City of Pacific Grove, California
Fund Numbers and Descriptions
General and Capital Project Funds
General Fund - Accounts for funds not accounted for and reported in another fund, including the following subfunds:
General Fund (01) Asset Seizure (22) Operating Donations (31) Small Business Assistance (48) Civic Center (14) Stillwell Children’s Pool (24) Vehicle Replacement (32) Reiko Koo Estate Donation (93) Drug Awareness (21) Youth Center Donation (25) Storm Water (44) Capital Projects (63) - Accounts for capital projects funded fully or in part by discretionary General Fund revenues.
Enterprise Funds
Cemetery (75) - Accounts for revenue from El Carmelo Cemetery site sales and the Little Chapel lease.
Local Water Project (74) - Accounts for the reclamation plant’s operation, treatment, and sale of recycled water.
Sewer (76,78) - Accounts for the City's sewer operations and maintenance (76) and provides funds for sewer lateral loans (78).
Golf Course (77) - Accounts for the concessionaire leases for the golf course, property improvement costs, and debt service.
Internal Service Funds
Employee Benefit (70) - Accumulates contributions from departments to pay for a variety of employee benefit costs.
Workers' Compensation (71) – Accumulates contributions from departments to pay for premiums, claims and administrative costs.
Liability Insurance (72) – Accumulates contributions from departments for claims, legal costs, and insurance premiums.
Trust (Permanent) Funds
Library (85) - Retains donations and bequeaths for the benefit of Library materials and collections.
Cemetery (86) - Accounts for perpetual expenses; and preservation of burial sites, grounds, paths, roadways and structures.
Yount (90) - Supports beautification of the City and minor improvements to education or recreational facilities.
Other Funds
Library / Poetry (7,11,40) – Accounts for funds to support the promotion of poetry and library improvements and equipment.
Museum (8) – Accounts for donations designated for improvements to the City’s museum of natural history.
Public Safety (12,42-45) – Accounts for funds in support of fire and police safety programs, SRO and 911 services and equipment.
Housing (15,28,36) – Accounts for affordable housing activities for residents and seniors and supports loans for affordable housing.
Streets (17-20,47) – Accounts for Gas and RMRA taxes, Measure X, and other grant funds for street maintenance and improvements.
Lighthouse (27) – Supports the operation at the Point Pinos Lighthouse including staffing, supplies, maintenance and improvements.
Community Development/CDBG (5,34,55) – Accounts for Community Development Block Grants and other department activities.
ARPA (84) – Accounts for funds received and expenditures from the American Rescue Plan Act provided by the federal government.
Downtown/Hospitality Districts (9-10) – Funds support the Chamber of Commerce and Convention/Visitor’s Bureau operations.
Cable Franchise / Other (6, Other) – Funds programming on public access television (PEG) and other donations and grants, including:
ASBS Grant (79) Yount Income (41) Chautauqua Hall (26) Coastal Conservancy Grant (69) Strong Disbursements (46) Mcindoo Donation (92) Operating Grants (30) Carillon Fund (03)
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Information related to major revenues categories is provided within this section. All graphs are in millions.
Property Taxes
Property tax revenues are received in December and April, with a minor amount in June. Proposition 13 sets FY 75-76 assessed values as the base year, with a growth rate limited to 2% for future years. The County Assessor also reappraises each real property parcel when there are purchases, construction, or other statutorily defined changes in ownership. Proposition 13 limits the property tax to 1% of each property’s full value, plus additional percentages for voter approved indebtedness. The City receives approximately sixteen cents of every dollar of property tax. Variations can result from timing differences, changes in assessed valuations, new developments and property sales during the year.
