Agenda packet — Monterey City Council, April 30, 2025

Council Chamber
580 Pacific St.

Monterey, California

CITY COUNCIL AGENDA
Council Special Meeting
Wednesday, April 30, 2025
4:00 PM – 5:30 PM
Mayor
Tyller Williamson
Councilmembers
Kim Barber, District 1
Ed Smith, District 2
Jean Rasch, District 3
Gino Garcia, District 4
City Manager
Hans Uslar
City Attorney
M. Christine Davi
HOW TO PARTICIPATE IN THIS MEETING:
 In-Person: At the meeting location listed above.
 Remotely via ZoomGov webinar:
o On a computer or smartphone: https://monterey-org.zoomgov.com/j/1616037682 Zoom software must be up-to-date. For help, please use our Zoom Meeting Instructions. o By telephone dial 833-568-8864 (Toll Free), 669-254-5252 (CA) or 646-828-7666 (NY). If one number doesn’t work, please try another. Enter Webinar ID: 161 603 7682 # If asked for participant ID, press #. To raise your hand: dial *9. Once called upon, dial *6 to unmute.  This meeting will also stream live for viewing only on youtube.com/cityofmonterey (~10 second delay) and on Comcast Channel 25 (up to 90 second delay).  Written comment: Emailed comments to [email protected] sent no later than ½ hour before the start of the meeting (sooner preferred) are not read aloud but are made available to the Council and public at monterey.gov/submitted-comments.

PUBLIC COMMENT PROCEDURES AND TIME LIMITS:

The total amount of time allocated for public comment on a particular issue and for each individual speaker is generally as follows:

1. Up to three minutes per speaker.

2. For regular City Council meetings, there are two 15-minute public comment periods, one in the afternoon and one in the evening. Speakers may only comment during one session.

3. The total time allocated for public comment:
a. 30 minutes per item – Public Appearance and Public Hearing items b. 15 minutes per item – All other items (including, but not limited to, Consent, Closed Session, Presentations, and Requests to Agendize)
At the time an item is considered, the Mayor will ask those attending the meeting in person to line up at the podium or raise their hands, and for remote participants to use *9 on the telephone or the “raise hand” function in Zoom, if they wish to address the City Council. The maximum amount of time for each person to speak and the total amount of time allotted for each item will be determined based on the number of people indicating an interest in speaking and the amount of business to be conducted on the agenda. In exceptional circumstances and when necessary to ensure a full opportunity for public input, the Mayor may, with the legislative body’s consent, adjust the amount of time allowed for public input and/or the time allotted for each speaker.

CAMPAIGN CONTRIBUTION DISCLOSURE: Pursuant to the Levine Act (Govt. Code §84308), any party to a permit, license, contract, or other entitlement before the Council is required to disclose on the record any contribution, including aggregated contributions, of more than $500 made by the party or the party's agents within the preceding 12 months to any City official. Participants and agents are requested to make this disclosure as well. The disclosure must include the name of the party, participant, or agent, and any other person making the contribution; the name of the recipient, the amount of the contribution, and the date the contribution was made. 4/30/2025 4:00:00 PM
2 AFTERNOON SESSION: 4:00 p.m. to 6:00 p.m.

Call to Order
Pledge of Allegiance
Afternoon Session Items
Presentations (Afternoon)
1 Receive Presentation from See Monterey: FY 2024-25 Mid-Year Performance & Group Sales Trends (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
Study Session
Study Session items are used to provide information to the City Council and answer their questions to clarify issues. Study Sessions provide a setting for informal discussions between staff, consultants, board, commission,committee members and the City Council regarding specific programs, projects or policies. The Council does not take formal action on the items. 2 Study Primer for FY 2025-26 Annual Budget (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Adjournment
Writings distributed for discussion or consideration on these matters within 72 hours prior to the meeting, pursuant to Government Code § 54957.5, are available at: monterey.gov/submitted-comments and in the City Manager’s Office at 580 Pacific St., Room 1, Monterey, CA 93940 during regular business hours. All comments and materials provided to the Council become part of the public record. Members of the public who comment in any fashion on an agenda item may be subject to the Levine Act which requires disclosure of campaign contributions of more than $500 to an officer of the City within the preceding 12 months.

INTERPRETATION: The Monterey City Council invites and encourages public participation at its meetings.

Requests for language interpretation may be made by contacting the City Clerk at [email protected] or 831-646-3935. The City Clerk will make every effort to accommodate requests for interpreter assistance.

Requests should be made as soon as possible in advance of any meeting of the City Council. The City is committed to addressing language interpretation requests swiftly in order to maximize public participation.

ACCESSIBILITY: The City of Monterey is committed to including disabled people in all of its services, programs and activities. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact [email protected] or (831) 646-3935.

Notification 30+ hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting [28 CFR 35.102-35.104 ADA Title II]. Later requests will be accommodated to the extent feasible. For communication-related assistance, dial 711 to use the California Relay Service (CRS) to speak to City offices. CRS offers free text-to-speech, speech-to-speech, and Spanish-language services 24 hours a day, 7 days a week. If you require a hearing amplification device to attend a meeting, dial 711 to use CRS to talk to the City Clerk's Office at (831) 646-3935 to coordinate use of a device.

CITY OF MONTEREY 24-HOUR SUGGESTION HOTLINES: (831) 646-3799 or [email protected] Upcoming city meetings are listed at monterey.gov/agendas For more information, call (831) 646-3935 Council
Agenda Report
№11/25
FROM: Nat Rojanasathira, Assistant City Manager
SUBJECT: Receive Presentation from See Monterey: FY 2024-25 Mid-Year Performance & Group Sales Trends (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
RECOMMENDATION:

That the City Council receive a presentation from See
Monterey on their Fiscal Year 2024-25 Mid-Year
Performance and Group Sales Trends.

VALUE DRIVERS:

Serve as stewards of the City’s financial resources
through sound economic vitality efforts, streamlining
operations, reasonable revenue enhancements,
visionary long-term planning, fiscal transparency, and
community partnerships.

POLICY IMPLICATIONS:

It is within the City Council’s purview to review progress on the performance of See Monterey, which serves as
the Destination Marketing Organization (DMO) for the
City of Monterey and the region.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE
ACT) APPLIES: No.

FISCAL IMPLICATIONS:

There are no costs incurred for the City to receive this presentation from See Monterey.

Per past Council practice, the City of Monterey has
invested 6% of the previous year’s Transient Occupancy Tax (TOT) revenue to fund destination marketing services. These funds have been granted to the U.S. Travel Association’s designated Destination Marketing Organization (DMO) for the region, See Monterey, with a reduction of $350,000 as part of MCCVB’s contribution to the City for repayment of internal loans for the Conference Center renovation project, up to $1,800,000.

Compensation for services in the current agreement is based on current, remitted TOT, allowing the City to pay as it collects, rather than being based on past year’s collections or future projections. The compensation for See Monterey’s services in FY 2024/25 includes 6% of the remitted TOT, reduced by $350,000 for the Conference Center.

Agenda Report Highlights
 The City Council will receive a
presentation from See Monterey on
April 30, 2025, regarding 2024/25
Mid-Year Performance and group
sales trends.
 See Monterey has served as the
Destination Marketing Organization
(DMO) for the City of Monterey and
the region for over two decades.
 The City of Monterey funds See
Monterey through 6% of the
previous year’s Transient
Occupancy Tax (TOT) revenue, with
a $350,000 reduction for the
Conference Center renovation
project repayment.
 Over the past year, See Monterey
has taken the lead role in group
sales and marketing for the
Monterey Conference Center,
reducing the need for a full-time
position in the City.

Date: 4/30/2025
Item No.: 1
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 1, Packet Page 3 №10/24
In addition to the City’s General Fund contribution, See Monterey receives revenues from the Monterey County Tourism Improvement District (MCTID), which is an assessment of hotel properties in the City of Monterey and other parts of Monterey County based on hotel room night stays.

ENVIRONMENTAL DETERMINATION:

The City of Monterey determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA)(CCR, Title 14, Chapter 3 (“CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

ALTERNATIVES CONSIDERED:

The City Council could choose not to receive this presentation, but that is not recommended.

DISCUSSION:

For over two decades, the City of Monterey has, on an annual basis, funded See Monterey to provide a destination sales and marketing program for both group sales and leisure and convention delegate and housing services. See Monterey serves as the Destination Marketing Organization (DMO) for the region and is funded jointly through General Fund contributions as a percentage of Transient Occupancy Tax (TOT) from participating municipalities (including the County of Monterey and cities of Monterey, Pacific Grove, Carmel-by-the-Sea, Marina, Salinas, and Seaside) as well as the Monterey County Tourism Improvement District (MCTID) assessment district, which is a fixed assessment on per occupied room per night based on the business hotel type.

The City of Monterey’s General Fund contribution to See Monterey has historically been 6% of TOT, reduced by $350,000 as part of MCCVB’s contribution to the City for repayment of internal loans for the Conference Center renovation project. In 2024/25, See Monterey also assumed the lead role of group sales and marketing for the Monterey Conference Center, reducing the need for the City to staff the full-time position.

At its meeting on April 30, 2025, the City Council will receive a presentation from See Monterey on its FY 2024-25 Mid-Year Performance and group sales trends.

NR
Attachments: 1. See Monterey FY2024-25 Mid-Year Investment Report, City of Monterey

2. See Monterey FY2024-25 Business Plan
Writings distributed for discussion or consideration on this matter within 72 hours prior to the meeting, pursuant to Government Code § 54957.5, will be made available at the following link:
https://monterey.gov/Submitted-Comments
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 2, Packet Page 4 See Monterey FY2024-25
Mid-Year Investment Report
City of Monterey
ATTACHMENT 1
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 3, Packet Page 5 FY2024-25 Summary by the Numbers
Leveraging the City of Monterey’s YTD investment of $1,033,057 with the combined jurisdiction and hotel investments yielded a tremendous ROI for our entire community. See Monterey's marketing communications efforts contributed to reaching over 5.3 million travel-ready households and more than 400,000 ad-influenced trips to Monterey County.

City of Monterey
Marketing
Communications
ROI
See Monterey
Website & Visitor
App Results
City of Monterey
Business
Membership
City of Monterey
Business
Development ROI
- Economic impact: $38,957,130.76
- Leads: 329
Potential room nights: 148,877
Potential new business: 133 Leads
- Booked groups: 97
- Booked room nights: 40,534
- Annual full-time jobs supported: 424
- Business Referrals: 2
- MCC leads: 76
- MCC booked groups: 31
- MCC economic impact: $24,013,738.68
- Partner Site Conversions: 72,300 clicks
from SeeMonterey.com to a local business
- Social Engagements: 39,500 likes,
comments, shares, link clicks, and video
views
- Earned media impressions: 13.4 million
- PR ad equivalency: $377,746
- Total web sessions: 18,800 sessions
- New downloads of app: 1,867
downloads
- Total App users: 1,415 Monthly
Average Users
- New members: 16
- Total members: 389
- Events promoted: 177
ATTACHMENT 1
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 4, Packet Page 6 Marketing Communications
Paid Campaigns
Inclusion in Paid Campaigns:
• FYWH Leisure Campaign
• Support Local Campaign + Responsible
Travel Campaign
• Inspiration Meets Here Group + MCC
Campaign
• Monterey Bay Aquarium Co-Op in
Phoenix
• International Display Campaign (UK)
Monterey Bay Aquarium Media Partnership
• Impressions: 14 million
• Website Views: 69,000
Fall Leisure Campaign
• Impressions: 46.6 million
• Website Views: 314,000
Featured in
POV video
series as part
of the FYWH
Leisure
Campaign
ATTACHMENT 1
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 5, Packet Page 7 Marketing Communications
Public Relations
Article Inclusions
47 Press Releases
1 Average Media
Quality Score
14/20
Impressions

13.4 MM
Advertising Value
Equivalent
$377,746
Media Hosted
59 ATTACHMENT 1
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 6, Packet Page 8 Marketing Communications
Social Media, Blog & E-Newsletter
Newsletter
Inclusions
9 Inclusions in New
Blog Posts
9 Cross-Channel Posts
115
Total Social
Engagements
39,500
ATTACHMENT 1
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 7, Packet Page 9 Business Development
Corporate
Familiarization
Tour
SITE Northern
California
Incentive
Market Destination
Experience
ATTACHMENT 1
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 8, Packet Page 10 Business Development
Monterey Conference Center
Meeting Professionals
Int'l Regional Business
Exchange
AI Certificate Program
ATTACHMENT 1
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 9, Packet Page 11 Member engagement
- Team site experience with GoCar Tours
- Virtual Meet-a-Members featured 6 Monterey
businesses
- The Points Guy & See Monterey Mixer
- Social Media Workshop
Community engagement
- Report outs at Wharf Association meetings
and Monterey Peninsula Chamber
roundtables
Board Representation
- Ed Smith, Director
- Hans Uslar, Advisor
Community Relations
Connectivity & Collaboration
Meeting with sister city delegates
Dubrovnik, Croatia
ATTACHMENT 1
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 10, Packet Page 12 Thank you for your continued partnership.

