1. AMENDMENT TO SECTION 3.28.170: Section 3.28.170 (entitled “Imposition”) of Article IV of Chapter 3.28 of Title 3 of the Carmel-by-the-Sea Municipal Code is hereby amended in its entirety as follows:
• “A transactions and use tax is hereby imposed as a general tax on the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the City, and upon the sales price of tangible personal property stored, used or otherwise consumed in the City as further set forth below. The revenue from the Transaction and Use Tax shall be subject to the City's annual independent financial audit.” CITY OF CARMEL-BY-THE-SEA 5
Independent Audit
Under Proposition 218, the City may only increase a
general tax if:
(a)Two-thirds of the members of the City Council
(which would be four affirmative votes) approving
placing a tax measure on the ballot for voter
consideration, and
(b)The ballot measure is approved by a majority vote
of the electorate at a general municipal election
(for the election of members of Council). The
next general election is November 3, 2026
CITY OF CARMEL-BY-THE-SEA 6
Votes Required
In order to submit a transaction and use tax measure to the voters at the November 3, 2026, general municipal
election, the City Council must adopt a resolution that:
1) submits the measure to the voters and includes the
ordinance increasing the rate by .375%;
2) requests the consolidation of such general
municipal election with the Statewide General
Election on November 3, 2026; and
3) authorizes the drafting of primary arguments by all
or some councilmembers, directs the City Attorney
to draft an impartial analysis of the measure, and
authorizes rebuttal arguments.
CITY OF CARMEL-BY-THE-SEA 7
Submitting Measure to Voters
Submission of Measure. Pursuant to the laws of the State of California, including, but not limited to, Elections Code Sections 9222 and 10201, the City Council, pursuant to its right and authority, does hereby order the submission to the voters of the City at the General Municipal Election to be held on November 3, 2026, which was called pursuant to Resolution No.2026-040, a ballot measure that, if approved, increases the City’s current transactions and use tax rate from 1.5% to
1.875% and extends the duration of such transactions and use tax so that it remains in effect until ended by voters of the City of Carmel-by-the-Sea with the
0.375% providing approximately $1,800,000 $1,887,417 annually and the 1.875% providing approximately $9,400,000 $9,437,087 annually in total (“Measure”). As required by Elections Code Section 13247, the abbreviated form of the Measure to appear on the ballot is specified below in Section 3.
CITY OF CARMEL-BY-THE-SEA 8
Section 2 of Resolution
Pursuant to Elections Code Section 9282, the City
Council authorizes the Mayor and City Councilmembers
to author and submit the primary argument in favor of
the Measure not exceeding 300 words, accompanied by
the printed name(s) and signature(s) of the author(s)
submitting it, in accordance with Article 4, Chapter 3, Division 9 of the Elections Code, and authorizes the
Mayor and City Councilmembers, to submit a rebuttal
argument to the argument against the Measure
pursuant to Section 10(c) if time permits or, in the
alternative, the rebuttal argument shall be submitted by the Mayor and Mayor Pro Tem
CITY OF CARMEL-BY-THE-SEA 9
Section 10 a i of Resolution
• The deadline to submit the Primary Argument to the
City Clerk is August 7, 2026 at 5:00 pm and the
deadline to submit the Rebuttal Argument if an
Opposition Primary Argument has been submitted is
August 17 2026 at 5:00 pm
• Two choices in regard to Section 10 a i of Resolution:
(1) Revise to read: Mayor and City Councilmembers
shall submit a rebuttal argument. This would require
setting a special meeting of the City Council to approve the Rebuttal Argument, most likely August 12 to 14 or
(2) Revise to read: The persons authorized to submit the Rebuttal Argument are: insert two names.
CITY OF CARMEL-BY-THE-SEA 10
Deadline to Submit Arguments
A transaction and use tax is a sales tax applied to most purchases of goods, food, and beverages. In a tourist
destination like Carmel-by-the-Sea, a substantial portion of this tax is paid by visitors.
Sales taxes fund a variety of things, mostly at the State and County Level. California law limits the LOCAL sales tax rate in Carmel to 1.5%, which is available entirely for local uses. A recent change in State Law, however, allows cities like Carmel-by-the-Sea to increase our local share by 0.375% to a total of 1.875%. Doing so would add just 19 CENTS to a $50 lunch bill, while generating an additional $1.88 Million in sorely needed revenue for our local city government.
CITY OF CARMEL-BY-THE-SEA 11
Draft Primary Argument in Support of Ballot
Measure – Attachment 6
If, as voters, we do not approve this local tax increase, another adjacent jurisdiction, such as Monterey County, may seek to permanently claim this limited taxing authority. Approving this measure now, ensures that these locally generated funds remain under local control and are available to upgrade our infrastructure and enhance overall service levels.