Sales Tax
Voters approved Measure A, a new 0.50% transaction and use tax. This increased the combined sales tax rate to 9.25% in October 2022. The General Fund portion of the City sales tax is comprised of a 1% Bradley-Burns statutory sales tax rate; and Measure U, a 1% transaction and use tax that was approved by voters in 2008. Restaurants and Hotels are the largest providers of sales tax to the City, followed by businesses in the building and construction category and from the County/State sales tax pool. Variances can occur annually resulting from timing differences, changes in car sales and online purchases, the two largest categories of its use tax, and from variances in tourism in the area.
Transient Occupancy Tax (TOT)
TOT is a lodging tax received on a monthly basis that is collected on overnight rental accommodation stays of 30 consecutive days or less. In 2010, the City updated its municipal code and began collecting TOT on residential or short-term rental properties (STRS). In Fiscal Year 17/18, the City approved an ordinance to reduce the number of short-term rentals, effective April 30, 2019. A one-time lottery was also conducted that eliminated 51 STR licenses to meet the ordinance’s new density requirements. In November of 2018 voters approved Measure U, increasing the TOT rate to 12%. This increased tax was partially offset by Measure M, eliminating STRs outside of the Coastal and Commercial zones. Variances can be affected by timing differences and changes in room and hotel occupancy rates.
Other Taxes
The City imposes a utility users’ tax on residents and businesses that utilize water, gas, electricity, telephone, and cable services. This tax is assessed at a rate of 5% of the amount charged by the utility; and it is paid by the person consuming the service. The amount of revenues received is affected by timing differences and updates to the underlying rate structures or new development projects.
The City grants franchises to utilities to construct, maintain, lay infrastructure, or operate transportation on or over streets, alleys, lanes, or other public places within the City. New franchises or their renewal are levied a tax of at least 2% of gross annual receipts from franchises within the City.
The City charges a business license tax on entities doing business within the City. The tax rate is based upon gross receipts of the previous calendar year, with a minimum annual tax of $15 and a maximum of $3,000. The tax is payable on July 31st of each year along with a business improvement district assessment of 35% of the tax. The amounts can vary annually due to timing differences and periodic external audits and changes in business activity.
City of Pacific Grove
General Fund Revenue Overview
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Note that expenditures for most operating departments include amounts budgeted for personnel costs, including allocations for payment of the City’s unfunded pension liability, meeting and travel costs (except the City Attorney, Fire and Museum departments, operated on a contract basis), and internal service charges for support provided by other departments. In addition, most departments include allocations for utilities and contracted professional services. The departments’ budgets also include the following, with the overall variances for the departments being related to changes from year to year in costs incurred for these items and the items previously noted:
General Fund
City Council – Includes annual association memberships
City Attorney – Includes the legal retainer and contract legal services City Manager – Includes economic development and human resources programs and consultants Administrative Services – Includes contracted technology services, bank fees, leases for equipment and cloud based services, communication / phone services, software licenses, computer equipment / support and repairs Community Development – Includes contracted building, planning and dept legal professional services, bank fees, advertising for bidding, leases for equipment and cloud based services and software licenses Police – Includes dept legal services, communication / phone services, bank fees, safety and computer equipment / support, vehicle fuel and dept related debt service payments and fund transfers Fire – Includes contracted fire services, repairs, fire prevention services and dept related debt service / transfers Library – Includes new library books, leases for equipment and cloud based services and building repairs Museum – Includes the operation of the museum and building repairs Public Works – Includes maintenance of buildings, equipment, grounds and trees, street cleaning, maintenance of the fleet, leases for equipment and cloud based services, supplies and services and communication charges Recreation - Includes bank fees, advertising for recreation programs, building repair and operating supplies Enterprise / Internal Service Funds
Local Water Project – Funds equipment and its debt service payments. This fund may exceed budget by year end due to higher than expected utility costs
Cemetery – Includes its staffing and for operating supplies Sewer– Funds maintenance, equipment and vehicle repairs, equipment, supplies, capital and debt service Golf – Includes operations, improvements and for its debt service.