If you have questions or would like to request a meeting or presentation, please contact:

Alyssa Rendon
Director of Community Relations
[email protected]
ATTACHMENT 1
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 11, Packet Page 13 FY2024-25

BIG SUR
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 12, Packet Page 14 2 CASTROVILLE
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 13, Packet Page 15 2024-25 BUSINESS PLAN 3
Show Up Bigger, Become Better
Dear Stakeholders,
Monterey County is in a rare position as one of the world’s premier tourism destinations. What sets us apart is our extraordinary and diverse collection of inspiring experiences – a vibrant mosaic that can’t be found anywhere else.

Yet, what makes us so unique also presents distinctive challenges. We must compete for leisure travelers against one set of competitors while contending for groups and meetings on a much larger stage. In the leisure market, we rival iconic destinations like Napa Valley, Sonoma County, and Santa Barbara. Simultaneously, we face competition from larger, big-budget destinations such as San Jose, San Diego, and Palm Springs for the highly lucrative group and meetings business.

As we explore new markets for growth, we encounter awareness challenges: East Coast travelers are more familiar with Napa Valley and Sonoma, while Midwest and East Coast meeting planners may not fully appreciate our capacity to host world-class events and meetings.

Nevertheless, See Monterey has a history of exceeding expectations – punching above our weight. This year, we must amplify our efforts dramatically. It’s not enough to merely increase awareness; we must seize it. We need to make a bold impact by showing up in bigger, unexpected ways that capture attention and convert it into economic vitality.

This Business Plan has a singular focus: Show up Bigger, Become Better. By completing our rebranding efforts with “Find Your Way Here,” reinventing our website experience, integrating AI technology, enhancing our presence in the meeting and conference space, and both promoting existing and attracting new events, we will base all strategies and tactics on the idea of showing up bigger. And become better in terms of economic vitality and quality of place.

Rob O’Keefe
President & CEO, See Monterey

FROM THE CEO
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 14, Packet Page 16 4 MARINA
Inside
Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 Committees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 The See Monterey Way . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 Monterey County Tourism 2030 Roadmap . . . . . . . . . . . . . . . . . . . . . . .8 Brand Update . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Research Update . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 Situation Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 FY 2024/25 Business Plan & Budget . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Budget Snapshot . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 Marketing Communications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24 Business Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32 Luxury Collection Initiative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37 International Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Community Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Finance, Operations, HR & Administration . . . . . . . . . . . . . . . . . . . . . .41 2022 – 2024 ARPA Destination Recovery Plan . . . . . . . . . . . . . . . . . .42 ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 15, Packet Page 17 2024-25 BUSINESS PLAN 5
Officers
Chair Bina Patel Peninsula Hospitality Group
Treasurer Erik Uppman Cannery Row Company
Secretary Fady Hanna Pacifica Host Hotels
Past Chair Amrish Patel Green Lantern Inn

DIRECTORS
Mary Adams Monterey County Board of
Supervisors
Sylvain Briens The Sanctuary Beach
Resort
Janine Chicourrat Portola Hotel & Spa
Kimbley Craig City of Salinas
Kevin Ellis Hyatt Regency Monterey
Hotel & Spa
Kirk Gafill Nepenthe/Phoenix
Corporation
Kelly Green Hestia Coffee
Amy Herzog Visit Carmel
Donna Langley Pebble Beach Resorts
Stefan Lorch Monterey Marriott
Teri Owens Embassy Suites by Hilton
Monterey Bay Seaside
Ed Smith City of Monterey
Chris Sommers Monterey Plaza Hotel
& Spa
Barry Toepke WeatherTech Raceway
Laguna Seca
John Turner InterContinental,
The Clement Monterey

ADVISORS
Jacquie Atchison Arts Council for Monterey
County
David Baird Monterey County Vintners
& Growers Association
Carol Chorbajian Monterey County
Hospitality Association
Norm Groot Monterey County Farm
Bureau
Tonya Hufford Monterey Conference
Center
Michael La Pier Monterey Regional Airport
Mike LeBarre City of King City
Paula Joy MacNab Monterey County Film
Commission
Dana Allen-Griel Monterey Bay Aquarium
Sean Panchal Presidents Inn
Erin Sollecito Monterey Touring Vehicles
Hans Uslar City of Monterey
Anna Velazquez City of Soledad
Paige Viren Monterey County
Hospitality Association
Liesbeth Visscher City of Marina
FY2024-25 BOARD OF DIRECTORS
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 16, Packet Page 18 6 COMMITTEES
See Monterey operates with the guidance of several committees designed with a focus on a specific area of strategic importance for the direction of the organization.

Visit SeeMonterey.com/Members/Board to learn more about the Board of Directors and Committees including meeting dates, agendas and minutes.

Executive Committee
Chair, Bina Patel
Supports and evaluates the President & CEO,
vets confidential issues and acts on behalf of the
full board of directors in case of an emergency.

Finance Committee
Chair, Erik Uppman
Advises the board on financial matters and
policies.

Marketing Committee
Chair, Barry Toepke
Provides strategic input, advice and collaboration
on marketing communications plans and
activities.

Sales Committee
Chair, Kevin Ellis
Actively participates in the development, planning
and evaluation of group sales and service
programs.

Compensation Committee
Chair, Janine Chicourrat
Reviews compensation structure and benefit
programs.

Board Development Committee
Chair, Amrish Patel
Solicits and reviews board position applications
and makes candidate recommendations to fill
vacancies.

MCTID Oversight Committee
Chair, John Turner; Vice Chair, Chris Sommers
Comprised of hotel representatives from within
the Monterey County Tourism Improvement
District (MCTID) boundaries, completely
oversees MCTID budget and program
development and monitoring.

ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 17, Packet Page 19 2024-25 BUSINESS PLAN 7
Vision: A thriving tourism economy that enriches
Monterey County’s economic vitality and
quality of life.

Mission: To generate community prosperity for Monterey
County through the responsible promotion and
growth of the tourism economy.

Values: Connectivity
Collaboration
Agility
Accountability
Inclusivity
Sustainability

THE SEE MONTEREY WAY
Diversity, Equality and
Inclusion Commitment
See Monterey is
committed to ensuring
that all members of the
organization feel welcome
and have an equal
opportunity to connect,
belong and grow.

MARINA
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 18, Packet Page 20 8 STRATEGIC PLAN UPDATE
Monterey County
Tourism 2030
See Monterey launched its first-ever long-term Strategic Roadmap in September 2022, designed as a living and evolving framework. After two years of operating under the original plan, the first formal checkpoint is the release of the Monterey County Tourism 2030 Roadmap this year. This update provides an opportunity for See Monterey, along with many hospitality and community partners, to step back and adapt the plan to new market conditions.

The goal: maximize the long-term viability of Monterey
county’s tourism economy

KEY STRATEGIES
Expand Community
Connectivity
& Collaboration
Enhance The Impact
of See Monterey
Imperatives:
• Collaborate on tourism-related
planning and development
• Overcome challenges, leverage
opportunities
• Seek meaningful ways to
address community interest in
responsible travel and Crisis
Communications
Imperatives:
• Expand reach into new markets
•Embrace technology
• Focus on seasonality
Scan here for the full version of the
Monterey County Tourism 2030 Roadmap
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 19, Packet Page 21 2024-25 BUSINESS PLAN 9

NATURALLY CONNECTED
BRANDS
Last year, See Monterey introduced a new brand platform, “Find Your Way Here,” emphasizing Monterey County’s unique and interconnected paths that create an epic journey and experience for every traveler.

At the root of “Find Your Way Here” is the idea that everything is connected – the places, the people, ourselves. So it only makes sense that all of the See Monterey brand segments be naturally connected to each other.

In the coming year, See Monterey will expand the new branding to the Groups and Meetings as well as Luxury segments, unifying the brand with a cohesive look and feel across all target audiences. The messaging will highlight that Monterey County offers not just natural beauty, accommodations, coastal cuisine, or world-class events, but everything combined—everything is here and connected.

The core idea is as simple as it is powerful: Monterey County’s appeal lies in the combination of its diverse elements, all naturally connected.

Leisure
With nearly $2 million in media spend for FY2023-24,
the “Find Your Way Here” campaign reached over
11 million U.S. households. According to research
company SMARInsights, the campaign rated in the top
10% for showcasing Monterey County’s natural beauty,
outdoor leisure opportunities, diverse experiences, and memorable moments. The campaign will continue in FY
2024/25 with refreshed digital and video creative.

BRAND UPDATE
Naturally Connected
As Monterey County’s destination brand
positioning, “Naturally Connected” serves
as an invitation, challenge, opportunity,
and guidepost for both travelers and
residents. It encourages exploration of the
connections we share with others, with
nature, and within ourselves, all set against
the backdrop of an epic landscape that
seamlessly blends nature-made beauty
with human-made attractions.

ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 20, Packet Page 22 10 Groups and Meetings
Inspiration will always be a thread in the fabric of the Monterey County experience, especially important
when it comes to hosting meetings and events.

Inspiration drives innovation. To leverage this, See
Monterey developed a new meetings platform,
“Inspiration Meets Here,” aligned with the “Find Your
Way Here” brand.

The campaign aims to attract meeting planners
by showcasing Monterey County as a unique,
memorable, and effective venue. It highlights the
destination’s compelling visuals and communicates
that Monterey County offers inspiring meeting and
conference experiences that drive attendance, boost
productivity, and spark innovation.

Key audiences for the campaign include
corporate, association, and incentive planners,
with tailored messaging addressing their needs
such as accessibility, affordability, and destination
awareness. The new brand will also influence all
Business Development activities, including
trade show booths, sales materials, and
booking incentive programs. The Monterey
Conference Center (MCC) campaign will
adopt the “Inspiration Meets Here” brand,
alongside its own unique branding. It will
leverage complementary media channels to
the broader destination campaign, focusing
on association planners and large groups to
maximize reach.

BRAND UPDATE
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 21, Packet Page 23 2024-25 BUSINESS PLAN 11
There are many reasons to believe Monterey County is an inspiring and unique destination for meetings and events. Through research, focus groups and one-on-one conversations, here are just a few that See Monterey has uncovered…

WHY MONTEREY COUNTY IS THE MOST

INSPIRING MEETINGS DESTINATION
Inspirational Setting
The majesty of Monterey’s stunning coastal
backdrop provides an inspirational environment
that stimulates creativity and innovation.

Exciting Team-Building Opportunities
The area offers a myriad team-building
activities, from sea kayaking to wine tasting in
scenic vineyards, enhancing camaraderie and
collaboration.

Safe and Convenient
Short direct flights, short drives, and short walks,
help set Monterey apart. A centralized hub of
meeting facilities and hotels is surrounded by a
vibrant downtown and just a short and safe walk
from coastal views and cultural attractions.

World-Class Facilities
Monterey boasts a variety of venues, from
luxurious hotels to state-of-the-art conference
centers, equipped with the latest technology to
ensure an event’s success.

Sustainability
Monterey is dedicated to sustainability and offers
eco-friendly options for a responsible and ecoconscious meeting experience.

Culinary
Local produce and ag growers in the destination
allow for chefs to create unique, localized menus
for meeting planners.