Funds generated by this tax increase can be put to good use immediately.
Beyond the rising costs of almost everything, our City’s infrastructure is old, overused, and, unfortunately, has been allowed to deteriorate. The current City Council estimates the cost to correct this deferred maintenance at over $100 Million, and we believe the need to address it is urgent and important. We’ve already changed our Guiding Budget and Financial Policies to strictly limit operational spending, thereby increasing funds available for infrastructure rehabilitation. But that’s just a start. To make real and meaningful progress, we simply need more revenue. This SMALL tax increase will be a BIG help.
Join us. Vote yes on measure Z.
CITY OF CARMEL-BY-THE-SEA 12
Draft Primary Argument in Support of Ballot
Measure – Attachment 6 (continued)
After a measure is “certified to appear” on a particular election ballot, the City is prohibited from spending any City resources to support or oppose the ballot measure.
The City is able to provide information to the public in a neutral and unbiased manner and in a format that is not argumentative. This involves utilization of the City’s
standard methods of communication with the public.
CITY OF CARMEL-BY-THE-SEA 13
Informational Activities
“A transactions and use tax is hereby imposed as a
general tax on the gross receipts of any retailer from
the sale of all tangible personal property sold at
retail in the City for a period of 20 years, and upon
the sales price of tangible personal property stored,
used or otherwise consumed in the City as further
set forth below.”
CITY OF CARMEL-BY-THE-SEA 14
Amendment to Section 3.28.170
“For the privilege of selling tangible personal
property at retail, a tax is hereby imposed upon all
retailers in the incorporated area of the City at the
rate of one and one-half percent1.875% of the gross
receipts of any retailer from the sale of all tangible
personal property sold at retail in the City on and
after the operative date of the ordinance codified in
this article for a period of 20 years following the
effective date of the taxand remaining in effect until
repealed by the voters of the City of Carmel-by-theSeaand shall then be terminated.” CITY OF CARMEL-BY-THE-SEA 15
Amendment to Section 3.28.210
An excise tax is hereby imposed on the storage, use or
other consumption in the City of tangible personal
property purchased from any retailer on and after the
operative date of the ordinance codified in this article for storage, use or other consumption in the City at the rate of 1.875% one and one-half percent of the sales price of the property for a period of 20 years following the effective date of the tax, and remaining in effect until repealed by the voters of the City of Carmel-by-the-Sea and shall then be terminated. The sales price shall include delivery charges when such charges are subject to sales or use tax regardless of the place to which
delivery is made.”
CITY OF CARMEL-BY-THE-SEA 16
Amendment to Section 3.28.230
“The authority to levy the taxes imposed by this
article shall remain in effect until repealed by the
voters of the City of Carmel-by-the-Sea. expire 20
years from the operative date, unless extended by
the voters.”
CITY OF CARMEL-BY-THE-SEA 17
Amendment to Section 3.28.310
CITY OF CARMEL-BY-THE-SEA 18
Election Timeline
4 May
2026
Review Draft
Resolution and
Ordinance
2 June
2026
If directed by
Council, consider
adoption of
Resolution calling
for the general
municipal election
and requesting
consolidation.
7 July
2026
Practical deadline
to adopt
Resolution to add
a ballot measure
July–
Oct.
2026
Public
outreach/engage
ment
11–
16 Aug.
Filing period for
primary ballot
arguments.
16–
23 Aug.
City Attorney files
impartial analysis,
rebuttal
3 Nov.
2026
Election Day
1. If the Council decides to submit the Transaction and Use Tax (also known as sales tax) to the voters, then Motion to adopt Resolution 2026-043 relating to a potential ballot measure to increase the City’s Transaction and Use Tax by .375 % so the new total tax rate is 1.875% with revised Section 2 on dollar amounts.
2. Motion to approve draft Primary Argument in Support of Transaction and Use Tax Ballot Measure (Attachment 6)
3. Motion to revise Section 10 a i of Resolution 2026-042 by one of the following: (1) Mayor and City Councilmembers shall submit a rebuttal argument or (2) The persons
authorized to submit the Rebuttal Argument are: insert
two names
CITY OF CARMEL-BY-THE-SEA 19
Recommendation
4. If the Council selects Option 2 for the Ballot
Question, then Motion to add to Ordinance
attached to Resolution 2026-043 the following
language to the end of SECTION 1. AMENDMENT
TO SECTION 3.28.170:
. . . .
The revenue from the Transaction and Use Tax
shall be subject to the City's annual independent
financial audit.
CITY OF CARMEL-BY-THE-SEA 20
Recommendation - Continued
Questions?
CITY OF CARMEL-BY-THE-SEA 21
End of Presentation