Employee Benefit – Includes contributions for various employee benefits Worker’s Compensation / Liability Insurance – Funds claims, administration and insurance premiums See additional details on capital expenditures for these funds in the City’s separate quarterly capital project report.
Other Funds
Several of the City’s funds will require mid-year adjustments due to the carryover of several capital projects from Fiscal Year 2023-24 to Fiscal Year 2024-25, as shown in detail on the City’s separate quarterly capital project report.
These include the following funds:
Museum (Fund 08) • Lighthouse (Fund 27)
Local Streets / Roads (Fund 17) • Road Maintenance RMRA (Fund 47) ARPA (Fund 84) • General Fund Capital Projects (Fund 63) RSTP / TAMC Transportation (Fund 20) • Sewer (Fund 76) City of Pacific Grove
Departmental Expenditure Overview / Variance Analysis
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ORDINANCE NO. 25-xxx
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PACIFIC GROVE
AMENDING THE OPERATING AND CAPITAL PROJECTS BUDGET FOR THE FISCAL YEAR (FY) 2024-25
FACTS
1. The City Council approved the Fiscal Year 2024-25 Budget on June 19, 2024.
2. It is customary to amend the budget to adjust revenues and expenditures to reflect updated information since the adoption of the Fiscal Year 2024-25 Budget.
3. The City Manager is recommending amendments to the Fiscal Year 2024-25 Budget to reflect the City Council goals for the fiscal year budget and carryforward of capital projects from prior fiscal years.
4. The Council has determined it is appropriate to amend the approved budget for FY 2024-25.
5. Pursuant to Charter Article 156, an amendment of the budget must be approved by ordinance.
6. A summary of the Ordinance, approved by the City Attorney, was published on .
7. In the enactment of this ordinance, the City followed the guidelines adopted by the State of California and published in the California Code of Regulations, Title 14, Section 15000, et seq.
8. Enactment of this ordinance action does not constitute a “project” as defined by California Environmental Quality Act (CEQA) Guidelines Section 15378 because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment.
NOW, THEREFORE, THE COUNCIL OF THE CITY OF PACIFIC GROVE DOES ORDAIN AS FOLLOWS:
SECTION 1. The foregoing facts are adopted as findings of the City Council as set forth fully within the body of this ordinance.
SECTION 2: The expenditure budget for the General Fund is amended for the items listed below.
Which by reference are incorporated as set forth in its entirety.
Proposed Budget Adjustment Department Amount
Building Contract Services Building $300,000
Increase Admin Analyst from .75 FTE to 1 FTE Library 25,000 Replacement of Police Car Police 85,000
ADA Assessment Completion Public Works 40,000
Emergency Storm Water Repair 4th and Central Public Works 50,000 Chautauqua Hall Historic Federal Register Public Works 20,000 Elevator Repairs at Youth Center Public Works 123,500 Facility Assessments Public Works 37,000
Replacement of Pool Heater Public Works 10,000
Sentry Alarm 5 year inspections Public Works 19,500 Additional Part-Time Staffing Costs (Net) Recreation 60,000 Total Proposed Additional Adjustments $770,000
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SECTION 3: The expenditure budgets for funds other than the General Fund is amended for the items listed below. Which by reference are incorporated as set forth in its entirety.