MONTEREY
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 22, Packet Page 24 12 Luxury
Luxury travelers are increasingly seeking unique,
immersive experiences like wildlife encounters,
exceptional dining, and bespoke cultural activities.

For some travelers, luxury travel is just simply “travel.” While others, in the aspiring luxury and luxury-adjacent categories, invest in premium experiences for special
occasions or splurge on one part of their trip and save on others.

Drawing on insights from hoteliers, competitive
research, and luxury retail cues, See Monterey
developed the “Seek & Find” campaign. This campaign
emphasizes not just luxury accommodations but also
the diverse, world-class experiences Monterey offers.

Rooted in the idea that seeking true worth often leads
to discovering something priceless, “Seek & Find”
is distinct in its look and feel, media, and audience
targeting, while aligning with the “Find Your Way Here” brand platform to enhance its impact across segments.

Congratulations to
Monterey County’s FIRST
MICHELIN Keyed hotels:

Alila Ventana Big Sur
Bernardus Lodge & Spa
Post Ranch Inn

BRAND UPDATE

BIG SUR
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 23, Packet Page 25 2024-25 BUSINESS PLAN 13
Visitor Profile Study Overview
Working with national tourism research firm SMARInsights, See Monterey gathered input from Monterey County visitors between July 2023 and June 2024. These findings were augmented by responses from travelers in a national survey database who reported visiting Monterey County to get a broad spectrum of responses.

RESEARCH UPDATE
*Average of Leisure, Business and International Travel
**Respondents were able to choose multiple reasons for
their visit, so the total is more than 100%
Average Trip Length*

3.4 Nights
Where They’re From
California 70%
United States 32%
International 7%
64%
Listed Monterey Country as
Their Main Destination
Average Party Size*

2.9 People
Reason For Travel**
Leisure 67%
Business 17%
Visiting friends
and relatives 20%
Special event 10%
Day trip 6%
36%
Included Monterey Country as
Part of a Road Trip
Average Daily Spend*
$633
70%
Were Repeat
Visitors
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 24, Packet Page 26 14 Resident Sentiment Study Overview
In 2024, See Monterey’s Resident Sentiment Survey revealed strong support for tourism as a key economic driver for Monterey County, alongside important challenges, and opportunities for managing future growth.
• 71% of residents agree that tourism is important to
Monterey County
• 56% of Monterey County residents say it is important to promote tourism
• Nearly 80% believe the local quality of life is better than in other parts of California or the U.S. - well above the national norm
• The most prominent challenges that were identified
include
• Transportation
• Housing
• Infrastructure
New Data Analytics Tools
See Monterey has partnered with Tourism Economics
to create a custom Symphony Intelligence Platform.

This platform integrates data from sources like STR
reports, Google Analytics, Dean Runyan Impact studies,
and geolocation data, providing See Monterey with
centralized, customizable dashboards for quick access
to decision-ready insights.

The value for See Monterey members and stakeholders includes actionable insights, key data trends, enhanced measurement of sales and marketing effectiveness, and the creation of reports with relevant, actionable inputs.

One More Night
Residents want
visitors to stay longer,
travel during off-peak
seasons, and explore
lesser-visited areas.

These goals align
with See Monterey’s
core strategies and
will continue to drive
marketing and sales
efforts.

RESEARCH UPDATE
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 25, Packet Page 27 2024-25 BUSINESS PLAN 15
Looking at the year ahead, there are a number of forces that will continue to impact travel recovery – from upcoming elections to global climate change. While demand for leisure travel is still strong, economic headwinds may impact some consumer segments. Slower recovery of the outbound travel market from Asia will also continue to impact visitation to the U.S., especially California, and business travel continues to recover – albeit slowly. Even with all of this, the travel industry is poised for steady growth, though at a more sustainable pace compared to the rapid rebounds seen in the immediate postpandemic years. Forecasts predict continued upward momentum through 2026, driven by increased demand and a growing interest in wellness, luxury, and sustainable experiences. Monterey County, as a destination, is well positioned to take advantage of these trends and capitalizing on them will be key to continuing recovery.

National Travel Indicators & Forecasts
U.S. Hotel Forecast
While 2024 U.S. hotel occupancy has not returned to 2019 levels, average daily rates are more than 20% higher. With this, RevPAR for the year is expected to end 16% higher than in 2019. This 3% year-over-lift is due primarily to continued increase in rates.

For the coming year, occupancy is expected to reach pre-COVID levels for the first time at a national level. Combined with continued increases in rates, total RevPAR is expected to be 19% across the U.S. in 2025.
19 20 21 22 23 24 25
100
Occupancy Index
Index (2019=100)
64 88 97 98 99 100
19 20 21 22 23 24 25
100
ADR Index
Index (2019=100)
78 95 114 118 121 123
19 20 21 22 23 24 25
100
RevPar Index
Index (2019=100)
52 83 108 113 116 119
Note: RevPar reflects standard methodology. Source: STR; Tourism Economics

SITUATION ANALYSIS
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 26, Packet Page 28 16 Travel Segments
The slow return of business travel
continues to impact overall occupancy,
and is the main reason levels have not
yet returned to where they were in 2019.

However, leisure travel volume in 2024
has exceeded that of 2019 by nearly
5%. Business travel is not forecast to
return to the 2019 baseline until 2026.

International Travel to the U.S.

Forecast
Just as hotel RevPAR is exceeding
2019 levels because of hotel rates,
international spending is exceeding
that of 2019 – due to both prices and
inflation. International visitor volume
for calendar year 2024 is anticipated
to be 2% off that of 2019. There will be
another significant boost in 2025 and
volume is anticipated to be 8% higher
than before 2019. With these increases,
total international visitor spending in
2025 is anticipated to exceed that of
2019 by more than 20%.

SITUATION ANALYSIS
International Spending
2019 2020 2021 2022 2023 2024 2025 2026
150
100
50 0
100
19 21
61 84
121
104
137
International Visitation
2019 2020 2021 2022 2023 2024 2025 2026
150
100
50 0
100
24 28
64 84
108
98 115
2019 2020 2021 2022 2023 2024 2025 2026
100
80 60
40 Domestic Leisure
Domestic Business
Leisure vs. Business Travel Volume
(Indexed to 2019)
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 27, Packet Page 29 2024-25 BUSINESS PLAN 17
Meetings and Events Forecast
The meetings and events segment of business travel continues to lag behind individual business travel.

The U.S. Travel Association, in cooperation with Simpleview, reports that booked room nights for 2024 have remained about 10% off that of 2019. However, the booking window remains fairly short, with booking movement in events 6-9 months out. Northstar Meetings Group’s Pulse survey in August 2024 shows 45% of planners are more optimistic than they were three months ago, down nearly 20% from the same time a year ago. Last August’s optimism coincided with a spike in new bookings, which is not being matched in 2024.

DMO Room Nights on the Books (Pace for future dates vs. same period in 2019) 24 Q1 24 Q2 24 Q3 24 Q4 25 Q1 25 Q2 25 Q3 25 Q4
As of date July 8, 2024
August 5, 2024
0%
-5%
-10%
-15%
-12% -12% -3% -3% -4% -4% -10% -8% -13% -11% -5% -5% -10% -10% -6% -6% Sources: Simpleview CRM (250+ U.S. DMOs)
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 28, Packet Page 30 18 California Travel Indicators & Forecasts
California Visitor Forecast
While hotel occupancy across the U.S. is anticipated to be off just 1% for calendar year 2024, Tourism Economics forecasts the state of California will see visitor volume 6% lower than pre-COVID levels.

While other destinations have been able to overcome continued declines in volume through price increases, California’s visitor spending is not anticipated to meet or exceed the 2019 baseline until 2027.

California Visitor Volume Forecast
(% relative to 2019)
California Visitor Spending Forecast
(% relative to 2019)

SITUATION ANALYSIS
Source: Visit California & Tourism Economics
19 20 21 22 23 24 25 26 27 28
100 49 75 91 92 94 96 99 101 103
Source: Visit California & Tourism Economics
19 20 21 22 23 24 25 26 27 28
100 49 75 91 92 94 96 99 101 103

PACIFIC GROVE
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 29, Packet Page 31 2024-25 BUSINESS PLAN 19
California International Forecast
While total international travel to California already exceeds 2019 baselines, this is due to record visitation from Canada as well as significant growth from India and Mexico. However, pre-COVID international visitation was strongest from China. Given their visitation for 2024 is anticipated to be 12% off 2019, total overseas travel is anticipated to end the year down 3% from 2019. With a strong recovery of the China market expected in 2025, total international visitation is forecasted to be up 15% in 2025.

California International Visitor Volume Forecast by Market California Visitor Volume Forecast by Market
Source: Visit California & Tourism Economics
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
International
Overseas
Domestic
100
21 51
17 29
78 14
67 92
55 86
93 78
103
93 97
115
95 111
123
97 120
127
99 125
129
1-2
128
India
Canada
Mexico
Germany
Japan
France
South Korea
United Kingdom
Italy
Australia
China
Middle East
Brazil
Nordics
119
103
85 108
88 101
64 108
93 102
80 104
88 95
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 30, Packet Page 32 20 California Business
Travel Forecast
Overall travel recovery has
been slower for California than
other U.S. states – due both
to domestic and international
travel. However, business travel
is anticipated to remain below
the 2019 baseline in California for
another 5 years, with recovery in
business volume not anticipated
until at least 2029. However,
there are bright spots. In the
August 2024 Northstar Pulse
Survey, 46% of planners indicate
they are actively planning new
events in California, second only
to Florida at 48%.

Business vs. Leisure Visitors in California
(Indexed to 2019)
Source: Visit California & Tourism Economics
Source: Lodging Analytics Research & Consulting & Costar Monterey County Travel Indicators & Forecasts
Monterey County Hotel Forecast
While Monterey’s hotel recovery remains below the U.S. average, it is exceeding California’s performance overall. For the calendar year, Monterey’s occupancy is 8% off that of 2019, while California’s occupancy is 13% lower. While the state’s ADR has increased 12%, Monterey’s is 26% higher. Overall, Monterey’s 2024 RevPAR is expected to be 17% higher than in 2019, exceeding the U.S. average of 16%. For 2025, there is little change expected in occupancy. However, rates will continue to rise and produce a 24% higher RevPAR than pre-COVID.

Monterey Hotel Forecast
(% Change Against 2019)

SITUATION ANALYSIS
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
234.6

25.8 187.6
219.1 222.4 225.7 230.7 236.0 239.4 245.2

16.9 123.7

51.0 40.0 41.5 42.9 44.9 46.4 47.8 49.8
Leisure
RevPar
Business
ADR
-13%
13%
-11%
20%
-6%
26%
-5%
16%
-9%
26%
-8%
17%
-8%
26%
-7%
24%
-7%
33%
-7%
29%
-5%
39%
-7%
33%
-5%
44%
-8%
37%
-4%
50%
-9%
2021 2022 2023 2024 2025 2026 2027 2028
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 31, Packet Page 33 2024-25 BUSINESS PLAN 21
Monterey County Meetings and Events Forecast
Monterey County’s meetings and events bookings continue to defy the industry, with definite room nights nearly five-times higher than in 2019. Nationally, group travel demand remains 3% off pre-COVID levels, with local DMOs seeing an average of 7% fewer meetings and event room nights for 2024. Of the Bay Area competitors, Monterey is far outperforming San Francisco and San Jose, with the forecast for 2025 anticipating another 22% increase in Monterey Conference Center bookings.

Meetings and Events Booking Pace (% Change Against 2019) Source: Lodging Analytics Research & Consulting & Costar 2020 2021 2022 2023 2024 2025 2026 2027 2028
1200%
1000%
800%
600%
400%
200%
0%
-200%
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 32, Packet Page 34 22 The Value Equation
In the 2024 State of the American Traveler
from Future Partners study, consumers’ price
sensitivity is evident. SMARInsights past
research has shown that concerns about cost are
often mostly about value – and consumers have
shown that they are willing to pay for the things
they value. Monterey County delivers on what
consumers want - with relaxation and escaping
daily stress as top trip motivators. This provides
the opportunity to highlight the value of a trip to
the area.

Content Creation Fuels Travel Planning
Younger audiences are turning to influencers for
travel planning. The 2024 State of the American
Traveler shows that while just 17% of consumers
overall use content from influencers to plan, 34%
of Gen Z and 30% of Millennials are looking for
travel advice from digital influencers. A third of
American travelers regularly listen to podcasts,
with entertainment, wellness and comedy the top
genres. Utilizing both travel influencers and local
content creators positions See Monterey to be
part of the conversation.

Hispanic & Latino Travelers
Hispanic and Latino travelers are spending more
on their overnight trips than average according
to the State of the American Traveler from Future
Partners. Not only are they more optimistic about
the future of their finances than the average
consumer, but they are also more likely to make
travel a high priority in their budget. With 70%
of Monterey County visitors coming from within
California, and California’s high Hispanic and
Latino population, there is opportunity to cater
programs directly to these travelers.

The Visitor x Community Connection
Many destination marketing organizations,
like See Monterey, recognize the necessary
balance between positive visitor experiences
and community wellbeing. Responsible Travel
programs, like The Right Path, support this
connection and it continues to be an area of
strength for Monterey County, creating an
opportunity to become the destination of choice
and making consumers feel good about choosing
the destination.

The Rise of Smaller Meetings
The American Express Global Meetings & Events
2024 Forecast reports that part of a new era for
meeting professionals is taking on a distributed
workforce. With continued remote work for a
portion of employees, employers are turning to
regular, small meetings to bring teams together.

While Monterey County needs to compete for
both large and small meetings, opportunity exists
to focus efforts on smaller meetings, as well as
target attendees with Bleisure messaging to
encourage them to extend the stay.

Wellness Means Business
While leisure wellness has been on trend for
a number of years, experiences are being
incorporated into meetings in a bigger way. Given
attendees are more selective about the events
they are attending, more attention is given to
self-care activities throughout events, ensuring
attendees leave more energized than drained.

Buy Now, Pay Later
While the Service Merchandise layaway model for
retail is decades in the rearview mirror, BNPL is
on the rise for travel. Companies like Klarna have
become ubiquitous at checkout for airlines and
online travel agencies like Expedia. With flexible
financing options, BNPL has become especially
popular with Gen Z. With less access to traditional
credit than older generations, younger consumers
are embracing the model, especially for smaller
purchases such as travel expenses.

Travel TRENDS & OPPORTUNITIES

SITUATION ANALYSIS
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 33, Packet Page 35 2024-25 BUSINESS PLAN 23
Budget Snapshot
The new Monterey County Tourism Improvement District (MCTID) plan is now in full effect and together with the jurisdiction investments it allows Monterey County to compete at a much higher level. See Monterey’s marketing and sales programs are able to reach into further markets to attract travelers who will stay longer, spend more, and drive greater economic vitality and quality of life for communities and residents.

The Critical Importance of TOT:The renewed and increased MCTID provides long-term foundational funding for See Monterey, but in order to show up bigger it is critical for the organization to maintain jurisdiction investment in TOT funding as well. The combination of TID and TOT funding allow for amplified programs and expanded reach.

FY2024-25 BUSINESS PLAN & BUDGET
*City of Monterey revenue projection factors in $350,000 annual give-back for costs associated with Monterey Conference Center renovation.

Revenue
Jurisdiction Investment
County of Monterey 1,913,494
City of Monterey 1,800,000*
City of Carmel-by-the-Sea 226,297
City of Pacific Grove 161,500
City of Seaside 117,202
City of Salinas 115,104
City of Marina 123,074
City of King City 10,000
City of Soledad 3,000
City of Sand City 2,000
Subtotal Jurisdiction Investment $4,471,671
Monterey County Tourism Improvement District
Monterey County 2,367,721
City of Monterey 3,526,458
City of Carmel-by-the-Sea 531,669
City of Pacific Grove 372,583
City of Seaside 432,482
City of Salinas 305,052
City of Marina 327,844
Subtotal TID/HID $7,863,807
Private Revenue $60,000
Total Revenue $12,395,478
Expense
Group Sales & Services
Business Development Programs 113,429
Group Business Development
Events 1,088,360
Leisure Business Development
Events 389,900
Meeting Incentives 120,000
Group Marketing 850,000
Operations & Talent 1,942,692
Total Group Sales & Services $4,504,381
Marketing Communications
Leisure Marketing 2,600,000
International Marketing 200,000
Luxury Marketing 400,000
Public Relations 280,000
Agency Fees 390,000
Operations & Talent 1,780,568
Total Marketing Communications $5,650,568
Community Relations $379,934
Administration $1,725,237
Total Expenses $12,260,121
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 34, Packet Page 36 24 SHOWING UP BIGGER
This year is dedicated to showing up bigger to become better. To achieve this, the Marketing Communications program has expanded significantly over the past year and will continue to grow, driving programs that deliver greater visibility, reach, and impact for the destination.

There will be activities in key areas as well as in unexpected places, taking advantage of new opportunities to grow awareness, familiarity and, ultimately, intent to visit. There are plans for additional initiatives and partnerships designed to elevate Monterey County and maximize its tourism potential.

In FY 2024-25, extending the “Find Your Way Here” brand across all of See Monterey’s market segments—Group, Luxury, and International—will be crucial. For leisure visitors, a realigned media strategy optimizes spending in both fly and drive markets, amplifying the impact of paid advertising by boosting awareness in distant markets and driving immediate consideration in closer ones.

All marketing communications programs direct visitors to SeeMonterey.com. The new SeeMonterey.com, set to launch in Q2 of the fiscal year, focuses on a connected user experience and increased engagement across content types. The integration of an AI-powered itinerary builder will get users closer to booking in less time, while also supporting messaging around extended stays and responsible travel practices in Monterey County.

MARKETING COMMUNICATIONS

STRATEGIC PRIORITIES

1. Market Growth & Increased Engagement
• Show up bigger in International and Luxury
markets
• Continue to gain ground with Groups and
Meetings market
• Maximize the near and grow the far in
Domestic Leisure markets
• Focus on high value travelers, those who
stay longer and spend more
• Develop content and programs that
encourage visitors to stay one more night
• National and international PR pitching and
media hosting year-round

2. Brand Roll Out
• Launch “Inspiration Meets Here” group and
meetings brand at IMEX
• Launch “Seek & Find” Luxury campaign
• Refresh “Find Your Way Here” creative
• Develop ready made plans for opportunistic
deployment to support soft spots in the
market, bad weather (and good), etc.

3. Digital Transformation
• Launch new SeeMonterey.com with
streamlined navigation and vastly improved
user experience
• Incorporate AI itinerary building tool
• Grow and nurture engaged users through
e-news and app
• Grow and evolve social channels to prioritize
active engagement

4. The Right Path
• Reinforce educational efforts with visitors
and locals to promote responsible travel
practices
• Engage community partners to support and
advance responsible travel initiatives
• Assess and set community benchmarks to
measure progress and impact
• Develop a messaging strategy for “Always
Open” Highway 1 & Big Sur to highlight
ongoing accessibility and promote
responsible travel along these routes
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 35, Packet Page 37 2024-25 BUSINESS PLAN 25
GOALS & KPIs
The Marketing Communications team’s
goal is clear: drive demand across all
visitor segments. Measuring this goal
involves a range of metrics, with Intent
to Visit scoring being the ultimate
indicator. This metric evaluates how
effectively See Monterey’s marketing
and communications programs
influence demand and subsequent
travel, and it determines the ROI of
these efforts.

In addition to Intent to Visit,
performance is tracked across various
KPIs. Benchmarking new metrics
this year, including geolocation
data, visitor spending, and active
engagement will create new ways to
look at effectiveness. These metrics will
be considered for formal inclusion as
KPIs in the next fiscal year, enhancing
See Monterey’s ability to measure ROI
and the overall value generated for the
destination.

Goal
Intent to Visit: 4.3*

KEY PERFORMANCE INDICATORS
Engaged Web Sessions 1.2 million
MeetInMonterey.com
Engaged Web Sessions 165,000
Social Engagements 1.35 million
Partner Site Conversions
(clicks from SeeMonterey.com directly to a
member’s website)
155,000
Top Level Group Conversions
(RFP submissions, clicks to call or clicks to
email from MeetInMonterey.com)
285
Top 125 Outlets 55
*See Monterey’s Marketing Impact Study indicates the ability of marketing and communications programs to influence travelers’ intent to visit the destination, as measured by third-party research company Strategic Marketing and Research Insights (SMARI).

CAMPAIGN OVERVIEW
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Find Your Way
Here Leisure Fall
Campaign
Find Your Way Here
Leisure Spring Campaign
Fly Market
Partnership with
Monterey Bay
Aquarium
Inspiration Meets Here Group/MCC Campaign
Seek & Find Luxury Campaign
Paid Search and Social Advertising
Responsible Travel
International PR and Direct-to-Consumer Advertising
Public Relations Media & Influencer Hosting
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 36, Packet Page 38 26 PAID MEDIA STRATEGY
See Monterey’s single biggest investment is in its paid media and advertising programs. Established campaigns continue to target Leisure, Luxury, Group, and International audiences through proven and strategic tactics. Complementing these paid media efforts are robust content and public relations programs, which together create a multi-layered, integrated approach to reaching visitors from key fly and drive markets.

Maximizing the Near, Growing the Far
Research consistently reveals two key insights:

1. Proximity Matters: Residents within close proximity to Monterey County (Drive Markets) are highly familiar with the destination and exhibit high repeat visitation.

2. Long-Distance Appeal: Travelers from farther away (Short and Long-Haul Fly-In Markets) have less familiarity but tend to spend more time and money during their visits.

To leverage these insights, See Monterey is employing a new bifurcated messaging and media strategy:
• Drive Markets: For those with existing knowledge, the focus is on lower-funnel media. This includes ads that create urgency and highlight new or unique experiences to encourage repeat visits. • Fly Markets: For distant travelers, the approach involves higher-level, inspirational advertising.

This strategy aims to build awareness and position Monterey County as a top travel destination, influencing their trip planning.

The expected outcome of realigning media channels is an increase spending in farther markets to boost awareness while maintaining effective engagement in nearby markets.

Leisure Luxury Groups & Meetings International
Travel intenders,
HHI $100k+
Value nature, wellness,
culinary, and/or
environment
Drive and fly markets
Travel intenders 35+
with HHI $350k+
Drive and fly markets
Corporate meeting
planners, association
meeting planners, key
decision makers
Drive and fly markets,
Chicago, Washington
D.C., New York City
Deploy direct-toconsumer advertising in
core markets
Utilize partnerships and
co-ops to extend and
amplify budgets

MARKETING COMMUNICATIONS
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 37, Packet Page 39 2024-25 BUSINESS PLAN 27

PUBLIC RELATIONS STRATEGY
See Monterey’s PR program continues to focus on media hosting, pitching, and relations, but will also incorporate new strategies such as media partnerships, influencer programming, and integrated campaigns with paid and owned media to enhance visibility and impact.

Key PR strategies for FY 2024/25:
• Integrate communications across all agency partners for coordinated efforts. • Position Monterey County as a destination worth more than just a weekend, encouraging extended stays and higher spend.
• Boost brand awareness and create urgency to book.
• Enhance media relations with targeted pitching, press release distribution, and new connections. • Leverage partner relationships to amplify brand content from local experts and partners. • Highlight sustainability and responsible tourism initiatives.

Reaching Spanish Speaking Audiences
“Encuentra Tu Monterey” is a PR initiative designed to reach Spanish-speaking travelers based in the United States and beyond by engaging with media from Spanish-speaking publications. The strategy includes translation of See Monterey’s public relations efforts, targeted pitching to Spanish-language outlets and influencer partnerships with leading Spanish-speaking content creators.

Thematic Arcs
These thematic arcs will guide See Monterey’s storytelling, showing up in different ways through PR and social content.

What’s in
Season Monterey the Beautiful The Heart of California California’sCreative Capital From peak wildlife
migrations to annual
events, Monterey
County is a destination
with a “welcome back”
message that dually
promises comforting
familiarity matched with
continual exploration.