Project Number / Name Funds Rollover
CIP 23-03 / Cedar, Sunset, Congress 20 $650,856
CIP 24-06 / Design of Sidewalk extension 63 9,736 CIP18-46 / Tide Pool Pt. Pinos 63 9,781
CIP22-03 / Phase 9 Sewer Improvements 76 279,854
CIP22-13 / Ballpark Backstop Replacement 93 / 63 7,939 CIP22-21 / George Washington Park Playground 63 / 84 106,801 CIP23-04 / David Ave Street Rehabilitation 17/76 407,490 CIP23-05 / Lighthouse Roof Repair 27 57,950
CIP23-06 / Pump Station Replacement 76 22,904
CIP23-07 / Mezzanine upgrades 8 75,000
CIP23-08 / Basement moisture control 8 38,800
CIP23-10 / Fire station roof 84 16,574
CIP23-12 / FD bathroom & showers 84 152,914
CIP23-21 / David Ave. sidewalk 84 596,645
CIP23-22 / Rec Board park inventory 84 15,000
CIP24-01 / FY 23-24 Street Rehabilitation 17/47/63/76 1,820,315 CIP24-02/ 23/24 Crack & Slurry 17 / 84 40,349
CIP24-03 / Priority Stormwater Repair 63 95,923
CIP24-04 / Sewer Collection System Master 76 1,757,604
CIP24-05 / George Washington Park Enhancement 63 38,940 Total Proposed Rollovers $6,201,375
SECTION 4. In accord with Article 15 of the City Charter, this ordinance shall become effective upon adoption hereof.
PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF PACIFIC GROVE this 6th day of March, 2024, by the following vote:
AYES:
NOES:
ABSENT:
APPROVED:
NICK SMITH, Mayor
ATTEST:
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SANDRA KANDELL, City Clerk
APPROVED AS TO FORM:
BRIAN A. PIERIK, City Attorney
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Agenda No. 12 A
CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Robert Perrault, Consultant
MEETING DATE: March 05, 2025
SUBJECT: Selection of Core Areas of Focus and Request for Council Members to Draft Goal Statements for Each Selected Core Area
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
RECOMMENDATION
It is recommended that the Council select focus areas and begin the process of drafting goal statements for further consideration.
DISCUSSION
During the Council meeting of February 26, 2025, the Council approved the process to develop a new Goal Setting Workplan. The workplan will be used to guide the development of the FY 25-26/ FY 26-27 Budget. In addition to reviewing the process, the Council received a report on the status report of the current workplan. In addition, the Council received reports on the challenges and opportunities faced by the individual departments. At this meeting, the Council received the mid-year report on the revenues and expenditures to the midpoint of the FY 24- 25 fiscal year. The Council is now in a position to begin the drafting of the new workplan. The Council will be asked to select the focus areas for workplan development and to begin drafting the candidate goal statements to support the implementation of the workplan.
As noted in the previous report, the current Workplan is focused on 4 core areas. The four focus areas include: Recreation, Infrastructure, Environmental Stewardship, and Affordable Housing. In developing the new workplan, the Council could replicate existing focus areas or identify new ones. The focus areas selected will guide the development of the budget and the goals to be achieved in the next budget cycle.
Based on my discussion with Council members and staff, I would suggest offering the following potential focus areas for consideration:
Community Services (instead of recreation for a broader range of resident quality of life improvements)
Infrastructure
Environmental Stewardship
Economic Development
Community Development (instead of affordable housing only this can include housing and other PGCC 3-5-25
Community Development improvements)
Fiscal Sustainability
Council Member Assignment
Once the Council members have by consensus identified the focus areas, the Council is ready to proceed with the drafting of the general goal statements in support of the focus areas. During the next two weeks, I am requesting the Council consider drafting value statements for new/modified focus areas established in this meeting and drafting candidate goal statements for each of the focus areas selected. In drafting these goal statements please remember the goals should be specific, achievable, and measurable. No more than two goals statements per focus area is recommended. Please use the goals contained in the current workplan as examples. The candidate goal statements should be submitted to the City Manager and facilitator by March 12th. The statements will be reviewed by the City Manager and consultant to avoid repetition and for language consistency. A listing of the Focus Areas and the draft goal statements will then be provided to the Council for finalization at your March 19th meeting. Once this process is completed, the framework of the plan will be released to the public for comment.
OPTIONS
The Council could modify this process as presented.
FINANCIAL IMPACT:
There is no direct impact associated with continuing the development of the Workplan. However the completion of the process will guide the development of the Budget over the next two years.
FOCUSED PRIORITY AREA: Not Applicable.
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