The same scenic
elements that make
Monterey County a top
vacation destination
also converge to
create an optimal
synthesis of location,
soil, sea and climate
to produce incredible
flavors with distinct
quality.

All of the
quintessential
California experiences
are found in Monterey
County, alongside
community-driven
hospitality, diverse
paths and pursuits,
art and culture, history
and heritage and
natural beauty.

Meetings, corporate
groups and business
leaders can find
their own inspiration,
creative and
mental refresh and
harmonizing shared
experiences as those
before them with
pursuits and lodging
aplenty.

ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 38, Packet Page 40 28 OWNED CONTENT & SOCIAL STRATEGY
See Monterey’s social content strategy leverages
captivating visuals, engaging videos, and creative
captions to highlight Monterey County as a premier
destination. This approach aims to drive overnight visits while reinforcing principles of safe, sustainable, and
inclusive travel.

Key Strategies for FY 2024-25:
• Brand Consistency: Ensure uniform branding and
messaging across all social channels to build a
recognizable and trustworthy brand.
• Content Diversification: Use a variety of posts to keep audiences engaged and attract a broader audience.
• Trend Adaptation: Stay current with emerging trends
and experiment with new content formats, features,
and trending audio.
• Short-Form Video: Focus on engaging, shareable
short-form videos to capture attention in an authentic
and relatable manner.
•Local Creators: Utilize See Monterey’s local content
creator group to produce content and connect with
engaged social communities.
• Community Building: Foster a strong online
community to enhance brand loyalty and engagement.

The New
SeeMonterey.com
Launching in Q2 of FY 2024-25,
the new See Monterey website
will emphasize connectivity and a
streamlined user experience. Key
features include:
• User-Friendly Navigation: Clear and
intuitive navigation for a seamless
browsing experience.
• Smooth Partner Handoff:

Enhanced partner integration for
better collaboration and content
sharing.
• Rich Content Sharing: Integrated
content across the website and
social media.
• AI Trip Planning Tool: Mindtrip’s
AI-powered tool to help visitors
personalize and organize their
Monterey County trip.

MARKETING COMMUNICATIONS

KING CITY
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 39, Packet Page 41 2024-25 BUSINESS PLAN 29

SEE MONTEREY
CONTENT CALENDAR FY24-25

SEE MONT
CONT
JULY 2024
OCTOBER 2024
SEPTEMBER 2024
DECEMBER 2024
AUGUST 2024
NOVEMBER 2024

KEY MESSAGING
Outdoor Adventures, Beach Hopping, Recognized
Restaurants & Wineries, Seaside’s Oaxacan Culture, Salinas’ Rodeo History, Pet-Friendly Activities, “Second Summer,” Antiquing/Thrifting

KEY DATES
• Park & Recreation Month
• Fourth of July
• Carmel Bach Festival (July 13-27)
• California Rodeo Salinas (July 18-21)

MEETINGS
• Staycation in Monterey

KEY MESSAGING
Monterey Wine Trail, Clam Chowder Season, Monarch
Butterfly Season, Whale Watching, Holiday Getaways,
Digital Detox, Alternative Road Trips, Culinary

KEY DATES
• California Farmer & Farmworker Month
• Museums & Galleries Month
• LGBTQ+ History Month
• Monarch Migration
• Global Diversity Awareness Month
• Taste of Carmel (Oct 3)
• Monterey Beer Festival (Oct 5)
• Meet the Makers (Oct 12)
• Indigenous Peoples Day (Oct 14)
• Halloween (Oct 31)

MEETINGS
• IMEX Las Vegas (Oct 8-10)
• What’s New Fall 2025

KEY MESSAGING
Monterey Wine Trail, Clam Chowder Season, Monarch
Butterfly Season, Whale Watching, Holiday Getaways,
Digital Detox, Alternative Road Trips, Culinary

KEY DATES
• Native American Heritage Month
• Big Sur Food & Wine Festival (Oct 31-Nov 2)
• Monterey Bay Half Marathon (Nov 8-10)
• Small Business Saturday (Nov 25)
• Thanksgiving (Nov 28)
• Black Friday (Nov 20)

KEY MESSAGING
Monterey Wine Trail, Clam Chowder Season, Monarch
Butterfly Season, Whale Watching, Holiday Getaways,
Digital Detox, Alternative Road Trips, Culinary

KEY DATES
• Ice Skating on the Bay
• Christmas in the Adobes (Dec 6-7)
• Winter Solstice (Dec 21)
• Christmas (Dec 25)
• First Night Monterey (Dec 31)
• New Year’s Eve (Dec 31)

MEETINGS
• Holiday Galas
• CalSAE Seasonal
Spectacular,
Sacramento
(Dec 4-5)

KEY MESSA
New in 2025, O
Owned Busine
rey County, Wo
Gig-Tripping, L

KEY DATES
• Pinnacles An
• Monterey Sw
• Plan For Vaca
• Lunar New Ye

MEETINGS
• What’s New -
• Wellness in M
• PCMA Conve
(Jan 12-15) Ho

KEY MESSA
Wildflowers, W
Road Trip Itine
Itineraries, AA
ty State Parks
Hidden Gems

KEY DATES
• Pebble Beac
• Sea Otter Cla
• Easter (Apr 2
• Earth Day (A
• Whalefest Mo
• National Park

MEETINGS
• Sustainable M
& Green Mee
• CalSAE Eleva
Monterey (Ap
• Global Meetin

KEY MESSAGING
Outdoor Adventures, Beach Hopping, Recognized
Restaurants & Wineries, Seaside’s Oaxacan Culture,
Salinas’ Rodeo History, Pet-Friendly Activities, “Second Summer,” Antiquing/Thrifting

KEY DATES
• National Wellness Month
• Salinas Valley Food & Wine Festival (Aug 3)
• Monterey Car Week (Aug 9-18)
• Monterey Pre-Reunion & Corkscrew Hillclimb (Aug 10-11) • Rolex Monterey Motorsports Reunion (Aug 14-17)
• Pebble Beach Concours D’Elegance (Aug 18)
• Monterey County Fair (Aug 29-Sep 2)

KEY MESSAGING
Outdoor Adventures, Beach Hopping, Recognized
Restaurants & Wineries, Seaside’s Oaxacan Culture,
Salinas’ Rodeo History, Pet-Friendly Activities, “Second Summer,” Antiquing/Thrifting

KEY DATES
• Hispanic Heritage Month
• California Wine Month
• Labor Day (Sep 2)
• CA Coastal Cleanup Day (Sep 21)
• Fall Equinox (Sep 22)
• Sea Otter Awareness Week (Sep 22-28)
• Monterey Jazz Festival (Sep 27-29)
• CA International
Airshow Salinas (Sep 27-29)

SEE MONTEREY
CONTENT CALENDAR FY24-25
JANUARY 2025
APRIL 2025
4 MARCH 2025
JUNE 2025
FEBRUARY 2025
MAY 2025
on, Monarch
ay Getaways,
inary

KEY MESSAGING
New in 2025, Outdoor Activities, Hiking Trails, BlackOwned Businesses, Whale Watching, Spring in Monterey County, Women-Owned Businesses, Spring Break, Gig-Tripping, Luxury Highlights, Off-Season Promotion

KEY DATES
• Pinnacles Anniversary (Jan 10, 2013)
• Monterey Swing Fest (Jan 15-20)
• Plan For Vacation Day (Jan 28)
• Lunar New Year (Jan 29)

MEETINGS
• What’s New - 2025
• Wellness in Meetings
• PCMA Convening Leaders
(Jan 12-15) Houston TX

KEY MESSAGING
Wildflowers, Waterfront Dining, Wine Tasting & Tours,
Road Trip Itineraries, Literary Itineraries, Multi-Gen
Itineraries, AAPI-Owned Businesses, Monterey County State Parks, Pride Events, Responsible Tourism, Hidden Gems

KEY DATES
• Pebble Beach Food & Wine (Apr 10-13)
• Sea Otter Classic (Apr 10-13)
• Easter (Apr 20)
• Earth Day (Apr 22)
• Whalefest Monterey (Apr 12-13)
• National Park Week (Apr 16-24)

MEETINGS
• Sustainable Meetings
& Green Meeting Spaces
• CalSAE Elevate in
Monterey (April 28-30)
• Global Meetings Industry Day

KEY DATES
• California Travel & Tourism Month
• Asian American & Pacific Islander Heritage Month
• Mother’s Day (May 11)
• Global Accessibility Awareness Day (May 15)
• Memorial Day (May 26)
• California Roots Music
Festival (May 23, 24, 25)
• World Otter Day (May 28)

MEETINGS
• CalTravel and Tourism Month
• IMEX Frankfurt (May 20-22)

KEY DATES
• Pride Month
• Ocean Month
• Father’s Day (June 15)
• Summer Solstice (June 20)
• Artichoke Festival (TBD)
• Firestone Grand Prix
of Monterey (TBD)

MEETINGS
• MPI WEC St. Louis
(June 17-19)

KEY DATES
• Black History Month
• Whale Day (Feb 16)
• Clam Chowder Day (Feb 25)
• John Steinbeck’s birthday (Feb 27)
• AT&T Pebble Beach Pro-Am (Jan 29-Feb 2)

KEY DATES
• Women’s History Month
• Global Day of Unplugging (Mar 7)
• Jazz Bash by the Bay (Mar 7-9)
• National Artichoke Day (Mar 16)
• Spring Equinox (Mar 20)
, Recognized
xacan Culture,
tivities, “Sec
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 40, Packet Page 42 30 RESPONSIBLE TRAVEL: THE RIGHT PATH
“The Right Path” initiative is dedicated to highlighting and celebrating responsible travel practices across Monterey County, encouraging both visitors and residents to enjoy the destination with respect and care. The ultimate goal is to ensure that all travel paths contribute to a better quality of place, leaving the destination in better condition than before.

This initiative goes beyond environmental sustainability, incorporating several key elements aimed at minimizing negative impacts and enhancing positive outcomes.

Promoting The Right Path: See Monterey’s Commitment to Responsible Travel See Monterey actively promotes “The Right Path”
through a range of initiatives designed to educate
and engage both visitors and residents.
• Paid Advertising Campaigns: Targeted
advertising both within and outside the market to
reach potential visitors before they arrive, as well
as reminding them and residents while they are
here.
• Educational Content: Providing information on
responsible travel practices through various
channels, including social media, blogs, and
direct communications.
• Community Engagement: Partnering with local
businesses and organizations to reinforce the
message and encourage widespread adoption of
responsible travel practices.

By embracing these principles, See Monterey aims to create a more sustainable and enjoyable experience for everyone.

Environmental
Stewardship
Cultural and
Community
Respect
Support for Local
Businesses
Respect for Local
Communities
Education and
Awareness
Conserving
resources,
minimizing waste,
and protecting
wildlife.

Honoring local
traditions,
supporting
local culture,
and promoting
inclusivity.

Encouraging
patronage of local
establishments.

Ensuring
respectful
interactions
and fostering
community
integration.

Promoting
responsible travel
practices through
educational
efforts.

SeeMonterey.com
ADORE

RESPONSIBLY

MARKETING COMMUNICATIONS
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 41, Packet Page 43 SOLEDAD 2024-25 BUSINESS PLAN 31
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 42, Packet Page 44 32 Group Business remains a key priority for Monterey County. Attendance at major industry events, targeted solicitation efforts and servicing repeat valued clients will be instrumental in staying top of mind with meeting planners. The team has been proactive and strategic, working diligently to maintain and surpass lead volume targets. With the addition of the Senior Conference Sales position, the team is poised to have continued success with booking larger compression causing groups. Partnerships with major meeting planner networks like SITE, FICP, Prestige and Maritz will be instrumental in helping the team grow high value business leads and bookings into Monterey County hotels and resorts.

BUSINESS DEVELOPMENT
This year’s plan focuses on:
• Full Sales Activity Program: Engaging in aggressive lead generation and re-engaging past groups. • Citywide Business Targeting: Aiming to increase compression across the county by focusing on large citywide events.
• Spreading Business Opportunity: The Flash your badge program helps meeting planners give their attendees offsite options and educates them on all the amazing aspects of the county that make it inspirational.

STRATEGIC PRIORITIES

1. Prioritize Need Periods and New Business
• Get aggressive with booking incentive.
• Solicitation program to pull through new
business.
• Target larger compression causing groups
in need time periods.
• Increase international activations in travel
trade.

2. Drive Compression – Larger Meetings
& Conferences
• Target high value groups and meetings
from existing and new feeder markets.
• Solicit compression causing group events
• Group incentive targeting need periods.

3. Deliver High Value Leads & Conversion
• Grow awareness with Corporate and
Incentive meeting planners (FICP/SITE).
• Meeting planners with FAMs from direct
flight/new flight markets.
• Conduct high level client activation at
Pebble Beach Food & Wine event.

4. Lengthen Stays through Bleisure Travel
• Grow “Flash Your Badge” program.
• Implement a paid site tour program for
meeting planners looking to book Monterey
County.

5. Drive Referrals and Business
Opportunities
• Highlight green properties and attributes of
the destination to meeting planners.
• Create new resources for meeting planners.

GROUP BUSINESS
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 43, Packet Page 45 2024-25 BUSINESS PLAN 33
Tactical Considerations for Group Business:

Industry Events: Host key industry events in-market to educate and attract meeting planners.

Booking Incentives: Promote through industry partnerships, including SITE Northern California, MPI Regional Business Exchange, and CalSAE Elevate.

International Representation: Engage with representatives from the UK, Europe, Mexico, Canada, and China to broaden international reach.

Promotions & Incentives: Encourage conference attendees to extend their stays with special offers.

Sustainability Initiatives: Highlight stakeholder sustainability efforts to meeting planners.

Customer Advisory Board: Re-engage to advocate for the destination.

Prospecting Tools: Introduce new tools and platforms to attract new business.

Client Exposure: Maximize visibility through FAMs, client events, and industry associations/ partnerships.

Exclusive Activations: Drive inspiration with exclusive client activations at Monterey County signature events.

Trade Marketing Campaigns: Boost awareness and drive room night production through targeted campaigns.

This year’s plan focuses on
enhancing collaborative efforts
to boost MCC lead generation
and simplify the booking
process for meeting planners.

As the largest conference
facility in Monterey, which
benefits surrounding hotels
and hospitality businesses, it’s
crucial to raise awareness and
create business opportunities.

Monterey Conference Center
Key tactics include:
• Enhanced Team Collaboration: Strengthen coordination between the Conference Sales Manager, Business Development Team, and MCC Staff. • Promotion of Large Capacity: Increase visibility of the Monterey Conference Connection to attract high-capacity groups.
• Sales Process Optimization: Improve sales processes to enhance the customer experience and assist the Business Development team. • In-Market Events: Organize events with a strong planner/supplier ratio to foster connections.
• FLY-SEE-BOOK Promotion: Reintroduce this promotion to engage clients and encourage site inspections.
• Targeted FAMs/Client Events: Execute FAMs and client events aimed at securing large business opportunities.

ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 44, Packet Page 46 34 GOALS & KPIs
The Business Development team
focuses on driving high value,
compression-causing group
business for hotels and hospitality
businesses, as well as core business
that is 10 -100 room nights on peak.

While leads and conversion rates
remain paramount, other metrics
are tracked and communicated
with group-focused hotels. This
collaborative effort enhances See
Monterey’s ability to attract and
secure business throughout the
entire destination.

The goals below have been set as
conservatively optimistic given the
existing competitive landscape and
economic forecasts.

Goals
Leads
620
Goal is for group business leads; a group
is 10 rooms or more in the Corporate,
Association and Incentive group market
segments
Conversion
25%
Conversion is booked leads divided by
total leads received

KEY PERFORMANCE INDICATORS
New Business Leads
65%
New group leads to the destination or
groups that have not been to Monterey
County for over 3 years
MCC Leads
100
Room Night Closure
35,000
Group business leads sent to the
Monterey Conference Center (MCC)
Fill Need Time Periods
Sunday-Thursday
Patterns and Holidays
Continue to utilize Group Incentive to
push groups into need time periods
Tour & Travel
Engagements
2,500
Tour and Travel/non-group client
interactions that produce business
referrals, tour operator product buys,
facilitate new tour product development,
and grow travel agent product knowledge
Group Business
Development
Executive Leads
100 – 200 each
Individualize goals by Manager
Accountability by each Business
Development Executive to meet and
exceed their goals. Increase focus on
each market and territory. Qualified leads
“Quality over Quantity”
Prospective Efforts
800
Advanced prospecting tools that will give
better data and qualifications.

Segments and Focus
Strategic plan will dig deeper into
segments. Putting resources and
partnerships in focus.

Terms
Lead: See Monterey secures
formal business opportunity
Conversion: See Monterey
works with partner to close/
finalize the sales lead
Definite Room Night: an
estimate of committed
booked room nights from a
meeting/conference
EIC – Economic Impact
Calculation – an estimate of
overall visitation spending
from a group, event, meeting
derived from industry
standard created by
Destinations International

BUSINESS DEVELOPMENT
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 45, Packet Page 47 2024-25 BUSINESS PLAN 35

SEGMENTS AND FOCUS
Group Business
Development
Strategic
Partnerships
Tour &
Travel
Client
Services
Drive qualified business
to all jurisdictions within
Monterey County.

Engage partners in client
activations and events
and incentivize need
periods.

Leverage third-party
and business meetings
industry partnerships
to extend reach, drive
new business leads,
and enhance market
presence.

Engage wholesale
distribution, tour
operators, and travel
agency networks
to grow booking
revenue and room
night production.

Maintain International
Trade Representation
to boost market
presence, focusing
on Golf, Luxury, and
Family segments with
direct selling to agents
and operators.

Expand the Client
Services team and
services to include
trending business
meeting solutions,
differentiating
our offerings and
increasing client
satisfaction.

MONTEREY
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 46, Packet Page 48 36 Business Development Team
Joe Marcy, CMP – California,
Corporate & Incentive
Lauren Siring, CMP – California
Association, SMERF & Government/
NW States/Canada
Kayce Boettcher – Southwest/
Southeast
Rick Hud – Midwest/East Coast
David Cater – Tour and Travel,
Domestic & International
Sales Activities Calendar
Monterey County
• MPI Northern CA Chapter Annual
Conference & Experience
• CalSAE ELEVATE Conference
• MPI Regional Business Exchange
• Pebble Beach Food and Wine Client Event
• Northstar Leadership Forum, Pebble Beach
• SITE Northern CA Event
Also Activating in These Markets:
• California & Southwest
• Pacific Northwest
• Texas & Southeast
• East & Midwest
• International/U.S. Territories

BUSINESS DEVELOPMENT EVENTS BY REGION
The Business Development team’s sales plan features robust activations to attract more qualified leads to Monterey County group hotels. This includes in-person activities, events, and tradeshows targeting groups from direct flight destinations and viable group markets. The plan is adaptable, responding to factors like marketing conditions and partner participation. Business Development Executives (BDEs) will travel with hotel partners globally—from San Diego to New York, Los Angeles to the United Kingdom, and beyond —to drive valuable travel.

BUSINESS DEVELOPMENT
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 47, Packet Page 49 2024-25 BUSINESS PLAN 37
See Monterey’s Luxury Collection Initiative is tied to the new TID, with a level of funding from the destination’s luxury hotels that enables a bespoke campaign targeting affluent travelers. According to a report by McKinsey & Company, demand for luxury tourism and hospitality is expected to grow faster than any other industry segment. This is driven in part by a large and expanding base of aspiring luxury travelers, many of whom are younger and increasingly willing to spend larger shares of their wealth on upscale travel options.

Monterey County is uniquely positioned to leverage the luxury and aspiring luxury audiences with its diverse Luxury Collection Initiative hotels, which offer a wide range of high-end experiences. Attracting aspiring luxury travelers is an investment – while they might not book luxury for every trip now, they are open to sampling it (and spending on it) and will do so more over time.

To capitalize on increased demand, it’s crucial to effectively communicate the variety of luxury experiences available to travelers, travel agents, and high-end tour operators.

STRATEGIC PRIORITIES

1. Rebrand Luxury Collection Initiative
• Integrate a new luxury campaign within the
brand – “Seek & Find”
• Paid media program focused on driving
visitation to luxury properties and
experiences
• New photo and video shoot

2. Increase investment in trade and
marketing partnerships
• Partner with Virtuoso, Internova and
Signature networks
• Maximize luxury travel trade and media
events
• Media partnerships with targeted outlets
and publications
• Host independent events with mix of trade
and media guests

3. Curate the Monterey County luxury
experience online
• Distinct and targeted section of the new
website
• Utilize luxury-focused influencers to extend
reach in an authentic way

4. Identify and cultivate emerging luxuryadjacent travelers • Highlight high-end special occasion
opportunities and experiences
• Collaborate with luxury consortium
partners to ladder up luxury-adjacent
audience
Global Spending on Luxury
Leisure Hospitality, by Wealth
Segment
(in $Billions)
Source: Capgemini; Credit Suisse; Knight Frank; Wealth-X; McKinsey analysis Total Market: 239
2023
Total Market: 391
2028 (projected)
Aspiring Luxury
High Net Worth
Very High Net Worth
Ultra High Net Worth 37
38 80
84 57
73 154
107
14%
14%
14%
9%

LUXURY COLLECTION INITIATIVE
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 48, Packet Page 50 38 One of the top priorities for this fiscal year is positioning Monterey County in a bigger way to accelerate the return of international travel. International travelers are among the most lucrative and sought after, making them a key focus as they continue to return to the U.S. and to California. While challenges such as visa backlogs from China and the strength of the dollar present hurdles, See Monterey is committed to maximizing economic benefits from this market as it recovers.

The 2024 Visitor Profile Study shows a significant drop in international visitation to Monterey County from approximately 13% pre-pandemic to just 7%. It is crucial to strengthen See Monterey’s presence in key international markets now to gain back lost market share in the future. Doing so ensures Monterey County will be at the top of international travelers’ lists when the state achieves full recovery.

Market Strategy and Key Tactics
CORE

MARKETS
United Kingdom • Maintain Travel Trade and PR representation • Direct-to-consumer advertising via co-ops and
partnerships
• In-market programs throughout the year
• Proactive media and trade FAM hosting
Canada
Mexico
• Travel Trade and PR support on a project basis
• Direct-to-consumer advertising via co-ops and
partnerships
• In-market programs throughout the year
• Proactive media and trade FAM hosting

OPPORTUNITY

MARKETS
Asia (China,
Korea, Japan)
Western Europe
(Germany,
France, Italy)
• Opportunistic approach participating in Brand USA
and Visit California events and co-ops
• FAM hosting on reactive basis
107
$0 $1K $2K $3K
Overseas
Domestic Fly
Domestic Drive
$2,799
$1,364
$959
As Wayne Gretzky famously
said, “Skate to where the
puck is going to be, not
where it has been.”
For See Monterey,
this means positioning the
destination strategically to
capitalize on the resurgence
of international travel.

Trip Spending by Visitor Type

INTERNATIONAL STRATEGY
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 49, Packet Page 51 2024-25 BUSINESS PLAN 39
Monterey County tourism economy’s greatest asset are its vibrant businesses, dedicated hospitality workers, and the wider community that bring the destination’s inspiring experiences to life for travelers.

The Community Relations team plays a crucial role as a catalyst and connector, focusing on engaging with businesses to elevate visitor experiences and drive economic vitality.

The membership program and workshops are designed to strengthen engagement, provide essential business skills, and align efforts for collective success. By leveraging strategic partnerships, maintaining regular communication, and hosting community forums, See Monterey aims to foster collaboration and highlight the positive impact of tourism on community well-being and quality of life.

Through these initiatives, the Community Relations team strives to enhance the tourism experience while supporting the growth and sustainability of the local community.

STRATEGIC PRIORITIES

1. Strengthen Community Connectivity
• Collaborate with community partners and
associations
• Develop material to show community
benefit
• Use public forums to remind the community
of the mission and vision and to report on
activities

2. Grow Membership
• Create new member benefits material
• Utilize partnerships to spread the word
• Door-to-door outreach in targeted areas

3. Increase Hospitality Business
Engagement
• Continued virtual Meet-a-Member
program, member visits, Wayfinding
Destination Education Series, and Team
FAMs
• Open House to welcome community and
industry
• Pulse checks and surveys to hear from
members

4. Optimize Destination Services
• Maintain visitor response times, develop
visitor resources as necessary
• Further develop See Monterey app and
promote usage
• Collaborate with local chambers to drive
digital content

COMMUNITY RELATIONS

SALINAS
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 50, Packet Page 52 40 GOALS & KPIs
Goals
Grow Hospitality Business Membership 5% over FY2023-24
Educate On How Tourism Matters Create collateral with key economic drivers of tourism
New Members 100
Host Member Workshops To In-crease
Engagement
3 Grow Member Attendance At Hosted Events 5% over FY023-24 Presentations At Key Community Events To
Grow Awareness
100
Make the Most of Your See Monterey Membership
See Monterey’s membership program provides local businesses with exclusive opportunities to collaborate, gain visibility, and actively participate in promoting both their business and the destination. Many hospitality businesses are small, owner-operated and without sales and marketing capabilities. Thanks to jurisdiction investments, membership is FREE for all Monterey County hospitality-related businesses.

Membership Benefits Include:
• Visibility: Presence on SeeMonterey.com and the See Monterey app • Promotion: Highlighting of events and specials
• Marketing Opportunities: Participation in co-ops, inclusion in blogs, social media, press releases, and media pitching
• Sales Opportunities: Engagement in trade shows and missions, referrals to meeting planners, and handling service requests from groups
• Engagement: Access to Virtual Meet-a-Members events and Member Visits • Education: Workshops on sales and marketing strategies

COMMUNITY RELATIONS
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 51, Packet Page 53 2024-25 BUSINESS PLAN 41
The backbone of See Monterey consists of Financial Management, Human Resources, Operations, and Governance Administration. Together, this group functions as a service department within a sales and marketing organization. The transformation of the organization’s systems and processes initiated last year will accelerate this year.

KEY AREAS OF FOCUS
• Fostering Culture: Creating a safe, healthy, harmonious, positive, and productive work environment that is inclusive and attracts and retains top talent.
• Transforming Systems and Processes: Empowering the team with self-service and digital capabilities in finance and human resources that are efficient, transparent, accountable, and sustainable.

Finance and Operations
• Implement browser-based accounting, expense
reporting, and accounts payable systems with
digital controls and approval processes. These
enhancements will provide real-time information,
reduce payables processing time, and improve
cash flow analysis and financial forecasting.
• Maintain organizational insurance, equipment,
and supplies to meet the needs of the team.

Human Resources
• Develop and maintain strategic partnerships
that support organizational culture and provide
critical internal function backups.
• Implement new payroll, expense reimbursement,
and performance management systems to
achieve time efficiencies and cost savings.
• Elevate talent acquisition and intentional
retention programs to foster growth and career
transitions.
• Ensure that all team members feel welcome and
have equal opportunities to connect, belong, and
grow.

Governance and Administration
• Provide administrative leadership and support
to the Board of Directors and eight Committees,
adhering to best practices and ensuring
compliance with the Brown Act and other
relevant laws and guiding principles for non-profit
organizations.
• Administer and track diversity, equity, and
inclusion programs that demonstrate the
organization’s commitment to these principles.

FINANCE, OPERATIONS, HR & ADMINISTRATION
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 52, Packet Page 54 42 2022 – 2024 ARPA MARKETING PROGRAMS
The COVID-19 pandemic severely impacted Monterey County’s tourism economy, and its effects are still felt today.

The County of Monterey Board of Supervisors awarded See Monterey $1.8 million for tourism recovery programs from 2022 to 2024, with the FY2024-25 plan covering the final six months.

See Monterey’s ARPA program expands existing strategies and introduces new tactics, guided by six key pillars.

Key Pillars Strategy
Countywide Advertising Boost advertising and PR, especially in fly and extended markets, with a focus on the off-season.

Wine Country Promotion Partner with MCVGA to promote wine country through media, sponsorships, events, and website redevelopment.

Agritourism & Heritage Promotion Enhance and promote existing agritourism programs and products, develop new initiatives, and focus on ag-centric marketing promotions.

Meetings & Conference, and Events Increase advertising and PR for events, participate in tradeshows, and create an incentive fund to attract groups and special events.

Sustainable/Eco Tourism Strengthen sustainable travel initiatives, promote responsible tourism, and develop local partnerships.

Air Service Promotion Advertise and promote to attract new airlift to MRY and increase visibility in current direct service markets.

Major 2024 ARPA Initiatives
• Responsible Travel Billboards throughout
the Bay Area
• Activation at U.S. Travel’s IPW, the
world’s largest tradeshow for national and
international travel buyers
• New Minneapolis/St. Paul flight launch
advertising and PR campaign, including
wrapped train cars on Minneapolis’ METRO
light rail system and a meeting planner FAM
trip
• Atlas Obscura media partnership “Discover
the Surprising and Hidden History of
Monterey County”
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 53, Packet Page 55 SEASIDE 2024-25 BUSINESS PLAN 43
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 54, Packet Page 56 SEEMONTEREY.COM

MOSS LANDING
ATTACHMENT 2
Council Special Meeting, 4/30/2025, Item No. 1, Item Page 55, Packet Page 57 Council
Agenda Report
№11/25
FROM: Rafaela T. King, Finance Director
Prepared By: Kyle Olsen, Finance Analyst
SUBJECT: Fiscal Year 2025-26 Budget Primer Study Session (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) RECOMMENDATION:

That the City Council receive a primer on the Fiscal
Year (FY) 2025-26 Budget.

VALUE DRIVERS:

POLICY IMPLICATIONS:

This request is consistent with City Charter Section

6.3, Budget: “Based on the recommendation of the
City Manager, the City Council shall adopt a budget
estimating the revenues and expenditures for the
City for the period covered.” This is a first look at the overall projected financial position for FY 2025-26 for Council consideration and feedback.

CAMPAIGN DISCLOSURE REQUIREMENT
(LEVINE ACT) APPLIES: No.

FISCAL IMPLICATIONS:

There is no cost to present this update. The purpose
of this update is for City staff to inform City Council on the current projection for the FY 2025-26 budget,
and receive their input and additional direction.

The following tables present the projected revenues
and expenses for various City funds.

Agenda Report Highlights
 Fiscal Year 2025-26 Budget
Overview: This report introduces the
projected revenues, expenses, and
financial position for FY 2025-26,
highlighting a structural deficit in the
General Fund.
 Structural Deficit and Rising Costs:

The City faces a nearly $10M structural
deficit due to expenses outpacing
revenue growth. Key contributors
include rising salaries, benefits, health
insurance, liability insurance, and
worker’s compensation costs.
 Revenue and Expense Projections:

The report outlines projected revenues
and expenses across various funds
(General Fund, Special Revenue
Funds, Enterprise Funds, and Internal
Service Funds) and highlights a
modest revenue growth of 4% for FY
2025-26.
 Strategies to Address the Deficit:

The City is using various strategies to
close the budget gap, including salary
savings, temporarily freezing positions,
reducing some reserve contributions,
reallocating expenses to other funds,
cutting departmental budgets, and
suspending General Fund contributions
to the Capital Improvement Program.
 Historical Budget Performance: The
report reviews the City’s budget
performance in prior years, showing
consistent underspending and the
revenue exceeding projections.

Date: 4/30/2025
Item No.: 2
Council Special Meeting, 4/30/2025, Item No. 2, Item Page 1, Packet Page 58 №10/24
General Fund:

Projected Revenues Projected Expenses
General Fund $109,521,024 $121,267,983
Fund 105 $319,639 $280,000
Total General Fund $109,840,693 $121,547,983
The revenues and expenses for the Enterprise funds, selected Special Revenue funds, and Internal Service Funds are shown in the discussion section of this report.

Special Revenue Funds (does not include Capital Improvement Program [CIP] or Neighborhood Improvement Program [NCIP] funding]:

Projected Revenues Projected Expenses
Measure P & S* $12,391,265 -
Tidelands $3,998,686 $2,844,540
NCIP $6,100,581 $384,393
Presidio $29,766,472 $28,554,060
*Measure P & S does not have any operating expenses; all funding supports CIP.

Enterprise Funds (does not include CIP or NCIP funding):

Projected Revenues Projected Expenses
Parking $12,959,571 $9,779,902
Sewer $3,013,325 $3,200,087
Marina $4,072,860 $2,540,671
Cemetery $298,000 $783,912
Internal Service Funds:

Projected Revenues Projected Expenses
Technology $8,144,904 $8,144,904
Liability $5,306,004 $5,306,004
Workers Comp $3,705,542 $3,705,542
Benefits $11,215,809 $11,215,809
Vehicle Replacement $2,496,909 $2,135,921
Vehicle Maintenance $3,212,386 $3,212,386
ENVIRONMENTAL DETERMINATION:

The City of Monterey determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA)(CCR, Title 14, Chapter 3 (“CEQA Guidelines”), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not Council Special Meeting, 4/30/2025, Item No. 2, Item Page 2, Packet Page 59 №10/24
subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

ALTERNATIVES CONSIDERED:

The City Council could elect not to receive a budget primer; however, this is not recommended.

DISCUSSION:

In February 2025, City staff started the process of preparing the annual budget for FY 2025-26.

As part of this process, department heads were asked to estimate revenue and expenditures from their departmental programs. For the FY 2025-26 budget cycle, staff set the FY 2024-25 Council adopted budget as the base and departments submitted budget requests to adjust budget levels for the needs of the new fiscal year. Initially, staff did not provide any specific guidance around increases or decreases, but instead requested that departments review prior year actuals, current year-to-date spending and known upcoming changes to estimate future needs.

Beginning Financial Position
Performance from FY24
As reported to City Council in February, 2025 during staff’s presentation regarding FY 2025 midyear adjustments, the City concluded the FY 2024 fiscal year under budgeted projections.

Overall, the City spent 94.3% of the General Fund’s budgeted expenditures, equaling $5.8M under the budget. Of note:
 Salaries and benefits finished the year at 95.7%, equaling approximately $3.1M under projected expenditures.
 Services and supplies finished the year at 87.4%, equaling approximately $2.2M under projected expenditures.
 Equipment outlay finished the year at 66.4%, equaling approximately $380K under projected expenditures.

Additionally, the City’s revenues exceeded initial projections in FY 2023-24. The General Fund revenue finished at 104% of budget, equaling $3.9M above budgeted projections. While some areas of the City’s revenues came in slightly lower than projected, the City’s five key revenue sources met or exceeded expectations. Of note:
 Property Taxes came in at 102.5%, equaling $370K above projected revenues.  Business License came in at 118.0%, equaling $731K above projected revenues  Fees and Charges came in at 106.7%, equaling $1.2M above projected revenues  Transient Occupancy Taxes came in at 97.9%, equaling $627K below projected revenues
 Sales Tax came in at 95.5%, equaling 233K below projected revenues Additionally, the City’s investments produced very sound returns.

In FY 2023-24, the City exceeded interest revenue by 415% ($2.8M) of projections completed at the beginning of the fiscal year.

Council Special Meeting, 4/30/2025, Item No. 2, Item Page 3, Packet Page 60 №10/24
Overall, the FY 2024 year-end status of the General Fund (under expenditures, above revenue projection) is a net positive for the City. However, the City’s Finance Team anticipated this surplus and it was already included in the City’s FY 2025 financial plans. At the end of FY 2024, the City reported an unassigned fund balance of approximately $8M.

Year to Date Performance for FY25
To date, ending March 31, 2025, the City has expended 71% of the City’s General Fund budget.

Overall, this is on target for the City and the City is projecting modest savings at the end of the year (see below). By category, the City has expended the following amounts:

Account Classification FY 2025
Amended Budget
FY 2025 YTD
(as of 3/31/2025)*
Percent
Spent
Salaries/Benefits $82,007,483 $58,064,724 70.8%
Services/Supplies $19,288,930 $13,866,979 71.9%
Services/Supplies Including
Internal Service Charges $274,310 $136,880 49.9%
Equipment Outlay $916,827 $716,359 75.5%
Internal Service Charges $11,100,835 $7,974,072 71.8%
Services/Supplies HPM
Division $180,952 $0 0%
TOTAL $113,769,338 $80,762,015 71%
*Including encumbrances
Regarding revenue, as of March 31, 2025 the City has collected 67.5% of projected revenue.

This is on target for the City for this point in the year as there are many end-of-year payments the City receives. By category the City has received the following:

Account Classification FY 2025
Amended Budget
FY 2025 YTD
(as of 3/31/2025)*
Percent
Spent
Property Taxes $15,795,810 $8,906,679 56.4%
Sales Tax $15,748,711 $9,173,149 58.2%
Transient Occupancy Taxes $30,250,000 $20,353,300 67.3% Business License $4,800,000 $4,721,419 98.4%
Utility Users Taxes $4,997,218 $3,515,678 70.4%
Franchise Fees $2,765,500 $971,320 35.1%
Other Taxes $528,214 $307,812 58.3%
Licenses & Permits $2,015,320 $1,998,012 99.1%
Fines & Forfeitures $257,000 $275,479 107.2%
Intergovernmental $4,245,217 $1,310,653 30.9%
Interest $1,630,947 $1,825,077 111.9%
Rents $2,828,329 $1,846,451 65.3%
Fees & Charges $20,841,814 $16,672,529 80.0%
Other Revenues $1,319,862 $1,046,699 79.3%
TOTAL $108,023,941 $72,924,259 67.5%
Council Special Meeting, 4/30/2025, Item No. 2, Item Page 4, Packet Page 61 №10/24
Estimated Year End
Looking to the year-end, the City is projecting savings in the General Fund as well as an increase in revenue from FY 2024. In total, the City is projecting a net positive position of approximately $7.2M between expenditures and revenue. The City is projecting approximately $5.4M in savings from FY 2025 and exceeding revenue projections by $1.7M. However, the City will also contribute $6.5M to its reserves this fiscal year, absorbing much of these “savings”.

This is a more detailed breakdown of the City’s end-of-year expectation:

Projected Revenue Overage: $1,760,000
Projected Savings: $5,400,000
of which, Salary and Benefits $3,600,000
of which, Services and Supplies $1,800,000
Total Savings/Overages: $7,160,000
Less Reserve Contributions $6,530,807
Projected Net Total: Projected
Carryover/ Unassigned Fund Balance
$629,193
Additionally, any savings or overage from FY 2024-25 will be utilized to balance the City’s FY 2026 budget, which is starting in a structural deficit. The above amount should not be viewed as any sort of windfall or “bonus” for the City.

Historical Budget vs. Actual
 Expenses including mid-year adjustments
o FY 22-23 Amended Budget $96.3M, Actual spent $89.1M, 7.46% below o FY 23-24 Amended Budget $101.3M, Actual spent $95.6M, 5.73% below o FY 24-25 Amended Budget $115.M, Actual spent YTD $80.7, on target  Revenues including mid-year adjustments
o FY 22-23 Amended Budget $93.5M, Actual received $98.5M, 5.35% above o FY 23-24 Amended Budget $100.5M, Actual received $104.4M, 3.88% above o FY 24-25 Amended Budget $107.7M, Actual received YTD $72.9M, on target Revenue 25-26
The City continues to have consistent revenues; however, in terms of growth, the City is expecting a modest increase of about 4%, in line with the area’s consumer price index. While the steady income for the City is positive, the City’s expenditure growth continues to outpace revenues. For FY 2026 the City is projecting a total of $109,840,663 (3.71% above the FY 2025 adopted budget).

Other Expenses 25-26
Transfers In/Out
In FY 2026, a total of $636,936 will be transferred out of the General Fund and a total of $756,039 will be transferred into the fund for a net positive transfer in/out of $119,103. A tentative transfer in/out schedule for the general fund is below:

Council Special Meeting, 4/30/2025, Item No. 2, Item Page 5, Packet Page 62 №10/24
Transfer Out To Fund Amount
Conference Center Loan 310 -Debt Service Fund $546,936
PERS Replacement Benefit 710 - Emp. Benefits Fund $90,000 Total Transfer Out $636,936
Transfer In From Fund Amount
Police Department Domestic
Violence Position
249 – State Grant Fund $100,000
Signal Maintenance 251 – Gas Tax Fund $6,000
Cleaning/Traffic Engineering 625 – Parking Fund $342,025 Parks/Streets Maintenance 807 – Tidelands Fund $258,014 Park Maintenance 821 – Scholze Park Maint. Fund $25,000 Park Maintenance 822 – Scholze Park Maint. Fund $25,000 Total Transfer In $756,039
Debt Service
In FY 2026, the City will pay a total of $6,6018,000 in principal and interest to pay down its external and inter-fund loans (advances). Of note on the City’s debt schedule is the purchase of three fire trucks that will be paid off in 2029. The City began making payments on these trucks in FY 2025 and in FY 2026, the Finance Department initiated the process of the General Fund repaying the Vehicle Replacement fund (seen in the inter-fund loan summary) for the purchase of the fire trucks. Payments will be made between the two funds for the next seven year.

FY 2025-26 INTER-FUND LOAN SUMMARY (Advance To/From Funds) Loan REPAYMENT FROM
FY 2026 PAYMENT
(PRINCIPAL AND

INTEREST)
Fire Truck Debt Service 101 - General Fund $17,825
Fire Truck Loan #1 101 - General Fund $141,000
Fire Truck Loan #2 101 - General Fund $245,624
Fire Truck Loan #3 101 - General Fund $163,406
Settlement Funding 716 - Liab. and Prop. Ins. Fund $220,000 Cemetery Columbarium 610 - Cemetery Fund $100,000
Interfund Loan Total $887,856
FY 2025-26 EXTERNAL LOAN SUMMARY (Principal & Interest) Loan REPAYMENT FROM
FY 2026 PAYMENT
(PRINCIPAL AND

INTEREST)
2013 Financing Agreement 310 - Debt Service Fund $546,936 2017 PG&E Financing Loan 101 - General Fund $9,704
Fire Truck Loan #1 705 - Equipment Replacement $80,240
Fire Truck Loan #2 705 - Equipment Replacement $305,709 Council Special Meeting, 4/30/2025, Item No. 2, Item Page 6, Packet Page 63 №10/24
Fire Truck Loan #3 705 - Equipment Replacement $222,949 Conference Center Bond 918 - Conf. Center Facilties Dist. $3,678,327 Sewer Loan #110 279 - Sewerline Maint. Fund $215,796
Sewer Loan #120 279 - Sewerline Maint. Fund $670,583
External Loan Total $5,730,244
Grand Total $6,618,100
Structural Deficit
The General Fund is currently facing a structural deficit of nearly $10M for the 2025-26 fiscal year. This means the current revenue is not enough to cover the current expenses. This has been an ongoing issue and continues to grow each year as the growth in expenses outpaces the growth in revenue.

Rising Costs – Contributing factors
 Salaries & Benefits – labor contracts
o Current labor contract. Starts year 2 of a 3 year contract with 4% increase each year for all bargaining groups.
o Market rate adjustments were negotiated to bring a majority of staff within the market for their positions in comparison to surrounding cities in an effort to work toward the value driver of developing and retaining a quality workforce, in line with the strategic priority of providing fair, competitive, and market-rate compensation and benefits to employees through effective labor negotiations. o Prior contract was also 4% increase for two years
o For the past 3 years and next two years, city staff has received a 4% salary increase each year
o Cost of health insurance and other benefits continues to rise. Health insurance costs are out of City’s control. Other benefits are typically negotiated as part of labor contracts.
 Insurance
o Cost of City’s liability insurance has increased each year. o Cost has increased from $850K in FY19-20 to $2.6M in FY24-25, over a 300% increase. A further increase of approximately 25% is expected for FY 25-26 making the estimated cost of insurance for FY26 just over $3M. o As insurance companies are moving out of California markets, the cost of insurance will continue to rise at an estimated 23% per year. o In addition, in FY19-20 prior to COVID, the cost of worker’s compensation insurance, which is based on payroll, was $395K per year. Due to the effects of COVID and the reduction of the labor force, that number went to $262K in FY22.

With the restoration of the City’s workforce and increased salaries and benefits, the increase in worker’s compensation insurance has risen each year to surpass the FY20 amount to $407K in the current fiscal year with the expectation of the cost for the FY25-26 year to be $511K.

Council Special Meeting, 4/30/2025, Item No. 2, Item Page 7, Packet Page 64 №10/24
Closing the Gap
 Restructuring expenses to reserves where possible.
o The City in recent years has invested in directing resources into reserve accounts in an effort to accumulate enough resources to address major and costly deferred maintenance on many of the City’s infrastructure. Some projects were diverted to use funding from the saved funds in the reserve accounts as opposed to allocating current resources in an effort to divert those funds to cover other expenses.
 Salary savings projected and strategic vacancy management. o For many reasons, inclusive of hard-to-fill positions and attrition, the City annually recognizes salary savings. During the budget cycle, a modest percentage of those expected savings is used to balance the budget. For the 2025-26 fiscal year, the City plans to rely on salary savings, applying a higher vacancy rate than usual to assist in balancing the budget. In addition to using a higher vacancy rate, the City is considering temporarily freezing positions that have been vacant for a year or greater, among other options.
o The City has critical recruitment needs for core services such as public safety.

Therefore, recruitment efforts for essential roles, like Police Officers, Firefighters, and Engineering Staff will continue despite challenges. These positions are crucial for public safety and infrastructure. We anticipate a period during which these difficult-to-fill positions will remain unfilled, resulting in necessary salary savings.
o Human Resources will meet with affected bargaining groups to meet to discuss the potential impacts of a hiring freeze.
 All departments were asked to provide a 7% cut to General Fund Operations & Maintenance (O&M) accounts. The total savings amounted to $1,232,546. This was not an easy task, as: (1) several departments already run a lean shop, and (2) cutting O&M sometimes means cutting the level of service that can be provided.  Departments that generate revenue were able to reassess their original projections and increased their projections by $131,900.
 Interfund loans are being considered for both long-term and temporary solutions.  Reducing Reserve Fund contributions. Consideration is being made to reduce the contributions to the City’s reserves accounts by 50% for the 2024-25 and 2025-26 fiscal years. An exception to this is the Reserve for the Economic Uncertainty Account which will retain its contributions to maintain the level of 20% of operating budget contribution.

This decrease in reserve contribution amounts to a reduction of $4,135,000, which goes back into available for appropriation balance.
 Shifting expenses to Other Funds where allowable and proper. A closer look was taken to evaluate some personnel costs that were charged to the general fund where the duties were split between funds. Steps were taken to reallocate those percentages to the respective funds. Other costs that could be easily absorbed in other funds were also reallocated. In some cases, interfund loans are being considered to temporarily relieve pressure from the general fund until a more permanent solution can be reached. While these are great tools for the moment, we caution about using this practice as to not permanently shift more expenses to other funds and diluting that fund while still not addressing the main problem, a structural deficit within the general fund.  Suspension of General Fund contributions to CIP for the 2025-26 fiscal year. There are currently multiple ongoing projects with several different available funding sources.

While the contribution of $2.5M to the CIP program may appear to put a damper on the projects, it also allows time for the general fund to address the deficit issue, true Council Special Meeting, 4/30/2025, Item No. 2, Item Page 8, Packet Page 65 №10/24
financing options to be researched and considered, and the completion of current projects which have already funding allocated.

Summary
With the many tools employed by the budget team, we are presenting a first-look draft of the balanced budget. The Budget team continues to work on finalizing the numbers in the General Fund as well as all remaining funds. We welcome any input, comments, suggestions and questions.

RTK/ko
Writings distributed for discussion or consideration on this matter within 72 hours prior to the meeting, pursuant to Government Code § 54957.5, will be made available at the following link:
https://monterey.gov/Submitted-Comments
Council Special Meeting, 4/30/2025, Item No. 2, Item Page 9, Packet Page 66

Monterey City CouncilApril 30, 2025

Monterey City Council
April 30, 2025